The scale of cheap Chinese e-commerce imports flown into Britain without paying any tariffs has become clearer following a Sky News investigation into this new multi-billion pound phenomenon.
We have uncovered the first official estimate of the value of so-called “de minimis” imports into Britain, ahead of an official inquiry into whether this legal clause – which excludes packages worth less than £135 from paying customs duties – should be allowed to continue.
Companies like Shein and Temu have become big players in British retail, not to mention elsewhere around the world, by manufacturing cheap products in China and then posting them directly to consumers, benefiting from the de minimis rules.
Clothing manufacturers in the UK claim that de minimis makes it nearly impossible to compete with these Chinese competitors, raising questions about the viability of domestic textile and apparel production.
However, economists argue that the main beneficiaries of the policy to exclude cheap imports from customs are lower-income households, since it allows them to spend less on their shopping. Removing it, they say, would disproportionately affect poorer families.
The government has committed to an inquiry into the rules, which are also being changed in the EU and the US, but up until now there has been no official estimate of its scale.
According to HM Revenue and Customs data released to Sky News following a Freedom of Information request, the total declared trade value of de minimis imports into the UK in the last fiscal year (2024-25) was £5.9bn.
That was a 53% increase on the previous year (£3.9bn), underlining the scale of growth of e-commerce imports into the UK.
While it is hard to gauge how much revenue this means the Treasury has forgone, an illustrative 20% tariff on flows of that order could raise more than £1bn.
While that sum alone would not fill the fiscal black hole faced by Chancellor Rachel Reeves in the coming budget, it would nonetheless be nearly enough to pay for the government’s recent U-turn on winter fuel allowances.
Sky has also obtained the first television access deep into the supply chain, helping bring those goods into the UK, as it boarded a flight that had just travelled from Chongqing to Bournemouth Airport.
We filmed inside the belly of a plane belonging to European Cargo, one of a number of air cargo firms booming as a result of these trade flows.
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The untold story about de minimis is that it hasn’t just had an impact on shopping habits in the UK, or for that matter, the textiles manufacturing sector – it has also changed patterns of distribution.
Struggling regional airports that never saw their passenger numbers recover after the pandemic are now re-establishing themselves as hubs for cargo.
European Cargo is now the single biggest airline at Bournemouth Airport, despite not carrying a single passenger.
Other regional airports like East Midlands Airport and Prestwick in Scotland are seeing rapid growth in flows of trade.
All of which raises the stakes for the government’s inquiry into the de minimis system.
At present, there is no timeline for its decision, but removing the clause would have far-reaching effects across the economy.
