UK RETAILERS WARN OF FAST-FASHION IMPORT SURGE BEFORE 2029 LOOPHOLE CLOSURE

Leading British retailers have warned that the UK risks becoming a "dumping ground" for online fast-fashion companies if the government does not accelerate its timeline for closing a customs duty exemption. Primark, Accessorize and other high street firms told the publication that foreign sellers including Shein and Temu currently benefit from a tax loophole on imports worth less than £135. The government has pledged to close this exemption, known as the de minimis regime, but has stated it will not take action until 2029. The European Union will remove its equivalent threshold from 1 July, according to retailers' statements.

Retailers have cautioned that the EU's move will redirect fast-fashion importers towards the British market. Shein and Temu, e-commerce businesses founded in China, have intensified competition against UK retailers by shipping low-cost goods directly to consumers. Nick Stowe, chief executive of Monsoon Accessorize, stated that when the United States closed its de minimis loophole in August, both companies refocused their efforts on the UK and EU markets. The British Retail Consortium, a trade body representing retailers, described the UK as at risk of becoming a "dumping ground for low-value imports". Stowe told the publication that businesses and government agree on the need for action, but said the delay until 2029 is problematic given the imminent European changes.

Stowe stated that "the problem is going to get worse" without immediate intervention. He called for the government to act sooner, saying all parties are "aligned on what needs to happen". Retailers including Marks & Spencer have joined calls for an accelerated crackdown on the Chinese online sellers.