The UK will end duty-free imports of low-value goods by March 2029, a move expected to reduce air freight volumes, reported London's Air Cargo News.

Goods valued under GBP135 (US$178) can currently enter the UK without duties, a loophole widely used by e-commerce platforms to undercut traditional retailers. Chancellor Rachel Reeves said the exemption will end in 2029, allowing time for consultation on implementation.

The delay was seen as unexpected, with many anticipating an earlier end. The government said the timeline will help prepare businesses for the change. Traditional retailers welcomed the move, expecting more warehousing in the UK and less reliance on air freight.

Chris Clowes of SCALA said ultra-low-cost imports from platforms such as Shein and Temu will become more expensive, creating a level playing field for compliant businesses. He added the reform should boost domestic warehousing and supply chain resilience, though the delay leaves retailers in an uneven marketplace.

The US ended its de minimis exemption earlier this year, while the EU will end its exemption for goods under ��50 in 2026. Following the US change, online retailers shifted strategies and e-commerce volumes between China and the US have begun to recover.

In recent years, several freighter operations have been launched to UK airports as e-commerce firms sought faster imports, a trend likely to be reshaped once the exemption ends.