BIRA has warned of the increasing volume of Chinese products flooding the UK market via online platforms following the implementation of higher tariffs by Donald Trump.
Andrew Goodacre, ceo of BIRA Group, which includes BIRA Direct, Retra (the trade association for independent electrical retailers) and the Association of Cycle Traders (ACT), said: “We were concerned about the volume of items from Chinese companies coming into the country before the tariffs chaos.
“The thought of Chinese companies dumping even more goods through these channels, a real possibility, is a worry for large and small retailers alike.”
BIRA said it was particularly concerned about the impact on independent retailers across the UK, who are already facing significant challenges in competing with online marketplaces that benefit from existing tax advantages.
“For many months we have been asking the government to review the current duty de-minimis – currently set at £135, which allows products below this threshold to enter the country duty-free,” Andrew explained. “Billions of products every year are being sold through large marketplaces, entering the country duty-free and also avoiding VAT obligations.”
Beyond the economic impact, BIRA emphasised that this is also a critical health and safety issue.
“Too many products sold online, especially electrical products, do not meet our own safety standards,” Andrew warned. “This puts consumers at risk and undermines the efforts of legitimate retailers who invest in ensuring their products meet all necessary safety requirements.”
BIRA is calling for immediate government action on three fronts:
- Remove the de-minimis threshold entirely to ensure all imported goods are subject to appropriate duty
- Enforce existing VAT regulations to prevent fraud by online sellers
- Implement stricter enforcement of safety standards for all imported products
“Whilst customers may see lower prices in the short term, this will create an unfair marketplace, leaving bricks and mortar stores at an even greater disadvantage,” Andrew added. “It also means that the government, whilst claiming to need income, will miss out on tax revenues in two ways, whilst presiding over the further demise of the high street.”
BIRA continues to champion the cause of independent retailers across Britain and is committed to working with the government to ensure a level playing field for all businesses.
