Policy & Compliance
BIFA Members are encouraged to review the government consultation on proposed low value import changes and to submit their views, as stakeholder feedback will play an important role in shaping the fi nal policy outcome Developments on the low value import changes
costs from customers at the point of import. Further clarification is being sought on how these amounts will be calculated, charged and collected in practice to ensure the process is operationally workable and commercially viable. The requirement for fiscal representation for non-UK established traders generated the most extensive discussion. Under the proposal, a fiscal representative would assume liability for tax obligations where an overseas seller fails to meet its VAT and duty responsibilities. Members indicated that the duty liability perspective is one of the key areas of the proposed arrangements. It should be clearly defined that the proposed concept of a fiscal representative will be different to that of a customs representative. Feedback BIFA Members are encouraged to review the consultation in detail and submit their views, as stakeholder feedback will play an important role in shaping the final policy outcome. The consultation remains open until 6 March and the government encourages respondents to provide feedback using the online form: https://www.smartsurvey.co.uk/s /x-LVIConsultation/
F ollowing the government’s recent announcement the low value import (LVI) framework, engagement with industry stakeholders has continued in order to ensure that the proposed operational and compliance impacts are clearly understood. Series of webinars The relevant HMRC team ran a series of webinars and engagement sessions with the trade community. To support BIFA, the LVI policy team offered to speak to Members in an open session regarding proposed reforms to held in early February, providing an opportunity for attendees to share their views on the consultation proposals, highlight operational concerns, and seek clarification on areas where further details were required. Discussions during the session identified several key areas. The first key area concerned the method for submitting LVI
declarations. HMRC confirmed that the current intention is to develop a separate system operating outside the Customs Declaration Service (CDS). This approach is being considered because the anticipated increase in declaration volumes could place significant pressure on CDS capacity. A key priority is therefore the establishment of an effective communication channel with Community System Providers (CSP) to ensure efficient handling, arrival processing and release of LVI consignments at the ports. Another significant topic was the collection and handling of supply VAT, customs duty, and the additional handling fee which aims to cover the administrative costs of running the LVI system. Members expressed concern regarding the practical side of the charging mechanism, particularly the expectation that intermediaries may need to recover additional
“ Members indicated that the duty liability perspective is one of the key areas of the
proposed arrange - ments
26 | March 2026
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