To ask the Chancellor of the Exchequer if he will (a) reduce the minimum transaction value on low value consignment relief and (b) apply for complete derogation for the UK. (83069)

Import VAT is not chargeable on commercial consignments of goods with a value below £18 that are imported into the UK from outside the EU. The Government are aware that this relief is currently being exploited, and it now costs the Exchequer around £85 million per year. If the relief continues to be exploited by businesses using offshore locations, the Government will consider changes to prevent this type of behaviour.