European textile industry seeks to accelerate the removal of a customs exemption benefiting Shein and Temu

By

Matthieu Guinebault

Translated by
Roberta HERRERA

Published
July 20, 2024

Currently, packages valued under 150 euros enter the European Union without taxation. The European textile and clothing confederation, Euratex, is advocating for the immediate removal of this exemption, which currently benefits Chinese ultra-fast-fashion players such as Shein and Temu.

For Euratex, which represents 200,000 European textile and apparel companies, this exemption has been exploited by e-commerce businesses, leading to unfair competition for European manufacturers. Euratex is calling for an accelerated repeal of this exemption, advocating for its immediate implementation rather than waiting until 2028, as is currently proposed by Brussels.

"Customs play a crucial role in ensuring fair competition within the EU’s single market and in ensuring that products comply with our environmental and safety standards," explained Dirk Vantyghem, managing director of Euratex. "We recognize the need for a reformed system that is suited to the 21st century, especially given the growth of e-commerce and the increasing complexity of regulations."

In 2023, two billion packages under 150 euros entered Europe. As reported by FashionNetwork.com, this issue was at the heart of a symposium organized by the European E-commerce Confederation (Ecommerce Europe) in Brussels on January 30. Sales platforms, European customs authorities (DG Taxud), and European parliamentarians discussed the proposed elimination of the 150-euro tax threshold.

"The customs threshold has become a strategic debate at the European level because everyone has recognized the explosion of new business models (Shein, Temu, etc.) that are rapidly taking market share from European players and their counterparts like Alibaba, Aliexpress, or Wish," Stefano Mauro, legal director of e-commerce Europe, told us. "There is widespread concern. The big question is how to counter this competition through regulation."

Representing an industry that employs 1.3 million people in Europe and generates 64 billion euros in exports, Euratex has recently appointed a new president, Mario Jorge Machado. This representative of the highly sought-after Portuguese textile sector shared his priorities with FashionNetwork.com just a few days ago.