France considers €2 fast-fashion import tax affecting Shein and Temu as EU drags its ft

France considers €2 fast-fashion import tax affecting Shein and Temu as EU drags its feet


The French parliament will probably be debating a €2 levy on low-value vogue imports this week, aiming to jump-start an analogous measure that may solely come into pressure EU-wide in 2028.

The transfer is an try to focus on Chinese language funds e-commerce retailers like Shein and Temu, who’ve swamped the bloc with tremendous low cost merchandise that undercut native manufacturing, whereas additionally inflicting issues about waste manufacturing resulting from their questionable sturdiness and brief life cycles.

The European Fee estimated {that a} torrent of deliveries, most of them from China, entered the bloc in 2024.

“Round 4.6 billion low-value consignments, ie items with a worth not exceeding €150, entered the EU market equalling to 12 million parcels per day … elevating quite a few issues,” the Fee report said.

The EU govt has additionally mentioned these merchandise undercut European manufacturing requirements, usually include counterfeit items and have a “damaging environmental and local weather footprint”.

The French parliament is contemplating going one step additional, including a further €5 environmental footprint levy, which might rise to €10 per package deal by 2030.

The preliminary French €2 levy might face its first vote subsequent Monday.

Under €150, customs duties are typically not charged for items imported into the EU however VAT nonetheless applies.

The French authorities forecasts that the levy on small parcels might elevate €500 million by the top of subsequent 12 months.

The regulation instituting the €2 levy has handed the preliminary Senate vote, and is now dealing with ultimate parliamentary approval.

In a speech on 29 April earlier than the rollout of the invoice, French Finances Minister Amélie de Montchalin insisted that this proposal is “in anticipation of the reform of the (EU) Customs Union in 2028”.

It might “advocate for the fast introduction of an administrative payment mechanism on each small package deal getting into Europe,” de Montchalin defined on the time.

“This isn’t a tax on customers. It’s a solution to make those that presently profit from a system with out assuming their tasks pay their justifiable share,” she concluded.