European Textile Industry Pushes to End Customs Exemption for Shein and Temu

In the year 2023 alone, Europe witnessed an inflow of two billion packages under 150 euros that were untaxed

Euratex, representing the European textile and apparel sector, is strengthening its demand for the expeditious repeal of a customs exemption that profits Chinese e-commerce companies like Shein and Temu. Euratex claims that this exemption poses unfair competition for native manufacturers by allowing products valued at less than 150 euros to enter the European Union without paying taxes.

The managing director of Euratex, Dirk Vantyghem, underscored the importance of customs in regulating fair market conditions while ensuring deference to EU standards. He called for an immediate regulatory amendment to encompass the evolving e-commerce industry and also to endorse environmental and safety standards. In the year 2023 alone, Europe witnessed an inflow of two billion packages under 150 euros that were untaxed, which substantially impacted the native industries. This issue led to a colloquium in Brussels, involving stakeholders from e-commerce platforms, authorities from European customs, and policymakers to deliberate upon the suggested removal of the tax threshold. The legal director of E-commerce Europe, Stefano Mauro, expressed concerns about the competitive upper hand enjoyed by non-EU companies like Shein and Temu. These discussions also highlight the larger concerns within the fashion industry in terms of the market dominance of these industry giants.

Representing 200,000 European companies, Euratex actively advocates speedy regulatory amendments with the aim of creating a fair market for European manufacturers in the face of rapidly shifting global trends.