European textile industry seeks to accelerate removal of… | kbnmart

Currently, parcels under €150 enter the EU tax-free. The European Textile and Clothing Federation, Euratex, is calling for this exemption, which is currently being used by Chinese ultra-fast fashion players such as Shein and Timo, to be immediately scrapped.

For Euratex, which represents 200,000 European textile and clothing companies, this exemption has been exploited by e-commerce companies, creating unfair competition for European manufacturers. Euratex is calling for this exemption to be quickly abolished, and for it to be implemented immediately rather than waiting until 2028, as Brussels currently proposes.

“Customs plays a crucial role in ensuring fair competition within the EU single market and in ensuring that products comply with our environmental and safety standards,” explained Dirk Vantighem, Managing Director of Euratex. “We recognise the need for a regulatory system fit for the 21st century, particularly in light of the growth of e-commerce and the increasing complexity of regulatory rules.”

In 2023, two billion parcels worth less than €150 entered Europe. As FashionNetwork.com reported, this issue was at the heart of a seminar organized by the European e-commerce federation (Ecommerce Europe) in Brussels on January 30. Sales platforms, European customs authorities (DG Taxud) and European parliamentarians discussed the proposal to abolish the €150 tax threshold.

“The customs threshold has become a strategic topic of discussion at European level because everyone has realized the explosion of new business models (Sheen, Timo, etc.) that are rapidly taking market share from European players and peers like Alibaba, AliExpress or Wish,” Stefano Mauro, Legal Director for E-commerce in Europe, told us. “There is widespread concern. The big question is how to counter this competition through regulation.”

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