Abstract:
France will impose a fee on ultra-fast fashion items from Tuesday that will end up costing nearly 20 euros per garment, according to AFP, with the government aiming to include Shein Asia’s major e-commerce platforms including. The tax follows legislation passed by the French parliament in June aimed at regulating so-called "ultra-fast fashion" companies. These companies are known for selling large quantities of low-quality clothing at extremely low prices.
This is one of the measures taken by the French government to curb Asian e-commerce giants including Shein, Temu and AliExpress, which have risen rapidly in France in recent years.
“The harmful impact of ultrafast fashion on our environment and economy is well known and well documented,” Ecological Transition Minister Mathieu Lefebvre said on Friday as he unveiled details of the measure.
Under the regulations, ultra-fast fashion will be judged based on two criteria: the number of garments placed on the market and the cost of repairing the garment relative to its purchase price.
The cost of a single item will be charged in proportion to each item's score on these two criteria.
By 2026, companies will have to pay fines, for example, underwear in the ultra-fast fashion category will be taxed 50 euro cents, the fine on T-shirts will increase to 2 euros, on jeans to 9 euros and on jackets to 12 euros.
The tax could be as high as €19.50 ($22.60) per item by 2030, but will still be capped at 50% of the item’s pre-tax price.
Lefebvre's office said it is currently developing a tool that can collect data independently (rather than relying solely on a company's own statements).
Shein held a high-profile initial public offering in Hong Kong on Monday, valuing it at $26.3 billion. Shein declined to comment when contacted by AFP.
Temu and AliExpress have not yet responded to this matter.
The measure has been criticized for which retailers it will affect.
In July, Lefebvre's office said the tax would not apply to retailers such as H&M or Zara, prompting some to argue that the measure appeared to be protecting European and French companies.
French officials have repeatedly said they believe Shein, Temu and AliExpress are driving forces behind the boom in ultra-fast fashion.
The European Commission has also raised questions about the legislation's compliance with EU law, but Lefebvre's office said those concerns had been "removed" and the measure was not expected to be blocked.
Meanwhile, China warned in July that it might retaliate against the French law, slamming the regulation as "discriminatory" and violating trade principles.
According to the French government, since the EU imposed a €3 tariff on Chinese small parcels on July 1, the number of small parcels imported from China to the EU has dropped by about 30% to 40%.
Comments