At the moment, parcels with a value of less than 150 euros are exempt from VAT when they enter the European Union. Euratex, the European textile and apparel confederation, is lobbying for the urgent elimination of this exception, which is presently advantageous to Chinese participants in the ultra-fast fashion industry such as Shein and Temu.
Electronic commerce corporations have taken advantage of this exemption, which has resulted in unfair competition for European manufacturers, according to Euratex, which is a trade association that represents 200,000 textile and garment companies in Europe. Euratex is campaigning for the immediate application of this exception, rather than waiting until 2028 as Brussels is now proposing. Euratex is pressing for an early removal of this exemption.
Customs play a crucial role in ensuring fair competition within the single market of the European Union and in ensuring that products comply with our environmental and safety standards, noted Dirk Vantyghem, managing director of Euratex. Customs will ensure that products are in compliance with our standards. They 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.
By the year 2023, Europe received two billion parcels that were less than 150 euros. This problem was at the center of a symposium that was held in Brussels on January 30 and was organized by the European E-commerce Confederation (Ecommerce Europe). FashionNetwork.com stated that the seminar was held in Brussels. During the discussion, sales platforms, European customs officials (DG Taxud), and European legislators examined the possibility of removing the tax threshold of 150 euros
The development of innovative business models (Shein, Temu, etc.) that are quickly capturing market share has made the customs threshold a topic of strategic discussion at the European level share from European players and their counterparts like Alibaba, Aliexpress, or Wish, Stefano Mauro, the legal director for e-commerce Europe, explained to us. There is considerable uneasiness about this. One of the most important questions is how to regulate behavior in order to combat this rivalry
Euratex has just named Mario Jorge Machado as its new president. This individual will be representing a sector that is responsible for the employment of 1.3 million people in Europe and the generation of 64 billion euros in exports. In a conversation with FashionNetwork.com only a few days ago, this representative of the highly sought-after Portuguese textile industry discussed his ambitions
