EU and France target ultra-fast fashion retailers with new taxes and duties

European regulators are implementing new measures to combat the rise of ultra-fast fashion retailers such as Shein, Temu, and Alibaba. In France, a new law that went into effect on September 1 mandates that these companies pay environmental and packaging taxes based on an ‘eco-score’. This score evaluates items based on criteria including material, transparency, and repair incentives. For example, a T-shirt may incur a tax of up to 2 euros, while a jacket could cost up to 12 euros. These funds are intended to support recycling, clothing repairs, and ecological brands.

At the European Union level, the Commission has moved to address unfair competition and safety concerns. A new regulation requires a three-euro customs duty on all incoming packages from outside the EU, regardless of value, to prevent companies from bypassing the previous 150-euro threshold by splitting orders into multiple small parcels. Additionally, the EU recently imposed a 200 million euro fine on Temu under the Digital Services Act (DSA) due to aggressive low-price strategies and the circumvention of safety rules. France also plans to implement a ban on advertising for ultra-fast fashion starting in January 2027.