Angela Symons with AFP
Imports of small parcels from China have already fallen by up to 40 per cent since a separate €3 EU levy came into force in July.
France is cracking down on ultra-fast fashion with a new fee that eventually reach almost €20 per garment.
The levy, which comes into force on 1 September, targets major e-commerce platforms including Shein.
It follows legislation passed by the French parliament in June to regulate companies known for selling large volumes of lower quality clothing at rock-bottom prices.
It is part of a push to rein in Asian e-commerce giants including Shein, Temu and AliExpress, which have exploded in popularity in France in recent years.
“The harmful effects of ultra-fast fashion on our environment and our economy are well known and documented,” said Mathieu Lefevre, the minister for ecological transition on Friday (28 August) as details of the measure were published.
How will France’s ultra-fast fashion levy be determined?
Under the legislation, ultra-fast fashion will be determined according to two criteria: the volume of clothing placed on the market and the cost of repairing garments relative to their purchase price.
The per-item fee will vary on a set scale according to how each product scores on both these standards.
In 2026, companies will pay fines such as a 50-cent levy on underwear falling into the ultra-fast fashion category, rising to €2 for T-shirts, €9 for jeans and €12 for a jacket.
The levy could reach up to €19.50 per item by 2030, though the cap remains at 50 per cent of the product’s pre-tax price.
A tool to collect data independently, rather than relying solely on companies’ own declarations, is under development, Lefevre’s office said.
Shein – which on Monday was valued at $26.3 billion (€22.7b) in its long-awaited Hong Kong initial public offering – declined to comment when contacted by news agency AFP.
Temu and AliExpress did not immediately respond to requests for comment.
Will European retailers will be exempt from the levy?
The measure has faced criticism over which retailers it will affect.
In July, Lefevre’s office said the levy would not apply to retailers such as H&M or Zara, prompting some to say that the measure appeared to spare European and French companies.
French officials have made repeated statements that they view Shein, Temu and AliExpress as driving the surge in ultra-fast fashion.
The European Commission had also raised questions over whether the legislation complied with EU law, but Lefevre’s office said those concerns had been “dispelled” and the measure was not expected to be blocked.
China meanwhile warned in July of potential retaliation over the French law, slamming the regulation as “discriminatory” and in violation of trade principles.
Imports of small parcels from China into the EU have already fallen by around 30 to 40 per cent since a separate €3 EU levy on such shipments came into force on 1 July, according to the French government.
