Italy Targets Low-Cost Imports to Protect Fashion Industry

Italy is planning to implement a tax on postal packages from non-European countries to protect its fashion industry from low-cost imports, mainly from China. The measure, targeting platforms like Shein, will be formalized in the next budget to curb ultra-fast fashion's economic and environmental impacts.

Italy is poised to introduce a new tax on low-value postal packages from outside the European bloc, officials have revealed, as an effort to shield its fashion industry from a deluge of low-cost foreign imports, primarily originating from China.

The proposed measure, which seeks to create a level playing field by targeting online retail giants such as Shein and Temu, will apply a levy on consignments valued under 150 euros ($175). This initiative aligns with a similar proposal under discussion at the European Union level, according to sources within Italy's ruling parties.

The amendment to next year's budget is anticipated in the coming weeks, drawing praise from the Italian fashion federation. The federation applauded the move as a significant step in mitigating the economic and environmental strains caused by ultra-fast fashion and has recommended additional actions to safeguard the 'Made in Italy' brand, including the removal of EU duty exemptions for low-value non-EU shipments.

(With inputs from agencies.)