{"id":4918,"date":"2024-08-30T15:54:13","date_gmt":"2024-08-30T13:54:13","guid":{"rendered":"https:\/\/magazine.lineapelle-fair.it\/?p=4918"},"modified":"2024-09-02T15:38:57","modified_gmt":"2024-09-02T13:38:57","slug":"europe-and-beyond-ways-and-means-to-obstruct-shein-co","status":"publish","type":"post","link":"https:\/\/magazine.lineapelle-fair.it\/en\/green-corner-en\/europe-and-beyond-ways-and-means-to-obstruct-shein-co\/","title":{"rendered":"Europe and beyond ways and means to obstruct Shein & Co."},"content":{"rendered":"

It may be a coincidence, but since the rumours about a possible listing of Shein have been circulating, Europe has started to think about how to stop the expansion of the Chinese giant. As well as other online bigwigs such as Temu and AliExpress. Between proposed duties, rates and shipping costs – in Europe and beyond – we take stock of the situation<\/strong><\/em><\/p>\n

by Massimiliano Viti<\/em><\/p>\n

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Pushed by Germany<\/strong>, the EU would like to reduce <\/strong>the value of a single customs-exempt parcel, which is currently EUR 150<\/strong>. According to Brussels, 2.3 billion <\/strong>items were imported below this threshold in 2023<\/strong>. A huge number, between 4 and 5 per European citizen. China <\/strong>benefits from low postal costs<\/strong>, so e-commerce giants ship their cheap products by air directly to the end customer. There is a suspicion that, in order not to exceed EUR 150, Chinese e-commerce portals make ‘special’ shipments, for instance, by arranging multiple shipments for the same order.<\/p>\n

Europe and beyond<\/strong><\/h4>\n

Conversely, the US-based Amazon <\/strong>usually uses sellers operating from Europe. This proposal will be submitted to the new EU Commission, which will take office in a few months. Incidentally, the US and Indonesia <\/strong>are also considering similar laws. In mid-August, Turkey <\/strong>reduced the minimum value at which customs duties and tax rates apply to imported products from EUR 150 to EUR 30. Meanwhile, Brazilian shoemakers <\/strong>complain that large international platforms send packages up to $50 in value with total exemption from import taxes.<\/p>\n

Not insignificant implications<\/strong><\/h4>\n

Europe’s idea, which will surely please fashion groups like Inditex-Zara and H&M, has some not-insignificant implications<\/strong>. The first is that the work of customs <\/strong>would multiply, with officials already overburdened with checking the quality of incoming goods. The second is that raising customs barriers would mean raising inflation <\/strong>at a time when the ECB <\/strong>(European Central Bank), but also the US FED <\/strong>(Federal Reserve System), are rather sensitive to the subject.<\/p>\n

Another direction<\/strong><\/h4>\n

The European stakes also go in another direction. Since 26 April, the European Commission has officially defined Shein as a ‘very large online platform<\/strong>‘ within the meaning of the Digital Services Act. As such, it is subject to certain obligations. Shein will have to comply with the stricter rules of <\/strong>the Digital Services Act within four months of its notification (end of August 2024). For example, there is an obligation to take specific measures to empower and protect online users, including minors. Or duly assess and mitigate any systemic risks arising from their services. This was complemented by warnings from some European consumer protection organisations.<\/p>\n

Closer surveillance<\/strong><\/h4>\n

The European Commission<\/a>, therefore, intends to verify that the measures required by the Digital Services Act (DSA) have been implemented. In particular, Brussels asks the e-commerce giants for closer supervision of <\/strong>illegal products. But also enhanced consumer protection measures<\/strong>, more transparency <\/strong>and accountability<\/strong>. Brussels will then have to decide whether to open formal proceedings and impose periodic sanctions.<\/p>\n

Qualifying the supply chain<\/strong><\/p>\n

Chinese executives have been unhappy with the barrage of criticism Shein has faced since news broke of its intention to list on the London Stock Exchange<\/strong>. According to Fashion Network<\/a>, this is behind Shein’s decision to use more suppliers closer to some of its main target markets, such as Europe and the UK. In order to qualify its supply <\/strong>chain, always the subject of fierce criticism despite its commitments over the years, Shein is reportedly planning to include Turkish companies <\/strong>in its supply chain for Europe. The latest move is the launch of a EUR 200 million <\/strong>‘circularity fund<\/strong>‘ over five years to improve the supply chain. This is in addition to another 50 million <\/strong>earmarked for ‘potential investments in R&S or pilot production facilities in Europe or the UK’.<\/p>\n

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