▲ E-commerce platforms Temu (left) and Shein apps
The French government has decided to suspend the small parcel tax it had introduced, which effectively targeted Chinese online retailers such as Shein and Temu, starting July 1, or tomorrow, local time.
In a press release on June 30, the French Ministry of Commerce stated, "As the European Union has decided to impose a flat tariff of 3 euros (approximately 5,300 won) on all parcels under 150 euros (approximately 260,000 won), France will suspend the domestic tax it preemptively introduced in March, effective July 1."
The French government had previously been imposing a tax of 2 euros (approximately 3,500 won) per item on all small parcels entering from outside France (non-EU countries) as an administrative processing fee.
This measure was intended to curb excessive consumption of low-cost fast fashion, protect the environment, and safeguard domestic retailers, primarily targeting Chinese companies.
The 3-euro tariff imposed by the EU also applies only to small parcels entering from outside the EU.
The EU plans to collect the tariff and distribute 25 percent of it to the countries that receive the parcels and handle the customs clearance procedures.
The French Ministry of Commerce emphasized, "This measure will be applied consistently across all 27 member states, resolving imbalances between countries and closing loopholes that have been exploited by some foreign companies."
To avoid the French government's 2-euro tax, Chinese companies had been using a workaround by sending parcels ordered in Paris to neighboring Belgian airports and then transporting them to France by land.
This led to a situation where piles of parcels accumulated at Liege Airport in Belgium, while the cargo area at Paris Charles de Gaulle Airport remained empty.
Minister of Commerce Serge Papin said, "Europe has followed our lead because we proved that it is possible to impose costs on companies that engage in unfair competition," adding, "This fight will continue in the future."
Meanwhile, the French parliament has also finalized the passage of a bill to regulate Chinese fast fashion companies.
The French Senate passed a bill the previous day to impose levies on items sold by Chinese companies such as Shein, Temu, and AliExpress.
With the Senate processing the bill following the National Assembly last week, the legislative process has been completed.
According to this bill, French authorities can impose a levy of up to 20 euros per item by 2030, with the cap set at 50 percent of the product's pre-tax price.
The specific levy amounts will be determined by enforcement decrees.
A portion of the levies collected in this manner will be invested in infrastructure for clothing collection and recycling.
The bill also requires these companies to post messages on their websites encouraging restrained consumption, such as reusing and repairing clothing.
A ban on advertising for these companies is also included in the bill.
This includes advertisements utilizing influencers.
However, the European Commission has raised the possibility that this provision may violate EU law, so its final implementation could be blocked.
Some environmental groups are criticizing the bill passed by parliament, arguing that it has weakened the original legislative intent by excluding fast fashion companies from countries other than China, such as Zara, Primark, Uniqlo, and H&M.
(Photo: Getty Images Korea)
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