EU safeguards tighten on low-cost Chinese textiles online

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Textile goods produced in China and priced under 150 euros have been steadily gaining a foothold across European markets. The price advantage has translated into a growing share of imports, reshaping competitive dynamics for local producers. In Alicante, the annual value of such entries is estimated at around 75 million euros, a figure that underscores the pressure faced by regional manufacturers when complete customs duty exemptions apply to these cheap items. Consequently, Brussels is pursuing legislative reforms intended to curb these imports and ensure border tax collection is effective.

The European textile sector has raised alarms for some time, and the issue is now a subject of intense debate within the EU. Items priced under 150 euros from China, sold on online platforms like Shein and Temu, are entering European markets while avoiding taxes by bypassing customs duties.

Based on 2023 data, Alicante shows around 75 million euros annually in exemptions, with clothing accounting for the largest portion at about 65.4 million euros and knitted fabrics at roughly 9.5 million euros.

Beyond the price pressure, these market conditions trigger concerns about product safety, environmental impact, intellectual property rights, and participation in producer responsibility schemes managed by manufacturers.

Euratex

The European textile and clothing federation Euratex recently noted that while large direct online imports are significant, the ineffective use of EU enforcement resources harms the environment, consumers, the competitiveness of European companies, the functioning of the internal market, and the credibility and impact of EU legislation. [Cita: Euratex]

They added that the rise of direct online imports and the growth of online sales, coupled with limited enforcement resources, make it difficult for market surveillance authorities to carry out adequate checks. [Cita: Euratex]

The EU Commissioner for Economy, Paolo Gentiloni, echoed these concerns, saying he is aware of growing worries about the safety of products sold online, noting risks ranging from environmental compliance to counterfeit goods. [Cita: Paolo Gentiloni]

Among the measures Brussels is considering is the elimination of the current threshold that exempts goods valued under 150 euros from duties, along with making e commerce platforms responsible for ensuring that customs duties and VAT are paid at the moment of purchase and for providing information to the customs authorities. [Cita: EU authorities]

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Patience will be required, as the EU aims to begin implementing these changes in 2028 with compliance becoming mandatory ten years later. European authorities emphasize that the goal is to ensure consumers and firms benefit from fair competition under effective customs, tax, and safety controls, along with sustainability standards. [Cita: EU plan]

Satisfaction in the textile employers association

The textile industry welcomed the community authorities’ announcement that legislation will end the blanket customs duty exemption on goods worth less than 150 euros and will strengthen controls on online commerce. Pepe Serna, president of the Valencian Community Textile Entrepreneurs Association, stresses that competition from online platforms directly affects the sector. He notes that cheap items such as T shirts and pants require tighter supervision and equal market conditions for these products to enter Europe fairly. [Cita: Pepe Serna]

The association also calls for mechanisms that give greater priority to the European industry in terms of supply to reduce reliance on third countries, a challenge highlighted during the health crisis. It also urges strong defense of European sectors against possible duties that could be imposed by other markets on EU producers. [Cita: Valencian Association]

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