E- commerce and the fashion industry : tighter rules for low-cost imports and ultra-fast fashion

The End of France’s Low-Value Parcel Tax: A Shift Towards a European Response

In response to the surge in imports of low-value goods shipped directly to European consumers, primarily from China through platforms such as Shein, Temu and AliExpress, France introduced, with effect from 1 March 2026, a €2 levy per product category on low-value parcels originating from non-EU countries. The measure pursued a dual objective: restoring fairer competition with European retailers and offsetting customs-related costs and environmental impacts associated with the massive influx of small parcels.

In practice, however, the French measure proved largely ineffective. Major platforms swiftly adapted their logistics networks by routing goods through other EU Member States before delivering them to France, thereby taking advantage of the EU single market. Revenue generated by the measure remained well below budgetary expectations, prompting the French government to adopt a coordinated solution at EU level.

As of 1 July 2026, the French tax has been suspended and replaced by a flat-rate European customs duty of €3 applicable to goods valued at less than €150. Calculated per product category contained in a parcel, this duty applies to shipments originating from outside the European Union and is primarily aimed at the high-volume flows generated by cross-border e-commerce.
This measure represents a transitional step ahead of the full implementation of the EU customs reform expected by 2028, which will permanently abolish the long-standing duty exemption currently applicable to parcels valued below €150. E-commerce operators should therefore anticipate higher costs for low-value imports, increased customs scrutiny and growing regulatory pressure on business models based on direct shipping from non-EU countries.

Financial Penalties for "Disposable" Clothing Enter Into Force

At the same time, France has introduced an unprecedented mechanism designed to reduce the environmental impact of ultra-fast fashion. The law of 8 July 2026 aimed at reducing the environmental footprint of the textile industry establishes, among other measures, financial penalties targeting businesses classified as operating within the ultra-fast fashion sector. The legislation primarily focuses on business models characterized by an extremely rapid turnover of collections, the large-scale release of new products and the low repairability of the proposed clothing items.

Accordingly, since 1 September 2026, a financial penalty has applied to clothing marketed by companies falling within the scope of the regime. The amount of the penalty is determined on the basis of several criteria, including the volume of products placed on the market, the frequency with which collections are renewed and the economic incentives provided for product repair.

The mechanism is designed to be gradually increased until 2030, at which point the penalty may reach €19.50 per item, subject to a cap of 50% of the product’s pre-tax sale price.

These two reforms illustrate a significant shift in the French and European approach to the trade of very low-cost goods. While the taxation of small parcels is primarily intended to restore a level playing field between European operators and non-European platforms, the textile penalty reflects an environmental policy grounded in the "polluter pays" principle. Although ultra-fast fashion platforms appear to be the primary targets, all participants in the value chain must now take into account these new regulatory constraints into their business models and compliance strategies.