What's Happening?
Italy has introduced a new levy targeting ultra-fast fashion imports, specifically from platforms like Shein and Temu. The Italian Senate passed the 'Legge di Bilancio 2026,' which imposes a 2-euro levy on parcels
valued under 150 euros from non-EU countries. This measure aims to address the influx of low-cost, low-quality goods into Italy, a concern raised by fashion industry associations. The bill, which still requires approval from the Italian Parliament's Lower House, is part of a broader European effort to regulate ultra-fast fashion. The EU plans to abolish the exemption on low-value packages by early 2026, aligning with Italy's initiative. This move follows similar actions by the U.S. to limit ultra-cheap imports.
Why It's Important?
The introduction of this levy is significant as it represents a concerted effort by Italy and the EU to regulate the ultra-fast fashion industry, which has been criticized for its environmental impact and unfair competition practices. By imposing additional costs on low-value imports, Italy aims to protect its domestic fashion industry from being undercut by cheaper, lower-quality goods. This could lead to a shift in consumer behavior, encouraging more sustainable purchasing decisions. The measure also aligns with broader EU regulatory trends, potentially setting a precedent for other countries to follow.
What's Next?
The Italian Parliament's Lower House is expected to approve the bill by the end of the year, as it cannot alter the Senate's decision. Once enacted, the levy will likely lead to increased scrutiny of import practices and could prompt other EU countries to adopt similar measures. Fashion platforms like Shein and Temu may need to adjust their business models to comply with the new regulations, potentially affecting their market strategies in Europe. The broader EU initiative to close the low-value package exemption by 2026 will further impact the ultra-fast fashion industry.
