Tax on small parcels remains inadequate for the European textile industry say federations

Since July 1, all small parcels entering the EU have been subject to a €3 tax. A step in the right direction, but still insufficient, according to the European textile and clothing federations, which convened for the second time in Villepinte on Tuesday during the Première Vision trade fair.

The meeting on September 16, 2025 marked a milestone in the coordination of European federations against ultra-fast fashion. Ultra-fast fashion has since been hit by the end of the tax exemption on small parcels. In a video address to textile industry professionals, the French Minister Delegate for Industry praised the impact of this tax, which follows on from the measure introduced by France at the start of the year. 

“The tax on small parcels, which France was the first to champion, now applies throughout the Union and, according to figures from French customs, we can say that, thanks to this tax, the number of parcels entering Europe has fallen by nearly 40%,” said the minister. “Forty percent is considerable for such an exemplary initiative. But you are right to remain vigilant, as there is still much to be done. I know you are monitoring the situation closely.”

That “closely” sounds like an understatement, as the federations’ meeting chiefly underscored the inadequacy of this tax. The organisers, Olivier Ducatillion and Pierre‑François Le Louet, respectively president of the French Union of Textile Industries (UIT) and the French Union of Fashion and Clothing Industries (UFIMH), point out that the tax is applied only once per category within a parcel.

“For 10 identical items sent in the same parcel, it is applied only once. And €3 for 10 items is not enough.”

The issue of handling fees



For the president of Euratex, Mario Jorge Machado, this reality highlights the importance of a new regulatory battle to be fought- this time over handling fees. These are due to come into force in the autumn, and the funds raised are intended to finance the creation of a European customs administration. This additional €2 charge will, again, not be based on the number of items but on the number of product categories: a parcel containing a T‑shirt and a pair of jeans will be charged twice.

“We now know that 90% of imports into the EU arrive as small parcels,” notes the president of Euratex, the European confederation of textile industries. “If trade has shifted in this way, we must now change how our customs operate and, to do that, they need resources. The handling fees and the amount currently under discussion- around €2 to €4 [per parcel]- will surely not be sufficient to give customs the right tools to carry out proper checks and enforce the regulations.”

Towards a €10 handling fee?



In a joint effort, Euratex, the UIT, and the UFIMH are calling instead for the fee to be set at around €10- a level seen as more commensurate with the costs generated within the EU by the flood of small parcels from Asia entering Europe.

Valère Moutarlier, Deputy Director General for European Industry and Decarbonisation at the European Commission (DG GROW), confirmed to the federations on Tuesday that the Commission is currently working on implementing handling fees on small parcels. Questioned by FashionNetwork.com, however, the specialist said he did not believe the issue of the amount and method of taxing small parcels would be reopened.

“We should see some increase in resources, and the fees should help in this regard,” he said of the additional €2 charge. Among EU projects, he cited improvements to automated monitoring tools (web crawlers) tracking offers from unscrupulous operators, as well as enhancements to the testing capacity available across Europe to inspect products entering Member States. These advances would be deployed across the European Union.

But he mainly pointed to the forthcoming European Product Act, legislation intended to regulate product offerings. “It is due later this year, and we are essentially working to add value to what Member States do individually by pooling resources, consolidating digital solutions and breaking down silos between the various authorities- across consumer protection, the digital sphere and market surveillance- so that we can achieve better results with equivalent resources or with limited additional resources,” says Valère Moutarlier.

A level playing field



One point recurred in every participant’s remarks this morning: the aim is not to secure exemptions or exceptional aid for the textile and clothing sector, but to establish the basis for balanced competition among all market operators, whether European or from outside Europe. “Same market, same products: same rules,” sums up Mario Jorge Machado.

To restore fair competition in the face of ultra‑fast fashion, the European federations now prioritise holding online platforms legally accountable through the “deemed importer” approach, while closing logistical loopholes to prevent tougher B2C rules from simply pushing platforms to use wholesale or transit warehouses in Europe. They also call for the standardisation of customs data requirements between B2C and B2B, so that customs authorities can better target their checks.

The federations further call for appropriate treatment for economic partners closely integrated with Europe, and recommend stabilising the current tax framework so that efforts can first focus on rigorous enforcement of compliance rules. They also stress the urgent need to ease the regulatory and administrative burden on European manufacturers and distributors who comply with standards, so they are not stifled by bureaucracy while non‑compliant imported products continue to flood the single market without equivalent controls.

Source: https://ww.fashionnetwork.com/