Italy has taken its first official step to curb the dominance of ultra-fast fashion platforms such as Shein and Temu, which have long benefited from tax loopholes to flood the market with low-cost goods. On Tuesday, the Italian Senate passed the “Legge di Bilancio 2026” (Budget Act 2026), introducing a mandatory levy of 2 euros on all parcels valued at under 150 euros arriving from non-European Union countries. This move marks a significant departure from previous regulations, where low-value goods entered the country duty-free, a system critics argue created an uneven playing field for domestic manufacturers.
The new measure responds to urgent requests from major fashion industry bodies, including Confindustria Moda and the Camera Nazionale della Moda Italiana. These organizations have consistently warned that the unregulated influx of low-quality, high-volume goods undermines Italy’s renowned craftsmanship and economic stability. According to figures from Camera della Moda, approximately one million parcels from outside the EU circulated in Italy last year alone. Furthermore, fashion imports from China jumped 11.8 percent in the first eight months of 2024, amounting to a staggering 4.5 billion euros.
Italy’s proactive stance anticipates a broader European Union decision to abolish the 150-euro duty-free exemption by the first quarter of 2026. This legislative trend mirrors recent actions in the United States, which rolled back its "de minimis" allowance in May to curb ultra-cheap Chinese imports. Meanwhile, France has been equally aggressive, with retail federations recently initiating legal action against Shein’s European subsidiary, citing unfair competition and breaches of safety standards. A spokesperson for the Italian fashion industry noted that the levy is not just a tax, but a necessary "formal attribution for handling and import charges" to ensure administrative oversight.
While the bill must still be approved by the Italian Parliament’s Lower House, Italian law dictates that the House cannot alter the bill, ensuring it must be passed by the end of the year to take effect. For the global ultra-fast fashion industry, the era of frictionless, tax-free entry into the European market appears to be coming to a close. As Italy and its neighbors tighten their borders, the focus is shifting toward protecting domestic markets and enforcing stricter environmental and social responsibility standards on global e-commerce giants.
