According to Julian Dunkerton, who spoke with the news, the fast fashion chain has an unfair edge because it ships low-value packages straight from abroad to its consumers without having to pay import tariffs.
Shein did not respond to requests for comment, but in the past, it claimed that tax breaks had nothing to do with its performance, but rather its “efficient supply chain”.
According to the Treasury, retailers’ and consumers’ interests must be balanced in tax policy.
Nonetheless, Mr. Dunkerton stated that closing this tax “loophole” would be beneficial for the UK.
“The regulations weren’t designed for a business that sent individual packages and had a billion-pound turnover in it.
In essence, we’re giving someone permission to enter and avoid paying taxes.
Import tariffs are not applied to shipments under £135 that are supplied directly to UK consumers, but they are applied to businesses who bring in larger consignments.
The exception had little effect prior to the emergence of a globalized internet economy, but shops in the US and EU are currently seeing growing undercutting.
