Monsoon and Superdry call for end of tax loopholes that benefit Shein and Temu

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UK retailers have urged the UK government to look at recent tax policy changes implemented in the United States, which could stop Chinese marketplaces benefiting from loopholes. 

Previously, policy in the US allowed small packages valued at $800 (around £640) or less to be sent to the country without incurring taxes or fees. 

It has been reported that Chinese retailers such as Shein and Tum have utilised this tax exemption to ship low-value packages to the US. They may have also benefitted from similar regulations in the UK and across Europe. Some in the retail industry believe retailers harnessing this exemption have therefore benefited from a boost in small parcel volumes.

It has also raised concerns that domestic retailers are being undercut, and that governments are losing potential tax revenue.

From Tuesday 04 February 2025, Donald Trump implemented changes to stop low-value products being shipped tax-free, under a “de minimis” exemption. This in turn has led some UK retailers calling for similar policy updates.

Nick Stowe, chief executive of Monsoon Accessorize, told the BBC’s Today programme he was in support of the changes in the US.

“It has long been a complaint of UK retailers, European retailers, as well as the US retailers, that Shein are exploiting this loophole, not paying customs duty and they have built a business at an industrial scale,” he said.

Additionally, Superdry’s CEO urged the UK government to take action on low-value products being imported to the country free of tax.

Julian Dunkerton, said: “The rules weren’t made for a company sending individual parcels [and] having a billion-pound turnover in the UK without paying any tax.”


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