Ryman owner, Theo Paphitis joins other retailers calling on the Government to close the tax loophole that allows fast fashion giants such as Temu and Shein to avoid paying import duties by shipping directly to customers from China.
Paphitis told The Times in an article on Monday 25 March that there was a “big slug” of companies avoiding customs bills in the UK by shipping individual orders directly from countries like China. The (usually) low value of each individual order means that the company avoids having to pay import duties as shipments worth less than £135 avoid tax, known as the de minimis rule.
He joins Simon Wolfson, ceo of Next who also mentioned the tax loophole used by Chinese fast fashion companies to avoid import duties in an article in The Times earlier this month, saying: “I wouldn’t underestimate the difficulty and the administrative complexity of trying to tax lots of small deliveries. But I think it’s important that the government look at it.”
A Temu spokesman told The Times that the company’s growth was not dependent on the de minimis policy, saying: “The primary drivers behind our rapid expansion and market acceptance are the supply-chain efficiencies and operational proficiencies we’ve cultivated over the years.”
Temu has just announced total revenues of ¥247bn (£27bn) in the full year to December 31, nearly doubling from ¥130bn (£14.2bn) in 2022.
Companies like Temu are online marketplaces, selling a huge array of goods – including stationery – at extremely cheap prices. For instance, customers can buy a 16-piece highlighter set for £1.88. There is no minimum order, no delivery fees and orders normally arrive within two weeks.
