Mon Sep 23 23:00:38 UTC 2024: ## Superdry Boss Calls for Crackdown on Shein’s Tax Practices

**London, UK** – Superdry CEO Julian Dunkerton has accused fast fashion giant Shein of tax avoidance and called for government action. In an interview with the BBC, Dunkerton argued that Shein’s low-value parcel shipments direct to customers avoid import duties, giving them an unfair advantage over UK retailers.

“The rules weren’t made for a company sending individual parcels [and] having a billion-pound turnover in the UK without paying any tax,” said Dunkerton, who founded Superdry. “We’re allowing somebody to come in and be a tax avoider, essentially.”

The current import duty exemption applies to shipments worth less than £135, but Dunkerton argues the loophole needs to be closed. He also criticized Shein’s environmental impact, calling it a “complete environmental disaster.”

Shein has previously stated that its success is due to efficient supply chains, not tax exemptions, and that it fully complies with all UK tax liabilities. However, they declined to comment on Dunkerton’s accusations.

Dunkerton’s concerns echo those of other retail bosses, including Sainsbury’s CEO Simon Roberts and Next CEO Lord Wolfson, who have also called for a fairer playing field.

The UK Treasury has acknowledged the need for a balanced approach, ensuring both consumer convenience and fair competition. However, the government has yet to announce any specific changes to the import duty system.

Shein’s success has prompted increased scrutiny of its practices, especially as the company prepares for a potential stock market listing. The firm has faced criticism in the US over its ties to China and allegations of forced labor, which it denies.

Shein’s “test and repeat” approach, producing small batches of items and reordering based on customer demand, has also come under fire for encouraging fast fashion consumption.

The US and EU are considering stricter tax policies to capture businesses like Shein and Temu, another Chinese retailer, within their tax nets.

While Shein maintains that its success is due to affordability, the UK government is now facing pressure to address concerns over tax avoidance and ensure a level playing field for all retailers.

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