Ryman owner Theo Paphitis is the latest British retailer to call on the government for a clampdown on a tax loophole used by fast fashion giants such as Temu and Shein.
The retail tycoon, who also owns Robert Dyas and Boux Avenue, said there was a “big slug” of companies avoiding customs bills in the UK by shipping individual orders directly from countries like China.
“Worse than that, the companies benefiting from it are not British companies,” Paphitis told The Times. “The government is not plugging loopholes. It’s becoming absolutely clear that the emperor has no clothes on.”
Retailers such as Shein and Temu ship directly to western countries from China in smaller parcel sizes, instead of shipping stock in bulk to fulfilment centres in the UK and then distributing parcels.
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Under the UK’s “de minimis” rule, shipments worth less than £135 are exempt from having to pay import duties.
A Temu spokesman told The Times that the company’s growth was not dependent on the de minimis policy: “The primary drivers behind our rapid expansion and market acceptance are the supply-chain efficiencies and operational proficiencies we’ve cultivated over the years.”
Shein also said its success came from “keeping prices affordable through our on-demand business model and flexible supply chain”, which it said, “takes out wastage of material and lowers our unsold inventory”.
Paphitis claimed the UK retail industry was “taken for granted” and that it needed more support from the government, including a reform of the current business rates system.
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