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the owner of clothing chain superdry said its competitor shein was allowed to evade taxes and urged the british government to take action, the bbc reported.

julian dunkerton told the bbc the fast-fashion giant enjoyed an unfair advantage because low-value parcels it sent direct to customers from overseas were not subject to import duties.

shein declined to comment but has previously said its success is due to its efficient supply chain, not tax exemptions.

the treasury said tax policy must balance the interests of consumers and retailers.

however, mr dunkerton said it was in the uk's interest to close this tax loophole.

dunkerton, founder and chief executive of superdry, said: "these regulations were not designed for a company that sends personal parcels in the uk and has a turnover of £1bn and pays no tax. essentially, we are allowing certain people to come in and become tax evaders."

goods valued at less than £135 sent directly to uk shoppers are not subject to import duties, but companies sending larger shipments do have to pay import duties.

the exemptions had limited impact before the advent of globalized online markets, but today retailers in the united states and the european union are increasingly under pressure from low-cost chinese competitors, while national coffers are missing out on potential tax revenue opportunities.

mr dunkerton also described shein as a complete environmental disaster.

he told the bbc: "personally i would force them to pay import duties, vat and possibly even an environmental tax.

shein has previously said it fully complies with all of its uk tax obligations.

mr dunkerton is not the only retail boss to criticise the import tariff regime.

in july, sainsbury's boss simon roberts said all retailers should be working on the same basis.

around 20% of sainsbury's sales come from non-food items and mr roberts said: "i want to make sure that there are tax loopholes that currently exist for some businesses that are not paying tax in the right way so that we can level the playing field for everyone.

in march this year, next chairman lord wolfson also called on the government to review the import tariff system.

shein, which was founded in china but relocated to singapore, has been preparing to sell shares on the stock market, prompting greater scrutiny of its practices.

the bbc understands that the company submitted preliminary paperwork for a london listing earlier this year after the idea of ​​a possible new york listing came under heavy criticism from both republican and democratic politicians.

shein says its test-and-repeat approach, whereby it makes products in small batches and then reorders them based on customer demand, results in less waste than traditional retailers.

but it has been criticised for encouraging shoppers to buy disposable garments through low prices and gamified social media strategies.

the u.s. and the european union are already studying whether to tighten tax rules to include shein and other direct-to-consumer businesses such as chinese retailer temu.

shein has previously said its success is not due to duty-free sales but to offering customers fashionable products at affordable prices.

a treasury spokesman said: "our customs and tax system strikes a balance between reducing the burden on businesses and consumers buying low-value goods from overseas and the interests of uk businesses.

they added that vat applies the same rate to all goods, regardless of their origin or value.

mr dunkerton founded superdry over 20 years ago.

its distinctive japanese-style t-shirts have been worn by hollywood actors and sports stars, and at its peak in 2018 the company was valued at £1.8bn.

but the company's profile has waned and it was delisted from the london stock exchange in july, ending a nearly 15-year listing.

shares in the company, which is now trading on another exchange, are valued at less than £10m. mr dunkerton said he was still working to turn around the company's fortunes and confirmed he would try again to take it private.