*

Italy targets Temu and Shein with new levy

*

Concerned about impact of low-cost goods in market

*

Also plans measures to protect workers' supply chain in

Italy

(Adds details, Economy Minister, Italian industry reaction in

paragraphs 2-3, 6, 9-10)

By Giuseppe Fonte and Elisa Anzolin

ROME, Oct 15 (Reuters) - Italy plans to apply an extra

levy on Chinese fast fashion products to help shield its fashion

industry from low-cost foreign imports, government sources told

Reuters on Wednesday.

The move is aimed at avoiding unfair competition in the

market for what is one of Italy's key industries, the people

said, adding Rome would likely impose the charge on online

retailers Temu and Shein, among others.

The two companies did not immediately respond to

requests for comment, made outside business hours.

"We will present a measure to tackle the ultra fast fashion

phenomenon: an invasion of low-cost foreign products that damage

our producers and put consumers at risk," Industry Minister

Adolfo Urso said in a statement at the end of a meeting with

fashion industry representatives in Rome.

CONCERNS OVER IMPORTS BEING DIVERTED FROM U.S.

There is growing alarm in European capitals that China is

progressively diverting goods at lower prices to EU markets as a

way of making up for its lost U.S. trade, following the tariff

policies adopted by President Donald Trump.

"We are victims of the rogues of globalisation," Economy

Minister Giancarlo Giorgetti said on Tuesday, referring to

China.

Rome plans to intervene by adopting a scheme envisaged

in a European Union directive on the so-called Extended Producer

Responsibility (EPR), the sources said.

The charge will force manufacturers to cover the costs of

collecting, sorting and recycling their products once they

become waste.

Amazon Haul, which uses the same model as Shein and Temu

of shipping clothes, accessories and electronics straight from

Chinese factories to shoppers, also launched in Italy last week.

There are 22.8 million users of the Shein app in Italy,

according to Shein's latest report on average monthly user

numbers in the EU, covering February to July this year.

ITALIAN BRANDS NEED TO CLEAN UP SUPPLY CHAIN

After Wednesday's meeting, Urso also underlined that

measures were being introduced to help ensure that workers'

rights were not abused in the supply chain in Italy after a

series of high-profile cases involving leading brands.

"We are very pleased with the speed at which Minister

Urso and his team are working, responding to the needs of our

industry and, above all, defending 'Made in Italy'," said Luca

Sburlati, head of the Confindustria Moda industry lobby.

Italian prosecutors have alleged that luxury shoemaker

Tod's failed to adequately oversee its suppliers in order to

pursue higher profits. The company - which is not under

investigation - said that it complies with the law.

Five other luxury brands have already been put under

judicial administration for similar reasons in Italy since the

start of last year.

(Additional reporting by Helen Reid

Editing by Keith Weir and Frances Kerry)