The European Union's new €3 duty on low-value online purchases from third countries comes into force today, applying to parcels worth less than €150 from platforms such as Shein and Temu.
In Cyprus, small-parcel deliveries are estimated at around 2.5 million shipments, with the Customs Department expecting the measure to generate approximately €15 million in revenue.
Market representatives who spoke to Politis said the new charge is unlikely to trigger a dramatic shift in consumer behaviour.
Virginia Christou, legal adviser to the Cyprus Consumers Association, said the duty was introduced following pressure from EU businesses seeking protection from low-cost competition.
“The EU did not act primarily for consumer safety reasons but responded to concerns from businesses losing revenue,” she said, while noting that some imported toys, jewellery and clothing fail to comply with European safety standards.
She pointed out that platforms such as Temu and Shein have generated more than €1 billion in annual profits in recent years while European businesses have suffered losses.
“We do not believe Cypriot consumers will substantially change their shopping behaviour,” Christou said. “There is continuous product availability and companies are likely to absorb a significant part of the duty rather than lose customers.”
According to her, online platforms have already increased promotions and discounts to retain consumers.
She added that major platforms have developed logistics hubs and warehouses in European ports, making it increasingly likely that physical stores will appear across Europe, as has already happened in countries such as France and the UK.
Pancyprian Retail Trade Association (PASYLE) secretary-general Marios Antoniou said it remains to be seen whether the new duty will affect purchasing patterns in practice.
“The level of the charge is not prohibitive,” he said, suggesting that consumers ordering multiple units of the same product are unlikely to change their habits.
“Those purchasing a variety of different products may think twice and postpone some purchases,” he added.
Stefanos Koursaris, secretary-general of the Cyprus Federation of Professional Craftsmen and Shopkeepers (POVEK), said the measure is a step in the right direction because it addresses unfair competition affecting mainly small and family-run businesses.
He noted that online commerce surged after the Covid-19 pandemic, putting pressure on the viability of many local retailers.
Koursaris also argued that the EU should eventually focus more closely on product safety and consumer health concerns. While the duty is scheduled to remain in place for two years, he believes the measure should continue beyond that period.
As for consumers, he expects them to become more selective in their purchases, though without any dramatic change in behaviour.
2.5 Million Small Parcels
Customs Department spokesperson Giorgos Constantinou told Politis that customs declarations for low-value parcels have increased sharply since September last year.
“This is because Shein and Temu began shipping directly to Cyprus from September 2025,” he said. Previously, parcels destined for Cyprus were routed through other European countries.
According to Constantinou, approximately 2.5 million parcels from the two platforms were shipped to Cyprus between September 2025 and the end of June 2026.
“The average value of a parcel is between €60 and €70. If the final cost rises to €79, for example, consumer behaviour is unlikely to be significantly affected,” he said.
How the Duty Works
The €3 charge applies per product category rather than per parcel.
For example:
- A package containing a T-shirt and a pair of shoes will incur two separate €3 charges.
- A package containing several T-shirts and no other type of product will incur a single €3 charge.
The measure is temporary and will remain in force until the EU introduces a broader customs reform expected within the next two years.
