Breaking news

EU Council Endorses New 3 Euro Customs Fee For Small Packages

Overview Of The New Customs Regulation

The European Union Council has approved a minimum fee of 3 euros for every small package entering the EU from third countries, effective from July. This decision is part of a broader revision of customs duties designed to modernize and level the playing field in the age of global e-commerce.

Addressing Unfair Competition

Under the existing framework, many low-value parcels, largely shipped from China, enter the EU without customs duties. This practice has long been criticised for distorting competition and disadvantaging European retailers. The planned removal of the exemption for packages valued under €150 is expected to strengthen local businesses and limit unfair pricing strategies by foreign sellers. Finance Minister Makis Keravnos noted that updating customs rules is essential for both market competitiveness and consumer protection.

Implementation Timeline And Key Measures

A central element of the reform is the abolition of the value-based duty exemption for parcels below €150. Customs duties will gradually be applied to all goods once the EU Customs Data Hub becomes operational, which is currently projected for 2028. In the interim, Member States have agreed on a temporary unified fee of €3 per parcel for items below the €150 threshold when shipped directly to consumers.

Differentiated Duty Charges By Item Category

From July 2026, the duty will be calculated according to the number of tariff categories contained within a package. For example, if a parcel includes two different clothing items classified under separate tariff codes, the total fee will amount to €6. This approach aims to ensure more accurate assessments and greater consistency in customs treatment across imported goods.

Economic Impact And Future Considerations

The revised customs structure is expected to generate additional revenue for both the EU budget and national treasuries, as customs duties remain an important financial resource for the Union. Officials also clarified that the €3 parcel fee is separate from a proposed processing charge that is still under discussion within the wider customs reform package.

Concluding Remarks

With global online trade continuing to expand, the EU’s decision represents a strategic effort to update its customs framework and restore balance between domestic and international sellers. Clear timelines and structured implementation measures suggest that the new system could significantly reshape how small cross-border shipments are handled within the European market.

Cyprus Hits Historic Tourism Peak As Overtourism Risks Mount

Record-Breaking Performance In Tourism

Cyprus’ tourism sector achieved unprecedented success in 2025 with record-breaking arrivals and revenues. According to Eurobank analyst Konstantinos Vrachimis, the island’s performance was underpinned by solid real income growth and enhanced market diversification.

Robust Growth In Arrivals And Revenues

Total tourist arrivals reached 4.5 million in 2025, rising 12.2% from 4 million in 2024, with momentum sustained through the final quarter. Tourism receipts for the January–November period climbed to €3.6 billion, marking a 15.3% year-on-year increase that exceeded inflation. The improvement was not driven by volume alone. Average expenditure per visitor increased by 4.6%, while daily spending rose by 9.2%, indicating stronger purchasing power and higher-value tourism activity.

Economic Impact And Diversification Of Source Markets

The stronger performance translated into tangible gains for the broader services economy, lifting real tourism-related income and overall sector turnover. Demand patterns are also shifting. While the United Kingdom remains Cyprus’ largest source market, its relative share has moderated as arrivals from Israel, Germany, Italy, the Czech Republic, the Netherlands, Austria, and Poland have expanded. This gradual diversification reduces dependency on a single market and strengthens resilience against external shocks.

Enhanced Air Connectivity And Seasonal Dynamics

Air connectivity has improved markedly in 2025, with flight volumes expanding substantially compared to 2019. This expansion is driven by increased airline capacity, enhanced route coverage, and more frequent flights, supporting demand during shoulder seasons and reducing overreliance on peak-month flows. Seasonal patterns remain prominent, with arrivals building through the spring and peaking in summer, thereby bolstering employment, fiscal receipts, and corporate earnings across hospitality, transport, and retail sectors.

Structural Risks And Future Considerations

Despite strong headline figures, structural challenges remain. The European Commission’s EU Tourism Dashboard highlights tourism intensity, seasonality, and market concentration as key risk indicators. Cyprus records a high ratio of overnight stays relative to its resident population, signalling potential overtourism pressures. Continued reliance on a limited group of origin markets also exposes the sector to geopolitical uncertainty and sudden demand swings. Seasonal peaks place additional strain on infrastructure, housing availability, labour supply, and natural resources, particularly water.

Strategic Investment And Market Resilience

Vrachimis concludes that sustained growth will depend on targeted investment, product upgrading, and continued market diversification. Strengthening year-round offerings, improving infrastructure capacity, and promoting higher-value experiences can help balance demand while preserving long-term competitiveness. These measures are essential not only to manage overtourism risks but also to ensure tourism remains a stable pillar of Cyprus’ economic development.

The Future Forbes Realty Global Properties
Uol
eCredo
Aretilaw firm

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter