The European Union is moving to close one of the most controversial loopholes in cross-border e-commerce. From July 1, the bloc will introduce a fixed €3 customs duty on low-value parcels imported from outside the EU, targeting the growing volume of online purchases from platforms such as Shein, Temu and AliExpress.

A Temporary Measure Targeting A Structural Problem

Under the new rules, parcels valued at less than €150 will be subject to the €3 charge. Until now, such shipments were exempt from customs duties under the EU’s de minimis threshold. Although they were still subject to VAT and customs declarations, they entered the bloc duty-free.

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Brussels argues that the system has become increasingly difficult to manage, putting European retailers at a competitive disadvantage while making it harder for customs authorities to enforce safety, environmental and consumer protection rules across billions of small imports.

How The €3 Duty Will Work

Rather than applying once per parcel, the charge will be based on customs classifications.

For example, a package containing a T-shirt and a pair of shoes would incur two separate €3 charges because they fall under different product categories. By contrast, several identical T-shirts shipped in the same parcel would normally attract a single €3 charge.

Designed as an interim solution, the measure is expected to remain in force from July 1, 2026, until July 1, 2028, although officials have left open the possibility of an extension if necessary.

Once the EU’s e-commerce customs data hub becomes operational, the temporary measure is expected to be replaced by the bloc’s standard customs tariffs.

Why Brussels Is Acting Now

Brussels introduced the measure following a sharp increase in low-value imports. EU data show that 4.6 billion low-value parcels entered the bloc in 2024, while almost 5.9 billion individual items were shipped directly from third countries to EU consumers in 2025.

Most of that trade is concentrated in China. According to EU figures, 91% of low-value shipments arriving in 2024 originated there, highlighting the growing influence of Asian e-commerce platforms on the European market.

Beyond competition concerns, EU institutions argue that the sheer volume of small parcels makes it increasingly difficult for customs and market surveillance authorities to verify compliance with European safety, environmental and consumer protection rules.

Particular scrutiny has focused on toys, cosmetics, electronics, food supplements and personal protective equipment sold directly to consumers through non-EU platforms.

Targeted inspections carried out across the EU in 2025 found that more than 60% of products checked in those categories failed to comply with EU standards because of issues such as missing labels, prohibited ingredients or inadequate safety documentation, according to the European Commission.

The Wider Policy Goal: Fairness, Safety And Enforcement

According to the Council of the European Union, the new measure is intended to address “unfair competition for EU sellers, health and safety risks for consumers, high levels of fraud and environmental concerns.”

More broadly, the initiative reflects a shift in Brussels’ approach. Rather than treating low-value e-commerce imports as a niche customs issue, policymakers increasingly view them as a broader challenge for market integrity, consumer protection and regulatory enforcement.

Who Pays The Charge?

Although the €3 duty applies to businesses, consumers could ultimately bear the cost if online platforms pass it on through higher prices, delivery fees or other charges.

According to the European Commission, the duty is not a tax on consumers. Legal responsibility rests with the declarant, such as the seller, importer, IOSS holder or their representative, while consumers are expected to become liable only in limited circumstances.

A separate handling fee is also being considered as part of the wider customs reform. The final amount is expected to be agreed before member states begin applying it, no later than November 1, 2026.

What It Means For Shoppers In Cyprus And Across The EU

For shoppers in Cyprus and elsewhere in the EU, the most noticeable impact will be on low-cost purchases from non-EU platforms. Small orders may become slightly more expensive, while parcels containing different categories of products could incur multiple €3 charges.

Timing will also be important. As with other imports from third countries, customs duties are generally determined when goods enter the EU customs system and are cleared, rather than when the order is placed.

A similar principle already applies to larger imports, including passenger vehicles imported into Cyprus from outside the EU. Customs charges arise when the vehicle enters the country and is cleared, with passenger cars generally subject to a 10% import duty and 19% VAT.

Simply placing an order before July 1 may therefore not be enough to avoid the charge if the parcel arrives and is cleared after the new rules take effect. The purchase date alone does not determine whether the duty applies.

For online shoppers, the practical assumption is straightforward: if a parcel from a non-EU country is released through EU customs on or after July 1, the new €3 charge may apply, even if it was ordered earlier.

How Platforms May Respond

Online retailers may seek to reduce the impact by importing goods into European warehouses in bulk before distributing them to customers. In that case, products would no longer enter the EU as individual low-value parcels, although they would still be subject to the standard customs procedures and duties that apply to larger commercial shipments.

One of the policy’s objectives is to encourage larger, more traceable consignments. That would allow customs authorities to inspect imports more efficiently instead of processing millions of individual parcels arriving through airports and ports across the bloc.

For the EU, the measure is intended to strengthen enforcement as much as raise revenue, giving customs authorities greater oversight of a system that has become increasingly difficult to manage.