**Cyprus Collects Nearly €2 Million in First Month of New €3 Online Shopping Duty**
Cyprus has reported a significant financial return from its newly implemented €3 customs duty on low-cost online shopping, generating nearly €2 million in revenue during July. This figure was revealed by George Constantinou, a spokesman for the customs department, who spoke to the Cyprus News Agency (CNA).
The new duty, which came into effect on July 1, applies to parcels valued at less than €150 that arrive directly from countries outside the European Union. The customs department processed approximately 650,000 chargeable items across 160,000 parcels in the first month of the measure. The revenue generated, around €1.95 million, translates to an average customs charge of just over €12 per parcel, indicating a robust response from the online shopping community.
This initial revenue is particularly noteworthy when compared to the customs department's earlier projection of approximately €15 million in annual revenue from the new duty. With July alone contributing about 13 percent of this estimate, if the current collection levels persist, the total revenue for the year could exceed €23 million. However, customs officials have cautioned that the first month’s results should not be viewed as a definitive indicator of long-term consumer behavior.
Constantinou noted that while there was a relative decline in small-parcel imports compared to previous months, it is premature to conclude whether this is due to the new customs charge. He suggested that some consumers may have expedited their orders in June to avoid the duty, and the holiday month of July typically sees a natural decrease in online shopping activity. A clearer understanding of consumer trends is expected to emerge within the next three to four months.
The implementation of this duty is part of a broader EU strategy to manage the surge in direct-to-consumer imports from online platforms such as Temu, Shein, and AliExpress. According to official EU statistics, nearly 5.9 billion low-value items entered the EU in 2025, marking a 26 percent increase from the previous year. These items, with an average declared value of just €8.82, accounted for nearly 98 percent of all imported items processed by EU customs authorities.
In response to the new duty, large online retailers may adjust their logistics strategies. Some companies might opt to store their inventory in warehouses within the EU to avoid the additional charges associated with direct shipments from third countries.
Despite the increased volume of goods processed, Constantinou reported that the customs department encountered no significant issues managing the additional administrative workload. Initial adjustments were required to refine the calculations and collection methods within their accounting system, but operations have since normalized. Furthermore, there have been no formal complaints from consumers regarding the new duty, with initial inquiries primarily focused on the timing of the charge relative to order placement and parcel arrival.
Constantinou expressed optimism that consumers are beginning to understand that the new duty does not drastically impact overall prices, predicting that online shopping orders will eventually return to previous levels. As the customs department continues to monitor the situation, stakeholders will be keenly observing the reactions of both consumers and large retailers in the coming months.