EU puts €3 price tag on low-cost online parcels

The European Union will begin charging a fixed €3 customs duty on small parcels imported from outside the bloc from Wednesday, July 1, in a move aimed at curbing the surge in low-cost online orders from platforms such as Shein, Temu and AliExpress. The measure will apply to parcels worth less than €150, which until now were exempt from customs duties, although they were still subject to VAT and customs declarations. The exemption, known as the de minimis threshold, has long allowed low-value goods to enter the EU duty-free, a system Brussels says has created unfair competition for European retailers and made customs checks harder to enforce. The new customs duty will not be calculated simply per parcel. Instead, it will apply per different type of item, based on the product’s customs classification. This means a package containing a T-shirt and a pair of shoes would face two €3 charges, while a parcel containing several T-shirts of the same type would normally attract one €3 charge. The duty is temporary, and is expected to remain in place until the EU’s broader customs reform comes into force. The interim flat-rate charge is due to apply from July 1, 2026 to July 1, 2028, although it may be extended if needed. Once the data hub for e-commerce goods is operational, the temporary charge is expected to be replaced by the bloc’s normal customs tariffs. The decision follows a sharp rise in low-value imports. According to EU figures, 4.6 billion low-value parcels entered the European market in 2024, while almost 5.9 billion such items were shipped directly from third countries to consumers in the EU in 2025. The same data showed that 91 per cent of small shipments arriving in the EU in 2024 came from China, emphasising the scale of the trade flowing into Europe through major Asian platforms. Brussels says the issue is not only commercial. EU institutions have warned that the volume of parcels makes it difficult for customs and market surveillance authorities to check whether goods comply with European rules on safety, environmental standards and consumer protection. Concerns have been raised in particular over toys, cosmetics, electronics, food supplements and personal protective equipment sold directly to households through non-EU online platforms. The European Commission said targeted inspections carried out across the EU in 2025 found that more than 60 per cent of checked products in those categories failed to meet EU standards, due to issues such as missing labels, forbidden ingredients or absent safety documentation. The Council of the EU said the measure was intended to address “unfair competition for EU sellers, health and safety risks for consumers, high levels of fraud and environmental concerns.” Although the charge is legally aimed at businesses, consumers may still end up paying it if platforms decide to pass on the cost through higher prices, checkout fees or delivery-related charges. The Commission has stressed that the €3 duty is not a tax on consumers. The responsibility falls on the declarant, such as the seller, importer, IOSS holder or their representative, with consumers expected to be liable only in limited cases. A separate handling fee is also being discussed as part of the wider customs reform. The level of that fee is expected to be decided before it starts being applied by EU member states, no later than November 1, 2026. For shoppers in Cyprus and the rest of the EU, the practical effect is likely to be felt most on small orders from non-EU platforms. A single low-cost order may become slightly more expensive, while mixed baskets containing several different product types could see the charge added more than once. The timing will also matter. As with other imports from third countries, the key point is generally when the goods enter the EU customs system and are declared for release, not simply when the consumer placed the order. A similar principle already applies to larger imports, such as passenger cars brought into Cyprus from outside the EU. A vehicle ordered from a third country is subject to import charges when it is imported and cleared through customs, with passenger cars generally facing 10 per cent import duty, as well as 19 per cent VAT on importation. In practical terms, this means a shopper who places an order before July 1 may still face the new charge if the parcel arrives and is declared after the measure has entered into force. The purchase date alone may not be enough to avoid the duty, particularly where the parcel is shipped later or remains in transit when the new rules begin applying. The same logic is familiar from vehicle imports. A buyer may agree to purchase a car before a tax change takes effect, but the charges normally depend on the rules in force when the car is imported and cleared, unless a specific transitional provision says otherwise. For online shoppers, the safest assumption is therefore simple. If a parcel from a non-EU country is cleared through EU customs from July 1 onwards, the new €3 duty may apply, even if the order was placed earlier. Platforms may also try to limit the impact by importing goods in bulk into European warehouses before selling them to consumers. In that case, the goods would no longer arrive as individual low-value parcels, although they would still be subject to the ordinary customs duties and checks applying to larger commercial imports. That shift is partly what EU officials want. By encouraging platforms to move goods through larger, more traceable consignments, Brussels hopes customs authorities will be able to inspect shipments more efficiently, rather than trying to police millions of small parcels arriving one by one at airports and ports across the bloc.