Background
Effective 1 July 2026, the Cyprus Customs Department introduced a temporary €3 duty on parcels arriving from non‑EU (third) countries. The measure is part of a broader EU customs reform aimed at harmonising import controls across member states. A second, €2 processing fee is slated to commence on 1 November 2026.
Impact on Parcel Volumes
According to a statement from Customs spokesperson Georgios Konstantinos, the duty has already produced a noticeable contraction in inbound shipments. "We have observed a reduction of roughly 30 % to 35 % in the number of parcels arriving from third countries compared with the months preceding July," he told the Cyprus Press Office (KYPE).
The decline mirrors trends reported by several other EU member states, indicating a pan‑European response to the new charge.
Shift in Declared Items
Prior to the duty, importers typically declared one to two goods per parcel, as the lack of a tariff made detailed itemisation unnecessary. Post‑implementation, the average number of declared items has risen to four or five per parcel, reflecting increased compliance with customs documentation requirements.
Consequently, while total parcel numbers have fallen, the volume of declared goods has surged. For example, a month that previously saw 100 000 parcels with 100 000‑200 000 declared items now records the same parcel count reduction but 400 000‑500 000 declared items.
- Pre‑duty average: 1‑2 items per parcel
- Post‑duty average: 4‑5 items per parcel
- Estimated monthly revenue from the €3 duty: €1‑1.5 million
Revenue Implications
The temporary duty generates an estimated €1 million to €1.5 million per month. However, customs officials clarified that 75 % of this revenue is remitted to the European Union, with only 25 % retained by the Republic of Cyprus.
Upcoming €2 Processing Fee
Starting 1 November, a €2 fee will be levied on each customs inspection, irrespective of parcel value. Konstantinos stressed that this is not an additional tariff but a processing charge arising from the EU’s new Union Customs Code.
Both the €3 duty and the forthcoming €2 fee are intended to fund the modernization of customs infrastructure and to streamline inspection procedures across the Union.
Stakeholders are advised to adjust pricing strategies and supply‑chain forecasts in line with the evolving cost structure.