End of an era for Shein & Temu for Cypriot consumers – Customs duties coming from Early ’26
The duty-free regime for small parcels will be a thing of the past in the first quarter of 2026 – The cost for consumers remains unknown
It is the end of an era for the once-popular platforms Shein and Temu, which soared with billions in sales across all EU countries, including Cyprus.
The European Commission decided and announced on 13 November 2025, at the Ecofin Council, the imposition of customs duties on small parcels valued under 150 euros, closing the loophole that allowed online purchases at extremely low prices.
Implementation in early ’26 – Unknown tariff levels
This change is expected to increase the final cost for Cypriot consumers as well, overturning the existing landscape for online purchases from non-EU countries and creating a fairer competitive environment for European businesses.
Virginia Christou, legal advisor of the Cyprus Consumers Association, speaking on SIGMA’s programme “Mesimeri kai Kati” , stated that it is still unknown what level of duties Cypriot and European consumers will be required to pay when ordering small parcels.
She stressed that the agreement will come into force earlier than expected following pressure, specifically in the first quarter of 2026, when the duty-free regime for small parcels will be abolished.
Thus, from the new year onwards, as all indications suggest, orders of products from online platforms outside the EU (Temu, Shein, etc.) will become less attractive – if not unprofitable – for European consumers, since duties and fees will be imposed even on very low-value parcels imported from China or other third countries.
Reasons for imposing duties
According to Ms Christou, this decision was taken because the EU was losing revenue amounting to 140 billion euros, as European consumers were placing more than 4.6 billion orders.
Moreover, the low prices of products encouraged consumers to turn to these platforms, causing serious harm to small and medium-sized businesses. This is also why the USA, immediately after Trump’s election, proceeded with the imposition of tariffs.
Another reason, she noted, is that the products often do not comply with EU rules and standards.
Physical stores as an obstacle for the EU
However, an unanswered question remains, she pointed out. These two platforms are not new to the market – they have been operating for 15 years. Therefore, they have established routes in all EU ports and have consequently set up warehouses on European soil.
In some EU countries they are even opening new physical shops. This poses an additional obstacle for the Commission to handle, as Shein, through the stores it opens, will be able to sell products from one EU country to another without duties being imposed, she noted.
Finally, Ms Christou reminded that the Consumers Association has made numerous complaints against Shein and Temu. A recent investigation shows that these companies violate the European regulation concerning product safety, including items such as children’s products, jewellery, and cosmetics. She also stressed that these platforms continue to mislead consumers by making claims about pseudo-environmental practices regarding clothing items.
Also read: EU investigates Shein for unsafe e-commerce imports
Source: Economy Today
