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Chinese E-commerce Giants Adapt to EU's 3-Euro Parcel Duty with Local Warehousing and Seller Partnerships

Chinese e-commerce giants Temu and Shein are adjusting their operations in Europe to mitigate the impact of the EU's new 3-euro duty on small parcels from outside the bloc, which has been in effect since July 1, 2026. This duty has already generated over 2 million euros in Cyprus from Chinese imports. To minimize costs for customers, these platforms have introduced a pricing system that incorporates the duty at checkout and are increasing the presence of local sellers and stock within Europe.

Temu has partnered with the Cyprus IT Enterprises Association to strengthen ties with Cypriot businesses and facilitate sales across Europe through its Local Seller Program launched in 2025. By shipping bulk quantities to European warehouses where products clear customs and VAT is paid, goods can be fulfilled within the EU without incurring the 3-euro small parcel charge for each item.

This new logistics model reduces per-item shipping costs, shortens delivery times, and simplifies returns despite requiring warehouses, larger inventories, and better demand forecasting. Ultimately, European shoppers looking to avoid the duty will receive Chinese-made products shipped from European locations, effectively blending local address benefits with global manufacturing.

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