Will it still be worth it to shop from Temu?

With shoppers at popular non-EU retailers such as Temu, AliExpress and Shein soon to see their bill rise as a new customs tax comes into effect next month, Times of Malta set out to understand how the fee will be applied.

What is the new customs duty, and when will it come into effect?

A new €3 customs duty on items bought from outside the EU will apply from July 1 in a change likely to make low-value online shopping more expensive.

The simplified flat-rate duty will apply per item purchased online from non-EU countries, meaning shoppers may pay more when buying multiple products from platforms such as Temu, AliExpress and Shein.

“This duty will also be included in the total amount used to calculate VAT. As a result, low-value online purchases of goods from outside the EU may become more expensive, and the process for returning goods may also be affected,” Customs said in a statement.

How is the duty calculated if I have multiple items?

The key thing to remember is that this counts per item.

This means that if someone buys a shirt from a seller outside the EU, they will have to pay an additional €3 customs duty charge, plus VAT.

If they buy trousers, a skirt and a dress, these will be treated as three different items with distinct tariff classifications. Each will have its own €3 customs duty charge, meaning an additional €9 customs duty charge, plus VAT.

However, if one package contains two of the exact same shirts, they will be considered one item, and only one customs duty charge of €3 will apply.

How do I pay the duty?

The new duty can be paid in two ways.

It may be charged at checkout by the platform, which should clearly show that the €3 duty and VAT are included. Alternatively, the postal service provider or courier will require the consumer to pay the €3 duty per item before the goods can be delivered.

Is the duty determined when the item is ordered?

Not necessarily. Customs told Times of Malta that “the applicable duty is determined at the point of importation, i.e. when the goods are declared to Customs, rather than the date on which the order was placed”.

So, if you order an item on June 29 and it is only declared to customs on July 5, then you still need to pay the duty.

Does this only affect the non-EU sellers?

The duty will not apply to goods shipped from within the EU. However, consumers should note that even if goods are bought from an EU supplier, the €3 duty will still apply if they are shipped from outside the EU.

Therefore, customs have encouraged consumers to verify whether goods are being shipped from within or outside the EU.

What about VAT?

According to a statement published by Customs, the duty will also be included in the total amount used to calculate VAT, which will further impact the final cost.

How is this impacting sales locally leading up to July?

MaltaPost told Times of Malta that, in the run-up to the July start date, it had seen an increase in purchases.

“MaltaPost has experienced an increase in inbound low-value e-commerce shipments over recent weeks and before the new €3 customs duty per item comes into effect,” it said.

“This reflects wider European trends, as consumers have in the past years increasingly turned to online platforms outside the EU which offer extensive choice, convenience and competitive prices.”

In 2024, 4.6 billion small retail packages entered the European Union, more than 145 per second. Of these, 91 per cent originated in China, and their number is expected to keep rising.