Thousands of Cypriot consumers face a frustrating holiday wait as “problematic” parcels from non-EU countries remain trapped in a month-long backlog, a delay sparked by a combination of severe understaffing and a complex transition to new customs systems.
While many items arrive at Larnaca from the other side of the globe within days, the journey from the airport to the final recipient is now taking up to 30 days. Both the Department of Customs and Cyprus Post have acknowledged the crisis, which has been exacerbated by a surge in seasonal shopping and a recent change in EU tax regulations requiring VAT on all items, regardless of their value.
Systemic friction and the VAT ‘cliff edge’
George Constantinou, the spokesperson for the Department of Customs, confirmed that a “period of adjustment” was required following the implementation of a new automated clearance system. The transition necessitated the synchronisation of Customs and Postal software, creating an initial bottleneck where parcels remained stationary at the exchange office for extended periods.
Further complicating the flow is the removal of the previous €22 VAT exemption threshold. Under current rules, every item from a third country must be assessed for VAT from zero value, exponentially increasing the workload for inspectors. While Customs officials maintain that their processing is now “back to normal,” the burden has shifted to the preliminary data entry required by the Post.
Understaffing and ‘incomplete’ data
According to Pavlos Pavlidis, Director of Cyprus Post, the primary cause of current delays is the arrival of parcels with incomplete sender data or missing customs declarations.
- Manual Processing: “Problematic” packages—estimated at approximately 2,000 units—must be pulled from the automated flow to be manually updated with data extracted from physical labels.
- Staff Vacancies: The department is currently grappling with approximately 50 vacant postal officer positions. While 44 posts have been advertised and 11 new staff members hired, Pavlidis noted a continuous “leakage” of personnel to other government departments.
Misdirection of blame
The Department of Customs has pushed back against claims from private courier companies that the bottleneck lies at the border. Constantinou clarified that the delays frequently stem from the country of origin, where senders fail to provide digital descriptions of contents.
“When citizens contact couriers, they are often told the process is delayed at Customs, which is simply not true,” Constantinou stated. He explained that when data is missing, Cyprus Post must act as a data-entry proxy before the item can even be presented to Customs for tax assessment.
For packages originating within the European Union, the process remains relatively swift as they bypass the VAT and duty assessment required for third-country imports. However, for those awaiting gifts from abroad, the current shortfall in manpower means the “last mile” of delivery remains the longest part of the journey.
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