WT/TPR/S/25 Trade Policy Review
Page 24
III. TRADE MEASURES
(1) Overview
1. Cyprus doesnotresort totheuseofprior import deposits, minimum import orexport prices,
variable import levies, import surveillance, local-content requirements, orrestrictions for
balance-of-payments purposes.1Discretionary import licensing, toprotect local production, was
abolished, along withremaining quantitative restrictions, witheffect from1January 1996; tariffs are
nowthemain instrument oftheimport regime. Surcharges, incorporated inthecustoms duty, have
replacedquotasoncertainproductsdefinedassensitivewithinthetermsoftheCustomsUnionAgreement
withtheEU.During theUruguay Round, Cyprus bound approximately 80percentofindustrial tariff
linesat40percent,andallagricultural tariff linesarebound. Theaverage applied tariff, excluding
specific duties, onm.f.n. imports was16.4 percentin1996; themaximum tariff ranges upto
300percent. The1996 simple average tariff onimports from preferential (EU) suppliers was
7.2percent. Notonlyistheaverage tariff onimports from theEUlower, butalarger number of
imports fromtheEUareeligible forduty-free treatment. Except forcigarettes, where localproduction
andimports fromtheEUaresubject tolower duties, thelevying ofexcise duties follows theprinciple
ofnational treatment. Cyprus hashadlittle, ifany,recourse totemporary protection.
2. Apart from anexport dutyontablegrapes (3cents percarton) tofinance theTable Grapes
Export Commission, Cyprus applies noexport taxes. There arenoexport bansorprohibitions apart
fromcontrols inaccordance withUNSecurity Council Resolutions andinaccordance withinternational
conventions (e.g.Basel, Montreal Protocol, CITES). Thesystem ofexport licensing ineffect since 1960
wasabolished in1993. There arenoexport quotas intheCyprus trade regime norareanyexport
performance requirements setforindustries; however, there areanumber ofincentives toexport
including taxconcessions onmanufacturing industries andproduct-specific subsidies toagricultural
exports.
3. Certain agricultural marketing boards havesoletrading privileges. Price controls stillapply
tosome products where conditions ofimperfect competition aredeemed, bytheauthorities, toexist.
Import cartels areprohibited butexport cartels areallowed. While theGovernment legally protects
andenforces intellectual property rights, thelegalframework isunder revision forconformity with
WTO obligations.
(2) Measures Directly Affecting Imports
(i) Registration requirements
4. There arenoregistration requirements forimporters.
(ii) Tariffs
5. Cyprus hasapplied theCombined Nomenclature oftheEU,based ontheHarmonized System,
since March 1988. TheCyprus Customs Tariff comprises about 10,500 tariff linesattheeight-digit
level.2While themajority ofduties arelevied advalorem, Cyprus applies specific, mixed (advalorem
1Cyprus abolished minimum import prices applied tocertain textile andclothing items on1January 1996.
2Attheten-digit level, there are14,400 lines. TheGovernment plans toreduce thecomplexity ofthetariff
bylimiting thedisaggregation toeight digits.Cyprus WT/TPR/S/25
Page 25
andspecific) oralternate (advalorem orspecific, whichever ishigher) duties quiteliberally, affecting
12percentoftariff lines, predominantly onimports ofagricultural products.3Seasonal tariffs also
apply tocertain kinds offish,cutflowers, fruitandvegetables. Currently many oftheseasonal tariffs
donotinfactdifferentiate between seasons, withsome important exceptions, such astomatoes
(Chapter IV(2)).
(a) Tariff bindings
6. Aspartofitsundertakings intheUruguay Round, Cyprus bound roughly 80percentofits
industrial products atauniform rateof40percent, butexcluded anumber ofproducts (156tariff
headings atthefour-digit level) inorder toprotect localindustry; insectors suchasclothing andmotor
vehicles, tariffs tendtobeunbound.4Inagriculture, Cyprus chose toofferceiling bindings andadopted
thetariffequivalents atleastashighasthose oftheEUinitsoffer, converting thespecific duties from
ECUs toCyprus pounds.
(b) Average tariff levelandtariff range
7. Thesimple average m.f.n. tariff for1996 hasbeen calculated (bytheWTO Secretariat)
as16.4percentwithamaximum tariffranging toover300percentonvegetable oil;forimports from
theEuropean Union, theaverage tariff is7.2percent.5Onm.f.n. imports, theaverage tariff for
agricultural products (HSChapters 1to24),is37.6percent, andforindustrial products (excluding
petroleum products) 10.9percent. Average tariffs arehigher onunprocessed products, at25.3percent
thanonprocessed, 18percent. Forpreferential imports, tariffs arelower: 23.3percentonagricultural
products and3percentonindustrial goods; withrespect totariff escalation, thepertinent tariffs for
preferential (EU)imports are13.4percentforunprocessed goods and8.5percentforfullyprocessed
(Table III.1). Furthermore, duty-free treatment isaccorded to33percentoftariff linesonimports
fromtheEuropean Union; form.f.n. imports, 9percentoftarifflinescarry zerorates(Chart III.1).
Table III.1
Applied tariffs, 1996
(percentage)
m.f.n Preferential
Simple average tariffa16.4 7.2
Agricultural products (HS1-24) 37.6 23.3
Industrial products (HS25-99, excluding petroleum products) 10.9 3.0
Bystage ofprocessing:
Unprocessed products 25.3 13.4
Semi-processed 9.3 1.9
Fully processed 18.0 8.5
Calculated bytheWTO Secretariat.
aAttheten-digit level.
3AttheHSten-digitlevel,thereare1,660dutyrateswhichareeithermixed(1,136),specific(475)oralternate
(49); specific rates fallmainly onagricultural products.
4Atariff linecount renders thefollowing dataregarding items leftunbound: 709lines atthesix-digit level
ofdisaggregation, 1426 attheeight digitlevel and2362 attheten-digit level (roughly 20percentofindustrial
tariff lines). Notariff lines arebound inHSChapters 61,62,64and87.
5Theaverage, calculated attheten-digit level, excludes specific andmixed duties which affect roughly
12percentoftariff lines. Advalorem equivalents arenotavailable.WT/TPR/S/25 Trade Policy Review
Page 26
Cyprus WT/TPR/S/25
Page 27
(c) Tariff concessions
8. When, atthebeginning of1996, tariffs wereraised from100to350percentonagricultural
products following theremoval ofquotas, import dutyrelief wasalsorevised toassist domestic users
ofagricultural inputs. Duty relief, setoutintheFourth Schedule oftheCustoms andExcise Duties
Law1996, isaccorded onthebasisofthreebroad categories. Thefirstincludes suchusers ashospitals,
government bodies, andhotels; thesecond isamixture andthethird, withspecific industrial users
inmind, includes suchitems as"containers usedtopackage fresh milk".
(d) Customs valuation
9. Cyprus hasapplied theAgreement ontheImplementation ofArticle VII,theCustoms Valuation
Code, since 1989 andhasadopted theMarrakesh "Decision Regarding Cases where Customs
Administrations haveReason toDoubt theTruth orAccuracy oftheDeclared Values".6Duties are
applied onthec.i.f.value ofimports. Customs examinations arecarried outrandomly onapproximately
10percentofimports andwhere goods carry highduties. Inverifying thedeclared value, theimporter
mustpresent asigned declaration providing details oftheinvoice value, transportation andinsurance
expenses andanyother direct orindirect payments. Where under-invoicing issuspected, goods may
clearcustoms onthepayment ofadeposit awaiting theresults ofaninquiry. Attimes, invoices are
senttotheexporting country forverification. Decisions bytheCustoms Department maybeappealed
inhigher courts. Clearance ofimports usually occurs onthesame dayasthepresentation ofthe
shipment; export clearance isperformed within acouple ofhours. Allcustoms activities willsoon
befullycomputerized.
(iii) Tariff quotas
10. Cyprus applies tariff quotas oncertain products originating intheEuropean Union. These
"sensitive" products, listed intheSecond PartoftheSecond Schedule oftheCustoms andExcise
Tariff 1996, were initially exempted inthe1987 Customs Union Protocol from thestandard tariff
reduction schedule; thewithin-quota dutyhasbeensetaccording totheCustoms Union Agreement
tariff reduction schedule. Industrial imports subject totariff quotas arethose onwhich Cyprus levies
"safeguard" duties (section (xi)below).
11. Agricultural products imported fromtheEUunder tariffquota, include icecream andicecream
powder (HS1901and2105), pasta (HS1902), andcheesepuffs andchipitos (HS1904.10). Forpasta,
thequota of65,000 kg.carries atariff of16percent; above-quota imports aresubject toamixed
dutyof49.5percentand£C492.75/ton; themixed dutyishigher forimports fromnon-EU suppliers.
Aglobal tariff quota applies to1,100 tonsoffrozen lamb, carrying aspecific dutyof£C0.32/kg.
onEUimports and£C0.5/kg. onnon-EU imports.
(iv) Other levies andcharges
12. Inaddition totariffs, other border taxes include atemporary refugee levy, excise duties on
selected products andthevalue-added tax(VAT), thelatter applied equally todomestically produced
goods.
13. Thetemporary refugee levy(TRL), mandated bytheTemporary Refugees 'Levy Law14/77,
usedtofinance theRelief Fund forDisplaced Persons, isapplied onlytoimports andpostage stamps.
Them.f.n. rateranges from zero to6percent(themaximum rateforpreferential imports
6From 1November 1995, Cyprus hasapplied theDecision adopted bytheCommittee onCustoms Valuation
onValuation ofCarrier Media Bearing Software forData Processing Equipment (G/VAL/N/1/CYP/1).WT/TPR/S/25 Trade Policy Review
Page 28
is3.9percent). Thelevyistobeabolished onproducts governed bythe1987 Protocol tothe
Association Agreement from 1January 1998.
14. Excise duties areapplied equally tolocalandimported goods, withtheexception ofcigarettes
where imports fromm.f.n. suppliers aretaxed attwice therateasthose produced locally orimported
from theEU. Ontheother hand, there isnoexcise dutyonimported rawtobacco, beerorspirits.
Excise duties, withafewexceptions where theyarelevied inspecific terms, range from10percent
one.g.outboard motors to40percentonoffroadvehicles (Table III.2). Total excise duties collected
rosefrom £C105million to£C128million between 1992 and1995: in1995, excise revenue from
imports amounted to£C62.5million, more thanhalfoftotalannual revenue of£C85.9million from
customs duties. Principal sources ofrevenue areduties onmotor vehicles, tobacco andpetroleum
products (Table III.2).
Table III.2
Excise duties applied todomestically produced andimported goods
Class ordescription ofgoods Rate ofduty
1.Beera£12.5perhectolitre
2.Spiritsa69cents perlitreofpurealcohol
3.Tobacco, unmanufactured, including scrap tobacco andtobacco stemsa£3.50perkg.
4.Cigarettes £3.19per1,000 cigarettes, originating
from theRepublic ortheEU
£6.38per1,000 cigarettes, not
originating from theRepublic ortheEU
5.Products oftariff headings 2707.10, 2707.30, 2707.50.91, petroleum oilspartly
refined, including topped crudes, motor spirit (other thanspecial boiling point
spirit adapted foruseasanextracting agent, solvent orcatalyst), falling under
tariff heading 2710 andhydrocarbons oftariff headings 2901.10.10.10,
2901.10.90.10, 2902.20 and2902.44£12.48 perhectolitre
6.Aerated softdrinks 5cents perlitre
7.Motor vehicles oftariff heading 8703.21 -8703.90 £12.48 perhectolitre
8.Motor vehicles oftariff heading 8702 registered asvehicles forthetransport
ofuptoninepersons, including thedriverAmount equal tothedifference of
import dutypayable atthetimeof
importation inaccordance withtariff
heading 8702 andtheimport andexcise
dutypayable onsimilar vehicles of
tariff heading 8703
9.Off-road vehicles oftariff heading 8703 40percent
10.Motor vehicles oftariff heading 8704 10percent
11.Aircraft, seaplanes andhelicopters, excluding passenger andfreight carrier
aircraft ofanunladen weight exceeding 15,000 kg.20percent
12.Yachts andother vessels forpleasure, oftariff heading 8903 10percent
13.Outboard orcombination ofoutboard/inboard internal combustion piston
marine engines10percent
14.Motorcycles withanengine ofacylinder capacity exceeding 100c.c. 20percent
15.Lighters ofalltypes andparts thereof 20percent
16.Liveornamental fish,except those forbreeding, smoked salmon andsmoked
sturgeon (including fillets)20percent
17.Caviar andcaviar substitutes except those usedinthemanufacture oftaramas 20percent
18.Cigars andcigarillos oftariff heading 2402 20percent
19.Clothing andclothing accessories offurskin oftariff heading 4303 20percent
20.Sparkling wine oftariff heading 2204.10 20percent
21.Baths ofadutiable value exceeding £200 20percent
22.Articles ofcrystal oftariff headings 7010, 7013, 7018 and9405 andarticles
made ofporcelain oftariff headings 6913 and691420percent
23.Articles ofporcelain falling within heading 6911 10percent
a Only onlocally produced goods.
Source: Third Schedule totheCustoms andExcise Tariff 1996.Cyprus WT/TPR/S/25
Page 29
15. TheVAT, introduced initially at5percentin1992wasraised to8percentthefollowing year;
revenue collected rosefrom £C36million to£C192million between 1992 and1995. Items which
arezero-rated forVATpurposes include foodstuffs, medicines andmedical devices, newspapers, books
andmagazines, children 'sclothing andfootwear, gasincylinders, fertilizers, plant chemicals, and
agricultural machinery. Items exempt fromVAT include goods imported under a"Customs Regime",
e.g.those thatdonotclear customs, goods imported foroffice usebyoffshore companies andgold
imported bytheCentral Bank.
(v) Import prohibitions andlicensing
16. Import prohibitions, listed inTable III.3, areapplied toenforce environmental agreements,
forsecurity reasons, toenforce intellectual property rights orforother reasons, notified under GATT
Article XXorXXI.
Table III.3
Import prohibitions
1. Allimports from Iraqexcept petroleum andpetroleum products, incompliance withtherelevant resolutions ofthe
Security Council oftheUnited Nations
Allimports originating inTurkey
2. Goods bearing aforged trademark orfalsetrade description
3. Narcotic drugs andpsychotropic substances
Firecrackers
Anyweapon (including daggers ofwhatever description), designed forthedischarge ofanynoxious liquid, gasorother
substances, oranyammunition containing ordesigned oradapted tocontain anysuchnoxious substance
Airguns, airpistols andairrifles ofacalibre exceeding .177inches
Rifles andrepeating firearms
Shotguns (automatic, semi-automatic; repeating; automatic andrepeating; semi-automatic andrepeating)
Articles, trinkets orornaments which resemble anycoins incurrent useintheRepublic orinanyother country andany
goods orarticles bearing anyimpression, presentation ordesign inimitation ofanycurrency note, bank noteorcoinin
current useintheRepublic orinanyother country
False orcounterfeit coinorcurrency notes resembling orapparently intended toresemble ortopassforanycoinor
currency notes forthetimebeing current intheRepublic, orforthecoinorcurrency notes ofanyother State
Counterfeit stamps, anddies, plates andinstruments formaking suchstamps
Obscene andindecent printed matter andarticles
Gambling machines
Automatic tobacco vending machines
4. Goods covered bytheBasel Convention onHazardous Wastes, substances included intheMontreal Protocol on
Protection oftheOzone Layer andendangered species according totheCITES Convention
Source: Government ofCyprus.
17. Since 1January 1996, thescope oftheimport licensing system hasbeensignificantly reduced.
Withtheexception ofoneagricultural product, groundnuts, toprotect localproduction, import licensing
onindustrial products isusedtoensure thatimports meethealth, safety andenvironmental considerations
(Table III.4). Notified asatrade-related investment measure totheWTO, since1992, importers have
topurchase predetermined quantities oflocally grown groundnuts before theyareallowed toimport
groundnuts.7
7Thismeasure hasbeennotified under Article 5:1oftheAgreement onTrade-Related Investment Measures
(G/TRIMS/N/1/CYP/2, 15November 1995). Developing countries have fiveyears from theentry intoforce
oftheWTO Agreements tophase outtrade-related investment measures.WT/TPR/S/25 Trade Policy Review
Page 30
18. Thelicensing system isadministered bytheDepartment ofTrade andisbased ontheImports
Regulation Law49of1962andamendments 7(1967) and39(1)and82(1)of1994. Products subject
tolicensing aredesignated through Orders bytheMinistry ofCommerce, Industry andTourism,
determined viaofficial Decision andpublished intheOfficial Gazette. Licences arenormally granted
onrequest bytheimporter, ifallconditions havebeenfulfilled. Although noimport licence isrequired,
foragricultural products, aphytosanitary orveterinary certificate maybeneeded; forthose onwhich
marketing boards maintain soletrading privileges, permission must beobtained.8
Table III.4
Products requiring animport licence
Cyprus tariff
codeDescription ofproduct Notified under
GATT Article
27.01 Coal, briquettes, ovoids andsimilar solid fuels manufactured from coal XX(b)
27.02 Lignite, whether ornotagglomerated XX(b)
27.09 Petroleum oilsandoilsobtained from bituminous minerals (crude oil) XXI(b)
27.10 Petroleum partly refined, including topped crudes; motor spirit kerosene, jetfuel,white
spirit, diesel oil,fueloilandresidual fueloilsXXI(b)
27.11 Petroleum gases andother gaseous hydrocarbons XXI(b)
27.13 Petroleum bitumen andother residues ofpetroleum oilsorofoilsobtained from
bituminous mineralsXXI(b)
28.04 Oxygen andhydrogen XX(b)
28.10.28.40 Boric acid, oxides orboron andborates andperoxoborates salts XX(b)
29.01-29.42 Organic chemicals, except naphthalene (heading No.29.02), saccharin
(heading No.29.25), vitamins andhormones (heading Nos. 29.36 and29.37),
glycosides, natural orreproduced bysynthesis (heading No.29.38), vegetable alkaloids
(heading No.29.39) andantibiotics (heading No.29.41)XX(b)
34.02 Surface-active preparations andwashing preparations XX(b)
40.11-40.12 Solid orcushion rubber tyres formotor vehicle asfollows:
(a)without indication ofthemark orthename ofmanufacturers, orbearing altered or
notclear inscriptions;
(b)usedtyres including retreaded andregrooved;
(c)newtyres which aredescribed orwiththeindication Substandard, Regraded,
D/A, Second orThird Quality, Maximum Speed orsimilar description or
indications which denote thattheyarefaulty.XX(b)
56.08 Fishing nets, andnetsusedforcatching game andwildbirds XX(b)
72.13-72.15 Ironbarsforbuilding XX(b)
73.11 Containers forcompressed orliquefied gas XX(b)
84.02 Steam boilers XX(b)
84.14 Airorother gascompressors withairchamber andairchambers XX(b)
84.23 Weighing machinery, scales andweights ofallkinds andparts thereof XX(d)
84.24 Fireextinguishers XX(d)
85.04 Liquid transformers XX(b)
85.35 Lighting arresters XX(b)
87.08 Wheels withusedrubber tyres XX(b)
90.09 Photocopying apparatus except black andwhite XX(d)
93.03 Special firearms forhumane killing ofanimals XX(b)
Source: Ministry ofCommerce, Industry andTourism.
8Animport licence isvalid foroneyearandisnottransferable. Theimport licence must bepresented to
thebank ifanycredit facilities aretobegranted; there isalicensing feeof£C3forevery clearance ofgoods.Cyprus WT/TPR/S/25
Page 31
(vi) State trading
19. Justunder 3percentoftheeconomically active population isemployed bysemi-government
organizations. These include theElectricity Authority ofCyprus, theCyprus Telecommunications
Authority andanumber ofmarketing boards operating inthefarmsector.9Marketing boards are
compulsory andbinding onallproducers and/or products covered bytheunderlying legislation.10The
operating costs ofthemarketing boards arebornbytheproducers, except fortheGrain Commission
which isdirectly subsidized bytheGovernment -operating expenses amounted to£C7.8million
in1995.11Theirfunctionsinclude:theregulationofsupply,themaximizationorstabilizationofearnings
toproducers andthedisposal ofsurpluses forgrains, potatoes, carrots, beetroot, olive oil,raisins,
milkandwine(Chapter IV(2)(ii)). TheGrain Commission isthesoleimporter ofcereals andthePotato,
andCarrot andBeetroot Marketing Boards aresoleexporters oftheirrespective products, although
private traders mayseekpermission toexport. TheCyprus Vines Commission andtheCyprus Milk
Industry Organization arethesolebuyers ofgrapes andmilk, respectively.
(vii) Countertrade
20. TheGovernment isnotaware ofanycountertrade deals currently taking place. Intheevent
ofcountertrade transactions between Cypriot andforeign companies, prior approval oftheCentral
Bank isrequired forexchange control purposes.
(viii) Standards andother technical requirements
21. TheCyprus Organization forStandards andQuality Control (CYS) hasbeen inexistence
since 1976, when italsojoined theInternational Organization forStandardization (ISO).12Operating
under theauspices oftheMinistry ofCommerce, Industry andTourism, itisgoverned byaBoard
whose members, representing industry, consumers andthepublic sector, areappointed bytheCouncil
ofMinisters.
22. Cyprus hasabout 200local standards, which havebeendrafted byTechnical Committees;
moststandards arevoluntary, butsomearecompulsory, andcould beconsidered asconsumer protection
regulations,viz.concerningspecificationsforfood(e.g.milk)productsforhealthreasons.13Compulsory
standards apply tobothlocally produced andimported goods andservices. Inaddition tolocalstandards,
Cyprus hasissued 800international orEuropean standards, based onComité européen denormalisation
(CEN), European Telecommunications Standards Institute (ETSI) ortheISO. With assistance from
CYSonitsimplementation, several dozen companies haveadopted theQuality Assurance Management
Systems ISO9000. Seven manufacturing companies havetheirproducts registered under theProduct
Certification Scheme, dating from 1980, which certifies, afterindependent assessment byqualified
CYS personnel, thatmanufactured goods consistently comply withproduct standards.
9Theboards ofdirectors ofsemi-government organizations, established bylawtoprovide public services
andrestricted intheir pricing policies, areappointed bytheCouncil ofMinisters oftheRepublic.
10Under EClaw(Council Regulation 1035/72), monopolies must bedissolved; statutory organizations will
besubstituted bynon-statutory producer organizations.
11G/STR/N/1/CYP, 17October 1995.
12CYS istheenquiry point notified totheWTO 'sTBTCommittee. Cyprus hasadhered totheSanitary and
Phytosanitary (SPS) Agreement since 1January 1997.
13TheConsumerProtectionServiceensurestheimplementationofcompulsorystandardsbyinspectingproduction
plants andshops.WT/TPR/S/25 Trade Policy Review
Page 32
BoxIII.1 Standards andregulations
Aproduct standard may bedefined asaspecification orsetofspecifications thatrelates tosome
characteristic ofaproduct oritsmanufacture. TheWTO Technical Barriers toTrade (TBT) Agreement
specifies that"technical regulations" allude tocompulsory standards, while "standards" arevoluntary.
Standards andregulations normally relate toproduct "compatibility" or"quality", including performance.
Conformity assessment refers totheprocess bywhich products areevaluated forcompliance with
standards andregulations andencompasses testing andcertification. Difficulties insecuring approval for
aproduct mayresult from differences ofopinion about scientific evidence orfrom manipulation ofthe
process byprotectionist interests. Regulatory heterogeneity willsometimes emerge inresponse to
genuine international variations inthepreferences ofcitizens, towhich asolution isthemutual
recognition oftesting orconformity assessment agreements. TheTBT Agreement requires signatories to
useinternational standards except when theywould beineffective orinappropriate tofulfil legitimate
national objectives, although inprinciple thisrequires justification ontechnical orscientific grounds.
23. Aprocess ofharmonization ofCypriot standards withthose oftheEUwasinitiated in1990
andcompleted recently.
24. Testing procedures performed intheexporting country arerecognized iftheyareperformed
according tointernational orEuropean standards andcertificates areissued byagovernment department
orrecognized independent testing authority. TheCYSisintheprocess ofestablishing alaboratory
accreditation scheme, based onEN45000.14Assuchitmustbeindependent ofGovernment andexpects
toachieve fullautonomy in1997, alawtothiseffect hasbeendrafted.
25. Labelling requirements areincluded intheTrade Description Law(5/1987) which alsoprohibits
false ormisleading description ofgoods. Specific legislation exists forfoodstuffs (CYS 33)and
dangerous substances (199/1991) aswellaspharmaceuticals, pesticides, fertilizers, andpetroleum
products. Labelling onfoodproducts isstandard information, including netcontents, listofingredients
indescending order ofproportion andshelflife.Additives mustbestipulated withtheEuropean "E"
number.
(ix) Government procurement
26. Adraftlawgoverning public procurement, drafted bytheCouncil ofMinisters, hasrecently
beensubmitted totheHouse ofRepresentatives. Cyprus hasnotsigned thePlurilateral Agreement
onGovernment Procurement.
27. DepartmentalTenderBoardsdealwithtendersnotexceeding£C10,000,andMinisterialTender
Boards dealwithtenders under £C30,000. Above acertain threshold (£C30,000), theMain Tender
Board, within theMinistry ofFinance, hastherighttoapprove tenders upto£C1million.15Tenders
14EN45000 series specifies thecriteria fortheoperation andaccreditation oflaboratories aswellasfor
accreditation bodies.
15TheMain Tender Board consists ofthePresident (theAccountant General), arepresentative ofeach of
theMinistries ofFinance; Commerce, Tourism andIndustry; thePlanning Bureau; theMinistry concerned
andthePurchasing andSupply Department, aseparate department within theMinistry ofFinance. Members
maynotserve formore thantwoyears.Cyprus WT/TPR/S/25
Page 33
exceeding £C1million are referred tothe Ministerial Committee for Tenders.16
Semi-government organizations havetheirowntender boards which follow similar guidelines; their
purchases havebeenestimated at£C148million in1995.
28. Decisions bydepartmental orministerial Boards require unanimity, otherwise thedecision is
forwarded totheMain Tender Board. Fortenders over£C500,000 aunanimous voteisrequired by
theMain Tender Board; failing this,thedecision ishanded overtotheMinisterial Committee. Within
theMinisterial Committee, decisions aretaken bymajority vote; ifnomajority votecanbereached
thematter issubmitted totheCouncil ofMinisters.
29. Tenders arepublicized bythefollowing methods: publication intheOfficial Gazette, posting
onthetender board oftheinterested Ministry ordepartment, publication inthelocal press and
notifications senttoprobable bidders, chambers ofcommerce anddiplomatic missions. Tenders are
offered internationally depending onthesizeoftheproject andthetypeofgoods orservices required.
Submission ofbidsforpublic tenders maybemade attheearliest 21daysfromthedateofpublication;
andforinternational tenders, 42days.
30. Allgovernment agencies arerequired bylawtomake purchases ofsupplies orservices through
opentenders except inthefollowing cases:
- ifpurchases ofgoods orservices arelessthan£C200;
forpurchases upto£C2,000, written quotations mayberequested fromarepresentative number
ofsuppliers;
- selective tendering through written quotes fromalimited number ofprospective tenderers may
beusedforemergency reasons. Foramounts between £C2,000 and£C50,000, approval
oftheAccountant-General isrequired; iftheorder isover£C50,000, itissubject toapproval
bytheMinister ofFinance;
- when notenders arereceived orwhen theMain Tender Board suspects collusion;
- when prices submitted bysuppliers arethesame;
- where there isonlyoneknown supplier, inwhich casesingle tendering maybeallowed with
theapproval oftheMain Tender Board; and
- forcertain services, atwo-envelope system isused: onecontaining thetechnical proposals and
theother thefinancial bid;prequalification ofthetechnical proposals isaprerequisite forthe
opening ofthefinancial bid.
Theauthorities estimate thatcompetitive tendering covers 95percentoftotalpurchases.
16ThisCommittee iscomposed oftheMinister ofFinance, theMinister ofCommerce, Industry andTourism,
theMinister ofCommunication andWorks, theMinister ofJustice andPublic Order, theMinister ofDefence
andtheMinister oftheMinistry concerned.WT/TPR/S/25 Trade Policy Review
Page 34
31. Inveryexceptional cases, where thisisprovided byspecific legislation, thetender maybe
limited tolocalfirms, andforeign firms injointventure withlocalcompanies. Forlocally produced
goods andservices, protection against foreign competition, effected bya20percentmark-up onthe
c.i.f. value, isallowed provided thatlocalvalue added amounts toatleast25percent, verified by
anauthorized public accountant. Forcertain services e.g.development andimplementation of
computerizedsystems,foreignconcernsmustsubmittheiroffersinjointventurewithalocalenterprise.17
32. Dataisnotavailable ontotalpublic procurement expenditure orontheproportion ofcontracts
filled byforeign suppliers.
(x) Anti-dumping andcountervailing dutyactions
33. Existing anti-dumping legislation isbeing brought intoconformity withtherelevant provisions
oftheWTO Agreement andEUCouncil Regulations No.3283/94 and3284/94, noevidence ofdumping
haseverbeenfound.
(xi) Safeguard actions
34. TheCustomsandExciseLaw1996/109(I)/95(PartII,Para.3sub-paragraph4)givestheCouncil
ofMinisters authority toincrease theadvalorem orspecific dutybyuptofivepercentage points in
order toafford protection. Thisprovision hasnotbeenimplemented forthelasttwenty years.
35. In1995, Cyprus notified under Article 11.2oftheAgreement onSafeguards thatitmaintained
restrictions onanumber ofproducts (considered sensitive andeligible forspecial treatment under the
Association Agreement withtheEuropean Union) through asystem ofglobal quotas orprohibitions
carried outthrough discretionary import licensing (Table III.5).18In1996, following theelimination
ofquotas inaccordance withtheUruguay Round Agreements, the"grey-area" measures wereconverted
tosurcharges (calculated toafford industry acomparable level ofprotection) which inturnwere
incorporated intotheCustoms andExcise Tariff. These willbeabolished by1January 1998 in
accordance withtheCustoms Union Agreement withtheEuropean Union. With theadoption ofthe
Common Customs Tariff, surcharge onmostofthese products willbeeliminated withtheexception
ofcement, chipboard andwater pumps.
17ITR(1993).
18ThesewereoriginallynotifiedtotheImportLicensingCommitteeinWT/LIC/N3/CYP/1,27September1995.
Article 11.2oftheSafeguards Agreement obliges Members tophase outanysafeguard orgrey-area measures
notinconformity withtheAgreement within fouryears oftheentry intoforce oftheWTO.Cyprus WT/TPR/S/25
Page 35
Table III.5
Industrial products subject tosafeguards
H.S. heading Product
25.23 Cement
28.11 Carbon dioxide (CO2)
36.05 Matches
40.15aRubber gloves (kitchen gloves)
44.10 Melamine surfaced chipboard
44.12aBeech veneered chipboard
48.19.30-48.19.40 Two-ply ormore paper bags
48.19.10aCarton boxes
58.02, 63.02, Terry towelling fabrics/hand, faceandbathtowels
61.15.11-61.15.12,
61.15.19 Panty hoseandtights
61.15.20, 61.15.91-
61.15.93, 61.15.99 Stockings andsocks
63.05 Sacks andbagsofpolypropylene
64.01-64.05 Footwear
69.05 Roofing tiles
73.10 Cans (forthepacking ofpaints only)
73.17 Wire nailsofironorsteel, except nailsofsteelwhich arenailed byuseofspecial pistol
73.18 Woodscrews, chipboard screws
76.04 Aluminium bars, rodsprofiles, etc.
83.09 Pilferproof corks
83.11 Electrodes
84.13 Water pumps
(a)centrifugal deep-well turbine pumps
(b)centrifugal surface pumps
(c)centrifugal deep-submersible pumps
84.21 Air-and oilfilters formotor vehicles
84.74aConcrete mixers
85.07 Electric accumulators forvehicles
93.06 Empty cartridges
Note: From 1January 1996, asurcharge incorporated inthecustoms duties replaced thelicensing system. These products aregoverned
bytariff quotas forimports from theEU. Forout-of-quota imports there isbothapreferential andm.f.n. rate.
a Quota abolished asof1January 1996.
Source: G/SG/N/5/CYP/Rev.1.
(3) Measures Directly Affecting Exports
(i) Registration requirements
36. There arenoregistration requirements forexporters.
(ii) Export subsidies
37. Asnoted inChapter II(2), intheUruguay Round, Cyprus wasoneofthefewdeveloping
countries tomake commitments onthereduction ofexport subsidies forfarmproducts. Product-specific
export subsidies of£C9million, paidmainly onexports ofvegetables, fruitandwine, willbereduced
by24percentfromthebaseperiod totheendoftheimplementation period (2004) (seeChapter IV(2)).WT/TPR/S/25 Trade Policy Review
Page 36
(iii) Taxanddutyconcessions
38. Since 1990, netearnings fromexports ofmanufactured goods, except forpetroleum products,
havebeentaxed at50percentofthenormal rate.19In1993, thetaxbenefits from thisconcession
amounted to£C485,323.20
39. Asystem ofdutydrawback onexported goods hasbeeninforce since 1962. Goods eligible
fordutydrawback onexport areprescribed intheFifth Schedule oftheCustoms andExcise Tariff;
dutydrawback isavailable onallinputs tolocalmanufacturing.21Drawback ismade onduties and
levies paidonmaterials usedinthemanufacture ofexports provided that(i)suchduties were paid
within thepreceding three years, (ii)theapplication issubmitted bythe15thofthemonth following
themonth inwhich exports weremade and(iii)therefund amounts toover£C50.Customs andExcise
administers thedrawback system; itnormally takesfourweeks toobtain arefund -VATisnotrefunded.
Total refunds ofduties andthetemporary refugees levyhavedeclined steadily from £C6.8million
in1991to£C2.9million in1995attributable tolower duties andalower levelofexports. Thisfinancial
dataincludes refunds onimports bythose entitled toduty-free importation ofgoods; thisshare is
estimated at10percentofthetotal.
(iv) Export insurance
40. TheExport Credit Insurance Service, introduced in1975, provides insurance cover forcertain
manufactured goods. Categories ofgoods covered aredecided bytheMinistry ofCommerce, Industry
andTourism. Atleast25percentofthevalue ofthegoods musthavebeenadded inCyprus (e.g.export
price(f.o.b.) -imported content (c.i.f.) 25%). This"post-shipment" insurance policy, administered
bytheTrade Section intheMinistry ofCommerce, provides cover against 90percentoflosses due
tocommercial andpolitical risksforexports secured byanything lessthananirrevocable letterofcredit.
TheMinistry reserves therighttodecline tocover salestocertain buyers andtowithdraw cover for
future exports toparticular buyers orcountries ifwarranted byeconomic conditions.
41. Risks covered bytheinsurance schemes include thefailure ofthebuyer topayforthegoods
ortotakedelivery, cancellation ofimport permit, losses arising fromcivilwarorother hostilities and
from natural disasters. Thepremium attherateof10cents per£C100ofannual exports, witha
minimum premium of£C25andamaximum of£C250,ispayable atthetimethepolicy isissued
andoneachannual renewal.22Between 1975and1996, insurance cover of£C504million wasprovided
bythescheme. Annual membership inthescheme averages 100participants.
19ThisprohibitedsubsidyshouldbeeliminatedwithineightyearsoftheentryintoforceoftheWTO(Agreemen t
onSubsidies, Article 27).
20G/SCM/N/3/CYP, 19November 1996.
21TheCouncil ofMinisters mayaddto,delete from orvarytherates orconditions ofdrawback onitems
listed intheFifth Schedule byOrder published intheOfficial Gazette.
22Afurtherpremiumatarateper£C100dependingonthe(financingpayment)terms,willbepayablemonthly
onthevalue ofbusiness done.Cyprus WT/TPR/S/25
Page 37
(v) Export promotion
42. IntheMinistry ofCommerce there areanumber ofsections, within theTrade Service
Department, concerned withexport promotion. Activities include participation ininternational exhibits
andtrade fairsandthesponsoring ofcompanies; thepromotion ofagricultural exports service, in
collaboration withtheMinistry ofAgriculture, performs market studies, collects market information
anddeals withmatters relating totheEU'sCommon Agricultural Policy. TheMarket Research and
Trade Information Section which coordinates theactivities oftheforeign-based Cyprus Trade Centres,
ofwhich there arefourteen, alsoadministers ascheme thatfinances exporters toconduct theirown
market research; thisprovides assistance ofupto£C500tocover thecostoftheairticket and
50percentofthecostofparticipation inaninternational trade fairuptoaceiling of£C1,000.23
Approximately £C800,000 isspent annually onexport promotion activities.
(vi) Freetrade zones
43. Free-trade zones inCyprus, intended topromote export-oriented manufacturing, aregoverned
bytheFreeZones Lawof1975, theFreeZones (Administration andControl; Customs) Regulations
of1981. Thesole200-acre free-trade zone (FTZ), islocated nearLarnaca. Land isleased for
thirty-three years withtheoption forrenewal; annual rentiscurrently $880 per1,000 sq.m. which
covers development costs andservices. TheMinister ofCommerce, Industry andTourism, after
consultationwiththeMinisterofFinance,hassolepowertograntauthorizationforcarryingoutactivities
within thefreezone. Criteria considered forgranting apermit include: viability, environmental impact,
production methods (preferably advanced technologies), useoflocal rawmaterials andequipment,
value added andemployment generated, andtheimpact onlocalindustry. Companies located inthe
freezoneareeligible forduty-free imports ofinputs destined forexport production. Themainactivities
intheLarnaca FreeZone aretheproduction oftextiles, kitchen equipment, wooden andelectrical
products. However, exports fromthefreezoneaccount forlessthan1percentofCyprus 'totalexports
ofgoods.
44. Ascheme toestablish industrial estates inorder toassist industrial growth byproviding the
necessary infrastructure wasintroduced in1965. Recent datashow that425manufacturing industries,
in110estates, benefit fromthisscheme. These companies produce goods withthehighest localvalue
added inrelation tooutput. Thescheme hascost£C18million from itsinception in1975 to1996.
Manufacturing companies areprovided withlandonleaseandinfrastructure services (electricity, water
andtelecommunications service) atgovernment expense.
(4) Other Trade-Related Policies
(i) Adjustment assistance
45. Inaddition tothedirect export assistance mentioned above, anumber ofgrant andsubsidy
schemes, some introduced asrecently as1996, areavailable tomanufacturers forrestructuring and
technological upgrading, inorder toimprove competitiveness. Forexample, partial grants aremade
available forcompetitiveness enhancement studies andaresource center fortheclothing industry has
been created. In1996, outlays were £C290,000 fortheformer and£C200,000 forthelatter
(Table III.6Assistance toIndustry).
23Cyprus Trade Centres currently existinthefollowing countries: Austria, Belgium, Czech Federal Republic,
France, Germany, Greece, Israel, Japan, Kuwait, Russian Federation, Sweden, United Kingdom, United Arab
Emirates andtheUnited States.WT/TPR/S/25 Trade Policy Review
Page 38
Table III.6
Assistance toindustry
Description ofscheme Elements PeriodAnnual outlay
(1996)
(£C'000)Cumulative outlay
(£C'000)
Grant forestablishment of
Resource Center forclothing
IndustryClothing Industry
Association1996-2000 200 694
Grant toencourage
manufacturing inrural areas1991 400 1,300
Establishment ofIndustrial
EstatesLeasing oflandand
provision ofinfrastructure
atreasonable rates1965 ... 9,898
Industrial Freezone Leasing oflandat
reasonable rates,
taxincentives1975 ... 1,023
Anti-pollution Grant of30percentofthe
value ofpollution control
tomanufacturing firms
established before 1993.1994-1999 400 536
Handicrafts 1992 170 530
Industrial Restructuring and
Technological UpgradingGrant ofupto40percent
forcompetitiveness
enhancement studies1992 290 900
Investment inmachinery and
equipmentInterest ratesubsidy for
purchases1996 ... ...
Research andDevelopment 1996 ... 800
Export marketing 50percentofcostofstand
inInternational Trade Fair
under £C1,000... 65 445
Duty relief forselected
industriesFood, clothing, chemical ... ... ...
Promotion oflocally
manufactured goodsGrants ofupto50percent
ofadvertising campaign by
anindustrial association1994 70 96
... Notavailable.
Source: Ministry ofCommerce; andG/SCM/N/3/CYP, N/16/CYP, 19November 1996.
(ii) Assistance forresearch anddevelopment
46. Themainobjective ofresearch andtechnology policy istoenhance theability oftheeconomy
todevelop, select, transfer andimplement existing technologies. ThePlanning Bureau coordinates
research activities inCyprus, providing direct financing, through budget allocations, forprojects
undertaken byGovernment institutions. Most research projects come under theEuropean Union
programmes andother international cooperation agreements.
47. The1996 Budget provided for£C500,000 tofinance theparticipation ofCypriot research
institutions inEUprogrammes; £C100,000 fortheCyprus-Greece cooperation agreement and
£C200,000 asaninitial endowment forthegovernment-sponsored Foundation forthePromotion of
Research.TheFoundation,setupin1995,advisestheGovernmentonR&Dissuesandprovidesresearch
grants totheprivate andpublic sectors.Cyprus WT/TPR/S/25
Page 39
48. TheInstitute ofTechnology, anon-profit institution, wasestablished in1991 topromote
technological upgrading ofthemanufacturing sector. Ithasanetwork ofaccredited consultants and
associates toperform strategic studies relating tothestrengthening ofcompetitiveness inbranches of
manufacturing.
(iii) Taxincentives
49. Netprofits ofaresident company orregistered branch ofaforeign company aretaxed
at20percentupto£C40,000 and25percentabove £C40,000. Principal taxincentives include
investment allowances upto40percentforplantandmachinery andafive-year period tocarry forward
taxlosses. The1996 Budget introduced a20percentgrant uptoaceiling of£C150,000, fornew
machinery andequipment purchased foruseinmanufacturing.
(iv) Interest ratesubsidies
50. InApril 1996 aninterest ratesubsidy onloans forinvestment inmachinery andequipment
foruseinmanufacturing wasintroduced. Agricultural credit isnormally provided atbelow market
ratesviacooperative banks.
(v) Price controls
51. Price controls onbasic consumer goods were originally imposed during the1974 oilcrisis,
torestrain inflationary pressures. Until 1994, theprices of62locally produced andimported consumer
goods were setbytheMinistry ofCommerce, Industry andTourism. Following studies bythe
Competition andConsumer Protection Service, which regulates prices where itdetermines that
competition isimperfect, thenumber ofgoods under price control wasreduced to41in1994, to22
inMarch 1996andto14inFebruary 1997, withaviewtoabolishing pricecontrol bytheendof1998.
Locally produced goods aresubject tomaximum prices whereas forimported goods maximum profit
margins areset(Table III.7). Furthermore, prices ofpetroleum products andpharmaceuticals are
controlled, thelatter inaccordance withEUdirectives.WT/TPR/S/25 Trade Policy Review
Page 40
Table III.7
Products subject toprice control
Description ofgoods Maximum retail prices/Profit Margins asat25/9/96
Pork meat £1.35kg.
Poultry £1.16kg.
Bananas 25percentonwholesale margin
Eggs £0.57/dozen
Potatoes £0.30kg.
Common bread £0.40kg.
Pasteurized milk £0.35/litre
Beans imported 10percentmargin onwholesale price
Greek coffee £0.93/200 gr.
Cement:
(a)bagged
(b)bulk£27.50/tonne
£24.35/tonne
Wood -variety ofsizes andlengths.
Mostly production of:
(i) chipboard covered withmelamine
white 18mm
(ii) chipboard covered withveneers
18mm-beech
(iii) uncovered chipboard 16mm
(double face)£170.00/m3
£231.00/m3
£105.00/m3
Agricultural pesticides 20percentmargin onstore cost
Fertilizers 16percentmargin onstore cost.
Macaroni £0.35/454 gr.
Cigarettes
Category B
(i) Craven "A"
(ii) Senior Service, Crown
Rothman Royals, Players, Pallas
Category A
(ii) Consulate, Rothmans, Dunhill,
Lucky Strike£0.62/packet of20
£0.62/packet of20
£0.83/packet of20
Petroleum products
(i) Gas
(ii) Gasoline super
(iii) Gasoline regular
(iv) Diesel oil
(v) Kerosene
(vi) L.F.O.£210.00/tonne
£0.378/litre
£0.357/litre
£0.124/litre
£0.124/litre
£0.07/litre
Source: Government ofCyprus.
(vi) Competition policy
52. TheLawonProtection ofCompetition (207/89), reproducing Articles 85and86oftheTreaty
ofRome, hasbeeninforce since June8,1990.24Thecurrent legislation outlaws import cartels, but
24Article 85prohibits agreements thatprevent competition toanappreciable extent; Article 86prevents abuse
ofadominant position, affecting trade between Member States. Exceptions toArticle 85apply toagreements
necessary fortheattainment oftheobjectives oftheCAP andpractices oragreements thatcontribute toimproving
theproduction ordistribution ofgoods orpromoting technical oreconomic progress. GATT, (1993), p.104.Cyprus WT/TPR/S/25
Page 41
allows export cartels inorder toenhance exports.25Theaimofcompetition policy inCyprus isto
consolidate theexisting legislative framework inorder toinclude allsectors ofeconomic activity,
includingtheoperationofpublicenterprises,andtomakeitcomparabletotheEUregulatoryframework.
Atpresent, domestic lawdoesnotexplicitly allow block exemptions, along thelinesofEUcompetition
laws, butsimilar exemptions (12inall)havebeencreated through Orders issued bytheCouncil of
Ministers.26
53. Competition provisions areenforced bytheCommission fortheProtection ofCompetition,
whose seven members areappointed bytheCouncil ofMinisters; atleastthree members ofthe
Commission mustbefromtheprivate sector. Theresponsibility oftheCommission, assisted bythe
CompetitionandConsumerProtectionDivisionintheMinistryofCommerce,istoinvestigaterestrictions
ordistortions tocompetition andtoexamine applications withaview togranting exemptions from
thelaw. TheDivision, acting asSecretariat totheCommission, maintains aregister ofapplications
forexemptions, anddecisions oftheCommission.
54. ThirteencomplaintswerelodgedwiththeCommissionin1995andfourinvestigationsconcerning
violations initiated. Onecase, involving therefusal tosupply andthefixing ofprices byapre-mixed
concrete partnership, wasresolved through aninterim order issued bytheCommission.
55. ALawRegardingtheControlofConcentrationsbetweenEnterprises,withnosectoralexceptions,
based ontheECMerger Control Regulation 4064/89 isexpected tocome intoeffect in1997. Under
theproposed legislation, companies withanannual turnover ofmore than£C2million would need
permission toacquire ormerge withcompeting businesses; legislation would notberetroactive.
(vii) Protection ofintellectual property rights
56. Laws toprotect intellectual andindustrial property rights inCyprus areextensive andmeasures
todealwithcases ofinfringement andcounterfeit havebeenenforced. Most ofthemaininternational
Conventions(Paris,Berne,Universal,Geneva,TradeMarksLawTreaty)havebeenratifiedbyCyprus.27
TheRegistrarforTradeMarksandPatents,intheMinistryofCommerce,IndustryandTourism,handles
registrations oftrade marks andpatents andimplements relevant legislation.
57. Trade mark registration isvalid for14years andisrevised every seven years. Opposition
canbefiledwithin twomonths ofadvertisement. In1995, 1,762 tradeorservice marks wereregistered
inCyprus. Cyprus isadopting newinternational directives regarding registration procedures according
totheTrade Marks LawTreaty.
58. Aforthcoming Patent Bill,toupdate thatinherited fromtheUnited Kingdom, willratify the
European Patent Convention andthePatent Cooperation Treaty andbring patent lawintoconformity
withtheWTO Agreement onTrade-Related Aspects ofIntellectual Property Rights (TRIPS), bycreating
anational registry, registration through international search, andnewprocedures. Thenewlawwill
provide forcompulsory licensing ifthepatent isnotusedortheproduct isnotimported. Cyprus is
25EUcompetitionlawdoesnotprohibitarrangementsthatimpingeonlyonthirdmarketsbutwouldnotcondone
export cartels thatcould have repercussions ontheEUmarket.
26Theseincludeexclusivedistribution,exclusivepurchasing,patentlicensing,franchizing,know-howlicensing,
motor vehicle distribution andservicing, research anddevelopment, insurance sector, computerized reservation
systems, roadandmaritime transport agreements.
27IP/N/1/CYP/1, 30January 1997. Cyprus hasprovided advance notification ofitslawsandregulations
under Article 63.2 oftheTRIPS Agreement.WT/TPR/S/25 Trade Policy Review
Page 42
alsodrafting legislation toadopt theUPOV International Convention fortheProtection ofNewVarieties
ofPlants.
59. Copyright inCyprus isautomatic andnoregistration isneeded. TheCopyright Law
(59/76, amended in1977 and1993) protects theowner (licensee) from unauthorized copying, sale,
anddistribution ofscientific, artistic, musical andliterary works, audio andvideo recordings and
computer programs, industrial designs andlayouts forintegrated circuits.
60. Authorized importers aswellasproperty rights holders maybring cases ofinfringement to
courtandCustoms mayseizeinfringing goods exofficio. Although noexclusive dealerships aregranted
inCyprus, parallel imports areallowed, inprinciple. Trade mark andpatent rights holders mayprevent
unauthorizedparallelimports.Impositionoffines(maximum£C1,500)and/orimprisonment(twoyears)
areinscribed inthelawasenforcement measures; thelatter hasnotbeenusedtodate. Counterfeit
goods aretypically destroyed byCustoms. Inthelastfewyears, according totheauthorities, various
measures havebeentaken toenforce protection: certain video shops selling pirated cassettes havebeen
closed down orbeenforced tostoppurchasing frompirates. Exports ofmagnetic audio-visual tapes
aresubject tocontrol toprotect copyright andavoid trade incounterfeit goods.
61. Cypriot lawprohibits imports offalsely marked goods andmisleading descriptions. Atpresent,
geographical indications cannot beregistered astrade marks butratification oftheLisbon Agreement
andnational legislation onappellation oforigins ispending.
(viii) Environmental policies
62. Adraftbillontheprotection oftheenvironment, theFramework LawontheEnvironment,
incorporates thepolluter-pays principle andregularizes theprocess ofenvironmental impact assessment.
Adhocenvironmental impact assessment, mainly based onEUDirective 337/85, iscarried outon
major public development projects andpriortotheestablishment ofanumber ofindustries, e.g.mining
andquarrying, roadworks, construction ofpower plants, aquaculture projects andwaste treatment
facilities.
63. TwoLaws fortheProtection oftheEnvironment wereenacted in1991, onereferring tothe
Control ofthePollution oftheWaters andtheother totheControl ofthePollution oftheAtmosphere
ofCyprus. TheWater Pollution Control Lawrequires industries toapply foradischarge consent from
theMinistry ofAgriculture, Natural Resources andEnvironment. Approval maybegranted orrefused
depending onthequantity, typeofeffluent andmethod ofdisposal. Thetreated water specifications
differ fromcasetocase,depending onthemethod ofdisposal, andthetypeofreceptor buttheygenerally
meetvarious international guidelines andcriteria, suchasthose oftheEUDirective onurban wastewater
treatment, theWHO Guidelines forWater Quality andforirrigation water. Theaimistousetreated
water uptotertiary standards forirrigation. Once discharge consent isgranted, theMinistry ofLabour
andSocial Insurance mayimpose additional conditions withrespect toinstallations andtechnical
specifications ofplantandequipment needed forthewastewater treatment facilities sothattherequired
specifications aremet.According totheLawoftheControl ofAtmospheric Pollution, certain industrial
processes, including power plants, cement plants, refineries, waste incinerators, andothers, should
apply forregistration andpermit; conditions areimposed onthese processes regarding measures to
betaken forthecontrol ofemissions totheair.Themaximum emission levels andthemaximum allowed
concentrations, which areprescribed onthepermits, aregenerally inlinewithrelevant EUDirectives
orwithlegislation inwestEuropean countries. TheAirQuality Objectives, which havebeensetby
theMinister ofLabour andSocial Insurance, arealsoinlinewiththerelevant EUAirQuality Directives.
64. Cyprus applies theprovisions oftheBasel Convention onHazardous Wastes, theCITES
Convention andtheMontreal Protocol. Inaddition, anumber ofproducts aresubject toimport licences
toprotect theenvironment andhavebeennotified under Article XX(b)(seeTable III.3).