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COUNCIL REGULATION (EC) No 866/2004 
of 29.4.2004 
 
on a regime under Article 2 of Protocol  No 10 of the Act of Accession  
 
   THE COUNCIL OF THE EUROPEAN UNION, 
 
Having regard to Protocol No 10 on Cyprus of th e Act concerning the conditions of accession of the 
Czech Republic, the Republic of Estonia, the Rep ublic of Cyprus, the Republic of Latvia, the 
Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the 
Republic of Slovenia and the Slovak Republic and the adjustments to the Treaties on which the 
European Union is founded 
1, and in particular Article 2 thereof, 
 Having regard to Protocol No 3 on the Sove reign Base Areas of the United Kingdom of 
Great Britain and Northe rn Ireland in Cyprus 
2 of the said Act of Accession, and in particular 
Article 6 thereof,  Having regard to the proposal from the Commission, 
3 
 
                                                 
1  OJ L 236, 23.9.2003, p. 955. 
2  OJ L 236, 23.9.2003, p. 940. 
3  OJ C  
 
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Whereas: 
 
(4) The European Council has repeatedly underlin ed its strong preferen ce for accession by a 
reunited Cyprus.  Regrettably, a comprehensive settlement has not yet been reached.  In 
conformity with paragraph 12 of the conclu sions of the European Council in Copenhagen, 
the Council on 26 April 2004 outlined its positio n on the current situation on the island. 
 
(5)  Pending a settlement, th e application of the acquis upon accession has therefore been 
suspended pursuant to Article 1( 1) of Protocol No 10, in the areas of the Republic of Cyprus 
in which the Government of the Republic of Cyprus does not exercise  effective control. 
 
(6) Pursuant to Article 2(1) of Pr otocol No 10, this suspension make s it necessary to provide for 
the terms under which the relevant provisions of  EU law shall apply to the line between the 
abovementioned areas and those areas in which the Government of the Republic of Cyprus 
exercises effective control.  In order to en sure the effectiveness of these rules, their 
application has to be extended to the boundary between the areas in which the Government 
of the Republic of Cyprus does not exercise effective control and the Eastern Sovereign 
Base Area of the United Kingdom of Gr eat Britain and Northern Ireland. 
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(7) Since the abovementioned line does  not constitute an external border of the EU, special rules 
concerning the crossing of goods, services and persons need to be established, the prime 
responsibility for which belongs to the Republic  of Cyprus.  As the abovementioned areas 
are temporarily outside the customs and fiscal  territory of the Community and outside the 
area of freedom, justice and secu rity, the special rules should s ecure an equivalent standard 
of protection of the security of the EU with regard to il legal immigration and threats to 
public order, and of its economic interests as far as the movement of goods is concerned.  
Until sufficient information is available with re gard to the state of animal health in the 
abovementioned areas, the movement of animals and animal products will be prohibited. 
 (8) Article 3 of Protocol No 10 e xplicitly states that measures  promoting economic development 
in the abovementioned areas are not precluded  by the suspension of the acquis.  This 
regulation is intended to facili tate trade and other links between the abovementioned areas 
and those areas in which the Government of the Republic of Cyprus exercises effective 
control, whilst ensuring that appropriate sta ndards of protection are maintained as set out 
above. 
 (9) Regarding persons, the policy of the Government of the Republic of Cypr us currently allows 
the crossing of the line by all citizens of the Republic, EU citizens and third country 
nationals who are legally residi ng in the northern part of Cypr us, and by all EU citizens and 
third country nationals who entered the isla nd through the Government Controlled Areas. 
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(7) While taking into account the legitimate c oncerns of the Governme nt of the Republic of 
Cyprus, it is necessary to enable  EU citizens to exercise their rights of free movement within 
the EU and set the minimum rules for carrying out checks on persons at the line and to 
ensure the effective surveillance of it, in or der to combat the illegal immigration of third 
country nationals as well as any threat to public security and public  policy.  It is also 
necessary to define the conditi ons under which third country nationals are allowed to cross 
the line. 
 (8) Regarding checks on persons, this Regulation shoul d not affect the provisions laid down in 
Protocol No 3, and in par ticular Article 8 thereof. 
 (9) This Regulation does not affect in any way th e mandate of the United Nations in the buffer 
zone. 
 (10) Since any change in the policy of the Government  of the Republic of Cyprus with regard to 
the line may pose problems of compatibility with  the rules established by this Regulation, 
such changes should be notified to the Commissi on, prior to their entry into force, in order 
to allow it to take the appropriate initiatives so as to avoid inconsistencies. 
 (11) The Commission should also be allowed to amen d Annexes I, and II to this Regulation with 
a view to responding to changes which may occur and require immediate action, 
 HAS ADOPTED THIS REGULATION:  
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TITLE  I 
GENERAL  PROVISIONS 
 
Article 1  
Definitions 
 For the purpose of this Regulation the following definitions shall apply:  1) the term "line" means:  
 (a) for the purpose of checks on persons, as define d in Article 2, the line between the areas under 
the effective control of the Government of th e Republic of Cyprus and those areas in which 
the Government of the Repub lic of Cyprus does not exercise effective control; 
 
(b) for the purpose of checks on goods, as defined in Article 4, the line between the areas in 
which the Government of the Republic of Cyprus  does not exercise effective control and both 
those areas in which the Government of the Re public of Cyprus exercises effective control 
and the Eastern Sovereign Base Area of the United Kingdom of Great Britain and Northern 
Ireland; 
 
2) the term "third country national" means any pers on who is not a citizen of the Union within 
the meaning of Article 17(1) of the EC Treaty.  
 References in this Regulation to areas in which the Government of the Republic of Cyprus does not 
exercise effective control are to area s within the Republic of Cyprus only. 
 
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TITLE  II 
CROSSING  OF PERSONS 
 
Article 2  
Check on Persons 
 1. The Republic of Cyprus shall carry out checks on  all persons crossing the line with the aim to 
combat illegal immigration of third country nationals and to detect and prevent any threat to public 
security and public policy.  Such checks shall also be carried out on vehicles and objects in the 
possession of persons crossing the line.   
2. All persons shall undergo at le ast one such check in order to establish their identity.  
 
3. Third country nationals shall only be a llowed to cross the line provided they:  
 (a) possess either a residence permit issued by the Re public of Cyprus or a valid travel document 
and, if required, a valid visa fo r the Republic of Cyprus, and 
 (b) do not represent a threat to publ ic policy or public security. 
 
4. The line shall be crossed only at crossing points au thorised by the competent authorities of the 
Republic of Cyprus.  A list of these cro ssing points is laid down in Annex I. 
 
5. Checks on persons at the boundary between the Eastern Sovereign Base  Area and the areas 
not under effective control of the Government of the Republic of Cyprus shall be carried out in 
accordance with Article 5(2)  of Protocol No 3 of the Act of Accession.  
 
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Article 3  
Surveillance of the line 
 Effective surveillance sha ll be carried out by the Republic of C yprus all along the line, in such a 
way as to discourage people from circumventing checks at the crossing points referred to in 
Article 2(4). 
 
TITLE
 III 
CROSSING  OF GOODS 
 
Article 4  
Treatment of goods arriving from the areas 
not under the effective control of the G overnment of the Republic of Cyprus 
 1. Without prejudice to Article 6, goods may be introduced in the areas under the effective 
control of the Government of th e Republic of Cyprus, on condition th at they are wholly obtained in 
the areas not under effective cont rol of the Government of the Republic of Cyprus or have 
undergone their last, substantial, economically justified processing or working in an undertaking 
equipped for that purpose in the areas not under the effective cont rol of the Government of the 
Republic of Cyprus within the meaning of Articles 23 and 24 of Council Regulation (EEC) 
No 2913/92 
1. 
 2. These goods shall not be subject to customs duties or charges ha ving equivalent effect, nor to 
a customs declaration, provided th at they are not eligible for export refunds or intervention 
measures. In order to ensure effective controls, th e quantities crossing the lin e shall be registered.  
                                                
 
1  OJ L 302, 19.10.1992, p. 1.  Regulation as last amended by the Accession Act of 2003. 
 
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3. The goods shall cross the line only at the crossi ng points listed in Annex I and the crossing  
points of Pergamos and Strovilia under the aut hority of the Eastern Sovereign Base Area.  
 
4. The goods shall be subject to the requirements and undergo the checks as  
required by EC legislation as set out in Annex II. 
 5. Goods shall be accompanied by a document issued by the Turkish Cypriot Chamber of Commerce, duly authorised for that purpose by the Commission in agreement with the Government 
of the Republic of Cyprus, or by another body so au thorised in agreement with the latter.  The 
Turkish Cypriot Chamber of Commerce or other dul y authorised body will maintain records of all 
such documents issued to enable the Commission to  monitor the type and volume of goods crossing 
the line as well as their compliance with the provisions of this Article.  6. After the goods have crossed the line into the areas under the eff ective control of the 
Government of the Republic of Cyprus, the compet ent authorities of the Re public of Cyprus shall 
check the authenticity of the document referred to in paragraph 5 and wh ether it corresponds with 
the consignment.   
7. The Republic of Cyprus shall treat the goods re ferred to in paragraph 1 as not being imported 
within the meaning of Article 7( 1) of Council Directive 77/388/EEC 
1 and Article 5 of Council 
Directive 92/12/EEC 2, provided the goods are destined for co nsumption in the Republic of Cyprus.  
 8. Paragraph 7 shall not have any effect on the European Communities' own resources accruing 
from VAT.  
                                                
 
1  OJ L 145, 13.6.1977, p. 1.  Directive as last amended by Directive 2004/15/EC (OJ L 52, 
21.2.2004, p. 61). 
2  OJ L 76, 23.3.1992, p. 1.  Directive as la st amended by Regulation EC No 807/2003 
(OJ L 122, 16.5.2003, p. 36).  
 
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9. The movement of live animals and animal pr oducts across the line sh all be prohibited.  
 10. The authorities of the Eastern Sovereign Base Area may maintain  the traditional supply of the 
Turkish Cypriot population of the village of Pyla  with goods coming from the areas which are not 
under the effective control of the Government of the Republic of Cyprus.  They shall strictly 
supervise the quantitie s and nature of the goods in view of their destination.  
 
11. Goods complying with the conditi ons set out in paragraphs 1 to  10 shall have the status of 
Community goods, within the meaning of Ar ticle 4(7) of Regulation (EEC) No 2913/92. 
 12. This Article shall apply immedi ately as from 1 May 2004 to g oods wholly obtained in the 
areas not under the effective cont rol of the Government of the Re public of Cyprus and complying 
with Annex II.  In respect of ot her goods, the full implementation of this Article shall be subject to 
specific rules that take full account of the particular situ ation in the island of Cyprus on the basis of 
a Commission decision to be adopted as soon as possi ble and at the latest w ithin 2 months of the 
adoption of this Regulation.  For such purpose, the Commission shall be assisted by a Committee 
and Articles 3 and 7 of Council Decision 1999/468/EC 
1 shall apply. 
 
Article 5  
Goods sent to the areas no t under the effective control 
of the Government of the Republic of Cyprus 
 
1. Goods which are allowed to cro ss the line shall not be subject to  export formalities.  However, 
the necessary equivalent documentation shall be provided, in full respect of Cypriot internal 
legislation, by the authorities of th e Republic of Cyprus upon request.  
                                                 
1  OJ L 184, 17.7.1999, p. 23. 
 
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2. No export refund shall be paid for agricu ltural and processed ag ricultural goods when 
crossing the line.  
 
3. The supply of goods shall not be exem pt under Article 15(1) and (2) of 
Directive 77/388/EEC.  
 
4. The movement of goods, the removal or export of which from the customs territory of the 
Community is prohibited or subjec t to authorisation, restrictions, duties or other charges on export 
by Community law, shall be prohibited.  
 
Article 6  
Facilities for pers ons crossing the line 
 
Council Directive 69/169/EEC 1 shall not apply, but goods contai ned in the personal luggage of 
persons crossing the line, including a maximum of 20 cigarettes and 1/4 litre of spirits, shall be 
exempt from turnover tax and excise duty provided  they have no commercial character and their 
total value does not exceed EUR 30 per person.  Exem ptions from turnover tax and excise duty on 
tobacco products and alcoholic beverages shall not be granted to pers ons crossing the line under 
17 years of age. 
                                                 
1 OJ L 133, 4.6.1969, p. 6.  Directive as last amended by Directive 2000/47/EC (OJ L 193, 
29.7.2000, p. 73). 
 
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TITLE  IV 
SERVICES 
1.  
Article 7  
Taxation 
 
To the extent that services are supplied across th e line to and from persons established or having 
their permanent address or usual residence in the areas of the Re public of Cyprus which are not 
under the effective control of the Government of the Republic of  Cyprus, these services shall for 
VAT purposes be deemed to have been supplied or  received by persons esta blished or having their 
permanent address or usual residence in the area s of the Republic of C yprus under the effective 
control of the Government of the Republic of Cyprus. 
 
TITLE V 
FINAL PROVISIONS 
 
Article 8  
Implementation 
 The authorities of the Republic of Cyprus and the authorities of the Easter n Sovereign Base Area in 
Cyprus shall take all appropriate measures in orde r to ensure full compliance with the provisions of 
this Regulation and to prevent any circumvention of them. 
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Article 9  
Adaptation of Annexes 
 
The Commission may, in agreement with the Govern ment of Cyprus amend the Annexes to this 
Regulation. Prior to amending the Annexes, the Commission shall consult the Turkish Cypriot 
Chamber of Commerce or other body duly authorized  by the Government of the Republic of Cyprus 
as referred to in Article 4(5), as well as th e United Kingdom if the Sovereign Base Areas are 
affected.  When amending Annex II the Commission shall follow the appropriate procedure referred 
to in the relevant Community legisla tion relating to the matter being amended. 
 
Article 10  
Change of Policy 
 
Any change in the policy of the Government of th e Republic of Cyprus on crossings of persons or 
goods shall only become effective after the proposed  changes have been no tified to the Commission 
and the Commission has not objected to these cha nges within one month. If appropriate, and after 
consultation with the United Kingdom if the Sove reign Base Areas are a ffected, the Commission 
may propose modifications to this Regulation in or der to secure compatibility of national and EU 
rules applicable to the line. 
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Article 11  
Review and monitoring of the Regulation 
 1. Without prejudice to Article 4(12), the Comm ission shall report to the Council on an annual 
basis, starting not later th an one year after the date of entry into force of this Regulation, on the 
implementation of the Regulation and the situation re sulting from its applicat ion, attaching to this 
report suitable proposals for amendments if necessary. 
 
2. The Commission shall examine in particular the application of Article 4 of this Regulation  
and the patterns of trade between the areas under the effective cont rol of the Government of the 
Republic of Cyprus and the areas not under its eff ective control, including the volume and value of 
trade and products traded.  3. Any member state may request the Council to invite the Commission to examine and report 
back to it within a specified time frame on any matte r of concern arising from the application of this 
Regulation.   4. In the event of an emergency cr eating a threat or risk  to public or animal and plant health, the 
appropriate procedures as set out in EU legislation in Annex II sha ll apply.  In the event of other 
emergencies or where other irregularities or exceptional circumstances arise which require 
immediate action, the Commission may in consulta tion with the Government  of the Republic of 
Cyprus apply forthwith such measures as are st rictly necessary to remedy the situation.  The 
measures taken shall be referred to the Council within 10 working days.  The Council may, acting 
by qualified majority vote, amend, modify or annul  the measures taken by the Commission within 
21 working days from the date of receipt of notification from the Commission. 
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5. Any Member State may invite the Commission to  provide details of the volume, value and 
products crossing the line to the a ppropriate standing or management committee, provided it gives 
one month's notice of its request.  
1.1. Article 12 
Entry into Force 
 This Regulation shall enter into force on the day of accession of C yprus to the European Union.  
   This Regulation shall be binding in  its entirety and directly applicable in all Member States. 
 Done at Luxembourg, 29.4.2004.   
For the Council 
  The President  
M. McDOWELL 
__________________________ 
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ANNEX I  
 
List of crossing points refe rred to in Article 2(4) 
– Ledra Palace 
– Agios Dhometios 
 
     
  
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ANNEX II  
Requirements and checks refe rred to in Article 4(4) 
 
– Veterinary, phytosanitary and food safety requi rements and checks as set out in measures 
adopted under Article 37 (ex Ar ticle 43) and/or Article 152(4 )(b) of the EC Treaty.  In 
particular, relevant plants, plant produ cts and other objects shall have undergone 
phytosanitary checks by duly authorised experts to verify that the provisions of EU 
phytosanitary legislation (C ouncil Directive 2000/29/EC 1) are complied with before they 
cross the line to the areas under the effective control of  the Republic of Cyprus.  
 
 
     
                                                 
1  OJ L 169, 10.7.2000, p. 1.  Directive as last amended by Commission Directive 2004/31/EC 
(OJ L 85, 23.3.2004, p. 18).