Council Regulation (EC) No 866/2004 of 29 April 2004 on a regime under Article 2 of Protocol No 10 of the Act of Accession
Date: 2004-04-29
Institutions: Council of the European Union
Subjects: Cyprus, United Kingdom, accession to the European Union, border control, customs inspection

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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 the Act concerning the conditions of accession of the 

Czech Republic, the Republic of Estonia, the Republic 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 Sovereign Base Areas of the United Kingdom of 
Great Britain and Northern 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  
2  
3  

OJ L 236, 23.9.2003, p. 955. 
OJ L 236, 23.9.2003, p. 940. 
OJ C  

 
 
 
 
 
 
 
 
 
 
 
 
                                                 
 
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Whereas: 

(4)  The European Council has repeatedly underlined its strong preference for accession by a 

reunited Cyprus.  Regrettably, a comprehensive settlement has not yet been reached.  In 

conformity with paragraph 12 of the conclusions of the European Council in Copenhagen, 

the Council on 26 April 2004 outlined its position on the current situation on the island. 

(5) 

  Pending a settlement, the 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 Protocol No 10, this suspension makes 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 ensure 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 Great 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 security, the special rules should secure an equivalent standard 

of protection of the security of the EU with regard to illegal 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 regard 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 explicitly states that measures promoting economic development 

in the abovementioned areas are not precluded by the suspension of the acquis.  This 

regulation is intended to facilitate 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 standards of protection are maintained as set out 

above. 

(9) 

Regarding persons, the policy of the Government of the Republic of Cyprus currently allows 

the crossing of the line by all citizens of the Republic, EU citizens and third country 

nationals who are legally residing in the northern part of Cyprus, and by all EU citizens and 

third country nationals who entered the island through the Government Controlled Areas. 

 
 
 
 
 
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(7)  While taking into account the legitimate concerns of the Government 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 order 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 conditions under which third country nationals are allowed to cross 

the line. 

(8) 

Regarding checks on persons, this Regulation should not affect the provisions laid down in 

Protocol No 3, and in particular Article 8 thereof. 

(9) 

This Regulation does not affect in any way the 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 Commission, 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 amend 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 defined in Article 2, the line between the areas under 

the effective control of the Government of the Republic of Cyprus and those areas in which 

the Government of the Republic 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 Republic 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 person 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 areas 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 least one such check in order to establish their identity.  

3. 

Third country nationals shall only be allowed to cross the line provided they:  

(a)  possess either a residence permit issued by the Republic of Cyprus or a valid travel document 

and, if required, a valid visa for the Republic of Cyprus, and 

(b)  do not represent a threat to public policy or public security. 

4. 

The line shall be crossed only at crossing points authorised by the competent authorities of the 

Republic of Cyprus.  A list of these crossing 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 shall be carried out by the Republic of Cyprus 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 Government 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 the Republic of Cyprus, on condition that they are wholly obtained in 

the areas not under effective control 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 control 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 having equivalent effect, nor to 

a customs declaration, provided that they are not eligible for export refunds or intervention 

measures. In order to ensure effective controls, the quantities crossing the line 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 crossing points listed in Annex I and the crossing  

points of Pergamos and Strovilia under the authority 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 authorised in agreement with the latter.  The 

Turkish Cypriot Chamber of Commerce or other duly 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 effective control of the 

Government of the Republic of Cyprus, the competent authorities of the Republic of Cyprus shall 

check the authenticity of the document referred to in paragraph 5 and whether it corresponds with 

the consignment.  

The Republic of Cyprus shall treat the goods referred to in paragraph 1 as not being imported 

7. 
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 consumption in the Republic of Cyprus.  

8. 

Paragraph 7 shall not have any effect on the European Communities' own resources accruing 

from VAT.  

1  

2  

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). 
OJ L 76, 23.3.1992, p. 1.  Directive as last 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 products across the line shall 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 quantities and nature of the goods in view of their destination.  

11.  Goods complying with the conditions set out in paragraphs 1 to 10 shall have the status of 

Community goods, within the meaning of Article 4(7) of Regulation (EEC) No 2913/92. 

12.  This Article shall apply immediately as from 1 May 2004 to goods wholly obtained in the 

areas not under the effective control of the Government of the Republic of Cyprus and complying 

with Annex II.  In respect of other goods, the full implementation of this Article shall be subject to 

specific rules that take full account of the particular situation in the island of Cyprus on the basis of 

a Commission decision to be adopted as soon as possible and at the latest within 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 not under the effective control 

of the Government of the Republic of Cyprus 

1.  Goods which are allowed to cross 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 the 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 agricultural and processed agricultural goods when 

crossing the line.  

3. 

The supply of goods shall not be exempt 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 subject to authorisation, restrictions, duties or other charges on export 

by Community law, shall be prohibited.  

Article 6 

Facilities for persons crossing the line 

Council Directive 69/169/EEC 1 shall not apply, but goods contained 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.  Exemptions from turnover tax and excise duty on 

tobacco products and alcoholic beverages shall not be granted to persons 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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1. 

TITLE IV 

SERVICES 

Article 7 

Taxation 

To the extent that services are supplied across the line to and from persons established or having 

their permanent address or usual residence in the areas of the Republic 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 established or having their 

permanent address or usual residence in the areas of the Republic of Cyprus 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 Eastern Sovereign Base Area in 

Cyprus shall take all appropriate measures in order 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 Government 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 the 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 legislation relating to the matter being amended. 

Article 10 

Change of Policy 

Any change in the policy of the Government of the Republic of Cyprus on crossings of persons or 

goods shall only become effective after the proposed changes have been notified to the Commission 

and the Commission has not objected to these changes within one month. If appropriate, and after 

consultation with the United Kingdom if the Sovereign Base Areas are affected, the Commission 

may propose modifications to this Regulation in order 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 Commission shall report to the Council on an annual 

basis, starting not later than one year after the date of entry into force of this Regulation, on the 

implementation of the Regulation and the situation resulting from its application, 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 control of the Government of the 

Republic of Cyprus and the areas not under its effective 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 matter of concern arising from the application of this 

Regulation.  

4. 

In the event of an emergency creating a threat or risk to public or animal and plant health, the 

appropriate procedures as set out in EU legislation in Annex II shall apply.  In the event of other 

emergencies or where other irregularities or exceptional circumstances arise which require 

immediate action, the Commission may in consultation with the Government of the Republic of 

Cyprus apply forthwith such measures as are strictly 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 appropriate 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 Cyprus 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 referred to in Article 2(4) 

–  Ledra Palace 

–  Agios Dhometios 

 
 
 
 
 
 
 
 
 
 
 
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Requirements and checks referred to in Article 4(4) 

ANNEX II 

– 

Veterinary, phytosanitary and food safety requirements and checks as set out in measures 

adopted under Article 37 (ex Article 43) and/or Article 152(4)(b) of the EC Treaty.  In 

particular, relevant plants, plant products and other objects shall have undergone 

phytosanitary checks by duly authorised experts to verify that the provisions of EU 
phytosanitary legislation (Council 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).