Proposal for a Council Regulation amending Regulation (EC) No 866/2004 on a regime under Article 2 of Protocol 10 to the Act of Accession as regards agriculture and traveller allowances
Date: 2004-11-18
Institutions: European Commission
Subjects: Cyprus, accession to the European Union, agricultural product, border control, customs regulations, simplification of formalities

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 18.11.2004 
COM(2004) 751 final 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 866/2004 on a regime  
under Article 2 of Protocol 10 to the Act of Accession 
as regards agriculture and traveller allowances 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

By Regulation No 866/2004, the Council established a regime under Article 2 of Protocol 10 
to the Act of Accession 2003 which provides for special rules concerning goods, services and 
persons  crossing  the  line  between  those  areas  of  the  Republic  of  Cyprus  in  which  the 
Government of the Republic of Cyprus does not exercise effective control and those areas in 
which the Government of the Republic of Cyprus exercises effective control. 

In consideration of the experience gained since this Regulation entered into force a number of 
rules  should  be  relaxed  and  the  commerce  in  certain  goods  facilitated.  The  proposed 
amendment provides for a procedure which would allow certain goods, which are subject to 
export  refunds  or  intervention  measures  and  therefore  currently  excluded  from  the  special 
regime set up in the Line Regulation, to receive privileged treatment following a decision by 
the  relevant  management  committee  under  the  common  agricultural  policy.  Secondly,  the 
proposed  amendment  provides  for  a  specific  procedure  for  allowing  movement  of  live 
animals  and  animal  products  across  the  green  line.  Thirdly,  the  proposed  amendment 
increases the value and quantitative levels for traveller’s allowances. 

The proposed amendments will further facilitate trade across the green line and will contribute 
to the integration of the island.

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Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 866/2004 on a regime  
under Article 2 of Protocol 10 to the Act of Accession 
as regards agriculture and traveller allowances 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to Protocol 10 on Cyprus to 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 founded1, and in particular Article 2 thereof, 

Having  regard  to  Protocol  3  on  the  Sovereign  Base  Areas  of  the  United  Kingdom  of  Great 
Britain  and  Northern  Ireland  in  Cyprus2  of  the  said  Act  of  Accession,  and  in  particular 
Article 6 thereof, 

Having regard to the proposal from the Commission3, 

Whereas: 

(1) 

(2) 

Council  Regulation  (EC)  No  866/20044  lays  down  special  rules  concerning  goods, 
services and persons crossing the line between the areas in which the Government of 
the Republic of Cyprus does not exercise effective control and those areas in which the 
Government of the Republic of Cyprus exercises effective control. 

In the light of the experience gained since that Regulation entered into force, a number 
of  rules  concerning  travellers  should  be  relaxed  and  the  trade  in  certain  agricultural 
goods facilitated. 

(3) 

Regulation (EC) No 866/2004 should therefore be amended accordingly, 

HAS ADOPTED THIS REGULATION: 

Regulation (EC) No 866/2004 is amended as follows: 

Article 1 

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2 
3 
4 

OJ L 236, 23.9.2003, p. 955. 
OJ L 236, 23.9.2003, p. 940. 
OJ C , , p. . 
OJ L 206, 9.6.2004, p. 51. 

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(1) 

Article 4 is amended as follows: 

(a) 

Paragraph 2) is replaced by the following: 

‘2. 
These goods shall not be subject to a customs declaration. They shall not be subject to 
customs duties or charges having equivalent effect, unless they are eligible for export refunds 
or intervention measures. 

By way of derogation from the first subparagraph, the Commission may, in accordance with 
the  relevant  management  committee  procedure  established  under  the  common  agriculture 
policy, determine privileged conditions and arrangements for access of products eligible for 
export refunds or intervention measures. 

In order to ensure effective controls, the quantities crossing the line shall be registered.’ 

(b) 

Paragraph 9) is replaced by the following: 

‘9. 
The movement across the line of live animals and animal products which are subject 
to Community veterinary requirements shall be prohibited. This prohibition may be lifted by 
Commission decisions laying down the conditions applicable for trade adopted in accordance 
with  the  procedure  referred  to  in  Article  58(2)  of  Regulation  (EC)  No  178/2002  of  the 
European Parliament and of the Council∗. 

∗OJ L 31, 1.2.2002, p. 1. ’ 

(2) 

Article 6 is replaced by the following: 

‘Article 6 

1. 

2. 

3. 

4. 

Council Directive 69/169/EEC∗ shall not apply, but goods contained in the personal 
luggage  of  persons  crossing  the  line  shall  be  exempt  from  turnover  tax  and  excise 
duty  provided  they  have  no  commercial  character  and  their  total  value  does  not 
exceed EUR 175 per person.  

The quantitative limits for exemptions from turnover tax and excise duty shall be 200 
cigarettes and 1 litre of spirits. 

Exemptions for the goods mentioned in paragraph 2 shall not be granted to persons 
crossing the line under 17 years of age. 

Within  the  quantitative  limits  set  out  in  paragraph  2  and  taking  account  of  the 
restrictions in paragraph 3, the value of the goods listed in paragraph 2 shall not be 
taken into consideration in determining the exemption referred to in paragraph 1. 

∗OJ L 133, 4.6.1969, p. 6. ’ 

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This Regulation shall enter into force on the third day following that of its publication in the 
Official Journal of the European Union. 

Article 2 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels,  

For the Council 
The President 

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