Communication from the Commission - Report on the implementation of Council Regulation (EC) 866/2004 of 29 April 2004 and the situation resulting from its application
Date: 2005-07-14
Institutions: European Commission
Subjects: Cyprus, accession to the European Union, border control, customs regulations, report

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 14.07.2005 
COM(2005) 320 final 

COMMUNICATION FROM THE COMMISSION 

Report on the implementation of Council Regulation (EC) 866/2004 of 29 April 2004 and 
the situation resulting from its application 

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COMMUNICATION FROM THE COMMISSION 

Report on the implementation of Council Regulation (EC) 866/2004 of 29 April 2004 and 
the situation resulting from its application 

Introduction 

Council Regulation (EC) 866/2004 of 29 April 2004 on a regime under Article 2 of Protocol 
10 to the Act of Accession1 (hereafter: Green Line Regulation) provides in Article 11 (1) that 
“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 amendment if necessary”. 

The  Green  Line  Regulation  entered  into  force  on  1  May  2004.  It  defines  the  terms  under 
which the provisions of EU law apply to the line between the areas of the Republic of Cyprus 
in which the Government of the Republic of Cyprus exercises effective control and the areas 
in which it does not. 

This report covers the period 1 May 2004 until 30 April 2005. 

1. 

Implementing measures 

On 7 July 2004, the Commission adopted Decision 2004/604/EC on the authorisation of the 
Turkish Cypriot Chamber of Commerce according to Article 4(5) of Council Regulation (EC) 
No 866/2004.2 

On 10 August 2004, pursuant to Article 4 (12) Green Line Regulation and after consultation 
of the Line Regulation Committee the Commission adopted Regulation (EC) No 1480/2004 
laying down specific rules concerning goods arriving from the areas not under the effective 
control of the Government of Cyprus in the areas in which the Government exercises effective 
control.3 
These  specific  rules  entered  into  force  on  23  August  2004.  Since  then  the 
Green Line Regulation is fully operational as regards goods. 

On  28  December  2004,  the  Commission  adopted  a  decision  on  the  appointment  of 
phytosanitary experts to carry out inspections in the areas of the Republic of Cyprus not under 
the effective control of the Government, as described in Article 3 of Commission Regulation 
(EC) No 1480/2004. 

On  17  February  2005,  the  Council  adopted  amendments  to  the  Green  Line  Regulation  as 
regards agriculture and facilities for persons crossing the line.4 

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2 
3 
4 

OJ L 161,30.4.2004, p. 128 as amended by Council Regulation (EC) 293/2005 of 17 February 2005, OJ 
L 50, 23.2.2005, p. 1. 
OJ L 272, 20.8.2004, p.12. 
Commission Regulation (EC) 1480/2004 of 10 August 2004, OJ L 272, 20.8.2004, p. 3. 
Council Regulation (EC) 293/2005 of 17 February 2005, OJ L 50, 23.2.2005, p. 1. 

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On  18  April  2005,  the  Commission  adopted  an  adaptation  to  Annex  I  of  the  Green  Line 
Regulation. The list of crossing points has been extended by two additional crossing points: 
Ledra Street and Zodia.5 

For the time being the Commission does not envisage further proposals for amendments to the 
Green Line Regulation. 

2. 

Crossing of Persons 

The crossing of persons is running smoothly. Thousands of Cypriots from either side cross the 
line  daily.  There  is  free  movement  of  EU  citizens  irrespective  of  their  point  of  entry  into 
Cyprus. No incidents have been reported. 

Despite  the  checks  carried  out  by  the  Republic  of  Cyprus  on  persons  crossing  the  line,  it 
becomes more and more obvious that a systematic illegal route through the northern part to 
the  government-controlled  areas  exists.  Hence,  the  line  cannot  be  regarded  over  the  whole 
length  as  being  under  effective  surveillance.  In  some  areas  it  is  possible  to  cross  the  line 
without any controls. 

Illegal immigration of thousands of third-country nationals across the line took place. Many 
of  them  have  requested  asylum  in  the  Republic  of  Cyprus  which  has  led  to  a  significant 
increase of asylum applications.6 

3. 

Crossing of Goods 

As regards goods, the Green Line Regulation has been fully operational since 23 August 2004 
(cf. 1.). 

3.1 

Statistics 

The  Turkish  Cypriot  Chamber  of  Commerce  communicated  constantly  in  due  time  to  the 
Commission  on  a  monthly  basis  the  type,  volume  and  value  of  goods  for  which  it  issued 
accompanying documents.7  The Chamber is  working  effectively and professionally. It was 
supported by Member State experts. 

The  authorities  of  the  Republic  of  Cyprus  communicated  to  the  Commission  in  monthly 
reports  the  type,  volume  and  value  of  goods  that  have,  according  to  the  accompanying 
documents, crossed the line.8  These reports include goods that crossed at the crossing points 
of Pergamos and Strovilia under the authority of the Eastern Sovereign Base Area. 

Volume and value of goods crossing the line remain limited. During the reporting period the 
Chamber  issued  862  accompanying  documents.  The  total  value  of  the  goods,  for  which 
documents were issued, amounts to EUR 1,000,617. 

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6 

7 
8 

Commission Regulation (EC) 601/2005 of 18 April 2005, OJ L 99, p. 10. 
In the period under report 10,992 third country nationals applied for asylum in the Republic of Cyprus 
according  to  its  Ministry  of  Interior.  It  is  estimated  that  at  least  50%  of  the  asylum  seekers  illegally 
crossed the line. 
Overview table summarizing the monthly reports in Annex I. 
Table on goods that crossed the line in Annex II. 

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Not  all  documents  were  used  in  the  reporting  period  due  to  the  fact  that  transactions  were 
cancelled  or  deliveries  were  postponed.  In  several  cases  the  volume/quantity  of  goods  that 
crossed  the  line  was  smaller  than  the  volume/quantity  mentioned  in  the  accompanying 
document.  The  value  of  goods  that  actually  crossed  the  line  amounts  to  EUR  818,133 
according  to  the  reports  of  the  Republic  of  Cyprus,  i.e.  in  average  about  EUR  99,000  per 
month.9 Most traded goods are vegetables, stone products, paper goods, and furniture.10 

The  authorities  of  the  Republic  of  Cyprus  refused  the  crossing  of  goods  exceptionally  (e.g. 
movement of animal products such as halloumi cheese and fresh fish; pita bread because of 
non-compliance with labelling and packaging requirements). 

As provided for in Article 4 (2) of the Green Line Regulation, the authorities of the Republic 
of Cyprus applied duties to agricultural goods of a type that are eligible for export refunds or 
intervention measures. 

There  was  no  crossing  of  any  goods  the  final  destination  of  which  was  not  the  Republic  of 
Cyprus, in other words there was no trade between the northern part of Cyprus and other EU 
Member States via the line. 

3.2 

Obstacles 

Many  obstacles  for  trade  across  the  line  continue  to  exist.  Turkish  Cypriot  commercial 
vehicles such as buses, lorries, taxis, minibuses and rented cars cannot circulate freely across 
the island. The Republic of Cyprus does not accept roadworthiness certificates of commercial 
vehicles and professional driving licences issued by Turkish Cypriot authorities. 

Trade  between  the  northern  part  of  Cyprus  and  the  EU  through  the  government-controlled 
areas does not take place for various reasons, e.g. the necessity to register a company in the 
government-controlled  areas  (inter  alia  for  the  purposes  of  import  VAT  payment)  and 
transportation problems (since trucks cannot cross and driving licences are not accepted). 

3.3 

Further trade facilitation 

Commission  decisions  concerning  provisions  for  citrus11  as  well  as  honey,  fresh  fish,  and 
ostriches12 crossing the line are under preparation. 

In September 2004 experts from the Member States on behalf of the Commission have carried 
out pre-harvest checks on the citrus crop in the northern part of the island in accordance with 
the relevant Community acquis. The results of these checks confirmed earlier results obtained 
in  October  2003  according  to  which  the  harmful  organisms  Xanthomonas  campestris, 
Cercospora  angolensis  and  Guignardia  citricarpa  have  not  been  detected,  suggesting  that 
these organisms do not occur in the northern part of Cyprus. The survey work will continue as 
a collateral monitoring activity besides inspections and controls of orchards and consignments 
intended for trade across the line. 

9 
10 
11 
12 

For the development of trade cf. chart in Annex III. 
For the development of these goods cf.chart in Annex IV. 
Based on (amended) Article 4 (2) subparagraph 2. 
Based on (amended) Article 4 (9). 

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The  independent  phytosanitary  experts  performed  a  number  of  survey  activities  in  the 
northern part of Cyprus in order to prepare the ground for potato trade, which could start with 
the spring crop of 2006, provided that no serious plant health problems are encountered. 

4. 

Services 

To the knowledge of the Commission, services had not been supplied across the line during 
the period under report. 

5. 

Conclusion 

With the implementing measures taken during the course of the reporting period, the regime 
under Article 2 of Protocol 10 to the Act of Accession is fully operational. 

The Regulation has proofed to be a stable legal frame for the daily crossing of thousands of 
Cypriots  as  well  as  for  other  EU  citizens  who  can  move  freely  within  Cyprus.  This 
strengthens  the  links  between  the  two  communities  on  the  island  and  positively  affects  the 
development of tourism. However, illegal immigration across the line causes concern. 

Volume  and  value  of  goods  crossing  the  line  remain  limited.  Practical  obstacles  hamper  a 
substantial size of trade across the line. The Turkish Cypriot Chamber of Commerce fulfilled 
its obligations effectively and professionally. 

A  swift  opening  of  the  two  new  crossing  points  would  have  a  positive  effect  on  trade 
development and would contribute to a further integration of the island. 

There was no trade between the northern part of Cyprus and other EU Member States via the 
line. 

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ANNEX I 

Overview  table  summarizing  the  monthly  reports  of  the  Turkish  Cypriot  Chamber  of  Commerce  according  to  Article  8  of 
Commission Regulation No 1480/2004 

August 2004 – April 2005 

Jan/2005 Feb/2005  Mar/2005 
8.000 €
4.545 €
20.821 €
0 €
1.206 €
4.231 €
12.171 €
2.927 €
23.234 €
13.395 €
6.192 €
344 €
18.533 €
115.600 €

7.883 €
5.961 €
46.852 €
0 €
980 €
1.300 €
15.762 €
937 €
26.178 €
21.896 €
21.672 €
0 €
21.801 €
171.223 €

3.302 €
4.283 €
4.943 €
0 €
0 €
688 €
8.090 €
2.128 €
19.571 €
11.663 €
0 €
0 €
24.810 €
79.479 €

Apr/2005 

Total 

3.645 € 
205 € 
37.324 € 
0 € 
552 € 
516 € 
12.691 € 
6.610 € 
36.268 € 
19.343 € 
12.384 € 
0 € 
27.679 € 

36.186 € 
42.307 € 
173.686 € 
7.413 € 
9.251 € 
14.914 € 
54.015 € 
28.279 € 
285.661 € 
111.852 € 
68.511 € 
1.041 € 
167.501 € 
157.217 €  1.000.617 € 

Product 

Aug/2004  Sep/2004 Oct/2004 Nov/2004 

Dec/2004 

1  Aluminium /PVC door and window 
2  Chemical goods 
3  Building stone,articles of stone 
4  Fruit 
5  Handicraft goods 
6 
Iron / steel goods  
7  Plastics 
8  Textile 
9  Vegetables 

10  Wooden goods,furniture 
11  Raw metal 
12  Prepared food stuff 
13  Paper goods/kitchen towel,etc 

TOTAL  

550 €
0 €
0 €
2.924 €
0 €
0 €
0 €
0 €
0 €
0 €
399 €
0 €
0 €
3.873 €

2.866 €
0 €
9.295 €
4.369 €
1.508 €
2.236 €
0 €
688 €
8.923 €
6.302 €
14.448 €
165 €
9.021 €
59.821 €

1.230 €
0 €
21.082 €
120 €
2.222 €
1.307 €
0 €
286 €
8.710 €
9.294 €
13.416 €
0 €
17.427 €
75.093 €

5.521 €
5.905 €
17.652 €
0 €
1.502 €
2.150 €
1.496 €
1.851 €
68.653 €
16.475 €
0 €
0 €
26.987 €
148.192 €

3.190 €
21.408 €
15.716 €
0 €
1.280 €
2.485 €
3.804 €
12.851 €
94.125 €
13.485 €
0 €
532 €
21.244 €
190.120 €

1 EUR = 0.58 CYP 

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ANNEX II 

Value  of  goods  which  crossed  the  line  according  to  the  authorities  of  the 
Republic of Cyprus 

Period 
1  August/2004 
2  September/2004 
3  October/2004 
4  November/2004 
5  December/2004 
6  January/2005 
7  February/2005 
8  March/2005 
9  April/2005 
TOTAL 

Value 

3.883 €
48.265 €
72.102 €
86.547 €
153.029 €
53.166 €
148.050 €
117.177 €
135.914 €
818.133 €

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ANNEX III  Value of goods for which accompanying documents were issued by the TCCC 

200.000

180.000

160.000

140.000

120.000

R
U
E

100.000

80.000

60.000

40.000

20.000

0

Aug/2004

Sep/2004

Oct/2004

Nov/2004

Dec/2004

Jan/2005

Feb/2005

Mar/2005

Apr/2005

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ANNEX IV  Development of most traded goods 

R
U
E

100.000

90.000

80.000

70.000

60.000

50.000

40.000

30.000

20.000

10.000

0

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Aug/2004 Sep/2004 Oct/2004 Nov/2004 Dec/2004 Jan/2005 Feb/2005 Mar/2005 Apr/2005

Building stone,articles
of stone

Vegetables

Wooden
goods,furniture

Paper goods/kitchen
towel,etc

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