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 concerning rules on goods, services and persons crossing the green line in Cyprus
Date: 2008-04-10
Institutions: European Commission
Subjects: Cyprus, border control, customs inspection, customs regulations, exemption from customs duties

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 10.04.2008 
COM(2008) 8 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 concerning rules on goods, services and persons crossing the Green 
Line in Cyprus 

(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. 

Trade and economic interaction on the island need to be enhanced in the light of experience 
gained  since  the  Regulation  including  the  previous  substantial  amendment  (Council 
Regulation No 293/2005) entered into force. To this end, the duties on agricultural products 
originating in the areas in which the Government of the Republic of Cyprus does not exercise 
effective control should be generally lifted. So far, only duties on citrus fruit have been lifted 
by  Commission  Regulation  No  1624/2005.  In  future,  such  cumbersome  procedure  can  be 
avoided. To allow for this, it is proposed to strengthen the safeguard clause of the Regulation. 

There  is  also  the  need  to  regulate  in  a  transparent  way  the  temporary  introduction  of  goods 
(for  up  to  six  months)  from  the  areas  in  which  the  Government  of  the  Republic  of  Cyprus 
does not exercise effective control into the areas in which the Government of the Republic of 
Cyprus exercises effective control. Firstly, this aims at encouraging the provision of services 
by  companies  established  in  the  areas  in  which  the  Government  of  the  Republic  of  Cyprus 
does not exercise effective control across the line by allowing them to bring their equipment 
along.  Secondly,  it  should  facilitate  the  participation  of  those  companies  in  trade  fairs  or 
similar events in areas in which the Government of the Republic of Cyprus exercises effective 
control. Thirdly, goods destined to undergo a repair in the areas in which the Government of 
the  Republic  of  Cyprus  exercises  effective  control  should  be  allowed  to  cross.  Reasonable 
evidence should be provided that the introduction of such goods takes place on a temporary 
basis. The proposed amendments anticipate that details of the temporary introduction can be 
regulated  via  implementing  rules.  In  practice,  this  would  be  done  by  a  revision  of 
Commission Regulation No 1480/2004 shortly after the adoption of this proposed amending 
Regulation. 

Finally, the total value of goods contained in the personal luggage of persons crossing the line 
needs  to  be  substantially  increased  from  135  €  to  260  €  so  as  to  encourage  the  economic 
development  in  the  areas  in  which  the  Government  of  the  Republic  of  Cyprus  does  not 
exercise effective control. 

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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 concerning rules on goods, services and persons crossing the Green 
Line in Cyprus 

THE COUNCIL OF THE EUROPEAN UNION, 
Having  regard  to  Protocol  10  on  Cyprus  to  the  2003  Act  of  Accession1,  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 to the said Act of Accession, in particular Article 6 
thereof, 

Having regard to the proposal from the Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

Council Regulation (EC) No 866/2004 of 29 April 2004 on a regime under Article 2 of 
Protocol  10  to  the  Act  of  Accession3  lays  down  special  rules  concerning  goods, 
services and persons crossing the line between the areas of the Republic of Cyprus in 
which the Government of the Republic of Cyprus does not exercise effective control 
and those areas of the Republic of Cyprus in which the Government of the Republic of 
Cyprus exercises effective control. 

Trade  and  economic  interaction  on  the  island  need  to  be  enhanced  in  the  light  of 
experience gained since the Regulation including the previous amendment entered into 
force, 

To this end, the duties on agricultural products originating in the areas of the Republic 
of  Cyprus  in  which  the  Government  of  the  Republic  of  Cyprus  does  not  exercise 
effective control should be generally lifted. To allow for this, the safeguard clause of 
Regulation (EC) No 866/2004 needs to be strengthened. 

The  temporary  introduction  of  goods  from  the  areas  of  the  Republic  of  Cyprus  in 
which the Government of the Republic of Cyprus does not exercise effective control 
into the areas of the Republic of Cyprus in which the Government of the Republic of 
Cyprus  exercises  effective  control  should  be  regulated,  in  order  to  encourage  the 
provision of services by companies established in the areas of the Republic of Cyprus 
in which the Government of the Republic of Cyprus does not exercise effective control 
across the line and at facilitating the participation of those companies in trade fairs or 
similar  events  in  areas  of  the  Republic  of  Cyprus  in  which  the  Government  of  the 
Republic  of  Cyprus  exercises  effective  control.  Furthermore,  goods  destined  to 

1 
2 
3 

OJ L 236, 23.9.2003, p. 955 
OJ L 236, 23.9.2003, p. 940 
OJ  L  161,  30.4.2004,  p.  128,  corrected  version  in  OJ  L  206  of  9.6.2004,  p.  51,  Regulation  as  last 
amended by Commission Regulation (EC) No 1283/2005 (OJ L 203, 4.8.2005, p.8). 

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(5) 

(6) 

(7) 

undergo a repair in the areas of the Republic of Cyprus in which the Government of 
the Republic of Cyprus exercises effective control should be allowed to cross the line. 

Reasonable  evidence  should  be  provided  that  the  introduction  of  such  goods  takes 
place on a temporary basis. The customs authorities of the Republic of Cyprus or the 
authorities of the Eastern Sovereign Base Area may ask for a guarantee to cover any 
potential  customs  or  fiscal  debts  if  certain  temporarily  introduced  goods  are  not 
returned  to  the  areas  of  the  Republic  of  Cyprus  in  which  the  Government  of  the 
Republic of Cyprus does not exercise effective control. 

For  persons  crossing  the  line  from  the  areas  of  the  Republic  of  Cyprus  in  which  the 
Government  of  the  Republic  of  Cyprus  does  not  exercise  effective  control  into  the 
areas of the Republic of Cyprus in which this Government exercises effective control 
it  should  be  clarified  that  their  personal  effects  shall  be  considered  to  have  been 
declared for temporary introduction. The same applies to means of transport. 

The total value of goods contained in the personal luggage of persons crossing the line 
from the areas of the Republic of Cyprus in which the Government of the Republic of 
Cyprus does not exercise effective control into the areas of the Republic of Cyprus in 
which this Government exercises effective control needs to be substantially increased 
so as to encourage the economic development in the areas of the Republic of Cyprus 
in  which  the  Government  of  the  Republic  of  Cyprus  does  not  exercise  effective 
control, 

(8) 

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

HAS ADOPTED THIS REGULATION: 

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

1. 

In Article 4, paragraph 2 is replaced by the following: 

Article 1 

'2. The goods referred to in paragraph 1 shall not be subject to customs declaration. 
They  shall  not  be  subject  to  customs  duties  or  charges  having  equivalent  effect.  In 
order to ensure effective controls, the quantities crossing the line shall be registered.' 

2. 

The following Article 4a is inserted:  

'Article 4a 

Temporary introduction of goods 

1.  With the exception of goods which are subject to veterinary and phytosanitary 
requirements,  the  following  goods  may  be  temporarily  introduced  from  the 
areas of the Republic of Cyprus in which  the Government  of  the Republic of 
Cyprus  does  not  exercise  effective  control  into  the  areas  of  the  Republic  of 
Cyprus in which the Government of the Republic of Cyprus exercises effective 
control: 

(a) 

personal  effects  of  persons  crossing  the  line  reasonably  required  for 
the journey and goods for sport purposes;  

(b)  means of transport;  

(c) 

(d) 

professional equipment; 

goods destined to be repaired; 

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2. 

3. 

4. 

5. 

(e) 

goods to be exhibited or used at a public event. 

The period for which the goods referred to in paragraph 1 are introduced may 
be of a duration up to six months.  

The goods referred to in paragraph 1 do not  need  to  fulfil  the  conditions  laid 
down in Article 4(1). 

In the case the goods referred to in paragraph 1 upon the expiry of the period of 
temporary introduction provided for under paragraph 2, are not returned to the 
areas of the Republic of Cyprus in which  the Government of the Republic of 
Cyprus does not exercise effective control, they shall be subject to confiscation 
by the customs authorities of the Republic of Cyprus..  

For  temporary  introduction  of  the  goods  referred  to  in  points  (a)  and  (b)  of 
paragraph 1, Articles 229, 232, 579 and 581 of Commission Regulation (EEC) 
No 2454/934 shall apply mutatis mutandis. 

For temporary introduction of the goods referred to in points (c), (d) and (e) of 
paragraph 1 the following procedure shall be followed: 

(a)  The  goods  shall  be  accompanied  by  a  declaration  of  the  person 
introducing  them  mentioning  the  purpose  of  the  temporary  introduction 
and  supporting  documentation,  as  appropriate,  giving  reasonable 
evidence  that  the  goods  fall  under  one  of  the  three  categories  listed  in 
points (c), (d) and (e) of paragraph 1.  

(b)  The goods shall be registered by the customs authorities of the Republic 
of Cyprus or by the authorities of the Eastern Sovereign Base Area when 
they enter into and leave the areas of the Republic of Cyprus in which the 
Government of the Republic of Cyprus exercises effective control or the 
Eastern Sovereign Base Area. 

(c)  The customs authorities of the Republic of Cyprus and the authorities of 
the Eastern Sovereign Bases Area may make the temporary introduction 
of  the  goods  conditional  upon  the  provision  of  guarantee  in  order  to 
ensure that any customs or fiscal debt which may be incurred in respect 
of those goods will be paid. 

6. 

The  Commission  may  adopt  specific  rules  in  accordance  with  the  procedure 
referred to in Article 4(12).'  

3. 

In Article 6, paragraph 1 and paragraph 2 are replaced by the following:  

'1. Council Directive 69/169/EEC(*) and Council Regulation (EEC) 918/83 shall not 
apply, but goods contained in the personal luggage of persons crossing the line shall 
be exempt from turnover tax and excise duty as well as from import duties provided 
they  have  no  commercial  character  and  their  total  value  does  not  exceed  EUR  260 
per person. 

4 

Commission  Regulation  (EEC)  No  2454/93  of  2  July  1993  laying  down  provisions  for  the 
implementation of Council Regulation (EEC) No 2913/92 establishing the Community Customs Code 
(OJ L 253, 11.10.1993, p.1). Regulation as last amended by Regulation (EC) No 883/2005 (OJ L 148, 
11.6.2005, p. 5) 

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2. The quantitative limits for exemptions from turnover tax and excise duty as well as 
from  import  duties  shall  be  40  cigarettes  and  1  litre  of  spirits  for  personal 
consumption.' 

(*) OJ L 133, 4.6.1969, p. 6.'  

4. 

In Article 11(4), the second sentence is replaced by the following:  

'In  the  event  of  other  emergencies,  notably  those  caused  by  irregularities,  trade 
distortions  or  fraud,  or  where  other  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.' 

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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