Communication from the Commission - Annual Report on the implementation of Council Regulation (EC) 866/2004 of 29 April 2004 and the situation resulting from its application
Date: 2008-08-27
Institutions: European Commission
Subjects: Cyprus, accession to the European Union, activity report, application of EU law, border control, customs regulations

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 27.8.2008 
COM(2008) 529 final 

COMMUNICATION FROM THE COMMISSION 

Annual 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 

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

Introduction 

The Council Regulation (EC) 866/2004 of 29 April on a regime under Article 2 of Protocol 10 
to the Act of Accession1 (hereafter: Green Line Regulation, GLR) has been in force since 1 
May  2004.  It  defines  the  terms  under  which  the  provisions  of  the  EU  law  apply  to  the 
movement of persons, goods and services across 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 the areas in which it does. 

This report covers the period 1 May 2007 - 30 April 2008. 

1. 

AMENDMENTS TO THE GREEN LINE REGULATION 

Following  a  proposal  made  by  the  Commission  on  10  April  2008,  on  16  June  2008  the 
Council adopted a Regulation amending the Green Line Regulation to further facilitate trade 
on the island of Cyprus.2 

The  amending  Regulation,  the  impact  of  which  will  be  examined  in  next  year's  Green  Line 
Report,  provides  for  a  general  lifting  of  duties  on  agricultural  products  originating  in  the 
northern part of Cyprus when being traded across the Line. Furthermore, the total maximum 
value  of  goods  contained  in  the  personal  luggage  of  persons  crossing  the  Line  is  increased 
from  € 135  to  € 260  so  as  to  encourage  the 
economic  development  of  the  Turkish  Cypriot 
community.  Goods  up  to  this  amount  can  now  be  introduced  free  of  customs,  excise  duties 
and  taxes  across  the  Line  into  the  government-controlled  areas  of  the  Republic  of  Cyprus. 
This  rule  does  not  apply  to  cigarettes  and  alcohol.  Finally,  the  amendments  regulate  in  a 
transparent way the temporary introduction of goods (for up to six months) from the northern 
part of Cyprus into the government-controlled areas. 

2. 

IMPLEMENTING MEASURES 

On 4 May 2007, the Commission adopted a Decision lifting prohibitions on the movement of 
certain animal products on the island of Cyprus under Council Regulation (EC) No 866/2004 
and laying down conditions for the movement of those products. This Commission Decision 
determines conditions for trade in honey and fresh fish across the Line.3 

On  29  September  2007,  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. 

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3 

OJ L 161, 30.4.2004, p. 128. Regulation as last amended by Council Regulation (EC) No 587/2008 (OJ 
L 163, 24.6.2008, p.1). 
OJ L 163, 24.6.2008, p. 1. Council Regulation EC No 587/2008 of 16 June 2008 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. 
Commission Decision 2007/330/EC of 4 May 2007, OJ L 123, 12.5.2007, p. 30. 

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On 18 October 2007, the Commission adopted a Decision on the appointment of independent 
experts  to  carry  out  inspections  and  take  samples  to  allow  the  movement  of  certain  animal 
products across the Line in Cyprus. This Commission Decision appoints independent experts 
for the purpose of carrying out inspections of fishing vessels and taking honey samples in the 
northern part of Cyprus in order to allow trade in honey and fresh fish across the Line.4 

3. 

CROSSING OF PERSONS 

According  to  Art  2  of  the  Green  Line  Regulation  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 [Green] Line” whereas Art 3 states that "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." 

3.1. 

Crossing at official crossing points 

The  Regulation  provides  for  a  stable  legal  framework  for  the  free  movement  of  Cypriots, 
other  EU  citizens  and  third  country  nationals  who  cross  the  Line  at  the  crossing  points. 
According to the available data, 633,163 (last year: 788,823) Greek Cypriots crossed from the 
government-controlled  areas  to  the  northern  part  of  Cyprus  and  1,162,739  (last  year: 
1,348,215)  Turkish  Cypriots  crossed  from  the  northern  part  of  Cyprus  to  the  government-
controlled areas during the reporting period.5 Monitoring of the impact of the amendment to 
the Republic of Cyprus Penal Code, penalising any illegal use of property (referred to in last 
year's Green Line Report), on the crossings of Turkish Cypriots revealed that the number of 
crossings has again stabilised. 

On  3  April  2008,  the  sixth  crossing  point  across  the  Line  was  opened  at  Ledra  Street  / 
Lokmaci in the centre of the old town of Nicosia. More than 106,500 people (amongst these 
more than 41,000 other EU citizens and third country nationals) used this crossing by the end 
of the month. 

The number of Republic of Cyprus Police (hereafter: CYPOL) personnel working directly at 
the  crossing  points  was  decreased  from  61  (2006)  to  54  (2007),  before  rising  again  to  67 
(2008). 

No major incidents were reported as regards the daily crossing of people at the check points. 
As well as this, following agreement in one of the technical committees set up by the leaders 
of  the  two  communities  on  21  March  2008  (Committee  on  economic  and  commercial 
matters), cars rented in the northern part of Cyprus can now enter the government-controlled 
areas through the Line. 

3.2. 

Illegal migration across the Green Line 

The number of third country nationals crossing the Line illegally remains an area of serious 
concern.  In  the  reporting  period,  according  to  the  data  submitted  by  the  authorities  of  the 
Republic  of  Cyprus,  the  total  number  of  detected  (or  apprehended)  illegal  immigrants  more 
than doubled (increase from 2919 to 5844), reaching the highest level ever. 

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5 

Commission Decision C(2007)4666 of 18 October. 
According  to  the  authorities  of  the  Republic  of  Cyprus,  no  records  are  kept  for  the  return  of  Greek 
Cypriots to the government-controlled areas and for the return of Turkish Cypriots to the northern part 
of Cyprus (see Annex VII). These figures do not include, though, the persons crossing at Pergamos and 
Strovilia crossing points, both under the authority of the SBA Administration. 

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CYPOL  reported  that  out  of  these  5844,  5710  illegal  immigrants  entered  the  government-
controlled areas across the Line, whereas 128 entered via the Sovereign Base Area6 and only 
6  directly  into  the  government-controlled  areas.  CYPOL  reported  also  the  following  main 
countries of origin of illegal immigrants: Syria (37 %), West Bank (16 %) and Iran (9 %). A 
large number of third country nationals illegally entering later apply for asylum (3470 out of 
5844).7 

The assessment of the entry route into the government-controlled areas by CYPOL is based 
on: 

•  documents – figures from CYPOL indicate that 47 % of those illegal immigrants who are 
reported  to  have  entered  the  government-controlled  areas  across  the  Line  (2683  out  of 
5710)  had  either  a  Turkish  or  a  Turkish  Cypriot  entry  or  exit  stamp  (33 %  and  13 % 
respectively), a visa issued by Turkey which is also valid for the northern part of Cyprus 
(1%) or a 'visa' or a 'residence permit' of the 'TRNC' (0.2 %) in their passports;8 

•  statements by the immigrants themselves, items found in their possession which link them 

to the northern part of Cyprus or Turkey and presumption based on country of origin; 

•  an additional factor was a direct ferry link between Latakia in Syria and Famagusta in the 
northern  part  of  Cyprus.  According  to  information  from  Republic  of  Cyprus  authorities, 
560 illegal immigrants (mostly Palestinians from Iraq) were identified as having used this 
direct ferry link, thus avoiding transit through Turkey; press reports indicate also frequent 
interceptions of small boats carrying illegal immigrants. 

According  to  the  Republic  of  Cyprus  authorities,  the  part  of  the  Line  most  vulnerable  to 
illegal  migration  is  in  the  Sovereign  Base  Area.  The  SBA  Police,  SBA  Customs  and 
Immigration  Department  and  UK  military  resources  work  together  to  combat  illegal 
migration.  The  SBA  Customs  and  Immigration  Department  recruited  10  new  officers,  the 
number  of  operational  teams  working  at  the  Line  was  increased  from  3  to  5,  additional 
trainings  in  customs  and  training  controls  were  carried  out,  various  technical  assets  were 
procured  and  the  SBA  authorities  continue  to  share  intelligence  and  maintain  a  good 
cooperation  with  the  Turkish  Cypriot  community.  According  to  information  from  the  latter, 
4,234 third country nationals were refused entry  to the northern part of Cyprus in 2007 and 
1,030 in the first four months of 2008; 244 illegal immigrants were detained in 2007 and 150 
in the first four months of 2008; 1,155 persons were deported (via Turkey) in 2007 and 488 in 
the first four months of 2008. 

The Commission has maintained a constructive dialogue with the relevant authorities of the 
Republic  of  Cyprus  and  the  Sovereign  Base  Area  Administration  at  working  level.  Several 
meetings were held focusing in particular on the problem of illegal migration across the Line 
and  offering  the  opportunity  to  discuss  the  measures  to  be  taken  in  the  near  future.  On  this 
occasion, the representatives of the Republic of Cyprus updated the Commission on measures 
taken  during  the  reporting  period.  These  measures  included  using  the  staff  of  local  Police 
Stations  and  of  the  Aliens  and  Immigration  Department  of  the  Police  Headquarters9  and  a 
helicopter10 for the surveillance of the Line.  

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10 

Hereafter: SBA 
See Annex VI 
See Annexes VI and VIII 
In  total,  a  minimum  total  of  110  man  hours  per  day  were  used  for  patrolling  the  Line  between  the 
crossing  points  (by  241  officers,  including  local  police  staff).  This  does  not  appear  to  be  an  increase 
compared to the last reporting period. 
During the reporting period, one helicopter carried out in total 90 hours of patrols of the Line. 

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With regard to the surveillance of the Line, over the reporting period, the Republic of Cyprus 
remained reluctant to take any measure which possibly could lead to the Line taking on the 
appearance  of  an  external  border.  No  exchange  of  information  with  the  Turkish  Cypriot 
community took place. 

In  view  of  the  worryingly  high  numbers  of  illegal  immigrants,  the  Commission  is  of  the 
opinion  that  the  surveillance  of  the  Line  between  the  crossing  points  conducted  by  the 
Republic of Cyprus pursuant to Art 3 GLR and by the Sovereign Base Area Administration 
pursuant to Art 2 (5) GLR needs substantial strengthening. The Commission recommends that 
in  particular  the  authorities  of  the  Republic  of  Cyprus  take  concrete  steps  without  delay  in 
order to comply with their obligation as regards the surveillance of the Line as defined in the 
Green Line Regulation also in view of the future participation of Cyprus in the Schengen area. 
While the Green Line does not constitute an external border, the surveillance obligations of 
the  Republic  of  Cyprus  on  the  government-controlled  side  of  the  Line  should  be  met 
effectively  while  at  the  same  time  minimising  any  hindrance  to  contacts  between  the  two 
Communities. 

4. 

CROSSING OF GOODS 

Value of trade 

4.1. 
Pursuant  to  Art  8  of  the  Commission  Regulation  (EC)  1480/200411,  the  Turkish  Cypriot 
Chamber of Commerce (hereafter: TCCoC) reported on a monthly basis on the type, volume 
and value of goods for which it has issued accompanying documents.  

The authorities of the Republic of Cyprus also communicated the type, volume and value of 
goods  that  have  crossed  the  Line  in  monthly  reports  to  the  Commission.  Those  reports 
included  goods  that  entered  the  government-controlled  areas  through  the  crossing  points  of 
Pergamos and Strovilia, which are under the authority of the SBA Administration. 

According  to  reports  from  the  TCCoC,  the  total  value  of  goods  for  which  accompanying 
documents were issued in the reporting period amounted to €5,471,461 whereas the value of 
goods actually traded was about €4,473,408. 12  

In  comparison  to  the  previous  reporting  period,  figures  show  again  an  increase  in  the  total 
value of goods crossing the Line. According to the reports provided by the authorities of the 
Republic of Cyprus, the total trade value of goods which actually crossed the Line increased 
3,380,805 in the previous reporting period. It 
by almost a third to €4,473,408, compared to € 
should be noted, though, that trade in potatoes accounted for almost 30% of the overall trade 
value and is the main component of the increase in Green Line trade.13  

In  January  2008,  goods  worth  more  than  € 700.000  crossed  the  Li ne.  This  was  the  highest 
level  recorded  since  the  GLR  came  into  force.  The  main  component  was  Turkish  Cypriot 
potatoes, worth about € 350,000. 

Although  not  covered  by  the  scope  of  the  GLR,  it  may  be  noted  that  trade  from  the 
government-controlled  areas  to  the  northern  part  of  Cyprus  amounted  to  a  value  of 
€ 1,015,340  in  the  reporting  period  (thereof   € 626,533  between  February  and  April  2008) 
compared to € 1,027,688 in the previous one according to figures from the Cyprus Chamber 

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12 
13 

Commission Regulation (EC) No 1480/2004 of 10 August 2004, OJ L 272, 20.8.2004, p. 3. 
See Annexes I, II and III 
See section 4.4. below 

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of Commerce and Industry. Trade from the government-controlled areas to the northern part 
of Cyprus therefore remained about the same and amounts to less than a quarter of the trade in 
the opposite direction.14 

The  Turkish  Cypriot  community  applies  a  trade  system,  which,  in  principle,  "mirrors"  the 
restrictions of the Green Line Regulation. It, for instance, mirrors Art 6 (1) GLR in the sense 
that  goods  contained  in  the  personal  luggage  of  persons  crossing  the  Line  from  the 
government-controlled  areas  to  the  northern  part  of  Cyprus  are  exempt  from  'turnover  tax', 
'excise duty' and 'other duties', provided these goods have no commercial character and their 
is  not  always  consistently  applied.  In  the 
total  value  does  not  exceed  € 135.  This  regime 
autumn of 2007, for instance, Turkish Cypriots shopping in the government-controlled areas 
were  facing  major  problems  in  bringing  back  their  shopping  items  across  the  Line  and 
Turkish  Cypriot  potato  growers  were  largely  banned  altogether  from  bringing  back  potato 
seeds bought from Greek Cypriot traders. 

4.2. 

Type of goods  

The figures on the types of traded goods show a limited number of new products crossing the 
Line into the government-controlled areas. As in the previous reporting period, vegetables and 
wooden products and furniture constituted the main groups of products traded.15 

Trade  across  the  Line  during  the  reporting  period  was  with  three  exceptions  solely  for  the 
purpose of intra-island trade. In May 2007, two consignments of copper and aluminium scrap 
crossed the Line and were subsequently shipped to the UK and at the beginning of February 
2008, a small consignment of citrus fruits crossed the Line and was then flown to Germany to 
be  exhibited  at  a  trade  fair.  Following  a  consignment  of  Cyprus  Delights  (confectionery)  in 
December 2005 and one of aluminium scrap in April 2007, these consignments were the only 
known  cases  where  goods  crossed  the  Line  and  were  subsequently  subject  to  an  intra-
community  transaction  with  other  Member  States.  However  it  is  thought  that  some  Turkish 
Cypriot potatoes, which originally were destined for consumption in Cyprus, were repacked 
in the government-controlled areas and sold abroad. 

4.3. 

Irregularities 

Since May 2007, ten cases of irregularities have been reported in which the goods were not 
allowed to cross the Line. Reasons for non-allowance included the supplier refusing to pay the 
relevant  duties,  products  not  according  to  marking  requirements,  vegetables  found  unfit  for 
human consumption and the non-production of the obligatory accompanying documents. 

Beside  these  irregularities  directly  at  the  Line,  phytosanitary  experts  appointed  by  the 
Commission detected forged plant passports for potato seeds of EU origin. All potatoes grown 
from  these  potato  seeds  were  subsequently  banned  from  trade  in  order  to  protect  European 
consumers. 

4.4. 

Positive developments concerning movement of goods 

During  the  reporting  period,  some  positive  developments  need  to  be  noted  which  gradually 
lifted some barriers which previously used to limit trade across the Line. These developments 
include: 

•  Continued 'Round Table Meetings' of the three chambers (Cyprus Chamber of Commerce 

and Industry, CCCI, TCCoC, and Cyprus Turkish Chamber of Industry, CTCI). 

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15 

Statistics  on  credit  card  expenditure  suggest,  though,  that  Turkish  Cypriots  spent  several  millions  of 
Euro in the supermarkets and other stores in the government-controlled areas. 
See Annexes IV and V 

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•  The 'Cyprus Producer Network', a network of TC and GC producers, established with the 
aim  of  increasing  cooperation  and  collaboration  and  providing  technical  assistance, 
training  and  advice  to  ease  the  constraints  to  Green  Line  trade,  carried  out  seminars  on 
both  sides  of  the  Line,  initiated  a  bi-communal  survey,  is  about  to  launch  an  interactive 
website  and  carried  out  business-to-business  meetings  in  various  product  sectors.  This 
project, which is funded by UNDP-ACT (US funded), also aims at improving cooperation 
and collaboration between the participating chambers (CTCI, TCCoC and CCCI). 

•  In  previous  reporting  periods,  difficulties  had  been  encountered  as  far  as  the  temporary 
crossing  of  goods  was  concerned.  These  difficulties  will  be  overcome  by  the  respective 
amendments of the GLR.16 

•  In  the  past,  the  Commission  had  received  complaints  from  Turkish  Cypriot  traders 
including  particularly 
regarding  delays 
consignments  of  potatoes.  Following  measures  implemented  by  the  authorities  of  the 
Republic of Cyprus, these complaints have been dealt with.  

in  clearing  of  goods  crossing 

the  Line 

•  Starting  in  September  2007,  more  than  2878  tons  of  potatoes,  worth  more  than 
€ 1,318,480,  destined  (only)  for  consumpti on  in  the  government-controlled  areas, 
successfully crossed the Line without major obstacles. The SBA Administration has found 
a practical  arrangement with  the Republic of  Cyprus authorities to carry out the required 
phytosanitary checks. This seems to work satisfactorily. 

4.5. 

Still existing obstacles and difficulties concerning the movement of goods 

Despite  these  positive  developments,  several  obstacles  for  trade  across  the  Green  Line 
continue to exist.  

Turkish  Cypriot  commercial  vehicles  and  in  particular  lorries  and  buses  still  cannot  move 
freely through the island. The Republic of Cyprus does not accept roadworthiness certificates 
of  commercial  vehicles17  or  professional  driving  licenses18  issued  by  the  Turkish  Cypriot 
community  (although  it  does  accept  roadworthiness  certificates  for  passenger  cars).  The 
Government  had  proposed  legislation  aiming  at  facilitating  TC  lorries  to  transport  goods 
across  the  Line  by  reducing  limitations  on  TC  professional  driving  licences.  Neither  in  the 
previous  nor  in  the  present  legislative  term,  Parliament  had  taken  a  decision  on  the  issue 
(although  still  pending)  after  protests  from  the  Greek  Cypriot  truck  driver  organisation. 
Whereas on the issue of roadworthiness certificates the Government proposed to empower a 
Turkish Cypriot NGO (KAR-IS) to issue these certificates on its behalf. This proposal was not 
taken  up  by  the  Turkish  Cypriot  community.  Neither  was  a  separate  proposal  by  the 
Government  (in  cooperation  with  CCCI)  to  assist  Turkish  Cypriot  lorry  and  bus  drivers  in 
obtaining  the  normal  roadworthiness  certificates.  More  flexibility  on  both  sides  would 
enhance economic co-operation between both communities across the Line.  

Turkish  Cypriot  traders  continued  to  report  difficulties  in  stocking  supermarkets  and 
advertising their products and services in the press in the government-controlled areas. In this 
context it needs to be noted that Turkish Cypriot participation in Cyprus' International Trade 
Fair has been steadily decreasing, from 53 Turkish Cypriot traders in 2005, 16 in 2006 to only 
3 last year. This year there was no Turkish Cypriot participation at all. 

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18 

See section 2. above 
Of all Turkish Cypriot lorries with a maximum gross weight exceeding 3.5 tons 
In case of all Turkish Cypriot lorries with a maximum gross weight equal to or exceeding 7.5 tons 

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Finally, smuggling of goods across the Line remains widespread. Several informal "crossing 
points"  in  or  near  the  village  of  Pergamos  (located  partly  in  the  SBA  and  partly  in  the 
northern part of Cyprus) used by local residents and farmers as well as the traditional supply 
(Art  4  (10)  GLR)  of  the  Turkish  Cypriot  population  of  the  village  of  Pyla  (located  in  the 
Buffer  Zone)  are  particularly  difficult  to  control.  The  problem  of  smuggling  of  goods 
underlines  the  need  for  an  effective  surveillance  of  the  Line  by  the  Government  of  the 
Republic of Cyprus and for strict supervision by the Sovereign Base Area Administration of 
the nature and quantity of the goods supplied to the Turkish Cypriot population of Pyla. 

4.6. 

Facilitation of trade  

The following measures have been taken to facilitate trade in certain products: 

Potatoes 

In  January  2008,  the  Commission  organised  together  with  the  TCCoC  a  seminar  aiming  to 
raise  awareness  amongst  the  Turkish  Cypriot  traders  for  the  potato  registration  required  for 
Green Line trade. 

Potatoes  are  not  subject  to  tariffs  but  each  lorry  needs  to  be  accompanied  by  a  Report  of 
Phytosanitary  Inspection,  issued  by  independent  phytosanitary  experts  in  accordance  with 
Annex III of Commission Regulation (EC) No 1480/200419. In order to facilitate potato trade 
across the Line, the Commission ensured the permanent presence of these experts during the 
main harvest season (mid April until mid June). During other periods, their availability was 
guaranteed  within  a  few  working  days  (up  to  now,  all  of  Turkish  Cypriot  requests  for  the 
presence of a phytosanitary expert were fulfilled). 

The  Commission  has  appointed  additional  independent  phytosanitary  experts  in  light  of  the 
recent demand for their services. 

Citrus fruits 

A small consignment of citrus fruits crossed the Line in early February 2008 to be exhibited 
in  Germany.  The  annual  pre-harvest  inspection  in  autumn  2007,  again  carried  out  by 
independent  Member  States'  experts  appointed  by  the  Commission,  confirmed  the  positive 
results of previous checks. 

Honey and fish 

As reported above, on 4 May 2007, the Commission adopted a Decision lifting prohibitions 
on  the  movement  of  certain  animal  products  on  the  island  of  Cyprus  under  Council 
Regulation (EC) No 866/2004 and laying down conditions for the movement of fresh fish and 
honey across the Green Line.20 

The  Commission  appointed  independent  experts  from  Member  States  who,  in  accordance 
with Annexes I and II of the Commission Decision, inspected Turkish Cypriot fishing vessels 
from  and  collected  samples  of  honey  in  the  production  chain  for  subsequent  analyses  in 
specific EU laboratories.  

5. 

CONCLUSIONS 

The  Green  Line  Regulation  continues  to  provide  a  stable  legal  framework  for  the  free 
movement  of  Cypriots  and  other  EU  citizens  who  cross  the  line  at  the  crossing  points.  The 

19 
20 

Commission Regulation (EC) No 1480/2004 of 10 August 2004, OJ L 272, 20.8.2004, p. 3. 
Commission Decision 2007/330/EC of 4 May 2007, OJ L 123, 12.5.2007, p. 30. 

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opening of a new pedestrian crossing point at Ledra Street/Lokmaci in the old town of Nicosia 
further facilitates people-to-people contacts between the two communities. 

However, the number of third country nationals crossing the Line illegally remains an area of 
serious concern. In the reporting period, the total number of detected (or apprehended) illegal 
immigrants doubled, reaching the highest level ever. The Commission is of the opinion that 
the surveillance of the Line between the crossing points conducted by the Republic of Cyprus 
and  the  Sovereign  Base  Area  Administration  needs  substantial  strengthening  without  delay. 
However, the Republic of Cyprus remains reluctant to take any measure which possibly could 
lead to the Line taking on the appearance of an external border. 

As  regards  goods  crossing  the  Green  Line,  in  comparison  to  the  previous  reporting  period, 
reported  figures  show  again  an  increase  in  the  total  value  of  goods  crossing  the  Line. 
According to the reports provided by the authorities of the Republic of Cyprus, the total trade 
value  of  goods  which  actually  crossed  the  Line  increased  by  almost  a  third  and  was  about 
€4,473,408,  compared  to  € 3,380,805  in  the  previous  re
porting  period.  It  should  be  noted, 
though, that almost 30 % accounted for trade in potatoes.  

The overall scale of Green Line trade still remains rather limited, not least due to the restricted 
scope  of  the  Regulation.  In  the  current  reporting  period  very  few  new  products  were 
introduced. Only in three cases, goods crossed the Line and were subsequently subject to an 
intra-community transaction with another Member State. 

Tangible  positive  developments  have  taken  place  concerning  the  movement  of  goods. 
However,  several  reported  cases  confirm  that  there  are  still  many  obstacles  to  the  further 
development  of  Green  Line  trade.  Turkish  Cypriot  commercial  vehicles  and  in  particular 
lorries and buses still cannot move freely across the island since compromise solutions have 
been either rejected or delayed by one or the other community. In addition, Turkish Cypriot 
traders continued to report difficulties in stocking supermarkets and advertising their products 
and  services  in  the  press  in  the  government-controlled  areas.  Finally,  it  appears  that 
smuggling of goods across the Line remains widespread. 

The Commission has carried out various measures aiming at facilitating trade across the Line, 
particularly trade in potatoes, citrus fruits and honey and fish. 

The  overall  conclusion  is  that  the  Green  Line  Regulation  continues  to  provide  a  workable 
basis for allowing the passage of persons and goods to the government-controlled areas of the 
Republic  of  Cyprus.  The  Commission  will  continue  to  monitor  the  implementation  of  the 
Regulation. 

EN 

9 

   EN