REPORT FROM THE COMMISSION TO THE COUNCIL Annual Report on the implementation of Council Regulation (EC) 866/2004 of 29 April 2004 and the situation resulting from its application SEC(2010) 1094
Date: 2010-09-21
Institutions: European Commission
Subjects: Cyprus, accession to the European Union, activity report, application of EU law, border control, customs regulations

EN 

EN 

   EN 

 
EUROPEAN COMMISSION 

Brussels, 21.9.2010 
COM(2010) 499 final  

REPORT FROM THE COMMISSION TO THE COUNCIL 

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

SEC(2010) 1094 

EN 

   EN 

 
 
INTRODUCTION 

Council Regulation (EC) 866/2004 on a regime under Article 2 of Protocol 10 to the Act of 
Accession1  (hereafter:  Green  Line  Regulation,  GLR)  entered  into  force  on  1  May  2004.  It 
defines the terms under which provisions of 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  does  not  exercise  effective  control  and  the  areas  in  which  it  does.  In  order  to 
ensure  the  effectiveness  of  these  rules,  their  application  has  been  extended  to  the  boundary 
between these areas and the UK Eastern Sovereign Base Area (ESBA).2  

This report covers the period 1 May 2009 - 30 April 2010 but the next report will cover the 
period  from  1  May  to  31  December  2010  in  order  to  align  the  reporting  period  with  the 
calendar year (i.a. to use annual statistics). During the reporting period the Commission did 
not  propose  any  amendments  to  the  Regulation  and  did  not  take  any  new  Decisions  on 
implementing measures. 

The Commission has maintained a constructive dialogue with the relevant authorities of the 
Republic  of  Cyprus  and  the  Sovereign  Base  Area  (SBA)  Administration,  at  working  level, 
with regard to the implementation of the Regulation.  

1. 

CROSSING OF PERSONS 

1.1. 

Crossing at authorised crossing points 

The Regulation  provides a stable legal framework  for  the  free  movement  of  Cypriots,  other 
EU  citizens  and  third  country  nationals  who  cross  the  Green  Line  (hereafter  "the  Line")  at 
authorised  crossing  points.  There  was  a  slight  fall  in  the  number  of  Greek  Cypriots  and 
Turkish  Cypriots  crossing  compared  with  the  previous  year.  According  to  data  from  the 
Republic  of  Cyprus,  670,910  (previous:  730,310)  crossings  by  Greek  Cypriots  in  175,671 
vehicles  (previous:  193,909)  were  noted  from  government-controlled  areas  to  the  northern 
part of Cyprus and 1,185,073 (previous: 1,287,126) crossings by Turkish Cypriots in 424,537 
vehicles  (previous:  451,334)  from  the  northern  part  of  Cyprus  to  the  government-controlled 
areas during the reporting period.3 However, the number of non-Cypriot EU citizens and third 
country nationals crossing the line increased by 66%. According to data from the Republic of 
Cyprus Police (hereafter: CYPOL), during the reporting period a further 1,228,880 crossings 
were  effected  by  non-Cypriot  EU  citizens  and  third  country  nationals  (previous  739,097). 
72% of these crossings (889,081) occurred at the Ledra Street pedestrian crossing point which 
opened  in  April  2008.  The  Ledra  Street  crossing  point  accounted  for  the  vast  majority  of 
crossings by non-Cypriots (primarily tourists) during the period. 

These figures are broadly in line with those gathered from the Turkish Cypriot community i.e. 
630,116  crossings  by  Greek  Cypriots  in  202,352  vehicles  from  the  government-controlled 

1 

2 
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) – known as the "Green Line" Regulation. 
See 3rd recital of the Green Line Regulation  
The authorities of the Republic of Cyprus do not keep records for the return of Greek Cypriots to the 
government-controlled areas or the return of Turkish Cypriots to the northern part of Cyprus (see Annex 
VII).  

EN 

2 

   EN 

                                                 
areas to the northern part of Cyprus and 1,489,466 crossings by Turkish Cypriots in 564,791 
vehicles from the northern part of Cyprus to the government-controlled areas. 

The above mentioned CYPOL figures, however, do not include data on persons and vehicles 
crossing at the Pergamos and Strovilia crossing points, from the northern part of Cyprus into 
the  SBA.4  No  detailed  statistics  are  kept  by  the  SBA  administration  for  these  two  crossing 
points. However SBA estimates, based on information from Turkish Cypriot sources, report 
97,395 Greek Cypriots crossed to the northern part of Cyprus and 556,382 Turkish Cypriots 
crossed  to  the  SBA.  There  is  no  information  as  to  whether  these  Turkish  Cypriots  travelled 
onwards from the SBA to the government-controlled area. 

The number of CYPOL personnel working directly at the crossing points fell from 67 in 2008 
to 63 in 2009 and to 59 in 2010. No major incidents were reported as regards daily crossings. 

1.2. 

Illegal migration across the Green Line and asylum 

CYPOL  figures  from  May  2009  to  April  2010  indicate  a  54%  decrease  in  illegal  migration 
across  the  Line  from  the  northern  part  of  Cyprus  to  the  government-controlled  areas.  2,546 
illegal  migrants  were  apprehended  within  the  government-controlled  areas  (excluding  those 
refused  crossing  at  Green  Line  crossing  points)  down  from  5,560  illegal  immigrants  in  the 
previous period. 11 persons directly entered the government-controlled areas and 16 persons 
entered  via  the  Eastern  SBA,  bringing  the  total  number  of  apprehended  illegal  migrants  to 
2,573. CYPOL indicated as a probable reason the decrease in employment prospects  due to 
the  economic  slowdown  in  Cyprus.  The  majority  of  illegal  immigrants  apprehended  were 
citizens  of  Syria,  Iran,  Georgia,  Pakistan,  Bangladesh,  Republic  of  Moldova5  as  well  as  the 
occupied Palestinian territory (Annex VIII). Illegal migrants are normally apprehended during 
controls  along  the  Green  Line  and  at  airports  when  seeking  to  leave  Cyprus.  Third  country 
nationals  seeking  international  protection  are  normally  identified  at  police  stations  while 
applying for asylum.  

CYPOL's  assessment  of  the  entry  route  of  illegal  migrants  into  the  government-controlled 
areas is based on the same criteria as in previous years, primarily through documents (visas, 
passport entry/exit stamps from Turkey or a "visa" or a "residence permit" of the “TRNC”), 
statements  made  by  the  immigrants  but  also  other  evidence  such  as  Turkish  Cypriot 
newspapers and Turkish bank notes. 

1,311 persons applied for asylum in the Republic of Cyprus. New asylum procedures enabled 
the  shortening  of  the  process  from  six  to  three  months.  However,  no  person  who  entered 
government-controlled areas during the period has been granted refugee status.6 

Most illegal migrants arrive in government-controlled areas via Turkey and the northern part 
of  Cyprus  (four  airlines  from  11  airports  in  Turkey;  ferries  from  four  ports  in  Turkey  to 
Kyrenia and Famagusta). CYPOL also reported cases of migrants arriving in the Republic of 
Cyprus on fishing and speedboats (reportedly involving payments of up to €2,000 to people 
smugglers).  

4 
5 
6 

The GLR does not contain reporting obligations for this traffic. 
Henceforth Moldova 
Several  persons  who  entered  the  government-controlled  areas  during  the  previous  reporting  reporting 
period were granted refugee status during the current reporting period. 

EN 

3 

   EN 

                                                 
According to information from the Turkish Cypriot community, 72 illegal Syrian immigrants 
were apprehended in the northern part of Cyprus. 2 Syrian citizens were refused permission to 
cross the Line into the northern part of Cyprus at official crossing points. During the reference 
period, 619 persons were "deported" from the northern part of Cyprus.7 

The  Latakia  (Syria)  –  Famagusta  ferry  ran  at  irregular  intervals,  i.e.  16  times  between  15 
April  and  04  October  2009.  During  this  period  approximately  1,600  persons  (75%  Syrian 
citizens) used this to reach the northern part of Cyprus, avoiding transit through Turkey. The 
Republic  of  Cyprus  authorities  suspect  that  a  large  number  of  illegal  immigrants  used  this 
route.  The  ferry  link  restarted  in  June  2010.  The  authorities  continue  to  urge  the  Syrian 
Government  to  close  the  ferry  link  since  the  operation  of  the  port  of  Famagusta  has  been 
declared illegal by the Government of the Republic of Cyprus. 

Precise  data  are  not  available  for  persons  sent  back  from  crossing  points,  but  CYPOL 
estimates 2,000 during the period. 

No direct co-operation exists on police and immigration between the Republic of Cyprus and 
the Turkish Cypriot community. However, the two sides meet within the framework of a bi-
communal technical committee on crime and criminal matters under UN auspices, the office 
of  which  is  located  in  the  buffer  zone  at  Nicosia  airport.  It  is  a  mechanism  for  information 
sharing and joint initiatives on crime and criminal matters. During the reporting period, one 
case was jointly treated. 

CYPOL  described  co-operation  with  other  relevant  governmental  departments  and  the  SBA 
administration as very good. 316 cases of illegal employment were detected in joint "labour 
inspections" with the Ministry of Labour and Social Insurance. 

The CYPOL Aliens and Immigration Department employs 315 officers who have 36 vehicles 
at  their  disposal.  In  addition, two  fully  operational  helicopters  are  available  for  surveillance 
flights. At crossing points ultra-violet equipment is available as well as connections to central 
Government  databases  (e.g.  “Stop-List”,  Civil  Registry,  Vehicles  Registration,  etc.)  and 
connections to the CYPOL intranet system and the internet. 

Control  operations  along  the  Line  include  regular  day  and  night  air  and  land  patrols.  Land 
patrols (mobile and on foot) are carried out by officers from local police stations which have 
jurisdiction at areas in the vicinity of the Line8 Additionally, officers from the CYPOL Aliens 
& Immigration Department and CYPOL Divisional Squads  patrol the Line  daily.  A  Special 
CYPOL Squad from Larnaka Police Division is permanently present in the vulnerable area of 
infra  under  ESBA).  The  CYPOL  Aviation  Unit  carried  out 
Pergamos–Pyla  (see 
approximately 115 hours helicopter patrol flights across the Line during the period. Both land 
and air patrols are coordinated by CYPOL Headquarters. 

7 
8 

Turkey: 351, Syria:104, Moldova: 57, Iran: 12, Nigeria: 10  
The time spent by local police stations on land patrolling along the “green line” during a 24 hour-period 
is approximately 120 man/hours. 

EN 

4 

   EN 

                                                 
As  the  Line  is  not  considered  an  external  border,  purchase  of  equipment  is  not  eligible  for 
funding  under  the  External  Border  Fund9  However,  CYPOL  staff  participate  in  all 
FRONTEX10 training programmes e.g. on detection of forged personal documents. 

Eastern Sovereign Base Area (ESBA) 

In general, illegal immigration via the ESBA has decreased during the period. SBA officers 
describe cooperation between the Republic of Cyprus and SBA Customs and Immigration in 
this area as excellent. During the reporting period, 1,174 persons were refused crossing, the 
majority being Turkish citizens. Other foreigners were tourists from the USA, Australia, Iran, 
Russia, Israel, Belarus and Serbia who entered via Tymbou/Ercan airport in the northern part 
of Cyprus and were not aware of Republic of Cyprus entry requirements11 

A total of 17 illegal immigrants were apprehended within the ESBA, of whom six entered the 
government-controlled areas legally but stayed  on  after their visas  expired12. The remaining 
11  entered  the  island  through  the  northern  part  of  Cyprus  and  crossed  the  Line  illegally13. 
Four of them entered the northern part of Cyprus through Tymbou/Ercan airport. 

Away  from  the  crossing  points,  the  SBA  Police  conducts  irregular,  risk-based,  intelligence-
led patrols to counter illegal migration. These patrols are supplemented by patrols from SBA 
Customs  and  military  assets.  The  SBA  Customs  service  currently  has  approximately  40 
operational  staff  working  a  24/7  shift  pattern  365  days  a  year  to  cover  the  two  approved 
crossing points at Pergamos and Strovilia. 

Between 1 May 2009 and 31 March 2010, 385 patrols have been carried out along the SBA - 
Green  Line  area.  Normally,  patrols  are  several  times  a  day.  SBA  Customs  have  thermal 
imaging equipment (cameras, recording devices, covert vehicles) to detect movement across 
the  Line.  This  equipment  is  deployed  on  a  regular  basis  in  a  variety  of  high  risk  locations. 
Equipment is also available to detect traces of narcotics and explosives. Drug detection dogs 
are also deployed at crossing points. Ultra-violet passport readers are used at checkpoints. 

Several unauthorised crossing points in or near the village of Pergamos (located partly in the 
SBA  and  partly  in  the  northern  part  of  Cyprus),  which  are  still  used  by  local  residents  and 
farmers,  are  particularly  difficult  to  control.  As  mentioned  in  previous  Green  Line  reports, 
these  unauthorised  "crossing  points"  remain  an  area  of  concern.  This  issue  needs  to  be 
urgently addressed by the SBA in line with the requirements of Article 5 (2) of Protocol No 3 
to the 2003 Act of Accession.14 

9 

10 
11 
12 
13 
14 

Decision  No  574/2007/EC  of  the  European  Parliament  and  of  the  Council  establishing  the  External 
Borders  Fund  for  the  period  2007  to  2013  as  part  of  the  General  programme  "Solidarity  and 
Management of Migration Flows", OJ L 144 of 6.6.2007, p.22  
European Agency for the Management of Operational Cooperation at the External Borders 
Turkey: 958, USA: 38, Australia: 31, Iran: 27, Russia: 14, Israel: 12, Belarus: 12, Serbia: 10 
Egypt: 2, Syria:1, Nepal: 2, China: 1 
Palestine: 4, Syria: 2, Iraq: 3, Egypt:1, India: 1 
OJ L 236, 23.9.2003, p. 940 

EN 

5 

   EN 

                                                 
2. 

CROSSING OF GOODS 

2.1. 

Value of trade 

Pursuant  to  Art  8  of  the  Commission  Regulation  (EC)  1480/200415,  the  Turkish  Cypriot 
Chamber  of  Commerce  (hereafter:  TCCoC)  as  well  as  the  authorities  of  the  Republic  of 
Cyprus  reported  on  a  monthly  basis  on  the  type,  volume  and  value  of  goods  for  which 
accompanying  documents  were  issued.  Both  reports  include  goods  having  crossed  to  the 
government-controlled areas through the crossing points of Pergamos and Strovilia 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  period  amounted  to  €6,267,082  wherea s  the  value  of  goods 
actually traded was €5,579,720. 16 

According to the reports provided by the authorities of the Republic of Cyprus, the total trade 
value  of  goods  which  actually  crossed  the  Line  decreased  by  16.8%  (€878,702)  to 
€5,232,328 17, compared to €6,111,030 in the previous pe riod, primarily due to a considerable 
fall in potato trade. In previous reporting periods since 2007, potatoes were the largest single 
component  of  Green  Line  trade  (up  to  30%  of  overall  trade).  However,  due  to  weather 
problems  and  non-availability  of  certified  seed  potatoes  for  the  second  crop  this  figure 
dropped to 14% during this reporting period. 

May and June 2009 were saw the highest trade volume (€726,836 and €891,830), with first 
crop seed potatoes being the main trade product during these two months, i.e. 40% and 47% 
respectively of the monthly trade volume. The trade volume dropped sharply to €342,033 in 
August and fluctuated between €240,000 and €480,000 until April 2010.  

Although not covered by the scope of the GLR, trade from the government-controlled areas to 
the  northern  part  of  Cyprus  decreased  to  €708,196  in  the 
reporting  period  (down  from 
€1,095,060),  according  to  figures  from  the  Cypr us  Chamber  of  Commerce  and  Industry. 
Trade  from  government-controlled  areas  to  the  northern  part  of  Cyprus  therefore  represents 
13.5%  of  the  trade  in  the  opposite  direction  (17.9%  in  the  previous  reporting  period). 
However,  it  is  estimated  that  Turkish  Cypriots  purchased  goods  worth  €43  million  in  the 
wholesale and retail sector in the government-controlled areas, in 2009, bringing them to the 
northern  part  of  Cyprus  as  part  of  their  personal  luggage.  The  same  amount  was  spent  by 
Greek Cypriots in the wholesale and retail sector in the northern part of Cyprus.18 

The  Turkish  Cypriot  community  continues  to  apply  a  trade  regime,  which,  in  principle, 
"mirrors"  the  restrictions  of  the  GLR.  However,  this  regime  is  not  always  consistently 
applied,  making  it  difficult  to  establish  sustainable  trade  relations.  Protection  of  local 
businesses  is  openly  stated  by  the  Turkish  Cypriot  side  as  the  main  reason.  On  several 
occasions, Greek Cypriot traders were not permitted to bring products into the northern part of 
Cyprus  through  the  Green  Line.  Their  objections  to  this  treatment  were  reported  to  the 
Commission via the Cyprus Chamber of Commerce and Industry. 

15 
16 
17 

18 

Commission Regulation (EC) No 1480/2004 of 10 August 2004, OJ L 272, 20.8.2004, p. 3. 
See Annexes I, II and III of this report  
0.09%  of  Republic  of  Cyprus  total  imports  (€5,654  million  in  2009,  source  Statistical  Service  of 
Cyprus) 
Source: Economic Interdependence Project - Peace Economics Consortium, Nicosia 

EN 

6 

   EN 

                                                 
2.2. 

Type of goods 

From May 2009 to April 2010 stone articles such as marbles, bricks and stone were the most 
traded  items,  followed  by  vegetables,  fresh  fish  and  building  materials.19  The  trade  in  fresh 
fish  which  was  introduced  only  during  the  previous  reporting  period  grew  by  almost  150% 
from €307,000 to €760,000. 

97% of the trade volume across the Line was intra-island trade. As of December 2009, metal 
scrap  (copper,  aluminium,  steel)  worth  €41,206  was  sold  to  the  United  Kingdom  and  steel 
scrap to India for a trade value of €86,470. Thes e transactions required the involvement of a 
company  registered  in  the  government-controlled  areas  for  intra-EU  transactions  and  third 
country export  formalities.  The Turkish Cypriot Chamber of Commerce reported that in the 
case  of  intra-EU  transactions  VAT  payments  were  due  twice,  in  the  government-controlled 
areas  as  well  as  in  the  Member  State  of  final  destination  of  the  goods.  The  Commission  is 
currently analysing the issue. 

2.3. 

Irregularities 

During the reporting period, 24 cases of irregularities involving a total trade value of €34,110 
were reported by the Republic of Cyprus authorities which represents less than 1% of the total 
value of Green Line trade. The goods concerned were not allowed to cross the Line. In three 
cases, fresh fish was confiscated and destroyed as the consignments did not meet food safety 
standards and were unfit for human consumption. In one of these cases, the vehicle and boxes 
were considered as not being according to EU packaging regulations (total related trade value 
€2,016).  Generally,  according  to  EU  procedures ,  non-compliant  consignments  of  animal 
products such as fish are returned to the veterinary departments of the country of origin. Since 
no  such  department  is  recognized  in  the  northern  part  of  Cyprus,  the  fish  in  question  was 
confiscated and destroyed at the checkpoint. Consideration should be given to returning such 
irregular consignments to the Turkish Cypriot Chamber of Commerce in future.  

In six cases of scrap transport, the carrier had not obtained waste management permits from 
the  competent  Republic  of  Cyprus  Environmental  Department.  Six  transports  of  stones  and 
glass  were  not  accompanied  by  the  necessary  documentation,  while  in  eight  cases 
construction materials were not labelled according to CE marking requirements. 

In  the  above-mentioned  cases  of  construction  materials  the  Turkish  Cypriot  Chamber  of 
Commerce  indicated  inconsistencies  in  the  treatment  of  partial  consignments.  It  was  noted 
that partial consignments of construction materials were refused due to missing CE markings 
while other partial deliveries of the same lot were allowed to cross. 

2.4. 

Still existing obstacles and difficulties concerning the movement of goods 

Obstacles to trade across the Green Line persist. The Republic of Cyprus authorities consider 
the  issue  of  professional  driving  licences  and  roadworthiness  certificates  mentioned  in 
previous  reports  as  settled.  The  Republic  of  Cyprus  authorities  require  driving  licence  and 
roadworthiness certificate for lorries to be obtained in the government-controlled areas, free 
of charge, but the Turkish Cypriot Chamber of Commerce does not consider this requirement 
justified and points to the fact that in 2009 and 2010 out of more than 3,000 Turkish Cypriot 
lorry drivers only 48 applied for the driving licence test, of which 39 passed. No applications 

19 

See Annexes IV and V of this report 

EN 

7 

   EN 

                                                 
were  filed  for  roadworthiness  certificates.  As  a result,  Turkish  Cypriot  commercial  vehicles 
and in particular lorries and busses above 7.5 tonnes can still not move freely throughout the 
island.  The  Republic  of  Cyprus  authorities  do  not  recognize  documents  as  for  private 
passenger  vehicles.  This  causes  an  economic  disadvantage  for  Turkish  Cypriot  transport 
companies since for transports above 7.5 tonnes they have to mostly use trucks registered in 
government-controlled areas which (with a Turkish Cypriot car insurance) can circulate freely 
also in the northern part. Facilitation of access for Turkish Cypriot lorries and busses to the 
government-controlled areas would contribute to a better balanced economic development of 
the transport sector in the northern part of Cyprus. 

No progress can be reported either with regard to other trade. As in previous years, Turkish 
Cypriot traders continued to report difficulties in having their products stocked in shops and 
advertising their products and services in the press in the government-controlled areas. These 
difficulties  reflect  a  widespread  reluctance  among  Greek  Cypriots  to  purchase  Turkish 
Cypriot branded products and as such constitute a psychological barrier to trade.20 Smuggling 
of  goods  across  the  Line  has  decreased  but  remains  widespread  reflecting  the  geographical 
nature  of  the  Line  which  lends  itself  to  clandestine  activity  along  its  whole  length.  Control 
operations take place in areas near the Line in order to tackle particular mainly seasonal issues 
such  as  the  transportation  of  game/wild  birds  or  fire  crackers  (also  via  the  ESBA)  to  the 
government-controlled  areas.  Other  items  seized  include  cigarettes,  alcohol,  commercial 
quantities  of  fresh  fish  and  snails  as  well  as  counterfeit  textiles.  However,  according  to 
Republic of Cyprus authorities, the volume of smuggling has decreased due to reduced price 
differentials.  CYPOL  as  well  as  ESBA  patrols  along  the  Line  are  dual  function:  anti-
smuggling  as  well  as  illegal  immigration  controls.  The  number  of  criminal  cases  filed  in 
district courts for smuggling was 12 in 2008, 11 in 2009 and 7 in 2010 (until March). Most 
goods  were  detected  at  authorized  crossing  points:  Pyla,  SBA,  buffer  zone  near  Zodia  and 
Potamia. 

Concerning  the  traditional  supply  of  the  Turkish  Cypriot  population  of  the  village  of  Pyla, 
located  in  the  Buffer  Zone  (Art  4  (10)  GLR),  the  quantities  of  construction  materials,  fish, 
cigarettes  etc.  are  monitored  and  recorded  by  the  SBA  administration.  The  Turkish  Cypriot 
neighbouring  village  of  Pergamos  is  divided  by  the  Green  Line  and  those  Turkish  Cypriots 
living  on  the  SBA  side  seek  the  same  treatment  as  Pyla  with  regard  to  the  ‘movement  of 
goods’ across the Line but this is not allowed under the GLR which only refers to Pyla. 

2.5. 

Facilitation of trade 

The  Commission  continues  to  seek  ways  of  enhancing  trade  across  the  Green  Line.  A 
Commission  decision  lifting  the  prohibition  of  the  Green  Line  regulation  to  allow  trade  in 
additional new agricultural products, with the main focus being on dairy products (milk and 
cheese,  yoghourt,  whey),  could  be  envisaged  if  the  results  of  the  mission  of  independent 
experts  checking  whether  dairy  products  can  meet  EU  requirements  is  favourable.  Other 
products for which the Turkish Cypriot Chamber of Commerce has indicated interest are fish 
from fish farms and snails. 

The  Commission  is  also  examining  the  possibility  of  amending  the  implementing  rules21  of 
the  GLR  by  lifting  the  obligation  that  potatoes  must  be  grown  directly  from  certified  seed 

20 

21 

Cf  Hatay,  Mullen,  Kalimeri,  "Intra-island  trade  in  Cyprus –  Obstacles, oppositions  and  psychological 
barriers", Prio Cyprus Centre 2008. 
Article 3(1) Commission Regulation (EC) 1480/2004 of 10 August 2004. 

EN 

8 

   EN 

                                                 
potatoes. This  would  allow trade of second crop potatoes produced under the control of the 
independent  phytosanitary  experts  appointed  by  the  Commission  to  provide  the  necessary 
assurance with regard to the identity and the health status of this second crop. 

As mentioned above under point 2.3, certain consignments with construction materials were 
refused  crossing  the  Line  due  to  missing  CE  markings.  Many  Turkish  Cypriot  traders  were 
not familiar with  the new (December 2009) Republic of Cyprus procedure, for getting their 
products CE-certified. The Commission organized a study tour to Brussels for representatives 
of  the  Turkish  Cypriot  Chamber  of  Commerce to  receive  more  information  on  CE  marking 
requirements  and  a  TAIEX22  seminar  in  Nicosia  to  provide  detailed  information  on  CE 
markings  to  Turkish  Cypriot  traders.  Concerning  language  requirements  for  accompanying 
documents, the Cyprus Market Surveillance Authority agreed to accept documents in English 
or English translations of Turkish originals. 

Under  the  auspices  of  the  USAID-funded  EDGE  project,  various  actions  are  planned  to 
facilitate  Green  Line  trade.  These  include  a  bi-communal  Arbitration  Center,  business 
facilitation events and detailed trade analyses to discover further trade potential. 

3. 

CONCLUSIONS 

Control  of  the  Green  Line  at  the  authorised  crossing  points  is  satisfactory.  During  the 
reporting period the number of apprehended illegal immigrants fell by more than 50% from 
the previous year's level but the illegal crossing of third country nationals still remains an area 
of  concern.  The  Commission  assesses  that  further  strengthening  of  the  surveillance  of  the 
Line  between  the  crossing  points  conducted  by  the  Republic  of  Cyprus  and  the  Sovereign 
Base Area Administration would be important to help tackle the problem of illegal migration. 
The Republic of Cyprus remains careful to avoid any measures which could lead to the Line 
taking on the appearance of an external border. 

The  unauthorised  crossing  points  in  the  SBA  areas  remain  an  area  of  concern.  This  issue 
needs to be urgently addressed by the SBA.  

During the current reporting period the value of trade across the Line decreased for the first 
time since the coming into force of the GLR in 2004 (by 17% down to €5,232,328 compared 
to €6,111,030 in the previous  reporting period). The main reason for this decrease is the fall in 
the potato trade. Excluding the trade in potatoes (amounting to some €700,000), Green Line 
trade  was  stable.  The  most  traded  products  were  stone  articles,  vegetables,  fresh  fish  and 
building materials. The overall scale of Green Line trade still remains limited, in part due to 
the restricted scope of the Regulation itself. 

Obstacles  to  trade  remain.  Turkish  Cypriot  commercial  vehicles,  in  particular  lorries  above 
7.5  tonnes  and  buses,  cannot  move  freely  across  the  island.  No  further  progress  can  be 
reported with regard to other non-tariff trade barriers.  

Finally,  it  appears  that  smuggling  of  goods  across  the  Line  has  decreased  but  still  remains 
widespread. 

22 

EU Technical Assistance and Information Exchange instrument 

EN 

9 

   EN 

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

EN 

10 

   EN