REPORT FROM THE COMMISSION TO THE COUNCIL Seventh Report on the implementation of Council Regulation (EC) 866/2004 of 29 April 2004 and the situation resulting from its application covering the period 1 May until December 2010
Date: 2011-05-30
Institutions: European Commission
Subjects: Cyprus, accession to the European Union, border control, customs regulations, free movement of goods, free movement of persons, freedom to provide services, illegal migration, right of asylum

EUROPEAN COMMISSION 

Brussels, 30.5.2011 
COM(2011) 284 final 

REPORT FROM THE COMMISSION TO THE COUNCIL 

Seventh Report on the implementation of Council Regulation (EC) 866/2004 of 29 April 
2004 and the situation resulting from its application covering the period 1 May until 
December 2010 

{SEC(2011) 596 final} 

 
 
 
 
  
 
REPORT FROM THE COMMISSION TO THE COUNCIL 

Seventh Report on the implementation of Council Regulation (EC) 866/2004 of 29 April 
2004 and the situation resulting from its application covering the period 1 May until 
December 2010 

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  

The usual reporting period in previous years covered the period of 1 May of a given year until 
30  April  of  the  following  year.  For  practical  reasons,  it  was  decided  to  align  the  reporting 
period  with  the  calendar  year  (i.a.  to  use  annual  statistics).  This  report  covers  therefore  the 
period 1 May 2010 to 31 December 2010 instead of 1 May 2010 to 30 April 2011. For the 
purpose of comparison, previous figures from 1 May 2009 to 31 December 2009 were used. 

During  the  reporting  period  the  Commission  did  not  propose  any  amendments  to  the 
Regulation and did not take any new Decisions on implementing measures. 

On 14 October 2010 a new crossing point between Kato Pyrgos and Karavostasi3 (also known 
as Limnitis/Yesilirmak crossing point) was opened by the leaders of both communities with 
the participation  of  Commissioner  Füle and UN representatives. The EU contribution to the 
upgrading of the road between these two villages amounted to €2,5 million. 

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,  thus  continuing  the  trend  observed  during  the  previous  reporting 

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  
Crossing points as indicated in annex 1 of the Green Line Regulation 

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period.  According  to  data  from  the  Republic  of  Cyprus,  415,155  (previous:  489,487) 
crossings  by  Greek  Cypriots  in  120,673  vehicles  (previous:  126,029)  were  noted  from 
government-controlled areas to the northern part of Cyprus and 738,337 (previous: 825,824) 
crossings by Turkish Cypriots in 254,070 vehicles (previous: 300,132) from the northern part 
of Cyprus to the government-controlled areas during the reporting period.4  

However, the number of non-Cypriot EU citizens and third country nationals crossing the line 
decreased  by  56%,  which  is  a  sharp  reversal  of  the  trend  observed  in  the  previous  report. 
According  to  data  from  the  Republic  of  Cyprus  Police  (hereafter:  CYPOL),  during  the 
reporting period a further 449,861 crossings were effected by EU citizens other than Cypriots 
and third country nationals (previous 1,014,275). 68% of these crossings (303,820) occurred 
at  the  Ledra  Street  pedestrian  crossing  point  which  opened  in  April  2008.  The  Ledra  Street 
crossing  point  continued  to  account  for  the  vast  majority  of  crossings  by  non-Cypriots 
(primarily tourists) during the period. 

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 ESBA.5 No detailed statistics are kept by the ESBA administration for these two crossing 
points. However ESBA estimates, based on information from Turkish Cypriot sources, report 
some  66,000  Greek  Cypriots  crossed  to  the  northern  part  of  Cyprus  and  416,000  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.  Due  to  the  opening  of  the  new  Limnitis  crossing  point 
(14/10/2010) this number was increased to 73. No major incidents were reported as regards 
daily crossings. 

1.2. 

Irregular migration across the Green Line and asylum 

CYPOL  figures  from  May  to  December  2010  indicate  a  further  decrease  in  irregular 
migration  across  the  Line  from  the  northern  part  of  Cyprus  to  the  government-controlled 
areas.  During  these  eight  months,  1,196  irregular  migrants  were  apprehended  within  the 
government-controlled  areas  (excluding  those  who  were  not  allowed  to  cross  at  Green  Line 
crossing points). During the previous 12 months reporting period 2,546 irregular immigrants 
were apprehended.6 No irregular immigrants directly entered the government-controlled areas 
and  13  persons  entered  via  the  Eastern  SBA,  bringing  the  total  number  of  apprehended 
irregular  migrants  to  1,209.  CYPOL  indicated  as  a  probable  reason  the  decrease  in 
employment  prospects  due  to  the  economic  slowdown  in  Cyprus.  The  majority  of  irregular 
immigrants  apprehended  were  ia.  citizens  of  Syria,  occupied  Palestinian  territory  and  Iran 
(Annex VIII). Irregular 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.  

4 

5 
6 

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).  
The GLR does not contain reporting obligations for this traffic. 
No figures were available on an eight months basis for May to December 2009 

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CYPOL's assessment of the entry route of irregular 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  "Turkish 
Republic of Northern Cyprus" (“TRNC”) statements made by the immigrants but also other 
evidence such as no ID documents, Turkish Cypriot newspapers and Turkish bank notes. 

617  (59,6%)  persons  applied  for  asylum  in  the  Republic  of  Cyprus.  Asylum  procedures 
established  during  the  previous  reporting  period  enabled  the  shortening  of  the  process  from 
six  to  three  months.  No  person  who  crossed  to  the  government-controlled  areas  during  the 
reporting period has been granted refugee status7.  

Most  irregular  migrants  arrive  in  government-controlled  areas  via  Turkey  and  the  northern 
part of Cyprus. CYPOL also reported cases of irregular migrants or irregularly arriving in the 
Republic  of  Cyprus  on  fishing  and  speedboats  disembarking  usually  in  the  open  coastal 
regions north of Famagusta. 

The Latakia (Syria) – Famagusta ferry ran at irregular intervals, i.e. 14 times between 7 June 
and 16 September 2010. During this period some 491 persons (vast majority Syrian citizens) 
used this to reach the northern part of Cyprus. The Republic of Cyprus authorities suspect that 
a large number of irregular immigrants used this route.  The authorities continue to urge the 
Syrian Government to close the ferry link since the the port of Famagusta has been declared 
closed by the Government of the Republic of Cyprus.  

Precise data are not available for persons sent back from crossing points 

No direct co-operation exists on police and immigration between the Republic of Cyprus and 
the  Turkish  Cypriot  community.  However,  representatives  from  the  two  communities  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  the  former  Nicosia 
airport. The Technical Committee on Crime and Criminal Mattes is one of seven specialized 
committees formed as confidence building measures between the two Communities with the 
support  of  the  UN  and  is  a  direct  result  of  an  agreement  reached  between  the  two  Cypriot 
leaders on 21 May 2008. It is a mechanism for information sharing and joint inititiatives on 
crime and criminal matters. 

CYPOL described co-operation with other relevant governmental departments and the ESBA 
administration as very good. 

Eastern Sovereign Base Area (ESBA) 

In general, irregular immigration via the ESBA has decreased during the period. SBA officers 
continue  to  describe  cooperation  between  the  Republic  of  Cyprus  and  SBA  Customs  and 
Immigration  in  this  area  as  excellent.  During  the  reporting  period,  953  persons  were  not 
allowed  to  cross,  the  majority  being  Turkish  citizens  who  are  living  in  the  non  government 
controlled  areas.  Other  foreigners  were  tourists  from  Canada,  Ukraine,  the  USA,  Australia, 
Russia,  Iran  and  Jordan  who  entered  via  the  northern  part  of  Cyprus.  These  persons  were 

7 

Several persons who entered the government controlled areas during the previous reporting period were 
granted refugee status during the current reporting period 

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directed  to  the  Nicosia  crossing  point  'Agios  Dometios'  to  process  for  Republic  of  Cyprus 
entry requirements8 

A total of 13 irregular immigrants were apprehended within the ESBA9, of whom eight had 
entered  the  government-controlled  areas  legally  but  stayed  on  after  their  visas  had  expired. 
The  remaining  5  entered  the  island  in  the  northern  part  of  Cyprus  and  crossed  the  Line 
irregularly.  

Away  from  the  crossing  points,  the  SBA  Police  conducts  irregular,  risk-based,  intelligence-
led  patrols  to  counter  irregular  migration.  These  patrols  are  supplemented  by  patrols  from 
SBA Customs and military assets. 

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.10 

2. 

CROSSING OF GOODS 

2.1. 

Value of trade 

Pursuant  to  Art  8  of  the  Commission  Regulation  (EC)  1480/200411,  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  the 
government-controlled areas through the crossing points of Pergamos and Strovilia under the 
authority of the SBA Administration. 

According  to  reports  from  the  Turkish  Cypriot  Chamber  of  Commerce  (TCCoC),  the  total 
value  of  goods  for  which  accompanying  documents  were  issued  in  the  period  amounted  to 
€5,312,798 whereas the value of goods  actually traded was €4,503,793. 12  

According to the reports provided by the authorities of the Republic of Cyprus, the total trade 
value of goods which actually crossed the Line continued to further decrease by 1.5% from 
13, primarily due to an almost complete fall-
€3,920,930 in the previous period to €3,861,834 
out 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  very  wet 
weather in spring 2010 and the non-availability of certified seed potatoes for the second crop 
a small consignment of potatoes (€166,320) was traded in November. Accordingly, the potato 
trade accounted for only 4% of the overall trade volume during this reporting period. 

8 
9 
10 
11 
12 
13 

i.a: Turkey: 721, Canada: 51, Ukraine: 24, USA: 23, Australia: 12, Russia:10, Iran:7, Jordan:7 
China: 3, Nigeria: 3, India: 2, Pakistan:1, Bangladesh: 1, Nepal: 1, Iran: 1, Turkey: 1 
OJ L 236, 23.9.2003, p. 940 
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  
0.06% of Republic of Cyprus total imports (6,461 million in 2010, source Statistical Service of Cyprus) 

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Although not covered by the scope of the GLR, trade from the government-controlled areas to 
the  northern  part  of  Cyprus  increased  significantly  to  €728,578  in  the  reporting  period  (up 
from  €408,414)  during  the  same  period  in  2 009,  according  to  figures  from  the  Cyprus 
Chamber of Commerce and Industry. Trade from government-controlled areas to the northern 
part  of  Cyprus  therefore  represents  19%  of  the  trade  in  the  opposite  direction  (10%  in  the 
previous period).  

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.  

2.2. 

Type of goods 

From May 2010 to December 2010 stone articles such as marbles, bricks and stone were the 
most traded items followed by fresh fish and building materials.14  

96% of the trade volume across the Line was intra-island trade. The remaining 4% were sold 
to the United Kingdom in form of metal scrap (copper, aluminium, steel) worth €17,693 and 
to India in form of steel scrap for a trade value of €123,788. These transactions required the 
involvement  of  a  company  registered  in  the  government-controlled  areas  for  intra-EU 
transactions and third country export formalities. 

2.3. 

Irregularities 

During the reporting period, 9 cases of irregularities involving a total trade value of €15,900 
were reported by the Republic of Cyprus authorities. The goods concerned were not allowed 
to cross the Line for various administrative reasons (quantity or nature of goods not according 
to documents or documents missing).  

In  two  cases,  considerable  quantities  of  pesticides  were  detected  in  vegetables  to  be  traded 
across  the  line.  The  European  Commission  immediately  informed  the  Turkish  Cypriot 
Chamber  of  Commerce  of  these  incidents.  According  to  the  latter  measures  will  be 
undertaken to prevent similar incidents in future. 

2.4. 

Still existing obstacles and difficulties concerning the movement of goods 

Obstacles  to  trade  across  the  Green  Line  continue  to  persist.  As  reported  in  the  previous 
report,  the  issue  of  Turkish  Cypriot  lorries  crossing  into  the  government-controlled  areas  is 
not yet satisfactorily solved. In the view of the Commission, the liberalisation of circulation of 
commercial  Turkish  Cypriot  vehicles  would  contribute  to  the  economic  development  of  the 
Turkish  Cypriot  community.  However,  the  Republic  of  Cyprus  authorities  have  expressed 
inter  alia  concerns  as  to  aspects  of  road  safety,  but  have  also  indicated  their  willingnes  to 
cooperate with the Commission to search for a viable solution 

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 

14 

See Annexes IV and V of this report 

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Cypriot branded products and as such continues to constitute a psychological barrier to trade. 
However,  trade  between  the  two  communities  other  than  Green  Line  trade  is  several  times 
higher  but  reliable  figures  were  not  available  for  the  reporting  period.  Smuggling  of  goods 
across  the  Line  has  further  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  decreases  due  to  reduced  price 
differentials.  CYPOL  as  well  as  ESBA  patrols  along  the  Line  are  dual  function:  anti-
smuggling  as  well  as  irregular  immigration  controls.  The  number  of  criminal  cases  filed  in 
district  courts  for  smuggling  was  12  in  2008,  11  in  2009  and  9  in  2010  (during  the  current 
reporting period). It was noted that smuggling of cigarettes increased in December 2010 when 
cigarettes prices in the government-controlled areas were increased by 50 Euro Cents. 

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.  

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 once the necessary conditions laid down in the 
recommendations  of  the  assessment  missions  carried  out  by  independent  experts  have  been 
fulfilled. Other products for which the Turkish Cypriot Chamber of Commerce has indicated 
interest are pomegranates, fish from fish farms and snails. 

During the reporting period, the Commission has also started the procedure for an amendment 
to  the  implementing  rules15  of  the  GLR  to  lift  the  obligation  that  potatoes  must  be  grown 
directly from certified seed potatoes. This would allow trade of potatoes produced from farm 
saved  seeds  grown  as  the  first  offspring  of  certified  seed  potatoes  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. 

3. 

CONCLUSIONS 

As  already  stated  in  previous  reports,  control  of  the  Green  Line  at  the  authorised  crossing 
points  is  satisfactory.  During  the  reporting  period  the  number  of  apprehended  irregular 
immigrants  seems  to  confirm  a  downward  trend  but  the  irregular  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 

15 

Article 3(1) Commission Regulation (EC) 1480/2004 of 10 August 2004. 

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problem  of  irregular  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. As was already 
stressed in previous reports, this issue needs to be urgently addressed by the SBA. 

During the current reporting period the value of trade across the Line slightly decreased for 
the second time in a row time since the coming into force of the GLR in 2004 (by 1.5% down 
to  €3,861,834  compared  to  €3,920,930  in  the  previ ous  equivalent  period)  since  the  global 
economic crisis is still affecting also the Cypriot economy. Another reason for this decrease is 
the fall-out in the potato trade. Excluding the trade in potatoes Green Line trade was stable. 
The  most  traded  products  were  stone  articles,  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. 

During the reporting period, certain obstacles to trade remained. Turkish Cypriot commercial 
vehicles,  in  particular  lorries  above  7.5  tonnes  and  buses,  can  only  move  freely  across  the 
whole  island  if  driving  licences  and  roadworthiness  certificates  are  obtained  in  the 
government  controlled  areas.  No  further  progress  can  be  reported  yet  with  regard  to  other 
non-tariff trade barriers. 

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

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. 

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