REPORT FROM THE COMMISSION TO THE COUNCIL Eighth 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 January until 31 December 2011
Date: 2012-06-01
Institutions: European Commission
Subjects: Cyprus, border control, customs regulations, free movement of goods, free movement of persons, illegal migration, right of asylum

EUROPEAN COMMISSION 

Brussels, 1.6.2012  
COM(2012) 251 final 

REPORT FROM THE COMMISSION TO THE COUNCIL 

Eighth 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 January until 
31 December 2011 

{SWD(2012) 140 final} 

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REPORT FROM THE COMMISSION TO THE COUNCIL 

Eighth 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 January until 31 December 2011 

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 January – 31 December 2011. 

During  the  reporting  period,  the  Commission  did  not  propose  any  changes  to  the  GLR 
but amended the implementing rules. 

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, on the implementation of the Regulation. 

1. 

IMPLEMENTING MEASURES 

On  31  May  2011  the  Commission  adopted  Regulation  No  531/2011  amending  the 
implementing rules of the GLR.3 

The  Commission's  decision  lifted  the  obligation  that  potatoes  traded  across  the  Green 
Line  (hereafter  "the  Line")  must  be  grown  directly  from  certified  seed  potatoes.  This 
allows trade of potatoes produced from farm saved seeds grown as the first offspring of 
certified seed potatoes under the control of independent phytosanitary experts appointed 
by the Commission to provide the necessary assurance with regard to the identity and the 
health status.  

1 

2 
3 

OJ  L  161,  30.04.2004,  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 
Regulation No 1480/2004 laying down specific rules concerning goods arriving from the areas not 
under  the  effective  control  of  the  Government  of  Cyprus  in  the  areas  in  which  the  Government 
exercises effective control. 

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2. 

CROSSING OF PERSONS 

2.1. 

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 Line at authorised crossing 
points.  There  was  a  slight  increase  in  the  number  of  Greek  Cypriots  crossing  and  a 
decrease in the number of Turkish Cypriots crossing. 

According  to  data  from  the  Republic  of  Cyprus,  621,406  (previous:  596,578)  crossings 
by  Greek  Cypriots  in  210,877  vehicles  (previous:  170,315)  were  noted  from  the 
government-controlled  areas  to  the  northern  part  of  Cyprus  and  937,789  (previous: 
1,097,676) crossings by Turkish Cypriots in 348,225 vehicles (previous: 378,475) from 
the  northern  part  of  Cyprus  to  the  government-controlled  areas  during  the  reporting 
period.4 

The number of EU citizens other than Cypriots and third country nationals crossing the 
Line decreased slightly. According to data from the Republic of Cyprus Police (hereafter: 
CYPOL),  during  the  reporting  period  a  further  634,218  crossings  were  effected  by  EU 
citizens  other  than  Cypriots  and  third  country  nationals  (previous:  664,566).  67  %  of 
these crossings (424,992) occurred at the Ledra Street pedestrian crossing which opened 
in April 2008. The Ledra Street crossing point continued to account for the vast majority 
of crossings by non-Cypriots (primarily tourists). 

The figures are broadly in line with those gathered from the Turkish Cypriot community 
i.e.  694,633  crossings  by  Greek  Cypriots  in  248,962  vehicles  from  the  government-
controlled  areas  to  the  northern  part  of  Cyprus  and  1,450,566  crossings  by  Turkish 
Cypriots  in  553,913  vehicles  in  the  other  direction.  In  addition,  there  were  1,101,942 
foreign  nationals  crossing  from  the  government-controlled  areas  to the  northern  part  of 
Cyprus.  

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  the 
Turkish Cypriot community, that 84,407 Greek Cypriots crossed to the northern part of 
Cyprus  and  450,408  Turkish  Cypriots  crossed  to  the  government-controlled  areas 
through the crossing points situated within the SBA. 

In  2011,  the  number  of  CYPOL  personnel  working  directly  at  the  crossing  points  was 
increased from 73 in 2010 to 77.  

The overall assessment of the crossings of persons is positive. However, a few incidents 
were  reported  during  the  reporting  period.  On  9  October  2011,  a  Turkish-Cypriot  bus 
carrying  Latvian  tourists  was  not  allowed  to  cross  the  Line  at  the  Agios  Dhometios 

4 

5 

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. 

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crossing point where it had previously crossed many times. According to the bus driver, 
he  was  told  at  the  crossing  point  that  only  Turkish  Cypriots  could  cross  on  a  Turkish 
Cypriot registered bus. The tourists were taken to the Ledra Palace crossing point where 
they crossed on foot and where a bus from the government-controlled areas was hired for 
them  to  be  able  to  complete  their  tour.  While  the  Republic  of  Cyprus  authorities  have 
informed the Commission that the necessary documents were not in order, the bus driver 
has informed the Commission that he has been allowed to cross many times since while 
carrying Turkish Cypriots and has lodged an official complaint to the Commission.  

The miscommunication, that Turkish Cypriots will no longer be able to cross if they do 
not  carry  a  Republic  of  Cyprus  ID  card  which  affected  only  few  Turkish  Cypriots  on 
specific days, was swiftly resolved. 

The  above-mentioned  incidents  have  been  a  source  of  concern  to  the  Turkish  Cypriot 
community and were raised  by the  Commission  with  the authorities  of  the Republic of 
Cyprus to assess whether there is a change of policy, which would require a notification 
to the Commission as stated in the GLR.6 The authorities of the Republic of Cyprus have 
informed  the  Commission  that  there  is  no  change  of  policy  regarding  the  crossing  of 
persons,  noting  that  the  proportion  of  incidents  is  insignificant  in  comparison  to  the 
overall number of crossings. 

2.2. 

Irregular migration across the Green Line and asylum 

CYPOL figures for 2011 indicate a further decrease in irregular migration across the Line 
from  the  northern  part  of  Cyprus  to  the  government-controlled  areas.  In  2011,  1,311 
irregular migrants (previous: 1,855) were apprehended within the government-controlled 
areas  (excluding  those  who  were  not  allowed  to  cross  at  Green  Line  crossing  points7). 
One irregular immigrant entered directly the government-controlled areas and 18 persons 
entered via the Eastern SBA, bringing the total number of apprehended irregular migrants 
to 1,330. CYPOL indicated as a probable reason the decrease in employment prospects 
due  to  the  economic  crisis  in  Cyprus  as  well  as  the  work  of  the  Republic  of  Cyprus 
authorities'  to  combat  irregular  migration.  The  majority  of  irregular  immigrants 
apprehended were citizens of Syria, Iran and Georgia (Annex VIII). Irregular immigrants 
are normally apprehended during controls along the 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  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 "TRNC", statements by immigrants but also other evidence such as no ID 
documents, Turkish Cypriot newspapers and Turkish bank notes). 

Out of 1,311 irregular migrants, 417 (31.8%) persons applied for asylum in the Republic 
of Cyprus.  

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GLR Article 10 
The Republic of Cyprus does not keep official statistic on the number of persons not allowed to 
cross  the  Green  Line.  However,  CYPOL  estimates  that  in  2011,  around  2220  persons  were  not 
allowed to cross into the government-controlled areas. 

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Most  irregular  migrants  arrive  in  the  government-controlled  areas  via  Turkey  and  the 
northern part of Cyprus.  

According  to  information  from  the  Turkish  Cypriot  community,  16  irregular  migrants 
were apprehended in the northern part of Cyprus, all of them Syrians. 2,267 were refused 
permission to cross the Line into the northern part of Cyprus at official crossing points.8 
During  the  reference  period,  860  persons  were  "deported"  from  the  northern  part  of 
Cyprus.9 

The Latakia (Syria) – Famagusta ferry service was terminated in September 2010. So far 
the  crisis  in  Syria  has  not  affected  Cyprus  and  the  number  of  irregular  migrants  from 
Syria has decreased.  

Precise data is not available for persons refused to cross at the crossing points. 

No direct co-operation exists on police and immigration issues 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  Technical  Committee  on  Crime  and 
Criminal Matters 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.  As  an 
extension to this committee, the two communities have also established a mechanism for 
information sharing and joint initiatives, namely a ‘Joint Communications Room’, where 
UNFICYP  police  has  an  on-going  presence,  and  which  operates  on  a  six  day-a-week 
basis. Both  sides  have  demonstrated  willingness  through  these  mechanisms  to  enhance 
communication  between  the  respective  police  forces,  and  to  cooperate  and  assist  each 
other  by  exchanging  information  on  cases  involving  abduction,  apprehended  persons, 
illegal drugs, and stolen property.10 

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  reporting 
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, 
1,163 persons were not allowed to cross, the majority Turkish citizens who are living in 
the  northern  part  of  Cyprus.  Other  foreigners  were  tourists  from  Australia,  the  USA, 
Brazil, Iran, and Russia who crossed via the northern part of Cyprus. These persons were 
directed  to  the  Nicosia  crossing  point  Agios  Dhometios  for  processing  per  Republic  of 
Cyprus entry requirements.11 

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11 

Turkey: 979, Syria: 204, Turkmenistan: 167, Georgia: 88, Iraq: 74 
Turkey: 543, Syria :44, Moldova: 64, Iran: 53, Nigeria: 10 
Information provided by UNFICYP 
i.a: Turkey: 900, Iran: 39, Australia: 33, USA: 30, Brazil: 19, Russia: 19. 

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A  total  of  18  irregular  migrants  were  apprehended  within  the  ESBA12,  of  whom  9  had 
crossed  to  the  government-controlled  areas  legally  but  stayed  on  after  their  visas  had 
expired. 3 facilitators were also arrested by the SBA. The remaining 6 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.  The  SBA  is  conducting 
increased  patrols  in  these  areas  with  a  double  function,  to  control  bird  trapping  and  to 
deter people from crossing illegally. As mentioned in previous Green Line reports, these 
"unauthorised  crossing  points"  remain  an  area  of  concern.  As  in  previous  years,  the 
Commission  brought  up  the  issue  of  the  "unauthorised  crossing  points"  with  the  SBA, 
calling on SBA officers to find a suitable solution in line with the requirements of Article 
5 (2) of Protocol No 3 to the 2003 Act of Accession.13  

3. 

CROSSING OF GOODS 

3.1. 

Value of trade 

Pursuant to Art 8 of the Commission Regulation (EC) 1480/200414, 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  of  the  TCCoC,  the  total  value  of  goods  for  which  accompanying 
documents  were  issued  in  2011  amounted  to  €29,954,867  whereas  the  value  of  goods 
actually traded was €29,402,577 15. The Green Line trade in 2011 was five times higher 
than  in  2010.  This  substantial  increase  is  explained  by  the  sale  of  electricity  from  the 
northern  part  of  Cyprus  to  the  government-controlled  areas,  which  was  the  result  of 
exceptional circumstances. The sale of electricity, which amounted to €24,085,775 (82% 
of the trade), was agreed between the Presidents  of  the Cyprus Chamber of  Commerce 
and Industry (hereafter: CCCI) and the TCCoC following the explosion at the Mari naval 
base in July 2011, which destroyed large parts of the nearby Vasiliko power plant. The 
sale  of  electricity  had  a  major  impact  on  the  Green  Line  trade  in  2011.  In  order  to 
correctly portray the regular Green Line trade, this report will feature the trade with and 
without the sale of electricity.  

12 
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14 
15 

Egypt: 6, Nigeria: 2, Syria: 2, Georgia: 2, Sri Lanka: 3, India:1, Bangladesh: 1, Nepal:1. 
OJ L 236, 23.09.2003, 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  

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Without  taking  into  account  the  sale  of  electricity,  according  to  the  TCCoC,  the  total 
value of goods for which accompanying documents were issued amounted to €5,869,092 
whereas the value of goods actually traded was €5,316,803. 

According to reports provided by the authorities of the Republic of Cyprus, the total trade 
value of goods which crossed the Line increased by 560% to €28,923,500. The total trade 
value of goods (without taking into account the sale of electricity) which crossed the Line 
decreased by 6.5% from €5,173,233 in 2010 to 
€4,827,454 primarily due to a decrease in 
stone articles such as marbles, bricks and building materials which may be explained by 
the economic crisis and the slow down of the construction sector. The trade of vegetables 
also went down, with a further decrease of the potatoe trade. Until 2010, potatoes were 
the largest single component of Green Line trade (up to 30% of overall trade). In 2011, 
the  potato  trade  represented  less  than  1%  of  the  overall  Green  Line  trade.  This  was 
mainly  due  to  a  surplus  production  of  potatoes  in  government-controlled  areas  which 
negated the need to buy potatoes from the northern part of Cyprus..  

Although  not  covered  by  the  scope  of  the  GLR,  trade  from  the  government-controlled 
areas  to  the  northern  part  of  Cyprus  more  than  doubled,  reaching  €2,272,493  in  2011 
(previous:  €1,090,086)  according  to  figures  from  the  CCCI.  The  main  reason  for  this 
significant  increase  is  the  supply  of  items  manufactured  in  the  government-controlled 
areas  towards  an  EU  funded  project  in  the  northern  part  of  Cyprus.  Trade  from  the 
government-controlled areas to the northern part of Cyprus therefore represents 7.85% of 
the trade in the opposite direction (21% in 2010). However, when taking into account the 
Green  Line  trade  without  the  sale  of  electricity,  trade  from  the  government-controlled 
areas to the northern part of Cyprus represents 46% of the trade in the opposite direction. 

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 community as the main reason. 

3.2. 

Type of goods 

In  2011,  following  electricity,  scrap  raw  metal  was  the  most  traded  item,  followed  by 
fresh fish and plastics.16 

New products, other than electricity, such as pomegranate and decorative pebbles, were 
introduced during the reporting period but with very limited impact on the trade.17 

99.66% of the trade volume across the Line was intra-island trade. The remaining 0.34% 
was sold to India in form of iron and steel scrap for a trade value of €93,850 (in 2010: 
€123,788).  These  transactions  required  the  invo lvement  of  a  company  registered  in  the 
government-controlled  areas  for  intra-EU  transactions  and  third  country  export 
formalities. During the reporting period, no items were traded to other EU Member States 
(in 2010: €17,693).  

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17 

See Annexes IV of this report 
Decoration pebble and pomegranate trade only represented 0.4% of the overall Green Line trade. 

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3.3. 

Irregularities 

During  the  reporting  period,  four  cases  of  irregularities  involving  a  total  trade  value  of 
€ 2,590  (0.008%  of  the  overall  Green  Line  tr ade)  were  reported  by  the  Republic  of 
Cyprus authorities. The goods concerned were not allowed to cross the Line for various 
administrative  reasons  (documents  missing,  materials  not  labelled  according  to  CE 
marking requirements). 

3.4 Remaining obstacles and difficulties concerning the movement of goods 

Obstacles to trade across the Line continue to persist. As mentioned in previous reports, 
the issue of Turkish Cypriot lorries crossing to the government-controlled areas is not yet 
satisfactorily solved. However, the Commission services are currently in technical talks 
with the competent authorities of the Republic of Cyprus in order to address the issue and 
explore  ways  of  finding  viable  arrangements  that  will  address  inter  alia  road  safety 
concerns. 

Some problems emerged around foodstuff. The authorities of the Republic of Cyprus did 
not allow certain products (e.g. bread) to cross, due to concerns raised by health services 
concerning  the  production  process  in  the  northern  part  of  Cyprus.  Following 
clarifications  from  the  Commission,  the  goods  in  question  have  been  crossing  without 
any problems.  

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 
government-controlled  areas  which  hinder  trade.  These  difficulties  possibly  reflect  a 
widespread  reluctance  among  Greek  Cypriots  to  purchase  Turkish  Cypriot  branded 
products and such attitude constitutes an obstacle to trade. However, trade between the 
two communities other than the Green Line trade is several times higher. According to 
estimations from the TCCoC, Turkish-Cypriots' purchased goods worth € 120 million in 
the government-controlled areas as part of their personal luggage.  

Smuggling  of  goods  across  the  Line  decreased  in  2011  and  the  Republic  of  Cyprus' 
authorities conducted 1,538 seizures (previous: 545). The SBA conducted 281 seizures at 
the official crossing points of Pergamos and Strovilia. However, the smuggling of goods 
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  particularly  tackle  seasonal  issues  such  as  the  transport  of  game/wild 
birds  or  fire  crackers  (also  via  the  ESBA)  to  the  government-controlled  areas.  Other 
items  seized  include  cigarettes  and  tobacco,  animal  products  as  well  as  counterfeit 
handbags  and  textiles.  However,  according  to  the  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 court for smuggling 
was 11 in 2009, nine in 2010 and none in 2011.  

Most goods were detected at authorised crossing points: Pyla, SBA, the buffer zone near 
Zodia and Potamia. 

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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. 

3.4. 

Facilitation of trade 

The  Commission  continues  to  seek  ways  of  enhancing  trade  across  the  Line.  A 
Commission  Decision  lifting  the  prohibition  of  the  GLR  to  allow  trade  of  additional 
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.  During  the  reporting  period,  the  Commission  lifted  the  obligation  that 
potatoes  traded  across  the  Green  Line  must  be  grown  directly  from  certified  seed 
potatoes. However, it is still too early to assess whether the Commission Decision had a 
positive impact on the Green Line trade. 

Other  products  for  which  the  TCCoC  has  indicated  interest  are  farmed  fish  and  snails. 
Furthermore, there is a general interest in the lifting of the prohibition of trade in all live 
animals  and  animal  products  to  the  extent  these  products  would  comply  with  EU  rules 
and  regulations.  The  Republic  of  Cyprus  has  repeatedly  expressed  its  willingness  to 
examine the possibility of expanding the list of goods that can cross to the government-
controlled areas. 

The  Commission  was  informed  by  the  authorities  of  the  Republic  of  Cyprus  of  the 
arrangements put in place for the sui generis movement of goods from the government 
controlled-areas  through  the  non-controlled  areas  and  back  into  the  government 
controlled-areas  through  the  Limnitis  crossing  point  (which  was  opened  in  October 
2010).  The  Commission  informed  the  Republic  of  Cyprus  authorities  that  this  practice 
needs  to  be  brought  in  line  with  EU  law  by  amending  the  GLR,  which  is  an  exclusive 
legal tool regulating any movement of goods and persons across the Line. 

4. 

CONCLUSIONS 

As stated in previous reports, the control of the Line at the authorised crossing points is 
satisfactory.  During  the  reporting  period  the  number  of  apprehended  irregular  migrants 
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  SBA  Administration  would  be  important  to  help  tackle  irregular 
migration. The Commission is concerned about a few incidents which took place at the 
crossing  points  in  October  and  December  2011  and  will  continue  to  liaise  with  the 
authorities  of  the  Republic  of  Cyprus  on  any  developments  which  could  concern  a 
change of policy.  

In  2011,  the  value  of  trade  across  the  Line  was  five  times  higher  than  in  2010.  This 
substantial increase is due to the sale of electricity from the northern part of Cyprus to the 
government  controlled  areas  which  amounted  to  €24,085,775.  Without  taking  into 
account the sale of electricity, regular Green Line trade decreased for the third time in a 
row  since  the  coming  into  force  of  the  GLR  in  2004  (by  6.5%  down  to  €4,827,454 

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compared to € 5,173,233 in 2010). The most traded  products were, after electricity, scrap 
raw  metal,  fresh  fish,  plastics  and  stone  articles.  The  overall  scale  of  the  trade  still 
remains  limited,  in  part  due  to  the  restricted  scope  of  the  Regulation  itself.  A  positive 
development  to  be  noted  is  the  agreement  between  the  Presidents  of  the  CCCI  and 
TCoCC  for  the  supply  of  electricity  from  the  non-government  controlled  to  the 
government controlled areas, following the regrettable explosion at the naval base in July 
2011.  The  agreement  gave  a  boost  to  the  Green  Line  trade  and  constituted  in  itself  a 
confidence building measure. 

During  the  reporting  period,  certain  obstacles  to  trade  remained.  Turkish  Cypriot 
commercial  vehicles,  in  particular  lorries  above  7.5  tons  and  buses,  can  only  cross  the 
whole  island  if  driving  licences  and  roadworthiness  certificates  are  obtained  in  the 
the 
government-controlled  areas.  Technical 
Commission  services  and  the  relevant  departments  of  the  Republic  of  Cyprus  to  find  a 
viable solution to this issue. No further progress can be reported yet with regard to other 
non-tariff trade barriers. 

initiated  between 

talks  have  been 

It  appears  that  smuggling  of  goods  across  the  Line  has  decreased  but  remains 
widespread.  

The  movement  of  goods  from  the  government-controlled  areas  through  the  Limnitis 
crossing point via the northern part of Cyprus and back into the government-controlled 
areas requires a regularisation by an amendment to the Green Line Regulation. 

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