REPORT FROM THE COMMISSION TO THE COUNCIL Ninth 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 2012
Date: 2013-05-24
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, 24.5.2013  
COM(2013) 299 final 

REPORT FROM THE COMMISSION TO THE COUNCIL 

Ninth 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 2012 

{SWD(2013) 186 final} 

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REPORT FROM THE COMMISSION TO THE COUNCIL 

Ninth 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 2012 

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  was  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 2012. 

During  the  reporting  period,  the  Commission  did  not  propose  any  changes  to  the  GLR  nor 
amended the implementing rules. 

The Commission has maintained a constructive dialogue with the relevant authorities of the 
Republic  of  Cyprus  and 
the 
implementation of the Regulation. 

the  Sovereign  Base  Area  (SBA)  Administration  on 

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 visible decrease in both the number of Greek Cypriots 
and Turkish Cypriots crossing in 2012 compared to previous years.  

According  to  data  from  the  Republic  of  Cyprus,  481,732  (previous:  621.406)  crossings  by 
Greek  Cypriots  and  154,778  crossings  by  Greek  Cypriot  vehicles  (previous:  210,877)  were 
noted  from  the  government-controlled  areas  to  the  northern  part  of  Cyprus  and  850,362 
(previous: 937,789) crossings by Turkish Cypriots and 280,358 crossings by Turkish Cypriot 
vehicles  (previous:  348,225)  from  the  northern  part  of  Cyprus  to  the  government-controlled 
areas during the reporting period3. 

The number of EU citizens other than Cypriots and third country nationals crossing the Line 
also decreased significantly. According to data from the Republic of Cyprus Police (hereafter: 
CYPOL),  during  the  reporting  period  a  further  530,014  crossings  were  effected  by  EU 
citizens other than Cypriots and by third country nationals (previous: 634,218). 67% of these 

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 
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) 

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crossings  (354,713)  occurred  at  the  Ledra  Street  pedestrian  crossing  which  continued  to 
account for the vast majority of crossings by non-Cypriots (primarily tourists).  

The figures gathered by the Turkish Cypriot community indicate the same decreasing trend in 
the number of crossings, i.e. 658,117 crossings by Greek Cypriots and 233,682 crossings by 
Greek Cypriot vehicles from the government-controlled areas to the northern part of Cyprus 
and  1,398,866  crossings  by  Turkish  Cypriots  and  516,852  crossings  by  Turkish  Cypriot 
vehicles in the other direction. In addition, there were 1,107,672 foreign nationals other than 
Cypriots crossing from the government-controlled areas to the northern part of Cyprus.  

The CYPOL figures mentioned above, however, do not include data on persons and vehicles 
crossing at the Pergamos and Strovilia crossings points, from the northern part of Cyprus into 
the ESBA.4 No detailed statistics are kept by the ESBA Administration for these two crossing 
points.  However,  the  ESBA  estimates,  based  on  information  from  the  Turkish  Cypriot 
community, that 48,807 (previously: 84,407) Greek Cypriots crossed to the northern part of 
Cyprus  and  315,683  (previously:  450,408)  Turkish  Cypriots  crossed  to  the  government-
controlled  areas,  while  84,801  EU  citizens  other  than  Cypriots  and  third  country  nationals 
crossed in both directions, through the crossing points situated within the ESBA.  

In  2012,  the  number  of  CYPOL  personnel  working  directly  at  the  crossing  points  was 
increased to 80 (77 in 2011). 

The vast majority of the crossings took place smoothly but incidents were reported during the 
reporting  period.  Those  incidents  have  been  a  source  of  concern  to  the  Turkish  Cypriot 
community.  

In  March  2012,  the  same  Turkish-Cypriot  bus,  which  was  not  allowed  to  cross  with  EU 
tourists on board during the past reporting period, was again stopped at the Agios Dhometios 
crossing  point,  while  carrying  British  citizens  residing  in  Kyrenia  who  were  travelling  to 
Larnaca. The bus had a roadworthiness certificate issued by the Republic of Cyprus and the 
professional  driving  licence.  However,  the  authorities  of  the  Republic  of  Cyprus  also 
requested  a  tourist  operator  licence.  The  Commission  informed  the  Republic  of  Cyprus 
authorities  that  it  is  neither  necessary  nor  appropriate  to  require  a  tourist  operator  licence 
concerning a bus company which is located in the areas where the acquis does not apply. This 
issue has not yet been solved.  

In early 2012, the Commission received claims of a change of practice at the crossing points 
concerning the requirements for driving licences towards third country nationals' spouses of 
Turkish Cypriot citizens, who are no longer able to drive in the Republic of Cyprus if they do 
not carry a driving licence from their country of origin. The Commission raised the issue with 
the Republic of Cyprus authorities to assess whether there is a change of policy, which would 
require a notification to the Commission as stated in the GLR.5 

During  the  reporting  period,  the  Commission  also  noted  that  the  Republic  of  Cyprus 
authorities issued a Note Verbale to reiterate their position concerning the legal points of entry 
and  exit  to  and  from  Cyprus  which  in  the  view  of  the  Commission  did  not  represent 
accurately the content of the GLR.  

As  stated  on  several  occasions,  the  Commission  attaches  great  importance  to  the  free 
movement of EU citizens and their families across the Green Line.  

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5 

The GLR does not contain reporting obligations for this traffic 
GLR Article 10 

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1.2. 

Irregular migration across the Green Line and asylum 

CYPOL figures for 2012 indicate a slight decrease in irregular migration across the Line from 
the  northern  part  of  Cyprus  to  the  government-controlled  areas.  In  2011,  1,265  irregular 
migrants  (previous:  1,311)  were  apprehended  within  the  government-controlled  areas.6  19 
irregular migrants entered directly into the government-controlled areas (previous: 1) and 13 
persons  (previously:  18)  entered  via  the  ESBA,  bringing  the  total  number  of  apprehended 
irregular  migrants  to  1,297  (previous:  1,330).  As  a  probable  reason,  CYPOL  indicated  the 
decrease  in  employment  prospects,  due  to  the  economic  crisis  in  Cyprus,  as  well  as  the 
increased number of staff and patrols in line with CYPOL's new strategic plan for 2012-2015 
to combat irregular migration. The majority of irregular migrants apprehended were citizens 
of Syria, Iran and Georgia (Annex VI). Irregular migrants 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. 

Out of 1,265 irregular migrants, 542 (42,8%) persons applied for asylum in the Republic of 
Cyprus. During the reporting period, there was a significant increase of citizens of Syria who 
applied 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 (ID card, 
passport,  visas,  entry/exit  stamps  from  Turkey  or  a  "visa"  or  a  "residence  permit"  of  the 
"TRNC", other supportive documents such as driving licence, statements by migrants but also 
other evidence such as the absence of identification documents, Turkish bank notes).  

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

According  to  information  received  from  the  Turkish  Cypriot  community,  41  irregular 
migrants were apprehended in the northern of part of Cyprus, 39 of them being Syrians. 2,072 
were refused entry into  the  northern part of Cyprus at  different points  of entry.7 During the 
reference period, 741 persons were "deported" from the northern part of Cyprus.8 

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 regularly within the framework of a bi-communal Technical Committee on 
Crime and Criminal Matters under UN auspices.9 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  days-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 

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8 
9 

10 

This  figure  excludes  the  number  of  persons  not  allowed  to  cross  the  Green  Line  as  the  Republic  of 
Cyprus does not keep official statistics on those. However, CYPOL estimates that in 2012, around 2500 
persons were not allowed to cross into the government-controlled areas.  
Turkey: 807, Syria: 438, Turkmenistan: 117, Iraq: 83, Pakistan: 69 
Turkey: 318, Pakistan: 93, Moldova: 71, Turkmenistan: 65, Syria: 46 
This  Committee  is  one  of  seven  specialised  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.  
Report of the Secretary-General on the United Nations operation in Cyprus, 7 January 2013 

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

Eastern Sovereign Base Area (ESBA) 

Overall,  irregular  migration  via  the  ESBA  has  decreased  during  the  reporting  period.  SBA 
officers  continue  to  describe  the  cooperation  between  the  Republic  of  Cyprus  and  SBA 
Customs  and  Immigrations  in  this  area  as  excellent.  During  the  reporting  period,  1,014 
persons were not allowed to cross, the majority being Turkish citizens who are living in the 
northern  part  of  Cyprus.  Other  foreigners  were  tourists  from  Iran,  Russia  and  Israel  who 
arrived 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 
A total of 13 irregular migrants were apprehended within the ESBA12, of whom 5 had crossed 
to  the  government-controlled  areas  legally  but  stayed  on  after  their  visas  had  expired.  The 
remaining 8 entered the island in the northern part of Cyprus and crossed the Line irregularly. 
5 facilitators13 were also arrested by the SBA. 

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  and  the  issue  should  be 
addressed without delay. 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.14  The  SBA 
indicated that it is looking at implementing different options to tackle the issue. 

2. 

CROSSING OF GOODS 

Value of trade 

2.1. 
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  of  the  TCCoC,  the  total  value  of  goods  for  which  accompanying 
documents were issued in 2012 amounted to €9,584,410 whereas the va lue of goods actually 
traded was €8,945,347 .16 In 2012, the Green Line trade was three times lower than in 2011. 
This substantial decrease is explained by the fact that the sale of electricity from the northern 
part  of  Cyprus  to  the  government-controlled  areas,  which  was  the  result  of  exceptional 
circumstances, stopped in March 2012. For the year 2012, the sale of electricity amounted to 

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15 
16 

i.a: Turkey: 478, Iran: 40, Russia: 40, Israel: 34 
Uzbekistan: 3, Iraq: 2, India: 2, Iran: 1, Egypt: 1, Moldavia: 1, Sri Lanka: 1, China: 1, Vietnam: 1  
Greek Cypriots: 4, Iran: 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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€4,748,881  (53%  of  the  trade).  The  sale  of  electr icity,  even  if  lower  than  in  2011,  had  an 
impact on the Green Line trade in 2012.  

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 €4,835,528 whereas the 
value of goods actually traded was €4,196,465. Those figures indica te a significant decrease 
of regular Green Line trade of 22% compared to 2011.  

According  to  reports  provided  by  the  authorities  of  the  Republic  of  Cyprus,  the  total  trade 
value  of  goods,  including  electricity,  which  crossed  the  Line  decreased  by  303%  to 
€8,788,890. The total trade value of goods (without taki ng into account the sale of electricity) 
which  crossed  the  Line  significantly  decreased  by  17%  from  €4,827,454  in  2011  to 
€4,040,018. This is mainly due to a decrease in tr ade of scrap copper, building materials and 
fresh fish which may be explained by the economic crisis (near interruption of construction 
and  closure  of  restaurants).  The  overall  decrease  in  trade  could  also  indicate  a  decrease  in 
economic interdependence between the two communities.  

Although not covered by the scope of the GLR, trade from the government-controlled areas to 
the northern part of Cyprus decreased by around 50%, from €2,272,493 in 2011 to €1,014,067 
in 2012 according to figures from the Cyprus Chamber of Commerce and Industry (CCCI). In 
2011,  the  trade  from  the  government-controlled  areas  to  the  northern  part  of  Cyprus  was 
uncharacteristically high due mainly to the purchase of electrical equipment as part of an EU-
funded  project.  Trade  from  the  government-controlled  areas  to  the  northern  part  of  Cyprus 
therefore represents 11.3% of the trade in the opposite direction (7,85% in 2011). 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 24% of the trade in the 
opposite direction (46% in 2011). 

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. 

2.2. 

Type of goods 

In  2012,  after  electricity,  plastic  products  were  the  most  traded  item,  followed  by  building 
materials/articles of stone and fresh fish.17 

New products such as passion fruits, celery, beetroot and fibre optic cables were introduced 
during the reporting period but had a very limited impact on the trade.18 

During this reporting period, all the trade across the Line was intra-island trade and there was 
no export registered either to other EU Member States or third countries. 

2.3. 

Irregularities 

During the reporting period, there were no cases of irregularities. 

2.4. 

Obstacles and difficulties concerning the movement of goods 

Obstacles  to  trade  across  the  Line  continue  to  persist  and  this  is  also  reflected  in  the  22% 
decrease of trade. 

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18 

See Annex IV of this report 
The new products represented 0.26% of the overall Green Line trade 

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As  mentioned  in  previous  reports,  the  issue  of  Turkish  Cypriot  lorries  crossing  to  the 
government-controlled areas is not yet satisfactorily solved. In the view of the Commission, 
the facilitation of circulation of commercial Turkish Cypriot vehicles would contribute to the 
economic development of the Turkish Cypriot community. The Commission services started 
technical talks with the competent authorities of the Republic of Cyprus in early 2012 in order 
to  address  the  issue  and  find  viable  arrangements  that  can  notably  address  road  safety 
concerns.  Despite  concrete  proposals  from  the  Commission  to  apply  more  proportionate 
means to address road safety issues such as on the road checks, no progress can be reported. 
Therefore, no Turkish Cypriot commercial vehicles above 7.5 tons can cross the Line unless 
they  have  documents  issued  by  the  Republic  of  Cyprus.  The  authorities  of  the  Republic  of 
Cyprus  informed  the  Commission  that  they  put  in  place  dispositions  to  facilitate  obtaining 
roadworthiness certificates and professional driving licences for Turkish Cypriots.  

In  August  2012,  the  Commission  was  informed  that  a  consignment  of  180  tons  of  potatoes 
was  blocked  at  the  crossing  point  for  further  pesticide  checks  by  the  Republic  of  Cyprus 
Ministry of Health, which wanted to put the potatoes in quarantine, despite the fact that the 
consignment had the required EU phytosanitary certificates issued by an independent expert. 
Following intervention from the EU expert, the Commission and the TCCoC, the issue was 
resolved.  

As  in  2011,  some  problems  emerged  in  2012  around  foodstuffs  and  especially  around 
processed  food.  The  authorities  of  the  Republic  of  Cyprus  do  not  allow  processed  food 
products to cross due to concerns raised by health services concerning the production process 
in the northern part of Cyprus. The Commission has informed the authorities of the Republic 
of Cyprus that, while they could take samples of the products for further analysis, they should 
not prevent all processed food products from crossing. To date, processed food products are 
still not permitted to cross. 

As in previous years, Turkish Cypriot traders have continued to report difficulties in having 
their products stocked in shops and advertising their products and services in the government-
controlled  areas  which  hinders  trade.  These  difficulties  possibly  reflect  a  widespread 
reluctance  among  Greek  Cypriots  to  purchase  Turkish  Cypriot  branded  products  and  such 
pattern constitutes an obstacle to trade. In addition, it was mentioned that traders from both 
communities are faced with many administrative hurdles when wanting to enter into business 
with the other community. The economic operators from both sides need to be free to engage 
in trade relations, based on their business requirements, without facing any pressure.  

2.5. 

Smuggling of goods 

Smuggling of goods across the Line remains at the same level in 2012 as that in 2011 and the 
Republic  of  Cyprus  authorities  conducted  1,305  seizures  (previous:  1,538).  The  SBA 
conducted  218  seizures  at  the  official  crossing  points  of  Pergamos  and  Strovilia.  However, 
the  smuggling  of  goods  remains  widespread,  reflecting  the  geographical  pattern  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 seasonal issues in particular such as the transport of 
game/wild  birds  or  fire  crackers  (also  via  the  ESBA)  to  the  government-controlled  areas. 
Other items seized include mainly cigarettes and tobacco, animal and dairy products as well 
as counterfeit handbags and textiles. The number of criminal cases filed in the district court 
for smuggling was nine in 2010 and zero in 2011 and 2012. For the majority of the reported 
cases, an administrative penalty is imposed instead of legal proceedings.  

Most goods were detected at authorised crossing points but also around Pyla, the Sovereign 
British bases, Potamia and the buffer zone near Zodia. 

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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  ESBA  administration.  The  ESBA  noted  a 
notable increase in the amount of hand rolling tobacco, which probably exceeds demand. The 
ESBA indicated its intention to raise the issue with the Turkish Cypriot community in Pyla.  

2.6. 

Facilitation of trade 

The  Commission  continues  to  seek  ways  of  enhancing  trade  across  the  Line.  In  2011  the 
Commission lifted the obligation that  potatoes traded  across  the  Green  Line  must  be  grown 
directly  from  certified  seed  potatoes.  In  2012,  no  trade  of  potatoes  not  grown  directly  from 
certified seed potatoes took place but the first consignment was traded in early 2013.  

The  TCCoC  also  expressed  a  general  interest  in  the  lifting  of  the  prohibition  of  trade  in  all 
live  animals  and  animal  products  to  the  extent  that  these  products  would  comply  with  EU 
rules and regulations. In particular, the TCCoC would be interested in commencing trade of 
farm  fish  and  whey  for  non-human  consumption  shortly.  The  Commission  is  currently 
looking into those requests. 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 continued to express its concern to the Republic of Cyprus concerning the 
movement  of  goods  from  the  government  controlled-areas  through  the  northern  part  of 
Cyprus  and  back  into  the  government  controlled-areas  through  the  Limnitis  crossing  point. 
Since  the  GLR  is  the  exclusive  legal  tool  regulating  any  movement  of  goods  and  persons 
across the Line, the Commission will prepare an amendment to the GLR in order to bring this 
practice in line with EU law. Following fruitful consultation with all concerned parties, this 
issue is now  close  to being resolved, by the tabling  of the above-mentioned proposal.  [This 
proposal was tabled on 13/05/2013]. 

3. 

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  ESBA 
Administration  would  be  important  to  help  tackle  irregular  migration  and  smuggling.  The 
Commission also calls on the ESBA Administration to find a suitable solution to address the 
issue of the "unauthorised" crossing points.  

The Commission noted with concern a few incidents which took place at the crossing points 
in early 2012 and will continue to liaise with the authorities of the Republic of Cyprus on any 
developments which could concern a change of policy.  

In  2012,  the  value  of  trade  across  the  Line  was  three  times  lower  than  in  2011.  This  sharp 
decrease is due to the fact that the sale of electricity from the northern part of Cyprus to the 
government controlled areas, which was agreed in July 2011, stopped in March 2012. Without 
taking into account the sale of electricity, the regular Green Line trade decreased significantly 
and  for  the  fourth  time  in  a  row  since  the  coming  into  force  of  the  GLR  in  2004  (by  17% 
down  €4,827,454  in  2011  to  €4,040,018)  due  partly  to  the  economic  recession.  The  most 
traded  products  were,  apart  from  electricity,  plastic  products,  building  materials  and  stone 
articles and fresh fish. The overall scale of the trade still remains limited, in part due to the 
restricted scope of the Regulation itself.  

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During the reporting period, certain obstacles to trade remained. Turkish Cypriot commercial 
vehicles, in particular lorries above 7.5 tons and buses, can only move freely across the whole 
island  if  licences  and  certificates  are  obtained  in  the  government-controlled  areas.  The 
Commission services have had talks with the relevant departments of the Republic of Cyprus 
to find a viable solution to this issue. However, no progress can be reported at this stage. No 
further progress can be reported yet either with regard to other difficulties as reported in point 
2.4. 

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 is not in 
line with EU law and requires an amendment to the Green Line Regulation. This amendment 
is in the course of adoption. .  

Overall,  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.  However,  the  Commission  is  concerned  by  the  decrease  of  both  the  crossings  of 
persons and the trade volume, which is linked, to the economic crisis but could also indicate a 
decrease  in  economic  interdependence  between  the  two  communities.  Against  this 
background, the Commission relies on the effective cooperation of the Republic of Cyprus to 
ensure effective implementation of Council Regulation (EC) 866/2004. The Commission will 
continue to monitor the implementation of the Regulation. 

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