REPORT FROM THE COMMISSION TO THE COUNCIL Tenth 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 2013
Date: 2014-05-16
Institutions: European Commission
Subjects: Cyprus, Türkiye, United Kingdom, accession to the European Union, border control, economic consequence, foreign national, illegal migration, illicit trade













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52014DC0280

REPORT FROM THE COMMISSION TO THE COUNCIL Tenth 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 2013 /* COM/2014/0280 final */









REPORT FROM THE COMMISSION TO THE
COUNCIL
Tenth 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 2013
INTRODUCTION
Council
Regulation (EC) 866/2004 on a regime under Article 2 of Protocol 10 to the Act
of Accession[1]
(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 2013.
During
the reporting period, the Council, upon a proposal from the Commission, amended
the GLR in order to allow EU goods taken out of the areas under the effective
control of the Government of the Republic of Cyprus to be taken back into those
areas after pasing through the areas of the Republic of Cyprus not under the
effective control of the Government[3].

The
Commission has maintained a constructive dialogue with the relevant authorities
of the Republic of Cyprus, the Sovereign Base Area (SBA) Administration on the
implementation of the Regulation, as well as with the Turkish Cypriot Chamber
of Commerce (TCCoC). 

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 an
increase in both the number of Greek Cypriots and Turkish Cypriots crossing in
2013 compared to previous years. 
According
to data from the Republic of Cyprus, 520,410 (previous: 481,732) crossings by
Greek Cypriots and 183,185 crossings by Greek Cypriot vehicles (previous:
154,778) were noted from the government-controlled areas to the northern part
of Cyprus and 877,759  (previous: 850,362) crossings by Turkish Cypriots and
323,655 crossings by Turkish Cypriot vehicles (previous: 280,358) 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 517,580 crossings were
effected by EU citizens other than Cypriots and by third country nationals
(previous: 530,014). 69.64% of these crossings (360,469) occurred at the Ledra Street crossing point which continued to account for the vast majority of crossings by
non-Cypriots (primarily tourists). 
The
figures gathered by the Turkish Cypriot community indicate an increase in the
number of  crossings by Greek Cypriots (i.e. 723,904) and a decrease in the
number of crossings by Greek Cypriot vehicles (i.e. 210,937) from the
government-controlled areas to the northern part of Cyprus. They also indicate
a decrease in the number of crossings by Turkish Cypriots (1,313,633) and
crossings by Turkish Cypriot vehicles in the other direction (i.e. 432,824). There
were 968,066 foreign nationals 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.[5]
No detailed statistics are kept by the ESBA Administration for these two
crossing points. However, the ESBA reports, based on information from the
Turkish Cypriot community, that 84,551 (previous: 48 807) Greek Cypriots
crossed to the northern part of Cyprus and 216,081  (previously: 315,683)
Turkish Cypriots crossed to the government-controlled areas, while 124,323 EU
citizens other than Cypriots and third country nationals crossed in both
directions, through the crossing points situated within the ESBA. 
In
2013, the number of CYPOL personnel working directly at the crossing points
decreased to 75 (80 in 2012).
The
vast majority of the crossings took place smoothly. Fewer incidents than last
year were reported, but they remain a source of concern to the Turkish Cypriot
community.
The
Commission received claims in early 2013 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 were informed that
they were no longer able to drive in the government controlled areas if they
did 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 under Art 10 GLR. The authorities of the Republic of Cyprus have informed the Commision that third country nationals can drive in the
government-controlled areas as long as they are holders of a valid driving
licence from their country of origin or an international driver licence. 
As stated on
several occasions, the Commission attaches great importance to the stability of
practice at the crossing points and to the free movement of EU citizens and
their families across the Green Line. 
With UNFICYP
support, important steps were taken to facilitate the practice of religious
worship. Religious leaders benefited from easier crossing possibilities in both
directions.
1.2.        Irregular migration across
the Green Line and asylum
CYPOL
figures for 2013 continued to indicate a decrease in irregular migration across
the Line from the northern part of Cyprus to the government-controlled areas.
In 2013, 1043 irregular migrants (previous: 1,265) were apprehended within the
government-controlled areas.[6]
4 irregular migrants entered directly into the government-controlled areas
(previous: 19) and 37 persons (previous: 13) entered via the ESBA, bringing the
total number of apprehended irregular migrants to 1084 (previous: 1,297). As a
probable reason, CYPOL indicates 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 strategic plan for 2012-2015 to combat irregular
migration. The countries of origin with the highest number of apprehended
irregular migrants after having crossed the Gren Line were Syria, Pakistan and Iran (Annex VII). 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 1043 irregular migrants, 491 persons (47%) applied for asylum in the Republic of   Cyprus. During the reporting period, there was again an increase of citizens
of Syria who applied for asylum (337 in 2013, 294 in 2012).
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 pieces of information included in their documents, statements
by migrants and other forms of evidence.. 
Based
on the analysis made by CYPOL, most irregular migrants apprehended after having
crossed the Line arrived in the northern part of Cyprus coming from the Turkish
territory. 
According
to information received from the Turkish Cypriot community, 25 irregular
migrants were apprehended in the northern of part of Cyprus, 14 of them
Syrians. 2,267 persons[7]
were refused entry into the northern part of Cyprus at different points of
entry and 637 persons were returned[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 a bi-communal Technical Committee on
Crime and Criminal Matters under UN auspices. As an extension to this
committee, the two communities have also established a ‘Joint Communications
Room’, which provides a forum for the exchange of information on criminal
matters. Good cooperation led to the opening of criminal investigations.[9] 
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 slightly increased during the reporting
period. SBA officers continue to describe their cooperation with the Republic of   Cyprus as excellent. During 2013, 1,042 persons were not allowed to cross,
the majority being Turkish citizens living in the northern part of Cyprus. Other foreigners were tourists from USA, Iran, Russia and Australia who arrived via the northern part of Cyprus. These persons were directed to the Agios
Dhometios crossing point for processing per Republic of Cyprus entry
requirements.[10]
A
total of 37 illegally staying foreigners were arrested within the ESBA[11], of
whom 25 had crossed to the government-controlled areas legally, but stayed on
after their visas had expired. 11 entered the island by the northern part of Cyprus and crossed the Line irregularly. 3 facilitators 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 used
by local residents and farmers are particularly difficult to control. As
mentioned in previous reports, these "unauthorised crossing points"
remain an area of concern and a suitable solution in line with Article 5 (2) of
Protocol No 3 to the 2003 Act of Accession should be found.[12] The
SBA has informed that higher levels of staff availability during the reporting
period have allowed them to increase the level of land patrols on the Green
Line and the "unauthorised crossing points" and to rapidly deploy
staff to these in case of need.

2.                      
CROSSING OF GOODS

2.1.        Value of trade
Pursuant
to Art 8 of the Commission Regulation (EC) 1480/2004[13], the
Turkish Cypriot Chamber of Commerce 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 report on 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 the TCCoC, the total value of goods for which accompanying documents were
issued amounted to EUR 4,311,615 (previous: EUR 4,835,528) whereas
the value of goods actually traded was EUR 3,836,845 (previous: EUR 4,196,465).
Those figures indicate a  further decrease of Green Line trade of 8.5% compared
to 2012. This figure is substantially lower than the EUR 6,267,082 figure of
the peak period of trade (1.5.2009-30.4.2010).
According
to reports provided by the Republic of Cyprus, the total trade value of goods
which crossed the Line decreased by 15,55% to EUR 3,411,593. Decrease has
been notable for building materials, aluminium/PVC products, wooden
products/furniture and vegetables. Stakeholders mention the economic crisis as
the main factor leading to this decrease. It was also mentioned that many
operators consider that the administrative burden necessary to engage in Green
Line trade is disproportionate to the benefit obtained. 
Although
not covered by the scope of the GLR, trade from the government-controlled areas
to the northern part of Cyprus decreased by around 21%, from EUR 1,014,067
in 2012 to EUR 799,396 in 2013 according to figures from the Cyprus
Chamber of Commerce and Industry (CCCI). Trade from the government-controlled
areas to the northern part of Cyprus represents 23,4% of the trade in the
opposite direction (11,3% in 2012). 
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 Turkish Cypriot stakeholders
as the main reason. 
2.2.        Type of goods
In
2013, plastic products were the most traded item, followed by fresh fish, raw
scrap material and building materials/articles of stone.[14] There
was an increase in the value of plastic products trade (bottles, caps and
containers, bags, boxes, cases).
New
products such as locust beans, galvanized stands, plastic bag handles, stained
glass, cornstalk, scrap iron, cables, dynamos, electric engines, metal hangers
and sweet and cayenne peppers were introduced but had a very limited impact on
the trade. All the trade across the Line was intra-island and there was no
export registered to other EU Member States or third countries.
Trade
of honey from the areas not under the effective control of the Government became
possible in early 2013, although no consignment was traded since all the
production was absorbed by the local market. 
2.3.        Irregularities
The
  Republic of Cyprus authorities reported 8 cases of irreguralities concerning different
vegetables. Irregularities consisted of (a) quantities in excess of those
declared (4 cases), (b) Turkish products (2 cases), and (c) products that were
not declared and did not have a certificate of origin (2 cases). The
authorities of the Republic of Cyprus destroyed the products or excess
quantities in question and applied a pecuniary sanction. During the reporting
period, the Republic of Cyprus brought to the Commission's attention one
particular case involving carrots. The Commission informed TCCoC thereof. TCCoC
investigated the matter and suspended the trader from trading across the Green
Line for six months.
The
 Republic of Cyprus also wrote to the Commission expressing concerns on the
origin and amounts of fresh fish being traded across the Green Line, including
allegations of cases where the fish in question would not have been caught in
the Mediterranean. The Commission raised this matter with TCCoC, which took
measures to further ensure that fresh fish traded across the Green Line comes
exlusively from vessels included in the list of compliant vessels referred to
in Commission Decision 2007/330/EC[15].
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
decrease of trade. 
As
mentioned in previous reports, the issue of Turkish Cypriot commercial 
vechicles carrying goods and passengers crossing to the government-controlled
areas is not yet 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. No progress could be
reported last year. To date, no Turkish Cypriot commercial vehicles above 7.5
tons can cross the Line unless they have fully acquis-compliant documents
issued by the Republic of Cyprus. The authorities of the Republic of Cyprus have informed the Commission that they put in place dispositions to facilitate obtaining
roadworthiness certificates and professional driving licences for Turkish
Cypriots. Since summer 2013, the Commission has held contacts with the
authorities of the Republic of Cyprus as well with Turkish Cypriot stakeholders.
In the light of the suspension of the acquis in the non government controlled
areas as per Protocol 10 to the 2003 Accession Treaty, a mechanism could facilitate
the crossing of Turkish Cypriot commercial vehicles and address safety
considerations. These efforts had not produced a result at the end of the
reporting period. 
Problems
around processed foods persisted in 2013. 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 had informed the authorities of the Republic of Cyprus that there
are no grounds under the Green Line Regulation to carry out checks other than
those provided for in that Regulation, in particular to carry out checks of
premises in the areas to assess if production takes place in line with Union
rules. 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 from summer 2013,
the Commission undertook similar efforts to those consented for commercial
vehicles in view of putting in place a mechanism that facilitates the crossing
of processed foods and addresses safety considerations. Discussions have not
produced a result at the end of the reporting period.  
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 products. In addition, it was mentioned
that traders from both communities are faced with many administrative problems 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. 
2.5.        Smuggling of goods
The
smuggling of goods remains widespread, reflecting the geographical pattern of
the Line. 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. 
In
2013, the Republic of Cyprus conducted 2,873 seizures (previous: 1,305). In
2013, there has been a substantial increase in the quantities of cigarettes and
hand rolling tobacco seized by the Republic of Cyprus: 175,340 cigarettes and
300,704 gr. of hand rolling tobacco (previous: 48,939 cigarettes and 49,380
gr., respectively). It was reported that for most, this smuggling consists of
small quantities. Other items seized include mainly goods violating
intellectual property rights, as well as animal and dairy products. There were
no criminal cases filed in the district court for smuggling. For the majority
of the reported cases, an administrative penalty is imposed.
The
SBA have made changes to the Customs Ordonance to enhance powers available to
their officers, allowing them to stop and search vehicles suspected of using
unofficial routes to cross the Green Line. Together with higher levels of staff
availability, this has resulted in an increased level of detection of goods.
351 seizures have been operated in 2013 (previous: 217).  
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 has fixed new values for the amounts of cigarettes and
hand rolling tobacco destined to the traditional supply of Turkish Cypriot
inhabitants of Pyla. 
2.6.        Facilitation of trade
The
Commission continues to seek ways of enhancing trade across the Line. The first
consignment of potatoes not grown directly from certified seeds was traded in
early 2013.[16]

The
TCCoC continued to express 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. An attempt to allow
the trade of whey for transformation into biogas in the government-controlled
areas could not materialise because the nature of the measures to be taken
during transformation in the existing facilities would have rendered the
operation  unfeasible and economically unjustifiable. The Commission is
currently looking into the request to authorise trade of farm fish. 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.
In
September, UNDP sponsored an off-island brainstorming exercice in Malta bringing together 60 prominent Cypriot civic, bussiness and political leaders. The
three-day event reached consensus on the need to create new opportunity for intercommunal
business cooperation in order to demonstrate the benefits of a settlement.
2.7.        Union goods taken back to
the areas under the effective control of the Government of the Republic of
Cyprus after passing through the areas which are not under its effective
control.
The
  Republic of Cyprus authorities have reported that 5091 items have been taken
back to the government-controlled areas after having passed through the non
government-controlled areas. It has been mentioned that most of this movement
takes place to/from the Kato Pyrgos-Karavostasi and Astromeritis-Zhodia
crossing points. In a few instances, the intervention of the veterinary service
was necessary before the goods were allowed to be taken back.

3.                      
CONCLUSIONS

As
stated in previous reports, the control of the Line at the authorised crossing
points by the authorities of the Republic of Cyprus and of the SBA and efforts
deployed are satisfactory despite budgetary constraints. The irregular crossing
of third country nationals remains an area of concern, and the Commission
assesses that 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 and smuggling. The Commission
also calls on the SBA Administration to find a suitable solution to address the
issue of the "unauthorised" crossing points. 
The
Commission noted that a few incidents took place at the crossing points in
early 2013. The Commission continues to consider that stability and
predictability of the requirements at the crossing points is of paramount
importance, and will continue to raise this matter with the relevant authorities
of the Republic of Cyprus.  
In
2013, the value of trade across the Line decreased significantly and for the
fifth time in a row since the coming into force of the GLR in 2004 (by 15,55%
down to EUR 3,411,593 from EUR 4,040,018, according to figures
provided by the Republic of Cyprus) greatly due to the economic recession. Plastic
products were the most traded item, followed by fresh fish, raw scrap material
and building materials/articles of stone. The overall scale of the 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 tons and buses, can only
move freely across the whole island if acquis-compliant licences and
certificates are obtained in the government-controlled areas. The Commission
services held contacts with the relevant departments of the Republic of Cyprus and other stakeholders in view of putting in place a viable solution to this
issue that facilitates the movement of Turkish Cypriot commercial vehicles
across the Line while addressing safety issues. However, no outcome was reached
at the end of the reporting period on this matter nor with regard to the issue
of processed foods. 
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 has been regularised. 
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. Although the increase in the number of crossings is a
welcomed development, the Commission remains concerned by the decrease of the
trade volume, which is linked to the economic crisis. There is no evidence that
economic interdependence between the two communities has increased. Against
this background, the Commission relies on the effective cooperation of the Republic of   Cyprus and the SBA to ensure effective implementation of Council Regulation (EC)
866/2004. The Commission will continue to monitor the implementation of the
Regulation.
[1]               OJ L 161, 30.04.2004, p.128. Regulation as last
amended by Council Regulation (EU) No 685/2013 of July 2013, OJ L 196,
19.7.2013, p. 1- known as the "Green Line" Regulation.
[2]               See 3rd recital of the Green Line
Regulation.
[3]               Council Regulation (EU) No 685/2013 of 15 July 2013,
OJ L 196, 19.7.2013, p. 1.
[4]               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.
[5]               The GLR does not contain reporting obligations for
this traffic.
[6]               This figure excludes persons not allowed to cross the
Line, as the Republic of Cyprus does not keep official statistics on those.
However, CYPOL estimates that in 2013 around 2000 persons were not allowed to
cross into the government-controlled areas. 
[7]               From Syria: 485, Turkey: 473, Turkmenistan: 82, Iraq: 66, Georgia: 30.
[8]               Turkey: 229, Moldova: 61, Syria: 47, Iran: 21, Nigeria: 8.
[9]               Report of the Secretary-General on the United Nations
operation in Cyprus, 30 December 2013.   
[10]             Turkey: 716, USA: 55, Iran: 42, Russia: 39, Australia: 25.
[11]             Vietnam: 9, Egypt: 6, Somalia: 3, Moldova: 3, India: 3,
Philippines: 3, Georgia: 2, Syria: 2, Comoros: 2, Ukraine: 1, Russia: 1, Sri
Lanka: 1, Sudan: 1.  
[12]             OJ L 236, 23.09.2003, p. 940.
[13]             Commission Regulation (EC) No 1480/2004 of 10 August
2004, OJ L 272, 20.8.2004, p. 3.
[14]             Annex IV. 
[15]             Commission Decision of 4 May 2007 (2007/330/EC), OJ L
123, 12.5.2007, p. 30.  
[16]             In 2011 the Commission lifted the obligation that
potatoes traded across the Line must be grown directly from certified seed
potatoes.