REPORT FROM THE COMMISSION TO THE COUNCIL Fourteenth report on the implementation of Council Regulation (EC) No 866/2004 of 29 April 2004 and the situation resulting from its application covering the period 1 January until 31 December 2017
Date: 2018-06-22
Institutions: European Commission, Secretariat-General
Subjects: Cyprus, Türkiye, United Kingdom, accession to the European Union, border control, economic consequence, foreign national, illegal migration, trade policy

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 22.6.2018 COM(2018) 488 final  REPORT FROM THE COMMISSION TO THE COUNCIL Fourteenth report on the implementation of Council Regulation (EC) No 866/2004 of 29 April 2004 and the situation resulting from its application covering the period 1 January until 31 December 2017 {SWD(2018) 352 final}  
 
 
REPORT FROM THE COMMISSION TO THE COUNCIL 

Fourteenth report on the implementation of Council Regulation (EC) No 866/2004 of 29 
April 2004 and the situation resulting from its application covering the period 1 January 
until 31 December 2017 

Council Regulation (EC) No 866/2004 on a regime under Article 2 of Protocol No 10 to the 
Act of Accession1 (hereafter the Green Line Regulation or 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 2017. 

During the reporting period, the Commission has maintained a constructive dialogue with the 
relevant  authorities  of  the  Republic  of  Cyprus  and  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  crossings  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 the number of Turkish Cypriots and of 
Greek Cypriots crossing in 2017 compared to previous years.  

According  to  data  from  the  Republic  of  Cyprus  Police  (hereafter  CYPOL),  646,569 
(previously:  613,111)  crossings by Greek  Cypriots and 267,467 crossings  by Greek  Cypriot 
vehicles  (previously:  244,929)  were  recorded  from  the  government  controlled  areas  to  the 
northern  part  of  Cyprus,  while  1,140,682  (previously:  1,138,670)  crossings  by  Turkish 
Cypriots  and  435,882  crossings  by Turkish  Cypriot  vehicles  (previously:  413,208)  from  the 
northern part of Cyprus to the government controlled areas were recorded during the reporting 
period3. 

The number of EU citizens other than Cypriots and third country nationals crossing the Line 
increased  substantially.  During  the  reporting  period  822,318  crossings  by  EU  citizens  other 
than Cypriots and by third country nationals took place (previously: 385,426). The significant 

1 

2 
3 

OJ L 161, 30.04.2004, p.128. Regulation as last amended by Council Regulation (EU) No 685/2013 of 
15 July 2013, OJ L 196, 19.7.2013, p. 1 - known as the "Green Line" Regulation. 
See third recital of the Green Line Regulation. 
The authorities of the Republic of Cyprus do not keep records concerning the return of Greek Cypriots 
to the government controlled areas or the return of Turkish Cypriots to the northern part of Cyprus. 

1 

 
                                                            
increase  in  crossings  by  EU  citizens  other  than  Cypriots  and  third  country  nationals  was 
attributed to a general increase in tourism on the island. 

The  CYPOL  figures  mentioned  above  do  not  include  data on  persons and  vehicles  crossing 
from  the  northern  part  of  Cyprus  at  the  Pergamos  and  Strovilia  crossing  points,  which  are 
under  the  authority  of  the  UK  Eastern  Sovereign  Base  Area  (ESBA).  For  these,  the  ESBA 
reports that 140,913 (previously: 125,457) crossings by Greek Cypriots and 59.852 crossings 
by Greek Cypriot vehicles (previously: 49.694) to the northern part of Cyprus were recorded. 
At the same time 457,314 (previously: 429,807) crossings by Turkish Cypriots and 272.090 
crossings  by  Turkish  Cypriot  vehicles  (previously:  246.474)  in  the  other  direction  were 
recorded. Moreover, 415,051 (previously 295,042) EU citizens other than Cypriots and third 
country nationals crossed the Line.  

In 2017, the number of CYPOL personnel working at the crossing points remained 69, as in 
2016. 

The figures gathered by the Turkish Cypriot community indicate in  2017 an increase  in  the 
number of crossings by Greek Cypriots to 1,066,284 (previously 980,724) and Greek Cypriot 
vehicles  to  392,300  (previously:  346,609)  from  the  government  controlled  areas  to  the 
northern part of Cyprus. They also indicate an increase in the number of crossings by Turkish 
Cypriots  to  1,796,353  (previously:  1,762,498)  and  Turkish  Cypriot  vehicles  to  782,656 
(previously:  728,049)  in  the  other  direction.  According  to  the  statistics  provided,  1,546,475 
EU  citizens  other  than  Cypriots  and  third  country  nationals  crossed  from  the  government 
controlled areas to the northern part of Cyprus (previously: 1,253,446).  

No incidents concerning crossings were reported in 2017. However, to date, Turkish Cypriot 
busses carrying EU citizens are still not permited by the authorities of the Republic of Cyprus 
to cross into the government controlled areas. 

Work  continued  on  construction  of  infrastructure  to  allow  the  opening  of  two  new  crossing 
points at Lefka-Apliki and Deryneia.  

The  United  Nations  Peacekeeping  Force  in  Cyprus  (UNFICYP)  continued  to  facilitate  the 
practice of religious worship by both communities.4 However, UNFICYP noted with concern 
a decline in the number of applications for religious services that it was asked to facilitate in 
the  northern  part  of  Cyprus  and  a  decline  in  the  number  of  approvals  for  such  services  in 
comparison with the same period in 2016.   

1.2. 

Irregular migration across the Green Line and asylum 

CYPOL  figures  for  2017  indicated  an  increase  in  the  number  of  migrants  who  irregularly 
crossed  the  Line  from  the  northern  part  of  Cyprus  into  the  government  controlled  areas.  In 
2017,  1,686  irregular  migrants  crossed  the  Line  in  this  way,  while  in  2016  the  number  was 
1499, and in 2015 the number was 1,290. The countries of origin with the highest number of 
irregular  migrants  apprehended  having  crossed  the  Line  were  Syria  (753),  Pakistan  (119), 
Somalia (111), Cameroon (98) and Turkey (74). Out of the 1,686 irregular migrants detected, 

4  

Report of the Secretary-General on UNFICYP [S/2018/25] of 9 January 2018, paras. 24-25.  

2 

 
                                                            
90% (1,519) applied for international protection in the Republic of Cyprus. The majority of 
these applicants were Syrians (744). 

Irregular  migrants  are  normally  apprehended  during  controls  along  the  Line  or  at  airports 
when seeking to leave Cyprus. In some cases, irregular migrants have gone to police stations 
in order to request international protection.  

CYPOL  was  able  to  identify  persons  who  had  irregularly  crossed  the  Line  into  the 
government controlled areas by using the same criteria as in previous years, primarily through 
information  included  in  their  travel  documents  and  statements  by  the  migrants  concerned.  
According  to  this  assessment,  almost  all  the  migrants  apprehended  in  the  government 
controlled  areas  after  having  irregularly  crossed  the  Line  had  previously  arrived  in  the 
northern part of Cyprus from Turkey. 

The Turkish Cypriot community confirmed that efforts had continued in the northern part of 
Cyprus  to  prevent  irregular  migration.  In  2017,  2,858  persons5  were  refused  entry  into  the 
northern part of Cyprus and 645 persons6 who had been apprehended within the northern part 
of Cyprus were returned to Turkey, which was the last state they had visited before arriving 
on the island. 

Representatives  from  the  two  communities  meet  regularly  within  a  bi-communal  Technical 
Committee on Crime and Criminal Matters (TCCCM) under UN auspices. As an extension to 
this committee, the two communities continue to use a ‘Joint Communications Room’, which 
provides a forum for the exchange of information on criminal matters.  

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

Eastern Sovereign Base Area (ESBA) 

Overall,  irregular  migration  from  the  northern  part  of  Cyprus  via  the  ESBA  decreased 
slightly.  In  2017,  2  irregular  migrants  were  apprehended  after  having  crossed  the  Line 
irregularly.7  1,263  persons  were  not  allowed  to  cross,  of  whom  the  majority  were  Turkish 
citizens (379). The ESBA authorities also refused to allow foreign  nationals from the USA, 
Ukraine, Russia, Iran and Georgia, who arrived via the northern part of Cyprus, to cross the 
Green Line.8 These persons were directed to the Agios Dhometios crossing point to undergo 
checks as per the Republic of Cyprus' entry requirements. 

Sovereign  Base  Area  (SBA)  officers  continued  to  describe  their  co-operation  with  the 
Republic of Cyprus as excellent.  

5 
6 

7   

8 

Nationals of Turkey: 421, of Syria: 348, of Turkmenistan: 279, of Iran: 119, of Iraq: 152. 
Nationals  of  Turkey:  261,  of  Syria:  118,  of  Turkmenistan:  18,  of  the  Republic  of  Moldova:  11,  of 
Nigeria: 38. 
These  2  irregular  migrants  intercepted  within  the  ESBA  were  handed  over  to  the  authorities  of  the 
Republic  of  Cyprus  and  added  to  the  overall  number  of  persons  that  irregularly  crossed  the  Line  and 
whose breakdown by nationality is provided in SWD(2018) [update], Table VII.  
Nationals of USA: 104, of Ukraine: 90, of Russia: 55, of Iran: 31, of Georgia: 28. 

3 

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

Four  "unauthorised  crossing  points"  in  or  near  the  village  of  Pergamos,  which  are  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.9 The 
SBA stated that staff can rapidly be deployed to the areas of the unauthorised crossing points 
in case of need.  

2. 

CROSSING OF GOODS 

2.1. 

Value of trade 

Under  Article  4  of  the  Green  Line  Regulation,  goods  may  be  introduced  from  non-
government  controlled  areas  into  government  controlled  areas,  provided  that  they  meet  the 
criteria  set  out  in  Article  410  and  are  accompanied  by  a  document  issued  by  the  Turkish 
Cypriot  Chamber  of  Commerce.  Pursuant  to  Article  8  of  Commission  Regulation  (EC)  No 
1480/200411, the Turkish Cypriot Chamber of Commerce (TCCoC) and the authorities of the 
Republic of Cyprus reported on a monthly basis on the type, volume and value of goods for 
which accompanying documents had been issued. Both reported 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  had 
been issued amounted to EUR 5,697,695 (previously: EUR 5,017,714). Those figures indicate 
an increase of 13.55 % of the overall value of goods for which accompanying documents had 
been issued compared to 2016. 

According to reports provided by the Republic of Cyprus, the total trade value of goods with 
accompanying  documents  which  crossed  the  Line  increased  by  9.5  %  to  EUR  4,790,964 
(previously:  EUR  4,374,968.06).  The  main  part  of  this  increase  was  comprised  by 
construction materials. The general increase was attributed to the ongoing economic recovery. 

Although not covered by the scope of the GLR, trade from the government controlled areas to 
the northern part of Cyprus decreased slightly by around 0.8 %, from EUR 1,354,947 in 2016 
to EUR 1,343,524 in 2017 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 28.04 % of the trade in the opposite direction (30.97 % in 2016).  

9 
10 

11 

OJ L 236, 23.09.2003, p. 940. 
Paragraph  1  of  Article  4  sets  out  that  the  goods  need  to  be  wholly  obtained  in  the  areas  not  under 
effective control of the Government of the Republic of Cyprus or have undergone their last, substantial, 
economically justified processing or working in an undertaking equipped for that purpose in the areas 
not under the effective control of the Government of the Republic of Cyprus. 
Commission Regulation (EC) No 1480/2004 of 10 August 2004, OJ L 272, 20.8.2004, p. 3. 

4 

 
                                                            
The Turkish Cypriot community continued to apply a trade regime that in principle "mirrors" 
the  restrictions  of  the  GLR.  Turkish  Cypriot  stakeholders  identified  the  protection  of  local 
businesses  as  the  main  reason  for  this.  This  regime  is,  however,  not  always  consistently 
applied.  

2.2. 

Type of goods 

In 2017, plastic products were the most traded item, followed by construction materials, fresh 
fish, waste or scrap products and potatoes.12  

New  products,  such  as  vetches,  printed  catalogues,  made-up  textile  for  awnings  and  olives 
were introduced. All the trade across the Line was intra-island. 

2.3. 

Irregularities 

During  the  reporting  period,  the  Republic  of  Cyprus  brought  to  the  Commission's  attention 
one particular case of irregularity concerning a shipment of tomatoes, samples of which were 
tested by the the State General Laboratory confirming presence of pirimiphos-methyl above 
the  permitted  limit.  The  Commission  informed  the  TCCoC  thereof,  which  immediately 
requested  from  the  producer  all  necessary  measures  to  ensure  full  compliance  with  the 
requirements  of  the  acquis  and  reminded  all  traders  of  vegetables  and  fruits  of  these 
requirements.  

2.4. 

Obstacles and difficulties concerning the movement of goods 

Obstacles to trade across the Line continue to persist, which, in the views of the Commission 
and Turkish Cypriot operators, form a reason for the limited level of trade.  

As mentioned in previous reports13, the issue of Turkish Cypriot commercial vehicles crossing 
to  the  government  controlled  areas  is  still  not  solved  and,  to  date,  no  Turkish  Cypriot 
commercial  vehicles  above  7.5  tonnes  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 have put in place dispositions to facilitate the 
process  for  Turkish  Cypriots  to  obtain  roadworthiness  certificates  and  professional  driving 
licences.  The  Commission  is  convinced  that  a  solution  to  the  issue  would  significantly 
contribute  to  increasing  the  level  of  trade  as  it  would  ease  the  transport  of  goods.  It  would 
furthermore strengthen the contact between Cypriot economic operators thus contributing in 
an  important  manner  to  enhancing  trust  between  both  communities.  Consequently,  the 
Commission has prepared a concept for a project on transport safety. 

As reported in previous years, the authorities of the Republic of Cyprus still do not allow the 
crossing of  processed food products due  to concerns raised by health services regarding the 
production  process  in  the  northern  part  of  Cyprus.  The  Commission  continues,  as  reported 
previously, to believe that there are no grounds under the Green Line Regulation to carry out 

12 
13  

SWD(2018), Table IV.  
See for instance the ninth, tenth, eleventh, twelfth and thirteenth annual reports on the implementation 
of the Council Regulation EC No 866/2004 and the situation resulting from its application.  

5 

 
                                                            
checks of premises in the northern part of Cyprus in order to assess if production takes place 
in line with Union rules.14  

Whilst the authorities of the Republic of Cyprus may take samples of the products for further 
analysis, in line with the application of the Green Line Regulation, they should not prevent all 
processed food from crossing. No developments took place during the reporting period on this 
issue.  

During the reporting period, the authorities of the Republic of Cyprus continued to apply the 
same  requirements  that  they  apply  to  processed  foods  to  trade  of  materials  for  contact  with 
food. The Commission continues to look into this matter.  

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. Traders continue to report on a 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  wishing  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 remained widespread, reflecting the difficulty of controlling irregular 
movements across the Line.  

In 2017, the Republic of Cyprus made 1,334 seizures of smuggled goods (previously: 1,852). 
In 2017, there was a decrease in the quantities of cigarettes and an increase in the quantities of 
hand-rolling tobacco seized by the Republic of Cyprus: 203,290 cigarettes and 440.259 gr. of 
hand-rolling tobacco (previously: 257,785 cigarettes and 374,133 gr.). It was reported that, in 
most cases, this smuggling consist of small quantities. The smuggling is attributable to price 
differentials  and  the  higher  tax  applied  on  tobacco  products  in  the  government  controlled 
areas. There was an increase of smuggling  in alcohol and agricultural products. Other items 
seized  included  goods  violating  intellectual  property  rights,  pesticides  and  animal  and  dairy 
products.  One  prosecution  was  brought  in  the  District  Court  for  smuggling.  Cases  of 
smuggling of small quantities of cigarettes were usually dealt with through the imposition of 
an administrative penalty and forfeiture. 

In  2017,  the  ESBA  authorities  recorded  an  increase  in  the  number  of  seizures  of  smuggled 
goods  within  the  ESBA;  432  seizures  were  made,  compared  to  277  in  2016.  As  in  2016, 
cigarettes and hand-rolling tobacco were the items seized most frequently.  

14  

Tenth annual report on the implementation of the Council Regulation EC No 866/2004 and the situation 
resulting from its application.  

6 

 
 
                                                            
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.were monitored and recorded by the ESBA administration.  

7 

 
 
 
2.6. 

Facilitation of trade 

The Commission continued to seek ways of enhancing trade across the Line.  

In July 2015, the Commission adopted a proposal for amending the Green Line Regulation. 
The objective of the proposal is to establish the manner in which the control mechanism for 
goods covered by a name registered under Regulation (EU) No 1151/2012 would be applied 
in the areas of the Republic of Cyprus  in which the Government of the Republic of Cyprus 
does  not  exercise  effective  control.15  This  proposal  for  amendment  was  still  pending  at  the 
end  of  the  reporting  period.  The  proposal  is  based  on  the  Common  Understanding  on  a 
temporary  solution  for  Halloumi/Hellim,  to  be  implemented  pending  the  reunification  of 
Cyprus, reached under the guidance of President Juncker during his visit to Cyprus on 16 July 
2015.16  

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 comply with EU rules 
and  regulations.  The  Commission  continues  to  look  into  the  request  to  authorise  trade  of 
farmed 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.  

The Commission encourages economic operators to take advantage of business opportunities 
and  welcomes  the  intense  efforts  undertaken  by  the  Cyprus  Chamber  of  Commerce  and 
Industry and the Turkish Cypriot Chamber of Commerce.  

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  reported  that  3,899  items  were  taken  back  to  the 
government  controlled  areas  after  having  passed  through  the  non  government  controlled 
areas.  It  was  mentioned  that  these  crossings  run  smoothly  and  that  most  of  the  movement 
takes place to and from the Kato Pyrgos-Karavostasi and Astromeritis-Zhodia crossing points. 

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 the SBA was satisfactory. The number of persons 
irregularly crossing the Line increased and the situation needs to be monitored carefully. The 
Commission  urges  the  SBA  Administration  to  deploy  the  necessary  human  resources  to 
address  the  issue  of  the  "unauthorised  crossing  points".  The  Commission  continues  to 
consider  that  stability,  predictability  and  legal  certainty  of  the  requirements  at  the  crossing 
points, and the free movement of EU citizens are of paramount importance. 

15  
16  

COM/2015/0380 final - 2015/0165 (NLE). 
http://europa.eu/rapid/press-release_MEX-15-5402_en.htm 

8 

 
 
                                                            
In 2017, the value of trade across the Line increased by 9.5 % to 4,790,964 EUR from EUR 
4,374,968,  while  the  value  of  goods  for  which  accompanying  documents  were  issued 
increased  by  13.55  %  from  EUR  5,017,714  to  EUR  5,697,695.  Plastic  products  were  the 
most-traded item, followed by construction materials, fresh fish, waste or scrap products and 
potatoes. The trade in construction materials represents the major part of the total increase. 

The  Cyprus  Chamber  of  Commerce  and  Industry  and  the  Turkish  Cypriot  Chamber  of 
Commerce  continued  their  close  co-operation  with  a  view  to  bringing  economic  benefits  to 
both communities. 

During  the  reporting  period,  certain  obstacles  to  trade  remained.  The  Republic  of  Cyprus 
continued  not  to  authorise  the  crossing  of  Turkish  Cypriot  commercial  vehicles  above  7.5 
tonnes or of processed foods. No developments took place in 2017.  

Overall,  and  while  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  continues to  be concerned that trade in  general  is at a 
low level. The Commission considers that removing the obstacles to trade mentioned in this 
report  would  help  significantly  to  increase  trade  across  the  Green  Line.  The  Commission 
hopes  that  the  work  of  the  two  Chambers  to  enhance  contacts  between  the  two  business 
communities will lead to increased economic ties. 

Against this background, the Commission contiues to rely on the co-operation of the Republic 
of  Cyprus  and  the  SBA  to  ensure  effective  implementation  of  Council  Regulation  (EC)  No 
866/2004. The Commission will continue to monitor the implementation of the Regulation.  

9