REPORT FROM THE COMMISSION TO THE COUNCIL Fifteenth 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 2018
Date: 2019-07-05
Institutions: European Commission, Secretariat-General
Subjects: Cyprus, application of EU law, border control, frontier, goods and services, illegal migration, illicit trade, liberalisation of trade, trade restriction, value of trade

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 5.7.2019 COM(2019) 323 final  REPORT FROM THE COMMISSION TO THE COUNCIL Fifteenth 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 2018 {SWD(2019) 290 final}  
 
 
REPORT FROM THE COMMISSION TO THE COUNCIL 

Fifteenth 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 2018 

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 2018. 

During  the  reporting period,  the Commission  has  maintained 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  Greek  Cypriots  and  a 
decrease in the number of Turkish Cypriots crossing in 2018 compared to previous years.  

According  to  data  from  the  Republic  of  Cyprus  Police  (hereafter  CYPOL),  1,014,340 
(previously:  646,569) crossings by Greek Cypriots  and 486,040 crossings by Greek Cypriot 
vehicles  (previously:  267,467)  were  recorded  from  the  government  controlled  areas  to  the 
northern  part  of  Cyprus,  while  1,076,667  (previously:  1,140,682)  crossings  by  Turkish 
Cypriots  and  417,629  crossings  by  Turkish  Cypriot  vehicles  (previously:  435,882)  from  the 
northern part of Cyprus to the government controlled areas were recorded during the reporting 
period3. Both the significant increase in the number of Greek Cypriots crossing and the slight 
decrease in the number of Turkish Cypriots crossing were attributed mainly to the reduction 
in value of the Turkish lira against the euro during 2018. 

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 

 
                                                           
The number of EU citizens other than Cypriots and third country nationals crossing the Line 
continued to increase. During the reporting period 1,129,293 crossings by EU citizens other 
than Cypriots and by third country nationals took place (previously: 822,318).  

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 236,156 (previously: 140,913) crossings by Greek Cypriots and 133,270 crossings 
by Greek Cypriot vehicles (previously: 59,852) to the northern part of Cyprus were recorded. 
At the same time 471,690 (previously: 457,314) crossings by Turkish Cypriots and 292,099 
crossings  by  Turkish  Cypriot  vehicles  (previously:  272,090)  in  the  other  direction  were 
recorded.4  

Two  new  crossing  points  Deryneia  and  Lefka-Apliki  became  operational  on  12  November 
2018.5 

In 2018, the number of CYPOL personnel working at the crossing points was increased to 95 
from  69  due  to  the  deployment  of  26  officials  to  the  crossing  points  Deryneia  and  Lefka-
Apliki. 

The figures  gathered by  the Turkish  Cypriot community in  2018 indicate  an increase in  the 
number  of  crossings  by  Greek  Cypriots  to  1,633,076  (previously:  1,066,284)  and  Greek 
Cypriot  vehicles  to  731,215  (previously:  392,300)  from  the  government  controlled  areas  to 
the northern part of Cyprus. They also indicate a slight decrease in the number of crossings by 
Turkish  Cypriots  to  1,759,837  (previously:  1,796,353)  but  an  increase  in  the  number  of 
Turkish Cypriot vehicles to 794,474 (previously: 782,656) in the other direction. According to 
the statistics provided, 1,814,194 EU citizens other than Cypriots and third country nationals 
crossed  from  the  government  controlled  areas  to  the  northern  part  of  Cyprus  (previously: 
1,546,475).  

No incidents concerning crossings were reported in 2018. 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. 

The  United  Nations  Peacekeeping  Force  in  Cyprus  (UNFICYP)  continued  to  facilitate  the 
practice  of  religious  worship  by  both  communities.6  UNFICYP  noted  an  increase  in  the 
number of approvals for religious services that it was asked to facilitate in the northern part of 
Cyprus in comparison with the same period in 2017.  

4  

5 

6  

Statistics for EU citizens other than Cypriots and third country nationals are not available for the current 
reporting period.   
Commission Implementing Regulation (EU) 2015/1472 of 26 August 2015, OJ L 225, 28.8.2015, p. 3-
4. 
Report of the Secretary-General on UNFICYP [S/2019/37] of 11 January 2019, para. 31.  

2 

 
                                                           
1.2. 

Irregular migration across the Green Line and asylum 

CYPOL  figures  for  2018  indicated  a  substantial  increase  in  the  number  of  migrants  who 
irregularly crossed the Line from the northern part of Cyprus into the government controlled 
areas.  In 2018, 4,451 irregular migrants  crossed the  Line in  this way;  the equivalent  figures 
for  2017,  2016  and  2015  were  1,686,  1,499  and  1,290.  The  main  countries  of  origin  of 
irregular migrants were Syria (1573), Cameroon (472), Pakistan (444), Bangladesh (391) and 
Iraq  (328).  This  sharp  increase  in  migration  is  a  rising  concern  for  the  authorities  of  the 
Republic of Cyprus. 

Out  of  the  4,451  irregular  migrants,  95%  (4,233)  applied  for  international  protection  in  the 
Republic of Cyprus. The country of  origin  with  the highest  number of applicants  was Syria 
(1,571);  it  was  reported  by  the  authorities  of  the  Republic  of  Cyprus  that  the  number  of 
successful asylum applications increased substantially compared to 2017. 

CYPOL was able to identify persons 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  2018,  3,773  persons7  were  refused  entry  into  the 
northern part of Cyprus and 870 persons8 who had been apprehended within the northern part 
of Cyprus were returned to Turkey, from where they had arrived on the island. 

Representatives from the two communities met within a  bi-communal Technical Committee 
on  Crime  and  Criminal  Matters  (TCCCM)  under  UN  auspices.  As  an  extension  to  this 
committee,  the  two  communities  continued  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) 

Irregular  migration  from  the  northern  part  of  Cyprus  via  the  ESBA  increased.  In  2018,  18 
irregular migrants were apprehended after having crossed the Line irregularly.9 1,248 persons 
were  not  allowed  to  cross,  of  whom  the  highest  number  were  Turkish  citizens  (277).  In 
accordance with the relevant provisions of Protocol 3 to the Act of Accession of the Republic 
of Cyprus, the ESBA authorities refused to  allow foreign nationals  from  the USA, Ukraine, 

7 
8 
9   

Nationals of Turkey: 380, of Syria: 411, of Turkmenistan: 708, of Iran: 284, of Iraq: 333, other: 1,657. 
Nationals of Turkey: 373, of Pakistan: 85; of Nigeria: 58, of Syria: 54, of Turkmenistan: 20, other: 280.  
Out of the 18 irregular migrants intercepted within the ESBA, 12 applied for asylum and were handed 
over  to  the  authorities  of  the  Republic  of  Cyprus.    These  are  added  to  the  overall  number  of  persons 
who  irregularly  crossed  the  Line  and  whose  breakdown  by  nationality  is  provided  in  Staff  Working 
Document SWD(2019) 290, Table VII.  

3 

 
                                                           
Russia, Argentina and Bosnia and Herzegovina who arrived via the northern part of Cyprus, 
to cross the Green Line.10 These persons were directed to crossing points outside the ESBA 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. 

Away from the crossing points, the SBA Police conducted risk-based, intelligence-led patrols 
to  counter  irregular  migration.  These  patrols  were  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.11 
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  412  and  are  accompanied  by  a  document  issued  by  the  Turkish 
Cypriot  Chamber  of  Commerce.  Pursuant  to  Article  8  of  Commission  Regulation  (EC)  No 
1480/200413, the Turkish Cypriot Chamber of Commerce 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. 

According to  the TCCoC,  the total  value of  goods for which  accompanying documents had 
been issued amounted to EUR 5,405,121 (previously: EUR 5,697,695). Those figures indicate 
a  decrease  of  5.1  %  in  the  overall  value  of  goods  for  which  accompanying  documents  had 
been issued compared to 2017.   

According to statistics provided by the Republic of Cyprus, the total trade value of goods with 
accompanying  documents  which  crossed  the  Line  increased  by  1.4%  to  EUR  4,856,892 
(previously: EUR 4,790,964). 

Although not covered by the scope of the GLR, trade from the government controlled areas to 
the northern part of Cyprus decreased significantly by around 14.3%, from EUR 1,343,524 in 

10  
11 
12 

13 

Nationals of USA: 55, of Ukraine: 96, of Russia: 63, of Argentina: 27, of Bosnia and Herzegovina: 29. 
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 

 
                                                           
2017 to EUR 1,151,723 in 2018 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 23.7% of the trade in the opposite direction (28% in 2017).  

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  2018,  plastic  products  were  the  most  traded  item,  followed  by  fresh  fish,  construction 
materials, and waste or scrap products.14 The trade in potatoes was sharply reduced due to a 
poor harvest. 

New products, such as wet wipes, scrap batteries, plastic water tanks and industrial stainless 
steel ovens were introduced. All the trade across the Line was intra-island. 

2.3. 

Irregularities 

The Customs and Excise Department of the Republic of Cyprus consulted the Commission , 
on  whether  a  container  filled  with  a  substance  declared  as  "thinner"  which  had  been  traded 
across  the  Green  Line  fulfilled  the  criteria  of  origin  in  Article  4(1)  of  the  GLR.15  Having 
analysed  the  issue,  the  Commission  advised  the  customs  authorities  that  the  mixture  fell 
within the terms of Article 4(1). However, the Commission also concluded that it was highly 
likely  that  the  provisions  of  Regulation  (EC)  No  1272/2008  on  classification,  labelling  and 
packaging  of  substances  and  mixtures  had  been violated,  as  the  container  had  not  complied 
with  the  rules  concerning  labelling  of  hazardous  substances.  The  Commission  shared  its 
assessment with the TCCoC, which informed the producer of the rules applicable to trade in 
this type of product.  

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 reports16, 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 

14 
15 

16  

Staff Working Document SWD(2019) 290, Table IV.  
Article  2(4)  of  Commission  Regulation  1480/2004  provides  that  the  authorities  of  the  Republic  of 
Cyprus shall inform the Commission services of cases of reasonable doubt as to the compliance of the 
goods with the origin criteria. 
See  for  instance  the  ninth,  tenth,  eleventh,  twelfth,  thirteenth  and  fourteenth  annual  reports  on  the 
implementation  of  the  Council  Regulation  EC  No  866/2004  and  the  situation  resulting  from  its 
application.  

5 

 
                                                           
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 is assessing potential EU support on transport safety. 

As  reported  in  previous  years,  the  authorities  of  the  Republic  of  Cyprus  do  not  allow  the 
crossing  of  processed  food  products  and  materials  for  contact  with  food  due  to  concerns 
raised  by  health  services  regarding  the  production  process  in  the  northern  part  of  Cyprus. 
During the reporting period, the Commission confirmed to the Republic of Cyprus that these 
products  are  permitted  under  the  applicable  legal  framework  to  cross  the  Green  Line  and 
should  not  be  banned  by  the  authorities  of  the  Republic  of  Cyprus.  While  they  may  take 
samples of the products at crossing points for further analysis, in line with the application of 
the  Green  Line  Regulation,  they  should  not  prevent  all  processed  food  from  crossing.  The 
Commission  proposed  implementing  a  mechanism  that  facilitates  the  crossing  of  processed 
foods and materials  for  contact  with  food while  addressing  additional safety  considerations. 
Further discussions requested by the Commission to find a solution had not taken place by the 
time this Report was prepared. The Commission remains concerned with regard to the correct 
implementation of the Green Line Regulation and will consider how to approach the matter 
further.   

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 hinder 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 2018, the Republic of Cyprus made 1,711 seizures of smuggled goods (previously: 1,334). 
In 2018, there was an increase in the quantities of cigarettes and hand-rolling tobacco seized 
by  the  Republic  of  Cyprus  at  the  Green  Line:  469,870  cigarettes  and  587,513  gr.  of  hand-
rolling tobacco (previously: 203,290 cigarettes and 440,259 gr.). The substantial increase was 
attributed to the reduction in value of the Turkish lira against the euro during 2018. There was 
also  a  significant  increase  of  45%  in  the  smuggling  of  goods  which  violated  intellectual 
property rights compared to 2017. Other items seized included alcohol, pesticides, agricultural 
products 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. 

6 

 
In  2018,  the  ESBA  authorities  recorded  an  increase  in  the  number  of  seizures  of  smuggled 
goods  within  the  ESBA;  555  seizures  were  made,  compared  to  432  in  2017.  As  in  2017, 
cigarettes and hand-rolling tobacco were the items seized most frequently.  

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. 

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.17  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 
2015.18 

With a view to facilitating the crossing of fresh fish, the authorities of the Republic of Cyprus 
extended  the  opening  hours  for  veterinary  inspection  of  fresh  fish  at  the  Agios  Dhometios 
crossing point. Checks will take place on weekdays between 07:30 to 15:00 (end of checks).  

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 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  3,093  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. 

17  
18  

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

7 

 
                                                           
2.8.   Goods contained in the personal luggage of persons crossing the Green Line 

During  the  reporting  period,  the  ESBA  authorities  consulted  the  Commission  on  the 
movement of fuel for personal consumption across the Green Line. According to Article 6(1) 
of  the  GLR,  goods  contained  in  the  personal  luggage  of  persons  crossing  the  line  shall  be 
exempt from turnover tax and excise duty as well as from other duties provided they have no 
commercial  character  and  their  total  value  does  not  exceed  EUR  260  per  person.  The 
Commission  confirmed  to  the  authorities  of  the  ESBA  and  the  Republic  of  Cyprus  that  for 
fuel contained in plastic containers a case-by-case analysis is needed to establish whether the 
fuel  at  each  crossing  is  for  commercial  purposes,  and  if  it is  not,  whether  its  value  exceeds 
EUR  260  per  person.  At  the  same  time,  the  GLR  does  not  envisage  any  checks  to  be 
performed on the fuel  contained in  the standard tanks of the vehicles  crossing the  Line  and 
there are no grounds therefore to refuse or limit these crossings.  

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 two crossing points 
Lefka-Apliki  and  Deryneia  became  operational.  The  number  of  persons  irregularly  crossing 
the Line increased substantially; the matter is a rising concern for the Republic of Cyprus 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. 

In  2018,  the  value  of  trade  across  the  Line  increased  by  1.4%  to  4,856,892  EUR  from 
4,790,964  EUR,  while  the  value  of  goods  for  which  accompanying  documents  were  issued 
decreased by 5.1 % from EUR 5,697,695 to EUR 5,405,121. Plastic products were the most-
traded item, followed by fresh fish, construction materials and waste or scrap products. 

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; no developments took place in 2018. Equally, the Republic of Cyprus does not allow 
the crossing of processed food products and materials for contact with food. The Commission 
confirmed  to  the  Republic  of  Cyprus  that  these  products  are  permitted  under  the  applicable 
legal framework to cross the Green Line and should not be banned by the authorities of the 
Republic of Cyprus. The Commission proposed implementing a mechanism that facilitates the 
crossing of processed foods and materials  for  contact  with  food while addressing  additional 
safety considerations.  No further contacts to find a solution had taken place by the time this 
Report  was  prepared.  The  Commission  remains  concerned  with  regard  to  the  correct 

8 

 
implementation of the Green Line Regulation and will consider how to approach the matter 
further.   

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  continues  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