CELEX: 32004R0866
Language: en
Date: 2004-04-29
Title: Council Regulation (EC) No 866/2004 of 29 April 2004 on a regime under Article 2 of Protocol No 10 of the Act of Accession

30.4.2004          EN      Official Journal of the European Union                         L 161/ 128
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                         COUNCIL REGULATION (EC) No 866/2004
                                            of 29.4.2004
              on a regime under Article 2 of Protocol No 10 of the Act of Accession
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to Protocol No 10 on Cyprus of the Act concerning the conditions of accession of the
Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the
Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the
Republic of Slovenia and the Slovak Republic and the adjustments to the Treaties on which the
European Union is founded 1, and in particular Article 2 thereof,
Having regard to Protocol No 3 on the Sovereign Base Areas of the United Kingdom of
Great Britain and Northern Ireland in Cyprus 2 of the said Act of Accession, and in particular
Article 6 thereof,
Having regard to the proposal from the Commission, 3
1
      OJ L 236, 23.9.2003, p. 955.
2
      OJ L 236, 23.9.2003, p. 940.
3
      OJ C
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Whereas:
(4)   The European Council has repeatedly underlined its strong preference for accession by a
       reunited Cyprus. Regrettably, a comprehensive settlement has not yet been reached. In
       conformity with paragraph 12 of the conclusions of the European Council in Copenhagen,
       the Council on 26 April 2004 outlined its position on the current situation on the island.
(5)    Pending a settlement, the application of the acquis upon accession has therefore been
       suspended pursuant to Article 1(1) of Protocol No 10, in the areas of the Republic of Cyprus
       in which the Government of the Republic of Cyprus does not exercise effective control.
(6)    Pursuant to Article 2(1) of Protocol No 10, this suspension makes it necessary to provide for
       the terms under which the relevant provisions of EU law shall apply to the line between the
       abovementioned areas and those areas in which the Government of the Republic of Cyprus
       exercises effective control. In order to ensure the effectiveness of these rules, their
       application has to be extended to the boundary between the areas in which the Government
       of the Republic of Cyprus does not exercise effective control and the Eastern Sovereign
       Base Area of the United Kingdom of Great Britain and Northern Ireland.
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(7)    Since the abovementioned line does not constitute an external border of the EU, special rules
       concerning the crossing of goods, services and persons need to be established, the prime
       responsibility for which belongs to the Republic of Cyprus. As the abovementioned areas
       are temporarily outside the customs and fiscal territory of the Community and outside the
       area of freedom, justice and security, the special rules should secure an equivalent standard
       of protection of the security of the EU with regard to illegal immigration and threats to
       public order, and of its economic interests as far as the movement of goods is concerned.
       Until sufficient information is available with regard to the state of animal health in the
       abovementioned areas, the movement of animals and animal products will be prohibited.
(8)    Article 3 of Protocol No 10 explicitly states that measures promoting economic development
       in the abovementioned areas are not precluded by the suspension of the acquis. This
       regulation is intended to facilitate trade and other links between the abovementioned areas
       and those areas in which the Government of the Republic of Cyprus exercises effective
       control, whilst ensuring that appropriate standards of protection are maintained as set out
       above.
(9)    Regarding persons, the policy of the Government of the Republic of Cyprus currently allows
       the crossing of the line by all citizens of the Republic, EU citizens and third country
       nationals who are legally residing in the northern part of Cyprus, and by all EU citizens and
       third country nationals who entered the island through the Government Controlled Areas.
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(7)    While taking into account the legitimate concerns of the Government of the Republic of
       Cyprus, it is necessary to enable EU citizens to exercise their rights of free movement within
       the EU and set the minimum rules for carrying out checks on persons at the line and to
       ensure the effective surveillance of it, in order to combat the illegal immigration of third
       country nationals as well as any threat to public security and public policy. It is also
       necessary to define the conditions under which third country nationals are allowed to cross
       the line.
(8)    Regarding checks on persons, this Regulation should not affect the provisions laid down in
       Protocol No 3, and in particular Article 8 thereof.
(9)    This Regulation does not affect in any way the mandate of the United Nations in the buffer
       zone.
(10)   Since any change in the policy of the Government of the Republic of Cyprus with regard to
       the line may pose problems of compatibility with the rules established by this Regulation,
       such changes should be notified to the Commission, prior to their entry into force, in order
       to allow it to take the appropriate initiatives so as to avoid inconsistencies.
(11)   The Commission should also be allowed to amend Annexes I, and II to this Regulation with
       a view to responding to changes which may occur and require immediate action,
HAS ADOPTED THIS REGULATION:
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                                                TITLE I
                                       GENERAL PROVISIONS
                                                Article 1
                                              Definitions
For the purpose of this Regulation the following definitions shall apply:
1)    the term "line" means:
(a)   for the purpose of checks on persons, as defined in Article 2, the line between the areas under
      the effective control of the Government of the Republic of Cyprus and those areas in which
      the Government of the Republic of Cyprus does not exercise effective control;
(b)   for the purpose of checks on goods, as defined in Article 4, the line between the areas in
      which the Government of the Republic of Cyprus does not exercise effective control and both
      those areas in which the Government of the Republic of Cyprus exercises effective control
      and the Eastern Sovereign Base Area of the United Kingdom of Great Britain and Northern
      Ireland;
2)    the term "third country national" means any person who is not a citizen of the Union within
      the meaning of Article 17(1) of the EC Treaty.
References in this Regulation to areas in which the Government of the Republic of Cyprus does not
exercise effective control are to areas within the Republic of Cyprus only.
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                                                TITLE II
                                       CROSSING OF PERSONS
                                                 Article 2
                                            Check on Persons
1.    The Republic of Cyprus shall carry out checks on all persons crossing the line with the aim to
combat illegal immigration of third country nationals and to detect and prevent any threat to public
security and public policy. Such checks shall also be carried out on vehicles and objects in the
possession of persons crossing the line.
2.    All persons shall undergo at least one such check in order to establish their identity.
3.    Third country nationals shall only be allowed to cross the line provided they:
(a)   possess either a residence permit issued by the Republic of Cyprus or a valid travel document
      and, if required, a valid visa for the Republic of Cyprus, and
(b)   do not represent a threat to public policy or public security.
4.    The line shall be crossed only at crossing points authorised by the competent authorities of the
Republic of Cyprus. A list of these crossing points is laid down in Annex I.
5.    Checks on persons at the boundary between the Eastern Sovereign Base Area and the areas
not under effective control of the Government of the Republic of Cyprus shall be carried out in
accordance with Article 5(2) of Protocol No 3 of the Act of Accession.
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                                                Article 3
                                        Surveillance of the line
Effective surveillance shall be carried out by the Republic of Cyprus all along the line, in such a
way as to discourage people from circumventing checks at the crossing points referred to in
Article 2(4).
                                               TITLE III
                                       CROSSING OF GOODS
                                                Article 4
                              Treatment of goods arriving from the areas
             not under the effective control of the Government of the Republic of Cyprus
1.    Without prejudice to Article 6, goods may be introduced in the areas under the effective
control of the Government of the Republic of Cyprus, on condition that they are 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 within the meaning of Articles 23 and 24 of Council Regulation (EEC)
No 2913/92 1.
2.    These goods shall not be subject to customs duties or charges having equivalent effect, nor to
a customs declaration, provided that they are not eligible for export refunds or intervention
measures. In order to ensure effective controls, the quantities crossing the line shall be registered.
1
      OJ L 302, 19.10.1992, p. 1. Regulation as last amended by the Accession Act of 2003.
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3.     The goods shall cross the line only at the crossing points listed in Annex I and the crossing
points of Pergamos and Strovilia under the authority of the Eastern Sovereign Base Area.
4.     The goods shall be subject to the requirements and undergo the checks as
required by EC legislation as set out in Annex II.
5.     Goods shall be accompanied by a document issued by the Turkish Cypriot Chamber of
Commerce, duly authorised for that purpose by the Commission in agreement with the Government
of the Republic of Cyprus, or by another body so authorised in agreement with the latter. The
Turkish Cypriot Chamber of Commerce or other duly authorised body will maintain records of all
such documents issued to enable the Commission to monitor the type and volume of goods crossing
the line as well as their compliance with the provisions of this Article.
6.     After the goods have crossed the line into the areas under the effective control of the
Government of the Republic of Cyprus, the competent authorities of the Republic of Cyprus shall
check the authenticity of the document referred to in paragraph 5 and whether it corresponds with
the consignment.
7.     The Republic of Cyprus shall treat the goods referred to in paragraph 1 as not being imported
within the meaning of Article 7(1) of Council Directive 77/388/EEC 1 and Article 5 of Council
Directive 92/12/EEC 2, provided the goods are destined for consumption in the Republic of Cyprus.
8.     Paragraph 7 shall not have any effect on the European Communities' own resources accruing
from VAT.
1
       OJ L 145, 13.6.1977, p. 1. Directive as last amended by Directive 2004/15/EC (OJ L 52,
       21.2.2004, p. 61).
2
       OJ L 76, 23.3.1992, p. 1. Directive as last amended by Regulation EC No 807/2003
       (OJ L 122, 16.5.2003, p. 36).
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9.    The movement of live animals and animal products across the line shall be prohibited.
10.   The authorities of the Eastern Sovereign Base Area may maintain the traditional supply of the
Turkish Cypriot population of the village of Pyla with goods coming from the areas which are not
under the effective control of the Government of the Republic of Cyprus. They shall strictly
supervise the quantities and nature of the goods in view of their destination.
11.   Goods complying with the conditions set out in paragraphs 1 to 10 shall have the status of
Community goods, within the meaning of Article 4(7) of Regulation (EEC) No 2913/92.
12.   This Article shall apply immediately as from 1 May 2004 to goods wholly obtained in the
areas not under the effective control of the Government of the Republic of Cyprus and complying
with Annex II. In respect of other goods, the full implementation of this Article shall be subject to
specific rules that take full account of the particular situation in the island of Cyprus on the basis of
a Commission decision to be adopted as soon as possible and at the latest within 2 months of the
adoption of this Regulation. For such purpose, the Commission shall be assisted by a Committee
and Articles 3 and 7 of Council Decision 1999/468/EC 1 shall apply.
                                                 Article 5
                         Goods sent to the areas not under the effective control
                              of the Government of the Republic of Cyprus
1.    Goods which are allowed to cross the line shall not be subject to export formalities. However,
the necessary equivalent documentation shall be provided, in full respect of Cypriot internal
legislation, by the authorities of the Republic of Cyprus upon request.
1
      OJ L 184, 17.7.1999, p. 23.
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2.     No export refund shall be paid for agricultural and processed agricultural goods when
crossing the line.
3.     The supply of goods shall not be exempt under Article 15(1) and (2) of
Directive 77/388/EEC.
4.     The movement of goods, the removal or export of which from the customs territory of the
Community is prohibited or subject to authorisation, restrictions, duties or other charges on export
by Community law, shall be prohibited.
                                                Article 6
                                Facilities for persons crossing the line
Council Directive 69/169/EEC 1 shall not apply, but goods contained in the personal luggage of
persons crossing the line, including a maximum of 20 cigarettes and 1/4 litre of spirits, shall be
exempt from turnover tax and excise duty provided they have no commercial character and their
total value does not exceed EUR 30 per person. Exemptions from turnover tax and excise duty on
tobacco products and alcoholic beverages shall not be granted to persons crossing the line under
17 years of age.
1
       OJ L 133, 4.6.1969, p. 6. Directive as last amended by Directive 2000/47/EC (OJ L 193,
       29.7.2000, p. 73).
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                                               TITLE IV
                                              SERVICES
1.
                                                Article 7
                                                Taxation
To the extent that services are supplied across the line to and from persons established or having
their permanent address or usual residence in the areas of the Republic of Cyprus which are not
under the effective control of the Government of the Republic of Cyprus, these services shall for
VAT purposes be deemed to have been supplied or received by persons established or having their
permanent address or usual residence in the areas of the Republic of Cyprus under the effective
control of the Government of the Republic of Cyprus.
                                               TITLE V
                                        FINAL PROVISIONS
                                                Article 8
                                            Implementation
The authorities of the Republic of Cyprus and the authorities of the Eastern Sovereign Base Area in
Cyprus shall take all appropriate measures in order to ensure full compliance with the provisions of
this Regulation and to prevent any circumvention of them.
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                                                 Article 9
                                         Adaptation of Annexes
The Commission may, in agreement with the Government of Cyprus amend the Annexes to this
Regulation. Prior to amending the Annexes, the Commission shall consult the Turkish Cypriot
Chamber of Commerce or other body duly authorized by the Government of the Republic of Cyprus
as referred to in Article 4(5), as well as the United Kingdom if the Sovereign Base Areas are
affected. When amending Annex II the Commission shall follow the appropriate procedure referred
to in the relevant Community legislation relating to the matter being amended.
                                                Article 10
                                             Change of Policy
Any change in the policy of the Government of the Republic of Cyprus on crossings of persons or
goods shall only become effective after the proposed changes have been notified to the Commission
and the Commission has not objected to these changes within one month. If appropriate, and after
consultation with the United Kingdom if the Sovereign Base Areas are affected, the Commission
may propose modifications to this Regulation in order to secure compatibility of national and EU
rules applicable to the line.
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                                                 Article 11
                                Review and monitoring of the Regulation
1.    Without prejudice to Article 4(12), the Commission shall report to the Council on an annual
basis, starting not later than one year after the date of entry into force of this Regulation, on the
implementation of the Regulation and the situation resulting from its application, attaching to this
report suitable proposals for amendments if necessary.
2.    The Commission shall examine in particular the application of Article 4 of this Regulation
and the patterns of trade between the areas under the effective control of the Government of the
Republic of Cyprus and the areas not under its effective control, including the volume and value of
trade and products traded.
3.    Any member state may request the Council to invite the Commission to examine and report
back to it within a specified time frame on any matter of concern arising from the application of this
Regulation.
4.    In the event of an emergency creating a threat or risk to public or animal and plant health, the
appropriate procedures as set out in EU legislation in Annex II shall apply. In the event of other
emergencies or where other irregularities or exceptional circumstances arise which require
immediate action, the Commission may in consultation with the Government of the Republic of
Cyprus apply forthwith such measures as are strictly necessary to remedy the situation. The
measures taken shall be referred to the Council within 10 working days. The Council may, acting
by qualified majority vote, amend, modify or annul the measures taken by the Commission within
21 working days from the date of receipt of notification from the Commission.
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5.    Any Member State may invite the Commission to provide details of the volume, value and
products crossing the line to the appropriate standing or management committee, provided it gives
one month's notice of its request.
1.1.    Article 12
                                           Entry into Force
This Regulation shall enter into force on the day of accession of Cyprus to the European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Luxembourg, 29.4.2004.
                                                              For the Council
                                                        The President
                                                               M. McDOWELL
                                   __________________________
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                                                                         ANNEX I
                     List of crossing points referred to in Article 2(4)
– Ledra Palace
– Agios Dhometios
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                                                                                          ANNEX II
                          Requirements and checks referred to in Article 4(4)
–      Veterinary, phytosanitary and food safety requirements and checks as set out in measures
       adopted under Article 37 (ex Article 43) and/or Article 152(4)(b) of the EC Treaty. In
       particular, relevant plants, plant products and other objects shall have undergone
       phytosanitary checks by duly authorised experts to verify that the provisions of EU
       phytosanitary legislation (Council Directive 2000/29/EC 1) are complied with before they
       cross the line to the areas under the effective control of the Republic of Cyprus.
1
      OJ L 169, 10.7.2000, p. 1. Directive as last amended by Commission Directive 2004/31/EC
      (OJ L 85, 23.3.2004, p. 18).