I refer the Deputy to European Council Regulation (EC) No. 866/2004 as amended, which sets out the terms under which the relevant provisions of EU law apply to the dividing line in Cyprus, between the area under the effective control of the Government of Cyprus in which the acquis communautaire applies and the area in which it is suspended. This line is not considered to be an external frontier of the European Union. The treatment of goods arriving from the areas not under the effective control of the Government of the Republic of Cyprus is dealt with under Title III of the Regulation. The recitals to the Regulation explain that “Since the [Green Line between the two parts of Cyprus] 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 above-mentioned 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.”
The European Commission reports annually on the operation of the arrangements put in place by the Cypriot authorities. It is of the view that considerable practical obstacles to trade exist. The total annual value of trade in goods is of the order of €4.5m.
The taxation of services is dealt with under Title IV of the Regulation.
There are seven crossing points along the Green Line.
