Considerations on COM(2008)8 - Amendment of Regulation (EC) No 866/2004 on a regime under Article 2 of Protocol 10 to the act of accession concerning rules on goods, services and persons crossing the green line in Cyprus

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table>(1)Council Regulation (EC) No 866/2004 (3) lays down special rules concerning goods, services and persons crossing the line between the areas of the Republic of Cyprus in which the Government of the Republic of Cyprus does not exercise effective control and those areas of the Republic of Cyprus in which the Government of the Republic of Cyprus exercises effective control.
(2)Trade and economic interaction on the island need to be enhanced in the light of experience gained since Regulation (EC) No 866/2004 including the previous amendment entered into force.

(3)To that end, the duties on agricultural products originating in the areas of the Republic of Cyprus in which the Government of the Republic of Cyprus does not exercise effective control should be generally removed. To allow for that, the safeguard clause in Regulation (EC) No 866/2004 needs to be strengthened.

(4)The temporary introduction of goods from the areas of the Republic of Cyprus in which the Government of the Republic of Cyprus does not exercise effective control into the areas of the Republic of Cyprus in which the Government of the Republic of Cyprus exercises effective control should be regulated, in order to encourage the provision of services by companies established in the areas of the Republic of Cyprus in which the Government of the Republic of Cyprus does not exercise effective control across the line and in order to facilitate participation by those companies in trade fairs or similar events in areas of the Republic of Cyprus in which the Government of the Republic of Cyprus exercises effective control. Furthermore, goods destined to be repaired in the areas of the Republic of Cyprus in which the Government of the Republic of Cyprus exercises effective control should be allowed to cross the line.

(5)Reasonable evidence should be provided that the introduction of such goods is effected on a temporary basis. The customs authorities of the Republic of Cyprus or the authorities of the Eastern Sovereign Base Area may ask for a guarantee to cover any potential customs or fiscal debts if certain temporarily introduced goods are not returned to the areas of the Republic of Cyprus in which the Government of the Republic of Cyprus does not exercise effective control.

(6)In connection with persons crossing the line from the areas of the Republic of Cyprus in which the Government of the Republic of Cyprus does not exercise effective control into the areas of the Republic of Cyprus in which that Government exercises effective control, it should be clarified that their personal effects shall be considered to have been declared for temporary introduction. The same should apply to means of transport.

(7)The total value of goods contained in the personal luggage of persons crossing the line from the areas of the Republic of Cyprus in which the Government of the Republic of Cyprus does not exercise effective control into the areas of the Republic of Cyprus in which that Government exercises effective control needs to be substantially increased so as to encourage economic development in the areas of the Republic of Cyprus in which the Government of the Republic of Cyprus does not exercise effective control.

(8)Regulation (EC) No 866/2004 should therefore be amended accordingly,