The proposal provides for a general lifting of duties on agricultural products originating in the northern part of Cyprus when being traded across the "Green Line".

Currently, duties must be paid for a variety of agricultural products, creating a financial and administrative burden for Turkish Cypriot traders.

Furthermore, the Commission proposes to increase the total maximum value of goods permitted to be contained in the personal luggage of persons crossing the line from EUR135 to EUR260, in order to encourage the economic development of the Turkish Cypriot community.

If the proposal is adopted, goods up to this amount could be introduced free of customs, excise duties and taxes into the government-controlled areas when introduced across the "Green Line".

This is expected to particularly stimulate the business of small Turkish Cypriot shop keepers. However, the rule would not apply to cigarettes and alcohol.

For these products, the existing quantities remain unchanged (40 cigarettes and 1 litre of spirits for personal consumption).

Finally, the proposed amendments aim at regulating in a transparent way the temporary introduction of goods (for up to six months) from the northern part of Cyprus into the areas of the Republic of Cyprus under the effective control of the Government.

This allows, for instance, that Turkish Cypriot service providers can bring their equipment across the line when providing (on a temporary basis) a service in the government-controlled areas. It will also permit the repair of equipment there.

Finally, the proposal aims to encourage the participation of Turkish Cypriot companies in trade fairs in the government-controlled areas.

The Commission proposal requires unanimous adoption by the Council.

The original "Green Line Regulation" was adopted on April 29th, 2004 to regulate the movement of persons and goods across the Green Line.

It was amended once in 2005 by Council Regulation No 293/2005, to facilitate trade in certain agricultural products such as citrus fruit, fish and honey. The new amendment can be seen as a subsequent step.