Niall Collins (Limerick County, Fianna Fail)
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87. To ask the Minister for Foreign Affairs and Trade the trading scenario that exists with respect to the EU’s green line regulation in Cyprus and the free movement of persons, goods and services across the line; and if he will make a statement on the matter. [40121/17]

Simon Coveney (Cork South Central, Fine Gael)
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The Republic of Cyprus has been a Member State of the European Union since 1 May 2004 and, in the absence of a comprehensive settlement of the Cyprus problem, the application of the laws and regulations of the EU to the northern part of the island is suspended. Regulation (EC) No. 866/2004 sets out the terms under which the relevant provisions of EU law apply to the dividing line in Cyprus, between the area in which the acquis communautaireapplies and the area in which it is suspended.

The regulation stipulates that the Republic of Cyprus shall carry out checks on all persons crossing the line, sometimes known as the "Green Line". Goods are permitted to cross the line from the northern part of the island “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 northern part of the island. Where services are supplied across the line, they are, for taxation purposes, deemed to be subject to the same VAT rate as services supplied to persons in the area under the effective control of the Government of the Republic of Cyprus.

The Regulation provides that the prime responsibility for the special rules covering the crossing of goods, services, and persons belongs to the Republic of Cyprus.

Ireland fully supports the achievement of a mutually acceptable and comprehensive settlement in Cyprus, based on a bicommunal, bizonal federation, as set out in the relevant UN Security Council resolutions.