Distributing a product

Market shares

Large scale distribution is still in the developing phase in Cyprus, retail trade is more dominant. According to one of the principal distribution companies of Cyprus, CAP, there are 3,000 distribution outlets (from grocery shops to superstores) in Cyprus. 60% of these distribution outlets are retail shops and they achieve only 23% of the turnover. On the other hand, the 30 superstores of the island alone achieve more than 40% of the sales. 2 types of distribution channels seem to be developing in Cyprus: Chains of shops (mainly foreign companies) and franchise shops have been quite successful for the last few years: big fast food shops from America, international car rent companies and big brands of the clothing sector have all set up their franchises in Cyprus.

Organizations in the retail sector

Cyprus International Businesses Association

We can identify professional tradeshows on your sector.

Market access procedures

International Conventions

Member of World Trade Organisation
Party to the Kyoto protocol
Party to the Basel convention on the Control of Transboundary Movements of Hazardous Wastes and their disposal
Party to the Montreal protocol on Substances that deplete the Ozone Layer
Party of the International coffee agreement 2001

Main International economic cooperation

Cyprus is a member of the European Union, the United Nations, the Council of Europe, the World Trade Organization, the World Bank, the Commonwealth and the International Monetary Fund. It is also well represented by diplomatic missions in foreign countries.

Non tariff barriers

In accordance with its European Union membership since May, 1st of 2004, Cyprus applies the European Union trade policy like antidumping or anti-subsidy measures. The European Union import regime applies to Cyprus. If Cyprus has adopted the main part of the EU regulations on May, 1st of 2004, some transitional measures have been granted to the country regarding some EU rules like the freedom of movement for workers or cabotage inside some countries.
While the European Union has a rather liberal foreign trade policy, some products need import licenses. There are some restrictions, especially on farm products, following the implementation of the CAP (Common Agricultural Policy): the application of compensations on import and export of farm products, aimed at favouring the development of agriculture within the EU, implies a certain number of control and regulation systems for the goods entering the EU territory.
Some products entering Cyprus must be "CE" marked in respect of the European Directives adopted on the basis of the New Approach and the Global Approach. For further information, please consult the Guide to the Implementation of Directives based on New Approach and Global Approach.

Customs duties and taxes on imports

Trade with Cyprus is totally free from customs duties, provided that the country of origin of the goods is one of the other 25 EU Member States. For the non-European countries, the applicable rate should be checked at the following website about EU Customs. You can also consult the Cyprus Integrated Tariff System.
The duties for non-European countries are relatively low, especially for manufactured goods (4.2% on average for the general rate), however textile, clothing items (high duties and quota system) and food-processing industry sectors (average duties of a 17.3% and numerous tariff quotas, PAC) still have protective measures.

Customs classification

Since its accession to the European Union on May, 1st of 2004, Cyprus has adopted the EU Common External Tariff.
When the country of origin of the goods exported to Cyprus is not part of the European Union, customs duties are calculated Ad valorem on the CIF value of the goods, in accordance with the Common Customs Tariff (CCT). In order to get exhaustive regulations and customs tariffs regarding their products, exporters shall refer to the TARIC code and its database, which includes all applicable customs duties and all customs trade policy measures for all the goods. For further information, please consult the information document published by the European Commission about the impact of EU enlargement on customs policy.

Import procedures

Written declaration should be made for imports. The official document is the "Single Administrative Document". Goods presented to the customs are covered by a summary declaration. The procedure is different for agricultural products as phytosanitary certificates are required.

When industrial goods and agricultural products originating of one of the 27 Member States arrive on the Cyprus market, there are no customs duties. Trade between the EU and Cyprus consist of communautary exchanges (acquisitions and deliveries). Only the VAT must be paid in the country of consumption of the product. Systematic controls of the goods at the borders are removed and carried outside the border if the country is concerned, subject to the rules applicable to certain sensitive goods. It is important to remember that the application of the european legal framework is suspended in the north part of the country.

However, when intra-origin goods are coming in the Cyprus market, the exporter must necessarily fill a Trade of Goods Statement (DEB) or Intrastat declaration. The customs declaration (SAD) remains in force for the exchange of goods between Cyprus and third countries.

As part of the "SAFE" standards advocated by the World Customs Organization (WCO), the European Union has set up a new system of import controls, the "Import Control System" (ICS), which aims to secure the flow of goods at the time of their entry into the customs territory of the EU. This control system, part of the Community Program eCustomer, has been in effect since January 1, 2011. Since then, operators are required to pass an Entry Summary Declaration (ENS) to the customs of the country of entry, prior to the introduction of goods into the customs territory of the European Union.

Importing samples

Goods transiting Cyprus are not subject to duties. It is possible to obtain a  temporary duty exemption for items such as commercial samples and for goods intended for public displays at exhibitions or trade fairs.

For further information

Customs of Cyprus

We can indicate you which are the customs duties applied to your product.

Find out the local taxes that apply to your product.

Organizing goods transport

Main useful means of transport

The main mean of transport used for the traffic of goods in the country is the sea.
The multi-purpose ports of Limassol and Larnaca are the country's main sea gateways for seaborne cargo and passenger traffic. Both ports have become important regional warehouse and distribution centres.

Ports

The Cyprus Ports Authority

Airports

Larnaca International Airport
Paphos International Airport

Sea transport organizations

Republic of Cyprus Maritime Centre

Air transport organizations

Department of Civil Aviation

Road transport organizations

Department of Road Transport

Rail transport organizations

Get a ballpark figure for transportation costs for your product in this country through a shipping estimate.

Identifying a supplier

Type of production

The industry accounts for less than 20% of GDP. Cyprus has gradually moved from being an exporter of minerals and agricultural products in the seventies to an exporter of manufactured products in the eighties and finally to an international business centre nowadays.
Oil and gas exploration and all the energy sector is an interesting field of the economy where tenders are organized. The health sector is also developing as many projects are currently under way to modernize the system.

Business directories

Cypriotdirectory
Cyprus Business Directory

Manufacturers associations of the main industries

Cyprus Pharmaceutical Manufacturers Association
Bacchus Association of the Regional Wine producers of Cyprus

Trade Agencies and their representations abroad

Chamber of Commerce and Industry

Enterprises federation

Cyprus Employers and Industrials Associations.

Standards

National standards organizations

CYS

Integration in the international standards network

Due to its accession to the European Union in 2004, technical standards and specifications in Cyprus have shown increasing conformity with the European standards. The organization defining technical standards is the CYS (Cyprus Organization for Standards and Control of Quality). CYS is linked to the Ministry of Trade, Industry and Tourism. It is an affiliate member of three main European Standards organizations: the CENORM (European Standardisation Committee), the CENELEC (European Committee for Electro Technical Standardization) and the ETSI (European Telecommunications Standards Institute). It is also a member of the ISO (International Standardisation Organisation).

Classification of standards

Cyprus has adopted more than 15,000 European Standards since its accession to EU membership.
First of all, in terms of standardization, Cyprus has to respect EU rules and directives and then additional National rules can apply in the field of standardization. One of the good example of a EU standardization is CE marking which is compulsory for certain types of products.
To have an overview of the Standardization process in the European Union, consult the european website dedicated to it: New Approach.

Online consultation of standards

The standards catalogue is available on the Cyprus Organisation for Sandardization website.

Certification organizations

CYCERT

Find out the standards and labelling requirements that apply to your products.

Intellectual Property

National organizations

The organization responsible for the protection of brands and patents in Cyprus is the Department of Registrar of Companies and Official Receiver.

Regional organizations

None

International membership

Member of the WIPO (World Intellectual Property Organization)
Signatory to the Paris Convention for the Protection of Intellectual Property
Membership to the TRIPS agreement - Trade-Related Aspects of Intellectual Property Rights (TRIPS)