2. Legal provisions
4. Products chargeable with excise duty and their respective rates
5. Movement of harmonized products
6. When does the excise duty become chargeable?
7. Exemptions from excise duty
8. Refund of excise duty
The Republic of Cyprus, being a Member State of the European Union imposes specific excise duties on alcoholic, tobacco and energy products. Consequently, Cyprus has adopted rules relating to the holding, intra – Community movement, and monitoring of these products. The purpose of these rules is to maximize the implementation and enforcement of these duties in the Member State, where they are due. In addition to the excisable products specified by the EU policy, excise duties are imposed on other products, such us, a certain type of caviar, porcelain and motor vehicles.
2. Legal provisions
· The Excise Duties Law No. 91 (I) of 2004 as amended or replaced from time to time;
· Regulatory administrative acts issued under the Excise Duty Law No. 91 (I) of 2004. Taken together, these regulatory administrative acts can be found on this website under "Laws / Customs National legislation / Regulations, Orders and Notifications by the Excise Duties Law of 2004".
For the purposes of this text:
A registered consignor, means any natural or legal person who is registered in the EU database "System of Exchange of Excise Data - SEED», and is licensed by the Director of Customs, in the course of his business to only dispatch excise goods under a duty suspension arrangement upon their release for free circulation (see 18.104.22.168).
Entry into free circulation means, that the goods have gained Community status after they have been imported from a third country, by the payment of the import duty and the implementation of the trade policy measures required for the importation, e.g. import certificates.
A registered consignee, means any natural or legal person who is registered in SEED and is licensed by the Director of Customs, under certain rules and conditions (e.g. provide a continuous guaranty) to receive (neither hold nor dispatch), within the framework of their commercial activities, goods moving under duty suspension arrangement from another Member State. They are obliged to pay the relevant excise duty upon the receipt of the goods, or in any case, no later than the next business day.
A registered consignee that receives harmonized products on a non-systematic basis, is known as a temporary registered consignee. In these cases the permit, as it is stated above, is given for one use, for a specific amount of harmonized products and a specific time period within which the consignment will be completed, according to the information provided by the receiver (consignee). The guaranty provided is calculated according to the amount of excise duties and VAT associated with the each consignment.
An authorized warehouse keeper, means any natural or legal person who is registered in the SEED registry and is licensed by the Director of Customs within his/hers business activities to produce, process, hold, receive or dispatch harmonized goods under suspension, a tax warehouse.
A tax warehouse, means any premises, which the Director of Customs at the written request of the interested individual approves under terms and conditions, and in which harmonized products are produced, processed, held, received or dispatched, under suspension of excise duty, by the approved warehouse keeper within the framework of his/hers business activities.
A customs suspension procedure or arrangement, means the tax regime applicable to the production, processing, possession or transporting of harmonized products, which is not covered by any other customs suspension procedure or suspension customs regime (e.g. a procedure relating to the entry of goods under suspension of excise, into a free zone or a customs warehouse).
EU, means the European Union.
Republic, means the Republic of Cyprus.
ED forms & applications, means Excise Duty forms & applications.
Notification, means a decree published in the official Gazette by the Director of Customs & Excise as a secondary legislation.
4. Products chargeable with excise duty and their respective rates
The EU provides for the imposition of minimum excise duty rates, on the following product categories, regardless of whether the products are produced in the Republic, or being sent from other Member States of the EU, or being imported from third countries:
The above products are defined in Parts IX, X and XI respectively of the Excise Duty Law no. 91(I) / 2004.
Additionally, the above Law includes provisions regarding the imposition and collection of excise duties on "other products" e.g. in cars, motorcycles with engine capacity above 600 cc, smoked salmon and sturgeon, caviar, crystals, some chinaware, as defined in Part XII of the Law, for which there is no requirement for alignment with the EU provisions for imposing excise duties.
· energy products and electricity, e.g. gasoline, gasoil, kerosene, LPG, etc;
· on alcohol and alcoholic beverages, e.g. beer, wine, fermented beverages, intermediate products, whiskey, cognac, etc;
· tobacco products, i.e. cigarettes, cigars or cigarillos, fine-cut tobacco intended for the rolling (rolling) cigarettes and other smoking tobacco, e.g. tobacco for pipe.
The excise duty rates on the products that are charged with excise duty are listed in the First, Second, Third and Fourth Annexes of the above Law.
5. Movement of harmonized products
5.1. Harmonized products originating from Member States under suspension of excise duty
The Republic of Cyprus, in addition to the adaptation of the minimum excise duty rates required by the EU, has implemented certain measures for securing the harmonized rules for the holding, movement and monitoring of products subject to excise duty, which are being traded between Member States, such as the issuance of relevant permits granted by the Director of Customs.
These permits cover both the capacity of the physical or legal entities involved in the trade of harmonized products under suspension arrangements between EU Member States, as well as the licensing of the relevant premises, in which the products will be stored.
5.1.1. Receipt of harmonized products on a non-regular basis
If someone wishes to receive harmonized products on a non-regular basis, by the immediate payment of excise duty, they must submit before the dispatch of the goods, to their District Customs Office, the application form ED28. The applicant, for licensing purposes has to provide a guarantee in the form of a cash deposit. The amount of the guarantee shall cover the amount of excise duty and VAT relevant to the particular consignment. The tax due must be paid upon receipt of the product and at the latest on the next working day. The terms and conditions of the license are included in the Notification 314/2010.
5.1.2. Frequent receipt of harmonized products
If you wish to receive harmonized products, from other Member States, on a frequent basis, under the obligation of the immediate payment of excise duty upon receipt, you should submit, to the District Customs Office in which your main office belongs to, the application ED27. For obtaining such a permit you must also produce to Customs a continuous Bank guarantee (C124) for an amount which must cover the relevant taxes per consignment. Once the permit is given, the taxes due must be paid upon receipt of the product and the latest on the next working day after their arrival. The terms and conditions of the permit are included in Notification 313/2010.
5.1.3.Suspension of payment of excise duty
If you wish to receive, to produce, to process, to possess, or to send harmonized products which are under suspension of payment of excise duty, you must submit a written request to the Director of Customs, for an Authorized Warehouse Keeper license (Form E.D.2). The terms and conditions relevant to the authorization are incorporated in the Departmental Instructions no. 312/2010. In order for the application to be processed you must either be an owner, or a user of a tax warehouse in which to store the goods.
For the approval of a tax warehouse it is necessary to apply to the Director of Customs & Excise, for the appropriate permit (Form E.D.1), via the Senior Customs Officer of the Customs District in which the tax warehouse premises are to be situated. The terms, conditions and obligations of the authorization are specified in the Departmental Instructions no. 311/2010.
Harmonized products under suspension, can be sent to another EU Member State, by an Authorized Warehouse Keeper or a Registered Consignor who may be authorized by the Director, upon application E.D.29. The Registered Consignee, must comply with the conditions and obligations stipulated by the Departmental Instructions no. 315/2010.
It is necessary that the tax warehouses and all actors involved in the intra-Community movement of excise goods under suspension, to be registered in the common EU registry SEED (System of Exchange of Excise Data). Each entity should register in the Member State in which their main offices are situated. Based on this registry, an exchange of information is conducted verifying the legitimate nature of the movement and thus providing a useful tool in the fight against fraud and smuggling.
Aiming toward a more effective functioning of the internal market, the EU has set up a computerized system for monitoring and controlling the movement of harmonized products (Excise Movement and Control System), which is known as EMCS which has been operating since its introduction on April 1, 2010.
Under this system, the economic operators involved in intra-Community movement of harmonized products submit to the competent authorities of the Member States the electronic administrative document (e_AD). Consequently the competent authorities have the ability to monitor in real time such movements, and therefore reducing the risk of fraud.
The economic operators also have to gain because of the faster and timely closure of the movements, which lead to the prompt release of the guarantees covering movements.
Note that within the framework of the application of Directive 2006/123/EC of the European Parliament and of the Council dated the 12th of December 2006, on services and internal market, and the harmonizing legislation (Law 76 (I) / 2010, on the freedom of establishment of service providers and freedom on the movement of services), the Department of Customs & Excise for the purpose of simplifying the procedures and administrative cooperation required for examining requests by, authorised warehousekeepers, registered consignees or registered consignors for establishing their business activity in another Member State may, through the IMI system, request and receive information relating to this request from the competent authority of another Member State, which is an integral component of the system.
Data subjects are entitled to exercise their right of access to data relating to them in IMI, and the right to have inaccurate or incomplete data corrected and unlawfully processed data deleted in accordance with the national legislation on personal data protection.
For more information on the functioning of IMI visit the website http://ec.europa.eu/imi-net or connect via the website of the Ministry of Commerce, Industry and Tourism http://www.mcit.gov.cy.
22.214.171.124. Production or storage harmonized products
If you wish to produce or store harmonized products, you must obtain a warehouse keeper’s permit. The storage facilities must also be approved as a tax warehouse. The permit type depends on the type of product to be produced or stored.
Listed below are, the types of permits (licenses) needed for the production or storage of harmonized products, relevant summarized information, the application forms to be submitted and the relevant legislation.
126.96.36.199.1. Energy Products
188.8.131.52.1.1. License for a tax warehouse of energy products and their substitutes
In order to obtain the above license, an application form (Form E.D.1) must be submitted to the Director of the Department of Customs and Excise via the appropriate Customs Office responsible for the control of the tax warehouse. The license is granted by the Director of the Customs and Excise Department under terms and conditions governed by Public Instruments: 311/2010 concerning the licensing of a tax warehouse, 401/2004 concerning the operation of a tax warehouse of energy products and substitutes.
The owner of such a tax warehouse may execute transactions related to energy products under suspension, on the terms and conditions provided in Public Instrument no. 408/2004.
The counting procedure and the verification of stock of energy products stored in tanks or containers in liquid bulk form is described in Public Instrument 409/2004.
The dying and marking of heating fuel and fuel intended for industrial uses is prescribed in Public Instrument no. 800/2004, and gasoil used in agricultural, horticultural piscicultural works and in forestry in the P.I. 50/2003.
184.108.40.206.1.2. License for an authorized warehouse keeper of energy products and their substitutes
In order to obtain the above license, an application form (Form E.D.2) must be submitted to the Director of the Department of Customs and Excise. The license is granted by the Director of the Customs Department under terms and conditions governed by Public Instruments: 312/2010 concerning the licensing of an authorized warehouse keeper and Public Instrument 404/2004 concerning the licensing of an authorized warehouse keeper of energy products and their substitutes.
The holder of the above license may:
220.127.116.11.1.3. Authorization of premises in which energy products and their substitutes are produced outside suspension regime
• deliver energy products on terms and conditions specified in Public Instrument 410/2004 ∙ and
• receive energy products in liquid bulk form (in bulk) in accordance with Public Instrument 411/2004.
In order to obtain the above license, an application form (Form E.D.12) must be submitted to the Director of the Department of Customs and Excise. The license is granted by the Director under terms and conditions governed by Public Instrument no. 407/2004.
The license is granted for the following activities:
• for the production, processing, mixing ∙
18.104.22.168.1.4. License for a special tax warehouse of shipping fuel
In order to obtain the above license, you must have the appropriate vessel, for which you have obtained an authorization from the Cyprus Ports Authority to use for bunkering purposes.
The application shall be submitted though Form E.D.1 for the approval of the vessel as a tax warehouse. The license is granted by the Director of the Customs and Excise Department under terms and conditions governed by Public Instruments 311/2010 for the licensing of a tax warehouse, 401/2004 concerning the operation of a tax warehouse of energy products and their substitutes and 402/2004 KDP which concerns the operation of a special tax warehouse of marine fuel.
Public Instrument 413/2004, as amended by 801/2004 concerns with the marking and dyeing of marine fuel.
22.214.171.124.1.5. License of an authorized storekeeper of a special tax warehouse
If you wish to obtain the above license you should:
An application form (Form E.D.2) must be submitted to the Director of the Department of Customs and Excise. The license is granted by the Director under terms and conditions governed by Public Instrument 404/2004 which concerns the approval of an authorized storekeeper of energy products and their substitutes and by 403/2004 which concerns the approval of authorised tax warehouse keeper of special marine fuel.
126.96.36.199.1.6. License for an authorized reseller of marine fuel
If you wish to be granted the above license, you must:
• to receive raw materials from EU and third countries ∙
• for delivering raw materials or manufactured derived products to the EU∙
• payment of tax by gross payment account ∙
• for tax-free deliveries to eligible recipients ∙
• for the exemption of excise duty ∙
• for derivative products.
• possess or use a tax warehouse of energy products (see. 188.8.131.52.1.1.)
The license is granted by the Director of Customs and Excise Department under the terms and conditions governed by Public Instrument 416/2004 concerning the approval of an authorized reseller of marine fuel oil.
184.108.40.206.1.7. License for an authorized reseller of marked and dyed gasoil
• ensure that you have a permission from the Port Authority to use appropriate means of navigation for bunkering purposes.
If you wish to possess or deliver marked dyed gasoil for agricultural purposes, you must obtain a permission from the Director of Customs and Excise Department. The completed application form (Form E.D.2) must be submitted to the Director of the Department of Customs and Excise via the appropriate District Customs Office of the district in which your premises are located. The license is granted by the Director of the Customs and Excise Department under the terms and conditions specified by Public Instrument 50/2003, as amended by PI 586/2003 and 797/2004 as well as the relevant Notification no. 1/2003.
220.127.116.11.1.8. Production of Biofuel
If you wish to produce biofuel, a permission from the Customs Department must be obtained. In order to obtain the above license, you must:
In biofuel production for own use, the Director may allow, the procedure to take place in an area different than a tax warehouse, in premises approved under certain terms and conditions.
• Possess or operate an authorized tax warehouse.
• Possess an authorized warehouse keeper license.
• Submit an application for biofuel production through the E.D.25 form. The license granted is subject to the terms and conditions stated in Public Instruments listed below:
· 311/2010: for the permission of a tax warehouse
· 312/2010: for the permission of authorized warehouse keeper
· 134/2007 on the production of biofuel.
The application must be submitted through the Customs District Office of the county in which the premises are located and in which you intend to produce biofuels.
18.104.22.168.2. Alcohol and alcoholic beverages
22.214.171.124.2.1. License for beer producers
If you wish to apply for the above license, you must submit the application form ED10. Authorization is granted by the Director of the Department of Customs & Excise, under the terms and conditions specified by the Departmental Instructions, 311/2010 (tax warehouse permit), 312/2010 (authorized warehouse keeper permit) and 274/2004, which concerns the beer manufacturing license and the beer manufacturer's license.
126.96.36.199.2.2. License for the production or the bottling of beverages (licensed distillers)
If you wish to be granted the above license, you must submit the application form ED9. The authorized distillers are divided into two types:
(A) licensed distillers using duty paid stocks for the production and bottling of duty paid ethyl alcohol;
(B) licensed distillers using ethyl alcohol under suspension of the payment of excise duty.
If the beverages are produced and / or bottled for another person then, both the distiller and / or the bottler and the third person must obtain in advance an approval by the Director.
The above licenses are granted by the Director of the Department of Customs & Excise under the terms and conditions specified by the Departmental Instructions, 275/2004 for type (A) above, and 311/2010 on “licensing the establishment and operation of a tax warehouse” and 312/2010 for granting a permit to an authorized warehouse keeper of type (B).
A distiller may be authorized to additionally carry out the following activities:
188.8.131.52.2.3. Maturation warehouse
If you wish to obtain a license for operating a maturation warehouse for aging ethyl alcohol under excise duty suspension arrangements, you should submit to Customs the application form ED11. The possession of a distiller’s license of type A or B class or a license as a compounder, are prerequisites.
The permit is granted by the Director of the Department of Customs & Excise under the terms and conditions specified by the Departmental Instructions, 311/2010 “permission for the establishment and operation of a tax warehouse”, 312/2010 permission to an authorized warehouse keeper”, and 272/2004 which concerns the approval of maturation warehouses. The maturation warehouse must be equipped with storage tanks of a minimum capacity of 5,000 liters.
184.108.40.206.2.4. License for the production of ethyl alcohol (distiller’s license of type A)
For the production of ethyl alcohol, a distiller has to obtain a license of type A. For this purpose, the distiller must submit the application form ED8.
The license is granted by the Director of the Department of Customs & Excise under the terms and conditions specified by the Departmental Instructions, 311/2010 (permission for the establishment and operation of a tax warehouse), 312/2010 (permission to an authorized warehouse keeper),and 276/2004 which concerns the production of ethyl alcohol and the licensing of a type “A” distiller.
Distillers of type “A” may be conditionally authorized, upon written request to:
220.127.116.11.2.5. License for denaturing ethyl alcohol.
· produce beverages (see 18.104.22.168.2.2),
· denaturalize ethyl alcohol (see 22.214.171.124.2.5),
· maintain a maturation warehouse (see 126.96.36.199.2.3),
· produce Zivania, local type of spirit (see 188.8.131.52.2.7),
· produce intermediate products (see 184.108.40.206.2.8).
To be granted a license for denaturing ethyl alcohol the applicant should apply by using form ED13. The license is given by the Director of the Department of Customs & Excise under the terms and conditions specified by the Departmental Instructions,432/2004.
The license for denaturing ethyl alcohol, is divided into two types:
The types of denatured ethyl alcohol and the substances used in denaturing are listed in Departmental Instructions 448/2004, as amended by 642/2004.
(A) for the production of denatured ethyl alcohol from duty paid stocks;
(B) for the production of denatured ethyl alcohol under an excise duty suspension regime. The producer in this case must obtain a permission from the Director of the Department of Customs & Excise, under the terms and conditions specified by the Departmental Instructions, 311/2010 (permit for the establishment and operation of a tax warehouse), 312/2010 (permit to an authorized warehouse keeper).
220.127.116.11.2.6. License for the possession and use of simple stills.
For the possession and use of a simple still, you must submit an application ED15. A simple still must be used for the production of wine distillate by a primary distillation of fermented grapes or raisins or any residue thereof.
The bottling of wine distillate is prohibited, unless the producer obtains a special permit from the Director.
The license for the possession and use of simple stills is issued by the Director of the Department of Customs & Excise, upon application by the producer using form ED16. The license is given under the terms and conditions specified by the Departmental instructions 298/2005, which concern the production, possession, use, movement, and distribution of wine distillate. The holder of the aforementioned authorization is obliged to supply the wine distillate produced, only to licensed distillers of type A or B, or distillers or other producers, who have previously obtained a permit for the bottling of the substance, by the Director of the Department of Customs & Excise.
The movement or dispatch of wine distillate has to be accompanied by the document ED18 (Accompanying Statement of Wine Distillate).
18.104.22.168.2.7. License for Zivania (type of local spirit) producers
If you wish to be granted the above license, you must submit an application using form ED19. There are two types of licenses for Zivania producers:
The permit is granted by the Director under the terms and conditions specified in the Departmental Instructions 311/2010 on granting a permit for the establishment and operation of tax warehouses, 312/2010 dealing with the authorization of warehouse keepers, and 313/2005 which concerns the production of Zivania and the licensing of Zivania producers.
(A) for producers using duty paid stocks for the production and bottling of Zivania,
(B) for producers using duty free stocks for the production and bottling of Zivania,
22.214.171.124.2.8 License for producing intermediate products (e.g. Commandaria) in a special tax warehouse
The above license may be granted, upon the submission of a written application ED26. The application can be used for either the permission for the establishment of a special tax warehouse for intermediate products, or for the approval of an authorized warehouse keeper.
The license is granted by the Director of the Department of Customs & Excise in accordance with the Notification 432/2007. The provisions of this Notification shall not apply to persons who produce intermediate products on the basis of another license issued by the Director, in accordance with the provisions of the excise legislation e.g. license of type A distillers.
126.96.36.199.3. Tobacco products
188.8.131.52.3.1. Tobacco manufacturing license
The applicant must submit a written request, by using form ED22.
The manufacturing is done in a tax warehouse by an authorized warehouse keeper, or in a free zone, or specific premises approved by the Director as appropriate, in accordance with the terms and conditions mentioned in Notification 429/2005.
184.108.40.206.3.2. Authorization for trading or selling manufactured tobacco
If you wish to be granted the above license, you must obtain a permit from the Competent Authority denoted in the Notification 152/1968.
The license for selling, tendering or displaying for sale manufactured tobacco, specifies the premises were these transactions may take place.
220.127.116.11.3.3. License for tobacco cultivation, tobacco trading and domestic tobacco warehousing
If you wish to be licensed to plant or cultivate tobacco in the Republic, you must submit the application C81G. The license is granted by the Director of the Department of Customs & Excise under the terms and conditions specified by the Departmental Notification 174/1968.
If you wish to be licensed for tobacco trading and domestic tobacco warehousing, you must obtain a permit for domestic tobacco trading in premises approved by the Director. The terms and conditions are specified by the Departmental Notification 174/1968.
18.104.22.168.1. Licensed manufacturer of other products
If you wish to secure a license to manufacture other products subject to excise duty as specified in our national legislation, you should apply by means of form ED6. The authorization is granted by the Director of the Department of Customs & Excise under the terms and conditions specified by the Departmental Notification 273/2004. The Notification covers the manufacture, storage and disposal of the products included in the 3rd and 5th Annex of the Excise Duties Law of 2003, which have been replaced by the 2nd and 4th Annex of the Excise Duties Law 91(I) of 2004.
5.1.4 Annual operation fees
The manufacturers of excisable products are subjected to the payment of annual fees, which are set by the Minister of Finance. The annual fees applicable from May 1st 2004 are the following:
Type of fee
Amount in €
|License fee for Distillers A||2560.00|
|License fee for a distillery and distiller B||1280.00|
|License fee for a manufacturer of denatured ethyl alcohol||170.00|
|License fee for a beer manufacturer||2560.00|
|License fee for a manufacturer of Zivania||256.00|
|License fee for a manufacturer of intermediate products in a special tax warehouse||85.43|
|License fee for manufacturers of products, that meet the definition of alcohol and alcoholic beverages||854.00|
|License fee for manufacturers of other products subject to excise duties||1280.00|
|License fee for manufacturers of manufactured tobacco||2560.00|
|License fee for trading or selling manufactured tobacco||51.00|
|License for bio-fuel production||427.15|
5.2. Harmonized products imported from third countries
5.3. Movement of harmonized and other products
(A) If you wish to import harmonized products from third countries, this can be done with the immediate payment of the import duty, excise duty and VAT by means of the declaration for the release of the products for consumption.
(B) If you wish to import harmonized products from third countries, under suspension arrangements for the payment of excise duty, import duty and VAT, the products should be placed in a customs warehouse. If the import duty is paid upon import, or while the products lay in the customs warehouse, then, the goods are released for free circulation and must then be moved for storage in a tax warehouse.
5.3.1. When arriving in the Republic from other EU Member States and the excise duty has not been paid in any Member State
22.214.171.124. Harmonized products
To ensure the collection of the corresponding excise duties for consignments of harmonized products being moved under the excise duties suspension regime, due to the risks associated with the circumvention during the movement, guarantees are applicable to all Member States.
Any party handling goods under the above scheme must be registered in the Member State in which they are located (EU database SEED), while the movement of the goods is carried out under the cover of an electronic administrative document (e_AD).
The movement of harmonized goods may take place within the territory of the Community, including were the goods are moved via a third country or third territory, in the following ways:
(III) a place where the harmonized goods leave the territory of the Community;
(A) from a tax warehouse to:
(IV) a consignee belonging to diplomatic or consular corps, the armed forces of a Member State party to the North Atlantic Treaty other than the State in which the excise duty is imposed, exempted international organizations recognized by the Republic, the British armed forces stationed in the Sovereign Base Areas of the United Kingdom of Akrotiri and Dhekelia, and when the consumption of the goods is based on a treaty with a third country.
(B) from the place of importation to any destination referred to in paragraph (A) above, when the products are dispatched by a registered consignor.
The Director, may also allow the movement to a place of direct delivery in the territory of the Republic, when such a place has been designated by the authorized warehouse keeper in the Republic or by the registered consignee.
126.96.36.199. Other Products
When other excisable Community products (e.g. motor vehicles, motorcycles), are being transported to the Republic, these products must upon arrival, be declared to Customs, by the submission of the application for the verification of Community status.
Once the Community status of the above mentioned goods is established, subsequently within ten working days from the date of establishment, the goods must be given a Customs-approved, either by the payment of the respective taxes and release for free circulation, or by depositing the goods in a customs warehouse, or by dispatching the goods to another Member State, or exporting the goods to a third country.
5.3.2. Harmonized products which have been previously released for consumption, entering the Republic from other EU Member States
In cases where harmonized products subject to excise duty, have been released for consumption in the Member State of dispatch and are being sent to another EU Member State, the recipient must notify in writing the Office of the District in which the delivery premises are located using form E.D.21.
After the necessary guaranty is provided by the consignee the information is passed to the consignor who in turn is being issued the SAD (Simplified Administrative Document).
Consequently, the movement of excise goods begins. The recipient, will be obliged to pay the relevant excise duty and VAT at the Customs Department. When the appropriate duties are paid, the guaranty provided by the consignee, is released. Then, the form SAD may be certified by Customs accordingly, that the goods have been received. The certified copy of the SAD, may consequently be sent to the supplier for refund purposes at the Member State of dispatch.
5.3.3. Excisable goods imported from third countries
Customs clearance is conducted by the use of an electronic submission of the Single Administrative Document (SAD) in the computerized import system THESEAS, according to the overall procedures for imports.
6. When does the excise duty become chargeable?
The excise duty becomes chargeable at the time of release for consumption.
6.1. The release for consumption of products liable to excise duties and the subsequent collection of the excise duties, takes place when:
The excise duty is paid in the Member State where the goods are released for consumption, excluding products acquired by private individuals for their own use and transported by them, to the Republic. As regards to excisable products acquired by individuals for their own use in any Member State of the EU and are being transported in Cyprus the excise duty is collected in the Member State of acquisition.
· there is an exit of such products from a suspension arrangement, even if the exit is irregular, followed by an entry into the Republic;
· there is a production of such products not covered by a suspension arrangement, even if the production is irregular;
· there is an importation of such products, even if the importation is irregular, which is not followed by an entry into a suspension arrangement;
· there is a possession of such products outside a suspension arrangement, without having previously paid the excise duties.
On the contrary, if excisable products acquired (released for consumption), in another Member State of the EU and are being transported by individuals for commercial purposes in Cyprus, the excise duty becomes chargeable. In this case, the excise duty shall be payable in the Republic by the persons transporting the goods.
To establish whether the movement of the excisable products is intended for commercial purposes the following elements are taken into consideration:
For the purpose of the consideration to establish whether a movement is of a commercial nature, the quantities of the products should be higher than:
· the commercial status of the holders of the products and the reasons for holding the products;
· any document relating to the products;
· the nature of these products;
· the quantity of the products;
|Cigarillos ||400 items|
|tobacco smoking||1 kilogram|
6.2. Entry for home use for other products
Other products are liable to clearance for home use when:
7. Exemptions from payment of excise duties
7.1. General exemptions
· these leave a suspensive arrangement or a free zone or free warehouse;
· the lawful or irregular exit or transfer of the products from the factory or place of production in the internal market, except for deposition of the products after production in customs warehouses;
· these are legally or illegally imported , and are not placed under a suspensive arrangement or in a free zone or free warehouse;
· these are being sent from other EU Member States and are legally or illegally, enter Cyprus.
The harmonized excisable products may be exempted from payment of excise duty, when they are intended to be used:
(A) in the context of diplomatic or consular relations;
Harmonized products, may also be exempted from the payment of excise duty when the goods are sold by duty-free shops and are carried in the personal luggage of travelers to third countries.
(B) by the armed forces of any State party to the North Atlantic Treaty, other than the forces of the Member State in which the excise duty is chargeable;
(C) by recognized by the Republic international organizations, eg UN;
(D) for consumption under an agreement concluded with third countries or international organizations, provided that such an agreement is allowed or authorized with regard to exemption from value added tax;
(E) for consumption of the Armed Forces of the United Kingdom stationed in Cyprus under the Treaty of Establishment of the Republic;
(F) as supplies for ships or aircraft;
(G) for temporary import, pending re-export;
(H) for temporary entry in Cyprus when dispatched from another EU Member State;
(I) for delivery to certain persons or organizations in accordance with regulations adopted by the Cabinet of Ministers.
Full or partial exemptions may be granted in addition to the following cases:
7.2 Energy products and electricity
7.2.1. Full exemption
Full exemption is given from the payment of excise duty on the following energy products when used as:
188.8.131.52. Specific Jet-A1 fuel for jets
This fuel is kerosene, which is used to supply aircraft, engaged in international and intra-Community air navigation, with the exception of aircraft performing private flights for pleasure purposes. These terms and conditions are governed by the Notification no. 415/2004.
The kerosene is not being colored or marked and is being supplied to the aircrafts directly from the oil companies (tax warehouses of energy products).
184.108.40.206. Fuel for shipping
220.127.116.11.1. Fuel for navigation in Community waters by vessels engaged in international and intra-EU transports, including fishery
This exemption concerns fuel used for maritime navigation in Community waters, by vessels engaged in international and intra-EU transports, including fishery, with the exception of its use in private pleasure craft , and electricity produced on board such vessels. The detailed terms and conditions are covered by
the Director’s Notification no. 417/2004.
18.104.22.168.2. Fuel used in domestic maritime transport of passengers for commercial purposes
This exemption concerns gas oil, and unleaded gasoline, used by tourist vessels in the domestic carriage of passengers for commercial purposes.
The eligible person for such an exemption under the relevant notification no. 515/2005, is a person whose principal business is the carriage of passengers for commercial purposes.
The submission of an application to the Director by the use of application form ED 24, is a prerequisite in order to ensure the exemption is granted by a refund process, in accordance with the procedure laid down in the relevant Notification no. 309/2011.
22.214.171.124.3. Fuel for personal consumption of oil tankers engaged in bunkering vessels in the territorial waters of the Republic
The exemption is granted on the basis of the provisions of the Notification no. 389/2006 concerning the subject of, gas oil and heavy oil used by oil tankers which have been approved by the Director to provide bunkering services either under the special tax warehouse shipping stations ( see 126.96.36.199.1.4 ), or under the status of authorized resellers of fuel oil (see 188.8.131.52.1.4 ).
Gas oil is colored or marked in accordance with the provisions of the relevant Notification no. 413/2004.
184.108.40.206. Fuels to produce electricity
The exemption is granted upon application (ED23), to the Director of Customs. The production of an approval by the Cyprus Energy Regulatory Authority (R.A.E.K.) and a relevant guaranty are also needed. The approval of this exemption is subject to various terms and conditions.
220.127.116.11. Fuel for cement production
The exemption shall apply to fuel used in machinery directly associated with the production of cement. The fuel is colorized and marked and is received directly from the tanks of the oil companies (tax warehouses for energy products), with the presentation of certificates of receipt.
18.104.22.168. Fuel for commercial vehicles and containers coming from the European Union
An exemption is granted, provided that the energy products have been released for consumption in one Member State and are stored in the standard tanks of the commercial motor vehicles and are intended to be used as fuel by those vehicles as well as in specifically designed storage tanks fitted for refrigeration, oxygenation, thermal insulation, or other systems for which the fuel is to be used during transport.
22.214.171.124. Raw materials for manufacturing other products
This permit is granted by the Director of Customs & Excise under terms and conditions provided by Notifications 627/2004 and 267/2005, such as:
• the production of an authorization by the Director General of the Ministry of Energy, Commerce, Industry and Tourism for each receipt;
The diesel fuel is marked and colorized, while kerosene is distributed by the use of a refund procedure, upon request and proof that this particular quantity of kerosene has been actually used in the manufacturing of other products.
126.96.36.199. Diesel (gas oil) for agricultural purposes
For this exemption the recipient/user is granted a permit by the Director of Customs Department under terms and conditions according to the Notification no. 50/2003 as amended by 586/2003 and 797/2004.
The relevant form for applying for the above exemption is EDE1, which can be submitted to the Senior Customs Officer of the District in which the premises of the applicant are situated, provided that all the three of the following conditions a, b and c, are satisfied:
• the depositing of a relevant guaranty, the amount of which is determined by the Customs Headquarters;
• an application is submitted for an exemption (ED17) for each receipt.
(a) the applicant must be:
• a natural entity covered by a farmer’s insurance in the Social Security Registry;
• a natural or legal entity registered in the VAT registry in relation to agricultural activities or in the special VAT regime for farmers;
• a natural or legal entity owner of a fishing vessel registered in the registry of fishing vessels and has secured a professional fishing license;
• a natural or legal entity holder of a license to establish and operate a fish farm;
• the Irrigation Department or any Association which operates pursuant to the Governments Waterworks Law or the Irrigation Division (Villages) Law, respectively.
( b ) the diesel fuel used in agricultural machinery ( products specified in Annex A of Notification no. 50/2003).
7.2.2 . Partial exemption
A reduced rate of excise duty of €124,73 per 1.000,00 liters is imposed on energy products , i.e. gas oil and kerosene when used for the following purposes.
188.8.131.52. As heating fuel
The partial exemption is granted on the condition that the fuels are used exclusively for the operation of central heating systems or for the operation of other means used for the heating of residences or work places.
The fuel is marked and colorized and it is supplied directly from any fuel outlet.
184.108.40.206. For industrial uses
The partial exemption is granted in accordance with Notification no. 799/2004, provided that the fuel is used exclusively:
( c ) the diesel fuel is used for agricultural purposes, specifically for the activities described in Annex B of Notification no. 50/2003 associated with: Agriculture, Livestock, Forestry and Fishery servicing.
Services provided are considered to be for agricultural purposes when:
· the person who performs such services, also carries out activities falling under Annex B,
· are performed by the applicant and / or his employees,
· any equipment used is the same used for the pursuit of the other activities.
The fuel is supplied directly from any fuel outlets.
220.127.116.11. For other purposes
A reduced tax rate is imposed on gas oil and kerosene when they are being used for purposes other than motor fuels or for heating purposes, under terms and conditions established by the Notifications 627/2004 and 798/2004.
7.3. Products described by the term ethyl alcohol (ethanol)
Full exemption of excise duty is granted, in the following cases of ethyl alcohol products, under certain terms and conditions:
· in stationary motors,
· in pilot projects for technological development of more environmentally friendly products or in relation to fuels from renewable sources,
· for combined heat and power for dredging waterways and ports,
The ethyl alcohol product category covers:
• when completely denatured, which means that an approved denaturant, according to Regulation (EC ) No. 3199/93 of the Commission has been added to the ethanol,
• when used as a partially denatured alcohol which has been produced, with the addition of denaturants as defined in an Ordinance by the Cabinet of Ministers and is used for the manufacture of products not intended for human consumption, such as cosmetics, antiseptics, varnishes, etc.,
• when used by the Medical Services of the Republic of Cyprus with the approval of the Director General of the Ministry of Health,
• for the production of medicines, vinegar, flavorings used for the preparation of foodstuffs, and non-alcoholic beverages with an alcoholic strength by volume, not exceeding 1.2%,
• when used, as a raw material or as a constituent of semi-finished products used for the production of foodstuffs,
• when used in scientific research.
( a) goods of an actual alcoholic strength by volume exceeding 1.2%, falling within CN codes 2207 and 2208, even when those products constitute part of a product which falls within another chapter of the Common Nomenclature,
8. Refund of excise duty
The duty may be refunded under certain conditions. Such are the following cases:
( b) CN codes 2204, 2205, 2206 with an actual alcoholic strength by volume exceeding 22%,
( c) beverages containing intact products or other herbal products in solution.
• harmonized products, which are delivered to certain persons, bodies, organizations, authorities or associations as they are defined in paragraph 7.1 (A) - (E), and at the discretion of the Minister of Finance where the circumstances are such, that the products cannot be easily or directly supplied from duty-free stocks, but only from duty-paid;
For more information you can apply in writing to the Customs Department at:
Department of Customs & Excise,
Corner o M. Karaoli and Gr. Afxentiou, Nicosia.
Fax # : 22302031
Email : firstname.lastname@example.org
Orally can be contacted by calling phones 22601747 and 22601875
• if it is proven the Director of Customs & Excise, that energy products which have been released for consumption, have become unsuitable for their intended purpose. For refund purposes in such cases, it must be shown by the applicant that the unsuitability was caused due to contamination or accidental mixing and can be returned for recycling in a tax warehouse. The terms and conditions are specified in the Notification 406/2004;
• energy products as specified in section 7.2, pending approval by the Director of Customs;
• Excise duty on harmonized products that have been released for consumption in the Republic and has paid the tax , may be returned at the request of the person concerned, if it is proved that the products have been dispatched to another Member State and were there for consumption ie the tax paid at the destination
• Excise duty can be returned to licensed distillers if he paid on alcoholic beverages of their own making , which are exported to third countries;
• The office is obliged to return all or part of the amount of excise taxes (including excise duty) if the beneficiary has submitted an application for repayment / remission ( with required supporting documents) within three years from the payment of duty provided that they prove that all or part of the amount of duty was not payable;
• The office also is obliged to reimburse the excise duty paid on tobacco products , which due to excessive dryness or other physical cause it unfit for human consumption and destroyed at the request of the person concerned. The application for the disaster to be submitted to the Director within three years from the end of the tax year excise;
• Items included in the term 'ethyl alcohol' if paid in cases referred to in paragraph 7.3.
Excise duties Table
* The Excise Duties Law of 2004 n. 91(I)/2004 entered into force as from 1st May 2004. The rates of excise duties are in this law (Schedules 1-4), which is harmonised with the EU acquis. For the time being the law is available in Greek only.
(1)* Μotor (Propellant) fuel is the fuel used in engines or appliances which convert fuel’s chemical energy to mechanical work or thermal energy with the purpose of converting thermal energy into kinetic energy.
EXCISE DUTIES IN THE REPUBLIC OF CYPRUS
|EU HARMONISED EXCISES|
A. Energy Products and Electricity
Description of Goods
Excise duty rates
|Petroleum oil products of CN Codes 2707 10 10, 2707 10 90, 2707 30 10, 2707 30 90 and solvent naphtha of CN Code 2707 50 90 || € 479 per 1000 litres|
|Petroleum oils partly refined, including partly distilled of CN Code 2710 19 99 || € 479 per 1000 litres|
|Pentanes, hexanes, heptanes, octanes, octadecanes of CN Code 2901 10 00, benzene of CN Code 29 02 20 00 and mixed xylene isomers of CN Code 2902 44 00. || € 479 per 1000 litres|
|Unleaded petrol of CN Codes 2710 11 41, 2710 11 45 and 2710 11 49 || € 479 per 1000 litres|
|Petrol falling within CN Codes 2710 11 31, 2710 11 51, 2710 11 59 and 2710 11 70 ||€ 421 per 1000 litres|
|Gas oil used as motor fuel falling within CN Codes 2710 19 41 to 2710 19 49 ||€ 450 per 1000 litres|
|Gas oil used as heating fuel falling within CN Codes 2710 19 41 to 2710 19 49 || € 124,73 per 1000 litres |
|Gas oil falling within CN Codes 2710 19 41 to 2710 19 49 used for purposes other than those of items 6) and 7) ||€ 124,73 per 1000 litres |
|Kerosene used as motor fuel falling within CN Codes 2710 19 21 and 2710 19 25 || € 450 per 1000 litres |
|Kerosene used as heating fuel falling within CN Codes 2710 19 21 and 2710 19 25 || € 124,73 per 1000 litres|
|Kerosene falling within CN Codes 2710 19 21 and 2710 19 25 used for purposes other than of items 9) and 10) ||€ 124,73 per 1000 litres |
|Heavy fuel oil falling within CN Codes 2710 19 61 to 2710 19 69 used as heating fuel || € 15 per 1000kg|
|Liquid petroleum gas used as motor fuel falling within CN Codes 2711 12 11 to 2711 19 00 ||€ 125 per 1000kg|
|Liquid petroleum gas used as heating fuel falling within CN Codes 2711 12 11 to 2711 19 00. ||€ 0,00 per 1000kg|
|Liquid petroleum gas for other uses (excluding item no. 13 and 14) falling within CN Codes 2711 12 11 to 2711 19 00 |
|Natural gas used as motor fuel falling within CN Codes 27 11 11 00 to 27 11 21 0 || € 2,60 per gigajoule gross calorific value
|Natural gas used as heating fuel falling within CN Codes 27 11 11 00 to 27 11 21 00 |
|Natural gas for other uses (excluding item no.16 and 17) falling within CN Codes 27 11 11 00 to 27 11 21 00 |
|Coal and coke used as heating fuel falling within CN Codes 2701, 2702 and 2704 || € 0,31 per gigajoule |
|Coal and coke for other uses (excluding item no.19) falling within CN Codes 2701, 2702 and 2704 ||€ 0,00 per gigajoule |
|Electricity falling within CN Code 2716 ||€ 0,00 per MWh|
(2)*Heating fuel is considered the one intended to be used exclusively for the operation of central heating systems/storage heaters or other means used for the warming up of people in their residence or working areas.
B. Alcohol and alcoholic beverages
Description of Goods Excise duty rates
|1. Ethyl alcohol € 956,82 per hectolitre of unhydrous ethyl alcohol|
|2. Beer € 6,00 per hectolitre per degree of alcohol of final product|
|3. Still Wine € 0,00 per hectolitre|
|4. Sparkling wines € 0,00 per hectolitre|
|5. Fermented beverages other than wine and beer € 0,00 per hectolitre|
|6. Intermediate products € 45 per hectolitre|
Further information can be consulted on DG TAXUD web site: http://ec.europa.eu/taxation_customs.
C. Tobacco Products
Description of Goods Excise duty rates
(a) €1,10 per packet of 20 cigarettes and
(b) 34 % on the retail sale price
| 2. Cigars and Cigarillos € 90,00 per kilogram|
| 3. Fine-cut tobacco for the rolling of cigarettes € 150 per kilogram|
| 4. Other smoking tobacco € 150 per kilogram|
|Provided that a minimum excise duty of €2,43 per packet of 20 cigarettes shall be charged and collected regardless the highest retail sale price.|
A. Motor Vehicles
|NON EU HARMONISED EXCISES|
Excise Duty Rate
Motor vehicles classified under T.H. 8703 21 – 8703 90 (excluding ambulances and hearses as well as pick-up type vehicles with two rows of seats known as double cabins) and Van type motor vehicles classified under T.H. 8704 with a Gross Vehicle Weight not exceeding 2032 kgrs and a net cargo area not exceeding 2 cubic meters.
|(a) For vehicles with carbon dioxide (CO2) emissions (combined cycle) less or equal to 120 grams per kilometre (gr/km):
(b) For vehicles with carbon dioxide (CO2) emissions (combined cycle) exceeding 120 gr/km but not exceeding 150 gr/km:
€25 per gr/km of carbon dioxide (CO2) emissions over 120 gr/km.
(c) For vehicles with carbon dioxide (CO2) emissions (combined cycle) exceeding 150 gr/km but not exceeding 180 gr/km:
(i) €750 plus
(ii) €50 per gr/km of carbon dioxide (CO2) emissions over 150 gr/km
(d) For vehicles with carbon dioxide (CO2) emissions (combined cycle) exceeding 180 gr/km:
(i) €2250 plus
(ii) €400 per gr/km of carbon dioxide (CO2) emissions over 180 gr/km.
|Motor vehicles classified under T.H. 8703 & 8704 with two rows of seats, known as “double cabin”, with a maximum Gross Vehicle Weight not exceeding 3,5 tonnes.|
€0,26 per c.c.
| other vehicles||The following vehicles are charged with excise duties at the rate of 15% AD VALOREM|
(A) motor vehicles of the “go-kart” type exclusively used in closed and/or enclosed areas for amusement purposes
(B) amphibious motor vehicles, of a gross weight not exceeding 1000kg, having three rows of wheels, six-wheel drive, used for amusement or professional purposes and which can transport two to four persons
(C) motor vehicles of the “hovercraft” type designed to travel both on water and on land;
(D) motorized caravans of CN Code 8703
(E) old vehicles as specified in the Motor Vehicles and Road Traffic Law of 1972 as amended; and
(F) vehicles with four wheels, having the appearance of a motor cycle and which are not registered for the purposes to be driven on public roads.
Provided that Motor vehicles powered by electric engines used for the transport of persons are zero rated
For more information, interested parties may contact, in writing, the Department of Customs and Excise at the following address:
Description of Goods Excise duty rates
|A. with an engine capacity exceeding 600 c.c., but not exceeding |
1,000 c.c with or without side car € 1,71 per c.c.
B. with an engine capacity exceeding 1000 c.c with or without side car € 2,56 per c.c.
|For used motorcycles the total excise duty payable is reduced in accordance with reduction rates as fixed in a Notice issued by the Director of Customs.|
C. Other products
Description of Goods Excise duty rates
|1. Smoked salmon and smoked sturgeon (including fillets). € 5,13 per kilogram|
|2. Caviar. Caviar substitutes except those used in the manufacture|
of taramas. 30% ad valorem
|3. Articles of crystal which fall within CN Codes 7010, 7013, 7018 and 9405, |
with a lead monoxide (PbO) content by weight 24% or more and articles made
of porcelain which fall within CN Codes 6913 and 6914. 20% ad valorem
Department of Customs and Excise
Corner M. Karaoli and Gr. Afxentiou, 1096 Nicosia
The postal address is:
Director of Customs,
Fax no 22302031, 22605017
For oral inquiries you may call telephone number +357 22601743 or +357 22601885 +357 22601759 (energy products).