Skipper wrote: Like I said the TCCC had the authority from 1960 to deal with commerce from the with regards to TC's, its in the 1960 consitution, you know the one that GC's still say is in force.
There is no such thing in the constitution. I believe you confuse the Communal Chamber which that according to constitution deals with matters of relegion and education with the Chamber of Commerce. Nowhere in the world any chamber of commerce has Government Excecutive power. If at a later stage the TC Chamber of commerce was granted authorisation by RoC to do some certificates that’s a totally different story. For your information today each and every town has its own chamber of Commerce. Imagine the chamber of Commerce of Paphos starting issuing certificates and doing exports to Europe!!!
wrote: You are completely wrong with the reason why exports stopped, what happened was upto a certain time (1987 I think but I cant be sure) certificates where stamped by the TCCC with RoC stamps, the authorities here (in their infinite wisdom) decided they wanted TRNC stamps, the GC's noticed this so changed their stamps also.. then in the early 90's a GC company in the UK took the UK government to the high court about TC patatoe imports, the high court ruled that this was an EU matter so it went to the ECJ which finally ruled that the stamps where not recognised and so phytosanitary cerificates did not pass and the products could not benefit from reduced duty.
None of these exports where ever said to have come from Turkey as if they had there would be high duty put on them. I cant comment on the mixing as this would have most likely happened after.
If this is true then what you are telling me is the TCs stopped their exports to Europe by their own initiative, without even the RoC putting any obstacles as to the legal status of Famagusta port. Then you should tell this to the TCs who think the so called embargo is imposed by us and not by themselves.
wrote: Like I said in my previous post, the EU is basically stamping and checking things in the north its not the RoC as per the regulation, sure they voted as the 25 members to allow it but EU officers are not working as proxy for the RoC. In light of this, if goods where deemed to have broken the rules the GC's would not be liable for a fine since they where not the ones that certified the goods.
Well if it suits you to believe that the 24 Countries of Europe decided they would jump in one of the member states (at an area where the Aquis is presumably suspended), start issuing phytosanitary and other health cerificates by themselves, appoint a local chamber of commerce issue certificates of Origin,whereas the 25th member which is the concerned party would have no option but to sign whatever they decided, then so be it. I imply to you that this was not the case. The case was that the EU wanted RoC to find a way so that TC products are exported. In fact there were alternative senarios to the TCCC issuing certificates, but in the end RoC chose that to enpower Ali Erel.
wrote: No they dont, at the Green line the officer just checks that the documentation is authentic and the the goods match the description, after that the goods have the status as "Community goods".
It depends on the product. For example dairy products don’t go so light checks as you think. Furthermore the procedure assumes to check whether the products are in same good condition as per date they were certified. True they become community goods
after they cross the green line. The question is can the travel all over Europe just like that? Lets see --- >
wrote:
In respect to the certificate of origin documentation, from Article 5:
1. Goods which are allowed to cross the line shall not be subject to export formalities.
However, the necessary equivalent documentation shall be provided, in full respect of Cypriot internal legislation, by the authorities of the Republic of Cyprus upon request.
The T2L is NOT the certificate of Origin. That is issued by the TCCC. The T2L is the cerificate that allows goods to move from the Country of Origin to other EU Countries.This is where RoC actually intervenes. We are not talking for exports but for movements from now on. Even if the products are fully certified by TCCC and the EU officials to be according to regulation, without a T2L certificate the products are condidered non EU and the receipient will pay both VAT and import duties. In case the products stayed in the RoC for some time and then gone to the port for export then the products are checked once again at the port and supplied with new sanitary certificates. The certificates of Origin of the TCCC however are still valid.
To give you a real life example suppose the EU officials and the TCCC issue you all the certificates you need. You send those certificates to your clent in UK, however you send the goods via Turkey. The receipient gets the goods gets all the EU certificates but gets no T2L. He pays VAT and import duty as if the products came from China. Furthermore the products can no longer move anywhere else in Europe unless they pay taxes and VAT for each and every move.
wrote: The Tax case is definitely paying twice, taxed once in the TRNC and again in the RoC but the VAT is n't really paying twice and as such is bad terminology.
There are two cases where there is a VAT problem, the first is if I purchase raw materials from the south the company selling them to me has to to charge me VAT because I dont have a RoC VAT number and it cant be classed as an export. The second case is if I order goods from the EU to be picked up in the south the EU company cant sell them to me without VAT because I dont have a EU VAT number.
I could get my parts via Turkey, normally containers get sent to Mersin port in Turkey where they are loaded onto another ship, for this there is the extra unloading, storage and reloading fees, plus the extra shipping fees. However this is only is useful if you are handling containers as they dont leave the free port. So what do I for a package? I have to get a company in Turkey to buy the goods on my behalf, get it delivered to them, they then have to sell it to me with a profit and fill in the relative customs declaration and pay the courier to send it to the north where once I recieve it I have to pay duty (and VAT but that is reclaimed). There are other issues aswell that in the end it just make sense to outsource it to a Turkish company who can handle the logistcs along with the lower labour costs it ends up costing you less and is more practicle. I still make some money, but I dont employ any TC's and the local economy does n't benefit either, but hey atleast the Turkish company gets a little.
So is this a viable bussiness ONLY if carried out with cheap labour in Turkey? If this is so then you have to abide to this fact.The VAT and the zero tax on European products are set by the EU to actually discourage such bussiness. There are thousands of factories all over Europe who would like to manufacture their products in China or India for peanuts and then import them in EU with no VAT and no tax. This can’t be done. Yet the labour in those countries is so cheap that companies still make a hell of profit even if they pay VAT and tax. So in your case it is simply a choice that you have to make.
Now if you think your bussiness is viable to be exceuted with Cypriot labour that’s a different story. You have to register at the VAT office of RoC, and also pay taxes as everyone else. The matter of double taxes is not the problem of the Roc it is a problem of the "trnc administration" and you should apply pressure to them to solve it. For your information however the VAT will cost you nothing in RoC (it is just a + - figure) whereas your profits upto 10,000 pounds are totally tax free. If you make much more profits then the corporate tax is about 20%. And as pitsillos said you need a good accountant that will enable you cheat as much as possible.
I hope my information is helpful.
NB. Do you view the RoC as a foreign country that just puts obstacles on you? Would you never register for VAT in RoC feeling you don’t want to be represented by it?