brexit and cyprus

How to prepare for Brexit

Customs guide for businesses

In the absence of a Withdrawal Agreement, which would put in place a transition period until the end of 2020 (with the possibility of an extension foreseen in the Withdrawal agreement), the UK will be treated as a non-EU country for customs purposes as of 30 March 2019.

It is now urgent that businesses in the EU start preparing for the UK’s withdrawal, if they have not yet done so.

Brexit will affect your company if…

  • … it sells goods or supplies services to the UK, or
  • … it buys goods or receives services from the UK, or
  • … it moves goods through the UK.

What does this mean?

Without a transitional period (as tabled in the Withdrawal agreement) or a definitive arrangement, trade relations with the UK will be governed by general WTO rules, without application of preferences, as of 30 March 2019.

This means in particular that:

  • Customs formalities will apply, declarations will have to be lodged and customs authorities may require guarantees for potential or existing customs debts.
  • Customs duties will apply to goods entering the EU from the United Kingdom, without preferences.
  • Prohibitions or restrictions may also apply to some goods entering the EU from the United Kingdom, which means that import or export licences might be required.
  • Import and export licences issued by the United Kingdom will no longer be valid in the EU (EU27).
  • Authorisations for customs simplifications or procedures, such as customs warehousing, issued by the United Kingdom will no longer be valid in the EU (EU27).
  • Authorised Economic Operator (AEO) authorisations issued by the United Kingdom will no longer be valid in the EU (EU27).
  • Member States will charge VAT at importation of goods entering the EU from the United Kingdom. Exports to the United Kingdom will be exempt from VAT.
  • Rules for the declaration and payment of VAT (for supplies of services such as electronic services), and for cross-border VAT refunds will change.
  • Movements of goods to the United Kingdom will require an export declaration. Movement of excise goods to the UK may also require an electronic administrative document (eAD).
  • Movements of excise goods from the United Kingdom to the EU (EU27) will have to be released from customs formalities before a movement under Excise Movement and Control SystemSearch for available translations of the preceding link (EMCS) can begin.

What should you do?

All businesses concerned have to prepare, make all necessary decisions, and complete all required administrative actions, before 30 March 2019 in order to avoid disruption.

Follow the checklist below and get to know which practical steps you need to take as soon as possible to be prepared.

Brexit checklist for traders


  • ASSESS whether your business trades with the UK or moves goods through the UK.

If it does:

  • REGISTER your business with the national customs authority, if you have not done so for trading with non-EU countries.  You can find the contact details of the national customs authorities in this list.
  • ASSESS whether your business is ready to continue trading with or via the UK by having the necessary:
  1. human capacity (staff trained in customs matters);
  2. technical capacity (IT systems and others); and
  3. customs authorisations, such as for special procedures (storage, processing or for goods under the “specific use” rule).
  • ENQUIRE with your national customs authority about the existing customs simplifications and facilitations that are available for your business, such as:
  1. simplifications for transit procedures.
  2. comprehensive guarantees, with reduced amounts or waivers;
  3. simplifications for placing goods under a customs procedure;
  • CONSIDER applying for an Authorised Economic Operator (AEO) status from your national customs authority.
  • If you are registered for the VAT Mini-One-Stop-Shop in the UK, REGISTER in an EU27 Member State.
  • If you have paid VAT in the UK in 2018, SUBMIT your VAT refund claims sufficiently in advance of 29 March 2019 for them to be processed before that date.
  • TALK to your business partners (suppliers, intermediaries, carriers,…) as Brexit might also impact your supply chain.
  • CHECK our page with e-learning modules on Customs and Tax to see whether you or your staff needs extra training.

For more detailed technical information, you can consult the European Commission’s webpage which contains “preparedness notices” on a wide range of topics, including Customs and Taxes. To get additional information and assistance, contact your national authorities, your local Chamber of Commerce and Industry, or your industry association.

Source: EU

LNG tender Cyprus

Deadline extended again for LNG tenders

THE Natural Gas Public Company (Defa) has – again – extended the deadline for the submission of bids for infrastructures relating to the import of liquefied natural gas for electricity production.

Defa, by law the sole importer of natural gas, decided to push back the tenders submission date by a little over two months – from January 19 to March 29.

During a meeting held at the presidential palace this week, Defa officials explained that the interested companies had requested certain clarifications on the tender documents.

The project has been broken up into two separate tenders: one for the infrastructures (receiving facilities, a floating re-gasification unit, storage) and one for the purchase of natural gas.

The first tender concerning the facilities is already running. Under the best-case scenario, a contract is expected to be awarded sometime this summer.

According to reports, a change has been made to the tender. Initially, delivery of the infrastructures had been set at a fixed date, November 2020. Now, the terms stipulate that the delivery should be no later than two years after the date on which the contract is awarded. That would push back delivery to the summer of 2021.

The second tender – purchase of the fuel from the spot market – is expected to be launched in February.

Speaking on condition of anonymity, industry sources said it was odd that the infrastructures tender precedes, time-wise, the process for acquiring the natural gas itself.

At the very least, they said, the two tenders should be running concurrently.

That is because the final cost of generating electricity from natural gas will include both the cost of the infrastructures as well as the fuel costs. The stated goal of importing LNG is to bring down the cost of electricity.

The cost of the infrastructures alone is estimated at €300m, while another €200m will be spent on operation and maintenance over a 20-year period. Among the €300m are included the €101m in European Union co-funding.

drone delivery anchorage

World’s first commercial drone deliveries to vessels at anchorage tested

In cooperation with Airbus, Norwegian shipping company Wilhelmsen (WSS) launched this week a shore-to-ship Singapore pilot project, marking the first deployment of drone technology in real-time port conditions, delivering a variety of items to working vessels at anchorage. Shore-to-ship delivery of this range and scope has never been explored, prior to this trial, Wilhelmsen said.

Lifting off from Marina South Pier in Singapore with 3D printed consumables from Wilhelmsen’s onshore 3D printing micro-factory, the Airbus Skyways drone navigated autonomously along pre-determined ‘aerial-corridors’ in its 1.5km flight to Eastern Working Anchorage.

The drone landed on the deck of the Swire Pacific Offshore (SPO)’s Anchor Handling Tug Supply (AHTS) vessel, M/V Pacific Centurion and deposited its 1.5kg cargo without a hitch before returning to its base. The entire delivery, from take-off towards the vessel, to landing back at base, took just ten minutes.

Operations began with a Toolbox Talk with the Wilhelmsen, Airbus and SPO crew to ensure that the risk assessment was understood by all parties. With final safety checks completed, Wilhelmsen’s Marina South Pier team loaded the drone.

Supported by spotters stationed on board the vessel deck to ensure the safety of the crew and vessel, the drone took off towards the vessel, landing on the dedicated area on the main deck where the parcel was retrieved by the officer on board.

Less labour dependent than delivery via launch, autonomous Unmanned Aerial Vehicles (UAVs) can potentially reduce delivery costs by up to 90% in some ports and have a smaller carbon footprint than launch boats. SPO has been an important partner during the detailed final preparation and operational testing of the drone, with the provision of its Anchor Handling Tug Supply.

We’re confident that this pioneering move of Wilhelmsen will create new opportunities for future collaborations with SPO, improve work efficiency and drive cost savings for players in the offshore industry,

...says Duncan Telfer, Commercial Director, SPO.

Signing a unique MoU with aeronautics company Airbus in June 2018, Wilhelmsen was tasked with setting up the necessary maritime and port operations, gaining relevant approvals from port authorities, with Airbus the overall Skyways system architect and provider, contributing its expertise in aeronautical vertical lift solutions to develop the UAS for shore-to-ship deliveries.

The ongoing pilot trial will for now, focus on offshore supply vessels at anchorage 1.5km from the pier. For safety reasons, flights will be limited to this distance for the time being, before the flight range is gradually extended to as far as 3km from the shore.

MPA Singapore is facilitating the trial, which started in late November 2018, through the interim use of Marina South Pier as the launching and landing point for Airbus’ delivery drone. At the same time, MPA has designated anchorages for vessels to anchor off Marina South for the trial.

The Civil Aviation Authority of Singapore is also working with Wilhelmsen and Airbus to ensure safety of the trials.

Source: Safety4Sea

Lakkotrypis Minister Exxon

MPs welcome news of gas find

Lawmakers on Tuesday sounded optimistic about ExxonMobil’s recent discovery of natural gas offshore Cyprus, some opining that the find could put the island back on the energy map.

MPs were given a behind-closed-doors briefing by Energy Minister Giorgos Lakkotrypis and head of ExxonMobil Cyprus Varnavas Theodosiou.

Speaking to reporters later, MP and chair of the House energy committee Andreas Kyprianou said the briefing confirmed “the very important results, especially optimistic for the Republic of Cyprus both in terms of energy and geopolitics.”

Last week Exxon announced a gas find of 5-8 trillion cubic feet (tcf) in an offshore field inside Block 10 of the island’s exclusive economic zone (EEZ). The discovery re-ignited talk of construction of a liquefied natural gas facility on the island, although more quantities of gas would be needed.

According to the information given to MPs, the US oil and gas giant is considering further drilling in the EEZ, within Block 10 and possibly in other licensed acreages.

“The signs are encouraging,” said Diko MP Angelos Votsis.

“Most importantly, ExxonMobil are here to stay, and their interest in the Cypriot EEZ remains strong.”

The recent discovery boosts prospects of having an LNG plant in Cyprus, although this would take years and depended on additional gas discoveries, Votsis added.

For it to be viable, an LNG plant would require a capacity of 10 to 15 tcf. The 5 to 8 tcf discovered in Block 10 falls well short of that, but Exxon have intimated they will continue their search for gas.

For his part, Akel’s Costas Costa welcomed the discovery but said that at the same time it puts the onus on the government to develop a coherent and consistent energy policy.

The Akel deputy also asked the energy minister for an update on the talks between Cyprus and Israel regarding the commercial development of the Aphrodite gas reservoir in Block 12.

A small part of the reservoir is said to lie within Israel’s EEZ. The companies involved on either side have thus far not reached agreement on how to divvy up the resources.

According to Costa, Lakkotrypis said only that negotiations with Israel are ongoing.

The energy minister was also asked about the state of play in the talks between the government and the companies holding the concession on the Aphrodite field (Noble, Delek and Shell).

The companies are reportedly seeking to amend the production-sharing contract they signed with the government.

Lakkotrypis told MPs that discussions on this are continuing and that an outcome should be expected “soon.”

Source: Cyprus Mail