Customs V plate regulations clear 18 months ago

Sir,
The V plate rage arises because V plates were used for three very different sets of circumstances. The first is that pertaining to the temporary importation of a motor vehicle for up to 12 months, by which time the car had to be either exported or registered in Cyprus. Customs form C104 is used when imported, and the procedure has nothing to do with duty-free status. It does, however, give the necessary time to obtain duty-free status (if applicable) documentation after which VAT is paid and the car then registered. This procedure has not changed.

The second was where a permanent resident, or intending permanent resident undergoing immigration formalities (residence permit application), purchased a car duty-free pending completion of the duty-free status paperwork. This procedure has not changed either.
The third was where a car was imported, or purchased in Cyprus, free of duty for those who visit Cyprus from time to time, but are not entitled themselves to duty-free status and to register a duty-free car. When the owner was not on the island the car had to be placed in bond. V plates were used. It might have been better if a different series of plates had been used (as in the UK) such as Q plates. This facility, better called ‘duty exempt cars’ was discontinued on May 1 in line with EU directives, by which date said cars either had to be exported, or duty paid. That duty is a high amount of money in many cases but member states are free to set duty levels as they wish, in order to raise revenues and to influence more environmentally friendly engines.

In general there is no reason why these owners should now complain, since as far back as late November 2003 customs officials in Nicosia, when asked, clearly stated the facility would be withdrawn. What they were not able to say, as no decision had been made, was what (if anything) might replace it. I myself witnessed on several occasions such advice being given out but apparently not heeded.

If any such owners are in fact eligible to apply for duty-free status (as permanent residents e.g. retired aliens not in employment) they have no problem.

Others will have to just bite the bullet! The advice from customs WAS available. However there are cases where the owner was away from Cyprus and I would have thought that those back here on a visit should be given a short ‘grace’ period in which to decide whether to export the vehicle or whether to pay the duty and register it on normal Cyprus plates.

Just why duty-free status is continuing for permanent residents who meet the criteria is a mystery, but it does not breach any EU law. As a permanent resident myself, with duty-free status, I thank the authorities for that although I have to say it was only one of many good reasons why we chose to retire here rather than to Spain etc.

Finally, I must conclude by saying that from my own experiences of dealing with customs officials, and vehicle inspection staff at Larnaca, I have always been treated politely and with every courtesy. Some of the procedures and paperwork might be onerous, but they work, and I can assure readers there are many other countries with far more daunting procedures to contend with,
Geoffrey Smith
Vrysoulles