Cyprus’ geographical position enabled it to become a very important trading channel between three continents: Europe, Africa and Asia. Cyprus’ economy was catalogued by the World Bank as a high-income economy and it is considered one of the world’s most advanced economies.
Cyprus’ imports rely on oil-based products the most, but also on agricultural products. A ranking of all products imported by Cyprus would put refined petroleum on the first place occupying 26% of the country’s total imports. On the following places in similar percentages we find passenger and cargo ships that represent about 6% of Cyprus’ imports and vehicles, cars parts, pharmaceuticals and copper wire that are represent about 2% each. On a smaller scale Cyprus imports crude petroleum, computers, broadcasting equipment and textiles. Cyprus’ partner countries when it comes to imports are Greece, Turkey and Israel. Cyprus imports almost 15% of its goods from Greece, and then Turkey and Israel supply about 8% of Cyprus’ total imported goods. Within the EU Cyprus imports from Italy, Germany, The United Kingdom and France close to 5% from each country, on a smaller scale countries like Spain, Russia, The Netherlands and China supplying about 3 or 4% of its imported goods.
As with imports, Cyprus’ most exported product is refined petroleum that represents about 35% of the country’s total exports. Packaged pharmaceuticals represent the second most exported products by Cyprus with 7%. Passenger and cargo ships are the third on Cyprus’ export list and represent about 3%. In smaller percentages Cyprus exports gold, broadcasting equipment and dairy products. Electrical devices are also added to Cyprus’ export list. As with imports, Greece is one of Cyprus’ main trading partners, as 15% of the country’s products are exported in Greece, but the first place on Cyprus’ exports is occupied by South Korea which imports about 20% of its goods from Cyprus. Other countries that import from Cyprus are The United Kingdom that imports about 6% of Cyprus’ products, Poland, Belgium and Germany that represent about 3% on Cyprus’ export list.
Cyprus follows the same protocol as other EU member states when it comes to customs procedures for imports. Cypriot customs procedures are relatively simple only few products requiring licenses or permissions from the authorities. For products imported from non-EU member states, companies delivering those products must register with the Customs Register by applying an electronic customs declaration.Imported products are subject to the Cypriot standard VAT rate of 17%, but certain categories of foods, medicines or printed materials are subject to a reduced rate of 5%.