Customs officials seized 55 kilos of halloumi and nine kilos of Anari cheese on Thursday at the Ayios Dometios checkpoint.
The dairy products were found when a Turkish Cypriot attempted to enter the Republic from the north in his car.
The driver was arrested and the vehicle confiscated.
The director of the customs department later accepted an out of court settlement of €500 and returned the vehicle after the man paid an additional €300.
He was released and the cheese was destroyed in accordance with relevant procedures.