PROTOCOL 32

on financial modalities for implementation of Article 82

Article 1

Procedure for the determination of the financial

participation of the EFTA States

1. The procedure for the calculation of the financial participation of the EFTA States in Community activities shall be that set out in the following paragraphs.

2. The EC Commission shall communicate to the EEA Joint Committee together with relevant background material at the latest on 30 May of each financial year:

(a) the amounts entered 'for information`, in commitment appropriations and payment appropriations, in the statement of expenditure of the preliminary draft general budget of the European Communities, corresponding to the activities in which the EFTA States take part and calculated in accordance with the provisions of Article 82;

(b) the estimated amount of the contributions, entered for information in the statement of revenue of the preliminary draft budget, corresponding to the participation of the EFTA States in these activities.

3. The EEA Joint Committee shall, before 1 July each year, confirm that the amounts referred to in paragraph 2 are in accordance with the provisions of Article 82 of the Agreement.

4. The amounts 'for information` corresponding to the participation of the EFTA States, both in commitment appropriations and in payment appropriations, as well as the amount of the contributions, shall be adjusted when the budget is adopted by the budgetary authority, in order to respect the provisions of Article 82.

5. As soon as the general budget has been finally adopted by the budgetary authority the EC Commission shall communicate to the EEA Joint Committee the amounts which are entered therein 'for information` both in the statement of revenue and of expenditure corresponding to the participation of the EFTA States.

The EEA Joint Committee shall, within a period of 15 days following that communication, confirm that these amounts are in accordance with the provisions of Article 82.

6. By 1 January at the latest of each financial year, the Standing Committee of the EFTA States shall inform the EC Commission of the final breakdown of the contribution for each EFTA State.

This breakdown shall be of a binding character for each EFTA State.

Should this information not be provided by 1 January, the breakdown of the previous year shall apply on a provisional basis.

Article 2

Making available the contributions of the EFTA States

1. On the basis of the information transmitted by the Standing Committee of the EFTA States pursuant to the provisions of Article 1(6) above, the EC Commission shall establish:

(a) pursuant to Article 28(1) of the Financial Regulation(1) a proposal for a claim, corresponding to the amount of the participation of the EFTA States, calculated on the basis of the commitment appropriations.

The drawing up of the proposal for a claim shall give rise to the formal opening by the EC Commission of the commitment appropriations on the budgetary lines concerned within the framework of the budgetary structure created to this end.

If the budget has not been adopted by the opening of the financial year, the provisions of Article 9 of the Financial Regulation shall apply;

(b) pursuant to Article 28(2) of the Financial Regulation, a call for funds corresponding to the amount of the contributions of the EFTA States, calculated on the basis of the payment appropriations.

2. This order shall provide for the payment, by each EFTA State, of its contribution in two stages:

- six-twelfths of its contribution not later than 20 January,

- six-twelfths of its contribution not later than 15 July.

However, the six-twelfths to be paid at the latest on 20 January are calculated on the basis of the amount, 'for information` set out in the statement of revenue of the preliminary draft budget: the regularization of the amounts thus paid shall occur with the payment of the twelfths falling due on 15 July.

If the budget is not adopted before 30 March, the second payment shall also take place on the basis of the amount foreseen 'for information` in the preliminary draft budget. The regularization shall take place three months after the completion of the procedures provided for in Article 1(5).

The collections corresponding to the payment by the EFTA States of their contributions shall give rise to the formal opening of payment appropriations on the budgetary lines concerned within the framework of the budgetary structure created to this end without prejudice to the application of the provisions of Article 9 of the Financial Regulation.

3. Contributions shall be expressed and paid in ECUs.

4. To this end, each EFTA State shall open with its Treasury or the body it shall designate for this purpose an account in ECUs on behalf of the EC Commission.

5. Any delay in the entries in the account referred to in paragraph 4 in relation to the deadlines set out in paragraph 2 shall give rise to the payment, by the EFTA State concerned, of interest at a rate equal to the rate applied by the European Monetary Cooperation Fund to its operations in ECUs, plus 1.5 of a percentage point, for the month of the expiration date and published each month in the Official Journal of the European Communities, series C.

Article 3

Adjustments in the light of implementation

1. The amounts of the participation of the EFTA States, determined for each budgetary line concerned, in accordance with the provisions of Article 82 of the Agreement shall normally remain unchanged during the financial year in question.

2. The EC Commission, at the time of the closure of the accounts relating to each financial year (n), within the framework of the establishment of the revenue and expenditure account, shall proceed to the regularization of the accounts with respect to the participation of the EFTA States, taking into consideration:

- modifications which have taken place, either by transfer or by supplementary budget during the financial year;

- the final implementation of the appropriations for the financial year, taking into account possible cancellations and carry-overs;

- any sums covering Community-related expenditure which the EFTA States cover individually or payments made by EFTA States in kind, e.g. administrative support.

This regularization shall occur in the framework of the establishment of the budget for the following year (n + 2).

3. However, in exceptional circumstances duly justified, and in so far as the proportionality factor has to be safeguarded, the EC Commission may request, from the EFTA States, after approval by the EEA Joint Committee, an additional contribution during the same financial year as that during which the variation has occurred. Such additional contributions shall be registered on the accounts referred to in Article 2(4) on a date to be fixed by the EEA Joint Committee and which shall as far as possible coincide with the regularization foreseen in Article 2(2). In the event of delay in these registrations, the provisions of Article 2(5) shall apply.

4. Complementary rules for the implementation of paragraphs 1 to 3 shall be adopted as necessary by the EEA Joint Committee.

This shall apply in particular as regards the manner in which account shall be taken of any sums covering Community-related expenditure which the EFTA States cover individually or payments made by EFTA States in kind.

Article 4

Review

The provisions of:

- Article 2(1),

- Article 2(2),

- Article 3(2) and

- Article 3(3),

shall be reviewed before 1 January 1994 by the EEA Joint Committee and amended as appropriate in the light of experience of their implementation and in the light of Community decisions affecting the Financial Regulation and/or the presentation of the general budget.

Article 5

Conditions for implementation

1. The utilization of the appropriations arising from the participation of the EFTA States shall take place in accordance with the provisions of the Financial Regulation.

2. However, with regard to the rules relating to tendering procedures, calls for tender shall be open to all EC Member States as well as to all EFTA States in so far as they involve financing on budgetary lines in respect of which the EFTA States are participating.

Article 6

Information

1. The EC Commission shall provide the Standing Committee of the EFTA States, at the end of each quarter, with an extract from its accounts showing, with regard both to receipts and expenditure, the situation as regards the implementation of the programmes and other actions in which the EFTA States participate financially.

2. After the closure of the financial year, the EC Commission shall communicate to the Standing Committee of the EFTA States the data concerning the programmes and other actions in which the EFTA States participate financially, which appear in the revenue and expenditure account and the balance sheet drawn up in accordance with the provisions of Articles 78 and 81 of the Financial Regulation.

3. The Community shall provide the Standing Committee of the EFTA States with such other financial information as the latter may reasonably request as regards the programmes and other actions in which they participate financially.

Article 7

Control

1. The control of the determination and of the availability of all income as well as the control of the commitment and of the scheduling of all expenditure corresponding to the participation of the EFTA States, shall take place in accordance with the provisions of the Treaty establishing the European Economic Community, of the Financial Regulation and of the applicable regulations in the fields referred to in Articles 76 and 78 of the Agreement.

2. Appropriate arrangements shall be established between the auditing authorities in the Community and in the EFTA States with a view to facilitating the control of income and expenditure corresponding to the participation of EFTA States in Community activities in accordance with paragraph 1.

Article 8

GDP figure to be taken into consideration to calculate the proportionality factor

1. The GDP data at market prices referred to in Article 82 of the Agreement shall be those published as a result of the implementation of Article 76 of the Agreement.

2. Exceptionally, for the financial years 1993 and 1994, the data concerning GDP shall be those established by the OECD. If necessary, the EEA Joint Committee may decide to extend this provision for one or more subsequent years.

(1) Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities (OJ No L 355, 31.12.1977, p. 1), as modified by Council Regulation (Euratom/ECSC/EEC) No 610/90 of 13 March 1990 (OJ No L 70, 16.3.1990, p. 1), hereinafter referred to as the Financial Regulation.