No C 126/6 Official Journal of the European Communities 22. 5. 90 
II 
(Preparatory Acts) 
COMMISSION 
Proposal for a Council Regulation (EEC) on reinforcing the monitoring of certain expenditure 
chargeable to the Guarantee Section of the European Agricultural Guidance and Guarantee 
Fund 
COM(90) 151 final 
(Submitted by the Commission on 3 May 1990) 
(90/C 126/08) 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Article 43 
thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European 
Parliament, 
Whereas, under Article 8 of Council Regulation (EEC) 
No 729/70 of 21 April 1970 on the financing of the 
common agricultural policy ('), as last amended by 
Regulation (EEC) No 2048/88 (2), Member States are to 
take the measures necessary to satisfy themselves that the 
transactions financed by the European Agricultural 
Guidance and Guarantee Fund (EAGGF) are actually 
carried out and are executed correctly, to prevent and 
deal with irregularities and to recover sums lost as a 
result of irregularities or negligence; 
Whereas, in spite of the measures taken by the Member 
States, unjustified expenditure for the Community is 
incurred in the form of refunds on exports to third 
countries and intervention measures intended to stabilize 
certain markets; 
Whereas, therefore, the monitoring and detection of 
fraud and irregularities in connection with exports of 
agricultural products, products exported as goods not 
falling under Annex II to the Treaty and measures 
applicable to certain sectors or certain products must be 
reinforced; Whereas the Member States must be encouraged to take 
measures to step up controls in these areas; 
Whereas the resulting financial effort may, for some 
Member States, entail excessive additional budget expen­
diture, and provision should be made for a Community 
financial contribution over a certain period; 
Whereas account must be taken of the diversity of the 
administrative structures existing in the Member States, 
and the latter should therefore be authorized to take 
reinforcement measures in accordance with differing 
procedures, 
HAS ADOPTED THIS REGULATION: 
Article 1 
1. Where a Member State, in accordance with 
paragraph 2, reinforces the monitoring and detection of 
fraud and irregularities in connection with exports of 
agricultural products and products exported as goods not 
falling under Annex II to the Treaty, the Community 
shall, during a period of five years beginning on the first 
day of the month following the entry into force of this 
Regulation, bear: 
— 20 % of the remuneration of the agents referred to in 
paragraph 2 below occupying supplementary posts 
created after 31 December 1989, which is to be fixed 
on a flat-rate basis throughout the Community, 
— 33 % of the cost of training and briefing those 
agents, 
— 33 % of the cost of equipping those agents, 
O OJ No L 94, 28. 4. 1970, p. 13. 
(2) OJ No L 185, 15. 7. 1988, p. 1. — 33 % of the costs arising from the monitoring work 
entrusted to the approved surveillance firms and 
laboratories referred to in paragraph 2, 
22. 5. 90 Official Journal of the European Communities No C 126/7 
up to a total amount of ECU 10 million per year. 
This amount shall, each year, be allocated by the 
Commission among the Member States in proportion to 
their expenditure on export refunds for agricultural 
products and for agricultural products exported as goods 
not falling under Annex II to the Treaty, as recognized 
when the most recent decision relating to the clearance 
of accounts provided for in Article 5 of Regulation 
(EEC) No 729/70 was taken. 
2. The reinforcement measures referred to in 
paragraph 1 may consist in entrusting agents with the 
specific task of: 
— checking the quantity and quality of the products 
intended for export, with a view to the granting of 
refunds, 
— detecting and dealing with fraud and irregularities in 
connection with the products referred to in 
paragraph 1; 
l 
entrusting approved firms specializing in surveillance 
work, or approved laboratories, with the task of: 
— checking the quantity and quality of the products 
intended for export, with a view to the granting of 
refunds, 
— verifying whether the products in question have been 
imported into the third country of destination. 
3. The approved surveillance firms and laboratories 
referred to in the preceding paragraph must provide all 
guarantees as to their independence. In particular, they 
may not, in supervised transactions or in similar export 
transactions, act in the capacity of exporter, customs 
agent, carrier, agent in the Community or in a third 
country, consignee, storer or in any other capacity that 
could give rise to a conflict of interests. 
Article 2 
1. Where a Member State has of one or more services 
or agencies or sets up the same, entrusted exclusively 
with the monitoring of one or more of the measures 
referred to in paragraph 2 and with the detection and 
prosecution of fraud and irregularities connected with 
those measures, the Community shall, during a period of 
five years, beginning on the first day of the month 
following the entry into force of this Regulation, bear: — 20 % of the remuneration of the agents employed by 
that service or agency and occupying supplementary 
posts created after 31 December 1989, which is to be 
fixed on a flat-rate basis throughout the Community, 
— 33 % of the training and briefing costs, 
— 33 % of the equipment costs, 
up to a total amount of ECU 10 million per year. 
This amount shall, each year, be allocated by the 
Commission among the Member States which apply 
therefore, in proportion to their expenditure on the 
measures referred to in paragraph 2, as recognized when 
the most recent decision relating to the clearance of 
accounts provided for in Article 5 of Regulation (EEC) 
No 729/70 was taken. 
2. The monitoring referred to in paragraph 1 may 
relate to: 
(a) aid per hectare; 
(b) aid for the set-aside of arable land; 
(c) measures provided for in the wine sector; 
(d) measures provided for in the fruit and vegetables 
sector; 
(e) storage aid for dried grapes; 
(f) premiums provided for in the beef and veal and 
sheepmeat and goatmeat sectors; 
(g) premiums for tobacco; 
(h) aid for oilseeds. 
3. The agencies referred to in paragraph 1 shall have 
full administrative and financial latitude. They shall 
recruit their staff, organize their activities, carry out their 
tasks and effect the relevant expenditure in full inde­
pendence from the existing administrative structures. 
Their status shall ensure their independence vis-d-vis the 
recipients, including indirect recipients, under the 
measure monitored or their representatives and vis-d-vis 
those working in the trade concerned. 
They shall be vested by the Member State with all 
powers necessary to carry out the tasks entrusted to 
them in accordance with paragraph 1. 
No C 126/8 Official Journal of the European Communities 22. 5. 90 
Article 3 
The Community financial contribution under this Regu­
lation may not be combined with that provided for, in 
respect of the products referred to in Articles 1 and 2, by 
other Regulations, and in particular: 
— Council Regulation (EEC) No 283/72 of 7 February 
1972 concerning irregularities and the recovery of 
sums wrongly paid in connection with the financing 
of the common agricultural policy (*), 
— Council Regulation (EEC) No 765/85 of 12 March 
1985 on increasing the staff of the departments 
responsible for quality control of agricultural 
products in Greece (2), 
— Council Regulation (EEC) No 2048/89 of 19 June 
1989 laying down general rules on controls in the 
wine sectors (J), 
— Council Regulation (EEC) No 4045/89 of 21 
December 1989 relating to control by Member States 
of operations being part of the system of financing by 
the EAGGF-Guarantee sector and repealing Council 
Directive No 77/435 (EEC) (4). 
Article 4 
For the purposes of this Regulation, 'remuneration' 
means the salaries, less the taxes and fiscal charges, of 
the agents concerned, and the travel costs that are 
necessary for the carrying out of their duties. The 
amount of the remuneration shall be determined on a 
flat-rate and uniform basis throughout the Community 
by reference to the salaries applied by Member States for 
similar functions. 
Article 5 
The training costs referred to in Article 1 (1) and in 
Article 2 (1) may include the costs of running training 
courses of at least three days' duration and the costs of 
disclosing specialized information. 
0) OJ No L 36, 10. 2. 1972, p. 1. 
O OJ No L 86, 27. 3. 1985, p. 5. 
(») OJ No L 202, 14. 7. 1989, p. 32. 
O OJ No L 388, 30. 12. 1989, p. 18. Article 6 
The equipment costs shall include in particular the 
purchase or hire of data-processing, office and transport 
equipment, with the exclusion, however, of basic office 
equipment. 
Article 7 
The annual amount representing the expenditure borne 
by the Community shall be fixed by the Commission on 
the basis of information supplied by the Member States. 
At the request of the Member States, the Commission 
may make advance payments to be deducted from the 
definitive amount of its contribution. 
Article 8 
Detailed rules for the application of this Regulation, and 
in particular the flat-rate amounts referred to in Articles 
1 (1) and 2 (1), the rules on approved firms and labora­
tories as referred to in Article 1 (2) and those applicable 
to the agencies referred to in Article 2, shall be adopted 
in accordance with the procedure laid down in Article 13 
of Regulation (EEC) No 729/70. 
Article 9 
The amounts expressed in ecus shall be converted into 
national currencies by applying the exchange rates in 
force on the first working day of the relevant year, as 
published in the 'C series of the Official Journal of the 
European Communities. 
Article 10 
Each year before 30 September, the Commission shall 
assess, on the basis of a report forwarded by the Member 
States concerned before 30 June of the year following 
the year of the expenditure, the results obtained by the 
measures cofinanced by the Community. 
Article 11 
This Regulation shall enter into force on the day of its 
publication in the Official Journal of the European 
Communities. 
This Regulation shall be binding in its entirety and 
directly applicable in all Member States.