COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(91) 378 final 
Brussels. 25 October 1991 
Amendment to the proposal for a 
COUNCIL RELATION (EEC) 
1£*F "tiltt 
•fen*»' * »"*"£< on the checks and penalties applicable under the 
common agricultural and fisheries policies 
(presented by the Commission pursuant to Article 149(3) 
of the EEC Treaty) 
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EXPLANATORY MEMORANDUM 
The proposed modification to the original Commission proposal takes Into account 
most of the requests for amendments put forward by the European Parliament. 
Those amendments are clarifying even further the powers of the Commission as 
regards checks and penalties. 
In this context Article 3(1) In Its new version points out that It Is the 
particular purpose of checks to prevent irregularities and fraud. The Indicative 
list of possible control measures In Article 3(2) has been enlarged in order to 
give an even more precise idea of what kind of measures could be taken in this 
field. Paragraph 4 of Article 3 indicates which persons could be submitted to 
checks whereas the new paragraph 5 establishes a general rule on the way in which 
checks shall be conducted. 
In Article 4(1) the definition of penalties has been enlarged providing for 
sanctions also in the case that somebody refuses collaboration to controls. 
The other amendments to Article 4 serve to clarify the proposed text. 
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AMENDMENTS 
1. Article 3 Is amended as follows: 
(a) Paragraphs 1 and 2 are replaced by the following text: 
1. The nature and frequency of the checks shall be determined so as to 
ensure effective and uniform application of the legislation and in 
particular to prevent fraud and Irregularities. The checks shall be 
limited to those necessary to achieve these objectives. They shall 
as far as possible take account of the administrative practices and 
structures existing in the Member States and shall be determined so 
as not to entail excessive economic consequences or administrative 
costs. 
2. In particular checks may include: 
- checks on books and other business documents, including taking of 
cop Ies, 
- checks on data held on computer, 
-on-site requests for additional explanations, 
- the examination of systems and methods of production, packaging and 
dispatch, 
- physical checks upon the quantity and quality of stocks, 
- taking and verification of representative samples, 
- adequate cross-checks to verify the accuracy of primary data. 
Checks made by the Commission within its powers shall be carried out by 
its officials or by duly authorized experts. 
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(b) The following paragraphs are added: 
-4. Suppliers, consignees, carriers and other third parties directly or 
Indirectly concerned with transactions covered by the relevant 
legislation, whether natural or legal persons, shall also have the 
duty to permit checks to be made, and shall In particular allow 
access to buildings and land to be visited for that purpose. 
5. Checks shall be conducted In a reasonable and expeditious manner, so 
as to cause as little disturbance to all natural and legal persons 
concerned as is necessary in all the circumstances." 
2. Article 4 is amended as follows: 
(a) The first subparagraph of paragraph 1 is replaced by the following text: 
H1. For the purposes of this regulation penalties shall be understood to 
mean measures entailing unfavourable financial or economic 
consequences 
(a) for an operator who has unjustifiably received a benefit, or 
(b) for an operator who has failed to fulfil an obligation imposed by 
legislation, or 
(c) for an operator who refuses access or otherwise obstructs the 
conduct of any of the checks referred to in Article 3(3)." 
(b) The following paragraph is added after paragraph 1: 
"1a. The operators or other parties upon whom penalties may be imposed 
may be either natural or legal persons." 
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(c) Paragraph 2 is replaced by the following text: 
"2. The provisions relating to penalties shall determine the type and 
scope of the penalties on the basis of the benefit, as well as the 
nature and the seriousness of the Irregularity Insofar as Is 
necessary to ensure the correct functioning of the legislation in 
question. In particular penalties may include-. 
- the obligation to pay an amount greater than the amounts 
unjustifiably received plus interest, where appropriate, 
- total withdrawal of the benefit granted by Community legislation 
even If only part of this benefit has been unjustifiably received, 
- refusal or withdrawal of the benefit for a period exceeding that of 
the Irregularity If such irregularity shows a lack of reliability 
on the part of the beneficiary." 

ISSN 0254-1475 
COM(91) 378 final 
DOCUMENTS 
EN 03 
Catalogue number : CB-CO-91-432-EN-C 
ISBN 92-77-76239-X 
Offîce fbr Official Publications of the Euzopean Communities 
L-2985 Luxembourg