COMMISSION OF THE EUROPEAN COMMUNITIES 
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Proposal for a 
COUNCIL REGULATION (EEC) 
eatabliahinf an integrated adainiatratioa and control aytt 
for certain CLI—unity aid achaawa 
(presented by the Commission) 
z 
EXPLANATORY MEMORANDUM 
As part of the reform of the common agricultural policy, it is proposed 
to Introduce a system of compensatory aid linked directly or indirectly 
to the cultivated area or the number of animals kept by each farmer. 
Experience with the administration and monitoring of aid of this type has 
shown that, unless a totally new approach is adopted, which takes account 
in particular the new techniques which exist in the market, that such aid 
engenders would be extremely burdensome for the Member States. In this 
context, account must also be taken of the cost of administrative 
verification and on-the-spot checks, In view of the large number of 
beneficiaries, the uses to which the cultivated areas can be put and the 
variety and number of animals; for the reasons given above, the danger of 
fraud is also great. 
Article 8 of Council Regulation (EEC) NO 729/70 of 21 April 1970 on the 
financing of the common agricultural policy, stipuites that Member States 
are to take the measures necessary to satisfy themselves that 
transactions financed by the European Agricultural Guidance and Guarantee 
Fund are actually carried out and are executed correctly and to prevent 
and deal with irregularities (Article 23 of Council Regulation (EEC) No 
4253.88 stipulates the same as regards the EAGGF Guidance Section.) 
However, the Commission considers it necessary, particularly in the 
context of the reform of the common agricultural policy, to propose a 
common framework for the establishment of an Integrated administration 
and control system In all the Member States before 1 January 1993. 
This system, which covers all the compensatory aid provided for In the 
proposal for the reform of the common agricultural policy, Includes in 
particular the creation of a computerized data base listing holdings, 
with the eligible parcels and animals on each. This requires a numerical 
Identification system for parcels and animals. Provision is made for 
annual statements for the purpose of checking the producers, parcels and 
animals concerned. These statements are supplemented by more specific aid 
applications required for the grant of the aid. All these elements should 
make it possible to develop a harmonized system of control of all the 
measures included in the system. 
The Implementation of an integrated administration and control system for 
the aid may represent a high additional budgetary burden for the Member 
States. Consequently, provision should be made for community 
part-financing. The percentages given in the draft Regulation are 
calculated on the basis of an overall amount of ECU 100 million taken 
Into account the number of farms (50%), livestock numbers (25%) and the 
agricultural area (25%)* 
Although the 
Commission considers that the Community contribution should be at least 
of the order of ECU 100 million, compliance with budgetary discipline 
means that this cannot be mentioned in the proposed Regulation. 
3 
Proposal for a 
Council Regulation (EEC) N° /91 
of 
establishing an integrated administration and control sytem 
for certain Community aid schemes 
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 (1), 
Having regard to the opinion of the European Parliament (2), 
Whereas, pursuant to Article 8 of Council Regulation (EEC) No 729/70 of 
21 April 1970 on the financing of the common agricultural policy (3), as 
last amended by Regulation (EEC) No 2048/88 (4), Member States must take 
the measures necessary to satisfy themselves that transactions financed 
by the European Agricultural Guidance and Guarantee Fund (EAGGF) are 
actually carried out and are executed correctly, and prevent and deal 
with irregularities; whereas Article 23 of Council Regulation (EEC) 
No 4253/88 of 19th December 1988 laying down provisions for implementing 
Regulation (EEC) No 2052/88 as regards coordination of the activities of 
the different structural Funds between themselves and with the operations 
of the European Investment Bank and the other existing financial 
instruments (5) provides for the same obligation with regard to the 
agricultural structures policy; 
Whereas up to now the various aid schemes have been administered and 
controlled by the Member States under separate rules for each scheme, as 
a result of their heterogeneous structure; whereas, however, in 
realigning the existing market measures a part of the reform of the 
common agricultural policy, the Community is opting, to a large extent, 
in both the crop and livestock sectors, for direct aid to producers; 
Whereas, in order to adapt the administration and control mechanisms to 
the new situation and improve their effectiveness and usefulness, it is 
necessary to set up a new integrated administration and control system 
covering the aid schemes for arable crops, beef and veal, sheepmeat, 
goatmeat and milk and milk products, as well as specific measurees for 
farming in mountain, hill and certain less-favoured areas; whereas 
provision should be made for the possibility of including, at a later 
date, other aid schemes linked to cultivated area; 
1 OJ No L 
2 OJ No L 
3 OJ No L 94, 28.4.1970, p. 13. 
4 OJ No L 185, 15.7.1988, p. 1. 
5 OJ No L 374, 31.12.1988, p. 1 
Whereas, the various components of the integrated system will potentially 
result in more effective administration and control in the case of 
Community schemes not covered by this Regulation; whereas the Member 
States should therefore be authorized to avail themselves of the system 
on condition they do not in any way act in opposition to the provision 
concerned; 
Whereas, given the complexity of such a system and the large number of 
aid applications to be processed, it is essential to use the appropriate 
technical resources and administration and control methods; whereas as a 
result, the integrated system should comprise, in each Member State, a 
computerized data base, a numerical identification system for 
agricultural parcels, annual statements by farmers, a harmonized control 
system and, in the livestock sector, a system for the identification and 
recording of animals; 
Whereas the administration of the data collected and their use for the 
verification of aid applications make it necessary to set up high-
performance computerized data bases allowing cross-checks in particular 
to be made; 
Whereas the identification of agricultural parcels is a key element in 
the correct application of schemes linked to surface area; whereas 
experience has shown that the existing methods have certain deficiencies; 
whereas, therefore, provision should be made for a numerical 
identification system set up initially, where necessary, with the aid of 
remote sensing; 
Whereas, in order to establish a general control programme for the entire 
calendar year, 'it is essential for information relating to the location 
and foreseeable utilization of agricultural areas to be made available to 
the competent authorities as early in the year as possible; whereas, in 
view of the dates for the lodging of aid applications, this objective 
would not be achieved by using the applications alone; whereas, against 
this background, provision should be made for the introduction of an 
annual statement made by farmers providing the information necessary for 
this purpose; whereas provision should be made for the receipt of aid to 
be made conditional upon submission of an annual statement; 
Whereas, in the livestock sector, effective control requires that animals 
be identified and recorded; whereas, to this end, Council Regulation 
(EEC) NO ..../91 on the identification and recording of animals lays down 
specific provisions in this respect; whereas recourse should therefore be 
had to that Regulation; 
vT 
Whereas the rules governing aid applications continue to be subject to 
the provisions of each sector; whereas, however, for the sake of 
simplification, Member States should be authorized to make provision for 
the submission of one single application for several aid schemes; 
Whereas one of the main advantages of the new system is the introduction 
of a harmonized control system in each Member State avoiding any 
duplication of sectoral checks of the same type; whereas, as a result, 
the total number of checks can be reduced considerably; whereas aid 
applications submitted must be subjected to a thorough administrative 
check carried out with the aid of computerized data bases; whereas, up to 
now, administrative checks have been supplemented systematically by 
checks on the spot; whereas, to a large extent, on-the-spot checks on 
areas may be replaced by remote sensing; 
Whereas the expenditure involved in introducing the integrated system may 
represent a high additional budgetary burden for Member States; whereas, 
consequently, provision should be made for part-financing for a certain 
period; whereas the diversity of existing production structures in the 
Member States must be taken into account; whereas, as a result, provision 
should be made for sharing out the financial contribution in a way which 
takes into account in particular the number of agricultural holdings, 
livestock numbers and the agricultural area in the Member States, 
HAS ADOPTED THIS REGULATION : 
Article 1 
Each Member State shall set up before 1 January 1993 an 
integrated administration and control system applying to : 
(a) in the crop sector : 
the aid scheme for certain large-scale crop 
producers established by Regulation (EEC) 
NO.../91 and 
(b) in the livestock sector : 
the special premium for beef producers and the 
premium for maintaining suckler cows introduced 
by Regulation (EEC) NO 805/68, 
the dairy-cow premium introduced by regulation 
(EEC) NO /91 
the premium for sheepmeat producers introduced 
by Regulation (EEC) NO 3013/91, 
the specific measures for farming in mountain, 
hill and certain less-favoured areas introduced 
by Regulation (EEC) NO 2328/91 concerning 
compensatory allowances for cattle, sheep, goats 
and equidae, hereinafter called "Community 
schemes". 
c 
2. The Commission may, in accordance with the procedure laid down in 
Article 13 of Regulation (EEC) NO 729/70, provide that the integrated 
system shall apply to other aid schemes. 
3. For the purposes of applying Community aid schemes not covered by this 
Regulation and not with standing the specific provisions specified under 
such schemes, notably with regard to the terms under which aid may the 
granted, the Member States may incorporate in their administration and 
control mechanisms one or more of the administrative, technical or data-
processing components of the integrated system. 
Before availing themselves of this possibility, the Member States shall 
inform the Commission in good time of their intention. 
The Commission shall ensure that such action by the Member States does 
not prejudice compliance with the provisions of the sectoral Regulations 
or of this Regulation. 
Article 2 
The integrated system shall comprise the following elements : 
(a) a computerized data base; 
(b) a numerical identification system for agricultural 
parcels; 
(c) a numerical system for the identification and recording 
of animals; 
(d) an annual statement; 
(e) the aid applications; 
(f) a harmonized control system. 
Article 3 
The computerized data base shall record, within a time limit to 
be fixed and for each agricultural holding, the information 
given in the annual statement and the data obtained from aid 
applications submitted under a Community scheme. This data base 
must in particular make it possible for the bodies responsible 
for checking to have real-time access to the data relating to at 
least three consecutive calendar years and three consecutive 
marketing years. 
The Commission may authorize Member States to set up 
decentralized data bases on condition that these, and the 
administrative procedures for the recording of and access to 
data, are designed homogeneously throughout the territory of the 
Member state and that they are compatible with one another. 
Article 4 
The numerical identification system for agricultural parcels shall be 
established on the basis of land register maps or other cartographic 
reference or aerial photographs or satellite pictures. 
\ 
Article 5 
The system for the identification and recording of animals shall 
include : 
- identification by means of marking of animals eligible for aid 
governed by this Regulation and 
the keeping of a permanent record by each farmer, in which the 
identification of each animal is entered and, where applicable, 
all other necessary information. 
Subject to specific provisions, this system shall be established in 
accordance with Regulation (EEC) N° ..../91. 
Article 6 
1. In order to be eligible under a Community scheme governed by 
this Regulation, each farmer shall submit, for each calendar 
year and by a date to be fixed, an annual statement indicating : 
the utilized agricultural areas, including areas under 
forage crops, broken down by agricultural parcel and the 
use to which he plans to put them during the year; 
- the agricultural parcels covered by a set-aside measure 
for arable land and those laid fallow; 
the number and species of animal for which he intends to 
apply for aid under a Community scheme, and 
- where applicable, any other necessary information. 
2. For each of the agricultural parcels declared, farmers shall 
indicate the area in hectares and in acres and its location by 
reference to the identification number allocated to it in the 
numerical system for identification of agricultural parcels. 
3. Agricultural parcels not indicated in the annual statement shall 
not be considered for the grant of a financial benefit under a 
Community scheme. Statements may be corrected before a date to 
be fixed. 
4. Farmers applying only for aid under a scheme not directly linked 
to agricultural area may be exempted from the requirement to 
submit an annual statement. 
Article 7 
In order to be eligible under a Community scheme, each farmer shall 
present an aid application to the competent authority by a date or during 
certain periods to be laid down. 
-? 
Where aid applications must be accompanied by additional documents, the 
latter shall be considered to be part of the application. 
Member States may adopt provisions allowing a single application to cover 
several Community schemes. 
Article 8 
The harmonized system shall cover all aid applications submitted, in 
particular as regards administrative checks, on-the-spot checks and 
verification by aerial or satellite remote sensing. 
Article 9 
1. Member states shall carry out administrative checks to verify 
the accuracy and truthfulness of aid applications. 
2. Administrative checks shall be complemented by on-the-spot 
checks covering a sample of agricultural holdings. For all 
these checks, Member States shall draw up a sampling plan on the 
basis of the annual statements. 
3. Each Member State shall designate an authority responsible for 
coordinating and monitoring the checks for each of the sectors 
concerned. 
4. National authorities may, under conditions to be laid down, use 
remote sensing to determine the area of agricultural parcels, 
identify crops and verify their status. They may delegate part 
of this work to specialized agencies and/or firms on condition 
that they retain control over and responsibility for the work 
carried out. 
Article 10 
Member States shall take the necessary measures to ensure the protection 
of the data collected. 
Article 11 
The Community shall contribute to the expenditure incurred by 
Member States pursuant to this Regulation for the introduction 
of the computerized and checking structures and for the 
acquisition of aerial photographs or satellite pictures and 
analysis thereof. Expenditure on the updating of land register 
maps and geographical maps shall not be part-financed by the 
Community. 
3 
2. The financial contribution shall be granted for a period of \ 
three years from 1 January 1992 within the limits of the 
appropriations allocated for this purpose. 
The total amount shall be shared between the Member States as 
follows : 
Belgium 2.3 % 
Denmark 2.4 % 
Germany 10.1 % 
Greece 8.7 % 
Spain 18.1 % 
France 14.6 % 
Ireland 4.5 % 
Italy 20.1 % 
Luxembourg 0.6 % 
Netherlands 3.0 % 
Portugal 5.7 % 
United Kingdom 9.9 % 
The Community's financial contribution shall not be greater than 50 % of 
the payments made by the Member States concerned in respect of the budget 
year and relating to the eligible expenditure within the meaning of 
paragraph 1. 
Article 12 
Commission shall be informed at regular intervals of the 
progress of work on the implementation of the integrated system. 
Commission agents may carry out checks, in particular at the 
specialized agencies and firms referred to in Article 9(4), on 
all the measures taken to implement this Regulation and on the 
eligibility of the expenditure declared for Community part-
financing. 
Where necessary, the Commission shall take the measures needed 
to ensure that the integrated system is implemented in 
accordance with this regulation. 
Notwithstanding the responsibilities of the Member States for 
the proper implementation and application of the integrated 
system, the Commission may, in order to facilitate the 
establishment, monitoring and utilization of checks by remote 
sensing, in particular with a view to providing the competent 
authorities of the Member States with technical advice, seek the 
assistance of specialized bodies or persons. 
1 o 
Article 13 
1. The Commission shall adopt detailed rules for the application of 
this Regulation in accordance with the procedure laid down in 
Article 13 of Regulation (EEC) N° 729/70. These detailed rules 
shall cover in particular : 
(a) the necessary adjustments in the event that the scope of 
the integrated system is extended; 
(b) the creation of computerized data bases, their updating, 
computerized checks and access to recorded data; 
(c) the creation of the numerical identification system for 
agricultural parcels; 
(d) the dates laid down for the lodging of the annual 
statement, for any amendments thereto and exemption from 
the requirement to submit an annual statement; 
(e) the minimum amount of information to be included in the 
annual statements and aid applications; 
(f) the administrative and on-the-spot checks and the checks 
by remote sensing; 
(g) the definition of the terms farmer, agricultural 
holding, utilized agricultural area and agricultural 
parcel; 
(h) the establishment of an advance payment scheme in the 
framework of Community part-financing; 
(i) the protection of data collected and used in the 
integrated system; 
(j) measures necessary to ensure the proper implementation 
of the integrated system; 
(k) transitional provisions for the start-up period of the 
system. 
Article 14 
This Regulation shall enter into force on the seventh day following 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. 
Done at Brussels, For the Council, 
FINANCIAL STATEMENT A A 
DATE: 
1. BUDGET HEADING: ARTICLE B1-360 APPROPRIATIONS: 15 MIO ECU 
2. TITLE: PROPOSED COUNCIL REGULATION FOR ESTABLISHING AN INTEGRAL SYSTEM FOR THE 
MANAGEMENT AND CONTROL RELATING TO CERTAIN AID SCHEMES. 
3. LEGAL BASIS: ARTICLE 43 OF THE EEC TREATY. 
4. AIMS OF PROJECT: 
FINANCIAL PARTICIPATION BY THE COMMUNITY IN THE EXPENSES INCURRED IN CERTAIN TYPES 
OF CONTROL BY MEMBER STATES WITHIN THE FRAMEWORK OF THE REFORM OF THE CAP. 
TECHNICAL SUPPORT PARTICULARILY IN THE FRAMEWORK OF EFFECTING CONTROL BY TELEDETECTION 
BY THE MEMBER STATES AUTHORITIES BY-ORGANISATIONS OR PERSONS ACTING FOR THE COMMISSIOII 
5. FINANCIAL IMPLICATIONS PERIOD OF 
12 MONTHS 
Mio ECU CURRENT FINAN­
CIAL YEAR (91) 
Mio ECU FOLLOWING FINAN­
CIAL YEAR (92) 
Mio ECU 
5.0 EXPENDITURE 
- CHARGED TO THE EEC BUDGET 
(REFUNDS/INTERVENTIONS) 
- NATIONAL ADMINISTRATION 
- OTHER 
5.1 RECEIPTS 
- OWN RESSOURCES OF THE EEC 
(LEVIES/CUSTOMS DUTIES) 
- NATIONAL 15 
1993 1994 1995 1996 
5.0.1 ESTIMATED EXPENDITURE 
5.1.1 ESTIMATED RECEIPTS 5© So 
5.2 METHOD OF CALCULATION: 
THE MAXIMUM AMOUNT AUTHORISED BY THE EAGGF GUARANTEE FUND , DIVIDED BETWEEN THE DIFFERJEN 
PHASES OF INTRODUCTION OF THE SYSTEM. 
6.0 CAN THE PROJECT BE FINANCED FROM APPROBIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE 
CURRENT BUDGET? YES/Mb 
6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT 
BUDGET? YES>N> 
6.2 IS A SUPPLEMENTARY BUDGET NECESSARY? IHJVNO 
6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? YES JÊËË 
OBSERVATIONS: 
(1) ESTIMATED EXPENDITURE : 5 EXPERTS AT 100 000 ECU X 3 YEARS = 1.5 MIO ECU 
THIS EXPENDITURE IS INCLUDED IN POINTS 5.0 AND 5.0.1. BELOW. 
(2) THIS EXPENDITURE IS COVERED BY THE CREDITS WRITTEN IN CHAPTERS 30 TO 40. 

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ISSN 0254-1475 
COM(91) 533 final 
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