ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(75)507
Vol.1975/0194

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COMMISSION OFTHEEUSQPEANCCMMU'NITIE **
COM(75)507final
Brussels,15October1975
REPORT
ontheimplementation of
REGULATION(EEC)No283/72OPTHECOUNCIL
of7February1972
concerningirregularities midtherecoveryofsunawrongly
paidinconnectionwiththefinancingofthecommonagricultural
policyandtheorganization ofaninformation systeminthisfield
COM(75)507final.

I,.ÏFTHOÏJUCTÏON
1,Artiole13ofCommissionRegulation(EEC)No283/72providesthat
theCommissionshallreporttotheCounoilbeforetheendof1972onthe,
applicationoftheRegulation *SincetheRegulationdidnotcomeintoforce
until1March1972andBincethatyearwasentirelydevotedtoitsimplemen­
tation,theCommissionthoughtitadvisablenottosubmitthereportonthe
datefixedsothatsufficientexperiencewithregardtothepracticalappli-
AcationoftheRegulationcouldfirstbeacquired*
2*Regulation(EEC)No283/72constitutesanewapproachtocoopera­
tionbetweenMemberStatesandbetweenthemandtheCommissioninpreventing
andeliminatingirregularities tothedetrimentofEAGKJF*
3*Inordertoreinforcethecampaignagainstirregularities ,the
responsiblityforwhichdevolvesonMemberStates,RegulationEECNo283/72
providesthattheCommissionshouldactprimarilyasaninformationcentre*
Thepurposeofthis"informationcentre"istoserveMemberStatesandthus
helptopreventandoombat_.irregularities ,mainlythroughtheanalysisat
,Communityleveloftheinformation communicated andifnecessarythecoor­
dinationorlaunchingofresearchandrelatedactivitiestobeoarriedout
byMemberStates*
4*Regulation(EEC)No283/72concernsalllevelsofthenational
administrative structuresandbyitsverynatureitsapplicationoverlapsto
agreateoctentwiththeactivitiesofthedepartments concernedintheMember
States*Forthisreasonittook18monthstonegotiatethisRegulation *
Likewise,itsimplementation hasgivenrisetomanydifficulties ,themore
seriousofwhichledtotheinitiationofproceduresforinfringement ofthe
EECTreatybysomeMemberStates*
5* Theannualreportsontheimplementation ofthisRegulation
containedinthefinancialreportsoftheEuropeanAgricultural Ouidanoeand
GuaranteeFund*giveadetailedaocountofthestepbystepimplementation
andnotetheproblemsencountered *
1)FirstReportNoSEC(73)1259Final
SecondReportNoSEC174)786Final
ThirdReportNoSEC(74)5246Final
SeeTablecontainedintheAnnextothisreport*

IX.SUMMARY OPTHE SUB3TAITCB OP
REGULATION (EEC)Ho283/72
6* ■■Regulation (EEC)No283/72applies totheGuarantee and .Guidance )
Sections ofEAGGFandexcludes projects fortheimprovement offarmstructures
within themeaning ofArticle 13GfRegulation No17/64/EEC-Itprovides for )
asystem ofinformation between Member States andtheCommission ontheone 1
handandbetween theMember States ontheother .Inconnection with theinfejr-
mation system ,Member States inform theCommission ofanyprovisions laiddown
^Iaw»regulations ,oradministrative action designed tcensure that operations
financed byEAGGF areproperly carried out,toprevent anddealwith irregula­
rities andrecover sumslostasaresult ofirregularities crnegligence (Ar)ti-
cl«2(1)first subparagraph ),Theyforward alistoftheauthorities responsible
fortheapplication ofthese measures andthemainprovisions relating tothjair
activities (Article 2(i),second subparagraph )* |
}
'* Withregard toirregularities observed byMember States ,esserjtial
information istransmitted totheCommission every quarter (Article 3)«Th*,
sameprocedure isfollowed withregard torecovery procedures (Article 5)" ■
,ί
8* Mrirregularities liable tohaveeffects inseveral Member Sijates ,
andthose showing thatanewfraudulent practice hasbe«nadopted ,arecomnnjii -
cated without delay totheCommission andifnecessary totheother Member Spates
(Article 4).Where theCommission considers thatirregularities ornegligent ^
haretaken place itcanrequest theMember State concerned toholdanadminis­
trative inquiry# AttheCommission' srequest itsofficials mayparticipate j
(Article 6)#Should anyloopholes appear inthecourse ofapplication ofpreci­
sionsinforce ,whichprejudice Community interests ,consultation procedure j
isprovided for(Article 7(4), j
i
%
Articles 7and8provids fornotification oftheFundCommittefe
OJ.anyirregularities and .theorganisation afmeetings with theappropriate
representatives ofMember States toexamine information obtained#

III.pBOBT.TiTMS ENCOUNTERED INTHEAPPLICATION
OPREOULATIOU (EEC)Ho283/72
1.Quarterly reports -Articles 3and 5
10.a) TheImplementation oftheinformation system provided for
inArticles 3and5hasraised anumber ofdifficulties *Infact ,information
reaches theCommission after relatively long delays *Such delays illustrate
theneed tolaydown detailed technical rules ofapplication forthesystem
atCommunity level bycommon agreement andalso tocentralize information
gathering atthenational level *
11* Atpresent theinformation system seems tooperate satisfac­
torily inmost Member States subjeot tothefollowing reservations t
12*b) Theconcept of"irregularity "assetforth inArticle 8of
Regulation EECNo729/70andinArticle 3ofRegulation (EEC)No283/72does
notconstitute alegal term with aclearly defined meaning *Intheabsence
ofastatutory definition oftheterm *theCouncil andCommission sought to
define itsmeaning byastatement atthetime oftheadoption ofRegulation
(EEC)No283/72*Butthis general definition hasnotproved entirely satis­
factory *Ithasalso been discussed indepth byaworking party onirregula­
rities *From these discussions itemerged that theconcept ofirregularity
'only covers infringements oftheapplicable provisions committed bybene­
ficiaries ofEAGOF expenditure andthat failure bynational authorities to
fulfil Community obligations isexcluded *
13*c) Thequestion also arises astowhether anirregularity exists
only incases ofirregular action having financial consequences forEAGGF ,or
whether onthecontrary theconcept ofirregularity implies noBuch restriction
Unanimity wasnotachieved attheabove -mentioned meetings onirregularities :
x
inparticular ,delegations could notagree that thenotion ofirregularity
does notimply this restriction •Delegations' opinions onthis subjeot are
extremely varied *
14* Intheview oftheCommission ,Article 3ofRegulation
(EEC)No283/72should beinterpreted tomean that irregularities exist when
theparty concerned deliberatly fails tofulfil hisobligations with the
object ofwrongfully obtaining sums from theEAQGF ,irespective ofwhether the
fraudulent actresults infinancial IOSBfortheEACGF *This interpretation
isbased onthemain aimofRegulation (EEC)No283/72,which istoorganize
asystem ofinformation toobtain better knowledge atCommunity level ofthe

-4-
fraudulent practices employed# Thestressj therefore »wasplaced on
obtaining knowledge offraudulent practices with aview tomore effective
prevention anddetection rather than onrecovering Bumswrongly paid *
Otherwise there would "benoobligation toreport totheCommission unless
theirregularity entailed afinancial loss fortheEAOQP .
15.d) Theconoept ofnegligence referred toinArticle 8ofRegula­
tion (EEC)Ho729/70andArticles 6,10and12ofRegulation (EEC)No
283/72hasnotteen discussed ingreat detail .Itwassimply stated that
acts ofnegligence were notcoverd bytheinformation system laid down in
Artioles 3and5ofRegulation (EEC)Ho283/72
16* ,e) With regard tothenotion of"primary administrative orjudicial
findings offact ",theCommission departments attempted togive afewpointers
withregard toitsinterpretation 1•ItistruethatthiBconcept mustrefer
"back tonational procedures which mayvary from oneMember State toanother ,
making precise definition difficult ,nevertheless ,aprimary administrative or
judicial finding offact does notrequire theexistence ofalegal instrument
closing theinvestigation proceedings noranadministrative decision having
....theforce oflawwhich cannolonger bechallenged bytheparty concerned .
Since theprimary finding offact maytherefore take plaoe before ithasbeen
definitively established that anirregularity hasbeen committed ,facts muBt
beproduced insupport .Itistherefore more than amere suspicion notyet
confirmed byobservations offact .
'17. Furthermore ,aprimary finding offact with regard toan
irregularity mayoccur before allthedetails oftheirregular operation are ;
known ,inparticular itsauthor ,hisfinanoial standing andthedetails of
thepractices used .Lastly ,aprimary finding offact mayalso arise inthe
course ofmutual assistance between the national authorities ofMember
I
States inapplying thevarious legal provisions ,even iftheexpenditure
concerned was made inanother Member State .
18. Itshould bestressed that arefusal bytheauthorities to
accept anapplication not inaccordance with theprovisions inquestion does
x not initself constitute anirregularity andconsequently isnotsubject to
theapplication oftheinformation system laid down inArticle 3ofRegula­
tion EECHo283/72. '
■
1)Seedoo.Vl/2456/73,paras .17to20

19#f) IfallMember States conform tothese rmliMfc :izshould "be
possible toaohieve theobjectives laid down inArtioles 3and5ofRegula­
tion EECNo283/72,namely communication totheCommission ofallrelevant
information asearly aspossible *Ontheother hand ,information notrelevant
attheCommunity level should beeliminated bycorrect application ofthe
above-mentioned Articles ,whioh concern thepractical side oftheobjectives
sought byRegulation (EEC)No283/72#
20*g) With regard totheapplication ofthese provisions inpraotice ,
itmust bestated that some shortcomings should bebrought totheattention of
allthose concerned *Firstly ,theinformation system provided for inArticles
3and5 ofRegulation EECNo283/72hasbeen setuponly gradually andfrom the
Commission 'sexperience so.far inthis field itcannot besaid to
operate inallMember States -with thenecessary precision *andspeed *The
Commission hastwice been obliged toinitiate proceedings forinfringement ofthe
EECTreaty fornonobservance oftheabove-mentioned provisions *Oneofthese
proceedings wasdefinitively shelved whereas theother hasonly been provision­
ally shelved inorder togive theMember State inquestion achance toshow
itswillingness tocommunicate therequired information *
21* Furthermore ,theinformation forwarded totheCommission is
frequently toobrief topermit ananalysis ofthemethods used tocommit or
detect theirregularity *Itistherefore frequently necessary toaskfor
additional information atthemeetings provided forinArticle 7(3)orthrough
bilateral' contacts *Obviously this makes theCommission'.s task more difficult
and iseven liable torender theRegulation meaningless *Itisphysically
impossible torequeatadditional information inallcaseB and ,moreover ,even
when requested itisnotalways provided *IftheRegulation istobeapplied
effectively ,theMember States must bear itschief purpose more actively
inmind ;this istoprovide theCommission ,andhence theother Member States ,
with full information especially onthenature oftheirregularities ,the
methods used andtheway inwhich they were discovered *
22* Despite theshortcomings oftheinformation system ,its
operation hasalready made itpossible todraw some general conclusions on
themethods used tocommit irregularities andonthesectors ormeasures most
frequently affected *

WithregardtotheGuaranteeSeotionoftheEAQGF,theoereals
andmilksectors,andintherecentpastthe"beefandvealsector^have
beenshowntohethemostvulnerable *
Asregardsrefunds,irregularities have"beencommittedmainly "by
usingfalsedeclarations ofdestination ,quantity,qualityortypeofgoods
(tariffheading)*Attheexperts'meetingsonirregularities ,organizedby
CommissiondepartmentsinapplicationofArticle^(3)ofRegulationEEC
*-No283/72,thisinformationhasbeenusedtodrawDelegations 1attention
tovulnérableproducts*
Withregardtochecksonarrivalatdestinationofproduots
exportedwithrefund,emphasishasbeenlaidontheimportanceofrequiring
morestringentprooffromexporters*Thismeasure,alsorequestedbythe
SpecialCommitteeofIaquixy,wasintroducedinRegulationEBCNo2110/74*
amendingRegulationNo1041/67/EECondetailedrulesfortheapplicationof
2exportrefundsforagricultural products •
23*Withregardtointervention ,irregularities mainlyconcernedquan­
titiesinstorageatthetimeofthechange-over fromonemarketingyearto
anotherandwithregardtoquantitiesprocessedfrombasicproducts(quellmehl
(swellingflour),casein,skimmedmilkpowder,ghee,etc***)*
24*Discoveryoftheseirregularities inthefieldofrefundsand
intervention hashighlightedtheimportancethatshouldbeattachedto
auditingtheaccountsofbenefioiaries oftheEAGGPGuaranteeFund;inparti­
cular,acomparisonshouldbemadebetweenstoresaccountsandcashacoounts*The
*Commissionstaffhavestressedthisaspeotofthedetectionandpreventionof
irregularities ^onthebasisofanin-depthanalysisofquarterlycommunica­
tionspursuanttoArtiole3ofRegulationEECNo283/72togetherwiththe
additionalinformationrequestedfromMemberStates*Itisproposedthatprio­
rityshouldbegiventothecontinuation ofthiswork*
1)OJNoL220of10August1974.P*1
2)OJNo314of23December1967*p*9»replacedsince1March1975Regulation(EEC)
No192/75of17January1975inOJNoL25of31January1975»P«1
3)Doc*NoVl/65/74andVl/l59/74+Add*1
•••/•

-7-
25* With regard totheGhiidance Section ofEAGGF ,nearly allthe
irregularities oonmnmioated byMember States totheCommission relate to
premiums forthenon-marketing ofmilk andmilk products *
Irregularities have principally concerned theresumption of
milk deliveries andfailure tomaintain therequired number ofadult bovine
animals *
Generally ,irregularities arediscovered during theregular
offioial inspection before each part payment ofthepremium *
However ,about onequarter ofsuch oases were olosed byvoluntary
reimbursement bythebeneficiaries *
2*Communication without delay -Article 4
26* Cooperation between Member States andwith theCommission ,provided
forinArticle 4ofRegulation EECNo283/72incases where itisfeared that
irregularities mayvery quickly have effects outside theterritory ofa
Member State and incases ofirregularities which show that anewfraudulent
praotice hasbeen adopted ,hasalso created anumber ofproblems which have
been discussed bythecompetent group andbilaterally between Commission and
Member States *
27* TheCommission considers that Article 4ofRegulation EECNo
283/72should notbegiven toorestrictive aninterpretatian**This opinion
wasshared byallDelegations except one ,which maintained that theConvention
of7September 1967 between theMember States oftheEuropean Economio Commu­
nity formutual assistance between national oustoms authorities (Naples
convention )hadprecedence over Article 4ofRegulation ECCNo283/72*
After further discussion ,however ,allMember States agreed
onauniform interpretation ofthis provision ,noting that theNaples Conven­
tion ,insofar asitapplied toEAGGF expenditure ,should notconstitute an
impediment totheapplication initsentirety ofArticle 4ofRegulation EEC
No283/72»Although Member States andtheCommission areinagreement onthe
principles tobeapplied pursuant toArticle 4ofRegulation EECNo283/72,
some doubts still remain astowhether this provision also covers communication
incases where nomore than asuspicion ofirregularity exists *However ,a
broad interpretation seems tocorrespond more closely totheintentions ofthe
authors oftheRegulation ,since thephrase "irregularities which have been
thesubject oftheprimary administrative orjudicial findings offact"
(Article 3)1bnotrepeated inArticle 4*
1)SeeDoe*NoVl/2456/73,paragraphs 21and22; /
Doc*Vl/56/75»point III •••/•••I

-8'-
28. Itshould "benoted that application ofArtiole 4*^Member States
has enabled theCommission towarn national authorities ofthelikelihood of
irregularities inanumber ofcases anddraw their attention tooperations that .
could have financial consequences forEAGGF .Itisimportant that suoh coope­
ration between Member States andbetween them andtheCommission ,Bhould be
reinforced andthat appropriate steps should betaken toensure that Article 4
isapplied more consistently andmore swiftly .There would Beem tobesome uncer­
tainty intheminds ofthenational authorities with regard tothe scope of
this provision ,besides some administrative impediments *
29. More rigorous enforcement oftheadministrative procedures in
Article 4ofRegulation EECNo283/72arebeing discussed onabilateral basis
bytheCommission andMember States with aview tointensifying collaboration
inthis field .
TheCommission iscollecting theinformation needed toorganize "
anetwork ofpersons whose task will betoensure proper application of
Article 4»thenetwork will facilitate direct contaot between national and
Commission authorities with aview toquicker andmore effective prevention and
prosecution oftheirregularities referred toinArticle 4.Itshould benoted
that despite certain differences ofopinion concerning operational details ,all
Member States areappreciative oftheinitiative taken bytheCommission inthis
connection .
3.Information regarding loopholes inCommunity Regulations -Article 7(4)
30* Application bytheMember States ofArtiole 7(4)ofRegulation
EECNo283/72hasoccurred inonly onecase .Following this communication ,
Community regulations were soamended astoprevent theoperations inquestion ,
which constituted adistortion oftheeconomio objectives oftheprovisions
concerned .
31. Commission staff areatpresent ,through bilateral contacts with
Member States ,endeavouring tostress theimportance ofthis provision forthe
continuous improvement ofCommunity regulations .Ofcourse ,continuous improve­
ment takes place routinely through thework ofthevarious management committees .
Itmight nevertheless beuseful tosystematize themethods used toclose
loopholes intheregulations ;thiB would atthesame time increase thetransparen
cyofthework ofimproving Community provisions intheagricultural seotor .
1
f
•••/•••
' «r• n.

32*IntheCommission'svie*,Artiole7(4)ofRegulationEECNo
283/72shouldbeappliedasbroadlyaspossible-ifitistoaohieveits
aimofcontributingtotheproductiveandequitableapplicationofCommunity
regulations *Furthermore,itshouldbesointerpretedastoooverallcases
offiawsinregulations,whetherarisingfromtheinapplicability ofthe
provisionsconcernedtoaspecifiocaseorfromtheirapplicationtospeoifio
casesnotcoveredbytheregulatibnsinquestionfromtheeconomicpointof
view*Itshouldhoweverberealizedthatonlytheformerofthesetwohypo­
thesesconcerns"lacunae"inthelegalsense,whereasthemisapplication
ofregulations ,eventhoughlegal,constitutes anabuseratherthanalaouna*
Requestforanadministrative inquirybytheCommission–Article6
33*Article6ofRegulation(EEC)No283/72,enablingtheCommission
torequestMemberStates,incasesofsuspeotedirregularity ,toholdan°admi­
nistrativeinquiry,hasbeenappliedseventimes*
34* OnpastoocasionswhenArticle6wasapplied,theobligationto
inviteCommissionofficialstoparticipate ,intheinquiryitsorequestedhas
notalwaysbeenrespected *MemberStatesarethereforeremindedthattheyshould
infuturefulfiltheobligationarisingfromArticle6toinviteCommission
officialstoparticipateininquiriesinallcaseswhentheCommissionso
requests*
35* Theseinquirieshaveledtothedetectionofcertainlapsesinthe
applicationofCommunityregulations ,andareasinwhichCommunityregulations
werewanting*
Theinquirieswere,however,limitedinscope*TheCommission
concludesfromthisthatArticle6shouldonlybeappliedwhenverystrong
groundsforsuspicionexistsothattheCommission'srighttocallforaninqui­
ryshouldnotbecomemeaninglessasaresultofabortiveproceedings *
36*Inthisconnectionitshouldbenotedthatthefrequencyofcon­
sultationsbetweenMemberStatesandtheCommissionwithrespecttoinformation
onirregularities hasbeendevelopingsatisfactorily *Thereforeitislikely
thatthenumberofcasesinwhichtheCommissionfeelsobligedtohaverecourse
totheprocedurelaiddowninArticle6willdiminish-particularlyafterthe
pressarticlesonfrauds,whichwereoftenunfounded *Providedthatregular
contactscontinuebetweenthenationalauthorities andtheCommission,itshould
bepossibletoapplytheprocedurelaiddowninArticle6solelyinspecialcases
•••/•••

W bytheir very nature call forsuch aotion ,thereby eliminating all
cases where ,onthebasis ofinformation available toMember States and .
tht*Commission ,itcanbeconcluded thatthisprocedure isunnecessary#
..formation onMemberStates 'provisions with regard topreventing anddealing
£LijLA!L r9^ulariti e3and ,therecovery oflost sums –Article2
3 Member States have c.omnninicated totheCommission theprovisions
laiddown bylaw ,regulations andadministrative action fortheprevention and
prosacution ofirregularities together with ,information with respect tothe
authorities andbodies responsible fortheapplication ofthemeasures laid
down inArticle 2ofRegulation (EEC)Fo283/72.Thisinformation hasbeen
■.amine dwith regard tothe remission ofdebts andrespite ofpayment ,
Asides thepreparation ofalist oftheauthorities andbodies responsible .
Tkestudy will becontinued inthenear future •
With regard tojoint action andspecial measures concerning the
Guidance Section ,Member States have been invited toforward precise information
onthenature ,scope ,andfrequency ofapplication ofnational inspection systems
atpresent inforce ortobeinstituted forthese measures® TheCommission has
stressed thatathrough knowledge oftheprocedures would facilitate coordina­
tionoftheinspections tobecarried outbyMember States andtheCommission
staff aswell asincreasing their effectiveness *
Hg£lmgs_t oexamine information -Article 7(3)
S°far ,theCommission hasorganized four meetings pursuant to
Article 7(3)ofResuia-tion(EEC)No283/72.Theyweremainly devoted togeneral
problems suchastheinterpretation ofthevarious provisions inRegulation (EEC)
283/72andtheir implementation atthenational andCommunity levels .Furthermore ,
theopportunity wastaken toanalyze ,onthebasis ofthequarterly communications
provided forinArticles 3and5,thevarious types ofirregularities andthewayB
nwhich theyhadbeendiscovered .Thisworkmainly enabled Commission staff to
"tethattheauditing ofaccounts and,inparticular ,thecomparison ofcash
accounts withstores accounts ,wasaveryeffective wayofdetecting irregularities .
Theraeeti ngsprovided forinArticle 7(3)were notheld asfrequently
as„heCommission would havewished.This wasmainly duetotheconstitution ofa
Special Committee ofInquiry ,following aCommission decision ,fromNovember 1973
Oc,ober 1974® TheCommittee hadasked thedepartments concerned toundertake ft
considerable volume ofpreparatory work ,which disrupted work inconnection vi

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I'
Regulation(EEC)No283/72andconsequently Commissionstaffversunableto
devoteasmuchtimeastheywouldhavelikedtothisactivity,furthermore,
certainrestraintswereimposedtoavoidanyoverlapping andgivetheSpecial
CommitteeofInquirymoreroomformanoeuvreindefiningitsfieldofaction*
41.TheCommissionplanstoconvenethesemeetingsmorefrequently,giving
increasingemphasistospecificquestionstoenableirregularities tobeanalyzed „
ingreaterdetail*Atthesametime,thenumberofparticipantsatthesemeetings
willbereducedsothatproblemscanbediscussedmorethoroughly *
s Moreover,Commissionstaffareatpresentconsidering,togetherwith
theMemberStates,thepossibilityoforganizingseminarsinconnectionwiththis
iRegulationwiththeobjectofprovidingMemberStates'controllerswithbetter
information *
7.AttributionoffinanciallossesintheCaseofnon-recovery-Artiole8(2)
ofRegulation(EEC)No729/70
42*ThefirstparagraphofArticle8(2)ofRegulation(EEC)Ho729/70
providesthatintheabsenceoftotalrecovery,thefinancialconsequences of
irregularities ornegligenceshallbebornebytheCommunity,savethoseresul­
tingfromirregularities ornegligenceattributable toadministrative authorities
orotherbodiesoftheMemberStates*Inthisconnection,thestatementbythe
CouncilandtheCommissionsetforthinthesummaryrecordoftheCounoilmeeting
of8December1974*providesthattheCommissionwillreporttotheCouncilin
thelightofexperienceonthebestwaytosettleoutstandingcases,ifnecessary
puttingforwardproposalsforsolutionstobeadoptedbytheCouncilinorderto
settleanydifferencesofthiBkind*
43* Uptonow,theCommissionhasbeeninformedoftwocasesinthe
GuaranteeSectionandtwocasesintheGuidanceSectioninwhichitseemedthat
recoveryofthesumswronglywouldbepaidimpossible *Sinceithasnotyetfinally
beenestablishedthatrecoveryisimpossible,however,nopositionoanbetaken
on.thequestionatthisstage*
44*Itwillbenecessarytolaydowngeneralrulesfortheapplication
ofthefirstparagraphofArtiole8(2)ofRegulation(EEC)No729/70,todefine
(itsscopeandtheproceduretobefollowedinitsimplementation *
1)Doc*NoV15V72(AQRI35)(PIN42).

-12-
ntheabsence ofsuch general rules ,this provision seems difficult to
apply incases where differences ininterpretation exist between the
Member State concerned andtheCommission .
IV.CONCLUSION
Régulation (EEC)No283/72provides excellent opportunities
orcooperation between Member States andtheCommission inpreventing and
combating irregularities concerning theEAGGF andinrecovering sumswrongly
Paid . ,,
Theprovisions ofthis Regulation ,however ,call fortheestablis -
hement ofatwo-way flowofinformation bothbetween Member States andthe
Commission andwithin Member States .Therefore ,itisbound totaketime
before suchcooperation becomes effective bothattheCommunity andthe
national level .
light ofexperience gained since theentry into force
ofthisRegulation ,thefollowing provisional conclusions maybedrawn .
48* 0n whole ,Regulation (EEC)No283/72already operates satisfac­
torily inviewofitspolitical implications andtheadministrative difficul­
tiesinvolved initsapplication .Although theRegulations' sapplication has
raised several problems ,someofwhich still need tobestudied ,itBhould
stated that agreat manyofthem have been solved satisfactorily *
^ Inform ation systems provided forinArticles 3and5
Thediffiaulty ofcentralizing information both atanational
andCommunity level hasbeen solved .
Auniform interpretation oftheconcept ofirregularity asan
action committed byanindividual andtheprinciples fortheinterpretation
oftheconcept of"primary administrative ofjudicial findings offact"have
bothbeen established .
Correct application oftheinformation system byallMember States
andtheinclusion in-.this system ofcases inwhich theEAGGF hasnotsuffered
financial losshaveyettobeachieved .

-13-
50.2)Communication withoutdelay-Article4
v
Auniforminterpretation ofthescopeofthisprovision,particu­
larlyinrelationtotheConventionof7September1967betweenMemberStates
andtheEuropeanEconomicCommunityformutualassistancebetweennational
customsauthorities (NaplesConvention)hasbeenestablished ;thevalue
ofthisprovisionhasbeenconfirmedbyitsapplicationinanumberofcases*
Cooperation betweenMemberStates,andbetweentheformerand
theCommission,needstobereinforced,however,andthescopeofthis
provisionshouldbedefinedwithregardtosuspeotedirregularities *
) "
51.3)Communication regardingloopholes-Article7(4)
!
FormalapplicationofthisprovisioninthecaseofaCommunity
regulationinwhichgrapswereapparentresultedinanamendmenttotheRegula­
tioninquestion*
Thisprovisionshouldbeappliedmoresystematically .byMember
Statesanditsapplicationwithregardtoloopholeshavingeconomioimplications
shouldbereinforced *
52*4)RequestsforinquiriesbytheCommission-Article6
, •
ApplicationofArticle6hasinsomecaseBshownCommunityregulations
andtheirapplication byMemberStatestobewanting*
TheMemberStates'obligationtoinviteCommissionofficialstoattend
inquiriesattheCommission'srequestshouldbebetterrespectedinfuture*
53.5)Information onMemberStates'provisionawithregardtopreventing
anddealingwithirregularities andtherecoveryoflostsums
Article2
Information ontheremissionofdebtsandrespiteofpaymenthas
beenanalyzedandalistoftheauthorities andbodiesresponsibleinthe
matterhasbeendrawnup.
Informationwillcontinuetobeprocessed.
•••/•••

14-
*
**)jjgatingsoninformation-Artiole7(3)
MeetingstodatehaveladtovaryusefuldisoussionP general
problemsconcerningtheapplicationofRegulation(EEC)Ho283/74,andthe
analysisofinformationforwardedtotheCommission#
Thesemeetingsshouldheheldmorefrequently,whilstgreater
specialization andamorethoroughanalysisofirregularitiesisdesirable#
Furthermore,thedesirabilityofholdingseminarsforthecontrollers ,of
MemberStatesshouldbelookedinto.
**"*"Attribution offinanciallossesincasesofnon-recovery
Article8(2)ofRadiation(EEC)No729/70
ApplicationofRegulation(EEC)No283/72hasnotyetgivenrise
otheneedtotakeadecisioninacaseofnon-recoveryofsumswronglypaid
*>ytheEAGGF.
Theformulationofgeneralrulesfortheattributionoffinancial
ossestotheCommunityortheMemberStateconcernedwillbenecessaryill"the
longrun«
56#t«..4•Inviewoftheprogressmads,itdoesnotseemadvisableforthe
ommissiontoattachproposalstothisreportforthesolutionoftheabove
ntionedproblems#Itmayhopedthatmostofthemwillbesolvedinthenear
future#Consequently,theCommissionproposestosubmitanewreportonthe
applicationofRegulation(EEC)No283/72beforetheendof1976,together,
necessary,withproposalsforsolutionstoanyproblemsstilloutstanding#

ATr"~-?Y
SituationofCommunications
invirtueofRégulation23Vf2
> *
1)Articles3and-quarterlycommunicationsrelatingtoestablished
irregularities andtothesituationconcerningtherecoveryofsums
undulypaid:
,(seeunder7)
a)GuaraniceSection:
IYcarofthecommunicationHunberof
casesAmountsunduly
puidamounts,tt3covercdupto110prosant .
_communieateri Lin-u.a.:–3»–Ian70
1971 8 8.234.4371,11
8.009.459 97.
1972 21 2.078.265 662.990 32
1973 51 886.518 567.885 64
1974 96 3.801.890 466,443 12
.1975
1stquarte?23 874.420 170.093 19
ITotal 199 15.875.530 9.876.870 62
•/•

-2-
Guidar.ceSection
fears dumberof
casesJunoxaitsunduly
paidiau.a.AlroadipaitlcloseA
b.vreeoveryinu.a. I.in
1971I
26 77.875 69.221 89
1972 61 165.125 112.52168
1973 55 148.537 55.612 37,
1
1974 40 113.632 12.44511
1975 6 20.106: I
2.9B3 15
ITotal 188| ,M1
!525.275x)I1 *■
I252.782 43
x)ofwhichthoshareofEAGGFis50%«262.'37u.a.
Foot–note:
witht.ieexceptionoft:ireecases(premiumsforthefcl3..in*?offfu.itli'ccc
coloringanamountof7*744u.a.andpremiumsforreconversionfor~ho
productionofbeef-I.606u.a.)allthoothercasescommunicatedconcern
premiumsforthenon–coinraorcialisation ofmil!',andofmilkproducts
•s.(R.(KrJc)No.1975/',')
Dist^.ouuionbytypeofexpenditureofthefinancialvolumeatstak<5dueto
yirregularities :GuaranteeSection-
">g?■ ■ ■
T.ypeof
SxpenditureNunrberofcases
eonmunicatedamount.s
unauiy
paidmu.a.Percenta,?e 111
relationtothe
totalamounts
undulypaid
Exportrefunds46«I '
i3.-5O.265G"-:'-
interventions on Ί
theinternaimarket
!153 2.225.265
ITotal199Il «M.I
i15-C75-530100#J

Distribution ofirrepularitiea bysector
–GuaranteeSection–
_SectorNumberofcases
communioatedAraounts
jundulypaid
inu.a.Percentageinrelatipji
tothetotalamounts
~"undulypaid
Milk
ProductsRefunds .
Intorv.10
3211.135.343 (x)
962.942
Total 42 12.098.285 76%
Cereals Rexunds
Interv.6
109168.133
1.047.533
Total 115 1.215.666 8%
Bear Refunds
Interv.6
51.357.941
186.823
Total 11 1.544.764 10%
Products not
includedinRefunds
Anne*II5 338.681 2%
Poultry Refunds 5 264.517 2%
Supar Refunds 4 255.640 2%
PorkRefunds1
!8 125.519 p.m.
Fats Interv.7 27.967
i'Tuitand
Veeetables Refunds 1 2.538 P*RU
Refunds1 1.953
Total
saesaaBasBai MBSaSSBBSJ199
B89Bsaasaaaaa«i89815.875.530
sesacMaBaseaaansa&Bamac100%
(x)ofwhichonesinglecaseamountsto7,7thous.u.a. '

-4-
i
2)Article 4:immediate communications ofirregularities making *useoxnev;
fraudulent practices withapotential effect onother Member States (seeunder 8).
Uptonow15communications concerning irregularities (under Articl3 4of
Regulation 283/72),with thefollowing distribution havebeen transmitted :
Beef .:9ofwhich : 3refunds
1intervention
5compensatory amounts
Milk Products s2ofwhich : 1refund
1intervention
1concerning interventions
1concerning interventions
Annex II :1concerning refunds
Pork ;1concerning refunds
Following thetransmission ofthese communications totheCommission ,theMember
States involved were informed oftheir content bytelex *Beef
Milk Products
Cereals
Pats
Products not
included in
Annex II
Pork

3)Article6:theappointmentofan'Administrative Enquiry*inaIlenber
StateatrequestoftheCommission(seeunder0)
Uptonow,andattherequestoftheCommission,five'administrative enquiries *
have"beensetupindifferentMemberStatestoinvestigatethegroundsfor
suspicionofirregularities detrimentaltotheEAGGP.
Theyconcern:
Sector îlumberofcases Stateofproceedmgs
l'isharies 2 Closed:noirregularity
Vcouldbeproven.
Sugar 1 Closed:noirregularity ,
noexnenditure borneby
LAGGF
Ccreals 1 moroceso
uice 1 mprocess
Theresultsofsuchenquirieshavebeenlimited.'TheCommission
has,therefore,institutedaprocedureI:no'.jnas'Pre–'*inordertoavoidthe
setting-upofenquiriesonthebasisofmeresuspicionsorpresscuttings.The
objectofthisprocedureistoasktheIler.ibarStateconcernedforinformation
onsuspectedirregularities beforesetting-upaformaladministrative enquiry.•

The'pre-o1procedurehasbeenusedin13casesinvarioussectors:
Seetor Numberofcases Stateofnroceedings
Beef 6 2filesclosed:no
irregularity
4filesinprocess
tlilkproducts 2 innrocess
Cereals 2 1fileclosed:no
irregularity
1filem-nrocess
Rice 1 mprocess
»ine 1 fileclosed:
noirregularity
Pork 1 mprocess
4)Article7tparagraph4sCommunication bytheMemberStatesofeventual
lacunaeintheCommunitylegislation (seeunder0).
Uptonov;onesinglecaseinthemilkproductssectorhasbeenpointed
outtotheCommunityauthorities.Followingthiscommunication tho
CommissionhasmodifiedaRegulationsoastopreventpossible
irregularities .