ARCHIVESHISTORIQUES
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COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(76)704
Vol.1976/9015

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COM(76)704 final .
COMMISSION Brussels,3January1977
OFTHE
EUROPEAN COMMUNITIES FOROFFICIAL USEONLY
GeneralSecretariat
o
COMMUNICATION FROM THE COMMISSION TOTHE COUNCIL
relating thethemeasures taken andtheresults obtained
inthecampaign against irregularities
COM(76 )704final .

MEASURES TAKENANDRESULTSOBTAINEDINTHE
CAMPAIGNAGAINSTIRREGULARITIES
HavingexaminedthereportsoftheSpecialCommitteeofInquiryrelatingto
expenditure bytheE.A.G.G.F.-GuaranteeSection-inthemilkproducts
sectorandintheoliveoilandoilseedssector,theCouncilshowedhow
importantitconsideredthisworkbyadoptingtheResolutionof16December
1975onstricterpreventionofandproceedingsagainstirregularities inthe
financingofthecommonagricultural policy(OJECC298of30December1975).
Amongotherrecommendations inthisResolution,theCouncil .
-urgedtheCommission,withinitssphereofauthority,totakemeasuresto
ensurestricterapplication andimproveddraftingofthelegislationofthe
EuropeanCommunities andtonotifytheCouncilthereofassoonaspossible;
-proposedtoreview,onthebasisofadetailedreportandevaluationto
besubmittedbytheCommission,theactiontakenandtheresultsachieved
inthecampaignagainstirregularities .
Theaimofthiscommunication istoreviewtheworkcarriedoutinaccordance
withthesedirectives .

£3I£l§yBIS_I0_ENSyRE_STRICIER_APPLICATI0N_AND_BETTER_DRAFIING_0F_THE <.RyLES
StrieterageJMcation
TheCommissionstaffmaintainaclosesurveillance overtheimplementation
oftheCommunityrulesbyconductingon-the-spotinspection^,takingthe
formofrandomcontrolsinoneormoreMemberStates,ortargetedcontrols
inallnineMemberStates.
(a)randomcontrolswerecarriedoutin1975and1976ontheapplication
of:
-theintervention systeminthebeefandvealsectorinamajor
meat-producing MemberState;
-therulesrelatingtotheincorporation ,withEAGGFaid-ofskimmed-
milkpowderintofeedingstuffs ;
-thesystemofprivatestorageaidforpigmeatinoneMemberState.
(b)targetedcontrolswereorganizedin1975and1976inalltheMember
§tale§bit5
-thesystemofcompensatory amountsinintra-Community trade;
-thesystemofpremiumsforbeefandvealproducers;
-thesystemofrefundsforexportstothirdcountries(checkson
proofofarrivalofgoodsatdestination).
Theresultsofbothtypesofinspectionhavebeenorwillbenotified
totheMemberStatesconcerned,sothattheapplication oftheCommunity
rulesandthecontrolprocedures maybeimprovedwherenecessary.

(c)Withrespecttotheapplicationofcustomslegislation,inparticular
theCommunity ,transitsystem,theCommissionisexaminingthecauses
oftheattimesunsatisfactory operationoftheprocedureforthe
returnoftheT5controlcopyprovidedforbyCommissionRegulation
N°1380/75,thepurposeofthisprocedurebeingtocertifythetrue
destination ofthegoods..
(d)Withrespecttopremiumsgrantedtoproducersofbeefcattleinthe
1974-75and1975-76marketingyears,theCommissionsentareportto
theCouncilon14April1976(doc.R979/76-Agri280)settingforth
thelessonslearnedfromexperience andsuggestingamendmentstothe
systeminforce,inordertofacilitatemanagement andincreasethe
effectiveness ofcontrols.
(a)Someworkhasbeencompletedandotherworkisstillunderwayonthe
taskofimprovingthepresentation oftherules.
Therulesgoverningthefollowingsectorshavebeenconsolidated :
cereals,rice,eggs,poultrymeat,pigmeatandfisheryproducts.
Similarworkisunderwayinthefollwoingsectors:milkproducts,
wine,processedfruitandvegatables.
Inthesameway,theCounciladopted,inNovember1976,aregulation
establishing asinglelistofalltheinterventions financedbythe
EAGGFGuaranteeSection.
s
(b)TheCouncilandtheEuropeanParliamenthavereceivedacommunication
fromtheCommissionontheactiontakentosimplifyagricultural
regulations (seeDoc.R2812/76AGRI753FIN733).

Followingreceiptofthiscommunication,theCounciladoptedatits
meetingof23.11.1976aresolutionrelatingtothemeasurestobetaken
tosimplifytheagriculturalregulations andarrivedatanumberof
conclusions (seeDoc.R2694/76).
SeveralotheractionsundertakenbytheCommissioncanalsobecited,
forexample:
-Reg.(CEE)1687/76oftheCommissionestablished commonmethodsof
controlovertheuseandorthedestinationofproductscomingfrom
intervention,thisregulationharmonisedandcombinedmeasuresformerly
appearingintwentytwodifferentregulations.
-Reg.(CEE)832/76simplifiedthetariffnomenclature concerningproducts
inthecereal,beefandsugarsectors.
-TheCommissionhasrecentlybroughtbeforeCouncilaproposalfora
regulationrelatingtostorageoutsidethenationalterritoryof
productsboughtintointervention .
.MEASURES TAKENANDRESULTSOBTAINEDINTHECAMPAIGN AGAINSTIRREGULARITIES
TheCommissionhasendeavouredtodetectandtopreventbothtypical
irregularities andspeculativetradeflowsorganizedwiththesole
purposeofobtainingfinancialsupportfromtheCommunity..
Generallyspeaking,theabovementioned controlstoensurecorrect
implementation oftherulesareintendedtopreventfraud,mainlyby
checkingthatthecontrolproceduresareoperatingeffectivelyinthe
differentMemberStates.Somespecificmeasureshavealsobeentaken,
however.

5.
A.fmsûîifiû.fl:LsBSSuAâiiYS -îEsdfi-iAaaâ
Inseveralsectorsoftheagricultural commonmarket,theCommissionhas
takenmeasurestoensurethatoperatorsdonotderisefinancialadvantage
fromorganizingcertaindeflectionsoftrade,following,inparticular,
substantialchangesintherateofaccessionormonetarycompensatory
amounts(1).
Thataction,meanttoimproveobservanceoftheeconomicpurposeofthe
regulationswillbepursuedascircumstances mayrequire.
B.Ilf2CÎS-i2-£2!!!baS.irrgguiaritie5
Thechieftoolintheefforttocombatirregularities isCouncilRegulation
283/72of7February1972(2).TheworkoftheExpertGroupon"EAGGF
Irregularities "hasalreadybeentranslatedintoactionandspecific
proposals.
1.ThereportontheapplicationofRegulation283/72wassenttothe
Council1nOctober1975..'Themainconclusionofthereportwasthat,
aftersomeinitialdifficulties inherentinsettingupanynew,informationn
system,cooperationbetweenMemberStatesandtheCommissionhas
improvedconsiderably .
2.TheworkoftheExpertGrouponEAGGFIrregularities hasincreased.
Meetingshavebeenheldmorefrequentlyandmorebilateralcontacts
havebeenestablished betweentheCommission andtheMemberStates.
Thereareseveralaspectstothework:
(2)Regulationconcerningirregularities andtherecoveryofsumswrongly
paidinconnectionwiththefinancingofthecommonagricultural policy
andtheorganization ofanInformation system1nthisfield(OdECL36
10.1.1972)./
<1>R(CEE)1661/73 R(CEE)2852/75
R(CEE)2718/75
R(CEE)2830/75
R(CEE)161/76R(CEE)577/76
R(CEE)1017/76
R(CEE)246A/76R(CEE)1708/74
R(CEE)523/75
R(CEE)2582/75

(a)institution ofasystemforrapidnotification ofirregularities ;
(b)aproposalforaDirectivewasforwardedtotheCouncilonthe
scrutinybyMemberStates,oftransactions formingpartofthe
systemfinancedbytheEAGGFGuaranteeSection;
(c)thecompilingofastrictlyconfidential recordofirregularities /
fortheuseofMemberStates'inspectiondeparments;
(d)preparation oftrainingcoursesforinspectorsdealingwithEAGGF
expenditure.Aprogrammeofseminarshasbeenorganizedbythe
Commissionstaff;
Asregardsresultsoftheabovementioned work,itisworthpointing .
outthat:
(a)thenumberofirregularities notifiedtotheCommissionby
MemberStatespursuanttoArticles3and4ofRegulation283/72
hasgoneupconsiderably inrecentyears(1973:53cases,"
1974:97cases,1975:150cases,firsthalfof1976:200cases).
(b)theabovementioned Directiveonthescrutiryofaccountswas .
transmittedtotheEuropeanParliament,totheEconomicandSocial
Committee,andtotheCouncilinJuly1976.Whileawaitingthe
opinionsoftheseinstitutions therelevantbodiesoftheCouncil
havealreadyhadapreliminary exchangeofviewswiththedelegate
oftheMemberStatesonthisproposal.

7.
C.Information_groçessing
Attheendof1974theCommissionemployedaprivateundertaking
tostudythepossibilities ofapplyingelectronicprocessingtothe
materialconcerningthemanagementoftheCommonAgricultural policy.
Afterthepreliminarystudies,nowcompleted,certainstepshavebeen
determinedforthesettingupofsuchasystem.
Thework,inthecurrentstage,islimitedtotwofieldsofaction
whicharedeemedtohavepriority:
-storageandcommunication ofdifferentagricultural rates
(levies,exportrefunds,monetarycompensatory amountsetc..)
-financialmanagementoftheEAGGF.
Thisfirststage,whichisnotdirectedspecifically towardthedetection
ofirregularities ,couldbeusedindirectlyforthatpurposeinsofaras
itwouldbepossibleto,formulateaprogrammepermittingtheautomatic
detectionofsituations wheretheriskoffraudisinherent.
Thenewequipmentwhichshouldbeinstalledinthefirstsix.monthsof
1977willtakeaccountoftheserequirements .
./■

8.
ItisrecalledthatintheannualfinancialreportontheEuropean
Agricultural GuidanceandGuaranteeFundundertheheading"Inspections
andIrregularities "thereisadetailedaccountofthecampaignagainst
fraud,themeasurestakenandtheresultsobtained.
TheCommissionstressesthatinthecampaignagainstfrauditmakes
everyendeavourtoachieveconsistency initsactions,byensuring
effectivecooperation betweentheauthorizing'departments andthecontrol
departments .
Withthesamedesireforconsistency andefficiency,theCommission
hopesthat,whendraftingrulesormeasures,theCouncilwilltake
dueaccountofmanagementandinspectionconstraints.