ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(75)479
Vol.1975/0183

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COMMISSION OrTHEEUROPEAN COMMUNITIES
COM(75)479 final.
Brussels,25September1575•\
I REPORT
presentedbythe
COMMISSION OPTHEEUROPEAN COMMUNITIES
toina
COUNCIL
pursuantto
Article14(4;of
REGULATION(EEC,EURATOM,ECSC)No2/71OPTHECOUNCIL,OF
2JANUARY1971IMPLEMENTING THEDECISIONOF;■";L1970
ONTHEREPLACEMENT OPFINANCIAL CONTRIBUTIONS -Mb.;,
STATESBTTHECOMMUNITIES »OWNRESOURCES
COM(?!))b79final.

EXPLANATORY NOTE
Under Article l^C^)ofCouncil Regulation (EEC,Euratom ,ECSC )
No2/71of2January 1971 (,l)theCommission should havereported to
theCouncil ontheoperation oftheownresources inspection
arrangements before theendof1973 *
Itwasimpossible tokeep tothisdeadline asCouncil Regulation
(EEC ,Euratom ,ECSC )No165/7*+determining thepowers and
obligations ofofficials appointed bytheCommission pursuant to
Article l4($ )ofRegulation No2/71wasnotadopted bythe
Council until ZkJanuary 197*+.(2)TheCommission hadsentthe
proposal foraregulation totheCouncil on2June1972 .
Consequently ,until 31December 1973 ownresources inspections
were carried outonthebasis ofprior agreements concluded for
each visit with theMember State concerned ,asthere were no
provisions forimplementing Regulation No2/71.Trueassociation
withnational inspections didnotbegin until thefinancial year
197' +.
Consequently ,theCommission could notsubmit aproper report to
theCouncil ontheoperation ofthesystem initsfinal form
without also taking into account theinspections carried outm
v
197^inaccordance with theprinciples setoutinRegulation
No2/71anddefined ingreater detail inRegulation No165/7*+.
(1)OJNoL3,5January 1971
(2)OJNoL20,2^January 197 1*

XIX/372/75-2
CONTENTS
Page
4
I.National measures intheMember States relating to
verifications andinquiries 6
'i.Internal oradministrative inspection 6
2,Sbcternal inspeotion °
II.Information oontained inthereports Gent tothe
Commission bytheMember States 8
1.General statistical information 9
2.Difficulties encountered during collection •10
(a)Matters indispute 11
(b)Questions ofprinciple 12
(o)Cases offoroe majeure '3
III .Association oftheCommission with national inspections .. 14
1»Association with theinspections uptotheendof
1973 andimplementation ofapermanent procedure H
2Implementation oftheinspection programme for1974 •• 17
(A)Quantitative assessment * 17
(B)Level ofandarrangements forassociated
inspections 19
(a)Association with internal inspections made by
departments <■..^» 19
(b)Association with inspections oarried outattin*
oentral offices oftheMinistries conooir.^d , CO
(c)Association with internal inopaoti ons by
oentral authorities ..■.„-<- 2»
(C)Composition oftheinspection teams .,.,,.. 0.*,..*
(a)Officials from theCommiDsion 'sDiraotoratea-'
General 22
(b)Audit Board officials 22

XIX/372/75-E
Page
(D)Mainpurpose of "theinspections 22
(a)Establishment ...... 22
("b)Entering ownresources into theaccounts and
making them available 23
IV.Aosoconont oftheoperation oftheinspection
urraiigc&ânis 24
1,Preliminary results ofassociated inspections
oarried outin 1974 25
2,Information supplied totheCommission bytheMember
States ,inparticular under Artioles 4»5a-nd .13of
Regulation No2fj1 26
3Association with national inspection measures ;
Artiolo 14ofRégulation Ko2/71 25
4,Therole oftheAdvisory Committee onOwnResouroes ..27
5,Proposed inspection visits for1973 •••• 28
6,Proposals toamend existing provisions 29
AOTJEXffS tI»Ownresouroes paid over ,1971-74 30
II«Graph showing thepercentage oftheBudget
ooverod byownresouroes (1971-75 ) 31
III-Graph showing thepercentage oftheBudget
covered byownresources ,bytype ofresource
(1971-74 ) 33

2-£ν\-Γ£\ΧΙΧ ΧΙΧ/372/75-Ε
PursuanttoArticle201oftheTreatyestablishing theEECandArticle173...
oftheTreatyestablishingtheEAEC,andinorderto"balancetheirBudget,
theCommunities havebeenallocated ownresourcosinaccordancewiththe
ruleslaiddownintheDecisionof21April1970onthereplacementof'"\financialcontributions fromMemberStatesbytheCommunities' ownresources.
1.ThaCommunities donotcollecttheownresourcesthemselves.Theydo
soindirectlythroughtheauthorities andagenciesintheMemberStates,the
lattermakingtheservicesoftheseauthorities andagenciesavailableto.
thoCommunities ,sotospeak.Thearrangementsforthecollectionofown
resourcesfortheCommissionoftheEuropeanCommunitiesarelaiddownin
Regulation(EEC,Euratom,ECSC)No2/712implementingtheDecisionof.
21April1970,endtheymaybesummarizedasfollows: l
-TheCommunities' ownresourcesareestablishedinaccordancewiththe'
nationalprovisionslaiddownbylaw,regulationoradministrative action
(Article1ofRegulationNo2/71)}however,thoI'omborStatesassumetho
risksofnon-reoovory andplacetheamountsestablishedatthodisposalof
thoCommunitieswithinthetime-limitlaiddowninArtiolo6ofthat'
Regulation.
-TheCommission,foritspart,receivesappropriateguaranteesthatthe;"'
proceduresfortheestablishment entryintheaccountsandmakingavailable
ofownresourcesbythenationalauthoritiesoragenciesarecarriedout
properly:suchguaranteesoonsistmainlyofinformation onthoworkofthe
nationalagenciesconcernedwiththecollectionofownresources.This
informationissenttotheCommissionregularlyintheformofhalf-yearly
andyenrlyreports(Article5a^d13ofRegulationNo2/71)»informationon
nationallegislation onthissubjectandinformation onthenational J
authoritiesoragenoiesresponsibleforcollectingtheresources ?othor-
.wiso,theCommissionmayobtainsuchinformationitselfonthespotwhonitsauthorizedoffioialsareassociatedwithnationalownresources
inspectionscarriedoutbytheMemberStatesontheirowninitiativeorat
therequestoftheCommission(Artiole14ofRegulationNo2/71).
Indeed,thoCommissionmaybeassooiated,atitsrequest,withtheinspections
carriedoutbytheMemberStates.Furthermore ,theMemberStatesmnybe
asked,bymoansofarecfuestfromtheCommiscion,statingc-.creckons
therefor,tocarryoutadditionalinspections.
TneCommissions righttobeinformedandtomonitorownresourcesicthus
aconsequenceofhavingmadethenationalauthoritiesro^onoiblofor
collectingtheseresouroes.
10JNoL94,28April1970.
20JNoL3,5January1971.

XIX/372/75-E
2.PursuanttoArtiole14(4)ofRegulationNo2/71»"theCommissionhadtoreporttotheCounoilontheoperationofthoinspeotionarrangements "before
theendof1973*
However,&ucircumstances preventedtheimmediateadoptionoftheimplementing
provisionsrelatingtothepowersandobligationsoftheofficialsappointed
bytheCommisniontooarryoutsuchinspections,itwasnotuntilthe^
"beginningof1974,whenCouncilRegulation(EEC,Euratom,ECSC)No165/74
01'21January1974waspublished,thattheCommissionoouldbefully
aaaooiatodwiththenationalinspectionsinaccordancewiththerelevant
provisionsofRegulationNo2/71.
CoTimiasionstaffhadinfactbeenassociatedwithsuchinspectionsbefore
thononthebasisofprioragreementsconcludedwiththerelevantMember
Stateinconnectionwitheachvisit.
Consequently ,theCommissioncouldnotsubmitaproperreporttotheCouncil
ontheoperationofthesysteminitsfinalformwithoutalsotakinginto
aocounttheinspectionvisitsmadein1974»thefirstyearinwhichthe
Commission wasfullyassociatedwithsuohvisitsinaccordancewiththe
prinoiplessetoutinRegulationNo2/71anddefinedingreaterdetailinRegulationNoI65/74.
TheCommissionthinksthatsuohareportshouldoontaint
I-anoxc^inationofnationalmeasuresintheMemberStatesonthesubject
ofverifications andinquiries:
1
II-anexaminationoftheinformationsubmittedtotheCommissionintho
yoarlyandhalf-yearlyreports;
III-anexaminationofthearrangementsfortheassociationofthe
departments'oftheCommissionwiththeinspectionscarriedoutbythe
MemberStates;
IV-ageneralassessmentofoooperationbetweenthoMemberStatesandthe
Commissionoonoeminginspections,andproposalsforimprovingtho
systeminthelightofexperiencegained.
OJNoL20,24January1974•

-6- XIîy372/75-E
I. NATIONAL MEASURES INTHEMEMBER STATES RELATING TOVERIFICATIONS AND
INQUIRIES
TheMember States carry outverifications and .inquiries concerning the
estnb2 ..n'.,uent andmaking available ofownresources .Furthermore ,pursuant
toArticle 4ofRegulation No2/71,each Member State provides theCommission
with thefollowing 'information attheCommission 'srequest :
thedesignations ofthedepartments oragencies intheMember States
responsible forestablishing ownresources and ,whore appropriate ,their
statutes ;
-thegeneral provisions laid down bylaw ,regulation oradministrative
action orrelating toaccounting procedure ,concerning theestablishment
ofownresources andtheir being mad.e available totheCommission .
A. Adistinction canbemade between twomain types ofnational inspection
relating toownresources .
1.Internal oradministrative inspection
Theprinciple ofinternal oradministrative inspection isvirtually
identical inallMember States .Itconsists ofinternal inspections
carried outbyadministrative superiors orbyaspecialized inspection
,body .
These inspections -whether they arecarried outsimultaneously or
subsequently -make itpossible fordecisions taken bysubordinates to
berovoked orchanged .Theofficials appointed forthis purpose carry
outinspections either onthebasis ofdocuments oronthe spot in
unannounced visits during which they have extensivo powers concerning
notification andinvestigation .They draw upareport tobecubmittod
tothelocal superior towhom they areanswerable ortothecentral
administrative body oftheMinistry towhich they report .
2»Extcmalinspection
Broadly speaking ,external inspection isadministered :
-bythecourts intheMember States oftheCommunity aaoriginally
constituted ,under theaegis ofthenational Audit Offices ,thoroles
andresponsibilities ofwhich vary from country tocountry ;
-byParliament inthethree newMember Statoa .
IntheUnited Kingdom theController andAuditor Ceneral i3appointed
bytheCrown andhasastatus similar tothat ofaHigh Court Judgo .

-7- XIX/372/75-E
InIreland theComptroller andAuditor General isaconstitutional
officer appointed bythePresident onthenomination ofParliament .
Inboth countries these officers have extensive powers toobtain all
information ordocuments which they consider necessary forthe
performance oftheir duties .They present toParliament areport
which isconsidered byaParliamentary Committee empowered toexamine
witnesses .This Committee makes recommendations andcomments with
regard tofinancial control ,accounting procedure ,wasteful expenditure
etc ..janditsrecommendations aregenorally putinto practice .
InDenmark ,Parliament appoints five inspectors andfive deputies for
aperiod offour financial years .These inspectors areanswerable
only toParliament andareresponsible forinspecting theannual
accounts oftheState .They mayaskforall theinformation which
thoy need fortheperformance oftheir duties andmayrequire the
presentation ofsupporting documents .
Thoy baso their researoh mainly onthoreports received from the .
departments responsible forauditing theaccounts ,which arethe
highest administrative authority onthematter .
D. Itmust also bopointed outthat ,inessence ,external inspection
inthoMembor States iscloser tothat administered bytheAudit Board of
thoEuropean Communities pursuant tothespecial provisions contained in
theTroaties establishing thoEEC (Article 206)andthoEAEC (Article 1C0)
andsetoutlater inRegulation No2/71(Article 14(3))andintheFinancial
Regulation of25April 1973 .
Onthoother hand ,theCommission 'ssupervisory role inthis field -in
connection with which itmayask tobeassociated with Member States'
inspoctiono -takos theform ofinspections made byauthorizing officers
which rocomblw national internal inspections .
ThoCommission therefore obtains information onthis socond typo of
inspection from thoMember States anditiswith such inspections that the
officials appointed bytheCommission generally ask tobeassociated .
OJNoL116 ,1May1073 .

-8- XIX/372/75-2
II.INFORMATION COHTAINEE ITTTHEREPORTSSENTTOTHECO??:!SSIOXHITHE
KLCMI3ERSTATES
ProvisionismadeintwoarticlesofCouncilRegulation No2/71forreports
to"bepresented ,totheCommissionbytheMemberStates.
Article5ofRegulationNo2/71providesthateachMemberStateshalldraw
tipyearlyasummarystatementofaccountstogetherwithareportonthe
.establishment andmonitoringofownresourcesandshallforward-thisto
theC6i,.n-ssionbefore1Juneoftheyearfollowingthefinancial "year
concerned..
Article13(3)ofthatRegulationprovidesforhalf-yearlyreportsrelating
toquestionsofprincipleandmattersindisputewhichhavearisen.
■Thesereportsappearregularlyfordiscussion ontheagendaofthemeotinga
oftheAdvisoryCommitteeonRecourcessetupbyArticle26of
Regulationlio2/71.AtthethirdmeetingoftheCommitteeitwasagroed
thatthereportonthoseoondhalfoftheyearwouldbecombinodwiththe
annualreportforwhichprovisionismadeinArticle5.
ThoinformationobtainedbytheCommissionisrathergeneralbutenablesit
toperceiveanyshortcomingsinownresourceslegislation and,whero
appropriate ,tomakeproposalswithaviewtoimprovingit.Inaddition,
thoCommiDsionbasesitselfonthisinformationinordertochockits
forecastsandplanitsinspections.
ThoMemberStateshaveagreedtodraftthesereportsinaccordancewithan
outlineproposedbytheCommission.
AccordingtothetoxtofArticles5and13(3)ofRegulationNo2/71,thore
orebar.*w.allytwotyposofinformationtoboincludedintho-roports :
–statisticaldatarelatingtothenormaloperationoftheownresources
collectionsystem,togetherwithcomments;
-anexaminationofdifficultiesarisingasaresultofcollection.
Theoutlineforannualreportsisintwopartstherefore ,onedevotedtostatisticalinformationrelatingtothewholeofthoyearunderreviewand
theotherconcerningdifficultiesthathavearisen'duringcar.oporiod.
For1974,onlytheamountsinownresourcesactuallyt"ranfsferredwore
available,astheannualreportsfromMemberStatinworPno'treceivedintime.

-9- XIX/372/75-2
Gcnoral statistical information
Ingeneral ,each Member State presents itsdata inaccordance with
thefollowing outline :
l
Category ofresourcesForecast Outturn
sf
u.a .national
currcncyu.a .national
currency
Customs duties established
Customs duties tobepaid
ovor
Import levies
Export levies
Non-mombor country monetary
compensatory amounts
Acoession compensatory
amounts
Sugar levies -storage
Sugar íovies -produotion
oxcoeding basio quota
Total own resources tobe
paid ovor
With thoso data itispossible tomake acomparison :
-intheannual report ,between payments forthetwolve months ofthe
year andthefinal figures ,taking into account supplementary and
amending budgets ;
-inthohalf-yearly report ,between thoamounts established andmade
available totheCommission inthefirst sixmonths oftheyear and
50>oftheforecasts made forthewhole ofthoyear inquestion .
Aiincx Itothis report contains atable indicating thoownresources
paid over inthe1971-74 period .
Annexes IIandIIIcomplement thi3 table with twographs illustrating ,
ingeneral andbycategory ofrevenue ,thepercentage oftheBudget
wnich iscovered byownresources .
1

-10- XIX/372/75-E
Forthe1971-73periodthemainobservations ?concerningthestatistical
tablessupplied ,bytheMomborStatescanbesummarizedasfollowoi
-Inthecaseofcuctom3dutiesttheoutturnequalledorexceededthe
forocasto.
InItaly,outturnexceededforecastsbyasmuchas13$in1973*
Thisdifferenceisattributable tomonetaryfactorsandinflation
which,mainlyasaresultofthemuchhigherworldpricesforraw
materialsandfoodstuffs,causedalargeincreaseinthevalueof
importsintotheoountry.
-Intheoaseofagricultural levies,however,aprogressivereduction
wasobserved.Thiswasduomainlytoadropinimportsofcereals
andbeefandvealfromnon-momberoountriesasaresultofhitfier
agricultural pricesontheworldmarket.
Itshouldboaddedthatthetrendinagricultural leviesislinked
tothelevelofagricultural productionandEuropeanandworld
agricultural prices.Itisimpossibletopredictthoselovols
andprioeswithanydogreeofaoouraoy.
In1973therevaluationoftheguilderaooontuatodthisreduction
intheNetherlands .
-IntheoaciaofIciviononsuror.outturnsworevoryolocotoforeoauts,
particularly in1972#Incertaincountriosthorowasevona
considerableincreaseinrevonuofromproductionloviosfollowingan
abundantharvest.
Althoughtheoutturnin1973oxceododfoi-ooaotothorowacctill;i
reductioninrosourcoscomparedwith1972inmostoftheoriginal
MamborStatos.
2,Difficult ,i»nencountered duringcollection
TheinformationsuppliedbyMemberStatosunderthisheadingis
disparateandpresentedintabularform.
Nevofrthalesaitisstillposraibletoattempttosummarise )theinformation
sentinsincethefinanoialyear1973,asfollowa.
Basicallythesedifficultiesresultfrom:
(a)problemswhiohcanbegroupedtogetherund'jrthegeneralheading
ofmattersindisputeandwhiohooncorneitherdiupuvooor
irregularities }
(b)questionsofprinoiplearioingasaresultofthecollociiono;'
ownresources .

(a)Matters indimute
–Thefollowing amounts v.'cre involved :
InGermany :Thefollowing sums were recovered through
proceedings initiated inthecourse ofon<*fuiries :
DM17million bywayofcustoms duties
DM0.6million "bywayoflevies .
.InBelgium :Bfrs 67988062 "bywayofrecovered duties .
•InDonmark :Dkr6.2million bywayofduties andtaxos were
recovered following attempted illegal imports .
These amounts inoludo "both customs duties and excise
duties ,customs duties representing only 2r-4/»ofthe
total .
•InFranoe :4690 cases ofirregularity discovered -noindication
oftheamount involved 1.
•InItaly : Lit270million recovered in 1973-
•InIroland :£6401reoovered .
«InLuxembourg Lfrs 231641frepresenting 0.12>ofrocoipts from
customs duties ,wore recovered through reaching
compromise agreements .Nocaso offraud inoonnootion
with levies was uncovered .
1In\-he Theamount wasnotindiouted ,butabout 1$ofimport
Netherlands !declarations gave riso todisputes .
1
.Inthe There being nonational etatiatios ontheouma
Unitod reoovered ,itmaybostated that finoo imposed for
Kingdom : smuggling offonoeo amounted toabout £350 000 .
m nuxttftrn brought -thpQommj.onion >Battention dor.otrolnto to
_t.no same nootorn ineach Member State :
• .InGermany andthoUnitod Kingdom :artiolos eubjeot tohigh duty
(spirits ,oigarottes ,spare part'a foroomputoro ,eto.).
•Asrorarda France ,itshould bepointed outthat :
«•thewine industry isparticularly affected byillogal imports
ofwine orwine produots from non-rnombor oountrios which aro
doolarod toboinfree circulation inordor toqualify for
Community preference ;
1„Noindioation astothesums reoovered wasgiven bythoKomber State concerned .

-12- XIX/372/75-E
-cases ofpersistent fraud have "been discovered ,concerning
products from developing countries .Generalised preference
treatment wasrequested illegally forthese products .
•InItaly disputes concern mainly theregulated agricultural sectors .
•I"theNetherlands ,disputes concern mainly tariff classifications ,
theapplication ofprovisions concerning value forcustoms
purposes andtheestablishment oflevies .
(b)Questions ofprinciple
Since 1971 anumber ofquestions have been raised inthereports which
theMember States submit totheAdvisory Committee onOwnResources
pursuant toArtioles 5and13ofRegulation No2/71.
Those questions concern anumber offields andinsome cases atentative
solution has been found .
Thetariff classification ofchemically pure lactose andglucose isa
case inpoint .
Onthesubject oftheentry intheaccounts ofmonetary compensatory
amounts oharged onagricultural products exported tonon-member countries ,
therequirement todeduot these amounts ,from theexport refunds was
rescinded byCounoil Regulation No3259 of19December 1974 inoertain
cases forcertain Momber States .This hasmade itpossible torctsolvo
existing problems inthese Member States .
Other matters arebeing examined ,forexample therounding offoftho
conversion rate fortheagricultural unit ofacoount used for
calculating agricultural levies andmonetary compensatory amounts .
Thequestion ofhowtointerpret Artiole 4(3)ofCouncil RegulationNo1463/73 >fixing themethod ofcalculating thocorrecting factor
tob©applied tomonetary compensatory amounts ,isalso being examined .
Thedifficulties enoountered in1972 asregards thoentry ofrevenue
oolleoted forthefirst time onekim milk foranimal foedingotuffo ,
10JNoL
20JNoL349 ,
14ô.28December 1974 *
4June 1973 •

-13- XIX/372/75-E
olivooiland.starchproductshavoshownthatalistsottingouttho
ownresourcesisuseful.
Forinformation purposestheCommissionhasalreadysuppliedascomplete
apreliminarylistaswaspossible,settingouttheagriculturalleviesreferredtoinArtiole2(a)oftheDeoisionof21April1970*
(c)Canoncffore-majeure
Kcrp.borStatesmaybeexernptodfrommakingtheestablishedentitlements
avaiiablotothoCommissiononlyifthoyareabletoinvokeforcemajcuro.
TheburdenofproofasregardsforcemajcuroiaincumbentonthoKcmbor
Staxooonoornod.
-'jfarnocasoofforcemajeurehasbeenexplioitly .roportodforthoperiod
oovorodoyIhisreport.

-14- XIX/372/75-E
III.ASSOCIATION OFTHECOMMISSION WITH NATIONAL INSPECTIONS
Itiscertain that thereports forwhich provision ismade inArticles 5
and13(3 )ofRegulation No2/71cannot enable theCommission torecognize all
thedifficulties connected with theoperation ofthesystem ofownresources
and toeliminate such difficulties .
Clearly ,theCommission will continue togain most ofitsinformation
through being associated with national inspections ,asisitsrigit under
Articla 14oftheabove Regulation ,e.g. :
–theseoond indent ofArticle 14(2 )provides that theCommission maybe
associated ,atitsrequest ,with theinspections carried outbythe
Member States ;
-thefirst indent ofArticle 14(2 )provides ,furthermore ,that the
Commission mayasktheMember States ,inarequest stating thereasons
therefor ,tocarry outadditional inspections .
Atthebeginning of1974 "theCouncil ,acting unanimously onaproposal
from theCommission ,laid down theconditions which officials appointed
bytheCommission must satisfy when they carry outtheinspections
provided forinArtiole 14»inparticular with regard toprofessional
secrecy andtheprocedures whereby they exeroise their powers ofinvostigatio :
Intheabsence ofsuch rules ,theAdvisory Committee onOwnResources
agreed ,inDecember 197*1 »that theownresources inspections provided for
inRegulation No2/71would ,bywayofexperiment ,beorganized onthe
basis ofagentlemen 'sagreement between theMember States andtheCommission
1•Annoclation with thoinspections uptothe onrt of197?and
ii.nlfemontfttion ofapermanent procedure
While adraft regulation wasbeing prepared on"authorized officials ",
determining thepowers andobligations ofoffioials appointed bythe
Commission tobeassociated with ownresouroes inspections ,visits
were made forthis purpose in1971 and 1972 inthosixcountries of
theCommunity asoriginally constituted .
/

-15- XIX/372/75-E
During 1973 similar visits were organized inthenewMember States .They
enabled .Commission offioials tomake oontact with thenational departments
responsible forestablishing andmaking available ovmresources and to
familiarize themselves with thenational inspection procedures .Following
those visits ,documents comparing thedifferent inspection methods inthe
various Member States were presented totheAdvisory Committee onOvm
Resources toenable aninitial assessment tobemade ofthecompatibility
ofnational provisions inthis field with theCommunity texts andto
meet therequirements setoutinRegulation No2/71asregards information .
Aaalready indicated ,what wasinvolved here wasnottheassociation
pru^duro inthe strict sense ofthe term :thevisits were more in
Icoeping with thespirit ofArticle 5ofRegulation No2/71,which provides
that theCommission should besupplied with information onthenational
dopartmentn responsible forinspections .
Thoporiod between thepublication ofRegulation No2/71andtheendof
thofinanoial year 1973 therefore sawthegradual introduction ofthe
ownresources inspection system provided for .TheMember States andthe
Commission supplied each other with information ,buttheCommission
representatives wore nottruly associated with theMember States'
inspections .
However ,theimportance ofthis intermediate phase ofprior contacts in
thointroduction ofacompletely newcontrol mechanism should notbe
forgotten .Itshowed forexample :
-thodesire b.i'theMember States tofacilitate such inspection ;
-their willingness topaBs onrelevant information formerly reserved for
their national authorities andagencies .

-16- XIX/372/75-E
Thepurpose and .dates ofthevisits areshown inthefollowing table :
Member State Dates ofvisits Purpose ofvisits ^
1.BELGIUM
I(■])4October 1971
(2)17January 1972
(3)19–21 January 1972Brussels :Information
Customs duties –sugar levies –levies
I2.D^NKARE
!15-16 May1973 Copenhagen :Cu3tom3 duties
I3.CEMANY
\(1)30November-1 December 1971
(2)9-10 October 1972
(3)12-14 December 19732Hamburg :Customs duties
Giessen :Sugar levies
Bonn :making available ownresources
Dusseldorf :customs dutie ^and
agricultural levies
4»FRANCE 7-9June 1972 Marseilles-Paris :agricultural
levies
5.IRELAND 1-4 October 1973 Dublin :information visit
6.ITALY (1)9-11 March 1973
(2)18-19 Ootober 1972Naples :levies
Naples :customs duties
levies
making available ownresources
7.LUXEMBOURG (1)29September 1971
(2)20-21 Maroh 1972Luxembourg :information
Luxembourg :customs dutien ,lovies
8.NETHERLANDS 10and 22June 1972 Amsterdam :customs duties
Th(iHague :levios andsugar levies
,9.UNITED HNGD0M 25-28 September 1973 Lo.don :information visit
Γ
uivon anaguide ;thepurpooo ofth0viaita wasmain,' /toobtain infoimoti unor /perioral
^procodura forestablishing ,entry intheacoounto an
"lathis oaao ,agenuine inspection visit pursuant to
intheprooeao ofbeing approved *making available own roso'.u*cou .
Regulation No16^/74,w)i;;hwac

-17- XIX/372/75-B
Butthoactualconditionsofouchassociation ,aslaiddownin
Regulation(EEC)No165/7^(1)fwhichhassincebeenpublished,were
OBta.bli.ahodduringinopootionacarriodoutin1974*
Aosooiatodinspectionswillhenoeforthrelateto:
-thecorrectapplicationofthoproceduresforestablishing ,enteringin
theaccountorrookingavailableownresources ;
-theconformity /-ofsuchprocedureswiththoobligationsprovidedforin
thiafieldintheCommunitytexts.
2»Imrlomontationoftheinspection programmefor1974
ί...-Οΐί.ιηΐίτ,η.ϋνο αππρππίϋηητ
Apartfrompreliminaryvisitsmadebeforetheendofthofirsthalf
of1974withaviewtoinformingtheMemberStatesofthoCommission's
requirements asregardsownresourcesinspections ,thodopartmonto
oftheCommissionhadbeenaoaooiatod,asof31Dooombor1974,with
22visitsplannedinthisfieldinthoannualprogramme.
Theannualprogramme,whichwasadoptedasaresultofpreliminary
visit-;,labasedonasystemofrandomcheeksintendedtomakoit
possibleinthecourseofthefinancialyeartoinspoot,ineach
MemberStM.e,alltheelementsmakinguptheownreaoureosassignedto
thoBudgo;oftheCommunities ,allowancebeingmadeforthefactthat
theseir.opeotions mustgraduallybeappliedtothewholeofthe
cufitomsterritoryofoaohoountry.
Thegeneralprogrammeforthefinancialyear1974wascarriedout
fullyinalltheMemberStates,andeachtypeofresourcewasthe
subjectofatleastoneassociatedvisitineachMemberState,
Inmostoasesthovisitslastedfiveworkingdaysandtwoorthree
visitsworemadeineachoountry.
Itshouldalsobepointedoutthatoftho22visitsmade,10related
toouotomsduties,eighttoleviesandfourconcernedbothtypesof
rooouroen.Leviesonsugarworeinapeotodduringvisitsconcerning
agricultural levies.
(1)O.J.Ko.L20.24thJanuary1974.

-18- XIX/372/75-E
Thisinformationissetoutinthefollowingtable:
C0UNTRY Datesofvisits(all1974) Purposeofvisits
' '
'1.BELGIUM !
!
i24-23June
25-29November
9-13DecemberLcvies–cuntomsduties
Cuotomsduties
Sugarlevies
2,eekmakc j
I
! i3-5July
26-29NovemberCustomsduties
Levies,includingsugarlevies
i i
!5-,CEKMNY i13-17May
28-31OotoborCustomadutios-agricultural
levies
Customsduties
4.FRANCE 10–14June
9-13September
2-6DocemborAgrioultural leviea
Customaduties
Cuotomsduties
5.IRELAND
i17-21June
7-11OctoberCustomaduties
Agricultural lovioo
6.ITALY
! i
; I23-27SopTomber
9-13DeoemberAgricultural lovios
Cuotomsdutios
|7.LUXEMBOURG
!2-3May
2-6DecemberLevies-customsduties
CuEJtor.aduties-agricultural
levies
8.NETlQCRLAIi'jtS 22-26April
8-12July
4-6November
- iCustomadutieo
A^ricultural lovios
A¿Tioultural lovios
9.UKETEDKINGDOM I13-17May
9-13September
£6-29.NovemberCuatomcdutios
Agricultural leviuc
Customadutiou
1Thocontrailzin£andmakinjavailableofownrasourooBnuatboaddedforaaoh
Kombflratata.

-19- XIX/372/75-E
Level ofand arrangements for associated inspections
Thus farthere have been nodifferences intheinterpretation of
Regulation No165/74from onenational authority toanother .
Asaresuit :
-theCommission isassociated with inspections carried outbythe
Member States concerning theestablishment ,entry intheaccounts
andmaking available ofownresouroes ;
-national inspection operations areadapted ,where necessary ,tothe
inspeotion requirements provided forinCommunity rules .
Inthis oonnootion ,itshould befirmly stressed that theCommission
staff talcing part inassociated inspections have received thefullest
possible cooperation from thenational departments responsible for
carrying outtheinspections .
However ,because ofdifferences inthedegree ofadministrative
centralization ,association with national inspections takes avariety
offorms ,which canbecategorized asfollows :
(a)Association with^internal inspections madejb ^departments
Germany :foreaoh ownresouroes inspeotion ,theMinistry ofFinance
iQSv .-sjadepartmental order designating thedepartments responsible
forcarrying outtheinspections with which Commission officials
areassociated .Italso designates atleast oneoffioial inthe
oentral departments toorganize ,conduot andcoordinate these
inspections .
Ingeneral ,those inspections oonsist ofanexamination of
supporting documents t
-either with officials intheFederal preliminary audit office
(Vorprtifungatelle Bund ),attaohed toeach regional taxoffice ,

-20- XIX/372/75-E
whichisthendesignatedasthedepartmentresponsible .
Althoughtheseauditofficesareattachedtotheregional
taxofficestheyareoperationally answerabletotheFederal
AuditOffice;
-orincustomsofficesdesignatedbytheMinistryofFinance;
inthi3casethedepartmentresponsibleisthemaincustoms
office(llauptzollamt )towhichtheofficeinspectedreports.
InBolrium,Ireland,Italy,Iuxcmbourg andthoNetherlands xt
dependsontheresourcesofthevariousministriesastowhich
regionaldepartmentsareinspectod,butnosingledepartmentis
responsibleforassociatedinspection.Thus,collaboration in
theMemberStateshasbeenorganizedtoreflecttheneedsofthe
centralandregionaldepartmentsconoemed,soallowingi,ho
Commissionrepresentatives totakepartinallthoactualown
resourcesinspections ,evenifthesearetheprovinceof
differentauthorities .
Thus,particularly intheoaseoftheNetherlands ,tho
departmentsinspeoted,thocustomsoffioesandtheproduktschaapen
(producers'associations )areinspeotedbythonationaltax
offioooandtheMinistryofAgrioulture andFishorioorespectively .
Associationifi£h_inB£ootions_carriod_out_at thocentralofficcn
of_thQ_Mnistrios ooncornod
UnitedKingdom:thoExohoquorAuditDopartmenthas,forpractioal
raaaono,delegatedmuohofitsaotualpowersofinspoctiontotho
Ministriesconoemed.Aooordingly ,Commissionstaffaro
associatedwiththeinternalinapootionservicesofthoMinistries
ooncornod *

-21~ XIX/372/75-E
(c)Associationwithinternalinspectionsmade_b£centralauthorities
Dnnmark:TheDirectorate-General forCustomsisresponsiblefor
supervisingtheoperationofthedepartments andforauditing
thecustomsauthorities *accounts.Onedivisioninthe
Directorato-Genoral isresponsibleforcarryingoutthe
incpcitiono ,includingthoserelatingtoownresourcos,which
arethoresponsibility ofspecialauditorswhomakeon-the-spotvisits(travellingauditors).
Agroupissotupforeachassociatedinspectionvisit,acting
undoroninspootorfromtheDirectorate-General ;thisgroup
containsfcwornationalofficialsthanisusualforgroupsof
thiskind.TheofficialsappointedbytheCommissionare
associatedwiththisgroup.
Franno:TheMinistryofFinancecontainsaspecialisedinspection
bodydirectlyrosponsibletothoMinister(theInspectionG6n<Srale
dosFinancos),whichcaninspectthoworkofthepublicaccounting
officorsatanytimeduringthoprocessofimplementing thobudgot.
ThoInopootionG6n6raledosFinancosisinapositiontoinspect
allthodepartments concomedwithownresourcos.Aspocialgroup,
reportingtoan"Inspeotour G<Sn6ral"issetupforeachoftho
associatedinspections .Thosegroupsmakeunannouncedvisitsto
customsoffioosandotherdepartmentsresponsibleforestablishing
andmakingavailableownresources.
ThoCommissionstaffinvolvedhaveboonfullyassociatedwith
thov..;rkofthogroups.
(C)Compositionofthoinapeotionteams
Thefollowingoffioialshavotakenpartininspectionvisitswith
nationaloffioialss
-officialsfromtheCommission'sDirectorates-General ;
-AuditBoardofficials.

-22 .- XIX/372/73-E
(a)Officials from theCommission 'sDirectorates-General arecalled
upon totake part inassociated inspections aspart ofthe
internal coordination arrangements organized "bytheCommission .
(b)Under Article 87oftheFinancial Regulation of25April 1973 ,
theAudit Board may ,atitsrequest ,bepresent during inspections
carried outbytheCommission ,inorder toobtain anyinformation
which itrequires inorder tocarry outitstask under the
'treaties .
Accordingly ,ittook part ininspections carried outin1974 in
Belgium andItaly inthecapacity ofobserver .
Main purpose ofthe inspections
Asregards theestablishment ofownresources ,theinspections concerned
theapplication ofnational andCommunity rules likely toinfluence
thewayinwhich ownresources aredetermined ,andasregards entering
these resources intheaccounts andmaking them available ,they
concerned theway inwhich thetotal amount ofownresources is
established atlocal and national level .
(a)Establishment
Thevarious inspection teams carried outacomplete examination of
the application oftherules concerning establishment ,with
particular emphasis on:
-ns_regvirds_customs duties :
•inBelgium :theapplication ofpreferential arrangements ,the
management ofquotas ,theorigin andcirculation ofgoods ;
•inGermany :theapplicability ofcirculation certificates
andtariff classifications ;
•inPrance :"associated country "origin ;
•inItaly :origin ,generalized preferences ,association
agreements ;
•intheNetherlands andLuxembourg :inward processing arrangements ;
•intheUnited Kingdom andDenmark :valuo .
-ao^regarda lovios :
•mallMember States :monetary andaccession compensatory
amounts ;
•inGermany ,Franoe andtheNetherlands :export levies on
cereals ;

-23- XIX/372/75-E
.inDenmark :export levies oncereals andmilk products ;
.intheUnited Kingdom andIreland :export levies ;
.inItaly :export levies oncereals ,milk products ,beef and
veal ,wine ,macaroni ,spaghetti andsimilar products ;
.inBcigi.vun andLuxembourg :specific cases selected atrandom .
-asrvrwr Assu/carlevies :
.bookkeeping cheoks onproduction levies (basic quotas and
mcocimum quotas );
.chocks onlevies inrespect ofstorage coots (monthly returns
byproducers ).
Entering own rcnourcefi into the accounts and makin.r thorn available
Theinspection teams carried outanexamination oftheconformity
ofarrangements forcentralizing ownresources established with tho
Community provisions onthomatter ,andinspocted inparticular :
•inBolgiumi theway inwhioh monthly rocovery statement
Wo58Aisdrawn upforthoAntwerp Customs Offioe ,
andthoway inwhioh monthly summary statement
Wo61Aisdrawn upforthewhole ofthoAntwerp
Customs Directorate :
.inDenmark : thoway inwhich themonthly return isdrawn upin
aoustoms offico ,andthoaccounts kept inthe
Central Collecting Offico (TCO);acomparison
between themonthly returns sent tothaCoraission
(Art.6(2)ofRegulation Wo2/71)andthoaccounts
kept bytheMinistry ofFinance (Art .6(1))cmda
comparison between themonthly returns andtho
aooount attheDanish National Bank (Art .7(0)?
•inGermany 1
•inFrance :
»inItaly :theway inwhich thocomposition ofov.nresources
eatablishod ischecked attheMinistry ofFinances ;
theway inwhich recovery statement Kou43 icdrawn
upfrom the collection statements v.-here accounts
arekept bymeans ofelectric accounting machines ;
thewayinwhich monthly recovery statement Hok66
isdrawn upandtheprocedure forcentralizing
revenue bymeans ofelectric accounting machines ;

-24- XIX/372/75-S
inLuxembourg :thewayinwhichmonthlystatementsaredrawn
upandthecentralization procedureinthe
customsdirectorate ;
mthe
;.£'ûerlands:theaccuracy,asfarastheofficesinspected
areconcerned,ofmonthlyreturnsconcerning
customsdutiesestablished andcustomsduties
actuallyreceived(accountingreturnlib94);
intheUnited
Kingdoinand
Ireland:acomparison wasmadebetweenmontnlyreturns
senttotheCommission (Art.6(2)ofRegulation
No2/71)andtheaccountheldattheTreasury
(Art.6(1))andasubsequentspotcheckonthis
accountincludingthesupportingdocumentsin
thedepartments concerned.
TrieCommissionstafffoundthatarrangements variedfromoneState
toanotherasregardsthewayinwhichthenettotalamountofown
resourcestobepaidovertotheCommunitiesisestablishedafter
deductionofanynewestablished entitlements .Tholattermaybo
deducted: 1
-atanintermediary stageinthecentralization process,before
thomonthlyreturnsareestablished ;
■onacentralizedbasis,byamendingthecentralized groc3amount,
IV.APOTEI-ENT 0?THEOPERATION OPTHEINSPECTION ARRANOECTTTS
Itmaybeconcludedingeneralthatthesystemofownresourcesinspections ,
providedforimplicitlyintheDecisionof?1April197^or.dexplicitlyin
RegulationsNos2/71&nd165/74?wassetup.between1971unu1973or;d
reacheditsfinaloperatingformduringtho1974financialyear.
ThoMemberStatesfulfilledtheirobligatio
informingthoCommissionandassociatingit
nationalownresourcesinspections .
Thesegeneralobservationsshould,however,
remarks;>hsarisingfromthoootextsby
;pauthorisedofficialsidUh
boqualifiedbytwosotsof
«■relatingtothoimprovementofexistingInspectionprooedurec,sincefulluaowaonotmadeoftheprovisionsalreadyinforce:
–oonoornmgproposalstoamendexistingprovisionsinthematter.

-25 XIX/372/75-2
1•Preliminary results ofassociated inspections carried out in1974
Theaim ofthis report istoevaluate ,after afull year ofoperations ,the
eutablishment ofasystem ofinspections inwhich theCommission is
associated ,andanexamination oftheactual results ofinspections may
therefore seem both ofsecondary importance andlimited invalue .
However ,thefirst andnotunimportant result ofthese operations wasthe
establishment of .asatisfactory system forcollaborating with thenational
admini strati on;).
Also ,inconnection with thefinancial year 1974 »thestudy oftwenty-two
reports written bytheCommission 'sdepartments ,augmented bycomments from
theMember Stato3 ,brought tolight anumber ofdifficulties inconnection
with recording ,entering intheaccounts andmaking available ofown
reiourcoc ,o.g ,i
-:;o-.ocustoms offices didnotretain commercial invoices ,whioh meant that
itwas notpossible toascertain whether thedeclarations forcustoms
purpoooo andthedeolarod headings forgoods were correct ;
-income Member States there was nobreakdown available ofthelump-num
taxoa applicable to"small consignment s"intheform ofoccasional imports
addroesed toindividuals and togoods carried inthebaggage oftravellers ;
ouch taxoo aremade upofcustoms duties andnational taxes ;
-atlocal level some ownresources were incorreotly booked ;
-como monetary compensatory amounts connected with transactions completed
after theCommunity regulation onthose amounts came into force were
entered inthe aooounts under own resouroes .
Theoo problems have already been resolved bymoans ofappropriate regulations
orthrough joint meetings between theCommission 'sdepartments andthose of
the Member State concerned *
Amore detailed analysis ofinspection results inafuture report covering a
longor period oould prove useful .

-26- XIX/372/75-E
2.Information supplied totheCommission "bythe I'ember States ,inparticular
undor Artiole aA,5and13ofRegulation Nop/71
Cooperation asregards information supplied bytheMember States concerning
theoperation oftheownresources system hasbeen satisfactory over the
four years inwhich theDecision of21April 1970 hasbeen inoperation
andtheBudget hascome tobefinanced from theCommunity 'sownresources .
Thehalf-yearly andyearly reports onthis system were forwarded each year ,
butnotalways bythedates laid down inRegulation No2/71.TheCommission
for itspart didnotrigidly apply theprovisions ofArtiole 4on
information concerning thedesignations ofthedepartments oragencies
responsible forestablishing ownresources ,andconcerning thegeneral
provisions laid down bylaw ,regulation oradministrative action orrelating
toaccounting procedure asregards theestablishment ofownresources and
their boing made available .Nevertheless ,during thecontacts prior tothe
organisation ofinspection visits andalEO when these inspections were being
carriod out ,theMember States provided these items ofinformation whenever
this wan requested .
Theabove romarks donot ,however ,preclude certain reservations concerning
this collaboration ,since thehalf-yearly ajidannual reports forwarded by
thoMember States were often toosketchy ,theinformation provided being
vague andthostatistical data often difficult tointerpret outsido the
national context inwhioh they were drawn up.
Furthermore ,theCommission wasnotalways informed ofamendments tonational
rogulati nswhich hadabearing ontheownresources system .Itwould be
decirablo infuture fortheinformation whioh theCommission mayroquoct
onthedepartments oragencies responsible forestablishing ovmresources
tobegiven inamore systematic fashion ,sothat theCommission oanmake
fuller uoooftheright aooorded toitunder Artiole 4ofRegulation No2/71•
Association with national inspection measures :Article 1.4of
Reflation No2/71
TheCommission hasalready expressed inthis report itssatisfaction with
thewayinwhioh itsassociation with national inspection moaaureo was
carried out .

-27- XIX/372/75-E
Indeeditwaspossiblenotonlytoobtainthefullcollaboration ofthe
nationalauthoritiesduringeachvisit,butalsotoorganizethe
incpectionswithinafinancialyear,bysettingoutinageneralprogramme
thepointsorproblemsofmootinteresttotheCommission ,thusincreasing
theeffectiveness oftheseassociatedinspections .Thiscollaboration
chouldbeevenfurtherstrengthened sothattheinspections canbe
organizedincruchawayastoensuremaximumharmonization ofthe
programmes .
?ncsolutionadoptedinseveralMemberStatesofentrustingthecoordination
ofr-r.aociatedinspectionstoasingledepartmentseemstohavegiventhe
bci»results.
TheroleofthoAdvisoryCommitteeonOwnResources
ThoAdvisoryCommitteehasmetregularlysince1971atalmostquarterly
intervals,thusallowingthoMemberStates'delegations andtheCommission
tooxprejstheirpointofviewonthevariousquestionsraisedbythe
implementation oftheownresourcessystemandassociatedinspections.
Nevertheless ,itsroleasanadvisorybodyhasperhapsnotbeenfully
exploited.
Itsactivitieshavebeendirectedparticularly towardsexchangesof
information o:thevariousaspectsofthe-monitoringofestimatesofbudget
implementation withregardtorevenue.Itwillbepossibleinfutureforittostrengthenitsroleofcoordinating inspections ,bystudyingreports
oninspectionvinitscarriedouttogetherwiththenationalauthorities
andbyconsidering whatactionmightbetakeninconnectionwiththo
commentscontainedinthoBereports.
Fromthepraoticalpointofviewalone,thesereports(20to25ayear)
wouldsupplyamplemattorforconsideration andwouldyieldagreatdeal
ofinformation .
Inaddition,asfarasbudgetaryandmultiannualforcecu,laarecoRCcrr.fxl,
thosettingupofaneconomicandstatistical rrdb~co:r,!riitteo shouldcrvablc
thoAdvisoryCommittoetotakeeffectiveactionroyyirdiiv;bothforcjc.-irrto
andthomonitoringofownresourcesinmaoro-oconomic tonr.o;tholatter
willassumemajorimpo;,tanoeoncerevenuefromVATformspartofthoown
rosouroea.

-2#- XIX/372/75-E
5•Proposed inspection visits for1975
Thefollowing table oonta.ini.nff theprogramme ofinspection vieito
planned for 1975 andadopted with theagreement oftheMember States
isappended forinformation .
MEMBER STATE Date Subject ofinspection
1.BELGIUM 8-10 April
(2)14-18 April
(3)26-29 May
5-6MayLevies
Customs duties
Levies onsugar -
Making available
2.DENMARK (1)7-11 April
(2)25-29 August
(3)3-4November
5-7NovemberCustoms duties
Customs duties
Levies onsugar
Agricultural levios
3.GERMANY(1)14-18 April(2) 2-6June
(3)20-24 OctoberCustoms duties -Lcvieo
Customs duties -Levies
Customs dutios
4.PRANCE (1)10-14 March
(2)26-30 May
(3)17-21 NovemberCustoms duties
Customs duties
Levies -entry inthe
aocounts andmaking
available
5.IRELAND (1j18-21 March
(2)22-26 SeptemberCustoms duties
Export levies andcustoms
duties
6.ITALY (1)15-18 April
(2)7-11July
(3J 6–10 OctoberLevies onsugar -
establishment andmaking
available ofown resources
Levies j
Customs duties
Establishment andentry in
the accounts
7.LUXEMBOURG (1)5-7Kay
(2) 1-5DeoemberCustoms duties and levies
Entry intheaccounts and
making available ofown
ror'ourcon
8.NETHERLANDS(.1)24-28 February
(2) 2-6June
(3)27-31 OctoberCustoms dutios
Making available ofown
rosouroos
Lovies -Sugar
9.UNITED
HNGD0M(1)27-31 January
(2)27-30 Kay
(3)10-14 NovemberCustoms duties
Entry intheaccounts and
making available ofown
resources -export levies
Customs duties

-29- ΏΧ/372/75-Ξ
Proposalstoamendexistingprovisions
Ifsuchproposalsareneededtheyshouldstemfromananalysiscarried
outbytheCommission ,thoughthepossibilityofaninitiativebythe
MemberStatesintheAdvisoryCommitteeonOvmResourcesshouldnot
boruledout.However,whatwehavelearnedsofaronthetsubjectof
inspections overashortperioddoesnotallowustomakeafinal
assessmentoftheexistingsystemortoproposeanyamendments.Should
theneedarisetheCommissionwillmakesuchproposals.
Nevertheless ,anumberofobservations canbemadeatthisjunctureas
foodforthoughtonpossibleproposalstoamendexistingprovisions.
Firstly,itisdifficultfortheCommissiondepartments toapply
Article4ofRegulation No2/71,whichauthorizestheCommissionto
requestinformation onrulesconcerning ownresourcesandanyadditional
documontsthatmightbenecessary.Itisnotalwayspossiblotobo
abreastofallthenewtextsandrulesadoptedbytheMemberStates
concerning ownresourceswithoutthepriorcollaboration ofnational
authorities .
Consequently ,itwouldbepreferableforMemberStatestosendsuch
documontstotheCommissionontheirowninitiative ,andforthe
Commissiontoreservetherighttoaskforadditionalinformation .
ThetoxtoftheRegulationwouldhavetoberevisedtotokothisinto
account.
Socondly,trendsincustomsprocedurewillmakeitincreasingly
nooossaryforauditstobecarriedoutonthepromisosofthepersons
liabletopayduty.Itisthereforeimportantthattheimplementation
oftheprovisionsofArticle3(c)ofRegulationNo165/74shouldbointorpre -'4inasufficiently broadfashiontoalloweffective
associationwithnationalinspections.Subsequently ,ifnecessary,
thetextshouldbeamendedinaccordancewiththorequirementsrevealed
byexperienceinthisarea.
Lastly,itisolearthattheinspectionarrangementsinforceatprosontwillhavetobesupplemented bynewprovisionswhennowov:nre-sources
derivingfromVATareassignedtotheCommunities.Althoughthese
provisionswillhavetotakeintoaccountthofoaturosofthosenow
ovmresouroeo,theymustalsocomplywithoriteriaalreadyadoptedfortheinspectionofexistingownresources.

C>3R250C3C3S FAISOVER,1971-74
ItyiSSGOHT OFG>rjE350DHC3S |Belpiuia GorranyI_ ._..L. !
jPrance IItalyjLuxeabourg .r ■■1 1■■■" »i■■
:Netherlands Denmark
► •I'l.rslaïaà I
i I
t........ .!|United
KingàomCoisrunity|
1971
Casionsdsties{1CCÇ)
Castossdéliespailover
Agricaltïjral levies170729StC.CZ ?5>512 5»553H^J5.«j3»«75 *iio.jn.îî 25315*7*7.3?I
J
*I87$»M
•-Î75O773.53
<7!s:933.25
52e" 1ZTJci7!Í:,«[ ;49«77133.2$
. «
j3:3.»«-.-SjnzTA!?•-*4».JÎ*;*>£rr«„uI1S«;MI.Ï2
j1H5>!,r3
Ié5*1*675.«j
[117J*i392,6VI
!1y\« Ij5Z2}:j
1*0*\arr.70
ie*>nR*.Y*
}t.^x jI0219«122.C4|I^ï!!5-;«.<*!IJ*JC-»Ks-|171\jiI«9.7Ï II211î4-C.30{li?WCS7.COji- !i- il1«iciî:n.»J
i222
Custoasduties(lO0£)
Costocsdutiespaidover.
Agricultural leviesSnrirlevies1711ÏJ972.72 7ÎJ935<5.33K7Ï7 J3517933*5.M\*>7S«?.-230JOi5*e,:9 J.CLL*J0.7S4.1J
«7133<35.7%
52727(9S.1»
îiiwtviosoo55«.50
133327!ZSm2Z
%7C«?ZZCX*53".«
599C2931.04
f??;?.•<5îiw.ï*I
235ÎMW.»
t7!S751,BkJ27C1íb»>2
U473.3215$2477CÎ.3«
113-7®!If7.0%
*ec*.vS*a.»4f57JUC;7,M
<17Ï/J
1*1**«.VI"'"153353*£!.«I t i
«213to51%.22J>£34715^.22}3753333".*0 ||27V>337.7*|235Cfi*?££.JSj !'I
MI' l
CustoESduties(1ûC£) i
Cnstossd:rtiespaidover j
A^ricultoal levies !
^^iraT1*>vi |2C5*2735Ï.CS ]424M.Ç*211«222ÏÎ.4»3?i1*3227.2* 3W2*i.J0 2S*33»W,6J IP?r.î32i.ai
Wî«2***.091I
I12*CJ3 10«3i*I7>*.H
W£33jtco525275.12i«ilir.Ty.yj241657i:!.:* |* !
22ITS273.7*j1ÍK¿772Xi.C>,%3j;!JU.Uj130475353.12 j*Í'-C**1.42'2**V«C*,*0I4**?• 1"4j«•*».«?I2*37J1?.J*j
jillILJ.TtI19Cii3S?.iJ j
«1310957.1»
»«**3?*■*-* I368>5.C«
1.171*37,1*
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-31-
Fipure1
FTnA1TCITTGTlfEBUDGETOFTHEEUROPEANCOiflflJNTTT^o
THROUGHOV.?:RH50URCK3.1971-75
thousandmillionu.a.
(curroritvalue)XIX/372/75-E
Aii
xix/255/75-e
6+3
;~f
i !!
1 !If ii6+3'(D:'
6+3Η
i
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I-J--•"1"'"'IlJilI
""*"1/"V"1^1//j^'jjIIj/''j'|||'jJ
j!j'l
1971 1972 1973 197'* 1975
mOwnroBourcGQ ,
(1)FayrnontuinuooordanoawithGNPsoale.
liliiThofifuroaueadarotakonfromthaCommunities 1rovonuoandoxponditure
jiooountB,withthooxoeptionoftha1975fiffur®whiohistokenfromtho
Budwot.

-32-XIX/372/75-s
II(ccntd )
xix/255/75-e
Figure 1compares thevolume oftheBudget with that ofownresources .
Current values were used todraw upthegraph .
Budget Own rer.ourcos
(million u.a.) (million u.a.)
1971 2289.5 1296.0 •
197£ 3074.4 1756.8
1973 4641.0 2496.5
1974 5038.2 3O67.8
1975* 6061.857 3902.0
OwnroBOurcos have "been paid overmaccordance with theDecision of
21April 1970 ,i.e. ,total revenue from agricultural levies andpart of
therevenue from customs duties ,rising progressively each year toreach
100/.in1975 .
From 1973 payments have "been made bythethree new Member States in
accordance wi'.h Articles 129and 130oftheAccession Treaty . 1
1975 Budget .

-33--
Fif'uro2
FINANCINGTliEBUDGETOFTHEEUROPEANCO?^U??ITI
BYCATEGORYOFREVENUE,1071-74
thousand ,millionu.a.
(currentvalue)XIX/372/75-E
m
XIX/255/75-2
O
aFCFC
Mi\m™
1971 1972 ..1973
Fincmoialcontributions andotherrevenue(F0)
/\A/\Su<;;arlovioa(SL)
A^rioulturallovioa(AL)
\Y\\Cuutomcduties(CD)197*+