6.2.87 Official Journal of the European Communities No C 29/5 
Proposal for a Council Regulation amending for the 12th time Regulation (EEC) No 1837/80 
on the common organization of the market in sheepmeat and goatmeat 
COM(87) 8 final 
(Submitted by the Commission to the Council on 19 January 1987) 
(87/C 29/06) 
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, 
Having regard to the opinion of the European Parlia­
ment, 
Having regard to the opinion of the Economic and 
Social Committee, 
Whereas Article 5 of Council Regulation (EEC) No 
1837/80 O, as last amended by Regulation (EEC) No 
..., made provision, with a view to compensating for the 
loss of revenue of producers in certain regions, for 
granting a premium payable per ewe; whereas the 
abovementioned provision, contrary to what is laid down 
for region 1, did not provide for the application in 
region 7 of the specific arrangements based on the 
granting under certain conditions of the premiums paid 
in region 2; whereas, because of the age and quality of 
the lambs being slaughtered, producers in region 7 are in 
a similar situation to those in region 1, who in addition 
have the benefit of the abovementioned specific 
arrangements; whereas however in region 7 the pro­
portion of producers meeting the conditions laid down 
for application of the specific arrangements is distinctly 
(') OJNoL 183, 16.7. 1980, p. 1. 
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, 
Having regard to the opinion of the European Parlia­
ment, higher than in region 1 and this is reflected in the level 
of the average market price; whereas consequently the 
system of calculating income loss laid down in Article 5 
of Regulation (EEC) No 1837/80 gives producers in 
region 7 greater compensation for their losses than 
producers in region 1; whereas it is appropriate to give 
producers in region 7 an increase to reflect the premiums 
given to producers in region 1; whereas Article 5 of 
Regulation (EEC) No 1837/80 should be amended 
accordingly, 
HAS ADOPTED THIS REGULATION: 
Article 1 
The following paragraph 5 a is hereby inserted in Article 
5 of Regulation (EEC) No 1837/80: 
'5a. However for the 1987 and 1988 marketing 
years the ewe premium calculated for region 7 shall 
be increased by half the difference between it and 
that paid in region 1 under the terms of paragraph 5, 
should the latter be higher.' 
Article 2 
This Regulation shall enter into force on the third day 
following that of 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. 
Whereas, pursuant to Article 8 of Council Regulation 
(EEC) No 729/70 of 21 April 1970 on the financing of 
the common agricultural policy (*), as last amended by 
Regulation (EEC) No 3796/85 (2), Member States take 
the measures necessary to satisfy themselves that 
transactions financed by the European Agricultural 
(«) OJ No L 94, 28. 4. 1970, p. 13. 
(2) OJ No L 362, 31. 12. 1985, p. 17. Proposal for a Council Regulation on the monitoring of the payment of the amounts granted on 
export of agricultural products 
COM(87) 9 final 
(Submitted by the Commission to the Council on 19 January 1987) 
(87/C 29/07) 
No C 29/6 Official Journal of the European Communities 6.2.87 
Guidance and Guarantee Fund (EAGGF) are actually 
carried out and are executed correctly, to prevent and 
deal with irregularities and to recover sums lost as a 
result of irregularities or negligence; 
Whereas in its special report on the system of payment 
of agricultural export refunds, dated 5 July 1985 ('), the 
Court of Auditors drew attention to a number of 
shortcomings in the monitoring of the payments of 
refunds in certain Member States; 
Whereas the report suggests that the system which, in 
principle, would afford the best safeguards without 
engendering administrative costs and economic 
constraints outweighting the prospective gains for the 
Community purse would be a system which combined 
measures to monitor movements of goods and measures 
to monitor the accounts; 
Whereas, in order to improve and harmonize the 
measures taken by the Member States, a Community 
monitoring system should be set up; 
Whereas such a system must be founded on physical spot 
checks of goods at the time of export, the scrutiny of the 
refund application files submitted by the paying agencies 
and ex post facto auditing of the accounts of the under­
takings concerned by the competent authorities; 
Whereas physical spot checks of goods must also be 
carried out on goods exported under a simplified 
procedure; 
Whereas the number of physical checks and laboratory 
tests must be increased in view of the importance of agri­
cultural refunds from the point of view of the 
Community budget; 
Whereas the existing laboratories in the Member States 
should be equipped with proper facilities capable of 
furnishing results of sufficient accuracy; 
Whereas the provisions of Council Directive 77/435/ 
EEC (2) provide only for the inspection of a limited 
number of undertakings on the basis of spot checks of 
commercial and accounting documents; 
Whereas, to supplement the physical checks, the auditing 
of accounts should, in principle, be conducted ex post 
facto in all undertakings which have received refunds 
and/or other amounts in respect of export transactions 
totalling more than 50 000 ECU, 
HAS ADOPTED THIS REGULATION: 
Article 1 
1. This Regulation concerns the procedures for 
verifying that proper operations conferring entitlement to 
(') OJNoC215, 26. 8. 1985, p. 1. 
O OJNoL 172, 12.7. 1977, p. 17. the payment of refunds on exports of goods and all other 
amounts in respect of export transactions have actually 
been carried out and have been executed correctly. 
These procedures shall include the obligation for 
Member States to carry out: 
(a) physical checks on goods, on the basis of documents 
submitted in support of the export declaration, 
before authorization is given for the goods in 
question to be exported; and 
(b) scrutiny of the documents in the refund application 
file; and 
(c) ex post facto auditing of the commercial documents 
of the beneficiaries, hereinafter referred to as the 
'undertakings'. 
2. For the purposes of this Regulation, the term 
'goods' means products in respect of which the amounts 
referred to in paragraph 1 are paid in accordance with 
Community provisions adopted within the framework of 
the common agricultural policy. 
Article 2 
1. Without prejudice to any specific provisions which 
require more extensive checks, the physical checks 
referred to in Article 1 must take the form of spot checks 
conducted frequently and without prior warning. In all 
cases spot checks must relate to a representative sample 
of not less than 5 % of the export declarations in respect 
of which applications have been submitted for the 
amounts specified in Article 1(1). 
2. In cases where ordinary visual inspection fails to 
establish that the goods correspond to the description 
given in the refunds nomenclature, and where classi­
fication of the goods requires very precise information 
about the ingredients thereof, the customs authorities 
shall verify the description by submitting the goods for 
analysis by laboratories specially equipped for the 
purpose. 
3. The checks referred to in paragraphs 1 and 2 shall 
be carried out without prejudice to any measures which 
the customs authorities may take to ensure that the 
goods leave the customs territory in the same state as 
when the export authorization was granted. 
Article 3 
Paying agencies shall scrutinize, on the basis of the 
refund application files and other available information, 
all the evidence in these files adduced to justify the 
payment of the refunds in question. 
Article 4 
1. The competent authorities of the Member States 
shall, on the basis of the commercial documents of the 
undertakings concerned, scrutinize all the external 
trading activities of such undertakings which might be 
directly or indirectly linked with the transactions 
conferring entitlement to the amounts referred to in 
Article 1 (1). 
6.2.87 Official Journal of the European Communities No C 29/7 
2. The scrutiny referred to in paragraph 1 shall 
include at least all undertakings which have received 
amounts totalling more than 50 000 ECU in a calendar 
year. It shall be carried out within three years after the 
year of payment of the amounts in question. 
3. Undertakings whose transactions have been 
scrutinized pursuant to Directive 77/435/EEC shall not 
normally be subjected to the controls provided for in this 
Regulation in respect of the same period of time. 
Article 5 
Member States shall take steps to coordinate the controls 
imposed on individual undertakings ensuring that the 
verifications provided for in Article 2 are conducted on 
the same occasion as those provided for in Articles 3 and 
4. Such controls shall be carried out, in particular in 
cases of suspected fraud, on the initiative or at the 
request of the customs authorities making the physical 
checks or the competent authorities scrutinizing the 
refund applications or auditing the accounts ex post facto. Article 6 
Articles 1 (2), 2 (3), and 3 to 9 of Directive 77/435/EEC 
shall apply mutatis mutandis. 
Article 7 
Any provisions required for the application of this Regu­
lation shall be adopted in accordance with the procedure 
laid down in Article 26 of Council Regulation (EEC) 
No 2727/75 (') or, as appropriate, the corresponding 
articles of the other Regulations on the common organi­
zation of markets. 
Article 8 
This Regulation shall enter into force on the day of 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. 
(') OJNoL281, 1. 11. 1975, p. 1.