Council Regulation (EC, Euratom) No 1150/2000 of 22 May 2000 implementing Decision 94/728/EC, Euratom on the system of the Communities' own resources
Date: 2000-05-22
Institutions: Council of the European Union
Subjects: Member States' contribution, VAT resource, financial control, fixing of prices, fraud

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I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC, EURATOM) No 1150/2000

of 22 May 2000

implementing Decision 94/728/EC, Euratom on the system of the Communities' own resources

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Article 279 thereof,

Having regard to the Treaty establishing the European Atomic
Energy Community, and in particular Article 183 thereof,

Having regard to Council Decision 94/728/EC, Euratom of 31
October 1994, on the system of
the Communities' own
resources (1), and particularly Article 8(2) thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament (2),

Having regard to the opinion of the Court of Auditors (3),

Whereas:

(1)

(2)

(3)

1989,

Council Regulation (EEC, Euratom) No 1552/89 of 29
May
88/376/EEC,
implementing Decision
Euratom on the system of
the Communities' own
resources (4) has been frequently and substantially
amended (5). For reasons of clarity and rationality the
said Regulation should therefore be codified.

The Community must have the own resources referred
to in Article 2 of Decision 94/728/EC, Euratom available
in the best possible conditions and accordingly arrange-
ments must be laid down for the States to provide the
Commission with the own resources allocated to the
Communities.

Traditional own resources are levied by the Member
States in accordance with laws, regulations and adminis-
trative provisions that are, where necessary, adapted to
regulations. The
the
Commission must monitor such adaptation and, where
necessary, make proposals.

requirements of Community

(1) OJ L 293, 12.11.1994, p. 9. Decision replacing Decision No 88/

376/EC, Euratom (OJ L 185, 15.7.1988, p. 24).

(2) Opinion delivered on 18 January 2000 (not yet published in the

Official Journal).

(3) OJ C 145, 9.5.1998, p. 1.
(4) OJ L 155, 7.6.1989, p. 1. Regulation as last amended by Regulation

(Euratom, EC) No 1355/96 (OJ L 175, 13.7.1996, p. 3).

(5) See Annex, Part B.

(4)

(5)

(6)

(7)

(8)

(9)

The Council and the representatives of the Governments
the Member States, meeting within the Council,
of
adopted a resolution on 13 November 1991 on the
protection
the
financial
of
Community (6).

interests

the

of

The concept of establishment must be defined in respect
of the own resources and detailed rules must be laid
down for satisfying the obligation to establish the own
referred to in Article 2(1)(a) and (b) of
resources
Decision 94/728/EC, Euratom.

For own resources deriving from sugar levies, which
need to be recovered in the budget year corresponding
to the marketing year to which the expenditure relates,
provision should be made for the Member States to
make such levies available to the Commission during the
budget year in which they are established.

The transparency of the own resources system should be
improved and more information supplied to the budg-
etary authority.

The Member States must keep at the disposal of the
Commission and, where necessary, forward to it the
documents and information needed to allow it to exer-
cise the power conferred upon it as regards the Commu-
nities' own resources.

The national authorities responsible for the collection of
own resources must be able to produce to the Commis-
sion at all times the documents substantiating the own
resources collected.

(10)

The arrangements whereby the Member States report to
the Commission, should make it possible for the latter
to monitor Member States action to recover own
resources, in particular in cases of fraud and irregulari-
ties.

(6) OJ C 328, 17.12.1991, p. 1.

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(11)

Separate accounts should be kept for entitlements which
have not been recovered. These accounts and the
submission of a quarterly statement of such accounts
should enable the Commission to monitor more closely
the action taken by Member States to collect own
resources, and particularly those compromised by fraud
or irregularities.

(12) A time limit should be laid down for relations between
Member States and the Commission, since new entitle-
ments established by Member States in respect of earlier
years are deemed to be establishments for the current
year.

Provision should be made, as regards the own resources
accruing from value added tax, hereinafter called ‘VAT
resources’, referred to in Article 2(1)(c) of Decision 94/
728/EC, Euratom, for Member States to make available
to the Community,
in the form of constant monthly
twelfths, the own resources entered in the budget and
subsequently to adjust the amounts made available in
accordance with the actual base of VAT resources as
soon as it is fully known.

This procedure is also to apply to the additional resource
referred to in Article 2(1)(d) of the said Decision, herein-
after referred to as ‘the additional resource’, created in
accordance with Council Directive 89/130/EEC, Euratom
of 13 February 1989 on the harmonization of
the
compilation of the gross national product at market
prices (1).

The own resources must be made available in the form
of an entry of the amounts due in an account opened
for this purpose in the name of the Commission with
the Treasury or with the body appointed by each
Member State. In order to restrict the movements of
funds to that which is necessary for the implementation
of the budget, the Community must confine itself to
drawing on the abovementioned accounts solely to
cover the Commission's cash requirements.

(18)

(19)

(20)

In order to ensure that the Community budget will be
financed in all circumstances, the procedure for making
available the contributions based on the gross national
product, hereinafter referred to as the ‘GNP financial
contributions’, referred to in Article 2(7) of Decision
88/376/EEC, Euratom should be laid down.

The balance to be carried forward to the following finan-
cial year should be defined.

The Member States should conduct
the checks and
enquiries relating to the establishment and making avail-
able of own resources. The Commission should exercise
its powers in accordance with this Regulation. The
powers of the Commission should be stipulated with
regard to the inspection measures on the additional
resource.

(21)

Close collaboration between Member States and the
Commission will
the
financial rules relating to own resources,

facilitate proper application of

HAS ADOPTED THIS REGULATION:

TITLE I

General provisions

Article 1

The Community's own resources provided for in Decision 94/
728/EC, Euratom, hereinafter referred to as ‘own resources’
shall be made available to the Commission and inspected as
specified in this Regulation, without prejudice to Regulation
(EEC, Euratom) No 1553/89 (4) and Directive 89/130/EEC,
Euratom.

Article 2

The payment of aid resulting from application of
Council Regulation (EEC) No 1765/92 of 30 June 1992
establishing a support system for producers of certain
arable crops (2) is mainly concentrated in the opening
months of the year; whereas the Commission must have
sufficient cash resources to make this payment.

For the purpose of applying this Regulation, the Commu-
1.
nity's entitlement to the own resources referred to in Article
2(1)(a) and (b) of Decision 94/728/EC, Euratom shall be estab-
lished as soon as the conditions provided for by the customs
regulations have been met concerning the entry of the entitle-
ment in the accounts and the notification of the debtor.

Council Decision 94/729/EC of 31 October 1994
concerning budgetary discipline (3) provides for the entry
in the general budget of the European Union of a reserve
relating to Community loans and loan guarantees to
non-member countries and in those countries a reserve
for emergency aid. Amendments need to be made to
cover the entry of the own resources corresponding to
these reserves.

2.
The date of the establishment referred to in paragraph 1
shall be the date of entry in the accounting ledgers provided for
by the customs regulations.

As regards the levies and other charges connected with the
common organisation of the sugar market, the date of the
establishment referred to in paragraph 1 shall be the date of
notification under the sugar regulations.

(1) OJ L 49, 21.2.1989, p. 26.
(2) OJ L 181, 1.7.1992, p. 12. Regulation replaced by Regulation (EC)

No 1251/1999 (OJ L 160, 26.6.1999, p. 1).

(3) OJ L 293, 12.11.1994, p. 14.

(4) Council Regulation (EEC, Euratom) No 1553/89 of 29 May 1989
on the definitive uniform arrangements for the collection of own
resources accruing from value added tax (OJ L 155, 7.6.1989, p. 9).
Regulation as amended by Regulation (EC, Euratom) No 1026/1999
(OJ L 126, 20.5.1999, p. 1).

(13)

(14)

(15)

(16)

(17)

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Should that notification not be explicitly provided for, the date
shall be the date of establishment by the Member States of the
amounts due by the debtors, where necessary by way of
advance payment or payment of balance.

3.
In disputed cases, the competent administrative authori-
ties shall be deemed, for the purposes of the establishment
referred to in paragraph 1, to be in a position to calculate the
amount of
later than when the first
administrative decision is taken notifying the debtor of the debt
or when judicial proceedings are brought if this occurs first.

the entitlement not

The date of the establishment referred to in paragraph 1 shall
be the date of the decision or of the calculation to be made
following
judicial
proceedings.

commencing of

abovementioned

the

Paragraph 1 shall apply when a notification must be

4.
corrected.

Article 3

Member States shall take all appropriate measures to ensure
that the supporting documents concerning the establishment
and making available of own resources are kept for at least
three calendar years, counting from the end of the year to
which these supporting documents refer.

The supporting documents relating to the statistical procedures
and bases referred to in Articles 4 and 5 of Directive 89/
130/EEC, Euratom shall be kept by the Member States until 30
September of the fourth year following the financial year in
question. The supporting documents relating to the VAT
resources base shall be kept for the same period.

If verification pursuant to Articles 18 and 19 of this Regulation
or Article 11 of Regulation (EEC, Euratom) No 1553/89 of the
supporting documents referred to in the first and second para-
graphs shows that a correction is required, they shall be kept
beyond the time limit provided for in the first paragraph for a
sufficient period to permit the correction to be made and
monitored.

Article 4

1.

Each Member State shall

inform the Commission:

(a) of the names of the departments or agencies responsible
for establishing, collecting, making available and control-
ling own resources and the basic provisions relating to the
role and operation of those departments and agencies;

(b) of the general provisions laid down by law, regulation or
administrative action and those relating to accounting
procedure concerning the establishment, collection, making
available and control by the Commission of own resources;

(c) of the precise title of all administrative and accounting
records in which are entered the established entitlements as
specified in Article 2, in particular those used for drawing
up the accounts provided for in Article 6.

The Commission shall be informed immediately of any change
in these names or provisions.

The Commission shall, at

2.
the other
Member States, pass on to them the information referred to in
paragraph 1.

the request of

Article 5

The rate referred to in Article 2(1)(d) of Decision 94/728/EC,
Euratom which shall be set within the budgetary procedure,
shall be calculated as a percentage of the sum of the forecast of
the gross national product, (hereinafter referred to as ‘GNP’) of
the Member States in such a manner that if fully covers that
part of the budget not financed from customs duties, agricul-
tural
levies, and other charges connected with the
common organisation of the market in the sugar sector, VAT
resources, financial contributions to supplementary research
and technological development programmes, other revenue
and, where appropriate, GNP financial contributions.

levies,

rate shall be expressed in the budget by a figure
That
containing as many decimal places as is necessary to fully
divide the GNP-based resource among the Member States.

TITLE II

Accounts for own resources

Article 6

Accounts for own resources shall be kept by the Treasury
1.
of each Member State or by the body appointed by each
Member State and broken down by type of resources.

2.
For own-resources accounting purposes, the month shall
end no earlier than 1 p.m. on the last working day of the
month during which establishment took place.

3.

(a) Entitlements established in accordance with Article 2
shall, subject to point (b) of this paragraph, be entered
in the accounts at the latest on the first working day
aftger the 19th day of the second month following the
month during which the entitlement was established.

(b) Established entitlements not entered in the accounts
referred to in point (a), because they have not yet been
recovered and no security has been provided shall be
shown in separate accounts within the period laid down
in point (a). Member States may adopt this procedure
where established entitlements for which security has
been provided have been challenged and might, upon
settlement of the disputes which have arisen, be subject
to change.

(c) VAT resources and the additional

shall,
however, be recorded in the accounts as specified in
point (a) as follows:

resources

— the twelfth referred to in Article 10(3) shall be
recorded on the first working day of each month,

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— the balances referred to in Article 10(4) and (7) and
the adjustments referred to in Article 10(6) and (8)
shall be recorded annually, except for the particular
adjustments referred to in the first indend of Article
10(6), which shall be recorded in the accounts on
the first working day of the month following agree-
ment between the Member State concerned and the
Commission.

(d) Established entitlements relating to levies and other
charges connected with the common organization of
the sugar market shall be entered in the accounts
referred to in point (a). If these entitlements are not then
recovered within the time limits set, the Member States
may correct the entry and, by way of exception, enter
the entitlements in the separate accounts.

Each Member State shall send the Commission, within

4.
the time limits specified in paragraph 3:

(a) a monthly statement of its accounts for the entitlements

referred to in point (a) of paragraph 3.

Together with these monthly statements the Member States
concerned shall provide details or statements of deductions
from own resources based on provisions relating to special-
status territories.

(b) a quarterly statement of the separate accounts referred to in

point (b) of paragraph 3.

for

Detailed rules
the monthly and quarterly statements
referred to in the first subparagraph and duly substantiated
amendments thereto shall be laid down by the Commission
after consulting the Committee referred to in Article 20. They
shall provide for any appropriate time limits for implementa-
tion.

5.
In the two months following the end of each quarter,
each Member State shall send the Commission a description of
cases of fraud and irregularities detected involving entitlements
of over EUR 10 000.

As far as possible, the Member State provide the following
details:

— type of

fraud and/or irregularity (designation, customs

procedure concerned),

— amount of own resources evaded, or their presumed order

of magnitude,

— goods involved (tariff heading, origin, place from which

they come),

— concise description of fraud mechanism,

— type of check that led to discovery of fraud and irregulari-

ties,

— national departments or agencies which detected the fraud

or irregularity,

— stage reached in procedure, including the stage of recovery,
with reference to the establishment if already made,
— reference of notification of case under Council Regulation

(EC) No 515/97 (1),

— if appropriate, the Member States involved,
— measures taken or envisaged to prevent the recurrence of

the case of fraud or irregularity already detected.

Together with each quarterly statement pursuant to the first
subparagraph, each Member State shall give details of the posi-
tion concerning cases of
fraud and irregularites already
reported to the Commission whose recovery, cancellation or
non-recovery was not indicated earlier.

For this purpose, each Member State shall indicate for each of
the cases referred to in the first subparagraph:

— the reference to the original communication,
— the balance to be recovered during the previous quarter,
— the date of establishment,
— the date of entry in the separate accounts provided for in

point (b) of paragraph 3,

— the amounts recovered during the quarter in question,
— rectifications of the base (corrections/cancellations) during

the quarter in question,

— amounts written off,
— stage of adminstrative and judicial procedure reached,
— balance to be recovered at

the end of

the quarter in

question.

Details of
the above descriptions and duly substantiated
amendments thereto shall be worked out by Commission after
consulting the Committee referred to in Article 20. They shall
provide for any appropriate time limits for implementation.

Article 7

1.
Each Member State shall draw up annually a summary
account of established entitlements shown in the accounts
referred to in of Article 6(3)(a) and shall send it to the Commis-
sion before 1 April of the year following the financial year in
question. A remark shall be added to explain any difference
between the total of the summary account and the sum of the
monthly statements sent in by the Member States from January
to December of the year in question. The Commission shall
check that the summary account tallies with the amounts made
available during the year;
it shall have two months after
receiving the summary accounts in which to make any obser-
vations to the Member State concerned.

2.
After 31 December of the third year following a given
year, no further corrections shall be made to the annual
summary account referred to in paragraph 1, except on points
notified before this date either by the Commission or by the
Member State concerned.

(1) Council Regulation (EC) No 515 of 13 March 1997 on mutual assi-
stance between the administrative authorities of the Member States
and cooperation between the latter and the Commission to ensure
the correct application of
the law on customs and agricultural
matters (OJ L 82, 22.3.1997, p. 1).

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Article 8

Corrections carried out under Article 2(4) shall be added to or
subtracted from the total amount of established entitlements.
They shall be recorded in the accounts as specified in Article
6(3)(a) and (b) and in the statements as specified in Article 6(4)
in accordance with the date of these corrections.

Corrections in respect of cases of
already notified to the Commission shall be singled out.

fraud and irregularities

TITLE III

Making available own resources

Article 9

1.
In accordance with the procedure laid down in Article
10, each Member State shall credit own resources to the
account opened in the name of
the Commission with its
Treasury or the body it has appointed.

This account shall be kept free of charge.

2.
The amounts credited shall be converted by the Commis-
sion and entered in its accounts in euro in accordance with
Regulation (Euratom, ECSC, EC) No 3418/93 (1).

Article 10

1.
After deduction of 10 % by way of collection costs in
accordance with Article 2(3) of Decision 94/728/EC, Euratom,
entry of the own resources referred to in Article 2(1)(a) and (b)
of that Decision shall be made at the latest on the first working
day following the 19th day of the second month following the
month during which the entitlement was established in accord-
ance with Article 2 of this Regulation.

However, for entitlements shown in separate accounts under
Article 6(3)(b) of the entry must be made at the latest on the
first working day following the 19th day of the second month
following the month in which the entitlements were recovered.

If necessary, Member States may be invited by the
2.
Commission to bring forward by one month the entering of
resources other than VAT resources and the additional resource
on the basis of the information available to them on the 15th
of the same month.

Each entry brought forward shall be adjusted the following
month when the entry mentioned in paragraph 1 is made. This
adjustment shall entail the negative entry of an amount equal
to that given in the entry brought forward.

3.
VAT resources, the additional resource — excluding an
amount corresponding to the EAGGF (European Agricultural
Guidance and Guarantee Fund) monetary reserve, to the reserve

(1) Commission Regulation (Euratom, ECSC, EC) No 3418/93 of 9
December 1993 laying down detailed rules for the implementation
of certain provisions of the Financial Regulation of 21 December
1977 (OJ L 315, 16.12.1993, p. 1). Regulation as last amended
by Decision 1999/537/EC, ECSC, Euratom (OJ L 206, 5.8.1999,
p. 24).

relating to loans and loan guarantees and to the reserve for
emergency aid — and, where appropriate, GNP financial
contributions shall be credited on the first working day of each
month, the amounts being one-twelfth of the relevant totals in
the budget, converted into national currencies at the rates of
exchange of the last day of quotation of the calendar year
preceding the budget year, as published in the Official Journal of
‘C’ Series.
the European Communities,

For the specific needs of paying EAGGF Gurantee Section
expenditure, pursuant to Regulation (EEC) No 1765/92 and
depending on the Community's cash position, Member States
may be invited by the Commission to bring forward by one or
two months in the first quarter of the financial year the entry
of one-twelfth or a fraction of one-twelfth of the amounts in
the budget for VAT resources and/or the additional resource,
but excluding own resources to cover the EAGGF monetary
reserve, the reserve for loan guarantees and the reserve for
emergency aid.

After the first quarter, the monthly entry requested may not
exceed one-twelfth of VAT and GNP-based resources, while
remaining within the limit of the amounts entered in the
budget for that purpose.

The Commission shall notify the Member States thereof in
advance, no later than two weeks before the entry requested.

The eleventh subparagraph concerning the amount
to be
entered in January each year and the twelfth subparagraph
applicable if the budget has not been finally adopted before the
beginning of the financial year shall apply to these advance
entries.

The entry in respect of the EAGGF monetary reserve referred to
in Article 6 of Decision 94/728/EC, the reserve relating to
loans and loan guarantees and the emergency aid reserve
created by Decision 94/729/EC, shall be made on the first
working day of
the month following the charging to the
budget of the expenditure concerned and shall be limited to the
said expenditure if charging is effected before the 16th day of
the month. If such is not the case, the entry shall be made on
the first working day of the second month after charging.

By way of derogation from Article 6 of the Financial Regula-
tion of 21 December 1977 applicable to the general budget of
the European Communities (2), hereinafter referred to as ‘the
Financial Regulation’, these entries shall be taken into account
in the financial year to which they relate.

However, if the situation as regards the implementation of the
budget of the financial year is such that the entries relating to
the EAGGF monatary reserve and the reserve for emergency aid
are not necessary to achieve a balance between revenue and
the Commission shall decide to
expenditure for the year,
dispense with these entries or part of these entries.

(2) OJ L 356, 31.12.1977, p. 1. Regulation as last amended by Regula-
tion (EC, ECSC, Euratom) No 2673/1999 (OJ L 326, 18.12.1999,
p. 1).

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in the
Any change in the uniform rate of VAT resources,
correction granted to the United Kingdom and in its financing
referred to in Article 5 of Decision 94/728/EC, Euratom in the
rate of the additional resource and, where appropriate, in the
GNP financial contributions shall require the final adoption of
a supplementary or amending budget and shall give rise to
readjustements of the twelfths which have been entered since
the beginning of the financial year.

These readjustments shall be carried out when the first entry is
made following the final adoption of the amending or supple-
mentary budget if it is adopted before the 16th of the month.
Otherwise they shall be carried out when the second entry
following final adoption is made. By way of derogation from
Article 6 of the Financial Regulation, these readjustments shall
be entered in the accounts in respect of the financial year of the
supplementary of amending budget in question.

Calculation of the twelfths for January of each financial year
shall be based on the amounts provided for in the draft budget,
with the exception of the amounts for financing the EAGGF
monetary reserve, referred to in Article 78(3) of the ECSC
Treaty, Article 272(3) of the EC Treaty and Article 177(3) of
the EAEC Treaty and converted into national currencies at the
rates of exchange of the first day of quotation following 15
December of the calendar year preceding the budget year; the
adjustment shall be made with the entry for the following
month.

If the budget has not been finally adopted before the beginning
of the financial year, the Member States shall enter on the first
working day of each month, including January, one-twelfth of
the amount of VAT own resources, of the additional resource,
with the exception of the amounts for financing the EAGGF
monetary reserve, and, where appropriate, of the GNP financial
contributions entered in the last budget finally adopted; the
adjustment shall be made on the first due date following final
adoption of the budget if it is adopted before the 16th of the
month. Otherwise, the adjustment shall be made on the second
due date following final adoption of the budget.

Each Member State shall, on the basis of the annual
4.
statement on the VAT resources base provided for in Article
7(1) of Regulation (EEC, Euratom) No 1553/89, be debited
with an amount calculated from the information contained in
the said statement by applying the uniform rate adopted for the
previous financial year and credited with the 12 payments
made during that financial year. However each Member State's
VAT own resources base to which the above rate is applied
may not exceed the percentages determined by Article 2(1)(c)
of Decision 94/728/EC, Euratom as referred to in the first
sentence of paragraph 7 of this Article. The Commission shall
work out the balance and shall inform the Member States in
time for them to enter it in the account referred to in Article
9(1) of this Regulatoin on the first working day of December of
the same year.

budget between the latter and the GNP financial contributions.
For the calculation of these adjustments, the balances referred
to in paragraph 4 shall be converted into euro at the rates of
exchange applying on the first working day after 15 November
preceding the entries provided for in paragraph 4. For each
Member State concerned, the total of VAT balances shall be
adjusted by the ratio between the financial contributions
entered in the budget and the VAT resources. The Commission
shall communicate the results of this calculation to the Member
States which, during the previous financial year, paid GNP
financial contributions so that they can make a credit or debit
entry as appropriate in the account referred to in Article 9(1)
on the first working day of December of the same year.

6.
Any corrections to the VAT resources base under Article
9(1) of Regulation (EEC, Euratom) No 1553/89 shall give rise
for each Member State concerned whose base, allowing for
these corrections, does not exceed the percentages determined
by Article 2(1)(c) of Decision 94/728/EC, Euratom to the
following adjustments to the balance referred to in paragraph 4
of this Article:

— the corrections under the first subparagraph of Article 9(1)
of Regulation (EEC, Euratom) No 1553/89 made by 31 July
shall give rise to a general adjustment to be entered in the
account referred to in Article 9(1) of this Regulation on the
first working day of December of the same year. However a
particular adjustment may be entered before that date if the
Member State concerned and the Commission are in agree-
ment,

— where the measures which the Commission takes under the
second subparagraph of Article 9 (1) of Regulation (EEC,
Euratom) No 1553/89 to correct the base lead to an adjust-
ment of the entries in the account referred to in Article 9
(1) of this Regulation, that adjustment shall be made on the
date specified by the Commission pursuant to the said
measures.

The changes to GNP referred to in paragraph 8 of this Article
shall also give rise to an adjustment of the balance of any
Member State whose base, allowing for those corrections, is
capped at the percentages determined by Article 2(1)(c) of
Decision 94/728/EC, Euratom. The adjustments to be made to
the VAT balances by the first working day of December of each
year under the first suparagraph of this paragraph shall also
give rise to the calculation by the Commission of
further
adjustments to the GNP financial contributions. The exchange
rates to be employed in calculating these further adjustments
shall be those used for the initial calculation referred to in
paragraph 5.

The Commission shall
these
adjustments in time for them to enter them in the account
referred to in Article 9(1) on the first working day of December
of the same year.

inform the Member States of

5.
The Commission shall then calculate adjustments to the
financial contributions so as to restore, in the light of the actual
the original distribution in the
yield from VAT resources,

However, a particular adjustment may be entered at any time if
the Member State concerned and the Commission are in agree-
ment.

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On the basis of figures for aggregate GNP at market
7.
prices and its components from the preceding year, supplied by
the Member States in accordance with Article 3(2) of Directive
89/130/EEC, Euratom, each Member State shall be debited with
an amount calculated by applying to GNP the rate adopted for
the previous financial year, amended, where appropriate, in the
light of any use of the EAGGF monetary reserve, of the reserve
relating to loans and loan guarantees or of the reserve relating
to loans and loan guarantees or of the reserve for emergency
aid, and credited with the payments made during that previous
financial year. The Commission shall work out the balance and
shall inform the Member States in time for them to enter it in
the account referred to in Article 9(1) of this Regulation on the
first working day of December of the same year.

8.
Any changes to the GNP of previous financial years
pursuant to Article 3(2) of Directive 89/130/EEC, Euratom,
subject to Article 6 thereof, shall give rise for each Member
State concerned to an adjustment to the balance established
pursuant to paragraph 7. This adjustment shall be established
in the manner laid down in the first subparagraph of paragraph
6. The Commission shall inform the Member States of these
adjustments so that they can enter them in the account referred
to in Article 9(1) of this Regulation on the first working day of
December of the same year. After 30 September of the fourth
year following a given financial year, any changes to GNP shall
no longer be taken into account, except on points notified
within this time limit either by the Commission or by the
Member State.

9.
The operations referred to in paragraphs 4 to 8 constitute
modifications to revenue in respect of the financial year in
which they occur.

Article 11

Any delay in making the entry in the account referred to in
Article 9(1) shall give rise to the payment of interest by the
Member State concerned at the interest rate applicable on the
Member State's money market on the due date for short-term
public financing operations,
increased by two percentage
points. This rate shall be increased by 0,25 of a percentage
point for each month of delay. The increased rate shall be
applied to the entire period of delay.

TITLE IV

Management of cash resources

Article 12

The Commission shall draw on the sums credited to the
1.
accounts referred to in Article 9(1) to the extent necessary to
cover its cash resource requirements arising out of the imple-
mentation of the budget.

If the cash resource requirements are in excess of the
2.
assets of the accounts, the Commission may draw in excess of
the total of these assets subject to the availability of appropria-
tions in the budget and within the limit of the own resources
entered in the budget. In this event, it shall inform the Member
States in advance of any foreseeable excess requirements.

In the sole case of default under a loan contracted or
3.
guaranteed pursuant to Council regulations and decisions, in
circumstances in which the Commission cannot activate other
measures provided for by the financial arrangements applying
to these loans in time to ensure compliance with the Commu-
nity's legal obligations to the lenders, paragraphs 2 and 4 may
provisionally be applied, irrespective of the conditions in para-
in order to service the Community's debts.
graph 2,

The difference between the overall assets and the cash
4.
resource requirements shall be divided among the Member
States, as far as possible, in proportion to the estimated budget
revenue from each of them.

The Member States, or the body designated by them in
5.
accordance with Article 9(1), shall execute the Commission's
payment orders as quickly as possible, and within not more
than seven working days of
receipt, and shall send the
Commission a statement of account within not more than
seven working days of completing each transaction.

in the case of cash movement

However,
the
Member States shall execute the orders within the period
requested by the Commission.

transactions,

TITLE V

Procedure for the application of Article 2(7) of Decision
88/376/EEC, Euratom

Article 13

1.
This Article shall apply where it may be neccessary to
implement the provisional derogation provided for in Article
2(7) of Decision 88/376/EEC, Euratom.

2.
The GNP at market prices shall be calculated by the
Statistical Office of the European Communities, on the basis of
statistics prepared according to the European System of Inte-
grated Economic Accounts (ESA), and corresponding, for each
Member State, to the arithmetic mean of the first three years of
the five-year period preceding the financial year in respect of
which the provisions of Article 2(7) of Decision 88/376/EEC,
Euratom have been applied. No account shall be taken of any
revisions of statistical data made after the final adoption of the
budget.

3.
The GNP for each reference year shall be calculated in
terms of the euro on the basis of the average rate of the euro
for the year in question.

4.
For such time as the derogation provided for in Article
2(7) of Decision 88/376/EEC, Euratom applies to one or more
Member States, the Commission shall, in its preliminary draft
fix the percentage corresponding to the financial
budget,
contributions of
the
proportion of their GNP to the sum total of the GNPs of the
Member States, and shall determine the amount of that part of
the budget to be financed by VAT resources at the uniform rate
and by the GNP financial contributions.

those Member States on the basis of

These figures shall be approved in accordance with budgetary
procedure.

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Article 14

TITLE VII

The definition of GNP at market prices shall be that given

1.
in Articles 1 and 2 of Directive 89/130/EEC, Euratom.

2.
The figures to be used in calculating the precentage of the
GNP financial contributions shall be those supplied pursuant to
Article 3(2) of Directive 89/130/EEC, Euratom, and subject to
Article 6 thereof. In the absence of such figures the Statistical
shall use the data
Office of
available.

the European Communities

TITLE VI

Procedure for the application of Article 7 of Decision
94/728/EC, Euratom

Article 15

For the purpose of applying Article 7 of Decision 94/728/EC,
Euratom, the balance of a given financial year shall consist of
the difference between:

— all the revenue collected in respect of that financial year,

and

— the amount of payments made against appropriations for
that financial year increased by the amount of the appro-
priations for the same financial year carried over pursuant
to Articles 7(1) and 2(b) of the Financial Regulation.

This difference shall be increased or decreased on the one hand,
by the net amount of appropriations carried over
from
previous financial years which have been cancelled and, on the
other hand, by way of derogation from Article 5(1) of the
Financial Regulation, by:

— payments made in excess of non-differentiated appropria-
tions carried over from the previous financial year under
Article 7(1) of the Financial Regulation as a result of change
in euro rates,

and

— the balance resulting from exchange gains and losses during

the financial year.

Article 16

The Commission shall, before the end of October in each
financial year, make an estimate of the own resources collected
for the entire year, on the basis of the data at its disposal at
that time.

Any appreciable differences in relation to original estimates
may give rise to a letter of amendment to the preliminary draft
budget for the following financial year or a supplementary and
amending budget for the current financial year.

For the operations referred to in Article 10(4) to (8), the
amount of revenue set out
for the current
financial year may be increased or reduced, by means of an
amending budget, by the amount resulting from those opera-
tions.

in the budget

Provisions concerning inspection measures

Article 17

1. Member States shall take all requisite measures to ensure
that the amount corresponding to the entitlements established
under Article 2 are made available to the Commission as
specified in this Regulation.

2. Member States shall be free from the obligation to place
at the disposal of the Commission the amounts corresponding
to established entitlements soley if, for reasons of force majeure,
these amounts have not been collected. In addition, Member
States may disregard this obligation to make such amounts
available to the Commission in specific cases if, after thorough
assesment of all the relevant circumstances of the individual
case, it appears that recovery is impossible in the long term for
reasons which cannot be attributed to them. These cases must
be mentioned in the report provided for in paragraph 3 if the
amounts exceed EUR 10 000, converted into national currency
at the rate applying on the first working day of October of the
previous calendar year; this report must contain an indication
of the reasons why the Member State was unable to make
available the amounts in question. The Commission has six
months in which to forward, if appropriate, its comments to
the Member State concerned.

3. Member States shall inform the Commission, by means of
annual reports, of the details and results of their inspections
and of the overall data and questions of principle concerning
the most important problems arising out of the application of
this Regulation and,
in particular, matters in dispute. The
reports shall be sent to the Commission by 30 April of the year
following the financial year in question.

A specimen of the report and duly substantiated amendments
thereto shall be drawn up by the Commission after consulting
the Committee referred to in Article 20. Any appropriate time
limits for implementation shall be provided for.

By 30 June of the year following the financial year referred to
in the second sentence of paragraph 1 the Commission shall
send to the European Parliament and to the Council a summary
report on the notifications by the Member States under this
Article and Article 6(5).

Article 18

1. Member States shall conduct the checks and enquiries
concerning the establishment and the making available of the
own resources referred to in Article 2(1)(a) and (b) of Decision
94/728/EC, Euratom. The Commission shall exercise its powers
as specified in this Article.

2.

In pursuance of paragraph 1, Member States shall:

(a) carry out additional inspection measures at the Commis-
sion's request. In its request the Commission shall state the
reasons for the additional

inspection,

(b) associate the Commission, at its request, with the inspec-

tion measures which they carry out.

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Member States take all steps required to facilitate these inspec-
tion measures. Where the Commission is associated with these
measures, Member States
the
supporting documents referred to in Article 3.

shall place at

its disposal

TITLE VIII

Provisions relating to the Advisory Committee on the
Communities' Own Resources

In order to restrict additional
minimum:

inspection measures to the

Article 20

(a) the Commission may, in specific cases, request that certain

documents be forwarded to it;

(b) in the monthly statement of accounts referred to in Article
6(4), the amounts entered in the accounts which relate to
irregularities or delays in the establishment, entry in the
accounts and making available of own resources, discov-
ered during the inspections referred to above, must be
identified by means of appropriate notes.

3. Without prejudice to paragraphs 1 and 2, the Commis-
sion may itself carry out inspection measures on the spot. The
agents authorised by the Commission for such inspection
measures shall have access, in so far as the correct application
of this Regulation so requires, to the supporting documents
referred to in Article 3 and to any other appropriate document
connected with those supporting documents. In a duly substan-
tiated communication, the Commission shall give notice of this
inspection in good time to the Member State in which the
inspection measure is to take place. Agents of the Member
State concerned shall participate in such inspection measures.

The inspection measures referred to in paragraphs 1, 2

4.
and 3 shall not prejudice:

(a) the inspection measures undertaken by Member States in
accordance with their own provisions laid down by law,
regulation or administrative action;

(b) the measures provided for in Articles 246, 247, 248 and
276 of the EC Treaty and Articles 160a, 160b, 160c and
180b of the EAEC Treaty;

(c) the inspection arrangements made pursuant

to Article
279(c) of the EC Treaty and Article 183(c) of the EAEC
Treaty.

5.
The Commission shall report every three years to the
European Parliament and to the Council on the functioning of
the inspection arrangements.

1.
An Advisory Committee on the Communities' own
resources, hereinafter called the committee, is hereby set up.

2.
the
The committee shall consist of representatives of
Member States and of the Commission. Each Member State
shall be represented on the committee by not more than five
officials.

The chairman of the committee shall be a representative of the
Commission. The secretariat services for the committee shall be
provided by the Commission.

3.

The committee shall adopt its own rules of procedure.

Article 21

1.
The committee shall examine the questions raised by its
chairman on his initiative or at the request of the representative
of a Member State which concern the application of this Regu-
lation, especially as regards:

(a) the information and reports referred to in Articles 4(1)(b),

6, 7 and 17(3);

(b) the cases of force majeure referred to in Article 17(2);

(c) the inspection measures laid down in Article 18(2).

The committee shall also examine estimates of own resources.

At

the chairman,

the request of

2.
the committee shall
deliver its opinion within a time limit which the chairman may
lay down accordning to the urgency of the matter in hand, if
necessary by taking a vote. The opinion shall be recorded in
in addition, each Member State shall have the
the minutes;
right to ask to have its position recorded in these minutes. The
Commission shall take the utmost account of the opinion
delivered by the committee. It shall inform the committee of
the manner in which its opinion has been taken into account.

TITLE IX

Final provisions

Article 22

Article 19

Together with the Member State concerned, the Commission
shall each year inspect the aggregates provided for errors in
compilation, especially in cases nofified by the GNP manage-
ment committee. In doing so it may, in individual cases, also
examine calculations and basic statistics, apart from informa-
tion about individual companies or persons, where no proper
assessment would otherwise be possible. The Commission shall
respect national
legal provisions on the preservation of the
confidentiality of statistics.

Regulation (EEC, Euratom) No 1552/89 shall be repealed.

References to the said Regulation shall be construed as refer-
ences to this Regulation and should be read in accordance with
the correlation table set out in Part A of the Annex.

Article 23

This Regulation shall enter into force on the day of its publica-
tion in the Official Journal of the European Communities.

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This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 22 May 2000.

For the Council

The President

J. GAMA

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ANNEX

PART A

Correlation table

Regulation (EEC, Euratom) No 1552/89

This Regulation

Article 1

Article 2(1)

Article 2(1a)

Article 2(1b)

Article 2(2)

Article 3

Article 4

Article 5

Article 6(1)

Article 6(1a)

Article 6(2)(a)

Article 6(2)(b)

Article 6(2)(c)

Article 6(2)(d)

Article 1

Article 2(1)

Article 2(2)

Article 2(3)

Article 2(4)

Article 3

Article 4

Article 5

Article 6(1)

Article 6(2)

Article 6(3)(a)

Article 6(3)(b)

Article 6(3)(c)

Article 6(3)(d)

Article 6(3), point (a)

Article 6(4), first subparagraph, point (a)

Article 6(3), point (b), first subparagraph

Article 6(4), first subparagraph, point (b)

Article 6(3), point (b), second subparagraph

Article 6(4), second subparagraph

Article 6(4)

Article 7

Article 8

Article 9

Article 10

Article 11

Article 12

Article 13

Article 14

Article 15

Article 16

Article 17

Article 18(1)

Article 6(5)

Article 7

Article 8

Article 9

Article 10

Article 11

Article 12

Article 13

Article 14

Article 15

Article 16

Article 17

Article 18(1)

Article 18(2), first subparagraph, first indent

Article 18(2), first subparagraph, point (a)

Article 18(2), first subparagraph, second indent

Article 18(2), first subparagraph, point (b)

Article 18(2), second subparagraph

Article 18(2), third subparagraph

Article 18(2), second subparagraph

Article 18(2), third subparagraph

Article 18(3)

Article 18(4)

Article 18(5)

Article 19

Article 20

Article 21

Article 22

Article 23

—

—

—

Article 18(3)

Article 18(4)

Article 18(5)

Article 19

Article 20

Article 21

—

—

Article 22

Article 23

Annex

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PART B

Amending Regulations to Regulation (EEC, Euratom) No 1552/89

Council Regulation (Euratom, EC) No 3464/93 of 10 December 1993 (OJ L 317, 18.12.1993, p. 1).

Council Regulation (EC, Euratom) No 2729/94 of 31 October 1994 (OJ L 293, 12.11.1994, p. 5).

Council Regulation (Euratom, EC) No 1355/96 of 8 July 1996 (OJ L 175, 13.7.1996, p. 3).