WRITTEN QUESTION E-3221/03 by Christopher Heaton-Harris (PPE-DE) to the Commission. Financial Regulations and DG Development and Humanitarian Aid.
Date: 2003-10-31
Institutions: European Parliament, Provisional data
Subjects: European Commission, administration of the Institutions, audit, deadline for payment, financial regulation

C 88 E/638

Official Journal of the European Union

EN

8.4.2004

Answer given by Mr Verheugen on behalf of the Commission

(18 December 2003)

The Honourable Member raises the issue of the application of the new Financial Regulation with regard to
the provisions on time limits of payments and on audit within different Commission services. The
Honourable Member will of course be aware that the rules on payment deadlines apply only to legal
commitments of the Commission signed after 1 January 2003. Under the old Financial Regulation,
applicable until then, there were no specific provisions regarding the time limit within which to make
payments.

Currently, the rules on payment deadlines are laid down in Article 106 of the Implementing Rules of the
Financial Regulation (1). The general rule is 45 days from the date on which an admissible payment request
is registered, or 30 days in respect of payments relating to service or supply contracts.

Further rules are laid down in Article 106 (3) for payments related to a contract or a grant agreement
under which the Commission has first to approve a report before it can make a payment. The deadline for
payment in such cases does not begin to run until the report has been approved. For technical services
contracts which are particularly complex, up to 60 days may be allowed for approving the report.

In accordance with Article 106(4) of the Implementing Rules, a decision to suspend the deadline for
payment can be taken when the supporting documents which are produced do not justify the payment
request or when the Commission has doubts about the eligibility of the payment request. In such cases the
clock does not start ticking again until the properly formulated payment request is registered. The
Commission believes that this provision is essential to ensure that ineligible payments are avoided and to
guarantee sound financial management.

The Commission’s Directorate General Enlargement does its utmost to make payments within the shortest
possible time period and in accordance with the obligations of the new Financial Regulation, within the
constraints arising from human resource allocation. Clear guidelines have been issued to officials at every
level emphasising the importance of paying promptly and in any case within the deadlines established by
the Financial Regulation. Management attention has been focussed on this issue and there is an enhanced
follow-up procedure in place to ensure that payments are made as quickly as possible without prejudice to
sound financial management. The figures on time limits relating to payments made by the Directorate
General Enlargement will be sent to the Honourable Member directly.

(1) Commission Regulation (EC, Euratom) No 2342/2002 of 23 December 2002 laying down detailed rules for the
implementation of Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the
general budget of the European Communities, OJ L 357, 31.12.2002.

(2004/C 88 E/0655)

WRITTEN QUESTION E-3221/03

by Christopher Heaton-Harris (PPE-DE) to the Commission

(31 October 2003)

Subject: Financial Regulations and DG Development and Humanitarian Aid

Under the new Commission Financial Regulations there is a time limit on payments of 45 days ‘from the
date when an admissible payment request is registered’.

Could the Commission give details of when this requirement has not been met by DG Development and
Humanitarian Aid? Has any audit been carried out in this DG since the new Financial Regulations came
into force on 1 January 2003? If so, would the Commission give details of the reports with regard to the
time scale of payments made? What are the procedures in place in DG Development and Humanitarian
Aid to ensure that payments are made within the limit of 45 days?

8.4.2004

EN

Official Journal of the European Union

C 88 E/639

Answer given by Mr Nielson on behalf of the Commission

(17 February 2004)

Currently, the rules on payment deadlines are laid down in Article 106 of the Implementing Rules of the
Financial Regulation (1). The general rule is 45 days from the date on which an admissible payment request
is registered; or 30 days for payments relating to service or supply contracts, except where the contract
provides otherwise.

In accordance with Article 106 (4) of the Implementing Rules, a decision to suspend the deadline for
payment can be taken when the supporting documents which are produced do not justify the payment
request or when the Commission has doubts about the eligibility of the payment request.
In those
situations, the payment period will begin to run again when a properly formulated payment request is
registered. The Commission believes that this provision is essential to ensure that ineligible payments are
avoided and to guarantee sound financial management.

Directorate General (DG) Development (DEV) makes every effort to process payments, following the rules
established in the new Financial Regulation, within the shortest possible time period. Guidelines,
establishing a timetable of maximum delays at each level of the internal financial circuit, have been sent
to all operational units concerning the respect of payment delays. A financial indicator for payments,
taking data from the Commission accounting system, has been used to monitor payment delays. The
average payment delay for DG DEV (delay between the date of registry of the invoice and the bank value
date) for the year 2003 is 44 days for the A budget lines (administrative expenditure) and 22 days for the
B budget lines (operational expenditure). Taking into account both types of budget lines, the average
payment delay for DG DEV for the year 2003 is 32,13 days. Payments made by DG Administration and
Personnel (ADMIN) for two A lines (missions; meetings with experts) are not included.

The only report produced by DG DEV concerning the time scale of payments made in 2003 is the
‘Reporting on financial
information purposes. The report on
financial
indicators provides an important feedback on financial performance to Management, to the
Authorising Officers by Sub-Delegation (AOSDs) and to the Financial Cell of the DG.

indicators’ produced for Management

(1) Commission Regulation (EC, Euratom) No 2342/2002 of 23 December 2002 laying down detailed rules for the
implementation of Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the
general budget of the European Communities, OJ L 357, 31.12.2002.

(2004/C 88 E/0656)

WRITTEN QUESTION E-3257/03

by Margrietus van den Berg (PSE) to the Commission

(3 November 2003)

Subject: VAT (cid:1) recycling firms

One of the main tasks of recycling firms is to identify recycling possibilities and put them into practice.
They do this by collecting, selecting, repairing and remarketing end-of-life products. In Belgium the
recycling industry is allowed some leeway with the 6 % VAT rate on the basis of social arguments.
Repeated attempts have been made to enable the recycling industry in the Netherlands to apply a VAT rate
of less than 6 % on the basis of social and environmental arguments, but so far without success. In the
meantime the Commission has presented communication (1) on integrated product policy to Parliament
and the Council. This makes many references to granting tax concessions to environmentally friendly
projects. However, the recycling industry is not specifically mentioned.

Is the Commission in dialogue with the European organisation representing recycling firms (RREUSE)

1.
on this subject?

If so, what is the outcome of the dialogue in concrete terms? If not, why is such a dialogue not

2.
taking place?