1972 ON DETAILED RULES FOR GRANTING AID FOR SKIMMED MILK PROCESSED INTO COMPOUND FEEDINGSTUFFS AND FOR SKIMMED-MILK POWDER FOR USE AS FEED ( OFFICIAL JOURNAL , ENGLISH SPECIAL EDITION 1972 ( II ), P . 428 ) PROVIDES , IN REGARD TO DENATURED SKIMMED-MILK POWDER , THAT DENATURING SHALL BE SUPERVISED ON THE PREMISES ; THAT EACH MEMBER STATE SHALL APPOINT AN AGENCY TO CARRY OUT THAT SUPERVISION AND , MOREOVER , THAT THE CONCERN UNDERTAKING DENATURING SHALL , IN GOOD TIME BEFOREHAND COMMUNICATE IN WRITING TO THAT AGENCY ITS BUSINESS NAME AND ADDRESS , THE QUANTITY OF SKIMMED-MILK POWDER TO BE DENATURED , THE PLACE WHERE DENATURING WILL TAKE PLACE AND THE EXPECTED DURATION OF THE DENATURING PROCESS . ARTICLE 10 OF THAT REGULATION REQUIRES MEMBER STATES TO TAKE ALL MEASURES NECESSARY TO ENSURE THAT THE PROVISIONS LAID DOWN IN THE REGULATION ARE COMPLIED WITH .
3 ACCORDING TO THE FIRST SUBMISSION , THE DECISION UNDER CHALLENGE INFRINGED ARTICLES 3 AND 10 OF THE AFOREMENTIONED REGULATION NO 990/72 BY REFUSING TO RECOGNIZE THE SUPERVISION OF DENATURING CARRIED OUT BY THE GERMAN AUTHORITIES AS BEING IN ACCORDANCE WITH THOSE PROVISIONS .
4 IT APPEARS FROM THE PAPERS IN THE CASE THAT , DURING THE PERIOD UNDER CONSIDERATION , THE SYSTEM OF SUPERVISION OF DENATURING SET UP BY THE GERMAN AUTHORITIES WAS NOT BASED PRINCIPALLY ON PHYSICAL , ON-THE-SPOT CHECKS BUT , RATHER , ON SCRUTINY OF THE BUSINESS RECORDS OF THE UNDERTAKINGS CARRYING OUT DENATURING . THOSE UNDERTAKINGS , WHICH WERE REGISTERED WITH THE COMPETENT GERMAN AGENCY AS DENATURING UNDERTAKINGS , WERE BOUND TO MAINTAIN ACCOUNTING RECORDS IN ACCORDANCE WITH CRITERIA LAID DOWN BY THE COMPETENT AGENCY , TO STORE IN AN ORDERLY FASHION THE PRODUCTS CAPABLE OF BENEFITING FROM THE AID AND THE AGENTS USED IN THE DENATURING AND TO ALLOW THE COMPETENT INSPECTORS ACCESS TO THEIR PREMISES IN ORDER TO CHECK THE ACCOUNTING RECORDS , THE STOCKS AND THE DENATURING OPERATIONS . THE UNDERTAKINGS WERE ALSO BOUND TO ALLOW THE TAKING OF SAMPLES .
5 ACCORDING TO THE COMMISSION , WHATEVER MAY BE THE MERITS OF SUCH A SYSTEM OF SUPERVISION , IT DOES NOT OBLIGE THE UNDERTAKINGS CONCERNED TO PROVIDE THE INFORMATION REQUIRED BY ARTICLE 3 ( 2 ) OF REGULATION NO 990/72 RELATING TO THE DURATION AND PLACE OF DENATURING AND THE QUANTITIES OF SKIMMED-MILK POWDER SUBJECTED TO THE DENATURING PROCESS . ACCORDING TO THE COMMISSION , THAT INFORMATION IS NECESSARY IN ORDER TO FACILITATE THE ON-THE-SPOT SUPERVISION OF THAT PROCESS WHICH IS PROVIDED FOR BY ARTICLE 3 ( 1 ) OF THE REGULATION .
6 THE GERMAN GOVERNMENT ARGUES THAT THE COMBINATION OF SCRUTINY OF THE ACCOUNTING RECORDS AND OF THE ADMINISTRATION OF THE UNDERTAKINGS IN QUESTION , ON-THE-SPOT CHECKS OF RAW MATERIALS AND THE TAKING OF SAMPLES CONSTITUTES A PARTICULARLY EFFECTIVE SYSTEM OF SUPERVISION . THAT IS ESPECIALLY SO WHERE , AS IN THE PRESENT INSTANCE , EACH INSPECTOR SUPERVISES A LIMITED NUMBER OF UNDERTAKINGS , IS IN PERMANENT CONTACT WITH THEM AND IS