CELEX: 51994PC0458
Language: en
Date: 1994-10-28
Title: Amended proposal for a COUNCIL REGULATION (EC) AMENDING COUNCIL REGULATION (EEC, EURATOM) NO 1552/89 OF 29 MAY 1989 IMPLEMENTING DECISION 88/376/EEC, EURATOM ON THE SYSTEM OF THE COMMUNITIES` OWN RESOURCES

COMMISSION OF THE EUROPEAN COR>MUNITIES
                                          COM(94) 458 final
                                          Brussels, 28.10.1-994
                       Amended proposal for a
                       COUNCil REGULATION (EC).
   AMENDING COUNCIL REGULATION (EEC, EURATOM) NO 1552/89 OF 29
    MAY 1989 IMPLEMENTING DECISION 88/376/EEC, EURATOM ON THE
           SYSTEM OF THE COMMUNITIES'OWN RESOURCES
     (presented by the Commission pursuant to Article 189 A (2)
                          of the EC-Treaty)
 ---pagebreak---                             EXPLANATORY MEMORANDUM
On 11 December 1992 the Commission presented a proposal for a Council Regulation
amending        Regulation         (EEC,       Euratom)      No 1552/89   implementing
                                     1
Decision 88/376/EEC, Euratom.
The amendments proposed by the Commission were intended to improve operation of
the own resources system in the light of experience as regards the shortcomings
detected.
The Council has consulted the institutions concerned under Article 209 of the EC
Treaty: the Court of Auditors issued its opinion on 1 April 19932 and Parliament on 35
and 16 November 1993.
The Commission, in accordance with Article 189a(2) of Uie Treaty establishing the
European Community, has drawn up this amended proposal following the consultations
with the Court of Auditors and the Parliament.
I.       Amendments proposed by the Commission
                                 Establishment of sugar levies
These resources should be uniformly identified in the terms employed in the
agricultural regulations governing the sugar sector and the conditions for establishing
and making available these levies should be specified in greater detail (new
Article 2(la), Article 5, Article 6(2) and Article 10(1)).
                              Establishment in the event of errors
The lower limit of ECU 2 000 for the establishment of own resources which ar« not
collected as a result of errors by national departments is not retained (new first
subparagraph of Article 2(lb) and second subparagraph of Article 17(2)). There is no
justification for waiving own resources of less than ECU 2 000.
                               Keeping of supporting g^cjggmtj
The wording has been changed to cover VAT and GNP-basecl resources as well
 (Article 3).
 1       COM(92)519 final.
 2
         OJ C 170,21.6.1993 - Opinion No 1/93.
 ---pagebreak---                    Information on national rules and national departments
This information should relate to the role and operation of the national departments or
agencies involved in the collection of own resources. It was also felt that Member
States should identify all the accounting records containing established entitlements and
that this list should be sent to the Commission (Article 4(1)).
                                     Closure of accounts
The conditions for the closure of accounts in which established entitlements are entered
should be laid down in a specific article (Article 6(1 a)).
                        Information on the handling of cases of fraud
There is no need for decisions to waive recovery under Article 17(2) to be attached to
the monthly statement.
Cases of fraud and irregularities reported in the quarterly statement will already have
been reported to the Commission under Article 6(4) (Article 6(3)(a) and (3)(b)).
                                  Payment of recovery costs
In view of the particular difficulties involved in ex-post recovery in cases of fraud and
irregularities, Member States should be allowed to deduct 10% of the amounts
recovered in compensation (Article 10(1 a).
                                Obligation to draw on reserves
Reserves must be drawn on to keep the budget in balance.
                     Establishment of the rate of the additional resource
The word" uniform " must be deleted since this does not apply to the additional resource
(sixth and seventh paragraphs of Article 10(3)).
                                     Entry of adjustments
The entry of VAT and GNP adjustments should be simplified and their establishment
harmonized (Article 10(6) and (8)).
                    Presentation of supplementary and amending budgets
The revenue entered in the budget may be adjusted in the course of the financial year so
that the estimates can be made to match outturn (Article 16).
 ---pagebreak---                                Annual report to Parliament
The Commission will draw up an annual summary of the information it receives from
the Member States on the collection of own resources and send it to the Council and
Parliament (new second subparagraph of Article 17(3)).
                                        Spot checks
Commission inspections of national departments responsible for the collection of own
resources may take the form of a spot check in order to increase their impact (new
second subparagraph of Article 18(3)).
II.    Amendments rejected by the Commission
                       Making available of own resources in ecus
The Commission wishes to retain the optional nature of its proposal (payment in either
ecus or national currency):
       in order to secure the agreement of all Member States on a proposal designed to
       see that more use is made of the ecu;
       in order to avoid difficulties in budget implementation: since a large proportion
       of expenditure operations are still performed in national currency, the
       Commission would have to convert the ecus it received from the Member
       States.
 ---pagebreak---                                                        Amended proposal      for a
                                                      ÇQUNÇIl R E L A T I O N (EC)
                            AMENDING COUNCIL REGULATION (EEC, EURATOM) NO 1552/89 OF 29
                             MAY 1989 IMPLEMENTING DECISION 88/376/EEC, EURATOM ON THE
                                         SYSTEM OF THE COMMUNITIES' OWN RESOURCES
To take account of the opinions of Parliament and the Court of Auditors, the Commission is presenting the following amended proposal:
 ---pagebreak---                                              Proposal for a Regulation                                      Amended proposal
      amending Council Regulation No 1552/89 implementing Decision 88/376/EEC, Euratom on the system
                                        of the Communities'own resources
    THE COUNCIL OF THE EUROPEAN COMMUNITIES,
    Having regard to the Treaty establishing the European Economic Community, and in particular
    Article 209 thereof,
    Having regard to the Treaty establishing the European Atomic Energy Community, and in particular
    Article 183 thereof,
    Having regard to Council Decision 88/376/EEC, Euratom of 24 June 1988 on the system of the
    Communities' own resources,1 and in particular Article 8(2) thereof,
    Having regard to the proposalfromthe Commission/
    Having regard to the opinion of the European Parliament/
    Having regard to the opinion of the Court of Audtiors,**
    Whereas in the light of experience gained in applying Council Regulation (EEC, Euratom) No 1552/89 of
    29 May 1989 implementing Decision 88/376/EEC, Euratom on the system of the Communities' own
    resources/ it appears that the provisions of that Regulation must be adjusted;
<r> Whereas the Community must have the own resources referred to in Article 2 of Decision 88/376/EEC,
    Euratom available in the best possible conditions and accordingly additional arrangements must be laid
    down for the States to provide the Commission with the own resources allocated to the Communities;
    Whereas traditional own resources are levied by the Member States in accordance with laws, regulations
    and administrative provisions that are, where necessary, adapted to the requirements of Community
    regulations; whereas the Commission must monitor this adpatation arid, where necessary, make proposals;
    1  OJ No L 185, 15.7.1988, p.24.
    2  OJ No C
    3  OJ No C
    4  OJNoC
    5  OJNoL155,7.6.1989,p.l.
 ---pagebreak---     Whereas the Council and the representatives of the Governments of the Member States meeting within the
   Council adopted a resolution on 13 November 1991 on the protection of the financial interests of the
   Communities;
    Whereas detailed rules must be laid down for satisfying the obligation to establish the own resources
   referred to in Article 2(1 Xa) and (b) of Decision 88/376/EEC;
    Whereas improvements should be made to the arrangements for the Member States to report to the
   Commission, in order to enable it to monitor Member States' action to recover own resources, in particular
   in cases of fraud and irregularities;
   Whereas a time limit should be laid down for relations between Member States and the Commission, since
   new entitlements established by Member States in respect of earlier years are deemed to be establishments
   for the current year;                                                 \
   Whereas the Community's financial autonomy" should be strengthened by a provision to the effect that in
   certain circumstances the amounts of established entitlements not recovered for reasons attributable to the
   Member States will have to be bome by them;
   Whereas 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 Community during the budget year in which they are
   established;
   Whereas Member States are showing a growing interest in using the ecu for settling operations with the
   Commission, including in the field of own resources;
-P Whereas close collaboration between the Member States and the Commission will facilitate proper
   application of the financial rules relating to own resources,
                                                                                                               Whereas Member States should be urged to bear the additional costs resulting from ex post recovery in
                                                                                                               cases of fraud and irregularities, with the possibility of retaining 10% of sums recovered;
                                                                                                               Whereas the transparency of the own resources system should be improved and more information supplied
                                                                                                               to the budgetary authority;
                                                                                                               Whereas the national authorities responsible for the collection of own resources must be able to produce lo
                                                                                                               authorized Commission officials at all times the documents substantiating the own resources collected,
   HAS ADOPTED THIS REGULATION:
 ---pagebreak---                                                        TITLE I
                                                   General provisions
    Article 1
    The Community's own resources provided for in Decision 88/376/EEC, Euratom, hereinafter referred to as
    'own resources' shall be made available to the Commission and inspected as specified in this Regulation,
    without prejudice to 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 and
    Directive 89/130/EEC, Euratom.
    Article 2
    1. For the purpose of applying this Regulation, the Community's entitlement to the own resources referred
    to in Article 2(1 Xa) and (b) of Decision 88/376/EEC, Euratom shall be established as soon as the amount
    due has been notified by the competent department of the Member State to the debtor. Notification shall
   be given as soon as the debtor is known and the amount of entitlement can be calculated by the competent
   administrative authorities, in compliance with all the relevant Community provisions.
    la.          When the competent administrative authorities make an entry in the accounts within the
   meaning of the customs regulations, the notification for the purposes of the establishment referred to in
   paragraph 1 shall be the notification provided for in these regulations. The date of the establishment
   referred to in paragraph 1 shall be the date ofthe entry in the accounts.
   As regards the levies and other charges connected with the common organization of the sugar market, the
CA date of the establishment referred to in paragraph 1 shall be the date of notification under the sugar
   regulations.
                                                                                                                  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-
    lb.          In cases where the competent administrative authorities do not make an entry in the accounts     Delete the phrase "and the amounts involved exceed ECU 2 000,"
   for the customs debt on the basis of the customs regulations, even though the debtor is known and the
   amount due can be calculated as provided in paragraph 1. and the amounts involved exceed ECU 2 000.
   an ad hoc entry is made in the accounting ledgers without notification of the debtor for the purposes of the
   establishment referred to in paragraph 1.
   The date of the establishment referred to in paragraph 1 shall be the date of entry in the accounting ledgers.
   1c.           In disputed cases, the competent administrative authorities shall be deemed, for the purposes of
   the establishment referred to in paragraph 1. to be in a position to calculate the amount of the entitlement
   no later than when the first administrative decision is taken notifying the debtor of the debt or when
   judicial action is brought if this occurs first
   The date of the establishment referred to in paragraph 1 shall be the date of the abovementioned decision
   or of initiation of judicial action-
 ---pagebreak---      2. Paragraph 1 shall apply when a notification must be corrected.
     Article 3
     Member States shall take all appropriate measures to ensure that the supporting documents concerning the
     establishment and the making available of own resources are kept for at least three calendar years, as 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 of these supporting documents by the national administration alone or in conjunction with    If verification pursuant to Articles 18 and 19 of this Regulation or of Article 11 of Council Regulation
    the Commission shows that a finding to which they relate may have lo be corrected, they shall be kept         (EEC. Euratom) No 1553/89 of the supporting documents referred to in the above paragraphs shows that
    beyond the time limit provided for in the first paragraph for a sufficient period to permit the correction to an establishment to which they relate may have to be corrected, they shall be kept beyond the time limit
    be made and monitored.                                                                                        provided for in the first paragraph for a sufficient period to permit the correction to be made and
                                                                                                                  monitored.
    The supporting documents relating to the statistical procedures and bases referred to in Articles 4 and 5 of  Deleted.
     Directive 89/130/EEC, Euratom shall be kept by the Member States until 30 September of the fourth year
     following thefinancialyear in question. The supporting documents relating to the VAT resources base
     shall be kept for the same period.
     Article 4
     1. Each Member State shall inform the Commission:
    (a)        of the names of the departments or agencies responsible for establishing, collecting, making       (a)       of the names of the departments or agencies responsible for establishing, collecting, making
               available and controlling own resources and, where appropriate, their status;                                available and controlling own resources and the basic provisions relating to the role and operation
                                                                                                                            of those departments and agencies;
~s>
    (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
               of own resources.
                                                                                                                  (c)       The precise title of all administrative and accounting records in which the established
                                                                                                                            entitlements as specified in Article 2 of this Regulation, in particular those used for drawing up
                                                                                                                            the accounts provided for in Article 6 of this Regulation, are entered."
    The Commission shall be informed immediately of any change in these names or provisions.
    2. The Commission shall, at the request of the other Member States, pass to them the information referred
    to in paragraph 1.
 ---pagebreak--- .Article 5
The rate referred to in Article 2(1 Xd) of Decision 88/376/EEC, Euratom, which shall be set within the         The rate referred to in Article 2( 1 Xd) of Decision 88/376/EEC, Euratom, which shall be set within the
budgetary procedure, shall be calculated as a percentage of the sum of the forecast GNP of the Member          budgetary procedure, shall be calculated as a percentage of the sum of the forecast GNP of the Member
States in such manner that it fully covers that part of the budget not financed from customs duties,           States in such manner that it fully covers that part of the budget not financed from customs duties,
agricultural levies, sugar levies. VAT resources, financial contributions to supplementary research and        agricultural levies, levies, and other charges connected with the common organization of the sugar sector.
technological development programmes, other revenue and, where appropriate, GNP financial                      VAT resources, financial contributions to supplementary research and technological development
contributions.                                                                                                 programmes, other revenue and, where appropriate, GNP financial contributions.
                                                   TITLE II
                                        Accounts for own resources
Article 6
1. Accounts for own resources shall be kept by the Treasury of each Member State or by the body
appointed by each Member State and broken down by type of resources.
                                                                                                               la.         For own-resources accounting purposes, the month shall end no earlier than 1300 hours on the
                                                                                                               last working day of the month.
2.(a)        Entitlements established in accordance with Article 2 shall, subject to point (b) of this         The last sentence of Article 6(2)(a) is deleted.
paragraph, be entered in the accounts at the latest on the first working day after the 5th day of the second
month following the month during which the entitlement was established. For accounting purposes the
month shall end no earlier than 1300 hours on the last working day of the month.
(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 full or partial security has been provided have been challenged and might upon settlement of the
disputes which have arisen be subject to change.
(c)          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.
(d)          VAT resources and the additional resources shall, however, be recorded in the accounts as
specified in point (a) as follows:
- the twelfth referred to in Article 10(3) shall be recorded on thefirstworking day of each month,
- 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 indent of
          Article 10(6), which shall be recorded in the accounts on the first working day of the month
          following agreement between the Member State concerned and the Commission.
 ---pagebreak---  3.(a)        Each Member State shall send the Commission, within the time limits specified in paragraph 2,
 a monthly statement of its accounts for the entitlements referred to in paragraph 2(a), using the form of
 which a specimen is annexed to this Regulation.
 Together with each monthly statement the Member States shall indicate the cases of fraud and                 Delete the phrase "or a decision has been taken to waive recovery".
 irregularities already reported to the Commission pursuant to paragraph 4 where amounts have been
 recovered or a decision has been taken to waive recovery and shall give the reference of the initial report-
  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.
 fb)          Each Member State shall send the Commission, within the time limits specified in paragraph 2,
 a quarterly statement of the separate accounts referred to in paragraph 2(b), using the form of which a
 specimen is annexed to this Regulation.
 Together with the quarterly statement each Member State shall give details of the position concerning        Together with the quarterly statement each Member State shall give details of the position concerning
 cases of fraud and irregularities where entitlements have been established. The presentation shall be the    cases of fraud and irregularities already reported to the Commission pursuant to paragraph 4 where
same as that of the quarterly statement and reference shall be made to the initial report.                    entitlements have been established. The presentation shall be the same as that of the quarterly statement
                                                                                                              and reference shall be made to the initial report.
 4. 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 ECU 10 000.
 As far as possible, each Member State shall provide the following details:
:  .type of fraud and/or irregularity (designation, customs procedure concerned):
:   amount of own resources evaded (or 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.
; national departments or agencies which detected the fraud or irregularity.
; stage reached in procedure, with reference of establishment if already made;
: reference of notification of case under mutual assistance arrangements (Regulation 1468/81V.
; if appropriate, the Member States involved;
z measures taken or envisaged to prevent the recurrence of cases of fraud and irregularities already
           detected.
Specimen forms for providing the above descriptions shall be drawn up by the Commission after
consulting the ACQR. Any changes to these specimen forms shall be adopted by the same procedure.
Article 7
"1.          Each Member State shall draw up annually a summary account of established entitlements
shown in the accounts referred to in Article 6Y2Xa) and shall send it to the Commission before 1 March of
the year following the financial year in question. A remark shall be added to explain any difference
between the total ofthe 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 account in which to make any observations to the Member State concerned.
2. After 31 December ofthe third year following a given year, no corrections shall be made to the
summary account referred to in paragraph 1, except on points notified before this date either by the
Commission or by the Member State concerned."
 ---pagebreak---   Article 8
  Corrections carried out under Article 2(2) 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(2Xa) and (b) and
  in the statements as specified in Article 6(3) in accordance with the date of these corrections.
                                                     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, in ecus or in national currency, to one ofthe accounts opened in the name of the Commission
  with its Treasury or the body it has appointed.
  These accounts shall be kept free of charge.
  2. The amounts credited in national currency shall be converted by the Commission and entered in its        Replace "Commission Regulation 86/610/EEC, Euratom, ECSC of 11 December 1986" by "Commission
  accounts in ecus in accordance with Commission Regulation 86/610/EEC, Euratom, ECSC of                      Regulation (Euratom. ECSC. EC) No 3418/93 of 9 December 1993".
   11 December 1986 laying down detailed rules for the implementation of certain provisions of the
  Financial Regulation of 21 December 1977.
N
 ---pagebreak---    Article 10
    1. After deduction of 10% by way of collection costs in accordance with Article 2(3) of
   Decision 88/376/EEC, Euratom, with any necessary adjustment for amounts of own resources
   which could not be recovered for reasons attributable to the Member States, entry in national
   currencies ofthe own resources referred to in Article 2(1 )(a) arid (b) of that Decision shall be made
   at the latest on the first working day following the 5th day ofthe second month following the month
   during which the entitlement was established in accordance with Article 2.
                                                                                                          However, the Member States may, no later than the first working day following 15 December,
                                                                                                          enter the balance of production levies and the additional levy provided for in the common
                                                                                                          organization ofthe sugar market.
    However, for entitlements shown in separate accounts under Article 6(2)(b), the entry must be
    made at the latest on the first working day following the 5th day of the second month following the
   month in which the entitlements were recovered.
                                                                                                          la.        Furthermore, the Member States may keep an amount equal to 10% of the sums
                                                                                                          recovered in connection with cases of fraud and irregularities in accordance with Article 6(4).
   2. If necessary, Member States may be invited by the 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 15 th ofthe 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.
I? 3.VAT resources, the additional resource - excluding the own resources for the EAGGF monetary
   reserve - and, where appropriate, GNP financial contributions shall be credited, in ecus or in
   national currency at the choice of the Member State, on the first working day of each month, the
   amounts being one twelfth of therelevanttotals in the budget.
   If the Member State opts for entry in national currency the amount due is converted into the
   national currency at the rate of exchange of the last day of the calendar year preceding the budget
   year, as published in the Official Journal ofthe European Communities.
   If the Member State opts for entry in ecus the amount in national currency is determined according
   to the previous subparagraph and converted into ecus at the rate of exchange of the penultimate
   working day of quotation ofthe month before entry.
   The Member States shall inform the Commission of their choice. They may alter this choice
   provided they inform the Commission no later than the 5th day of the month before the change
   takes effect.
 ---pagebreak---                                                                                                                10
   The entry in respect of the EAGGF monetary reserve referred to in Article 6 of Decision 88/376/EEC,
   Euratom shall be made on thefirstworking day ofthe month following the charging to the budget ofthe
   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 5 of the Financial • Regulation of                     Replace "(ECSC, EEC, Euratom) No 2049/88" by (Euratom. ECSC. EEC No 610/90)"
   21 December 1977 applicable to the general budget ofthe European Communities,1 as last amended by
   Regulation (ECSC, EEC, Euratom) No 2049/88/ that-entry will be taken into account in the financial             The last sentence ofthe fifth subparagraph of Article 10(3) is deleted.
   year to which it relates. However, if the situation asregardsthe implementation ofthe budget for the year
   is such that the entry relating to the monetary reserve is not necessary to achieve a balance between
   revenue and expenditure for the year, the Commission may decide to dispense with this entry or part of this
   entry.
   Any change in the uniform rate of VAT resources, in the correction granted to the United Kingdom               The word "uniform" in the third line ofthe sixth subparagraph of Article 10(3) is deleted.
   referred to in Article 5 of Decision 88/376/EEC, Euratom and in itsfinancing,in the uniform rate ofthe
   additional resource and, where appropriate, in the GNP financial contributions shall require the final
   adoption of a supplementary or amending budget and shall giveriseto readjustments ofthe twelfths which
   have been entered since the beginning of thefinancialyear.
   Thesereadjustmentsshall be carried out when the first entry is made following the final adoption ofthe
   amending or supplementary budget if it is adopted before the 16th ofthe month. Otherwise they shall be
   carried out when the second entry following final adoption is made. By way of derogation from Article 5
   ofthe Financial Regulation hereafterreferredtoas the Financial Regulation, these readjustments shall be
   entered in the accounts in respect of the financial year of the supplementary or amending budget in
   question.
-F
    ' OJ No L 356,31.12.1977, p. 1.
   * OJ No L 185, 15.7.1988, p. 3.
 ---pagebreak---                                                                                                                    11
    Calculation ofthe twelfths for January of each financial year shall be based on the amounts provided for in
   the draft budget, with the exception ofthe amounts for financing the EAGGF monetary reserve, referred to
    in .Article 78(3) of the ECSC Treaty, Article 203(3) of the EEC Treaty and Article 177(3) of the
    EAEC Treaty and converted into national currencies at the rates of exchange ofthe first day of quotation
   following 15 December ofthe calendar year preceding the budget-year, if the entry is made in ecus, the
   amount in national currency is converted into ecus at the rate ofthe penultimate working day of quotation
   in December: the adjustment shall be made with the entry for the following month.
   If the budget has not been finally adopted before the beginning ofthe financial year, the Member States
   shall enter on the first working day of each month, including January, one-twelfth ofthe 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 ofthe budget if
   it is adopted before the 16th ofthe month. Otherwise, the adjustment shall be made on the second due date
   following final adoption ofthe budget.
   4. Each Member State shall, on the basis ofthe annual 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 55% of its GNP 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 national currencies in the account referred to in
    Article 9(1 ) of this Regulation on the first working day of December ofthe same year.
    5. The Commission shall then calculate adjustments to the financial contributions so as to restore, in the
    light ofthe actual yield from VAT resources, the original distribution in the budget between the latter and
0\ the GNP financial contributions. For the calculation of these adjustments, the balances referred to in
   paragraph 4 shall be converted into ecus 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 ofthe 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 55% of its GNP 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             the corrections under the first subparagraph of Article 9( 1 ) of Regulation ŒEC. Euratom) No 1553/89
              made by 31 July shall give rise to a general adjustment to be entered in tlie account referred to in           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 ofthe same year, provided                 Article 9(1 ) of this Regulation on the first working day of December ofthe same year. However
              that the corrections apply to years after 1987; otherwise the adjustment shall be made on                      a particular adjustment may be entered before that date if the Member State concerned and the
               1 October ofthe same year. However, a particular adjustment may be entered before that date if                Commission are in agreement;
              the Member State concerned and the Commission are in agreement.
 ---pagebreak---                                                                                                                   12
    • 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 adjustment ofthe 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 ofthe
   balance of any Member State whose base, allowing for. those corrections, is capped at 55% of its GNP.
   The adjustmentstobe madetothe VAT balances by thefirstworking day of December of each year under
   the preceding subparagraphs of this paragraph shall also give rise to the calculation by the Commission of
   further adjustments to the ONPfinancialcontributions. 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 inform the Member States of these adjustments in time for them to enter them in the
   accountreferredto in Article 9( 1 ) on thefirstworking day of December ofthe same year.
                                                                                                                     However, a particular adjustment may be entered at any time if the Member State concerned and the
                                                                                                                     Commission are in agreement.
   7. On the basis offiguresfor aggregate GNP at market prices and its componentsfromthe preceding year,             The word "uniform" in the fourth line of Article 10(7) is deleted.
   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 uniform rate adopted
   for the previous financial year, amended, where appropriate, in the light of any use of the EAGGF
   monetary reserve, and credited with 12 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 thefirstworking day of December ofthe same
   year.
   8. Any changes to the GNP of previousfinancialyears pursuant to Article 3(2) of Directive 89/130/EEC,             8. After the first sentence of paragraph 8, add the following sentence: "This adjustment shall be
<P Euratom subject to Article 6 thereof, shall give rise for each Member State concerned to an adjustment to         established in the manner laid down in thefirstsubparagraph of paragraph 6.'
   the balance established pursuant to paragraph 7. 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 ofthe same year. After 30 September ofthe 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.
 ---pagebreak---                                                                                                                   13
     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.
     Any delay in the payment of interest due shall give rise to the payment of further interest at the rate last
     applied to the principal.
                                                      TITLE IV
                                            Management of cash resources
    Article 12
     1. The Commission shall draw on the sums credited to the accounts referred to in Article 9(1 ) to the extent
    necessary to cover its cash resource requirements arising out of the implementation of the budget.
    2. If the cash resource requirements are in excess ofthe assets ofthe accounts, the Commission may draw
    in excess ofthe total of these assets subject to the availability of appropriations in the budget and within
    the limit ofthe own resources entered in the budget In this event, it shall inform the Member States in
    advance of any foreseeable excess requirements.
  . 3. In the sole case of default under a loan contracted pursuant to Council Regulations and Decisions, in
v-3 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 Community's legal obligations
    to its lenders, the provisions of paragraphs 2 and 4 may provisionally be applied, irrespective of the
    conditions in paragraph 2 in order to service the Community's debts.
    4. The difference between the overall assets and the cash resource requirements shall be divided among the
    Member States, as far as possible, in proportion to the estimated budget revenue from each of them.
    5. The Member States, or the body designated by them in 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 Comnussion a statement of account within not more than seven working days of
    completing each transaction.
    However, in the case of cash movement transactions, the Member States shall execute the orders within the
    period requested by the Commission.
 ---pagebreak---                                                                                                                 14
                                                       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 necessary 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 ofthe European Communities, on
    the basis of statistics prepared according to the European System of Integrated Economic Accounts (ES A),
    and corresponding, for each Member State, to the arithmetic mean ofthe first three years ofthe 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 ofthe budget
    3. The GNP for each reference year shall be calculated in terms ofthe ecu on the basis ofthe average rate
    of the ecu for the year in questioa
    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 budget, fix the percentage
    corresponding to the financial contributions of those Member States on the basis ofthe proportion of their
    GNP to the sum total ofthe GNPs ofthe Member States, and shall determine the amount of that part ofthe
    budget to befinancedby VAT resources at the uniform rate and by the GNP financial contributions.
<** These figures shall be approved in accordance with budgetary procedure.
    Article 14
    1. The definition of GNP at market prices shall be that given in Articles 1 and 2 of Directive 89/130/EEC,
    Euratom.
    2. The figures to be used in calculating the percentage 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 Office ofthe European Communities shall use the data available.
 ---pagebreak---                                                                                                                  15
                                                       TITLE VI
                 Procedure for the application of Article 7 of Decision 88/376/EEC, Euratom
     Article 15
    For the purposes of applying Article 7 of Decision 88/376/EEC, Euratom, the balance of a given financial
    year shall consist ofthe 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 appropriations for tlie same financial year carried o%'er pursuant to Articles 6(1 Xb) and (c)
              and 2(b) ofthe 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 4 ofthe Financial Regulation, by:
    - payments made in excess of non-differentiated appropriations carried over from the previous financial
              year under Article 6(1) ofthe Financial Regulation as a result of changes in ecu rates, and
    - the balance resulting from exchange gains and losses during the financial year.
~S>
    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 ofthe data at its disposal at that time.
    If appreciable differences from the original estimates appear, the former may give rise to a letter of          Any appreciable differences in relation to original estimates may give rise to a letter of amendment to the
    amendment to the draft budget for the following financial year.                                                 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 in the budget for the
                                                                                                                    current financial year may., whatever the circumstances, be increased or reduced, by means of an amending
                                                                                                                    budget, by the amount resulting from those operations.
 ---pagebreak---                                                                                                                        16
                                                           TITLE VII
                                        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 released from the obligation to make available to the Commission the amounts
        corresponding to established entitlements solely if, for reasons of force majeure, these amounts have not
        been recovered. In addition, Member States may disregard this obligation to make such amounts available
        to the Commission in specific cases if, after thorough assessment of all the relevant circumstances ofthe
        individual case, it appears that recovery is definitively impossible for reasons which cannot be attributed to
        them.
        Inadequate security for the own resources to be recovered shall not be considered a reason which cannot be
        attributed to the Member State.                                                                                   Delete the phrase "or ECU 2 000 in the case of errors attributable to the competent administrative
                                                                                                                          authorities"
        The Commission shall be notified every six months ofthe cases referred to in the previous subparagraph.
        where the, amounts involved exceed ECU 10 000. or ECU 2 000 in the case of errors attributable to the
        competent administrative authorities or force majeure, converted into national currency at the rate
Jis.,   applying on the first working day of October ofthe previous financial year: this notification shall be given
O*      within three months ofthe end of each six-month period and must indicate the reasons why the Member
        State was unable to make available the amounts in question.
      • The Commission shall have three months after receiving all the necessary information in which to make
        any observations to the Member State concerned.
        3. Member States shall inform the Commission, by means of annual reports, ofthe details and results of
        their inspections and ofthe overall data and questions of principle concerning the most important problems
        arising out ofthe application of this Regulation and, in particular, matters in dispute. This repart shall be
        sent to the Commission by 31 March ofthe year following the financial year in question.
                                                                                                                          By 30 June of the same financial year the Commission shall send to the Council and Parliament a
                                                                                                                          summary report on the notifications by the Member States under this Article and Article 6(3).
 ---pagebreak---                                                                                                                17
   Article 18
    1. Member States shall conduct the checks and enquiries concerning the establislunent and the making
   available ofthe own resources referred to in Article 2(1X») and (b) of Decision 88/376/EEC, Euratom.
   The Commission shall exercise its powers as specified in this Article.
   2. Accordingly, Member States shall:
   - carry out additional inspection measures at the Commission's request. In its request the Commission
             shall state the reasons for the additional inspection,
   - associate the Commission, at its request, with the inspection measures which they carry out
   Member States shall take all steps required to facilitate these inspection measures. Where the Commission
   is associated with these measures, Member States shall place at its disposal the supporting documents
   referred to in Article 3.
   In order to restrict additional inspection measures to the minimum:
   (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(3), 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, discovered during the inspections referred to above, must be
             identified by means of appropriate notes.
K*
   3. Without prejudice to paragraphs 1 and 2, the Commission may itself carry out inspection measures on
   the spot. The agents authorized 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
   substantiated 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 ofthe Member State concerned
   shall participate in such inspection measures.
                                                                                                                  Where the proposed inspections concern the operation of a government department the Commission may
                                                                                                                  carry out a spot check.
 ---pagebreak---      4. The inspection measures referred to in paragraphs 1,2 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 206, 206a and 206b ofthe EEC Treaty and Articles 180,
               180a and 180b ofthe EAEC Treaty;
     (c)      the inspection arrangements made pursuant to Article 209(c) of the EEC Treaty                   and
              Article 183(c) ofthe EAEC Treaty.
     5. The Commission shall report every three years to the European Parliament and to the Council on the
    functioning ofthe inspection arrangements.
    Article 19
    Together with the Member State concerned, the Commission shall each year inspect the aggregates
    provided for errors in compilation, especially in cases notified by the GNP management committee. In
    doing so it may, in individual cases, also examine calculations and basic statistics, apart from information
    about individual companies or persons, where no proper assessment would otherwise be possible. The
    Commission shall respect national legal provisions on the preservation ofthe confidentiality of statistics.
                                                    TITLE VIII
V~>          Provisions relating to the Advisory Committee on the Communities 1 own r e s o u r c e s
    Article 20
     1. An Advisory Committee on the Communities' own resources, hereinafter called the committee'j is
    hereby set up.
    2. The committee shall consist of representatives o f t h e Member States arid of tlie Commission.      Each
    Member State shall be represented on the committee by not more than five officials.
    The chairman ofthe committee shall be a representative ofthe 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 own initiative or at the request
    ofthe representative of a Member State which concern the application of this Regulation, especially as
    regards:
 ---pagebreak---                                                                                                                  19
     (a)       the information and reports referred to in Articles 4( lXb), 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).
    Tlie committee shall also examine estimates of own resources.
    2. At the request of the chairman, the committee shall deliver its opinion within a time limit which the
    chairman may lay down according to the urgency ofthe matter in hand, if necessary by taking a vote. The
    opinion shall be recorded in the minutes; in addition, each Member State shall have the right to ask to have
    its position recorded in these minutes. Tlie 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
    The Commission shall, by                      at the latest, submit a report on the implementation of this
    Regulation and, where appropriate, propose any necessary amendments.
V/° Article 23
    Regulation (EEC, Euratom, ECSC) No                   is hereby repealed.
    References to the repealed Regulation shall be construed as references to this Regulation.
    .Article 24
    This Regulation shall enter into force on the day following its publication In the OfficialJournal     ofthe
    European Communities.
    It shall apply from
    This Regulation shajl be binding in its entirety and directly applicable in all Member States.
 ---pagebreak---                                                                      ISSN 0254-1475
                                                              COM(94) 458 final
                                                      DOCUMENTS
EN                                                                              01
                                Catalogue number : CB-CO-94-482-EN-C
                                                             ISBN 92-77-81380-6
Office for Official Publications ofthe European Comiminities
1^2985 Luxembourg