CELEX: 51991PC0378
Language: en
Date: 1991-10-25
Title: Amendment to the proposal for a COUNCIL REGULATION ( EEC ) on the checks and penalties applicable under the common agricultural and fisheries policies

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                             C0M(91) 378 final
                                                              Brussels. 25 October 1991
                                           Amendment to the proposal for a
                                               COUNCIL R E L A T I O N (EEC)
                                   on the checks and penalties applicable under the
                                      common agricultural and fisheries policies
                                (presented by the Commission pursuant to Article 149(3)
                                                   of the EEC Treaty)
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                               EXPLANATORY MEMORANDUM
The proposed modification to the original Commission proposal takes Into account
most of the requests for amendments put forward by the European Parliament.
Those amendments are clarifying even further the powers of the Commission as
regards checks and penalties.
 In this context Article 3(1) In Its new version points out that It Is the
 particular purpose of checks to prevent irregularities and fraud.   The Indicative
 list of possible control measures In Article 3(2) has been enlarged in order to
 give an even more precise idea of what kind of measures could be taken in this
 field.   Paragraph 4 of Article 3 indicates which persons could be submitted to
 checks whereas the new paragraph 5 establishes a general rule on the way in which
 checks shall be conducted.
  In Article 4(1) the definition of penalties has been enlarged providing for
  sanctions also in the case that somebody refuses collaboration to controls.
  The other amendments to Article 4 serve to clarify the proposed text.
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                                    AMENDMENTS
1. Article 3 Is amended as follows:
   (a) Paragraphs 1 and 2 are replaced by the following text:
       1.   The nature and frequency of the checks shall be determined so as to
            ensure effective and uniform application of the legislation and in
            particular to prevent fraud and Irregularities.  The checks shall be
            limited to those necessary to achieve these objectives.  They shall
            as far as possible take account of the administrative practices and
            structures existing in the Member States and shall be determined so
            as not to entail excessive economic consequences or administrative
            costs.
       2.   In particular checks may include:
            - checks on books and other business documents, including taking of
              cop Ies,
            - checks on data held on computer,
            -on-site requests for additional explanations,
            - the examination of systems and methods of production, packaging and
              dispatch,
            - physical checks upon the quantity and quality of stocks,
            - taking and verification of representative samples,
            - adequate cross-checks to verify the accuracy of primary data.
       Checks made by the Commission within its powers shall be carried out by
        its officials or by duly authorized experts.
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   (b) The following paragraphs are added:
        -4. Suppliers, consignees, carriers and other third parties directly or
              Indirectly concerned with transactions covered by the relevant
              legislation, whether natural or legal persons, shall also have the
             duty to permit checks to be made, and shall In particular allow
              access to buildings and land to be visited for that purpose.
         5.   Checks shall be conducted In a reasonable and expeditious manner, so
              as to cause as little disturbance to all natural and legal persons
              concerned as is necessary in all the circumstances."
2.  Article 4 is amended as follows:
    (a) The first subparagraph of paragraph 1 is replaced by the following text:
         H
           1. For the purposes of this regulation penalties shall be understood to
              mean measures entailing unfavourable financial or economic
              consequences
              (a) for an operator who has unjustifiably received a benefit, or
              (b) for an operator who has failed to fulfil an obligation imposed by
                   legislation, or
             (c) for an operator who refuses access or otherwise obstructs the
                  conduct of any of the checks referred to in Article 3(3)."
   (b) The following paragraph is added after paragraph 1:
       "1a.    The operators or other parties upon whom penalties may be imposed
               may be either natural or legal persons."
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(c) Paragraph 2 is replaced by the following text:
    "2. The provisions relating to penalties shall determine the type and
        scope of the penalties on the basis of the benefit, as well as the
        nature and the seriousness of the Irregularity Insofar as Is
        necessary to ensure the correct functioning of the legislation in
        question.  In particular penalties may include-.
        - the obligation to pay an amount greater than the amounts
          unjustifiably received plus interest, where appropriate,
        - total withdrawal of the benefit granted by Community legislation
          even If only part of this benefit has been unjustifiably received,
        - refusal or withdrawal of the benefit for a period exceeding that of
          the Irregularity If such irregularity shows a lack of reliability
          on the part of the beneficiary."
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                                                              COM(91) 378 final
                                                      DOCUMENTS
 EN                                                                              03
                                 Catalogue number : CB-CO-91-432-EN-C
                                                             ISBN 92-77-76239-X
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