CELEX: 51991PC0533
Language: en
Date: 1991-12-13
Title: Proposal for a COUNCIL REGULATION ( EEC ) establishing an integrated administration and control system for certain Community aid schemes

COMMISSION OF THE EUROPEAN COMMUNITIES
                                             C0WC91) $33 final
                                              •ruaaais, 13 Daoambar 1 M 1
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                                Proposal for a
                          COUNCIL REGULATION (EEC)
          eatabliahinf an integrated adainiatratioa and control aytt
                       for certain CLI—unity aid achaawa
                        (presented by the Commission)
 ---pagebreak---                                                                      z
                          EXPLANATORY MEMORANDUM
As part of the reform of the common agricultural policy, it is proposed
to Introduce a system of compensatory aid linked directly or indirectly
to the cultivated area or the number of animals kept by each farmer.
Experience with the administration and monitoring of aid of this type has
shown that, unless a totally new approach is adopted, which takes account
in particular the new techniques which exist in the market, that such aid
engenders would be extremely burdensome for the Member States. In this
context, account must also be taken of the cost of administrative
verification and on-the-spot checks, In view of the large number of
beneficiaries, the uses to which the cultivated areas can be put and the
variety and number of animals; for the reasons given above, the danger of
fraud is also great.
Article 8 of Council Regulation (EEC) NO 729/70 of 21 April 1970 on the
financing of the common agricultural policy, stipuites that Member States
are to take the measures necessary to satisfy themselves that
transactions financed by the European Agricultural Guidance and Guarantee
Fund are actually carried out and are executed correctly and to prevent
and deal with irregularities (Article 23 of Council Regulation (EEC) No
4253.88 stipulates the same as regards the EAGGF Guidance Section.)
However, the Commission considers it necessary, particularly in the
context of the reform of the common agricultural policy, to propose a
common framework for the establishment of an Integrated administration
and control system In all the Member States before 1 January 1993.
This system, which covers all the compensatory aid provided for In the
proposal for the reform of the common agricultural policy, Includes in
particular the creation of a computerized data base listing holdings,
with the eligible parcels and animals on each. This requires a numerical
 Identification system for parcels and animals. Provision is made for
annual statements for the purpose of checking the producers, parcels and
animals concerned. These statements are supplemented by more specific aid
applications required for the grant of the aid. All these elements should
make it possible to develop a harmonized system of control of all the
measures included in the system.
The Implementation of an integrated administration and control system for
the aid may represent a high additional budgetary burden for the Member
States. Consequently, provision should be made for community
part-financing. The percentages given in the draft Regulation are
calculated on the basis of an overall amount of ECU 100 million taken
 Into account the number of farms (50%), livestock numbers (25%) and the
agricultural area (25%)*
                                                              Although the
Commission considers that the Community contribution should be at least
of the order of ECU 100 million, compliance with budgetary discipline
means that this cannot be mentioned in the proposed Regulation.
 ---pagebreak---                                                                      3
                              Proposal for a
                   Council Regulation (EEC) N°      /91
                                     of
       establishing an integrated administration and control sytem
                     for certain Community aid schemes
THE COUNCIL OF THE EUROPEAN COMMUNITIES
Having regard to the Treaty establishing the European Economic Community,
and in particular Article 43 thereof,
Having regard to the proposal from the Commission (1),
Having regard to the opinion of the European Parliament (2),
Whereas, pursuant to Article 8 of Council Regulation (EEC) No 729/70 of
21 April 1970 on the financing of the common agricultural policy (3), as
last amended by Regulation (EEC) No 2048/88 (4), Member States must take
the measures necessary to satisfy themselves that transactions financed
by the European Agricultural Guidance and Guarantee Fund (EAGGF) are
actually carried out and are executed correctly, and prevent and deal
with irregularities; whereas Article 23 of Council Regulation (EEC)
No 4253/88 of 19th December 1988 laying down provisions for implementing
Regulation (EEC) No 2052/88 as regards coordination of the activities of
the different structural Funds between themselves and with the operations
of the European Investment Bank and the other existing financial
instruments (5) provides for the same obligation with regard to the
agricultural structures policy;
Whereas up to now the various aid schemes have been administered and
controlled by the Member States under separate rules for each scheme, as
a result of their heterogeneous structure; whereas, however, in
realigning the existing market measures a part of the reform of the
common agricultural policy, the Community is opting, to a large extent,
in both the crop and livestock sectors, for direct aid to producers;
Whereas, in order to adapt the administration and control mechanisms to
the new situation and improve their effectiveness and usefulness, it is
necessary to set up a new integrated administration and control system
covering the aid schemes for arable crops, beef and veal, sheepmeat,
goatmeat and milk and milk products, as well as specific measurees for
farming in mountain, hill and certain less-favoured areas; whereas
provision should be made for the possibility of including, at a later
date, other aid schemes linked to cultivated area;
1  OJ No L
2 OJ  No L
3  OJ No L 94, 28.4.1970, p. 13.
4  OJ No L 185, 15.7.1988, p. 1.
5  OJ No L 374, 31.12.1988, p. 1
 ---pagebreak--- Whereas, the various components of the integrated system will potentially
result in more effective administration and control in the case of
Community schemes not covered by this Regulation; whereas the Member
States should therefore be authorized to avail themselves of the system
on condition they do not in any way act in opposition to the provision
concerned;
Whereas, given the complexity of such a system and the large number of
aid applications to be processed, it is essential to use the appropriate
technical resources and administration and control methods; whereas as a
result, the integrated system should comprise, in each Member State, a
computerized data base, a numerical identification system for
agricultural parcels, annual statements by farmers, a harmonized control
system and, in the livestock sector, a system for the identification and
recording of animals;
Whereas the administration of the data collected and their use for the
verification of aid applications make it necessary to set up high-
performance computerized data bases allowing cross-checks in particular
to be made;
Whereas the identification of agricultural parcels is a key element in
the correct application of schemes linked to surface area; whereas
experience has shown that the existing methods have certain deficiencies;
whereas, therefore, provision should be made for a numerical
identification system set up initially, where necessary, with the aid of
remote sensing;
Whereas, in order to establish a general control programme for the entire
calendar year, 'it is essential for information relating to the location
and foreseeable utilization of agricultural areas to be made available to
the competent authorities as early in the year as possible; whereas, in
view of the dates for the lodging of aid applications, this objective
would not be achieved by using the applications alone; whereas, against
this background, provision should be made for the introduction of an
annual statement made by farmers providing the information necessary for
this purpose; whereas provision should be made for the receipt of aid to
be made conditional upon submission of an annual statement;
Whereas, in the livestock sector, effective control requires that animals
be identified and recorded; whereas, to this end, Council Regulation
(EEC) NO ..../91 on the identification and recording of animals lays down
specific provisions in this respect; whereas recourse should therefore be
had to that Regulation;
 ---pagebreak---                                                                   vT
Whereas the rules governing aid applications continue to be subject to
the provisions of each sector; whereas, however, for the sake of
simplification, Member States should be authorized to make provision for
the submission of one single application for several aid schemes;
Whereas one of the main advantages of the new system is the introduction
of a harmonized control system in each Member State avoiding any
duplication of sectoral checks of the same type; whereas, as a result,
the total number of checks can be reduced considerably; whereas aid
applications submitted must be subjected to a thorough administrative
check carried out with the aid of computerized data bases; whereas, up to
now, administrative checks have been supplemented systematically by
checks on the spot; whereas, to a large extent, on-the-spot checks on
areas may be replaced by remote sensing;
Whereas the expenditure involved in introducing the integrated system may
represent a high additional budgetary burden for Member States; whereas,
consequently, provision should be made for part-financing for a certain
period; whereas the diversity of existing production structures in the
Member States must be taken into account; whereas, as a result, provision
should be made for sharing out the financial contribution in a way which
takes into account in particular the number of agricultural holdings,
livestock numbers and the agricultural area in the Member States,
HAS ADOPTED THIS REGULATION :
                                 Article 1
         Each Member State shall set up before 1 January 1993 an
         integrated administration and control system applying to :
          (a) in the crop sector :
                          the aid scheme for certain large-scale crop
                          producers established by Regulation (EEC)
                          NO.../91 and
          (b) in the livestock sector :
                          the special premium for beef producers and the
                          premium for maintaining suckler cows introduced
                          by Regulation (EEC) NO 805/68,
                          the dairy-cow premium introduced by regulation
                          (EEC) NO      /91
                          the premium for sheepmeat producers introduced
                          by Regulation (EEC) NO 3013/91,
                          the specific measures for farming in mountain,
                          hill and certain less-favoured areas introduced
                          by Regulation (EEC) NO 2328/91 concerning
                          compensatory allowances for cattle, sheep, goats
                          and equidae, hereinafter called "Community
                          schemes".
 ---pagebreak---                                                                      c
2. The Commission may, in accordance with the procedure laid down in
Article 13 of Regulation (EEC) NO 729/70, provide that the integrated
system shall apply to other aid schemes.
3. For the purposes of applying Community aid schemes not covered by this
Regulation and not with standing the specific provisions specified under
such schemes, notably with regard to the terms under which aid may the
granted, the Member States may incorporate in their administration and
control mechanisms one or more of the administrative, technical or data-
processing components of the integrated system.
Before availing themselves of this possibility, the Member States shall
inform the Commission in good time of their intention.
The Commission shall ensure that such action by the Member States does
not prejudice compliance with the provisions of the sectoral Regulations
or of this Regulation.
                                Article 2
The integrated system shall comprise the following elements :
         (a)     a computerized data base;
         (b)     a numerical identification system for agricultural
                 parcels;
         (c)     a numerical system for the identification and recording
                 of animals;
         (d)     an annual statement;
         (e)     the aid applications;
         (f)     a harmonized control system.
                                Article 3
         The computerized data base shall record, within a time limit to
         be fixed and for each agricultural holding, the information
         given in the annual statement and the data obtained from aid
         applications submitted under a Community scheme. This data base
         must in particular make it possible for the bodies responsible
         for checking to have real-time access to the data relating to at
         least three consecutive calendar years and three consecutive
         marketing years.
         The Commission may authorize Member States to set up
         decentralized data bases on condition that these, and the
         administrative procedures for the recording of and access to
         data, are designed homogeneously throughout the territory of the
         Member state and that they are compatible with one another.
                                Article 4
The numerical identification system for agricultural parcels shall be
established on the basis of land register maps or other cartographic
reference or aerial photographs or satellite pictures.
 ---pagebreak---                                                                   \
                                 Article 5
The system for the identification and recording of animals shall
include :
 -        identification by means of marking of animals eligible for aid
          governed by this Regulation and
          the keeping of a permanent record by each farmer, in which the
          identification of each animal is entered and, where applicable,
          all other necessary information.
Subject to specific provisions, this system shall be established in
accordance with Regulation (EEC) N° ..../91.
                                 Article 6
1.        In order to be eligible under a Community scheme governed by
          this Regulation, each farmer shall submit, for each calendar
          year and by a date to be fixed, an annual statement indicating :
                  the utilized agricultural areas, including areas under
                  forage crops, broken down by agricultural parcel and the
                  use to which he plans to put them during the year;
          -       the agricultural parcels covered by a set-aside measure
                  for arable land and those laid fallow;
                  the number and species of animal for which he intends to
                  apply for aid under a Community scheme, and
          -       where applicable, any other necessary information.
2.        For each of the agricultural parcels declared, farmers shall
          indicate the area in hectares and in acres and its location by
          reference to the identification number allocated to it in the
          numerical system for identification of agricultural parcels.
3.        Agricultural parcels not indicated in the annual statement shall
          not be considered for the grant of a financial benefit under a
          Community scheme. Statements may be corrected before a date to
          be fixed.
4.        Farmers applying only for aid under a scheme not directly linked
          to agricultural area may be exempted from the requirement to
          submit an annual statement.
                                 Article 7
In order to be eligible under a Community scheme, each farmer shall
present an aid application to the competent authority by a date or during
certain periods to be laid down.
 ---pagebreak---                                                                -?
Where aid applications must be accompanied by additional documents, the
latter shall be considered to be part of the application.
Member States may adopt provisions allowing a single application to cover
several Community schemes.
                                Article 8
The harmonized system shall cover all aid applications submitted, in
particular as regards administrative checks, on-the-spot checks and
verification by aerial or satellite remote sensing.
                                Article 9
1.       Member states shall carry out administrative checks to verify
         the accuracy and truthfulness of aid applications.
2.       Administrative checks shall be complemented by on-the-spot
         checks covering a sample of agricultural holdings. For all
         these checks, Member States shall draw up a sampling plan on the
         basis of the annual statements.
3.       Each Member State shall designate an authority responsible for
         coordinating and monitoring the checks for each of the sectors
         concerned.
4.       National authorities may, under conditions to be laid down, use
         remote sensing to determine the area of agricultural parcels,
         identify crops and verify their status. They may delegate part
         of this work to specialized agencies and/or firms on condition
         that they retain control over and responsibility for the work
         carried out.
                                Article 10
Member States shall take the necessary measures to ensure the protection
of the data collected.
                                Article 11
         The Community shall contribute to the expenditure incurred by
         Member States pursuant to this Regulation for the introduction
         of the computerized and checking structures and for the
         acquisition of aerial photographs or satellite pictures and
         analysis thereof. Expenditure on the updating of land register
         maps and geographical maps shall not be part-financed by the
         Community.
 ---pagebreak---                                                              3
2.       The financial contribution shall be granted for a period of \
         three years from 1 January 1992 within the limits of the
         appropriations allocated for this purpose.
         The total amount shall be shared between the Member States as
         follows :
                  Belgium                   2.3 %
                  Denmark                   2.4 %
                  Germany                 10.1  %
                  Greece                    8.7 %
                  Spain                   18.1  %
                  France                  14.6  %
                  Ireland                   4.5 %
                  Italy                   20.1  %
                  Luxembourg                0.6 %
                  Netherlands               3.0 %
                  Portugal                  5.7 %
                  United Kingdom            9.9 %
The Community's financial contribution shall not be greater than 50 % of
the payments made by the Member States concerned in respect of the budget
year and relating to the eligible expenditure within the meaning of
paragraph 1.
                                 Article 12
         Commission shall be informed at regular intervals of the
         progress of work on the implementation of the integrated system.
         Commission agents may carry out checks, in particular at the
          specialized agencies and firms referred to in Article 9(4), on
         all the measures taken to implement this Regulation and on the
         eligibility of the expenditure declared for Community part-
          financing.
         Where necessary, the Commission shall take the measures needed
         to ensure that the integrated system is implemented in
          accordance with this regulation.
          Notwithstanding the responsibilities of the Member States for
          the proper implementation and application of the integrated
          system, the Commission may, in order to facilitate the
          establishment, monitoring and utilization of checks by remote
          sensing, in particular with a view to providing the competent
          authorities of the Member States with technical advice, seek the
          assistance of specialized bodies or persons.
 ---pagebreak---                                                                1o
                               Article 13
1.       The Commission shall adopt detailed rules for the application of
         this Regulation in accordance with the procedure laid down in
         Article 13 of Regulation (EEC) N° 729/70. These detailed rules
         shall cover in particular :
         (a)     the necessary adjustments in the event that the scope of
                 the integrated system is extended;
         (b)     the creation of computerized data bases, their updating,
                 computerized checks and access to recorded data;
         (c)     the creation of the numerical identification system for
                 agricultural parcels;
         (d)     the dates laid down for the lodging of the annual
                 statement, for any amendments thereto and exemption from
                 the requirement to submit an annual statement;
         (e)     the minimum amount of information to be included in the
                 annual statements and aid applications;
         (f)     the administrative and on-the-spot checks and the checks
                 by remote sensing;
         (g)     the definition of the terms farmer, agricultural
                 holding, utilized agricultural area and agricultural
                 parcel;
         (h)     the establishment of an advance payment scheme in the
                 framework of Community part-financing;
         (i)     the protection of data collected and used in the
                 integrated system;
         (j)     measures necessary to ensure the proper implementation
                 of the integrated system;
         (k)     transitional provisions for the start-up period of the
                 system.
                                Article 14
This Regulation shall enter into force on the seventh day following its
publication in the Official Journal of the European Communities.
This regulation shall be binding in its entirety and directly applicable
in all Member States.
Done at Brussels,                                For the Council,
 ---pagebreak---                                                                                   AA
      FINANCIAL STATEMENT
                                                                        DATE:
1.  BUDGET HEADING:     ARTICLE B1-360                APPROPRIATIONS:   15 MIO ECU
2.  TITLE:     PROPOSED COUNCIL REGULATION FOR ESTABLISHING AN INTEGRAL SYSTEM FOR THE
               MANAGEMENT AND CONTROL RELATING TO CERTAIN AID SCHEMES.
3.  LEGAL BASIS:     ARTICLE 43 OF THE EEC TREATY.
4.  AIMS OF PROJECT:
      FINANCIAL PARTICIPATION BY THE COMMUNITY IN THE EXPENSES INCURRED IN CERTAIN TYPES
      OF CONTROL BY MEMBER STATES WITHIN THE FRAMEWORK OF THE REFORM OF THE CAP.
      TECHNICAL SUPPORT PARTICULARILY IN THE FRAMEWORK OF EFFECTING CONTROL BY TELEDETECTION
      BY THE MEMBER STATES AUTHORITIES BY-ORGANISATIONS OR PERSONS ACTING FOR THE COMMISSIOII
                                              PERIOD OF      CURRENT FINAN-   FOLLOWING FINAN-
5.  FINANCIAL IMPLICATIONS                    12 MONTHS      CIAL YEAR (91)   CIAL YEAR (92)
                                              Mio ECU            Mio ECU         Mio ECU
5.0   EXPENDITURE
      - CHARGED TO THE EEC BUDGET
        (REFUNDS/INTERVENTIONS)
                                                                                  15
      - NATIONAL ADMINISTRATION
      - OTHER
5.1   RECEIPTS
      - OWN RESSOURCES OF THE EEC
        (LEVIES/CUSTOMS DUTIES)
      - NATIONAL
                                         1993           1994          1995           1996
5.0.1   ESTIMATED EXPENDITURE            5©             So
5.1.1   ESTIMATED RECEIPTS
5.2   METHOD OF CALCULATION:
      THE MAXIMUM AMOUNT AUTHORISED BY THE EAGGF GUARANTEE FUND , DIVIDED BETWEEN THE DIFFERJEN
      PHASES OF INTRODUCTION OF THE SYSTEM.
6.0   CAN THE PROJECT BE FINANCED FROM APPROBIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE
      CURRENT BUDGET?                                                                YES/Mb
6.1   CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT
      BUDGET?                                                                        YES>N>
6.2   IS A SUPPLEMENTARY BUDGET NECESSARY?                                           IHJVNO
6.3   WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY?                                YES JÊËË
OBSERVATIONS:
(1) ESTIMATED EXPENDITURE : 5 EXPERTS AT 100 000 ECU X 3 YEARS = 1.5 MIO ECU
THIS EXPENDITURE IS INCLUDED IN POINTS 5.0 AND 5.0.1. BELOW.
(2) THIS EXPENDITURE IS COVERED BY THE CREDITS WRITTEN IN CHAPTERS 30 TO 40.
 ---pagebreak---  ---pagebreak---                                                                                  4-e,
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