The Common Agricultural Policy (Protection of Community Arrangements) (Amendment) Regulations 2001

Explanatory Note

(This note is not part of the Regulations)

These Regulations, which come into force on 15th October 2001, amend the Common Agricultural Policy (Protection of Community Arrangements) Regulations 1992 (S.I. 1992/314) (“the principal Regulations”).

Article 8 of Council Regulation (EC) No. 1258/1999 (OJ No. L160, 26.6.1999, p. 103) (on the financing of the common agricultural policy) requires Member States to take the measures necessary to satisfy themselves that transactions financed by the European Agriculture Guidance and Guarantee Fund are actually carried out and are executed correctly, to prevent and deal with irregularities and to recover sums lost as a result of irregularities and negligence. Council Regulation (EEC) No. 4045/89 (OJ No. L388, 30.12.89, p. 18) provided for the scrutiny by Member States of transactions forming part of the system of financing by the Guarantee Section of the Fund (“the Guarantee Section”). It has been amended by Council Regulation (EC) No. 3094/94 (OJ No. L328, 20.12.94, p. 1), in particular so as to extend the scope of scrutiny of commercial documents and also to exclude from its application measures covered by the integrated administration and control system established by Regulation (EEC) No. 3508/92 (OJ No. L355, 5.12.92, p. 1), as amended, and otherwise involving direct payments to producers.

As amended, the principal Regulations provide for implementation of these Community provisions in relation to Guarantee Section transactions subject to scrutiny. They also take account of changes in Community legislation specifying the commodities to which they must apply and, in implementation of Article 8 of Council Decision 94/728 (EC, Euratom) (OJ No. L293, 12.11.94, p. 9) on the system of the European Communities' own resources, make provision for the collection of own resources derived from agricultural export levies and other duties.

The principal changes introduced by these Regulations—

(a) provide definitions for “Communities' agricultural levy own resources” and “specified own resources levy payer” and amend the definitions of “regulated transaction”, “Regulation 4045/89”, “specified beneficiary”, “specified contributor”, “specified person” and “specified commodity” (regulation 2);

(b) amend regulation 7 conferring on authorised officers and enforcement authorities certain powers in relation to scrutiny under Articles 5 and 6 of Regulation 4045/89 (regulation 4);

(c) amend regulation 8 to—

(i) prescribe offences for failure to comply with determinations made or directions given under Article 5(3) of Regulation 4045/89;

(ii) make amendments (consequential on the assimilation by the Criminal Justice (NI) Order 1994 (S.I. 1994/2795) (NI 15) of fines in Northern Ireland to those in Great Britain) to the penalties prescribed in respect of such offences;

(iii) amend the provisions prescribing the offence relating to furnishing of false or misleading information so that it also relates to the making, signing, delivery and transmission of documents and the making of entries in a record or register, and the provisions prescribing a penalty for that offence on summary conviction, so that it also includes inprisonment for a period of up to 3 months (regulation 5);

(d) amend regulation 10 so as to apply the due diligence defence in respect of failures to comply with requirements under Article 5(3) of Regulation 4045/89 (regulation 6);

(e) revoke regulation 4 pursuant to the termination of the special measures for peas, field beans and sweet lupins, including the repeal of Commission Regulation (EEC) 3540/85 by Commission Regulation (EC) 658/96 (regulation 7).

No regulatory impact assessment has been prepared in respect of these Regulations.