1.Member States shall take all necessary measures to ensure compliance with this Regulation. Those measures shall include full administrative checking of aid applications, which shall be supplemented by on-the-spot checks as specified in paragraphs 2 to 8.
2.The authority responsible for checking shall conduct checks on the products entering storage:
(a)for meat products, at the time of placing into storage;
(b)for olive oil, prior to sealing of vats;
(c)for other products, within 30 days from the date of placing into storage or from the date of receipt of the information referred to in Articles 10(2)(f) or 17(2)(f) for the products already in storage.
Without prejudice to Articles 26, 27(3) and point (a) of the first subparagraph of paragraph 5 of this Article in order to ensure that the products stored are eligible for aid, a representative sample of at least 5 % of the quantities placed in storage shall be physically checked to ensure that, as regards, inter alia, the weight, identification, nature and composition of products, storage lots conform to the particulars in the application for concluding a contract.
3.Where the Member State can offer duly justified reasons, the 30-day limit laid down in paragraph 2 may be extended by 15 days.
4.If the checks show that the products stored do not correspond with the quality requirements mentioned in Annex I, the security referred to in Article 9(2)(h) and Article 16(2)(i), if lodged, shall be forfeit.
5.The authority responsible for checking shall:
(a)seal the products by contract, storage lot/batch or a smaller quantity at the time of the check provided for in paragraph 2; or
(b)make an unannounced check to ensure that the contractual quantity is present in the storage place.
The check referred to in point (b) of the first subparagraph shall correspond to at least 10 % of the total quantity under the contract and shall be representative. Such checks shall include an examination of the stock records as referred to in Article 22(3) and supporting documents, such as weigh tickets and delivery dockets, and a verification of weight, type of products and their identification relating to at least 5 % of the quantity subject to the unannounced check.
6.At the end of the contractual storage period, the authority responsible for checking shall, in respect of each contract, by sampling, verify weight and identification of the products in storage. For the purposes of this check, the contracting party shall inform the competent body, indicating the storage lots/batches/vats/silos involved, at least five working days before:
(a)the end of the maximum contractual storage period; or
(b)the start of removal operations where the products is removed before the expiry of the maximum contractual storage period.
The Member States may accept a shorter time limit than five working days.
7.Where the option in paragraph 5(a) applies, the presence and integrity of the seals applied shall be verified at the end of the contractual storage period. Sealing and handling costs shall be borne by the contracting party.
8.Any samples taken for verification of the quality and composition of the products shall be taken by the officials of the authority responsible for checking or in their presence.
A physical check or verification of weight shall be conducted in the presence of those officials at the weighing procedure.
For the purposes of audit trail, all stock and financial records and documents checked by those officials shall be stamped or initialled during the control visit. Where computer records are verified, a copy shall be printed and retained on the inspection file.
1.The authority responsible for checking shall draw up a control report on each on-the-spot check. The report shall describe precisely the different items checked.
The report shall set out:
(a)the date and time of commencement of the check;
(b)details of advance notice given;
(c)the duration of the check;
(d)the responsible persons present;
(e)the nature and extent of the checks carried out, providing, in particular, details of the documents and products examined;
(f)the findings and conclusions;
(g)whether any follow-up is required.
The report shall be signed by the official responsible and countersigned by the contracting party or, where applicable, by the operator of the warehouse and shall be included in the payment file.
2.In case of significant irregularities affecting at least 5 % of the quantities of products covered by a single contract subject to the check, the verification shall be extended to a larger sample to be determined by the authority responsible for the checking.
3.The authority responsible for checking shall record any case of non-compliance on the basis of the criteria of gravity, extent, duration and repetition that may result in exclusion in accordance with Article 38(1), and/or in the repayment of an unduly paid aid, including interests where applicable, in accordance with paragraph 4 of that Article.
1.Where the competent authority of a Member State finds that a document presented by a tenderer or applicant for the attribution of the rights deriving from this Regulation provides incorrect information and where the incorrect information concerned is decisive for the attribution of that right, the competent authority shall exclude the tenderer or applicant from the procedure of granting private storage aid for the same product for which the incorrect information has been given for a period of one year from the moment when a final administrative decision establishing the irregularity has been taken.
2.The exclusion provided for in paragraph 1 shall not apply if the tenderer or applicant proves, to the satisfaction of the competent authority, that the situation referred to in that paragraph is due to force majeure or obvious error.
3.Unduly paid aid shall be recovered, with interest from the operators concerned. The rules laid down in Article 73 of Commission Regulation (EC) No 796/2004(1) shall apply mutatis mutandis.
4.Implementation of administrative penalties and recovery of unduly paid amounts, as provided for in this Article, are without prejudice to communication of irregularities to the Commission pursuant to Commission Regulation (EC) No 1848/2006(2).