ANNEX VIII U.K.Requirements for approval and control of SAs by Member States

CHAPTER II U.K.

2. Controlling the performance of SAs U.K.

2.1. Member States will have the responsibility for checking the soundness and appropriateness of the certification functions carried out by the SAs. U.K.

Prior to the three-year renewal period, national authorities shall carry out an inspection visit to the registered office of the SA.

Whenever there are reasonable doubts about the quality and accuracy of the certificates drawn up by a particular SA, the competent authority shall make an on the spot inspection to the registered office of the company in order to verify that the rules contained in this Annex are applied correctly.

The Member States shall pay particular attention while inspecting the SA, to the working methods and operational procedures of the SA in carrying out its functions, as well as examining at random, files concerning certificates presented to the paying agency in the procedure for payment of refunds.

Member States may employ external and independent auditors to carry out the task of controlling the SAs in the framework of the procedure set up in this Annex.

Member States may take any other measures they consider necessary for a proper control of the SAs.

2.2. Member States authorities must pay particular attention, when checking the claims for export refunds supported by certificates from SAs, to the following aspects of the certification: U.K.

(a)

requiring that the work done is described in the certificates and satisfying itself that the work as described was sufficient to support the conclusions drawn in the certificate;

(b)

inquiring into all discrepancies of the certificates submitted;

(c)

requiring the certificates to be issued within a reasonable time limit, depending of the case at hand.