6.1.2004 Official Journal of the European Union L2/3 COMMISSION REGULATION (EC) No 4/2004 of 23 December 2003 laying down detailed rules for the application of Council Regulation (EEC) No 4045/89 on scrutiny by Member States of transactions forming part of the system of financing by the Guarantee Section of the European Agricultural Guidance and Guarantee Fund THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Council Regulation (EEC) No 4045/89 of 21 December 1989 on scrutiny by Member States of transactions forming part of the system of financing by the Guarantee Section of the European Agricultural Guidance and Guarantee Fund and repealing Directive 77[435/EEC ('), as last amended by Regulation (EC) No 2154/2002 (3, and in particular Article 19 thereof, Whereas: (1) In view of the deletion of the provisions of Regulation (EEC) No 4045/89 concerning the reimbursement by the Community of expenditure incurred by the Member States in the framework of the scrutinies provided for by that Regulation, the rules implementing those provisions in Commission Regulation (EEC) No 1863/90 of 29 June 1990 laying down detailed rules for the application of Council Regulation (EEC) No 4045/89 on scrutiny by Member States of transactions forming part of the system of financing by the Guarantee Section of the European Agricultural Guidance and Guarantee Fund and repealing Directive 77[435/EEC (), as last amended by Regulation (EC) No 2278/96 (%), serve no further purpose. (2) It is further appropriate to lay down detailed rules concerning the procedure for the reduction of the minimum number of scrutinies as provided for in the third subparagraph of Article 7(1) of Regulation (EEC) No 4045/89 establishing a system of mutual assistance between Member States for the purpose of carrying out the scrutinies. (3)  Regulation (EEC) No 4045/89 requires Member States to send to the Commission a number of communications. As the standardisation of the form and content of such communications facilitates their use and ensures a uniformity of approach, it is appropriate to adopt detailed rules as to their form and content. (4)  Therefore, in view of the extent of the changes required and in the interest of clarity, Regulation (EEC) No 1863/ 90 should be replaced. (5)  The measures provided for in this Regulation are in accordance with the opinion of the Committee for the European Agricultural Guidance and Guarantee Fund, () OJ L 388, 30.12.1989, p. 18. () OJ L 328, 5.12.2002, p. 4. () OJ L 170, 3.7.1990, p. 23. () OJ L 308, 29.11.1996, p. 30. HAS ADOPTED THIS REGULATION: CHAPTER I SUBJECT MATTER Atrticle 1 This Regulation lays down detailed rules for the application of Regulation (EEC) No 4045/89. CHAPTER II APPLICATION FOR REDUCTION OF THE MINIMUM NUMBER OF SCRUTINIES Atticle 2 The request for a reduction of the number of scrutinies referred to in the third subparagraph of Article 7(1) of Regulation (EEC) No 4045/89 shall contain detailed information as set out in Annex [ to this Regulation. Atticle 3 The decision to grant a reduction of the minimum number of scrutinies as provided for in the third subparagraph of Article 7(1) of Regulation (EEC) No 4045/89 shall be based on an assessment of the benefits in respect of the protection of the Communities' financial interests and shall take into account the following criteria: (a) the risks identified; (b) the approach adopted; (c) the rate of completion of the minimum number of scruti- nies for the previous three scrutiny periods and the number and rate of timely completion of mutual assistance requests for the previous three scrutiny periods; (d) the feasibility of the proposed approach and any particular scrutiny experience of the Member State(s) concerned with the approach or in the sector concerned; (e) the extent to which scrutineers of one Member State may participate in the scrutinies under the joint exercise in the other Member State(s); (f) the confirmation that the other Member State(s) participate, to the extent required, in the joint exercise, if that exercise is not included in the other Member State(s) programme handed in under Article 10(1) of Regulation (EEC) No 4045/89;