No L-42/6 Official Journal of the European Communities 16. 2. 90 - COUNCIL REGULATION (EEC) No 386/90 of 12 February 1990 on the monitoring carried out at the time of export of agricultural products receiving refunds or other amounts 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 ('), Having regard to the opinion of the European Parlia- ment (%), Whereas, pursuant .to Article 8 of Council Regulation (EEC) No 729/70 of 21 April 1970 on the financing of the common agricultural policy (%), as last amended by Regulation (EEC) No 2048/88 (¥), Member States are to 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, to prevent and deal with irregularities and to recover sums lost as a result of irregularities or negligence ; Whereas, in its special report on the system of payment of agricultural export refunds (%), and in its annual report concerning the financial year 1987 (%), the Court of Audi- tors drew attention to a number of shortcomings in certain Member States in the monitoring of agricultural products for which refunds or other amounts are granted on export; Whereas the. organization which, in principle,~ would afford the best safeguards without giving rise to economic constraints and administrative costs outweighing the pros- pective gains for Community. finances would be one which combined physical monitoring -on. export and the auditing of accounts ; Whereas, in order to improve and harmonize the measures taken by the Member States, a Community monitoring -system should be set up; Whereas such a monitoring system must be based in : particular on physical spot checks of goods at the_time of export, including goods exported under a simplified procedure, and on the scrutiny of the payment applica- tion files by the paying agencies ; whereas the audit to be conducted ex post facto in the undertakings concerned by the competent bodies is governed by 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 () OJ No C 29, 6. 2. 1987, p. 5. () OJ No C 190, 20. 7. 1987, p. 144. () O No L 94, 28. 4. 1970, p. 13. () OJ No L 185, 15. 7. 1988, p. 1. () OJ No C 215, 26. 8. 1985, p. 1. (9 OJ No C 316, 12. 12. 1988, p. 68. Agricultural Guidance and Guarantee Fund and repealing Directive 77/435/EEC(); Whereas the number of physical checks, including labora- tory analyses where these prove necessary must be increased in view of the importance of -agricultural refunds within the Community budget, HAS ADOPTED THIS REGULATION : Article 1 1. This Regulation sets down certain procedures. for. monitoring whether operations conferring entitlement to the payment of refunds on and all other amounts in respect of export transactions have been actually carried out and executed correctly. 2. For the purposes-of this Regulation, the term ‘goods’ means products in respect of which the amounts referred to in paragraph 1 are paid in accordance with Community provisions adopted within the framework of the common agricultural policy. Article 2 Member States shall carry out: (a) physical checks on goods in accordance with Article 3, at the time the customs export formalities are completed and before authorization is given for the goods in question to be exported, on the basis of documents submitted in support of the export declara- tion, and (b) scrutiny of the documents in the payment application file in accordance with Article 4. Article 3 1.  Without prejudice to any specific provisions which require more extensive checks, the physical checks referred to in Article 2 (a) must: (a) take the form of spot checks conducted frequently and without prior warning ; (b) in any event, relate to not less than 5 % of the export declarations in respect of - which applications - are submitted for the amounts specified.in Article 1 (1). 2. In accordance with the detailed rules to be deter- mined under the procedure referred to in Article 6, the rate mentioned in 1 (b) shall apply: () OJ No L 388, 30. 12. 1989, p. 18.