3. 8.89 Official Journal of the European Communities No L 225/33 COMMISSION REGULATION (EEC) No 2381/89 ’ ~ of 2 August 1989 laying down detailed rules for granting compensation for tuna for the canning industry THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty. establlshmg the Europeanr Economic Commumty, Having regard to Council Regulation (EEC) No 3796/81 - of 29 December 1981 on the common organization of the market in fishery products(!), as last amended by Regulation (EEC) No 1495/89 (3), and in particular Article 17a (10) thereof; Whereas Article 17a of Regulation (EEC) No 3796/81 provides for an allowance to be paid to producers’ organi- zations if it is found, in respect of a given quarter, that the prices of given products are lower than a given triggering threshold ; Whereas for the purposes of applying this allowance system the selling price referred to in Article 17a of Regulation (EEC) No 3796/81 should be defined; Whereas, for the quantities in respect of which entitlement to the allowance has been established, rules should be laid down governing the submission of applications by the parties concerned in order to obtain payment of the compensation ; ‘Whereas certain - minimum elements of the control procedure should be laid down, while it should be left to the Member-States’ control authorities to adopt suitable provisions for effective regular monitoring of the system introduced ; Whereas, this system ‘is open to the risk of specific fraud, in particular as regards the fact that the application and - - payment of compensation are decided after the expiry of . the quarterly periods concerned ; whereas, with a view to- minimizing these risks; in the case of a false declaration made intentionally or by gross negligence, the beneficiary - must pay to the Member State an amount equal ‘to 25 % of the compensation -concerned without prejudice to the recovery of the compensation and interest in question ; 4 Whereas, steps should be taken to see that an infrin- gement with limited implications to the tuna compen- sation scheme does not involve the total withdrawal of the right to compensation but only a standard reduction thereof ; - Whereas, to ensure the correct functioning of the system . in question certain rules-should be laid down, regarding the notifications -to be made by the Member States; Whereas Commission Regulation (EEC) No 2469/86 of 31 July 1986 laying down detailed rules for the granting () OJ No L 379, 31. 12. 1981, p. 1 () OJ No L 148, 1. 6. 1989, p. 1 of compensation to producers of tuna for the canning - industry (}) should be repealed; Whereas the measures provided for in this Regulation are in accordance -with the opinion. of the Management Commiittee for Fishery Products, HAS ADOPTED THIS REGULATION : Article 1 ‘This Regulation lays down detailed rules of application for the granting of the allowance referred to in Article 17a of Regulation (EEC) No 3796/81, hereinafter referred to as the ‘basic Regulation’. Article 2 1. The grant of the allowance and its maximum amount shall be determined by means of a Regulation adopted in accordance with the procedure laid down in Article 33 of the basic-Regulation,- where it has been ascertained that the conditions laid down in Article 17a (1) of the basic Regulation are met for the quarter in question. 2. The allowance shall be granted to producers’ organi- zations, subject-to the limits laid down in Article 17a (4) of the basic Regulation, in respect of the products listed in Annex- III to-the said Regulation, caught by its members and sold and delivered to canning industries located within the customs territory of the Community with a view.to their complete and -definitive processing into products falling within CN code 1604, Article 3 The average selling price recorded on - the Community market referred to in the. first indent of Article 17a°(1) of the basic Regulaion shall be determined by - the Commission each month on the basis of the monthly average prices notified by the Member States pursuant to Article 17 (4). of the basic Regulation. Calculation of'th‘ese monthly average prices by Member States shall be based on selling prices as invoiced by the producers’ organizations or their members, at the stage of the first-hand sale in the Community. () OJ No L 211, 1. 8. 1986, p. 19. \ -