No L 119/16 Official Journal of the European Communities 16. 5. 96 COMMISSION REGULATION (EC) No 887/96 of 15 May 1996 amending Regulation (EEC) No 2677/85 laying down implementing rules in respect of the system of consumption aid for olive oil THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Council Regulation No 136/66/EEC of 22 September 1966 on the establishment of a common organization of the market in oils and fats('), as last amended by the Act of Accession of Austria, Finland and Sweden, and Council Regulation (EC) No 3290/94 (3, and in particular Article 11 (8) thereof, Whereas Article 5 (2) of Commission Regulation (EEC) No 2677/85 (%), as last amended by Regulation (EC) No 1292/95 (*), provides for the application of penalties to undertakings that have committed irregularities; whereas, with a view to clarifying the facts constituting infringe- ments and to ensuring that the penalties applied are commensurate with the gravity of each case, the provi- sions concerned should be amended; Whereas a reasonable time limit should be set for the further enquiries and investigations referred to in Articles 9 (3) and 11 (2) of Regulation (EEC) No 2677/85; whereas, to clarify certain existing provisions and in particular to stipulate the percentage of extra checks to be made upstream and downstream of packaging undertakings, Article 12 of Regulation (EEC) No 2677/85 should be amended; Whereas the measures provided for in this Regulation are in accordance with the opinion of the Management Committee for Qils and Fats, HAS ADOPTED THIS REGULATION: Article 1 Regulation (EEC) No 2677/85 is amended as follows: 1. Article 5 (2) is replaced by the following: ‘2. Where the competent authority in any Member State finds that the oil in question does not meet any of the definitions referred to in paragraph 1: () OJ No 172, 30. 9. 1966, p. 3025/66. () Of No L 349, 31. 12. 1994, p. 105. () OJ No L 254, 25. 9. 1985, p. 5. () O No L 125, 8. 6. 1995, p. 11. — if the quality ascertained meets one of the other definitions set out in the Annex to Regulation No 136/66/EEC, it shall apply a penalty equal to between 20 % and 80 % of the monthly average of consumption aid applied for in the 12 months preceding that in which the samples were taken, depending on the seriousness of the infringement; — in all other cases, it shall immediately withdraw the undertaking’s approval for a period of one to five years, depending on the seriousness of the infringe- ment, any other penalties notwithstanding. In addi- tion, the undertaking in question shall be required to pay the Member State an amount equal to twice the average monthly consumption applied for in the 12 months preceding that in which the samples were taken. The penalties provided for in the first subparagraph shall not apply where the packaging undertaking proves to the satisfaction of the Member State that the failure of the oil to meet the definitions in question is the result of exceptional circumstances beyond the undertaking’s control. The amounts referred to in the first subparagraph shall be deducted from the expenditure of the European Agricultural Guidance and Guarantee Fund by the authorities or paying agencies of the Member States. Only those months in which aid applications are lodged shall be taken into account when calculating the monthly average. Where irregularities other than those referred to in the first subparagraph are observed, the competent authori- ties shall be notified immediately in each case. . Article 9 (3) is replaced by the following: - ‘3. The Member States shall pay the aid within 150 days of submission of aid applications in respect of quantities recognized as qualifying for the aid follo- wing on-the-spot checks. However, that time limit may be extended where further investigations prove neces- sary following such checks. The Member States shall determine that additional time limit, which may not, however, exceed 12 months, and shall notify the Commission thereof. The additional time limit may be extended by six months in exceptional, duly substanti- ated cases notified to the Commission.