In the event of a false declaration made deliberately or through gross negligence, the Member State shall exclude the producer organisation from Community withdrawal compensation and entitlement to make withdrawals as referred to in Article 15(2)(a) of Regulation (EC) No 2200/96 for one to five marketing years following that in which the irregularity is detected, depending on the seriousness of the irregularity.

(c) checks that the accounts are correct, in particular the veracity of net receipts by the producer organisations as declared in their payment applications, the proportionality of any withdrawal costs, the entries in the accounts regarding the receipt by the producer organisations of the Community withdrawal compensation and any amounts thereof paid on to members, ensuring that these tally;

Where an infringement of the allowance scheme, with limited implications, has been committed by a beneficiary of the allowance and it is shown by the same beneficiary, to the satisfaction of the Member State concerned, that such infringement was committed without intention to defraud or as the result of grave negligence, the Member State shall withhold an amount equal to 10 % of the Community withdrawal price for Atlantic sardines applicable to the quantities which are the subject of the infringement and which were intended to qualify for the allowance or in respect of which the allowance has been granted.

Article 23(3) of Regulation (EC) No 2200/96 determines the Community withdrawal compensation for the products listed in Annex II thereto.

Whereas, in the case of tomatoes intended for processing, the Community withdrawal compensation plus any supplement set by the Member States may not exceed the minimum processing price set for the marketing year in question to prevent withdrawal of those products from being an alternative to processing;

Where paragraph 1 is applied to any one of the products listed in Annex II which meet the relevant standards, producer organisations and their associations shall pay their producer members the Community withdrawal compensation indicated in Annex V, up to a limit:

whereas, however, that Article provides that the amount of the supplement added to the Community withdrawal compensation may not exceed the maximum level of withdrawal prices applying in the 1995/96 marketing year;

for the products referred to in Annex II to Regulation (EC) No 2200/96, to the Community withdrawal compensation referred to in Article 26 of that Regulation;

In the interests of clarity, however, the maximum supplements to the Community withdrawal compensation referred to in the second subparagraph of Article 15(3) of Regulation (EC) No 2200/96 should be fixed.

Whereas the second subparagraph of Article 15(3) of Regulation (EC) No 2200/96 provides that Member States may set a maximum level for the supplement to the Community withdrawal compensation;

Article 2 of this Regulation notwithstanding, Regulation (EC) No 411/97 shall apply to the payment of withdrawal compensation for products not listed in Annex II to Regulation (EC) No 2200/96 and for the grant of a supplement to the Community withdrawal compensation provided for in Article 15(3)(a) and (b) of Regulation (EC) No 2200/96.

In order to give maximum encouragement to action to stabilise the market, producer organisations not observing the Community withdrawal price throughout the fishing year should be excluded from receiving financial compensation for carry-over aid.

Member States which set a maximum level for the supplement to the Community withdrawal compensation under the second subparagraph of Article 15(3) of Regulation (EC) No 2200/96 shall take account of the following:

For citrus fruit, the divergence, due in particular to overrunning of the processing threshold, between Community withdrawal compensation and Community processing aid may in the future lead to unjustified diversion into withdrawal of products that should properly have been processed.

Subject to Article 7 of Regulation (EC) No 103/2004, producer organisations recognised before 1 May 2004 in accordance with national legislation may apply for Community withdrawal compensation.

In the special case of tomatoes intended for processing, the supplement to be set must be at a level such that the sum of the Community withdrawal compensation and the supplement thus set does not exceed the minimum price for processing set for the marketing year in question under Regulation (EC) No 2201/96.`

To avoid this risk, the ceiling fixed in Articles 23 and 24 of Regulation (EC) No 2200/96 as a percentage of marketed quantity on eligibility for the Community withdrawal compensation should be reduced to 10 % for the 2001/02 marketing year and to 5 % from the 2002/03 marketing year onwards.

checks that the accounts are correct, in particular the veracity of net receipts by the producer organisations as declared in their payment applications, the proportionality of any withdrawal costs, the entries in the accounts regarding the receipt by the producer organisations of the Community withdrawal compensation and any amounts thereof paid on to members, ensuring that these tally;