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1. In the case of an infringement by a vessel flying its flag, the Member State shall:

(a) investigate fully, including, if necessary, by physically inspecting the fishing vessel at the earliest opportunity;

(b) cooperate with the inspecting NAFO Contracting Party or inspecting Member State if different from the flag Member State to preserve the evidence and the chain of custody in a form that will facilitate proceedings in accordance with its laws;

(c) take immediate judicial or administrative action in conformity with its national legislation against the persons responsible for the vessel; and (d) ensure that sanctions applicable in respect of infringements, and to the extent possible under national legislation for repeated serious infringements, in particular those identified under Article 35(3), point (c) (iii) and (iv), are adequate in severity to be effective in securing compliance, deterring further infringements or their repetition and depriving the offenders of the benefits accruing from the infringement.

2. The judicial or administrative action and sanctions referred to in points (c) and (d) of paragraph 1 may include, but shall not be limited to, the following, depending on the gravity of the offence and in accordance with domestic law:

(a) fines;

(b) seizure of the vessel, illegal fishing gear and catches;

(c) suspension or withdrawal of authorisation to conduct fishing activities; and (d) reduction or cancellation of any fishing allocations;

(e) increased or additional reporting requirements, such as enhanced reporting frequency or additional data to be reported; and (f) increased or additional monitoring requirements, such as the deployment of an observer or an inspector on board or the installation of remote electronic monitoring implemented in accordance with relevant technical specifications for fishing vessels operating in the Regulatory Area.

3. Each flag Member State shall ensure that it treats all notices of infringement as if the infringement was reported by its own inspectors.

4. The flag Member State and the port Member State shall immediately notify the Commission:

(a) the judicial or administrative action and sanctions referred to in points (c) and (d) of paragraph 1;

(b) as soon as practicable but no later than four months following the occurrence of a serious infringement, a report setting out the progress of the investigation, including details of any action it has taken or has initiated in relation to the infringement; and (c) upon completion of its investigation, a report on the final outcome.