Commission Regulation (EC) No 1678/98 of 29 July 1998 amending Regulation (EEC) No 3887/92 laying down detailed rules for applying the integrated administration and control system for certain Community aid schemes
Date: 1998-07-29
Institutions: European Commission
Subjects: EU aid, aid system, aid to agriculture, management information system

30. 7. 98

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COMMISSION REGULATION (EC) No 1678/98

of 29 July 1998

amending Regulation (EEC) No 3887/92 laying down detailed rules for applying
the integrated administration and control system for certain Community aid
schemes

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European
Community,

Having regard to Council Regulation (EEC) No 3508/92
of 27 November 1992 establishing an integrated adminis-
tration and control system for certain Community aid
schemes (1), as last amended by Regulation (EC) No
820/97 (2), and in particular Article 12 thereof,

Whereas it should be laid down that areas are to be
declared in hectares to two decimal places;

Whereas, in order to guarantee that direct per-hectare aid
is not paid for parcels without justification, parcels subject
to certain other arrangements not covered by the integ-
rated administration and control system established by
Regulation (EEC) No 3508/92 (hereinafter ‘the integrated
system’) should be declared separately;

Whereas, in view of the requirement to use a minimum
quantity of certified seed in the case of declared and sown
durum wheat, deterrent penalties should be provided for;
whereas similar penalties should be laid down for in-
fringements of the provisions on varieties;

Whereas, by analogy with agricultural
rules in other
sectors, farmers should be given the opportunity, under
certain conditions, of correcting information in their
applications which could lead to the imposition of penal-
ties;

Whereas rules for the charging of interest, irrespective of
the method of recovery chosen, should be laid down;

in order

Whereas,
to ensure uniform application
throughout the Community of the principle of legitimate
expectation where amounts unduly paid are recovered, the
conditions under which that principle may be invoked
should be laid down without prejudice to the treatment of
irregular expenditure as provided for,
in
Articles 5 and 8 of Council Regulation (EEC) No 729/70
of 21 April 1970 on the financing of the common agri-
cultural policy (3), as last amended by Regulation (EC) No
1287/95 (4);

in particular,

(1) OJ L 355, 5. 12. 1992, p. 1.
(2) OJ L 117, 7. 5. 1997, p. 1.
(3) OJ L 94, 28. 4. 1970, p. 13.
(4) OJ L 125, 8. 6. 1995, p. 1.

Whereas, in the light of experience, the amount below
which the competent authorities may decide not
to
demand repayment of amounts paid in error should be
increased;

Whereas Regulation (EC) No 820/97 establishing a
system for the identification and registration of bovine
animals and regarding the labelling of beef and beef
products stipulates that the system for identification and
registration of bovine animals is to include eartags to
identify animals
individually, computerised databases,
animal passports and individual registers kept on each
holding;

Whereas effective control of bovine animals requires that
animals be identified and recorded; whereas, to this end,
Regulation (EC) No 820/97 lays down specific provisions;

Whereas to ensure the effective functioning of the rules
for Community aid for eligible animals and the general
veterinary rules laid down for the implementation of
Regulation (EC) No 820/97 by Commission Regulations
(EC) No 2630/97 (5) and (EC) No 494/98 (6) checks and
sanctions pursuant to the integrated system and checks
and sanctions for veterinary purposes should be con-
sidered separately; whereas an exchange of data and
common controls are not excluded;

Whereas Article 5 of Regulation (EEC) No 3508/92 stipu-
lates that the system for identification and registration of
animals to be taken into account for the granting of aid is
to be set up in accordance with Regulation (EC) No
820/97;

Whereas experience has shown that implementation of
Regulation (EEC) No 3508/92 in respect of bovine
animals has not been entirely satisfactory and needs
improvement; whereas, the entry into force of Regulation
(EC) No 820/97 provides the opportunity to integrate
certain elements of common control practice in the
Member States, and also to clarify, harmonise and
simplify control procedures and practice; whereas, to this
end, the minimum content of checks and reporting of
controls should be specified;

(5) OJ L 354, 30. 12. 1997, p. 23.
(6) OJ L 60, 28. 2. 1998, p. 78.

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Whereas it should be ensured that Community aid is
granted only for bovines for which the obligations of
identification and registration in accordance with Regula-
tion (EC) No 820/97 have been complied with; whereas
reliable control practice requires that all eligible bovine
animals, that is to say all bovines for which applications
have been lodged or which may be the subject of future
aid applications, on the holding of an aid applicant be
subject to on-the-spot checks; whereas, the identification
and registration of bovine animals introduced by Regula-
tion (EC) No 820/97 is applicable to all bovine animals;

Whereas provisions should be adopted to prevent and
penalise irregularities and fraud effectively; whereas, to
this end, there should be sanctions graded according to
the gravity of the irregularity committed; whereas, the
infringements should be defined in the light of ex-
perience with the application of sanctions;

Whereas therefore Commission Regulation (EEC) No
3887/92 (1), as
last amended by Regulation (EC) No
613/97 (2), should be amended accordingly;

Whereas the Committee for the European Agricultural
Guidance and Guarantee Fund has not delivered an
opinion within the time limit laid down by its chairman,

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EEC) No 3887/92 is amended as follows:

1. Article 4(1) is amended as follows:

— cotton, as referred to in Council Regulation

(EC) No 1554/95 (*),

— hops, as referred to in Council Regulation

(EEC) No 1696/71 (**),

— flax and hemp, as referred to in Council Regu-

lation (EEC) No 1308/70 (***).

(*) OJ L 148, 30. 6. 1995, p. 48.
(**) OJ L 175, 4. 8. 1971, p. 1.
(***) OJ L 146, 4. 7. 1970, p. 1’.

2. Article 6 is amended as follows:

(a) Paragraph 2 is replaced by the following:

The administrative checks

referred to in
‘2.
Article 8(1) of Regulation (EEC) No 3508/92 shall
include in particular:

(a) cross-checks on parcels and animals declared in
order to ensure that aid is not granted twice in
respect of the same calendar year without justi-
fication;

(b) once the computerised database is fully opera-
tional in accordance with Article 5 of Council
Regulation (EC) No 820/97 (*), cross-checks
with a view to ensuring that Community aid is
granted only for bovine animals for which the
births, movements and deaths have been duly
notified by the applicant for Community aid to
the competent authority referred to in Article
7(1) of Council Regulation (EC) No 820/97.

(*) OJ L 117, 7. 5. 1997, p. 1.’;

(b) in paragraph 4, the following indent is added:

‘— infringements of Regulation (EC) No 820/97.’;

(a)

the second indent of
replaced by the following:

the first subparagraph is

(c)

in paragraph 5,
replaced by the following:

the

second subparagraph is

‘— particulars permitting identification of all agri-
cultural parcels on the holding,
their area
expressed in hectares to two decimal places,
location, use, whether the parcel is irrigated,
and the aid scheme concerned,’;

(b) in the third subparagraph, the following indents are

added:

‘— agricultural production compatible with the
requirements of environmental protection and
maintenance of the countryside as referred to
in Regulation (EEC) No 2078/92,

(1) OJ L 391, 31. 12. 1992, p. 36.
(2) OJ L 94, 9. 4. 1997, p. 1.

‘With the exception of male bovine animals for
which a special premium is granted according to
Article 8 of Commission Regulation (EEC) No
3886/92 (*) at the time of slaughter or at the first
placing on the market with a view to their
slaughter, at least 50 % of the minimal checks on
animals shall be made during the retention period.
Checks may be effected outside that period only if
the registers provided for in Article 4 of Directive
92/102/EEC or Article 3(d) of Regulation (EC) No
820/97 are available.

On-the-spot checks pursuant
to this Regulation
may be carried out in conjunction with any other
inspection provided for by Community legislation.

(*) OJ L 391, 31. 12. 1992, p. 20.’;

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(d) paragraph 6 is replaced by the following:

— for durum wheat: Article 6(5) of Regulation

‘6. On-the-spot checks of livestock for the aid
scheme concerned shall include in particular:

(a) a check that

the total number of animals
present on the holding, and eligible for the
scheme concerned, corresponds to the number
of such eligible animals entered in the register;

(b) a check on the basis of the register kept by the
producer that all
the animals for which aid
applications were submitted in the 12 months
prior to the on-the-spot check have been kept
throughout the retention period;

(c) a check of the register by sampling of support-
such as purchase and sales
ing documents
invoices, slaughter certificates, veterinary certi-
ficates and passports as provided for in Article 6
of Regulation (EC) No 820/97;

(d) a check that all bovine animals present on the
holding, for which aid applications have been
lodged or which may be the subject of future
aid applications, are identified by eartags and
passports and recorded in the register in ac-
cordance with Regulation (EC) No 820/97.

The check provided for in the first subparagraph,
point (d), shall be made individually for all male
for which an application has been
bovines
submitted for special beef premium. However, for
all other bovine animals eligible for Community
aid which are present on such holdings, the check
on correct recording in the register may be made
by sampling provided that a reliable and represen-
tative level of control is achieved.

Where sample checks reveal serious anomalies, the
extent and scope of the check shall be increased to
ensure an appropriate level of control’.

3. Article 9 is amended as follows:

(a)

the sixth subparagraph of paragraph 2 is replaced
by the following two subparagraphs:

‘For the purposes of this Article, “determined area”
means the area for which all of the conditions laid
down in the rules have been met, including the
following provisions:

— for rape seed: Article 4 of Commission Regula-

tion (EC) No 658/96 (*),

— for sunflower: Article 4(5) of Regulation (EC)

No 658/96,

— for linseed: Article 6a(4) of Regulation (EEC)

No 1765/92,

(EC) No 658/96.

With regard to areas declared and actually sown in
found
durum wheat, where a discrepancy is
between the minimum quantity of certified seed
fixed by the Member State and the quantity actu-
ally used, “determined area” shall mean the area
calculated by dividing the total quantity of certified
seed for which the producer has furnished proof of
use by the minimum quantity per hectare laid
down by the Member State for the region of the
producer in question. The area thus determined is
used, after application of paragraph 2, for the calcu-
lation of the right to the supplement or to the
specific aid provided for at Article 4 of Regulation
(EEC) No 1765/92.

(*) OJ L 91, 12. 4. 1996, p. 46.’;

(b) paragraph 5 is deleted.

4. Article 10 is replaced by the following:

‘Article 10

1. Where an individual limit or individual ceiling is
applicable, the number of animals shown in aid appli-
cations shall be reduced to the limit or ceiling set for
the farmer concerned.

If

2.
the number of animals declared in an aid
application exceeds that established during adminis-
trative or on-the-spot-checks carried out in accordance
with Article 6(6), the aid shall be calculated on the
number of eligible animals established. However,
except in cases of force majeure and after paragraph 11
of
this Article has been applied as regards natural
circumstances, that aid shall be reduced pursuant to
paragraph 3.

3. Where the application concerns a maximum of
20 animals, the amount of the aid shall be reduced:

(a) by the percentage corresponding to the difference
found if this is not more than two animals, or

(b) by twice the percentage corresponding to the dif-
ference found if this is more than two but not
more than four animals.

the difference is greater

If
premium shall be granted.

than four animals, no

In other cases, the amount of the aid shall be reduced:

(a) by the percentage corresponding to the difference

found if this is not more than 5 %, or

(b) by twice the percentage corresponding to the
difference found if this is more than 5 % but not
more than 20 %.

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If the difference found is more than 20 %, no aid shall
be granted.

The percentages mentioned in points (a) and (b) of the
first subparagrah shall be calculated on the basis of the
number declared, and those mentioned in points (a)
and (b) of the third subparagraph on the basis of the
number found.

As

regards bovine animals other

4.
than those
covered by paragraphs 2 and 3, where on-the-spot
checks reveal that the number of animals eligible for
Community aids established on the holding does not
correspond to the number of eligible animals entered
in the register or to the number of passports of eligible
animals held on the holding, and when such findings
are revealed on at least two checks within a period of
24 months, the total amount of the aid granted to the
applicant for the aid scheme concerned for the 12
months prior to the second on-the-spot check re-
vealing such findings shall, except in cases of force
majeure, be reduced proportionately.

as

regards

special beef premium
the
However,
pursuant to Article 8 of Regulation (EEC) No 3886/92,
a reduction in accordance with the first subparagraph
shall apply after each on-the-spot check where such
findings are established.

If the difference found during an on-the-spot check is
greater than 20 % of the number of eligible animals
established, or if a difference of at least 3 % and at
least two animals are found during two checks in the
same calendar year, no premium shall be granted for
the 12 months prior to the on-the-spot check.

5.
As regards bovine animals, an animal established
within the meaning of paragraphs 2, 3 and 4 above at
the time of an on-the-spot check is one which:

(a)

is individually identified by a passport
in ac-
cordance with Article 6 of Regulation (EC) No
820/97, which indicates at least the date of birth,
sex, movements and death within the meaning of
the second indent of Article 7(1) of Council Regu-
lation (EC) No 820/97;

(b) is properly recorded in the register in accordance
with the first indent of Article 7(1) of Council
Regulation (EC) No 820/97;

(c)

is individually identified by eartags provided for by
Article 4 of Council Regulation (EC) No 820/97;

(d) in the case of an animal declared for Community
aid, is found at the location notified by the ap-
plicant in accordance with the fourth indent of
Article 5(1) of this Regulation.

However, a bovine animal which has lost one of the
two eartags shall be regarded as being established
providing that it is clearly and individually identified
by all other relevant conditions mentioned in the first
subparagraph. Furthermore, as regards bovine animals
incorrectly entered in the register or for which pass-
ports issued are incorrectly completed due to reasons
attributable to the applicant with regard to the date of
birth, sex, movements and death, Community aid shall
be reduced in accordance with paragraphs 2, 3 and 4
only if such omissions are established on at least two
checks within a period of 24 months.

6. Where it is found that a false declaration in the
aid application, register or passport was made as a
result of serious negligence, the farmer in question
shall be excluded from the aid scheme concerned for
the calendar year in question. In the case of a false
declaration made intentionally, he shall be excluded
from the same aid scheme for the following calendar
year as well.

7.
If a farmer has been unable to comply with his
retention undertaking as a result of force majeure he
shall retain his right to aid in respect of the number of
animals actually eligible at the time when the case of
force majeure occurred.

In no case may aid be granted on a greater number of
animals than that shown in the aid application.

8.
If the compensatory allowance provided for in
Council Regulation (EC) No 950/97 (*) is calculated on
the basis of livestock units, the determining of the
number present and the sanctions provided for in
paragraphs 2 to 6 shall apply on the basis of the
number of
livestock units corresponding to the
number of animals declared and established.

9.
Bovine animals present on the holding shall not
be counted unless identified in the aid application.

However, a suckler cow declared for the premium or a
bovine declared for
the compensatory allowance
provided for in Regulation (EC) No 950/97 may be
replaced by another suckler cow or bovine respectively
provided that replacement occurs within 20 days of
the animal’s departure from the holding and that the
replacement is entered in the register not later than
three days after the day of replacement.

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the number of

10.
If the compensatory allowance provided for in
Regulation (EC) No 950/97 is calculated on the basis
of
livestock units without distin-
guishing between the species of animals concerned,
animals declared can be replaced by other animals
eligible for
the
corresponding number of
livestock units does not
decrease and that replacements take place according to
the conditions provided for in paragraph 9.

this allowance on condition that

11.
In cases where, owing to the impact of natural
circumstances on the herd, the farmer cannot meet his
to keep the animals notified for a
commitment
premium throughout the compulsory retention period,
he shall be entitled to the premium for the number of
eligible animals actually kept throughout the period,
provided that he has informed the competent au-
thority in writing within 10 working days of finding
any reduction in the number of animals.

12.
For the purposes of paragraphs 1 to 11, animals
eligible for different Community aids shall be treated
separately.

(*) OJ L 142, 2. 6. 1997, p. 1’.

5. In Article 11, the following paragraph 1a is inserted:

‘1a.
The penalties applicable according to Articles 9
and 10 shall not be imposed in cases where the farmer,
on finding that the application which he has lodged
contains errors other than those made intentionally or
by serious negligence incurring one or more of the
said penalties, within 10 working days of finding these
errors,
informs the competent authority in writing,
provided that the authority has not notified the farmer
of its intention to carry out an on-the-spot control, the
farmer has not been able to learn of this intention in
any other way and the authority has not already
informed the farmer of the irregularity in the applica-
tion’.

6. Article 12 is replaced by the following:

‘Article 12

Every on-the-spot check shall be the subject of a report
setting out, in particular, the reasons for the visit, the
aid schemes and applications checked,
the persons
present, the number of parcels visited, those measured,
the measuring methods used, the number of animals of
each species found and, where applicable, the eartag
numbers and entries to the register subject to checks as
well as the result of the checks and if appropriate par-
ticular
identification
numbers. It shall be open to the farmer or his rep-

relating to specific

findings

resentative to sign the report. He may either merely
attest his presence at the inspection or also add his
observations.

Where Member States carry out on-the-spot checks
pursuant
to this Regulation in conjunction with
inspections pursuant to Commission Regulation (EC)
No 2630/97 (*), the report shall be supplemented by
the report referred to in Article 2(5) of Regulation (EC)
No 2630/97.

Where on-the-spot checks conducted in accordance
with Article 6(5) of this Regulation reveal
infringe-
ments of Regulation (EC) No 820/97, copies of the
reports of
to this
Regulation shall be sent without delay to the author-
ities which are competent for the implementation of
Regulation (EC) No 2630/97.

the on-the-spot checks pursuant

(*) OJ L 354, 30. 12. 1997, p. 23’.

7. Article 14 is replaced by the following:

‘Article 14

If undue payment is made, the farmer shall repay
in question plus interest calculated in

1.
the amount
accordance with paragraph 3.

2. Member States may decide that recovery of an
undue payment shall be by deduction of the amount to
be recovered from the first advance or first payment
made to the farmer following the date of the decision
to recover. However, the farmer may repay the amount
without waiting for the deduction.

3.
The interest shall be calculated for the period
elapsing between payment and either repayment or
deduction.

The rate of
interest applicable shall be calculated
according to the provisions of national law but shall
not be lower than the interest rate applicable for the
recovery of national amounts.

No interest shall be charged on undue payments made
by error of the competent authority.

4.
The repayment obligation referred to in para-
graph 1 shall not apply if the payment was made by
error of the competent authority itself or by error of
another authority and if the error could not reasonably
be detected by the farmer, who for his part acted in
good faith and complied with all the rules in force.

However, where the error relates to factual elements
relevant for the calculation of the payment concerned,
the first subparagraph shall only apply if the decision
to recover was not communicated within 12 months of
the payment.

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For the purposes of the first and second subparagraphs,
any third party whose acts are imputable to the farmer
shall be treated as the farmer.

deduct amounts recovered and interest paid from the
expenditure of
that Section, without prejudice to
Article 7 of Regulation (EEC) No 595/91’.

Paragraph 4 shall not apply in the case of
5.
advances and payments the return of which is claimed
because a penalty has been imposed under Articles 8, 9
or 10 or any other Community or national provision.

6. Member States may decide not to claim return of
amounts of ECU 100 or less, not including interest,
per farmer and per aid application to which the claim
applies, provided that their national law provides for
non-recovery in such cases.

In the case of aid or premiums financed by the
7.
European Agricultural Guidance and Guarantee Fund
(EAGGF), Guarantee Section, paying agencies shall

Article 2

This Regulation shall enter into force on the seventh day
following its publication in the Official Journal of the
European Communities.

Points 1(b), 2, 3, 4 and 6 of Article 1 shall apply to aid
applications lodged on or after 1 January 1999.

Point 1(a) of Article 1 shall apply to aid applications
lodged on or after 1 January 2000.

This Regulation shall be binding in its entirety and directly applicable in all Member
States.

Done at Brussels, 29 July 1998.

For the Commission

Franz FISCHLER

Member of the Commission