Commission Regulation (EC) No 2419/2001 of 11 December 2001 laying down detailed rules for applying the integrated administration and control system for certain Community aid schemes established by Council Regulation (EEC) No 3508/92
Date: 2001-12-11
Institutions: European Commission
Subjects: EU aid, aid per hectare, aid to agriculture, cattle, database, farming system

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COMMISSION REGULATION (EC) No 2419/2001

of 11 December 2001

laying down detailed rules for applying the integrated administration and control system for
certain Community aid schemes established by Council Regulation (EEC) No 3508/92

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 administration and
control system for certain Community aid schemes (1), as last
amended by Commission Regulation (EC) No 495/2001 (2),
and in particular Article 12 thereof,

Whereas:

(1)

The integrated administration and control system for
certain Community aid schemes system established by
Regulation (EEC) No 3508/92 (hereinafter ‘the integrated
system’) has proven to be an effective and efficient
means for the implementation of the direct payment
schemes first introduced as a result of the reform of the
common agricultural policy in 1992 and further devel-
oped under the Agenda 2000 measures. Commission
Regulation (EEC) No 3887/92 of 23 December 1992
laying down detailed rules for applying the integrated
administration
certain
control
Community aid schemes (3), as last amended by Regula-
tion (EC) No 2721/2000 (4), has been amended on
various occasions since its entry into force. Moreover,
experience, and in particular the introduction of elec-
tronic tools for the management of the schemes, has
shown that various provisions of that Regulation should
be reviewed. Since further amendments are to be made,
Regulation (EEC) No 3887/92 should be replaced by this
Regulation in the interests of clarity and rationalisation.

system for

and

(2)

For the sake of effective control and to prevent the
submission of multiple aid applications to different
Paying Agencies within one Member State, the Member
States should provide for a single system to record the
identity of farmers submitting aid applications subject to
the integrated system. The Member States
should,
however, be given a transitional period for the introduc-
tion of that system.

(3)

In the light of
identification systems
throughout the Community, the Member States should
be authorised to set up systems for the identification of

the different

(1) OJ L 355, 5.12.1992, p. 1.
(2) OJ L 72, 14.3.2001, p. 6.
(3) OJ L 391, 31.12.1992, p. 36.
(4) OJ L 314, 14.12.2000, p. 8.

(4)

(5)

(6)

(7)

areas by means of units other than agricultural parcels.
This possibility should be accompanied by certain obli-
gations in order to ensure that the identification is reli-
able. Moreover, each Member State should, for the sake
of effective monitoring, determine the minimum size of
agricultural parcel that may be declared in an area aid
application.

The concepts of ‘agricultural parcel’ and ‘forage area’
should be clarified to ensure that parcels are correctly
declared and identified.

Provision should be made regarding the content of area
aid applications. For the sake of effective controls, any
kind of area use should be declared in the area aid
application. However, where the Member States have
introduced administration and control systems for other
area-related Community aid schemes which are compat-
ible with the integrated system according to Article 9a of
the Member States
Regulation (EEC) No 3508/92,
should be given the possibility to derogate from this
requirement.

There is a need to lay down special provisions for the
particular situation regarding producer groups in the
sheepmeat and goatmeat sector as defined in Article 1(2)
of Council Regulation (EEC) No 3493/90 of 27
November 1990 laying down general rules for the
granting of premiums
to sheepmeat and goatmeat
producers (5), as last amended by Regulation (EC) No
2825/2000 (6).

An area aid application submitted only for the purpose
of declaring permanent pasture does not necessarily
have to be submitted to the competent authorities
within the same delays as area aid applications in
general,
in particular because the management of the
control programme of permanent pasture does not have
to be carried out following the same time-schedule as
the control of arable crop areas. The Member States
should, therefore, be able to provide for such area aid
applications to be submitted later than the date fixed in
accordance with Article 6(2) of Regulation (EEC) No
3508/92. However, the date to be fixed by the Member
State should not be later than 1 July.

(5) OJ L 337, 4.12.1990, p. 7.
(6) OJ L 328, 23.12.2000, p. 1.

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(8)

Farmers should be entitled to amend their area aid
applications until the latest date for sowing in accord-
ance with Council Regulation (EC) No 1251/1999 of 17
May 1999 establishing a support system for producers
of certain arable crops (1), as last amended by Regulation
(EC) No 1038/2001 (2), provided that all the particular
requirements under
rules are
the relevant
respected and that the competent authority has not yet
informed the farmer of errors contained in the aid
application, nor notified an on-the-spot control which
in relation to the part affected by the
reveals errors,
amendment.

sectoral

(13) According to new forms of communication, the Member
States should be able to adopt national provisions
permitting communications to be made by the farmer
under the integrated system to be submitted electroni-
cally.

(14) Where aid applications contain obvious errors they

should be adjustable at any time.

(9)

Farmers applying only for aid which is not linked to area
should be exempted from the requirement to submit an
area aid application.

(10)

In order to facilitate the administration of the various
livestock aid schemes concerned, common provisions
should be made concerning the details to be included in
livestock aid applications.

(11)

Regulation (EC) No 1760/2000 of the European Parlia-
ment and of the Council of 17 July 2000 establishing a
system for the identification and registration of bovine
animals and regarding the labelling of beef and beef
products and repealing Council Regulation (EC) No 820/
97 (3) requires keepers of bovine animals to communi-
cate data concerning these animals to a computerised
database. Article 21 of Council Regulation (EC) No
1254/1999 of 17 May 1999 on the common organ-
in beef and veal (4), as last
isation of
amended by Regulation (EC) No 1512/2001 (5), stipu-
lates that aids may only be paid for animals that are
properly identified and registered in accordance with
Regulation (EC) No 1760/2000. The computerised data-
base has also gained far-reaching importance as far as
the aid schemes is concerned.
the management of
Farmers submitting applications under the aid schemes
concerned should therefore be given access to the rele-
vant information in due time.

the market

(12)

The Member States should be authorised to make use of
the information contained in the computerised database
with a view to introducing simplified application
procedures provided that the computerised database is
reliable. It should therefore be provided that the infor-
mation contained in the computerised database may
form part of the aid application.

(1) OJ L 160, 26.6.1999, p. 1.
(2) OJ L 145, 31.5.2001, p. 16.
(3) OJ L 204, 11.8.2000, p. 1.
(4) OJ L 160, 26.6.1999, p. 21.
(5) OJ L 201, 26.7.2001, p. 1.

(15)

(16)

(17)

Respect for the time limits for the submission of aid
applications and for the amendment of area aid applica-
tions is indispensable to enable the national administra-
tions to programme and, subsequently, carry out effec-
tive checks on the correctness of the aid applications.
Provision should, therefore, be made regarding the time
limits within which late submissions are acceptable.
Moreover, a reduction should be applied to encourage
farmers to respect the time limits. Where a farmer only
has to declare permanent pasture and, therefore, has to
submit
checks may be
aid application,
programmed differently. For these cases lower reduc-
tions may be provided for and a longer delay should be
foreseen. Where the Member States make use of the
possibility to set a later date for the submission of an
area aid application that only relates to permanent
pasture, submission of applications after the date fixed
by the Member State should, however, no longer be
admissable.

an area

Farmers should be entitled to withdraw their aid applica-
tions or parts thereof at any time provided that the
competent authority has not yet informed the farmer of
any errors contained in the aid application nor notified
an on-the-spot control which reveals errors in relation
to the part affected by the withdrawal.

Compliance with the provisions on the aid schemes
managed under the integrated system should be effec-
tively monitored. To this end, and to have a harmonised
level of monitoring in all Member States, it is necessary
to set out in detail the criteria and technical procedures
for carrying out administrative and on-the-spot checks
in respect both of area and livestock aid. Where appro-
priate, the Member States should undertake to combine
the various controls under this Regulation as well as
those provided for under other Community provisions
at the same time.

(18)

The minimum number of farmers to be checked on the
spot under the various aid schemes should be deter-
mined. In relation to farmers applying for aids under the
various bovine schemes an integrated holding-based
approach should be foreseen.

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The sample of the minimum rate of on-the-spot checks
should be drawn partly on the basis of a risk analysis
and partly at random. The main factors to be taken into
consideration for the risk analysis should be specified.

mental needs, it is appropriate to provide some flexi-
bility within the limits taken into account when the
regional yields were fixed in accordance with Regulation
(EC) No 1251/1999.

(19)

(20)

The determination of significant
irregularities should
require an increase in the level of the on-the-spot checks
during the current and the following year to reach an
acceptable level of assurance of the correctness of the
aid applications concerned.

(21) On-the-spot checks of farmers submitting aid applica-
tions do not necessarily have to be carried out on each
individual animal or agricultural parcel. Checks on a
sample basis may,
in certain cases, be carried out.
However, where this is allowed the sample should be
extended to a degree that guarantees a reliable and
representative level of assurance.
In some cases the
sample may have to be extended to a full control. The
Member States should establish the criteria for the selec-
tion of the sample to be checked.

(22)

(23)

In order for the on-the-spot check to be effective it is
important for the staff carrying out the checks to be
informed of the reason for the selection for the on-the-
spot check. The Member States should keep records of
such information.

In order to enable the national authorities as well as any
competent Community authority to follow up on-the-
spot checks carried out the details of checks should be
recorded in a control report. The farmer or a repres-
entative should be given the opportunity to sign the
report. However,
in the case of checks by means of
remote-sensing the Member States should be allowed to
provide for this right only in cases where the check
reveals irregularities. Moreover, irrespective of the kind
of on-the-spot check carried out,
the farmer should
receive a copy of the report if irregularities are found.

(24) On-the-spot checks of areas, as a general rule, consist of
two parts, the first of which relates to verifications and
measurements of declared agricultural parcels on the
basis of graphic material, aireal photography and so
forth. The second part consists of a physical inspection
of the parcels to verify the declared crop and its quality
as well as the actual size of the agricultural parcels.
Where necessary, measurements should be carried out.
The physical inspection in the field may be carried out
on the basis of a sample.

(25) Detailed rules regarding the determination of areas and
the measurement methods to be used should be laid
down. In relation to the determination of the area of
agricultural parcels eligible for area payments, experi-
ence has shown that it is necessary to define the accept-
able width of certain features of the fields, in particular
hedges, ditches and walls. In view of specific environ-

(26)

(27)

(28)

The conditions for the use of remote sensing for on-the-
spot checks should be laid down and provision should
be made for physical checks to be carried out in cases
where photo-interpretation does not lead to clear results.

The timing and the minimum content of on-the-spot
checks of farmers applying for livestock aid should be
specified in order to ensure a harmonised control level
in all Member States. In order to check effectively the
correctness of declarations in aid applications and notifi-
cations to the computerised database it is essential to
carry out a major part of such on-the-spot checks whilst
animals still have to be kept on farm under the retention
obligation.

The proper identification and registration of bovine
animals is an eligibility condition pursuant to Article 21
of Regulation (EC) No 1254/1999. It should, therefore,
be ensured that Community aid is granted only for
bovines identified and registered in accordance with
Regulation (EC) No 1760/2000. Such checks should also
be carried out in respect of bovine animals not yet
claimed but which could be subject to an aid application
in the future. Due to the set-up of several of the bovine
aid schemes, such bovine animals are, in many cases,
only claimed for aid after they have already left the
holding.

(29)

Special provision should be made for checks to be
carried out in slaughterhouses in order to check that
animals claimed for aid are eligible and that the informa-
tion contained in the computerised database is correct.
The Member States should be authorised to apply two
different bases for selecting slaughterhouses for such
checks.

(30) As far as the slaughter premium granted after export of
bovine animals is concerned, special provisions are
necessary along with Community control provisions
relating to export in general because of the differences in
the control purposes.

(31)

(32)

The control provisions foreseen in relation to the live-
stock aid should also, where appropriate, apply as
regards additional payments pursuant to Article 15 of
Regulation (EC) No 1254/1999.

To protect the Community's financial interests effectively
adequate measures should be adopted to combat irregu-
larities and fraud. Separate provisions should be made
for the area aid schemes on the one hand and the
livestock aid schemes on the other, due to the different
natures of these aid schemes.

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Reductions and exclusions should be established having
regard to the principle of proportionality and the special
problems linked to cases of force majeure as well as
exceptional and natural circumstances. Such reductions
and exclusions should be graded according to the gravity
of the irregularity committed and should go as far as the
total exclusion from one or several aid schemes for a
specified period.

for the identification and registration of bovine animals
is essential in order to introduce simplified application
procedures based on the
computerised database.
Compliance with that system before aid application is
actually submitted is therefore essential to protect effec-
tively the Community's financial interests. The principle
that obvious errors may be adjusted at any time should,
however, also apply to erroneous notifications to, or
entries into the elements of that system.

(33)

(34)

Provision for reductions and exclusions should take into
account the particularities of the various aid schemes
subject to the integrated system. In relation to area aid
applications, irregularities normally affect parts of areas,
and overdeclarations in respect of one parcel may be
off-set against underdeclarations of other parcels of the
same crop-group. As far as livestock aid applications are
concerned, irregularities lead to the ineligibility of the
animal concerned. In respect of area aid applications,
where irregularities are found, it should be foreseen that
within a certain margin of tolerance aid applications
should only be adjusted and reductions only start to
apply once this margin has been exceeded. In respect of
applications for livestock aid, reductions should be fore-
seen as from the first animal found with irregularities
but,
there
the level of
should be a less harsh sanction where three animals or
less are found with irregularities. In all other cases the
severity of
sanction should depend on the
percentage of animals found with irregularities.

irrespective of

the reduction,

the

(35)

Special provisions are necessary to take into account the
particularities of farmers applying for livestock aid and
declaring forage area for that purpose. Where an overde-
claration of such areas does not
lead to a higher
payment for livestock no penalties should be foreseen.

(36)

Farmers should be allowed to replace suckler cows,
heifers and dairy cows within the limits allowed under
the relevant sectoral rules.

(42)

(37)

In relation to the bovine aid schemes and the compli-
ance with the system for the identification and registra-
tion of bovine animals set out in Regulation (EC) No
1760/2000, provision should be made in respect of
bovine animals already claimed for aid on the one hand
and for bovine animals not yet claimed but which could
be subject to an aid application in the future, on the
other. Such bovine animals not yet claimed constitute a
potential risk to the European Agricultural Guidance and
Guarantee Fund (EAGGF). Due to the structure of the aid
schemes, once such animals are subject
to an aid
application non-compliance with the system may often
not be detected. Moreover, compliance with the system

(38) Where, due to natural circumstances, a farmer is unable
to fulfill the retention obligations under the sectoral
rules, reductions and exclusions should not be applied.

(39) Due to the importance of slaughterhouses for the proper
functioning of some of the bovine aid schemes, provi-
sion should also be made for cases where slaughter-
houses, gross negligently or intentionally,
issue false
certificates or declarations.

(40) As far as irregularities are concerned as regards the
additional payments provided for in Article 14 of Regu-
lation (EC) No 1254/1999 the Member States should
provide for sanctions which should be equivalent to
those provided for in relation to the area and livestock
aid schemes unless this is inappropriate. In this latter
case the Member States should provide for suitable
equivalent sanctions.

(41)

Reductions and exclusions should, as a general rule, not
apply where the farmer submitted factually correct infor-
mation or where he can show otherwise that he is not at
fault.

Farmers who give notice to the competent national
authorities at any time of
incorrect aid applications
should not be subject to any reductions or exclusions
irrespective of the reason of the incorrectness, provided
that the farmer has not been informed of the competent
authority's intention to carry out an on-the-spot check
and the authority has not already informed the farmer of
any irregularity in the application. The same should
apply in relation to incorrect data contained in the
computerised database.

(43) Where various reductions have to be applied in relation
to the same farmer they should apply independently
from each other and individually. Moreover, the reduc-
tions and exclusions provided for under this Regulation
should apply without prejudice to additional sanctions
under any other provisions of Community or national
law.

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(44)

The management of small amounts is a burdensome
task for the competent authorities of the Member States.
It
is therefore appropriate to authorise the Member
States not to pay amounts of aid that are below a certain
minimum limit and not to request reimbursement of
incorrectly paid amounts when the sums involved are
minimal.

(45) Where, as a consequence of force majeure or exceptional
circumstances, a farmer is not able to fulfill the obliga-
tions provided for under the sectoral rules, he should
not lose his right to the aid payment.
It should be
specified which cases may, in particular, be recognized
by the competent authorities as cases of exceptional
circumstances.

(46)

In order to ensure uniform application of the principle
the Community, where
of good faith throughout
the conditions
amounts unduly paid are recovered,
under which that principle may be invoked should be
laid down without prejudice to the treatment of the
expenditure concerned in the context of the clearance of
accounts under Council Regulation (EC) No 1258/1999
the common
of 17 May 1999 on the financing of
agricultural policy (1).

(47)

Rules should be established laying down who is entitled
to the aid in certain cases where a holding is transferred.

(48) As a general rule the Member States should take any
further measures necessary to ensure a proper func-
tioning of this Regulation. The Member States should
give each other mutual assistance where necessary.

(49)

appropriate,

The Commission should, where
be
informed of any measures taken by the Member States
to introduce changes to their implementation of the
integrated system. In order to enable the Commission to
monitor the integrated system effectively, the Member
States should send it certain annual control statistics.

shall be without prejudice to specific provisions laid down in
the Regulations covering the individual aid schemes.

Article 2

Definitions

For the purposes of this Regulation the following definitions
shall apply:

(a) ‘System for the identification and registration of bovine
animals’: the system for the identification and registration
of bovine animals established by Regulation (EC) No
1760/2000;

(b) ‘Ear tag’: the ear tag to identify animals individually, as
referred to in point (a) of Article 3 and in Article 4 of
Regulation (EC) No 1760/2000;

(c) ‘Computerised database’:

the computerised database as
referred to in point (b) of Article 3 and in Article 5 of
Regulation (EC) No 1760/2000;

(d) ‘Animal passport’: the animal passport to be issued as
referred to in point (c) of Article 3 and Article 6 of
Regulation (EC) No 1760/2000;

(e) ‘Register’: the register kept by the keepers of animals in
accordance with Article 4 of Council Directive 92/
102/EEC (2) or point (d) of Article 3 and Article 7 of
Regulation (EC) No 1760/2000 respectively;

(f) ‘Elements of the system for the identification and registra-
tion of bovine animals’: the elements referred to in Article
3 of Regulation (EC) No 1760/2000;

(50)

The measures provided for in this Regulation are in
accordance with the opinion of the Fund Committee,

(g) ‘Identification code’: the identification code as referred to
in Article 4(1) of Regulation (EC) No 1760/2000;

HAS ADOPTED THIS REGULATION:

TITLE I

GENERAL

Article 1

Scope

This Regulation lays down detailed rules for applying the inte-
grated administration and control system (hereinafter ‘the inte-
grated system’) established by Regulation (EEC) No 3508/92. It

(h) ‘Irregularities’: any non-compliance with the relevant rules

for the granting of the aid in question;

(i) ‘Area aid application’: application for the payment of aids
under aid schemes as referred to in Article 1(1)(a) and
(b)(iii) of Regulation (EEC) No 3508/92 and including the
in particular the
declaration of any other uses of area,
declaration of forage area for the purposes of livestock aid
applications;

(j) ‘Livestock aid application’: applications for the payment of
aids under aid schemes referred to in Article 1(1)(b)(i) and
(ii) of Regulation (EEC) No 3508/92;

(k) ‘Use’: the use of area in terms of the type of crop or

ground cover or the absence of a crop;

(l) ‘Bovine aid schemes’: aid schemes referred to in Article

(1)(b)(i) of Regulation (EEC) No 3508/92;

(1) OJ L 160, 26.6.1999, p. 103.

(2) OJ L 355, 5.12.1992, p. 32.

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(m) ‘Ovine/caprine aid scheme’: aid scheme referred to in
Article 1(1)(b)(ii) of Regulation (EEC) No 3508/92;

(n) ‘Claimed bovine animals’: bovine animals subject to a live-
stock aid application under the bovine aid schemes;

(o) ‘Unclaimed bovine animals’: bovine animals not yet subject
to a livestock aid application but potentially eligible for aid
under the bovine aid schemes;

(p) ‘Retention period’: period during which an animal

for
which aid has been claimed has to be kept on the holding,
as provided for in the following provisions:

— Article 5 and Article 9(1) of Commission Regulation
in relation to the special

(EC) No 2342/1999 (1),
premium for male bovines,

— Article 16 of Regulation (EC) No 2342/1999 in rela-

tion to the suckler cow premium,

— Article 37 of Regulation (EC) No 2342/1999 in rela-

tion to the slaughter premium,

— Article 1(3) of Commission Regulation (EEC) No 2700/
93 (2), in relation to aids paid for ovines and caprines;

(q) ‘Animal keeper’: any natural or legal person responsible for
animals whether on a permanent or on a temporary basis,
inlcuding during transportation or at a market;

(r) ‘Area determined’: the area for which all conditions laid
down in the rules for the granting of the aid have been
met;

(s) ‘Animal determined’: an animal for which all conditions
laid down in the rules for the granting of the aid have
been met;

(t) ‘Premium period’: period to which aid applications refer

irrespective of the moment of their submission.

Article 3

Identification of

farmers applying for aid under the

integrated system

The Member States shall introduce a single system to record
the identity of each farmer who submits an aid application
subject to the integrated system.

Article 4

Identification and minimum size of agricultural parcels

1.
The identification system referred to in Article 4 of Regu-
lation (EEC) No 3508/92 shall operate at agricultural parcel
level. The Member States may provide that another unit, such
as the cadastral parcel or production block, be used instead of
the agricultural parcel. In such cases the Member States shall
ensure that agricultural parcels are reliably identified and in

particular shall require area aid applications to be furnished
with particulars or accompanied by documents specified by the
competent authority that enable each agricultural parcel to be
located and measured.

2.
Each Member State shall determine the minimum size of
agricultural parcels in respect of which an application may be
made. However, the minimum size may not exceed 0,3 ha.

Article 5

General principles in respect of agricultural parcels

1.

For the purposes of this Regulation:

(a) a parcel that both contains trees and is used for crop
production covered by Article 1 of Regulation (EEC) No
3508/92 shall be considered an agricultural parcel provided
that the production envisaged can be carried out in a
similar way as on parcels without trees in the same area;

(b) where a forage area is used in common, the competent
authorities shall notionally allocate it between the indi-
vidual farmers in proportion to their use or right of use of
it;

(c) each forage area must be available for rearing animals for a
minimum period of seven months, starting on a date to be
determined by the Member State, which must be between 1
January and 31 March.

2. Where a forage area is situated in a Member State other
than that of the farmer's principal place of business that area
shall be deemed at the request of the farmer to be part of that
farmer's holding provided that:

(a) it is situated in the immediate vicinity of the holding, and

(b) a major part of all the agricultural land used by that farmer
is situated in the Member State in which he has his prin-
cipal place of business.

TITLE II

AID APPLICATIONS

CHAPTER I

Area aid applications

Article 6

Requirements pertaining to area aid applications

An area aid application shall contain all

1.
necessary to establish eligibility for the aid,

in particular:

information

(1) OJ L 281, 4.11.1999, p. 30.
(2) OJ L 245, 1.10.1993, p. 99.

(a) the identity of the farmer;

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(b) particulars permitting identification of all agricultural
parcels on the holding, their area expressed in hectares to
two decimal places, location, use, whether the agricultural
is irrigated, and the aid scheme concerned;
parcel

(c) a statement by the farmer that he is aware of the require-

ments pertaining to the aid in question.

2.
An area aid application submitted by a farmer who is a
member of a producer group as defined in Article 1(2) of
Regulation (EEC) No 3493/90, and who, in respect of the same
calendar year applies for both aid under the ovine/caprine aid
scheme and for aid under another Community scheme shall
specify all the agricultural parcels used by the producer group.
In such cases the forage area shall be notionally allocated
between the farmers concerned in proportion to their indi-
vidual
limits as determined in accordance with Article 6 of
Council Regulation (EC) No 2467/98 (1), valid on 1 January of
the year concerned.

3.
If an area aid application relates only to permanent
pasture the Member State concerned may provide that it may
be submitted by a date later than that fixed in accordance with
Article 6(2) of Regulation (EEC) No 3508/92 which shall not
be after 1 July.

The third subparagraph of Article 6(2) of Regulation (EEC) No
3508/92 shall apply mutatis mutandis.

Article 7

Declarations in relation to particular uses

Uses of area listed in the Annex to Regulation (EEC) No

1.
3508/92 shall be declared separately.

2.
Uses of area not listed in Article 1(1) or in the Annex to
Regulation (EEC) No 3508/92 shall be declared under one or
more ‘other uses’ headings.

3.
The Member States may provide that paragraphs 1 and 2
do not apply where such information is made available to the
competent authorities in the framework of other administra-
tion and control systems that guarantee compatibility with the
integrated system in accordance with Article 9a of Regulation
(EEC) No 3508/92.

The addition of agricultural parcels and amendments in
2.
accordance with paragraph 1 shall be notified to the competent
authority in writing no later than the date laid down for
sowing in, or fixed in accordance with Regulation (EC) No
1251/1999.

The third subparagraph of Article 6(2) of Regulation (EEC) No
3508/92 shall apply mutatis mutandis.

3. Where the competent authority has already informed the
farmer of irregularities in the aid application or where it has
given notice to the farmer of its intention to carry out an
on-the-spot check and where this on-the-spot check reveals
irregularities, additions and amendments in accordance with
paragraphs 1 and 2 shall not be authorised in respect of the
agricultural parcels affected by the irregularities.

Article 9

Exemption from area aid applications

An area aid application need not be submitted by farmers
applying for any of the following livestock aids:

(a) the deseasonalisation premium provided for in Article 5 of

Regulation (EC) No 1254/1999;

(b) the slaughter premium provided for in Article 11 of Regu-

lation (EC) No 1254/1999;

(c) the special premium for male bovine animals and/or the
suckler cow premium, where the farmer is exempt from the
to Article 12(1) of
stocking rate requirement pursuant
Regulation (EC) No 1254/1999, provided that the farmer
does not apply for the extensification payment provided for
in Article 13 of that Regulation;

(d) the aid provided for under the ovine/caprine aid scheme.

CHAPTER II

Livestock aid applications

Article 10

Requirements pertaining to livestock aid applications

A livestock aid application shall contain all information

1.
necessary to establish eligibility for the aid,

in particular:

Article 8

(a) the identity of the farmer;

Amendments of area aid applications

been submitted;

(b) a reference to the area aid application if this has already

1.
Subject to paragraph 3, after the expiry of the time limit
for the submission of area aid applications individual agricul-
tural parcels not yet declared in the aid application may be
added and changes regarding the use or aid scheme may be
made provided that the requirements under the sectoral rules
applicable to the aid scheme concerned are respected.

(1) OJ L 312, 20.11.1998, p. 1.

(c) the number of animals of each type in respect of which any
aid is applied for and, for bovines, the identification code of
the animals;

(d) where applicable, an undertaking by the farmer to keep the
animals referred to in point (c) on his holding during the
retention period and information on the location or loca-
tions where the animals will be held including the period
or periods concerned;

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(e) where applicable, the individual limit or individual ceiling

(a) the farmer is unambiguously identified and complies with

for the animals concerned;

all requirements;

(f) where applicable, the individual milk reference quantity
available to the farmer on 31 March or,
if the Member
State concerned decides to make use of the derogation
provided for in Article 44a of Regulation (EC) No 2342/
1999, on 1 April of the calendar year concerned; where
this quantity is unknown on the date on which the applica-
it shall be notified to the competent
tion is submitted,
authority at the earliest opportunity;

(g) a statement by the farmer that he is aware of the require-

ments pertaining to the aid in question.

If the animal is moved to another location during the retention
period the farmer shall
inform the competent authority in
writing in advance.

The Member States shall guarantee every animal keeper
2.
the right
to obtain from the competent authority without
constraint at reasonable intervals and without excessive delay
information on the data relating to him and his animals kept in
the computerised database. When submitting his aid applica-
tion, the farmer shall declare that this data is correct and
complete or he shall rectify any incorrect or add missing data.

3.
The Member States may decide that some of the informa-
tion referred to in paragraph 1 need not be included in the aid
application, where it has already been communicated to the
competent authority.

The Member States may in particular introduce procedures by
which data contained in the computerised database may be
used for the purpose of the aid application provided that the
computerised database offers the level of assurance and imple-
mentation necessary for the proper management of the aid
schemes involved.

4.
The Member States may provide that some of the infor-
mation referred to in paragraph 1 can or shall be forwarded via
a body or bodies approved by them. However, the farmer shall
remain responsible for the data transmitted.

CHAPTER III

Common provisions

Article 11

Electronic transmission

(b) all the necessary accompanying documents are received by
the competent authorities within the same time limits as in
the case of transmission by non-electronic means;

(c) there is no discrimination between farmers using non-elec-
tronic means of submission and those opting for electronic
transmission.

2.
Notifications to the computerised database shall have the
effect of an electronic transmission within the meaning of
paragraph 1 provided that the computerised database offers the
level of assurance and implementation necessary for the proper
management of the aid schemes involved.

Article 12

Adjustments of obvious errors

Without prejudice to Articles 6 to 11, an aid application may
be adjusted at any time after its submission, in cases of obvious
errors recognised by the competent authority.

Article 13

Late submission

1.
Except in cases of force majeure and exceptional circum-
stances within the meaning of Article 48, submission of an
area aid application or a livestock aid application after the time
limits laid down in the relevant sectoral rules shall lead to a
1 % reduction per working day in the amounts to which the
farmer would have been entitled if the aid application had been
lodged within the time limit.

the delay amounts to more than 25 calendar-days the

If
application shall be considered inadmissible.

Late submission of an area aid application that only relates to
permanent pasture shall lead to a reduction of half a percent
per working day in the amounts to which the farmer would
have been entitled under the aid schemes concerned. Where
such aid applications are submitted after 1 July they shall be
considered inadmissable.

However, where the Member States make use of the possibility
provided for in Article 6(3), no reductions shall apply in
respect of aid applications submitted before the date fixed by
the Member State. Aid applications submitted thereafter shall
be considered inadmissable.

1.
The Member States may permit communications required
under this Regulation from the farmer to the competent
authorities to be made by electronic transmission. In this event,
appropriate measures shall be taken to ensure that:

2.
Submission of an amendment to an area aid application
after the latest date for sowing as referred to in Article 8(2)
shall lead to a 1 % reduction per working day in the amounts
relating to the actual use of the agricultural parcels concerned.

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Amendments to an area aid application shall only be admis-
sible until the latest date for submission of an area aid applica-
tion as specified in paragraph 1. However, where that date is
earlier than, or the same as, the latest date for sowing as
referred to in Article 8(2), amendments to an area aid applica-
tion shall be considered inadmissable after that latest date for
sowing.

3.
Late submission of an area aid application shall not entail
reductions or exclusions from the livestock aids referred to in
Article 9.

4.
As regards forage areas, where the area aid application is
submitted late the resulting reduction shall be in addition to
any other reduction applicable to the late submission of
applications for aid referred to in Articles 12 and 13 of Regula-
tion (EC) No 1254/1999.

Article 14

Withdrawal of aid applications

An aid application may be totally or partially withdrawn

1.
at any time.

However, where the competent authority has already informed
the farmer of irregularities in the aid application or where the
competent authority has given notice to the farmer of
its
intention to carry out an on-the-spot check and where this
on-the-spot check reveals irregularities withdrawals shall not be
authorised in respect of the parts of the aid application affected
by the irregularities.

(a) cross-checks on declared agricultural parcels and animals in
order to avoid undue multiple granting of the same aid in
respect of the same calendar or marketing year and to
prevent any undue cumulation of aid granted under
Community aid schemes involving declarations of areas;

(b) cross-checks by means of the computerised database to

verify eligibility for the aid.

CHAPTER II

On-the-spot checks

Section I

C o m m o n p r o v i s i o n s

Article 17

General principles

1.
On-the-spot checks shall be unannounced. However,
provided that the purpose of the control is not jeopardized,
advance notice limited to the strict minimum necessary may be
given. Such notice shall, except in duly justified cases, not
exceed 48 hours.

2. Where appropriate, the on-the-spot checks provided for
in this Regulation, as well as any other checks provided for in
Community rules, shall be carried out at the same time.

2. Withdrawals in accordance with paragraph 1 shall put
the claimant into the position he was in before he submitted
the aid application or part of the aid application in question.

3.
The application or applications concerned shall be
rejected if the farmer or his representative prevent an on-the-
spot check from being carried out.

TITLE III

CHECKS

Article 15

General principle

Administrative and on-the-spot checks shall be made in such a
way as to ensure effective verification of compliance with the
terms under which aids are granted.

CHAPTER I

Administrative checks

Article 16

Cross-checks

The administrative checks referred to in Article 8(1) of Regula-
tion (EEC) No 3508/92 shall

include in particular:

Article 18

Control rate

The total number of on-the-spot checks carried out each

1.
year shall cover at least:

(a) 5 % of all farmers submitting area aid applications;

(b) 5 % of all farmers submitting livestock aid applications
under the bovine aid schemes, except where the computer-
ised database does not offer the level of assurance and
implementation necessary for the proper management of
the aid schemes involved,
in which case the percentage
shall be increased to 10 %. These on-the-spot checks shall
also cover at least 5 % of all animals per aid scheme for
which aid is applied for;

(c) 10 % of all farmers submitting livestock aid applications

under the ovine/caprine aid scheme.

Should on-the-spot checks reveal significant irregularities
2.
in the context of a given aid scheme or in a region or part of a
region the competent authority shall appropriately increase the
number of on-the-spot checks during the current year and
shall, moreover, appropriately increase the percentage of
farmers to be checked on-the-spot in the following year.

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is provided that particular elements of an
3. Where it
on-the-spot check may be carried out on the basis of a sample
this sample must guarantee a reliable and representative level
of control. The Member States shall establish the criteria for the
selection of the sample. If the checks on that sample reveal
irregularities, the extent and scope of the sample shall be
extended appropriately.

(d) the number and type of animals found and, where applic-
able, the ear-tag numbers, entries in the register and in the
computerised database and any supporting documents
checked, the results of the checks and, where applicable,
particular observations in respect of
individual animals
and/or their identification code;

(e) whether notice was given to the farmer of the visit and, if

so, the period of advance notification;

Article 19

(f) indication of any further control measures carried out.

Selection of applications to be checked on the spot

1.
Farmers subjected to on-the-spot checks shall be selected
by the competent authority on the basis of a risk analysis and
an element of
the aid applications
submitted. The risk analysis shall take account of:

representativeness of

(a) the amount of aid involved;

(b) the number of agricultural parcels and the area or number

of animals for which aid is requested;

(c) changes from the previous year;

2.
The farmer or his representative shall be given the oppor-
tunity to sign the report to attest his presence at the check and
to add observations. Where irregularities are found the farmer
shall receive a copy of the control report.

Where the on-the-spot check is carried out by means of remote
sensing in accordance with Article 23, the Member States may
decide not to give the farmer or his representative the oppor-
tunity to sign the control report if no irregularities are revealed
during the check by remote-sensing.

(d) the findings of checks made in past years;

Section II

(e) cases of non-compliance with Regulation (EC) No 1760/

2000;

(f) those farmers who are either just above or below ceilings

or limits relevant for the granting of aids;

(g) replacements of animals pursuant to Article 37;

(h) other factors to be defined by the Member States.

To provide the element of representativity, the Member States
shall select randomly between 20 % and 25 % of the minimum
number of farmers to be subject to on-the-spot checks.

2.
The competent authority shall keep records on the
reasons for the selection of each farmer for an on-the-spot
check. The inspector carrying out the on-the-spot check shall
be informed accordingly prior to the commencement of the
on-the-spot check.

Article 20

Control report

Every on-the-spot check shall be the subject of a control
1.
report which makes it possible to review the details of the
checks carried out. The report shall

indicate in particular:

(a) the aid schemes and applications checked;

(b) the persons present;

(c) the agricultural parcels checked, the agricultural parcels
measured, the results of the measurements per measured
agricultural parcel and the measuring methods used;

O n - t h e - s p o t c h e c k s o f a r e a a i d a p p l i c a t i o n s

Article 21

Elements of the on-the-spot checks

On-the-spot checks shall cover all the agricultural parcels for
which aid is requested under aid schemes within the meaning
of Article 1(1) of Regulation (EEC) No 3508/92. However, the
actual inspection in the field as part of the on-the-spot check
may be limited to a sample of at least half of the agricultural
parcels for which applications have been submitted.

Article 22

Determination of areas

1.
Agricultural parcel areas shall be determined by any
appropriate means defined by the competent authority which
ensure measurement of a precision at least equivalent to that
required for official measurements under the national rules.
The competent authority shall set a tolerance margin taking
account of the measuring method used, the accuracy of the
official documents available,
local factors such as slope and
shape of parcel and the provisions of paragraph 2.

The total area of an agricultural parcel may be taken into
2.
account provided that
is fully utilized according to the
customary standards of the Member State or region concerned.
In other cases the area actually utilized shall be taken into
account.

it

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In respect of those regions where certain features, in particular
hedges, ditches and walls, are traditionally part of good agricul-
ture cropping or utilisation practices, the Member States may
decide that the corresponding area is to be considered part of
the fully utilised area on condition that it does not exceed a
total width to be determined by the Member States. This width
must correspond to a traditional width in the region in ques-
tion and shall not exceed 2 metres.

The Member States may, after prior notification to the
Commission, allow a width greater than 2 metres if those areas
were taken into account for the fixing of the yields of the
regions concerned.

3.
The eligibility of agricultural parcels shall be verified by
any appropriate means. To this end additional proof shall be
requested where necessary.

Article 23

Remote sensing

1.
If a Member State makes use of remote sensing on all or
part of the sample referred to in Article 18(1)(a) the following
rules shall apply:

(a) the zones to be controlled by remote sensing shall, as far as
possible, be selected taking account of appropriate risk
factors to be determined by the Member State;

(b) the provisions of Article 19 shall apply only where not all
farmers submitting aid applications and falling within the
respective zone are subjected to on-the-spot checks.

As far as the controls by remote-sensing are concerned

2.
the Member State shall:

(a) perform photo interpretation of satellite images or aerial
photographs of all agricultural parcels to be checked with a
view to recognizing the ground cover and measuring the
area;

(b) check on the spot all applications for which photo inter-
pretation does not make it possible to verify the accuracy
of the declaration to the satisfaction of the competent
authority.

3.
If a Member State makes use of remote sensing the
additional checks referred to in Article 18(2) shall be carried
out by means of traditional on-the-spot checks if it is no longer
possible to carry them out by means of remote sensing within
the current year.

Section III

O n - t h e - s p o t c h e c k s o f

l i v e s t o c k a i d a p p l i c a t i o n s

Article 24

Timing of on-the-spot checks

1.
The minimum rate of on-the-spot checks provided for in
Article 18(1)(b), for aid schemes other than those provided for
in Article 4(6) and Article 11 of Regulation (EC) No 1254/
1999, shall be conducted throughout the retention period for
at least one of the aid schemes concerned.

2.
At least 50 % of the minimum rate of on-the-spot checks
provided for in Article 18(1)(c) shall be conducted throughout
the retention period. However, the minimum rate of on-the-
spot checks shall be fully conducted throughout the retention
period in Member States where the system established by
Directive 92/102/EEC as concerns ovines and caprines,
in
particular in relation to the identification of animals and the
proper keeping of registers,
fully implemented and
applied.

is not

Article 25

Elements of the on-the-spot checks

1.
On-the-spot checks shall cover all livestock for which aid
applications have been submitted under the aid schemes to be
checked and, in the case of checks of the bovine aid schemes,
also the unclaimed bovine animals.

2.

On-the-spot checks shall

include in particular:

(a) a check that the number of animals present on the holding
for which aid applications have been submitted and the
number of unclaimed bovine animals corresponds to the
number of animals entered in the registers and, in the case
of bovine animals, to the number of animals notified to the
computerised database;

(b) in relation to the bovine aid schemes, checks

— of the correctness of entries in the register and the
notifications to the computerised database on the basis
of a sample of supporting documents such as purchase
and sales invoices, slaughter certificates, veterinary certi-
ficates and, where applicable, animal passports, in rela-
tion to animals
for which aid applications were
submitted in the 12 months prior to the on-the-spot
check,

— that

information held in the computerised database
corresponds to the information given in the register on
the basis of a sample in relation to animals for which
aid applications were submitted in the 12 months prior
to the on-the-spot check,

— that all animals present on the holding and still kept
under the retention obligation are eligible for the aid
claimed,

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— that all bovine animals present on the holding are
identified by ear-tags and accompanied, where applic-
able, by animal passports and that they are recorded in
the register and have been duly notified to the compu-
terised database. These checks shall be made individ-
ually for each individual male bovine still kept under
the retention obligation for which an application has
been submitted for the special beef premium with the
exception of those submitted in accordance with Article
4(6) of Regulation (EC) No 1254/1999. In all other
cases the check on correct recording in the animal
passports, the register and notification to the database
may be made on the basis of a sample;

(c) in relation to the ovine/caprine aid scheme, a check on the
basis of the register that all the animals for which aid
applications were submitted in the 12 months prior to the
on-the-spot
check have been kept on the holding
throughout the retention period and a check of the correct-
ness of entries in the register on the basis of a sample of
supporting documents such as purchase and sales invoices
and veterinary certificates.

Article 26

Control-measures

as

regards on-the-spot

checks

in

slaughterhouses

1.
As regards the special beef premium provided for in
Article 4(6) of Regulation (EC) No 1254/1999 and the
slaughter premium provided for in Article 11 of that Regula-
tion, on-the-spot checks shall be carried out in the slaughter-
houses. In this case the Member States shall carry out on-the-
spot checks either:

(a) in at least 30 % of all slaughterhouses, selected on the basis
of a risk analysis, in which case the controls shall cover a
sample of 5 % of the total number of bovine animals which
have been slaughtered in the slaughterhouse concerned
during the 12 months prior to the on-the-spot check, or

(b) in at least 20 % of those slaughterhouses which have been
approved beforehand according to particular criteria of
reliability to be determined by the Member States and are
selected on the basis of a risk analysis, in which case the
controls shall cover a sample of 2 % of the total number of
bovine animals which have been slaughtered in the slaugh-
terhouse concerned during the 12 months prior to the
on-the-spot check.

On-the-spot checks in the slaughterhouses shall comprise
2.
physical checks of slaughtering procedures carried out on the
day of the on-the-spot check on the basis of a sample. Where
necessary, it shall be checked whether the carcasses presented
for weighing are eligible for aid.

Article 27

Control-measures as regards the premium granted after
export

1.
As regards the slaughter premium granted for bovine
animals exported to third countries in accordance with Article
11 of Regulation (EC) No 1254/1999 all loading operations
shall be subject to on-the-spot checks, which shall be carried
out as follows:

(a) at the time of loading, it shall be verified that all bovine
animals are identified by ear-tags. Furthermore, at least
10 % of the bovine animals so verified shall be checked
individually with a view to verifying their identification;

(b) at the time of the departure from the Community territory:

— where an official customs seal has been applied to the
means of transport, it shall be checked that the seal is
undamaged. If the seal is undamaged a sample check
shall only be carried out if there are doubts as to the
regularity of the load,

— where no official customs seal has been applied to the
means of transport or where a customs seal is damaged,
at least 50 % of bovine animals that were individually
checked at the time of loading shall be checked again.

The animal passports

2.
shall be surrendered to the
competent authority in accordance with Article 6(5) of Regula-
tion (EC) No 1760/2000.

3.
The paying agency within the meaning of Article 4(2) of
Regulation (EC) No 1258/1999 which is responsible for the
payment of the premium shall scrutinize the aid applications
on the basis of the payment files and other available informa-
tion, paying particular attention to the documents relating to
the export and the comments of the competent control author-
ities and shall check whether the animal passports have been
surrendered in accordance with paragraph 2.

Article 28

Special provisions as regards additional payments

These on-the-spot checks shall comprise a posteriori scrutiny
of documents, a comparison with the entries in the computer-
ised database and checks of summaries relating to the slaughter
certificates, or information in place thereof, which were sent to
other Member States in accordance with Article 35(3) of Regu-
lation (EC) No 2342/1999.

As regards the additional payments provided for in Article 15
of Regulation (EC) No 1254/1999 the Member State shall,
where appropriate, apply the provisions of this Title. If the
application of those provisions is not appropriate because of
the structure of the additional payment scheme, the Member
States shall provide controls ensuring a control level equivalent
to that laid down in this Regulation.

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Article 29

(a) forage areas declared for the purposes of Article 12 of

Regulation (EC) No 1254/1999;

Special provisions as regards the control report

1. 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 (1), the
control report provided for in Article 20 shall be supplemented
by reports in accordance with Article 2(5) of that Regulation.

2. With regard to the checks in slaughterhouses provided
for in Article 26(1), the control report provided for in Article
20 may consist of an indication in the slaughterhouse accounts
showing which animals have been subject to the checks.

With regard to the checks provided for in Article 26(2), the
report shall include, inter alia, the identification numbers, the
carcass weights and dates of the slaughter in relation to all
animals slaughtered and checked on the day of the on-the-spot
check.

3. With regard to the checks provided for in Article 27, the
control report may consist only of an indication of the animals
so checked.

4. Where on-the-spot checks conducted in accordance with
this Regulation reveal cases of non-compliance with the provi-
sions of Title I of Regulation (EC) No 1760/2000, copies of the
control report provided for in Article 20 shall be sent without
delay to the authorities responsible for the implementation of
Regulation (EC) No 2630/97.

TITLE IV

BASIS FOR THE CALCULATION OF THE AID, REDUCTIONS
AND EXCLUSIONS

CHAPTER I

Findings in relation to area aid applications

Article 30

General principles

For the purpose of this chapter the following crop-groups shall
be distinguished:

(b) forage areas other than pasture-land and other than areas
used for the production of arable-crops within the meaning
of Article 13(3)(b) of Regulation (EC) No 1254/1999
declared for the purposes of Article 13 of that Regulation;

(c) pasture land within the meaning of Article 13(3)(c) of
Regulation (EC) No 1254/1999 declared for the purposes
of Article 13 of that Regulation;

(d) permanent pasture land declared for the purposes of Article

19 of Council Regulation (EC) No 1255/1999 (2);

(e) crop areas for which a different aid rate is applicable;

(f) set-aside areas and, where applicable, set-aside areas for

which a different aid-rate is applicable.

Article 31

Basis of calculation

If the area of a crop group determined is found to be
the area

1.
greater than that declared in the aid application,
declared shall be used for calculation of the aid.

2. Without prejudice to reductions and exclusions
in
accordance with Articles 32 to 35, if the area declared in an
area aid application exceeds the area determined for that crop
group as a result of administrative or on-the-spot checks the
aid shall be calculated on the basis of the area determined for
that crop group.

3.
The calculation of the maximum eligible area for the area
payments to arable crop producers shall be made on the basis
of the area of set-aside land determined and on a pro rata basis
for each crop concerned. However, payments to arable crop
producers shall, in relation to the area of set-aside land deter-
mined, only be reduced to the level corresponding to the area
which would be needed to produce 92 tonnes of cereals in
accordance with Article 6(7) of Regulation (EC) No 1251/1999.

4.
If a farmer has been unable to comply with his obliga-
tions as a result of force majeure or exceptional circumstances
within the meaning of Article 48, he shall retain his right to aid
in respect of the area eligible at the time when the case of force
majeure or the exceptional circumstance occurred.

(1) OJ L 354, 30.12.1997, p. 23.

(2) OJ L 160, 26.6.1999, p. 48.

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Article 32

Article 34

Reductions and exclusions in cases of overdeclaration

Calculation of forage area for premiums referred to in
Article 12 of Regulation (EC) No 1254/1999

1.
If, in respect of a crop-group, the area declared exceeds
the area determined in accordance with Article 31(2) the aid
shall be calculated on the basis of the area determined reduced
by twice the difference found if that difference is more than
either 3 % or two hectares but no more than 20 % of the area
determined.

If the difference is more than 20 % of the area determined, no
area-linked aid shall be granted for the crop-group concerned.

2.
If, in respect of the overall area determined covered by an
application for aid under the aid schemes referred to in Article
1(1)(a) of Regulation (EEC) No 3508/92, the area declared
exceeds the area determined in accordance with Article 31(2)
by more than 30 %, the aid to which the farmer would have
been entitled pursuant to Article 31(2) shall be refused for the
calendar year in question under those aid schemes.

the difference is more than 50 %,

If
the farmer shall be
excluded once again from receiving aid up to an amount equal
to that to be refused under the first subparagraph. This amount
shall be off-set against aid payments under any of the aid
schemes referred to in Article 1(1) of Regulation (EEC) No
3508/92 to which the farmer is entitled in the context of
applications he lodges in the course of the three calendar years
following the calendar year of the finding.

Article 33

Intentional non-compliance

Where differences between the area declared and the area
determined in accordance with Article 31(2) result from irregu-
larities committed intentionally, the aid to which the farmer
would have been entitled pursuant to Article 31(2) shall not be
granted for the calendar year in question under the aid scheme
concerned.

Moreover, where that difference is more than 20 % of the area
determined, the farmer shall be excluded once again from
receiving aid up to an amount equal to that to be refused under
the first subparagraph. This amount shall be off-set against aid
payments under any of the aid schemes referred to in Article
1(1) of Regulation (EEC) No 3508/92 to which the farmer is
entitled in the context of applications he lodges in the course
of the three calendar years following the calendar year of the
finding.

1.
Articles 31, 32(1) and 33 shall apply to the calculation of
the forage-area for the granting of the aids referred to in Article
12 of Regulation (EC) No 1254/1999.

2. Where a difference of more than 50 % is found between
the area declared and the area determined in accordance with
Article 31(2), the farmer shall, in the framework of aid applica-
tions he lodges in the course of
the three calendar years
following the calendar year of the finding, be excluded once
again in respect of a forage area equal to the area for which aid
is refused under the second subparagraph of Article 32(1).

3.
Reductions and exclusions in accordance with paragraphs
1 and 2 shall only apply if the area declared resulted, or would
have resulted,

in a higher payment.

Article 35

Calculation of forage area for the extensification payment
in accordance with Article 13 of Regulation (EC)
No 1254/1999

1.
Extensification payments as provided for in Article 13 of
Regulation (EC) No 1254/1999 may not be granted for a
greater number of animals than that for which the premiums
referred to in Article 12 of that Regulation may be paid after
application of Article 34 of this Regulation.

2. Without prejudice to paragraph 1,
the forage area
concerned shall be determined in accordance with Article 31.

If the ceiling of the stocking density factor is not exceeded in
relation to the area thus determined the area determined shall
be the basis for the calculation of the extensification payment.

If the ceiling is exceeded, the total amount of aid to which the
farmer is entitled following aid applications under aid schemes
referred to in Article 12 of Regulation (EC) No 1254/1999
submitted during the calendar year
in question, shall be
reduced by 50 % of the amount the farmer has, or would
otherwise have, received as extensification payment.

3. Where the difference between the area declared and the
area determined results from irregularities committed inten-
tionally and where the ceiling of the stocking density factor is
exceeded in relation to the area determined, the total amount
of aid referred to in paragraph 2 shall be refused. In this case,
the second subparagraph of Article 33 shall, moreover, apply
accordingly.

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CHAPTER II

the limits provided for in those Articles without the loss of the
right to the payment of the aid applied for.

Findings in relation to livestock aid applications

Article 36

Basis of calculation

2.
Replacements pursuant to paragraph 1 shall occur within
20 days following the event necessitating the replacement and
shall be entered in the register not later than three days after
the day of replacement. The competent authority to which the
aid application was submitted shall be informed within ten
working days after the replacement.

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

In no case may aid be granted for a number of animals

2.
greater than that shown in the aid application.

3. Without prejudice to Articles 38 and 39, if the number of
animals declared in an aid application exceeds that determined
as a result of administrative or on-the-spot checks, the aid shall
be calculated on the basis of the animals determined.

However,
if a farmer has been unable to comply with his
retention obligation as a result of force majeure or exceptional
circumstances within the meaning of Article 48, he shall retain
his right to aid in respect of the number of animals eligible at
the time when the case of force majeure or the exceptional
circumstance occurred.

4. Where cases of non-compliance with the system for the
identification and registration for bovine animals are found the
following shall apply:

(a) a bovine animal which has lost one of the two eartags shall
be regarded as determined provided that it is clearly and
individually identified by the other elements of the system
for the identification and registration of bovine animals;

(b) where the irregularities found relate to incorrect entries in
the register or the animal passports, the animal concerned
shall only be deemed as not determined if such errors are
found on at least two checks within a period of 24 months.
In all other cases the animals concerned shall be deemed as
not determined already after the first finding.

The provisions of Article 12 shall apply in relation to entries
in, and notifications to, the system for the identification and
registration of bovine animals.

Article 37

Replacement

1.
Bovine animals present on the holding shall only be
regarded as determined if they are identified in the aid applica-
tion. However, suckler cows or heifers in respect of which aid
is claimed in accordance with Article 6(2) or Article 10(1) of
Regulation (EC) No 1254/1999 and dairy cows in respect of
which aid is claimed in accordance with Article 13(4) of that
Regulation may be replaced during the retention period within

Article 38

Reductions and exclusions in respect of bovine animals
claimed for aid

1. Where,
in respect of an application for aid under the
bovine aid schemes, a difference is found between the number
of animals declared and that determined in accordance with
Article 36(3), the total amount of aid to which the farmer is
entitled under
the premium period
concerned shall be reduced by the percentage to be established
in accordance with paragraph 3, if no more than 3 animals are
found with irregularities.

schemes

those

for

2.
If more than 3 animals are found with irregularities the
total amount of aid to which the farmer is entitled under those
schemes for the premium period concerned shall be reduced
by:

(a) the percentage to be established in accordance with para-
if this is not more than 10 %, or

graph 3,

(b) twice the percentage to be established in accordance with
paragraph 3, if this is more than 10 % but not more than
20 %.

If the percentage established in accordance with paragraph 3 is
more than 20 %, the aid to which the farmer would have been
entitled pursuant to Article 36(3) shall be refused under those
schemes for the premium period concerned.

If the percentage established in accordance with paragraph 3 is
more than 50 %, the farmer shall, moreover, be excluded once
again from receiving aid up to an amount equal to that to be
refused under the first subparagraph. This amount shall be
off-set against aid payments under the bovine aid schemes to
which the farmer is entitled in the context of applications he
lodges in the course of the three calendar years following the
calendar year of the finding.

3.
In order to establish the percentages referred to in para-
graphs 1 and 2, the bovine animals claimed under all bovine
aid schemes during the premium period concerned and found
with irregularities shall be divided by all bovine animals deter-
mined for the premium period concerned.

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4. Where differences between the number of animals
declared and that determined in accordance with Article 36(3)
result from irregularities committed intentionally the aid to
which the farmer would have been entitled pursuant to Article
36(3) shall be refused under the bovine aid scheme or schemes
concerned for the premium period in question.

Where the difference established in accordance with paragraph
3 is more than 20 %, the farmer shall be excluded once again
from receiving aid up to an amount equal to that to be refused
under the first subparagraph. This amount shall be off-set
against aid payments under the bovine aid schemes to which
the farmer is entitled in the context of applications he lodges in
the course of the three calendar years following the calendar
year of the finding.

the application of reductions in accordance with Article
38.

3. Where several on-the-spot checks are carried out
in
respect of the same farmer in the course of one year any
reductions to be applied according to paragraph 1 shall be
calculated on the basis of the arithmetical average of the results
established for each on-the-spot check.

If

the non-compliance referred to in paragraph 1 is
4.
committed intentionally, no aid shall be granted under the aid
scheme or schemes concerned for the premium period in
question.

Article 40

Article 39

Reductions and exclusions in respect of ovines/caprines
claimed for aid

Non-compliance with the provisions concerning the iden-
tification and registration of unclaimed bovine animals

1. Where cases of non-compliance with the provisions of
the system for the identification and registration of bovine
animals are found as a result of an on-the-spot check
concerning unclaimed bovine animals, the total amount of aid
to which the farmer is entitled pursuant to Article 36(3) under
the bovine aid schemes for the premium period concerned,
where appropriate after the application of reductions in accord-
ance with Article 38, shall, except in cases of force majeure or
exceptional circumstances within the meaning of Article 48, be
reduced by an amount to be calculated on the basis of the
formula set out in paragraph 2.

The same shall apply where more bovine animals have been
entered in, or notified to, the elements of the system for the
identification and registration of bovine animals than are
present on the holding.

Article 36(4) shall apply mutatis mutandis.

The calculation referred to in paragraph 1 shall be carried

2.
out according to the following formula:

In this formula the symbols shall mean:

a = the number of cases of non-compliance with the system
for the identification and registration of bovine animals;

b = the number of bovine animals present on the holding at

the time of the on-the-spot check;

c = the average number of bovine animals on the holding
during the year in which the on-the-spot check is carried
out by applying mutatis mutandis the methods used for the
purposes of Article 32 of Regulation (EC) No 2342/1999;

d = the total amount of aid to which the farmer is entitled
pursuant to Article 36(3) under the bovine aid schemes for
the premium period concerned, where appropriate after

Where,
in respect of applications for aid under the ovine/
caprine aid scheme, a difference is found between the number
of animals declared and that determined in accordance with
(3) and (4) shall apply mutatis
Article 36(3), Article 38(2),
mutandis as from the first animal in respect of which irregulari-
ties are found.

Article 41

Natural circumstances

The reductions and exclusions provided for in Articles 38 and
40 shall not apply in cases where, owing to the impact of
natural circumstances on the herd or flock, the farmer cannot
meet his commitment to keep the animals in respect of which
aid is claimed throughout the retention period, provided that
he has informed the competent authority in writing within ten
working days of
finding any reduction in the number of
animals.

Without prejudice to the actual circumstances to be taken into
account in individual cases, the competent authorities may
recognise, in particular, the following cases of natural circum-
stances of the herd or flock:

(a) death of an animal as a consequence of a disease;

(b) death of an animal following an accident for which the

farmer cannot be held responsible.

Article 42

False certificates and declarations issued by slaughter-
houses

As regards the declarations or certificates issued by slaughter-
houses in connection with the slaughter premium in accord-
ance with Article 35 of Regulation (EC) No 2342/1999, if it is
found that
the slaughterhouse gave a false certification or
declaration as a result of serious negligence or intentionally, the
Member State concerned shall apply appropriate national sanc-
tions. Where such irregularities are found a second time the
slaughterhouse involved shall be excluded for a period of at
least one year from the right to make declarations or to issue
certificates valid for premium purposes.

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Article 43

Article 47

Findings in relation to additional payments

Accumulation of sanctions

As regards the additional payments provided for in Article 14
of Regulation (EC) No 1254/1999 the Member States shall
provide for reductions and exclusions which shall, in substance,
be equivalent to those provided for in this Title.

CHAPTER III

Common provisions

Article 44

Reductions and exclusions under this Regulation shall

1.
apply independently from each other and individually.

2.
Subject to Article 6 of Council Regulation (EC) No 2988/
95 (1), the reductions and exclusions under this Regulation
shall be without prejudice to additional sanctions pursuant to
any other provisions under Community or national

law.

Article 48

Exceptions

from the application of

reductions

and

Force majeure and exceptional circumstances

exclusions

The reductions and exclusions provided for in this Title
1.
shall not apply where the farmer submitted factually correct
information or where he can show otherwise that he is not at
fault.

2.
The reductions and exclusions provided for in this Title
shall not apply with regard to those parts of the aid application
as to which the farmer informs the competent authority in
writing that the aid application is incorrect or has become
incorrect since it was lodged, provided that the farmer has not
been informed of the competent authority's intention to carry
out an on-the-spot check and that the authority has not already
informed the farmer of any irregularity in the application.

The information given by the farmer as referred to in the first
subparagraph shall have the effect that the aid application is
adjusted to the actual situation.

Article 45

Amendments and adjustments of entries in the computer-
ised database

In respect of claimed bovine animals, Article 44 shall
1.
apply from the time the aid application is submitted to errors
and omissions in relation to entries in the computerised data-
base.

2.
In respect of unclaimed bovine animals the reductions
and exclusions provided for in Article 39 shall not apply if the
farmer communicates amendments and adjustments of entries
in the computerised database to the competent authority
the
provided that
competent authority's intention to carry out an on-the-spot
check.

the farmer has not been informed of

Cases of force majeure and of exceptional circumstances
1.
with relevant evidence to the satisfaction of the competent
authority shall be notified in writing to the authority within ten
working days of the date on which the farmer is in a position
to do so.

Exceptional circumstances may be recognized by the

2.
competent authority in cases such as, for example:

(a) the death of the farmer;

(b) long-term professional

incapacity of the farmer;

(c) a severe natural disaster gravely affecting the holding's agri-

cultural

land;

(d) the accidental destruction of

livestock buildings on the

holding;

(e) an epizootic affecting part or all of the farmer's livestock.

Article 49

Recovery of undue payments

1.
If undue payment is made, the farmer shall repay the
amount in question plus interest calculated in accordance with
paragraph 3.

2.
The Member States may decide that recovery of an undue
payment is to be made by deduction of that amount from any
advances or payments under aid schemes referred to in Article
1(1) of Regulation (EEC) No 3508/92 made to the farmer
following the date of the decision to recover. However, the
farmer may repay the amount without waiting for the deduc-
tion.

TITLE V

GENERAL PROVISIONS

Article 46

Minimum payments

Interest

shall be calculated for

the period elapsing
3.
between the notification of the repayment obligation to the
farmer 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 amounts under
national provisions.

The Member States may decide not to grant any aid if the
amount per aid application does not exceed EUR 50.

(1) OJ L 312, 23.12.1995, p. 1.

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The repayment obligation referred to in paragraph 1 shall
4.
not apply if the payment was made by error of the competent
authority itself or of another authority and if the error could
not reasonably have been detected by the farmer.

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

5.
The repayment obligation referred to in paragraph 1 shall
not apply if the period which elapsed between the date of the
payment of the aid and that of the first notification to the
beneficiary by the competent authority concerning the undue
nature of the payment concerned is more than ten years.

However, the period referred to in the first subparagraph shall
be limited to four years if the beneficiary acted in good faith.

6.
the
Amounts to be recovered as a consequence of
application of reductions and exclusions pursuant to Article 13
and Title IV shall be subject to a prescription period of four
years.

Paragraphs 4 and 5 shall not apply in the case of

7.
advances.

8.
The Member States may decide not to recover amounts of
EUR 100 or less, not including interest, per farmer and per
premium period, provided that their national law provides for
non-recovery in such cases.

Article 50

Transfer of holdings

1.

For the purposes of this Article:

(a) the ‘transfer of a holding’ means the sale,

lease or any
similar type of transaction in respect of the production
units concerned;

(b) ‘transferor’ means the farmer whose holding is transferred

to another farmer;

(c) ‘transferee’ means the farmer to whom the holding is trans-

ferred.

2. Where a holding is transferred in its entirety from one
farmer to another farmer after an aid application has been
lodged and before all the conditions for granting the aid have
been fulfilled, no aid shall be granted to the transferor in
respect of the transferred holding.

The aid applied for by the transferor shall be granted to

3.
the transferee where:

(a) within a period of the transfer to be determined by the
Member States
the competent
the transferee informs
authority of the transfer and requests payment of the aid;

(b) the transferee presents any evidence required by the

competent authority;

(c) all the conditions for granting the aid are fulfilled in respect

of the holding transferred;

4.
Once the transferee informs the competent authority of
the transfer of the holding and requests payment of the aid in
accordance with point (a) of paragraph 3:

(a) all rights and obligations of the transferor resulting from
the legal
relationship between the transferor and the
competent authority generated by the aid application shall
be conferred on the transferee;

(b) all actions necessary for the granting of the aid and all
declarations made by the transferor prior to the transfer
shall be attributed to the transferee for the purpose of
applying the relevant Community rules;

(c) the holding transferred shall be considered, where appro-
priate, as a separate holding in respect of the marketing
year or premium period in question.

5. Where an aid application is lodged after the actions
necessary for the granting of the aid have been performed and
a holding is transferred in its entirety from one farmer to
another farmer after those actions have started but before all
the conditions for granting the aid have been fulfilled, the aid
may be granted to the transferee provided the conditions in
points (a) and (b) of paragraph 3 are fulfilled. In this case, point
(b) of paragraph 4 shall apply.

The Member States may decide, where appropriate, to

6.
grant the aid to the transferor. In this event:

(a) no aid shall be granted to the transferee, and

(b) the Member States shall ensure analogous application of

the requirements set out in paragraphs 2 to 5.

Article 51

Additional measures and mutual assistance between
Member States

take all

The Member States

1.
further measures
shall
required for the proper application of this Regulation and shall
give the mutual assistance needed for the purposes of checks
required pursuant
the
to this Regulation.
Member States may, where this Regulation does not provide
for appropriate reductions and exclusions, also provide appro-
priate national sanctions against producers or other marketing
participants such as slaughterhouses or associations involved in
the procedure for granting aid in order to ensure the compli-
ance with control requirements such as the current herd
register of the holding or the respect of notification obligations.

In this respect

2.
As far as necessary or provided, the Member States shall
assist one another mutually to ensure effective controls, and to
ensure the check on the authenticity of documents submitted
and/or the accuracy of the data exchanged.

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Article 52

Notifications

1. Where the Member States introduce changes to their
implementation of the integrated system they shall inform the
Commission thereof.

2.
The Member States shall send the Commission by 31
March each year at the latest, for arable crops, and by 31
August each year at the latest, for animal premiums, a report
covering the previous calendar year and, in particular, relating
to the following areas:

(a) the state of implementation of the integrated system;

(b) the number of applications as well as the total area and
total number of animals broken down by individual aid
scheme within the meaning of Article 1 of Regulation (EEC)
No 3508/92;

(c) the number of applications as well as the total area and

total number of animals covered by checks;

(d) the result of the checks carried out, indicating the reduc-

tions and exclusions applied pursuant to Title IV.

At the same time as the notifications referred to in the first
subparagraph in respect of animal premiums are sent to the
Commission, the Member States shall also notify the total
number of beneficiaries who received aids under aid schemes
falling within the scope of the integrated system.

In exceptional situations the Member States may, in agreement
with the Commission, derogate from the dates mentioned in
the first subparagraph.

The Member States shall

3.
national measures taken in application of this Regulation.

inform the Commission of

The computerised data established as a part of the inte-
4.
grated system shall be used to support the information speci-
fied in the framework of sectoral rules which the Member
States are obliged to send to the Commission.

TITLE VI

TRANSITIONAL AND FINAL PROVISIONS

Article 53

Repeal

1.
Regulation (EEC) No 3887/92 is hereby repealed.
However, it shall continue to apply in respect of aid applica-
tions relating to marketing years or premium periods which
expire before 1 January 2002.

2.
References to Regulation (EEC) No 3887/92 shall be
construed as references to this Regulation and shall be read in
accordance with the correlation table in the Annex.

Article 54

Entry into force

This Regulation shall enter

1.
into force on the day
following that of its publication in the Official Journal of the
European Communities.

It shall apply to aid applications relating to marketing

2.
years or premium periods starting as of 1 January 2002.

Article 3 and the second subparagraph of Article 52(2) shall
apply with effect from 1 January 2003.

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

Done at Brussels, 11 December 2001.

For the Commission

Franz FISCHLER

Member of the Commission

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ANNEX

CORRELATION TABLE

Regulation (EEC) No 3887/92

This Regulation

Article 1

Article 2(1)

Article 2(2)

Article 2(3)

Article 2(4)

Article 3

Article 4(1) first subparagraph

Article 1

Article 5(1)

—

Article 5(2)

Article 46

Article 4(1)

Article 6(1)

Article 4(1) second subparagraph

Article 2 point (k)

Article 4(1) third subparagraph

Article 4(2) point (a)

Article 4(2) point (b)

Article 4(3)

Article 4(4)

Article 4(5)

Article 4(6)

Article 4(7)

Article 5

Article 5a

Article 5b

Article 6(1)

Article 6(2)

Article 6(3)

Article 6(3a)

Article 6(4)

Article 6(5) first subparagraph

Article 6(5) second subparagraph

Article 6(5) third subparagraph

Article 6(5) subparagraph 4

Article 7

Article 8

—

Article 6(3)

—

Article 9

Article 6(2)

Article 4(2)

Article 10

Article 11

Article 12

Article 15

Article 16

Article 18(1) and (2)

—

Article 19

Article 17(1)

Article 21

Article 25(1)

Article 17(2)

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Regulation (EEC) No 3887/92

This Regulation

Article 6(6)

Article 6(6a) first, second and third subparagraphs

Article 6(6a) fourth subparagraph

Article 6(6a) fifth subparagraph

Article 6(6b)

Article 6(6c)

Article 6(7) and (8)

Article 6(9)

Article 7(1)

Article 7(2)

Article 7a(1) and (2) first and second subparagraphs

Article 7a(2) third subparagraph and (3) and (4)

Article 7b

Article 8

Article 9(1)

Article 9(2) first subparagraph first sentence

Article 25(2)

Article 26

Article 27

—

—

Article 18(3)

Article 22

Article 28

Article 23

—

Article 20

Article 29

Article 17(3)

Article 13

Article 31(1)

Article 31(2)

Article 9(2) first subparagraph second sentence and second subparagraph

Article 31(4) and Article 32(1)

Article 9(2) third subparagraph

Article 9(2) fourth subparagraph

Article 9(2) fifth subparagraph

—

Article 30

—

Article 9(2) sixth subparagraph

Article 2 point (r)

Article 9(2) seventh subparagraph

Article 9(3)

Article 9(4) first subparagraph

Article 9(4) second subparagraph

Article 10(1) to (4)

Article 10(5)

Article 10a

Article 10b

Article 10c

—

Article 33

Article 34

Article 31(3)

Article 36

Article 41

Article 37

Articles 38 and 40

Article 39

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Regulation (EEC) No 3887/92

This Regulation

Article 10d

Article 10e(1)

Article 10e(2)

Article 10f

Article 10g

Article 11(1)

Article 11(1a)

Article 11(2) and (3)

Article 12

Article 13

Article 14

Article 14a

Article 15

Article 16

Article 17(1) and (2)

Article 17(3)

Article 18

Article 19

Article 36(4)

Article 38(4) and Article 40

Article 42

—

Article 43

Article 47(2)

Article 44(2)

Article 48

—

—

Article 49

Article 50

Article 51

—

—

Article 52(2)

Article 52(3) and (4)

Article 54