Commission Regulation (EC) No 2199/2003 of 16 December 2003 laying down transitional measures for the application in respect of the year 2004 of Council Regulation (EC) No 1259/1999 as regards the single area payment scheme for the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia
Date: 2003-12-16
Institutions: European Commission
Subjects: accession to an agreement, aid per hectare, aid system, enlargement of the Union, utilised agricultural area

17.12.2003

EN

Official Journal of the European Union

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COMMISSION REGULATION (EC) No 2199/2003

of 16 December 2003

laying down transitional measures for the application in respect of the year 2004 of Council Regu-
lation (EC) No 1259/1999 as regards the single area payment scheme for the Czech Republic,
Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

(4)

Having regard to the Treaty establishing the European
Community,

Having regard to the Treaty of Accession of
the Czech
Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta,
Poland, Slovenia and Slovakia, and in particular Article 2(3)
thereof,

(5)

Having regard to the Act of Accession of the Czech Republic,
Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland,
Slovenia and Slovakia, and in particular the first subparagraph
of Article 41 thereof,

Whereas:

In order to ensure the correct implementation of the
single area payment scheme, 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 (3)
should apply, except as otherwise provided in this Regu-
lation.

In order to ensure that agricultural land is maintained in
good agricultural condition compatible with the protec-
tion of the environment referred to in Article 1b(6) of
Regulation (EC) No 1259/1999,
is appropriate to
establish a common framework within which each new
Member State may adopt standards taking account of
the specific characteristics of
the areas concerned,
including soil and climatic conditions, existing farming
systems (land use, crop rotation, farming practices) and
farm structures.

it

(1)

(2)

(3)

the

schemes under

Article 1b of Council Regulation (EC) No 1259/1999 of
17 May 1999 establishing common rules for direct
support
common agricultural
policy (1), as last amended by the Act of Accession of the
Czech Republic, Estonia, Cyprus, Latvia, Lithuania,
Hungary, Malta, Poland, Slovenia and Slovakia (herein-
after referred to as ‘the new Member States’), allows the
new Member States to replace the payments under the
support schemes referred to in Article 1 of that Regu-
lation with a single payment hereinafter referred to as
‘single area payment’.

That provision shall enter into force upon accession. In
order to facilitate the preparations for the transition
from the existing regime in the new Member States to
that resulting from the application of that provision, it is
appropriate to provide for transitional measures for the
first year of application and to allow for the possibility
of providing for advance payments in case of exceptional
circumstances.

It is appropriate to establish specific provisions for the
the new
conversion into the national currencies of
Member States of the amount to be granted in respect of
the year 2004 under the single area payment scheme.
The operative events for the exchange rates applicable
shall be fixed on the basis of the criteria mentioned in
Article 3 of Council Regulation (EC) No 2799/98 of 15
December 1998 establishing agrimonetary arrangements
for the euro (2).

(6)

The measures provided for in this Regulation are in
accordance with the opinion of the relevant Manage-
ment Committees,

HAS ADOPTED THIS REGULATION:

Article 1

Subject

This Regulation lays down transitional rules for the implemen-
tation in respect of the year 2004 of the single area payment
scheme for the new Member States provided for in Article 1b
of Regulation (EC) No 1259/1999.

Article 2

Exchange rate

The operative event for the conversion of the amount to be
granted under the single area payment scheme into the national
currencies of the new Member States shall be 1 July 2004.

(1) OJ L 160, 26.6.1999, p. 113.
(2) OJ L 349, 24.12.1998, p. 1.

(3) OJ L 327, 12.12.2001, p. 11. Regulation as last amended by Regu-

lation (EC) No 493/2003 (OJ L 73, 19.3.2003, p. 5).

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The exchange rate to be used shall be the average of the
exchange rates applicable during the period from 1 January
2004 to 30 June 2004, calculated pro rata temporis.

the area determined. This amount shall be offset against aid
payments 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 Commission shall fix the average exchange rate by 31 July
2004.

Article 3

Application of Regulation (EC) No 2419/2001

Regulation (EC) No 2419/2001 shall apply to the single area
payment scheme, except for Articles 5(1)(c) and (2), 6(2) and
(3), 7, 9, 10, 13(2), (3) and (4), 18(1)(b) and (c), 24 to 29,
31(3) and 32 to 43.

Article 4

Single area payment application

1.
In order to benefit from the single area payment scheme,
a farmer shall submit to the competent authority, by a date to
be fixed by the new Member State which shall not be later than
15 June 2004, an application indicating the areas eligible
according to the conditions referred to in Article 1b(5) of Regu-
lation (EC) No 1259/1999.

For modifications of applications

2.
to the single area
payment scheme, the date referred to in Article 8(2) of Regu-
lation (EC) No 2419/2001 shall be 15 June 2004.

2. Where differences between the area declared and the area
determined result from irregularities committed intentionally,
the aid to which the farmer would have been entitled shall not
be granted for the calendar year in question.

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 which corresponds to the differ-
ence between the area declared and the area determined. This
amount shall be offset against aid payments 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.
For the purpose of establishing the area determined
within the meaning of Article 2(r) of Regulation (EC) No 2419/
2001, the rules for granting the aid are those set out in Article
1b(5) and in the first subparagraph of Article 1b(6) of Regu-
lation (EC) No 1259/1999 and in Article 4 of this Regulation.

Article 6

Good agricultural and environmental condition

The single area payment application shall be treated as an
3.
aid application within the meaning of Article 2(i) of Regulation
(EC) No 2419/2001.

The new Member States shall ensure that all agricultural
1.
land, especially agricultural land which is no longer used for
production purposes,
is maintained in good agricultural and
environmental condition.

Article 5

Reductions

and exclusions

in respect of

eligibility

conditions

1.
Except in cases of force majeure or exceptional circum-
stances as defined in Article 48 of Regulation (EC) No 2419/
2001, where, as a result of an administrative or on-the-spot
check, it is found that the established difference between the
area declared and the area determined, within the meaning of
Article 2(r) of Regulation (EC) No 2419/2001, is more than
3 % but no more than 30 % of
the
amount to be granted under the single area payment scheme
shall be reduced, for the year in question, by twice the differ-
ence found.

the area determined,

If the difference is more than 30 % of the area determined, no
aid shall be granted for the year in question.

the difference is more than 50 %,

If
the farmer shall be
excluded once again from receiving aid up to an amount which
corresponds to the difference between the area declared and

The new Member States shall define minimum requirements
for good agricultural and environmental condition on the basis
of the framework set up in the Annex, taking into account the
including soil
specific characteristics of the areas concerned,
and climatic conditions, existing farming systems,
land use,
crop rotation, farming practices and farm structures.

2. Where the minimum requirements referred to in para-
graph 1 are not complied with in 2004, as a result of an action
or omission directly attributable to the individual farmer, the
total amount determined under the single area payment scheme
the calendar year 2004 shall be reduced as
in respect of
follows:

(a) in the case of negligent non-compliance in respect of any
one of the minimum requirements defined by the Member
State,
the
the percentage of reduction shall be 5 % of
amount determined for the area concerned by the non-
compliance. The reductions shall apply independently from
each other and individually. However, the total amount of
reductions shall not exceed 5 % of the total amount of aid
determined.

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(b) in the case of intentional non-compliance in respect of any
one of the minimum requirements defined by the Member
State, the percentage of reduction shall be 20 % of the
amount determined for the area concerned by the non-
compliance. The reductions shall apply independently from
each other and individually. However, the total amount of
reductions shall not exceed the total amount of aid deter-
mined in respect of the area concerned by the non-compli-
ance.

(c) in the case of intentional non-compliance in respect of all
the minimum requirements defined by the Member State,
no aid shall be granted in respect of the area concerned by
the non-compliance. Moreover, if more than 50 % of the
area determined is concerned by the non-compliance, the
farmer shall be totally excluded from receiving aid under
the single area payment scheme in respect of the current
calendar year.

The total amount of reductions provided for in the first sub-
paragraph shall not be more than the total amount of the aid
to be granted.

The reductions and exclusions provided for in this Regu-
3.
lation shall be without prejudice to additional
sanctions
pursuant to any other provisions under Community or national
law.

Article 7

Reduction coefficient

In case the single area payments in a new Member State would
exceed, after application of Article 5 and Article 6, the annual
financial envelope referred to in Article 1b(3) of Regulation
(EC) No 1259/1999, the new Member State concerned shall
communicate to the Commission the reduction coefficient
referred to Article 1b(7) of that Regulation by 30 November
2004 at the latest.

Article 8

Payment

Payments shall be made once a year within the period

1.
from 1 December 2004 to 30 April 2005.

2.
By way of derogation from paragraph 1 of this Article
and in accordance with the procedure referred to in Article
11(2) of Regulation (EC) No 1259/1999, the Commission may
authorise the new Member States, subject to the budgetary
situation, to pay prior to 1 December advances of up to 50 %
of the payments in regions where, due to exceptional condi-
tions, farmers face severe financial difficulties.

Article 9

Transmission of information to the Commission

The new Member States shall communicate a summary of
1.
the applications accepted under
the single area payment
scheme not later than 15 September 2004, indicating the total
amounts established for these applications in accordance with
Article 4.

2.
They shall communicate by 15 May 2005 the final data
corresponding to the areas for which aid has actually been paid
after the reductions provided for in Articles 5 and 6.

Article 10

Entry into force

This Regulation shall enter into force on 1 May 2004 subject
to the entry into force of the Treaty of Accession of the Czech
Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta,
Poland, Slovenia and Slovakia.

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

Done at Brussels, 16 December 2003.

For the Commission

Franz FISCHLER

Member of the Commission

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GOOD AGRICULTURAL AND ENVIRONMENTAL CONDITIONS REFERRED TO IN ARTICLE 6

ANNEX

Issue

Standards

Soil erosion:

Protect soil through appropriate measures

— Minimum soil cover
— Minimum land management

conditions

— Retention terraces

reflecting site-specific

Soil organic matter:

— Standards for crop rotations where applicable

Maintain soil organic matter levels through appropriate
practices

— Arable stubble management

Soil structure:

— Appropriate machinery use

Maintain soil structure through appropriate measures

Minimum level of maintenance:

— Minimum livestock stocking rates or/and appropriate

Ensure a minimum level of maintenance and avoid the
deterioration of habitats

regimes

— Protection of permanent pasture
— Retention of landscape features
— Avoiding the encroachment of unwanted vegetation on

agricultural land