Commission Regulation (EC) No 796/2004 of 21 April 2004 laying down detailed rules for the implementation of cross-compliance, modulation and the integrated administration and control system provided for in of Council Regulation (EC) No 1782/2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers
Date: 2004-04-21
Institutions: European Commission
Subjects: aid system, aid to agriculture, common agricultural policy, farmers' income, farming system, production aid

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COMMISSION REGULATION (EC) No 796/2004
of 21 april 2004
laying down detailed rules for the implementation of cross-compliance, modulation and the
integrated administration and control system provided for in of Council Regulation (EC)
No 1782/2003 establishing common rules for direct support schemes under the common
agricultural policy and establishing certain support schemes for farmers

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European
Community,

Having regard to Council Regulation (EC) No 1782/2003 of
29 September 2003 establishing common rules for direct support
schemes under the common agricultural policy and establishing
certain support schemes for farmers and amending Regulations
(EEC) No 2019/93, (EC) No 1452/2001, (EC) No 1453/2001,
(EC) No 1454/2001, (EC) 1868/94, (EC) No 1251/1999, (EC)
No 1254/1999, (EC) No 1673/2000, (EEC) No 2358/71 and (EC)
No 2529/2001 (1), and in particular Articles 7(1), 10(3), 24(2),
34(2), 52(2), 145(b), (c), (d), (g), (j), (k), (l), (m), (n), (p), thereof,

Whereas:

(1)

(2)

Regulation (EC) No 1782/2003 introduced the single pay-
ment scheme as well as certain other direct payment
schemes. At the same time it merged several existing direct
payment schemes. Moreover,
it establishes a principle
according to which direct payments to a farmer who does
not comply with certain conditions in the areas of public,
animal and plant health, environment and animal welfare
to reductions or
(‘cross-compliance’) shall be subject
exclusions.

The direct payment schemes first introduced as a result of
the reform of the common agricultural policy in 1992 and
further developed under the Agenda 2000 measures have
been subjected to an integrated administration and control
system (hereinafter referred to as ‘integrated system’). That
system has proven to be an effective and efficient means
for the implementation of direct payment schemes. Regu-
lation (EC) No 1782/2003 builds upon the basis of that
integrated system and submits to it the management and
control both of the direct payment schemes set up by it
and the adherence to the cross-compliance obligations.

(3)

It is therefore appropriate to repeal Commission Regula-
tion (EC) No 2419/2001 of 11 December 2001 laying

(4)

(5)

(6)

(7)

(8)

down detailed rules for applying the integrated administra-
tion and control system for certain Community aid
schemes
established by Council Regulation (EEC)
No 3508/92 (2) and to base this Regulation on the prin-
ciples as established by Regulation (EC) No 2419/2001.

For reasons of clarity, it is appropriate to provide for cer-
tain definitions.

Regulation (EC) No 1782/2003 provides, as part of the
cross-compliance conditions, for certain obligations of the
Member States on the one hand and individual farmers on
the other hand, as regards the maintenance of permanent
pasture. It is necessary to lay down the details for the deter-
mination of the ratio of permanent pasture and agricul-
tural land that has to be maintained and to provide for the
individual obligations at the level of farmers to be respected
where it is established that that proportion is decreasing to
the detriment of land under permanent pasture.

For the sake of effective control and to prevent the submis-
sion of multiple aid applications to different Paying Agen-
cies within one Member State, the Member States should
provide for a single system to record the identity of farm-
ers submitting aid applications subject to the integrated
system.

Detailed rules are needed with regard to the system for the
identification of agricultural parcels to be operated by the
Member States in accordance with Article 20 of Regulation
(EC) No 1782/2003. According to that provision use has
to be made of computerised geographic information sys-
tem techniques (GIS). It is necessary to clarify at which
level the system should operate and the level of details of
information that has to be available in the GIS.

Moreover, the introduction of an area payment for nuts in
Chapter 4 of Title IV of Regulation (EC) No 1782/2203
leads to the need for the introduction of a new layer of
information in the GIS. However,
it is appropriate to
release those Member States from this obligation where the
maximum guaranteed area is 1 500 ha or less and to pro-
vide for a higher control rate for on-the-spot checks
instead.

(1) OJ L 270, 21.10.2003, p. 1. Regulation as amended by Regulation

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

(EC) No 21/2004 (OJ L 5, 9.1.2004, p. 8).

lation (EC) No 118/2004 (OJ L 17, 24.1.2004, p. 7).

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(9)

In order to ensure a proper implementation of the single
payment scheme as provided for in Title III of Regulation
No 1782/2003, the Member States should establish an
identification and registration system according to which
the payment entitlements have to be traceable and which
allows, inter alia, to cross-check areas declared for the pur-
poses of the single payment scheme with the payment
entitlements available to each farmer and between the dif-
ferent payment entitlements as such.

to the particular climatic conditions in Finland and Swe-
den, these Member States should, on the basis of the sec-
ond subparagraph of that provision, be allowed to set a
later date which should not be later than 15 June. More-
over, case-to-case derogations should be envisaged on that
same legal basis should climatic conditions in a given year
in the future so require.

(10) Monitoring the

adherence

to the different

cross-
compliance obligations requires the setting-up of a control
system and of appropriate sanctions. For this purpose, dif-
ferent authorities within the Member States need to com-
municate information on aid applications, control-
samples, results of on-the-spot checks etc. Provision should
be made for the basic elements of such a system..

(11)

In order to contribute to the protection of the financial
interest of the Community it should be foreseen that pay-
ments under Regulation (EC) No 1782/2003 may only be
made once the checks with regard to the eligibility criteria
have been finalised.

(12) Regulation (EC) No 1782/2003 leaves a choice for the
Member States with regard to the application of certain of
the aid schemes provided for therein. This Regulation,
therefore, has to make provisions for the administration
and control needs in view of any possible choice that might
be taken. These provisions to be established in this Regu-
lation may, therefore, only apply to the extent as the Mem-
ber States have taken such choices.

(13)

For the sake of effective controls, any kind of area use and
of the aid schemes concerned should be declared at the
same time. Provision should, therefore, be made for sub-
mission of a single aid application comprising any appli-
cations for aid which are in some way related to area.

(14) A single application form should, moreover, even be sub-
mitted by farmers who do not apply for any of the aids
subjected to the single application if they have agricultural
area at their disposal.

(15)

In accordance with Article 34(2) of Regulation (EC)
No 1782/2003, the Member States may not fix a later date
than 15 May of a given year for the submission of appli-
cations for aid under the Single Payment scheme. All area-
related aid applications being subjected to the single appli-
cation, it is therefore appropriate to apply this rule also
with regard to all other area-related aid applications. Due

(16)

In the single application, the farmer should declare not
only the area he is using for agricultural purposes but also
his payment entitlements. Moreover, any specific informa-
tion relating to production of hemp, durum wheat, rice,
nuts, energy crops, starch potato and seeds should be
requested together with the single application.

(17) With a view to simplifying the application procedures and
in accordance with Article 22(2) of Regulation (EC)
No 1782/2003, provision should, in this context, be made
for Member States to provide the farmer as far as possible
with pre-printed information.

(18)

For the sake of effective monitoring, each Member State
should, furthermore, determine the minimum size of agri-
cultural parcels that may be subject to an aid application.

(19)

(20)

It should, furthermore, be provided that areas are declared
in the single application form for which no aid is being
requested. Depending on the kind of use, it may be impor-
tant to have exact information which is why certain uses
should be declared separately whilst other uses may be
declared under one heading. However, in case where Mem-
ber States already receive that kind of information deroga-
tion form this rule should be allowed.

To allow as much flexibility as possible with regard to
farmers planning concerning the use of area, they should
be allowed to amend their single application until such
dates where sowing would normally take place, provided
that all the particular requirements under the different aid
schemes are respected and that the competent authority
has not yet informed the farmer of errors contained in the
single application, nor notified an on-the-spot check which
reveals errors, in relation to the part affected by the amend-
ment. Following the amendment, the possibility must be
given to adjust the corresponding supporting documents
or contracts to be submitted.

(21)

In the case where a Member State opts for the application
of the various livestock aid schemes common provisions
should be made concerning the details to be included in
livestock aid applications.

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(22) Regulation (EC) No 1760/2000 of the European Parlia-
ment and of the Council of 17 July 2000 establishing a sys-
tem for the identification and registration of bovine ani-
mals and regarding the labelling of beef and beef products
and repealing Council Regulation (EC) No 820/97 (1)
requires keepers of bovine animals to communicate data
concerning these animals to a computerised database. In
accordance with Article 138 of Regulation (EC)
No 1782/2003, premiums under the bovine aid schemes
may only be paid for animals that are properly identified
and registered in accordance with Regulation (EC)
No 1760/2000. The computerised database has also gained
far-reaching importance as far as the management of the
aid schemes is concerned. Farmers submitting applications
under the aid schemes concerned should therefore be given
access to the relevant information in due time.

(23)

The Member States should be authorised to make use of
the information contained in the computerised database
with a view to introducing simplified application proce-
dures provided that the computerised database is reliable.
Different options should be provided for, allowing Mem-
ber States to make use of the information contained in the
computerised database for bovine animals for the purpose
of the submission and the management of aid applications.
However, where such options foresee that the farmer does
not have to identify individually the bovine animals with
regard to which he claims the premiums it should be made
clear that any potentially eligible animal with regard to
which irregularities are detected concerning the compli-
ance with the identification and registration system could,
for the purpose of applying sanctions, count as an animal
claimed for aid.

(24)

The details with regard to the submission and the sub-
stance of aid applications for the dairy premium and the
related additional payments have to be established.

(25) The general framework for the introduction of simplified
procedures in the context of communications between the
farmer and the Member States authorities should be set up.
That framework should, in particular, provide for the pos-
sibility to make use of electronic means. It has however to
be guaranteed that, in particular, the data thus proceeded
is fully reliable and that such procedures are operated with-
out any discrimination between farmers.

(1) OJ L 204, 11.8.2000, p. 1. Regulation as last amended by the Act
concerning the conditions of accession of the Czech Republic, the
Republic of Estonia, the Republic of Cyprus, the Republic of Latvia,
the Republic of Lithuania, the Republic of Hungary, the Republic of
Malta, the Republic of Poland, the Republic of Slovenia and the Slo-
vak Republic and the adjustments to the Treaties on which the Euro-
pean Union is founded - Annex II: List referred to in Article 20 of the
Act of Accession - 6. Agriculture - B. Veterinary and phytosanitary
legislation - I. Veterinary legislation (OJ L 236, 23.9.2003, p. 381.

(26) Where aid applications contain obvious errors they should

be adjustable at any time.

(27) Respect for the time limits for the submission of aid appli-
cations, for the amendment of area aid applications and for
any supporting documents, contracts or declarations is
indispensable to enable the national administrations to
programme and, subsequently, carry out effective 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.

(28)

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

(29) Compliance with the provisions on the aid schemes man-
aged under the integrated system should be effectively
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 the eligibility criteria established for the aid schemes and
the cross compliance obligations. Moreover, as regards
checks on the compliance with eligibility criteria, on-the-
spot checks should, as a general rule, be unannounced.
Where appropriate, the Member States should undertake
to combine the various controls under this Regulation.

(30)

The minimum number of farmers to be checked on the
spot under the various aid schemes should be determined.
In the case where Member States opt for the application of
the various livestock aid schemes, an integrated holding-
based approach should be foreseen in relation to farmers
applying for aids under those schemes.

(31)

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.

(32)

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 con-
sideration for the risk analysis should be specified.

(33) On-the-spot checks of farmers submitting aid applications
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

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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 selection of the sample to be checked.

(40)

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.

(34)

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.

(41) Article 52 of Regulation (EC) No 1782/2003 provides for
particular controls on the tetrahydrocannabinol (THC)
content in the case where a farmer grows hemp on parcels
declared for the purposes of the Single Payment scheme.
The details concerning such controls need to be
established.

(35) Moreover, 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 representative should
be given the opportunity to sign the report. However, in
the case of checks by means of remote-sensing the Mem-
ber States should be allowed to provide for this right only
in cases where the check reveals irregularities. Irrespective
of the kind of on-the-spot check carried out, the farmer
should receive a copy of the report if irregularities are
found.

(36) 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, aerial photography and so forth. The
second part consists of a physical inspection of the parcels
to verify the actual size of the agricultural parcels declared
and, depending on the aid scheme in question, the declared
crop and its quality. Where necessary, measurements
should be carried out. The physical inspection in the field
may be carried out on the basis of a sample.

(42)

(43)

In the case where a Member State opts for the application
of the various livestock aid schemes, where aid is being
applied for under those aid schemes, the timing and the
minimum content of on-the-spot checks should be speci-
fied. In order to check effectively the correctness of decla-
rations in aid applications and notifications to the comput-
erised database for bovine animals 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.

In the case where a Member State opts for the application
of the various aid schemes for bovine animals, the proper
identification and registration of bovine animals being an
eligibility condition pursuant to Article 138 of Regulation
(EC) No 1782/2003, it should be ensured that Community
aid is granted only for bovines properly identified and
registered. Such checks should also be carried out in respect
of bovine animals not yet claimed but which could be sub-
ject to an aid application in the future because such ani-
mals, due to the set-up of several of the bovine aid schemes,
are, in many cases, only claimed for aid after they have
already left the holding.

(37) Detailed rules regarding the determination of areas and the
measurement methods to be used should be laid down.
Where aid is paid for the production of certain crops, expe-
rience has shown that, in relation to the determination of
the area of agricultural parcels eligible for area payments,
it is necessary to define the acceptable width of certain fea-
tures of the fields, in particular hedges, ditches and walls.
In view of specific environmental needs, it is appropriate
to provide some flexibility within the limits taken into
account when the regional yields were fixed.

(44)

In the case where a Member State opts for the application
of the slaughter premium, 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 information contained in the computerised data-
base is correct. The Member States should be authorised to
apply two different bases for selecting slaughterhouses for
such checks.

(38) With regard to areas declared for the purpose of receiving
aid under the Single Payment scheme, a differentiated
approach should, however, be taken given the fact that
such payments are no more connected to an obligation to
produce.

(45)

In that case, 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.

(39) Given the particularities of the aid scheme for seed in
accordance with Article 99 of Regulation (EC)
No 1782/2003, special control provisions should be
established.

(46) The control provisions foreseen in relation to the livestock
aid should also, where appropriate, apply as regards addi-
tional payments pursuant to Article 133 of Regulation (EC)
No 1782/2003.

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(47)

Special control provisions have been established on the
basis of Commission Regulation (EC) No 1082/2003 of
23 June 2003 laying down detailed rules for the imple-
mentation of Regulation (EC) No 1760/2000 of the Euro-
pean Parliament and of the Council as regards the mini-
mum level of controls to be carried out in the framework
of the system for the identification and registration of
bovine animals (1). Where such checks under that Regula-
tion are carried out, the results should be contained in the
control report for the purposes of the integrated system.

(53) As a general rule, taking into account the different natures
of the cross compliance obligations, on-the-spot checks
should focus on all obligations the compliance with which
may be checked at the time of that visit. In addition, as
regards requirements and standards for which infringe-
ments could not be clearly established at the time of the
visit, the controller should identify cases to be submitted
for further checks if necessary.

(48) With regard to aid applications for the dairy premium and
the related additional payment, the main eligibility criteria
are the amount of milk that may be produced within the
reference quantity available to the farmer and whether the
farmer is actually a producer of milk. The reference quan-
tity is already known to the competent authorities of the
Member States. The main condition to be checked on-the-
spot is, therefore, whether the farmer is a producer of milk.
Such checks may be carried out in particular on the basis
of the farmers accounting or other registers.

(49) Regulation (EC) No 1782/2003 introduces cross compli-
ance obligations for farmers receiving aid-payments under
all direct payment schemes listed in Annex I to that Regu-
lation. It provides for a system of reductions and exclu-
sions where such obligations are not adhered to. The
details for that system should be established.

(50)

The details concerning the question which authorities in
the Member States carry out controls on cross compliance
obligations should be established.

(51)

In certain cases it might be useful for the Member States to
carry out administrative checks on cross compliance obli-
gations. However, that control-tool should not be made
compulsory on the Member States whilst it is useful to
envisage its use on a discretionary basis.

(52) The minimum control-rate for the respect of the cross
compliance obligations has to be established. That control-
rate should be fixed at 1 % of farmers falling under the area
of competence of each control authority to be selected on
the basis of an appropriate risk analysis. The sample should
either be drawn on the basis of the samples of farmers that
are selected for an on-the-spot check as regards eligibility
criteria, or from the overall population of farmers submit-
ting aid applications for direct payments. In the latter case
certain sub-options should be allowed.

(1) OJ L 156, 25.6.2003, p. 9.

(54) Rules for the setting-up of detailed and specific control
reports have to be established. The specialised controllers
in the field should indicate any findings and also the degree
of seriousness of such findings in order to enable the Pay-
ing Agency to fix the related reductions or, as the case may
be, to decide on exclusions from receiving direct payments.

(55) To protect the Communityʼs financial interests effectively
adequate measures should be adopted to combat irregulari-
ties and fraud. Separate provisions should be made in cases
of irregularities found with regard to eligibility criteria for
the different aid schemes concerned.

(56)

The system of reductions and exclusions envisaged in
Regulation (EC) No 1782/2003 with regard to cross com-
pliance obligations however targets at a different aim,
namely to set an incentive for farmers to respect the,
already existing, legislation in the different fields of cross
compliance.

(57) Reductions and exclusions should be established having
regard to the principle of proportionality and, in the case
of eligibility criteria, the special problems linked to cases of
force majeure as well as exceptional and natural circum-
stances. In the case of cross compliance obligations reduc-
tions and exclusions may only be applied where the farmer
acted negligently or intentionally. Reductions and exclu-
sions 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. They should, with regard to the eligibility criteria,
take into account the particularities of the various aid
schemes.

(58)

In relation to area aid applications, irregularities normally
affect parts of areas. Overdeclarations in respect of one
parcel may, therefore, be off-set against underdeclarations
of other parcels of the same crop-group. Within a certain
margin of tolerance it should be foreseen that aid applica-
tions are only adjusted to the area actually determined and
reductions only start to apply once this margin has been
exceeded.

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(59)

It is therefore necessary to define the areas falling within
the same crop-group. Areas declared for the purposes of
the Single Payment scheme should, in principle, fall within
the same crop-group. However, special rules need to be
established in view of determining which of the related
payment entitlements have been activated in case that a
discrepancy is established between the area declared and
the area determined. Moreover,
in accordance with
Article 54(6) of Regulation (EC) No 1782/2003, set-aside
entitlements have to be activated before any other entitle-
ments. Provisions have to be made in this context with
regard to two situations. Firstly, area declared as being set-
aside for the purpose of activating set-aside entitlements
and being found not to be set-aside in reality, has to be
deducted from the overall area declared for the purpose of
the Single Payment scheme as area not determined. Sec-
ondly, the same should be the case, on a fictional basis, in
respect of the area corresponding to set-aside entitlements
which are not being activated if, at the same time, other
entitlements are being activated along with the corre-
sponding area.

(60)

Special provisions are necessary to take into account the
particularities of aid applications under the aid schemes for
starch potato and seed. In the case where a Member State
opts for the application of the various livestock aid
schemes, where farmers apply for livestock aid and declare
forage area for that purpose, and where an overdeclaration
of such areas does not lead to a higher payment for live-
stock, no penalties should be foreseen.

(61) As far as livestock aid applications are concerned, irregu-
larities lead to the ineligibility of the animal concerned.
Reductions should be foreseen as from the first animal
found with irregularities but, irrespective of the level of the
reduction, there should be a less harsh sanction where
three animals or less are found with irregularities. In all
other cases the severity of the sanction should depend on
the percentage of animals found with irregularities.

(62)

(63)

Farmers should be allowed to replace the bovine and
ovine/caprine animals within the limits allowed under the
relevant sectoral rules. Where, due to natural circum-
stances, a farmer is unable to fulfil the retention obligations
under the sectoral rules, reductions and exclusions should
not be applied.

In the case where a Member State opts for the application
of the slaughter premium, due to the importance of slaugh-
terhouses for the proper functioning of some of the bovine
aid schemes, provision should also be made for cases
where slaughterhouses, gross negligently or intentionally,
issue false certificates or declarations.

(64) As far as irregularities are concerned as regards the addi-
tional payments provided for in Article 133 of Regulation

(EC) No 1782/2003, 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.

(65) Reductions and sanctions should be established as regards
dairy premium and additional payments in case a farmer
who applies for aid is not complying with its obligation of
producing milk.

(66) With regard to cross compliance obligations, apart from
grading reductions or exclusions in view of the principle of
proportionality, it should be provided that as of a certain
moment repeated infringements of the same cross compli-
ance obligation should, after a prior warning to the farmer,
be treated as an intentional non-compliance.

(67) Reductions and exclusions with regard to eligibility crite-
ria should, as a general rule, not apply where the farmer
submitted factually correct information or where he can
show otherwise that he is not at fault.

(68)

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 authorityʼs inten-
tion 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 incor-
rect data contained in the computerised database both in
respect of claimed bovine animals for which such irregu-
larities not only constitutes a non-respect of a cross com-
pliance obligation but also a breach of an eligibility-
criterion, and in respect of unclaimed bovine animals
where such irregularities are relevant only under the cross
compliance obligations.

(69) 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.

(70)

Specific and detailed provisions have to be laid down in
order to ensure the equitable application of various reduc-
tions to be applied in respect of one or several aid appli-
cations by the same farmer. The reductions and exclusions
provided for under this Regulation should apply without
prejudice to additional sanctions under any other provi-
sions of Community or national law.

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(71) Where, as a consequence of force majeure or exceptional cir-
cumstances, a farmer is not able to fulfil the obligations
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.

(72)

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

(73) Rules should be established laying down the consequences
of transfers of entire holdings which are under certain obli-
gations in accordance with the direct payment schemes
subject to the integrated system.

(74) As a general rule the Member States should take any fur-
ther measures necessary to ensure a proper functioning of
this Regulation. The Member States should give each other
mutual assistance where necessary.

(75) The Commission should, where appropriate, 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 inte-
grated system effectively, the Member States should send it

certain annual control statistics. The Member States should,
moreover, inform the Commission of any measures they
are taking with regard to the maintenance of land under
permanent pasture.

(76) Rules have to be established with regard to the basis for the
calculation of the reductions to be applied under modula-
tion in accordance with Article 10 of Regulation (EC)
No 1782/2003, the subsequent allocation key of the finan-
cial means thus becoming available, as well as the calcula-
tion of the additional amount of aid provided for in
Article 12 of that Regulation in order to fix the rules to
determine whether the threshold of EUR 5 000 referred to
in that Article has been reached.

that

(77) The present Regulation should start to apply as of 1 Janu-
ary 2005. As of
same date, Regulation (EC)
No 2419/2001 should be repealed. However, with regard
to aid applications relating to marketing years or premium
periods which start before 1 January 2005, that Regulation
should continue to apply. Special provisions are necessary
to ensure that reductions to be applied as a consequence of
the rules established in Regulation (EC) No 2419/2001
would not be emptied by the transfer to this new regime.

(78) The measures provided for in this Regulation are in accor-
dance with the opinion of the Management Committee for
Direct Payments,

HAS ADOPTED THIS REGULATION:

PART I

SCOPE AND GENERAL PROVISIONS

Article 1

Scope

and environmental condition in accordance with Article 5 of
Regulation (EC) No 1782/2003 or land under greenhouses
or under fixed or mobile cover;

This Regulation lays down the detailed rules for the implementa-
tion of cross-compliance, modulation and the integrated admin-
istration and control system (hereinafter ‘the integrated system’)
established by Title II of Regulation (EC) No 1782/2003. It shall
be without prejudice to specific provisions laid down in the Regu-
lations covering the individual aid schemes.

Article 2

Definitions

(2)

(3)

‘Permanent pasture’: shall mean land used to grow grasses or
other herbaceous forage naturally (self-seeded) or through
cultivation (sown) and that is not included in the crop rota-
tion of the holding for five years or longer;

‘System for the identification and registration of bovine ani-
mals’: shall mean the system for the identification and reg-
istration of bovine animals established by Regulation (EC)
No 1760/2000 of the European Parliament and of the
Council (2);

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

(1)

‘Arable land’: shall mean land cultivated for crop production
and land under set-aside, or maintained in good agricultural

(4)

‘Ear tag’: shall mean the ear tag to identify animals individu-
ally referred to in Articles 3(a) and 4 of Regulation (EC)
No 1760/2000;

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

(2) OJ L 204, 11.8.2000, p. 1.

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(5)

‘Computerised database for bovine animals’: shall mean the
computerised database referred to in Articles 3(b) and 5 of
Regulation (EC) No 1760/2000;

(19) ‘Unclaimed bovine animals’: shall mean bovine animals not
yet subject to a livestock aid application but potentially eli-
gible for aid under the bovine aid schemes;

(6)

‘Animal passport’: shall mean the animal passport referred to
in Articles 3(c) and 6 of Regulation (EC) No 1760/2000;

(20) ‘Retention period’: shall mean the 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:

(7)

‘Register’: shall mean the register kept by the keepers of ani-
mals in accordance with Article 4 of Council Directive
92/102/EEC (1), with Article 5 of Council Regulation (EC)
No 21/2004 (2), or Articles 3(d) and 7 of Regulation (EC)
No 1760/2000 respectively;

(8)

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

(9)

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

(10) ‘Irregularities’: shall mean any non-respect of the relevant

rules for the granting of the aid in question;

(11) ‘Single application’: shall mean the application for direct pay-
ments in respect of the single payment scheme and other
area-related aid schemes established under Titles III and IV of
Regulation (EC) No 1782/2003;

(12) ‘Area-related aid schemes’: shall mean the single payment
scheme and all aid schemes established under Title IV of
Regulation (EC) No 1782/2003, except those established
under Chapters 7, 11 and 12 of that Title;

(13) ‘Livestock aid application’: shall mean the applications for
the payment of aid under the sheep and goat premiums
scheme and the beef and veal payments scheme provided for
in Chapters 11 and 12 of Title IV, respectively, of Regula-
tion (EC) No 1782/2003;

(14) ‘Dairy premium aid application’: shall mean the applications
for the payment of aids under the dairy premium and addi-
tional payment scheme provided for in Chapter 7 of Title IV
of Regulation (EC) No 1782/2003;

(15) ‘Use’: shall mean the use of area in terms of the type of crop

or ground cover or the absence of a crop;

(a) Articles 5 and 9 of Commission Regulation (EC)
No 2342/1999 of 28 October 1999 laying down
detailed rules for the application of Council Regulation
(EC) No 1254/1999 on the common organisation of
in beef and veal as regards premium
the market
schemes (3), in relation to the special premium for male
bovines,

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

tion to the suckler cow premium,

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

tion to the slaughter premium,

(d) Article

2(3)

of Commission Regulation

(EC)
No 2550/2001 of 21 December 2001 laying down
detailed rules for the application of Council Regulation
(EC) No 2529/2001 on the common organisation of
the market in sheepmeat and goatmeat as regards pre-
mium schemes
and amending Regulation (EC)
No 2419/2001 (4) in relation to aids paid for ovines and
caprines;

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

(22) ‘Area determined’: shall mean the area for which all condi-
tions laid down in the rules for granting the aid have been
met; in the case of the single payment scheme, the area
declared may be deemed as being determined only if it is
actually being accompanied by a corresponding number of
payment entitlements;

(23) ‘Animal determined’: shall mean an animal for which all con-
ditions laid down in the rules for granting the aid have been
met;

(16) ‘Bovine aid schemes’: shall mean the aid schemes referred to

in Article 121 of Regulation (EC) No 1782/2003;

(24) ‘Premium period’: shall mean the period to which aid appli-
cations refer irrespective of the moment of their submission;

(17) ‘Ovine/caprine aid scheme’: shall mean the aid scheme
referred to in Article 111 of Regulation (EC) No 1782/2003;

(18) ‘Claimed bovine animals’: shall mean bovine animals subject
to a livestock aid application under the bovine aid schemes;

(1) OJ L 355, 5.12.1992, p. 32.
(2) OJ L 5, 9.1.2004, p. 8.

(25) ‘Geographical Information System’ (hereinafter referred to as
‘GIS’): shall mean the computerised geographical informa-
tion system techniques referred to in Article 20 of Regula-
tion (EC) No 1782/2003;

(3) OJ L 281, 4.11.1999, p. 30. Regulation as last amended by Regula-

tion (EC) No 1473/2003 (OJ L 211, 21.8.2003, p. 12.

(4) OJ L 341, 22.12.2001, p. 105. Regulation as last amended by Regu-

lation (EC) No 2307/2003 (OJ L 342, 30.12.2003, p. 11).

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(26) ‘Reference parcel’: shall mean a geographically delimited area
retaining a unique identification as registered in the GIS in
the Member State’s identification system referred to in
Article 18 of Regulation (EC) No 1782/2003;

(37) ‘Individual reference quantity determined’: shall mean the
individual reference quantities to which the farmer is
entitled.

(27) ‘Graphical material’: shall mean maps or other documents
used to communicate the contents of the GIS between the
aid applicants and the Member states;

Article 3

Maintenance of land under permanent pasture at Member
State level

(28) ‘National geodetic system’: shall mean a coordinate reference
system which permits standardised measurement and
unique identification of agricultural parcels throughout the
Member State concerned; where different coordinate sys-
tems are used, they shall be compatible within each Member
State;

(29) ‘Paying Agency’: shall mean the authorities and bodies
referred to in Article 4 of Council Regulation (EC)
No 1258/1999 (1);

(30) ‘Cross-compliance’: shall mean the statutory management
requirements and the good agricultural and environmental
conditions in accordance with Articles 4 and 5 of Regula-
tion (EC) No 1782/2003;

1. Without prejudice to the exceptions provided for in the
third subparagraph of Article 5(2) of Regulation (EC)
No 1782/2003, the Member States shall, pursuant to the first
paragraph thereof, ensure the maintenance of the ratio of the land
under permanent pasture in relation to the total agricultural area
as defined in Article 2 point (a) of Regulation (EC) No 796/2004
That obligation shall apply at national or regional level.

However, where the amount of land under permanent pasture in
absolute terms established in accordance with paragraph 4,
point (a) is maintained, the obligation set out in the first subpara-
graph of Article 5(2) of Regulation (EC) No 1782/2003 shall be
considered as being complied with.

(31) ‘Areas of cross-compliance’: shall mean the different areas of
statutory management requirements within the meaning of
Article 4(1) of Regulation (EC) No 1782/2003 and the good
agricultural and environmental condition as stipulated in
Annex IV to that Regulation;

For the purpose of applying the second subparagraph of
2.
Article 5(2) of Regulation (EC) No 1782/2003, the Member States
shall ensure that the ratio referred to in paragraph 1 shall not
decrease to the detriment of land under permanent pasture by
more than 10 % relatively to the ratio of reference for 2003.

(32) ‘Act’: shall mean each of the individual Directives and Regu-
lations listed in Annex III to Regulation (EC) No 1782/2003;
however, the Directive and the Regulations listed in points 6,
7, 8 and 8a of Annex III to that Regulation shall establish
one single act;

(33) ‘Standard’: shall mean the standards as defined by the Mem-
ber States in accordance with Article 5 and Annex IV of
Regulation (EC) No 1782/2003;

(34) ‘Requirement’: where this term is used in the context of
cross-compliance, it shall mean each individual statutory
management
the
Articles referred to in Annex III
to Regulation (EC)
No 1782/2003 within a given act, differing in substance
from any other requirements of the same act;

resulting from any of

requirement

(35) ‘Non-compliance’: shall mean any non-compliance with the
requirements, and standards; the non-compliance with the
obligations set out in Article 4 of this Regulation shall
equally constitute a case of non-compliance;

(36) ‘Specialised bodies’: shall mean the national competent
authorities responsible, in accordance with the first subpara-
graph of Article 25(2) of Regulation (EC) No 1782/2003, for
ensuring compliance with the statutory management
requirements and good agricultural and environmental
condition;

3.
The ratio referred to in paragraph 1 shall be established each
year on the basis of the areas declared by the farmers for the year
concerned.

The ratio of reference for 2003 referred to in paragraph 2

4.
shall be established as follows:

(a)

the land under permanent pasture shall be the land under
permanent pasture declared by the farmers in 2003, plus the
land under permanent pasture declared in 2005 in accor-
dance with Article 14(1) of this Regulation and that has not
been declared for any use other than grassland in 2003,
unless the farmer can demonstrate that such land was not
under permanent pasture in 2003.

Areas declared in 2005 as land under permanent pasture and
that in 2003 were eligible for the arable crops area payment
in accordance with Article 1(3) of Council Regulation (EC)
No 1251/1999 of 17 May 1999 establishing a support sys-
tem for producers of certain arable crops (2) shall be
discounted.

Land that was under permanent pasture in 2003 and that has
been afforested since 2003 or yet to be afforested in accor-
dance with the third subparagraph of Article 5(2) of Regula-
tion (EC) No 1782/2003 shall be discounted.

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

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

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(b)

the total agricultural area shall be the total agricultural area
declared by the farmers in 2005.

single applications had to be submitted at the latest in accordance
with Article 11 in the Member State concerned.

Article 4

Maintenance of land under permanent pasture
at individual level

is established that

1. Where it
the ratio referred to in
Article 3(1) of this Regulation is decreasing the Member State con-
cerned shall, at national or regional level, provide for the obliga-
tion of farmers applying for aid under any of the direct payment
schemes listed in Annex I of Regulation (EC) No 1782/2003 not
to convert
land under permanent pasture without prior
authorisation.

2. Where it is established that the obligation referred to in
Article 3(2) of this Regulation cannot be ensured, the Member
State concerned shall, further to the measures to be taken in
accordance with paragraph 1, provide, at national or regional
level, for the obligation of farmers applying for aid under any of
the direct payment schemes listed in Annex I of Regulation (EC)
No 1782/2003 to re-convert land into land under permanent pas-
ture for those farmers who have land at their disposal which was
converted from land under permanent pasture into land for other
uses.

This obligation shall, in 2005, apply with regard to land con-
verted into land for other uses since the date provided for the sub-
mission of the area aid applications for 2003. As of 2006, this
obligation shall apply with regard to land thus converted since the
start of the 12-months period preceding the last date at which the

In such case, farmers shall re-convert a percentage of that area
into land under permanent pasture or establish such an amount
of area as land under permanent pasture. That percentage shall be
calculated on the basis of the amount of area thus converted by
the farmer and the amount of area needed to re-establish the
balance.

However, where such land was subject to a transfer after it had
been converted into land for other uses, this obligation shall only
apply if the transfer took place after the entry into force of this
Regulation.

By way of derogation from Article 2, point 2, areas re-converted
or established as land under permanent pasture shall, as of the
first day of the re-conversion or establishment be considered as
‘permanent pasture’.

3.
However, the obligation for farmers set out in paragraphs 1
and 2 shall not apply where farmers created land under perma-
nent pasture in the framework of programmes in accordance with
Council Regulations (EEC) No 2078/92 of 30 June 1992 on agri-
cultural production methods compatible with the requirements of
the protection of the environment and the maintenance of the
countryside (1) and (EC) No 1257/1999 of 17 May 1999 on sup-
port for rural development from the European Agricultural Guid-
ance and Guarantee Fund (EAGGF) and amending and repealing
certain Regulations (2) and Council Regulation (EC) No 1017/94
of 26 April 1994 concerning the conversion of land currently
under arable crops to extensive livestock farming in Portugal (3).

THE INTEGRATED ADMINISTRATION AND CONTROL SYSTEM

PART II

TITLE I

GENERAL

Article 5

Identification of farmers

Without prejudice
to Article 22(3) of Regulation (EC)
No 1782/2003, the single system to record the identity of each
farmer provided for by Article 18(1)(f) of that Regulation shall
guarantee a unique identification with regard to all aid applica-
tions submitted by the same farmer.

reference parcel level such as cadastral parcel, or production block
which shall ensure unique identification of each reference parcel.

Member States shall, moreover, ensure that agricultural parcels
are reliably identified and shall in particular require the single
application to be furnished with particulars or accompanied by
documents specified by the competent authority that enable each
agricultural parcel to be located and measured. The GIS shall
operate on the basis of a national geodetic system.

2.
The Member State shall ensure that with regard to at least
75 % of the reference parcels being subject to an aid application,
at least 90 % of the respective area is eligible pursuant to the
single payment scheme. The assessment shall be made on an
annual basis using appropriate statistical methods.

Article 6

Identification of agricultural parcels

In respect of the area payment for nuts provided for in
3.
Chapter 4 of Title IV of Regulation (EC) No 1782/2003, the

The identification system for agricultural parcels referred to
1.
in Article 20 of Regulation (EC) No 1782/2003 shall operate at

(1) OJ L 215, 30/7/1992, p. 85
(2) OJ L 160, 26/06/1999, p. 80
(3) OJ L 112, 3.5.1994, p.2.

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Member States for which the national guaranteed area fixed in
Article 84(3) of that Regulation is more than 1 500 ha, shall
introduce, as from 1 January 2006, an additional layer of GIS
information relating to the number of trees per parcel, their type,
their positioning and the calculation of the orchard’s surface.

Article 7

Identification and registration of payment entitlements

1.
The system for the identification and registration of pay-
ment entitlements provided for in Article 21 of Regulation (EC)
No 1782/2003 shall be an electronic register at Member State
level and shall, in particular with regard to the cross-checks pro-
vided for in Article 24 of this Regulation, ensure effective trace-
ability of the payment entitlements, in particular as regards the
following elements:

(a) holder;

(b) value;

(c) date of establishment;

(d) date of last activation;

(e) origin, in particular with regard to its attribution, original or

national reserve, purchase, lease, inheritance;

(f)

kind of entitlement,
in particular set-aside entitlements,
entitlements subject to special conditions in accordance with
Article 48 of Regulation (EC) No 1782/2003, and entitle-
ments with authorisation in accordance with Article 60 of
that Regulation;

(g) where applicable, regional restrictions.

2. Member States in which there is more than one Paying
Agency, may decide to operate the electronic register at Paying
Agency level. In that case, the Member State concerned shall
ensure that the different registers are compatible with each other.

Article 8

General principles in respect of agricultural parcels

1.
A parcel that contains trees shall be considered an agricul-
tural parcel for the purposes of the area-related aid schemes pro-
vided that agricultural activities referred to in Article 51 of Regu-
lation (EC) No 1782/2003 or, where applicable, the production
envisaged can be carried out in a similar way as on parcels with-
out trees in the same area.

2. With regard to forage area:

(b)

(c)

for the purposes of applying Article 131 of Regulation (EC)
No 1782/2003, each forage area must be available for rear-
ing animals for a minimum period of seven months, starting
on a date to be determined by the Member State, which shall
be between 1 January and 31 March.

for the purposes of applying Article 131 of Regulation (EC)
No 1782/2003, where a forage area is situated in a Member
State other than that of the farmerʼs principal place of busi-
ness, that area shall be deemed, at the request of the farmer,
to be part of that farmerʼs holding provided that it is situated
in the immediate vicinity of the holding and that a major part
of all the agricultural land used by that farmer is situated in
the Member State in which he has his principal place of
business.

Article 9

Control system as regards cross-compliance

Member States shall establish a system guaranteeing an effective
control on the respect of cross-compliance. That system shall, in
accordance with Chapter III of Title III of this Regulation, in par-
ticular provide for:

(a) where the competent control authority is not the Paying
Agency, the transfer of the necessary information concern-
ing the farmers applying for direct payments from the Pay-
ing Agency to the specialised control bodies and/or, where
applicable, via the coordinating body referred to in
Article 23(3) of Regulation (EC) No 1782/2003;

(b)

the methods to be applied for the selection of control
samples;

(c)

indications with regard to the nature and extent of the checks
to be carried out;

(d) control reports containing in particular any detected non-
compliance and an assessment of its severity, extent, perma-
nence and repetition;

(e) where the competent control authority is not the Paying
Agency, the transfer of the control reports from the special-
ised control bodies either to the Paying Agency or the coor-
dinating body referred to in Article 23(3) of Regulation (EC)
No 1782/2003 or both;

(f)

the application of the system of reductions and exclusions by
the Paying Agency.

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

Member States may, moreover, provide for a procedure accord-
ing to which the farmer indicates to the Paying Agency the ele-
ments necessary to identify the requirements and standards appli-
cable to him.

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Article 10

Payment of aid

1. Without prejudice to the time period provided for in
Article 28(2) of Regulation (EC) No 1782/2003 or any rules pro-
viding for the payment of advances in accordance with paragraph
3 of that Article, direct payments falling within the scope of this
Regulation shall not be made before the checks with regard to eli-
gibility criteria, to be carried out by the Member State pursuant to
this Regulation, have been finalised.

2. With regard to checks of cross-compliance specified in
chapter III of Title III of the present Regulation where such checks
cannot be finalised before payment, any undue payments shall be
recovered according to Article 73 of the this Regulation.

TITLE II

AID APPLICATIONS

CHAPTER I

THE SINGLE APPLICATION

When fixing that date, Member States shall take into account the
period required for all relevant data to be available for the proper
administrative and financial management of the aid and shall
ensure that effective controls may be scheduled, in particular con-
sidering the date to be fixed in accordance with Article 44(3) of
Regulation (EC) No 1782/2003.

3. Where more than one Paying Agency is responsible with
regard to the same farmer for the management of aid schemes
subjected to the submission of a single application, the Member
State concerned shall take the appropriate measures to ensure that
the information requested in this Article is being made available
to all Paying Agencies involved.

Article 12

Contents of the single application

The single application shall contain all information neces-

1.
sary to establish eligibility for the aid, in particular:

(a)

the identity of the farmer;

(b)

the aid scheme or schemes concerned;

Article 11

Date of submission of the single application

(c)

the identification of the payment entitlements in accordance
with the identification and registration system provided for
in Article 7 for the purposes of the single payment scheme,
broken down by
and other
entitlements;

entitlements

set-aside

A farmer applying for aid under any of the area-related aid

1.
schemes may only submit one single application per year.

A farmer who does not apply for aid under any of the area-related
aid schemes but applies for aid under another aid scheme listed
in Annex I of Regulation (EC) No 1782/2003, shall submit a
single application form if he has agricultural area as defined in
Article 2, point (a) of Regulation (EC) No 796/2004 at his disposal
in which he shall list these areas in accordance with Article 14.
However, Member States may exempt farmers from this obliga-
tion where the information concerned is made available to the
competent authorities in the framework of other administration
and control systems that guarantee compatibility with the inte-
grated system in accordance with Article 26 of Regulation (EC)
No 1782/2003.

(d) particulars permitting identification of all agricultural parcels
on the holding, their area expressed in hectares to two deci-
mal places, their location and, where applicable, their use and
whether the agricultural parcel is irrigated;

(e) a statement by the farmer that he is aware of the conditions

pertaining to the aid schemes in question.

2.
For the purpose of the identification of the payment entitle-
ments referred to in paragraph 1(c), the pre-printed forms distrib-
uted to the farmer in accordance with Article 22(2) of Regulation
(EC) No 1782/2003 shall mention the identification of the pay-
ment entitlements in accordance with the identification and reg-
istration system provided for in Article 7 broken down by set-
aside entitlements and other entitlements.

The single application shall be submitted by a date to be
2.
fixed by the Member States which shall not be later than 15 May.
Finland and Sweden may, however, fix a later date which shall not
be later than 15 June.

When submitting the application-form, the farmer shall correct
the pre-printed form if any amendments, in particular transfers of
payment entitlements in accordance with Article 46 of Regula-
tion (EC) No 1782/2003, have occurred.

In accordance with the procedure referred to in Article 144(2) of
Regulation (EC) No 1782/2003, it may be allowed to postpone
the dates referred to in the first subparagraph of this paragraph in
certain zones where exceptional climatic conditions render the
normal dates inapplicable.

The farmer shall declare separately the area supporting set-aside
entitlements and the area supporting other entitlements. In accor-
dance with Article 54(6) of Regulation (EC) No 1782/2003, the
farmer shall claim his set-aside entitlements before any other
entitlements. Consequently, the farmer shall declare the area for

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set-aside corresponding to his number of set-aside entitlements
provided he has a sufficient amount of eligible area at his disposal.
In case the amount of eligible area is less than the number of set-
aside entitlements, the farmer may claim the number of set-aside
entitlements corresponding to the amount of area at his disposal.

3.
For the purpose of the identification of all agricultural par-
cels on the holding referred to in paragraph 1(d), the pre-printed
forms distributed to the farmer in accordance with Article 22(2)
of Regulation (EC) No 1782/2003 shall mention the maximum
eligible area per reference parcel for the purposes of the single
payment scheme. Moreover, the graphical material supplied to the
farmer in accordance with that same provision shall indicate the
boundaries of the reference parcels and their unique identification
and the farmer shall indicate the location of each agricultural par-
cel. When submitting the application-form, the farmer shall,
moreover, correct the pre-printed form if any amendments have
occurred.

Article 13

Specific requirements pertaining to the single application

In the case where an application for aid for arable crops area
1.
payments in accordance with Chapter 10 of Title IV of Regula-
tion (EC) No 1782/2003 contains a declaration of the cultivation
of flax and hemp grown for fibre pursuant to Article 106 of that
Regulation, the official labels used on the packaging of the seeds
in accordance with Council Directive 2002/57/EC (1), and in par-
ticular Article 12 thereof, shall be submitted or, in the case of flax
grown for fibre, any other documents recognised as equivalent by
the Member State concerned, including the certification provided
for in Article 19 of that Directive.

State has provided that that copy may be submitted by a later
date which shall not be later than 15 September;

(b)

in the case referred to in Article 52 of that Regulation, an
indication as to the quantities of the seeds used (kg per
hectare);

(c)

the official labels used on the packaging of the seeds in accor-
dance with Directive 2002/57/EC, and in particular
Article 12 thereof; however, where sowing takes place after
the deadline for submitting the single application, the labels
shall be submitted by 30 June at the latest; where the labels
also have to be submitted to other national authorities, the
Member States may provide for those labels to be returned to
the farmer once they have been submitted in accordance with
this point.

2.
In the case of set-aside land used in accordance with
Article 55(b) of Regulation (EC) No 1782/2003 or the first indent
of Article 107(3) of that Regulation, the single application shall
contain the necessary proof required under the applicable sectoral
rules.

3.
In the case of an application for aid for the specific quality
premium for durum wheat provided for in Chapter I of Title IV
of Regulation (EC) No 1782/2003 and for the durum wheat
supplement and special aid provided for in Article 105 of that
Regulation, the single application shall contain a proof, pursuant
to the rules to be established by the Member State, that the mini-
mum quantity of certified seeds for durum wheat has been used.

Where sowing takes place after the deadline for submitting the
single application, those labels or documents shall be submitted
by 30 June at the latest.

4.
In the case of an application for the crop specific payment
for rice provided for in Chapter 3 of Title IV of Regulation (EC)
No 1782/2003, the single application shall contain a specifica-
tion of the variety of rice sown and an identification of the respec-
tive parcels.

Where labels for seed of hemp grown for fibre also have to be
submitted to other national authorities, Member States may pro-
vide for those labels to be returned to the farmer once they have
been submitted.

In the case of hemp grown for fibre, all information required for
the identification of the parcels sown in hemp for each variety of
hemp sown shall be provided.

In that case and in the case where a farmer intends to produce
hemp in accordance with Article 52 of Regulation (EC)
No 1782/2003, the single application shall contain:

In the case of an application for an area payment for nuts
5.
provided for in Chapter 4 ot Title IV of Regulation (EC)
No 1782/2003, the single application shall contain the number
of trees, their positioning and their type.

6.
In the case of an application for energy crops provided for
in Chapter 5 of Title IV of Regulation (EC) No 1782/2003, the
single application shall contain a copy of the contract the appli-
cant has concluded with a first processor pursuant to Article 35
of Regulation (EC) No 2237/2003.

(a) a copy of the contract or commitment referred to in
Articles 52 and 106 of that Regulation, unless the Member

(1) OJ L 193, 20.7.2002, p. 74.

In the case of an application for aid for starch potato pro-
7.
vided for
in Chapter 6 of Title IV of Regulation (EC)
No 1782/2003, the single application shall contain a copy of the
cultivation contract; however, Member States may provide that
that copy may be submitted by a later date which shall not be
later than30 June.

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In the case of an application for seed aid provided for in
8.
Chapter 9 of Title IV of Regulation (EC) No 1782/2003, the single
application shall contain:

3. Member States may decide that all applications for aid under
Title IV of Regulation (EC) No 1782/2003 shall be covered by the
single application. In that case, Chapters II and III of this Title shall
apply mutatis mutandis in respect of the particular requirements
established in view of the application for aid under those schemes.

(a) a copy of the growing contract or growing declaration; how-
ever, Member States may provide that that copy may be sub-
mitted by a later date which shall not be later than
15 September;

4.
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.

(b) an indication of the species of seeds sown on each parcel;

Article 15

Amendments to the single applications

(c) an indication of the quantity of certified seed produced,
expressed in quintals to one decimal point; however, Mem-
ber States may provide that that information may be submit-
ted by a later date which shall not be later than 15 June of the
year following the harvest;

(d) a copy of the supporting documents showing that the quan-
tities of seed referred to have been officially certified; how-
ever, Member States may provide that that information may
be submitted by a later date which shall not be later than
31 May of the year following the harvest.

Article 14

General rules pertaining to the single application
and declarations in relation to particular uses of area

1.
Uses of area referred to in Articles 5(2) and 51 of Regula-
tion (EC) No 1782/2003 and those listed in Annex V to that
Regulation, as well as areas used for the production of flax grown
for fibre where those areas do not have to be declared in accor-
dance with Article 13 of this Regulation, shall be declared under
a separate heading in the single application form.

Uses of area neither for the purposes of the aid schemes provided
for in Titles III and IV of Regulation (EC) No 1782/2003 nor listed
in Annex V to that Regulation shall be declared under one or
more ‘other uses’ headings.

Member States may provide that the first and second subpara-
graphs shall not apply where the information concerned is made
available to the competent authorities in the framework of other
administration and control systems that guarantee compatibility
with the integrated system in accordance with Article 26 of Regu-
lation (EC) No 1782/2003.

2.
For the first year of application of the single payment
scheme the Member States may derogate from the provisions of
Articles 12 and 13 if the payment entitlements are not yet defini-
tively established at the latest date fixed for the submission of the
single application.

1.
After the expiry of the time limit for the submission of the
single application, individual agricultural parcels, as the case may
be, accompanied by the corresponding payment entitlements, not
yet declared in the single application for the purposes of any of
the area-related aid schemes, may be added in the single applica-
tion provided that the requirements under the aid schemes con-
cerned are respected.

Changes regarding the use or aid scheme in respect of individual
agricultural parcels already declared in the single application may
be made under the same conditions.

Where the amendments referred to in the first and second sub-
paragraphs have a bearing on any supporting documents or con-
tracts to be submitted, the related amendments to such docu-
ments or contracts shall also be allowed.

2. Without prejudice to the dates fixed by Finland or Sweden
for the submission of the single application in accordance with
the first subparagraph of Article 11(2), amendments in accor-
dance with paragraph 1 of this Article shall be notified to the
competent authority in writing by 31 May, in the case of Finland
and Sweden by 15 June, of the calendar year concerned at the
latest.

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

CHAPTER II

LIVESTOCK AID APPLICATIONS

Article 16

Requirements pertaining to livestock aid applications

A livestock aid application shall contain all information nec-

1.
essary to establish eligibility for the aid, and in particular:

(a)

the identity of the farmer;

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(b) a reference to the single application if it has already been

submitted;

Member State, qualify for aid on the basis of the data contained
in the computerised database for bovine animals. In that case,
Member States shall take the necessary measures to guarantee
that:

(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 locations
where the animals will be held including the period or peri-
ods concerned;

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

the animals concerned;

(f) where applicable, the individual milk reference quantity avail-
able to the farmer on 31 March or, if the Member State con-
cerned 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 application is submitted, it shall be
earliest
notified to the
opportunity;

competent authority at

the

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

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 writ-
ing in advance.

2. Member States shall guarantee every animal keeper 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 for bovine animals. When submitting his aid application,
the farmer shall declare that that data is correct and complete or
he shall rectify incorrect data or add missing data.

3. Member States may decide that some of the information
referred to in paragraph 1 need not be included in the aid appli-
cation, where it has already been communicated to the compe-
tent authority.

Member States may in particular introduce procedures by which
data contained in the computerised database for bovine animals
may be used for the purposes of the aid application, provided that
the computerised database for bovine animals offers the level of
assurance and implementation necessary for the proper manage-
ment of the aid schemes involved. Such procedures may consist
of a system according to which a farmer may apply for aid in
respect of all animals which, at a date to be determined by the

(a)

in accordance with the provisions applicable to the aid
scheme in question, the starting and end dates of the relevant
retention periods are clearly identified and known to the
farmer;

(b)

the farmer is aware that any animals found not to be cor-
rectly identified or registered in the system for the identifica-
tion and registration for bovine animals shall count as ani-
mals found with irregularities as referred to in Article 59.

As regards the suckler cow premium in accordance with
Article 125 of Regulation (EC) No 1782/2003, irregularities
found with regard to the system for the identification and
registration of bovine animals shall be allocated proportion-
ately between the number of animals needed to receive the
premium and the animals needed for the supply of milk or
milk products pursuant to Article 125(2)(b) of that Regula-
tion. However, such irregularities shall first be allocated to
the number of animals not needed within the individual lim-
its or ceilings referred to in Article 125(2)(b) and Article 126.

4. Member States may provide that some of the information
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

AID APPLICATION FOR THE DAIRY PREMIUM
AND THE ADDITIONAL PAYMENTS

Article 17

Requirements pertaining to aid applications for the dairy
premium and additional payments

Each milk producer applying for the dairy premium and addi-
tional payments provided for in Chapter 7 of Title IV of Regula-
tion (EC) No 1782/2003 shall submit an aid application contain-
ing all information necessary to establish eligibility for the aid,
and in particular:

(a)

the identity of the farmer;

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(b) a statement by the farmer that he is aware of the conditions

Article 20

pertaining to the aid in question.

The aid application shall be submitted by a date to be determined
by the Member States which shall not be later than 15 May and,
in the case of Finland and Sweden, 15 June.

CHAPTER IV

COMMON PROVISIONS

Article 18

Simplification of procedures

1. Without prejudice to any specific provisions of this Regu-
lation and of Regulation (EC) No 1782/2003, Member States may
permit or require that any kind of communications under this
Regulation both from the farmer to the authorities and vice versa
be made by electronic means. In that case, appropriate measures
shall be taken to ensure in particular that:

(a)

the farmer is unambiguously identified;

(b)

the farmer complies with all requirements under the aid
scheme concerned;

(c)

the transmitted data is reliable in view of the proper manage-
ment of the aid scheme concerned; where use is made of the
data contained in the computerised database for bovine ani-
mals, that database shall offer the level of assurance and
implementation necessary for the proper management of the
aid schemes involved;

(d) where accompanying documents cannot be transmitted elec-
tronically, such documents are received by the competent
authorities within the same time limits as in the case of trans-
mission by non-electronic means;

(e)

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

Derogation from the final date for the submission of aid
applications, supporting documents, contracts and
declarations

By way of derogation from Article 5(1) of Council Regulation
(EEC, Euratom) No 1182/71 (1), where the latest date for the sub-
mission of an aid application or any supporting documents, con-
tracts or declarations under this Title is a public holiday, a Satur-
day or a Sunday, it shall be deemed to fall on the first following
working day.

Article 21

Late submission

1.
Except in cases of force majeure and exceptional circum-
stances as referred to in Article 72, the submission of an aid appli-
cation pursuant to this Regulation after the relevant time limit
shall lead to a 1 % reduction per working day in the amounts to
which the farmer would have been entitled if the application had
been lodged within the time limit.

Without prejudice to any particular measures to be taken by the
Member States with regard to the need for the submission of any
supporting documents in due time to allow effective controls to
be scheduled and carried out, the first subparagraph shall also
apply with regard to documents, contracts or declarations to be
submitted to the competent authority in accordance with
Articles 12 and 13 where such documents, contracts or declara-
tions are constitutive for the eligibility for the aid in question. In
that case, the reduction shall be applied on the amount payable
for the aid concerned.

If the delay amounts to more than 25 calendar days the applica-
tion shall be considered inadmissible.

2.
The submission of an amendment to a single application
after the latest date as provided for in Article 15(2) shall lead to a
1 % reduction per working day in the amounts relating to the
actual use of the agricultural parcels concerned.

2. With regard to the submission of aid applications, Member
States may, under the conditions provided in paragraph 1(a) to (e),
provide for simplified procedures where data is already available
to the authorities,
in particular where the situation has not
changed since the latest submission of an aid application under
the aid scheme concerned.

Amendments to a single application shall only be admissible until
the latest date for a late submission of a single application as
specified in the third subparagraph of paragraph 1. However,
where that date is earlier than, or the same as, the latest date pro-
vided for in Article 15(2), amendments to a single application
shall be considered inadmissible after the date provided for in
Article 14(2).

Article 19

Adjustments of obvious errors

Without prejudice to Articles 11 to 18, an aid application may be
adjusted at any time after its submission, in cases of obvious errors
recognised by the competent authority.

3.
As regards forage areas, where the single application is sub-
mitted late, the resulting reduction shall be in addition to any
other reduction applicable to late submissions of applications for
aid referred to in Articles 131 et 132 of Regulation (EC)
No 1782/2003.

(1) OJ L 124, 8.6.1971, p. 1.

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Article 22

Withdrawal of aid applications

irregularities, in particular the automated detection using comput-
erised means, including cross-checks:

An aid application may be totally or partially withdrawn at

1.
any time in writing.

In the case where a Member State makes use of the possibilities
provided for in the second subparagraph of Article 16(3), that
Member State may provide that the notifications to the comput-
erised database for bovine animals of an animal that has left the
holding may substitute a withdrawal in writing.

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 inten-
tion to carry out an on-the-spot check and where that on-the-spot
check reveals irregularities, withdrawals shall not be authorised in
respect of the parts of the aid application affected by the
irregularities.

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.

TITLE III

CONTROLS

CHAPTER I

COMMON RULES

Article 23

General principles

1.
Administrative and on-the-spot checks provided for in this
Regulation shall be made in such a way as to ensure effective veri-
fication of compliance with the terms under which aids are
granted and of the requirements and standards relevant for
cross-compliance.

The applications for aid concerned shall be rejected if the
2.
farmer or his representative prevents an on-the-spot check from
being carried out.

CHAPTER II

CONTROLS WITH REGARD TO ELIGIBILITY CRITERIA

S e c t i o n I

A d m i n i s t r a t i v e c h e c k s

Article 24

Cross-checks

(a) on declared payment entitlements and on declared parcels,
respectively, 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 cumulating of aid granted under
area-related aid schemes listed in Annexes I and V to Regu-
lation (EC) No 1782/2003;

(b) on the payment entitlements to verify their existence and the

eligibility for aid;

(c) between the agricultural parcels as declared in the single
application and the reference parcels as contained in the
identification system for agricultural parcels to verify the eli-
gibility for aid of the areas as such;

(d) between the payment entitlements and the area determined
in order to verify that the entitlements are accompanied by
an equal number of eligible hectares as defined in
Article 44(2) and Article 54(2), respectively, of Regulation
(EC) No 1782/2003;

(e) by means of the computerised database for bovine animals,
to verify eligibility for the aid and to avoid undue multiple
granting of the same aid in respect of the same calendar year;

(f) where supporting documents, contracts or growing declara-
tions have to be submitted and where applicable, between the
agricultural parcels as declared in the single application and
in the supporting documents, contracts or growing declara-
tion to verify the eligibility for aid of the area;

(g) between the agricultural parcels as declared in the single
application and plots subjected to official examination that
have been found to comply with the requirements of the
Directives referred to in Article 1(1) of Council Regulation
(EEC) No 1674/72 of 2 August 1972 laying down general
rules for granting and financing aid for seed (1);

2.
Indications of irregularities resulting from cross-checks shall
be followed-up by any other appropriate administrative proce-
dure, and where necessary, by an on-the-spot check.

S e c t i o n I I

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

S u b - s e c t i o n I

Common provisions

Article 25

General principles

1.
On-the-spot checks shall be unannounced. However, pro-
vided that the purpose of the control is not jeopardised, advance

1.
lation (EC) No 1782/2003 shall permit

The administrative checks referred to in Article 23 of Regu-
the detection of

(1) OJ L 177, 4.8.1972, p. 1.

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notice may be given, strictly limited to the minimum time period
necessary. Such notice shall, except in duly justified cases, not
exceed 48 hours.

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

Article 26

Control rate

Where a Member State has already introduced a system of
prior approval for such cultivation and has already notified
the Commission of its detailed rules and conditions linked to
that system prior to the entry into force of this Regulation,
any amendments to those detailed rules or conditions shall
be notified to the Commission without undue delay.

(b) 5 % of all farmers applying for aid under the bovine aid
schemes. However, where the computerised database for
bovine animals does not offer the level of assurance and
implementation necessary for the proper management of the
aid schemes involved the percentage shall be increased to
10 %. Those on-the-spot checks shall also cover at least 5 %
of all animals per aid scheme for which aid is applied for;

1.
The total number of on-the-spot checks carried out each
year shall cover at least 5 % of all farmers submitting a single
application.

(c) 10 % of all farmers applying for aid under the ovine/caprine
aid scheme irrespective of whether the aid applications are
the single application or
being submitted as part of
independently;

Subject to the third subparagraph, in the following cases the
Member States shall draw additional control samples of at least:

(d) 2 % of all milk producers applying for the dairy premium

and/or additional payments.

(a) 5 % of all farmers applying for aid for starch potato provided
for in Chapter 6 of Title IV of Regulation (EC) No 1782/2003;

(b) 5 % per species of seed for which aid is claimed in accordance

with Article 99 of Regulation (EC) No 1782/2003;

(c) 50 % of all farmers applying for aid for nuts provided for in
Chapter 4 of Title IV of Regulation (EC) No 1782/2003 in the
case where a Member State makes use of the possibility not
to introduce, in accordance with Article 6(3) of this Regula-
tion, an additional layer of GIS information;

With regard to all other Member States, in respect of the year
2005, 5 % of all farmers applying for aid for nuts provided
for in Chapter 4 of Title IV of Regulation (EC) No 1782/2003
unless the additional layer of GIS information has already
been introduced.

Where the control sample drawn under the first subparagraph
already contains applicants for the aids referred to in points (a) to
(c) of the second subparagraph, those applicants may be counted
towards the control rates stipulated therein.

3.
Should on-the-spot checks reveal significant irregularities 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
appropriately increase the percentage of farmers to be checked
on-the-spot in the following year.

4. Where it is provided that particular elements of an on-the-
spot check may be carried out on the basis of a sample, that
sample shall guarantee a reliable and representative level of con-
trol. 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.

Article 27

Selection of the control sample

Farmers subjected to on-the-spot checks shall be selected by
1.
the competent authority on the basis of a risk analysis and an ele-
ment of representativeness of the aid applications submitted. The
effectiveness of risk analysis parameters used in previous years
shall be assessed on an annual basis.

To provide the element of representativeness, the Member States
shall select randomly between 20 % and 25 % of the minimum
number of farmers to be subjected to on-the-spot checks as pro-
vided for in Article 26(1) and (2).

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

2.
year shall, moreover, cover at least:

2.

The risk analysis shall take account of:

(a)

the amount of aid involved;

(a)

the minimum control rate of 30 % or 20 % of the areas
declared for the production of hemp as referred to in
Article 52 of Regulation (EC) No 1782/2003.

(b)

the number of agricultural parcels and the area or number of
animals for which aid is requested;

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(c)

changes from the previous year;

(d)

the findings of checks made in past years;

The farmer shall be given the opportunity to sign the report
2.
to attest his presence at the check and to add observations. Where
irregularities are found the farmer shall receive a copy of the con-
trol report.

(e)

(f)

non-compliance with
cases
No 1760/2000 and Regulation (EC) No 21/2004;

Regulation

of

(EC)

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 58 of this
Regulation;

(h) compliance with Article 49(2) of Regulation (EC)

No 1782/2003;

(i)

(j)

the quantity of potatoes intended for the manufacture of
potato starch with regard to the area declared in the cultiva-
tion contract referred to in Article 13(7);

in the case of an application for seed aid provided for in
chapter 9 of Title IV of Regulation (EC) No 1782/2003, the
quantity of certified seeds in relation to the area declared;

Where the on-the-spot check is carried out by means of remote
sensing in accordance with Article 32, the Member States may
decide not to give the farmer or his representative the opportu-
nity to sign the control report if no irregularities are revealed dur-
ing the check by remote-sensing. If irregularities are revealed as a
consequence of such checks the opportunity to sign the report
shall be given before the competent authority draws its conclu-
sions from the findings with regard to any resulting reductions or
exclusions.

S u b - s e c t i o n I I

on-the-spot checks of the Single applications with regard
to area-related aid schemes

Article 29

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

Elements of the on-the-spot checks

The competent authority shall keep records of the reasons
3.
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 28

Control report

1.
Every on-the-spot check under this Section shall be the sub-
ject of a control 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)

(d)

the agricultural parcels checked, the agricultural parcels mea-
sured, the results of the measurements per measured agricul-
tural parcel and the measuring methods used;

the number and type of animals found and, where applicable,
the ear tag numbers, entries in the register and in the com-
puterised database for bovine animals 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;

(f)

indications of any specific control measures to be carried out
in the context of individual aid schemes;

(g)

indication of any further control measures carried out.

On-the-spot checks shall cover all the agricultural parcels for
which aid is requested under aid schemes listed in Annex I to
Regulation (EC) No 1782/2003, except those related to applica-
tions for seed aid in accordance with Article 99 of that Regula-
tion. However, the actual inspection in the field as part of an
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 30

Determination of areas

1.
Agricultural parcel areas shall be determined by any appro-
priate 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. A measurement
tolerance may be defined by the competent authority that shall
not exceed either 5 % of the agricultural parcel area or a buffer of
1,5 m applied to the perimeter of the agricultural parcel. How-
ever, the maximum tolerance with regard to each agricultural par-
cel shall not, in absolute terms, exceed 1,0 ha.

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

In respect of the 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

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fully utilised area on condition that it does not exceed a total
width to be determined by the Member States. That width must
correspond to a traditional width in the region in question and
shall not exceed 2 metres.

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

3.
Further to paragraph 2, in the case of parcels being declared
for the purposes of the single payment scheme, any features
referred to in the acts listed in Annex III to Regulation (EC)
No 1782/2003 or which may form part of the good agricultural
and environmental condition as referred to in Article 5 and
Annex IV of that Regulation shall form part of the total area of an
agricultural parcel.

(iii) the seed has actually been marketed for sowing. Mar-
keted shall mean holding available or in stock, display-
ing for sale, offering for sale, sale or delivery to another
person. For that purpose, physical and documentary
checks of the stock and financial accounts of the breeder
or seed establishment shall be carried out;

(c) where appropriate, checks at the level of the end users.

Article 32

Remote sensing

1. Member States may make use of remote sensing with regard
to the sample referred to in Article 26(1) instead of applying the
traditional means of on-the-spot checking under the conditions
set out in this Article. Articles 23, 25, 26, 27 and 28, the first sen-
tence of Article 29 and Article 30 shall apply where appropriate.

4.
The eligibility of agricultural parcels shall be verified by any
appropriate means. To that end, additional proof shall be
requested where necessary.

The zones to be checked by means of remote sensing shall

2.
be selected on the basis of a risk analysis or at random.

Article 31

Elements of the on-the-spot checks related to applications
for seed aid

In the case of selection on the basis of a risk analysis the Member
States shall take account of appropriate risk factors, and in
particular:

(a)

their financial significance in terms of Community aid;

On-the-spot checks related to applications for seed aid in accor-
dance with Article 99 of Regulation (EC) No 1782/2003 shall
cover in particular:

(b)

the composition of aid applications;

(a)

checks at the level of the farmer applying for the aid:

(i) on all parcels to verify the species or variety group of

seeds sown on each parcel declared;

(c)

the structure of the agricultural parcel systems, and the com-
plexity of the agricultural landscape;

(d)

the lack of coverage in previous years;

(e)

the technical constraints of effective use of remote sensing,
with respect to zone definition;

(ii) on documents to verify at least the first destination of

seed for which aid has been claimed;

(f)

the findings of checks made in previous years.

(iii) any checks deemed necessary by the Member States to
ensure that aid is not paid with regard to uncertified seed
or seed from third countries.

(b)

if the first destination of the seed is a breeder or a seed estab-
lishment, additional checks at their premises to ensure that:

3.

On-the-spot checks by remote sensing shall cover either:

(a) all aid applications having at least 80 % of the area for which
aid is requested under schemes established in Titles III and IV
of Regulation (EC) No 1782/2003 within the respective zone,

or

(i)

the seed has actually been bought and paid by the
breeder or seed establishment in accordance with the
growing contract;

(b) aid applications to be selected by the competent authority on

the basis of Article 27(2) of this Regulation.

(ii)

the payment of the seed is reflected in the financial
accounts of the breeder or seed establishment;

Applications selected randomly in accordance with Article the
second subparagraph of Article 27(1) may be checked by remote
sensing.

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Once a farmer has been selected for an on-the-spot check in
4.
accordance with paragraph 3, at least 80 % of the area for which
he requests aid under aid schemes established in Titles III and IV
of Regulation (EC) No 1782/2003 shall be subject to on-the-spot
check by remote sensing.

Varieties of hemp grown for fibre eligible for direct pay-
4.
ments are listed in Annex II. Requests by a Member State to
include a variety of hemp in that Annex shall be accompanied by
a report giving the findings of analyses carried out in accordance
with procedure B provided for in Annex I and a description of the
variety in question.

5. Where a Member State applies the possibility to carry out
on-the-spot checks by remote sensing, it shall:

(a) perform photo interpretation of satellite images or aerial
photographs of all agricultural parcels per application to be
checked in accordance with paragraph 4 with a view to rec-
ognising the ground cover and measuring the area;

(b) carry out physical inspections in the field of all agricultural
parcels for which photo interpretation does not make it pos-
sible to verify the accuracy of the declaration to the satisfac-
tion of the competent authority.

6.
The additional checks referred to in Article 26(3) 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.

Article 33

Verification of the tetrahydrocannabinol content in hemp
growth

1.
The system to be used by the Member States in accordance
with Article 52(1) of Regulation (EC) No 1782/2003 in order to
determine the tetrahydrocannabinol (hereinafter referred to as
‘THC’) content of the crops grown shall be as set out in Annex I
to this Regulation.

2. Member States shall send the Commission, by 15 Novem-
ber of the marketing year in question at the latest, a report on the
THC content findings. The report shall indicate, for each variety:

(a)

for procedure A as provided for in Annex I, an indication of
the point at which the sample was taken;

(b)

the number of tests carried out;

(c)

the results in terms of THC content, shown separately for
each 0,1 %;

(d) measures taken at national level.

3. Where the checks show, for a significant number of samples
of a given variety, THC contents exceeding that laid down in
Article 52(1) of Regulation (EC) No 1782/2003, it may be decided,
without prejudice to any other measures the Commission might
take and in accordance with the procedure referred to in
Article 144(2) of that Regulation, to use procedure B as provided
for in Annex I to this Regulation for the variety concerned in the
course of the following calendar year.

S u b - s e c t i o n I I I

On-the-spot checks of livestock aid applications

Article 34

Timing of on-the-spot checks

For aid schemes other

than those provided for

in
1.
Articles 123(6) and 130 of Regulation (EC) No 1782/2003, at
least 60 % of the minimum rate of on-the-spot checks provided
for in the last sentence of Article 26(2)(b) of this Regulation shall
be conducted throughout the retention period of the aid scheme
concerned. The remaining percentage of on-the-spot checks shall
be conducted throughout the retention period of at least one of
those aid schemes.

However, where a Member State makes use of the possibilities
provided for in Article 68 of Regulation (EC) No 1782/2003, the
minimum rate of on-the-spot checks provided for in the last sen-
tence of Article 26(2)(b) shall be fully conducted throughout the
retention period of the aid scheme concerned.

2.
At least 50 % of the minimum rate of on-the-spot checks
provided for in Article 26(2)(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 Regulation (EC)
No 21/2004 as concerns ovines and caprines, in particular in rela-
tion to the identification of animals and the proper keeping of
registers, is not fully implemented and applied.

Article 35

Elements of the on-the-spot checks

On-the-spot checks shall cover all livestock for which aid
1.
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 num-
ber 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 computer-
ised database for bovine animals;

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(b)

in relation to the bovine aid schemes, checks

— of the correctness of entries in the register and the noti-
fications to the computerised database for bovine ani-
mals on the basis of a sample of supporting documents
such as purchase and sales invoices, slaughter certifi-
cates, veterinary certificates and, where applicable, ani-
mal passports, in relation to animals for which aid appli-
cations were submitted in the 12 months prior to the
on-the-spot check,

— that information held in the computerised database for
bovine animals corresponds to the information given in
the register on the basis of a sample in relation to ani-
mals 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,

— that all bovine animals present on the holding are iden-
tified by ear tags and accompanied, where applicable, by
animal passports and that they are recorded in the reg-
ister and have been duly notified to the computerised
database for bovine animals.

The checks referred to in the fourth indent of point (b) shall
be made individually 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
submitted in accordance with
exception of
Article 123(6) of Regulation (EC) No 1782/2003. 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;

those

(c)

in relation to the ovine/caprine aid scheme:

(i)

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,

slaughter premium provided for in Article 130 of that Regulation
and in cases where a Member State makes use of the possibilities
provided for in Article 68 of that Regulation, on-the-spot checks
shall be carried out in the slaughterhouses. In that case, Member
States shall carry out on-the-spot checks either:

(a)

(b)

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 dur-
ing the 12 months prior to the on-the-spot check, or

in at least 20 % of the slaughterhouses which have been
approved beforehand in accordance with particular criteria of
reliability to be determined by the Member States and which
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.

The on-the-spot checks in slaughterhouses shall comprise a pos-
teriori scrutiny of documents, a comparison with the entries in the
computerised database for bovine animals and checks of summa-
ries relating to the slaughter certificates or information in place
thereof, which were sent to other Member States in accordance
with Article Article 35(3) of Regulation (EC) No 2342/1999.

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

Article 37

Control measures as regards the premium granted
after export

1.
As regards the slaughter premium granted for bovine ani-
mals exported to third countries in accordance with Article 130
of Regulation (EC) No 1782/2003 and where a Member State
makes use of the possibilities provided for in Article 68 of Regu-
lation (EC) No 1782/2003, all loading operations shall be subject
to on-the-spot checks, which shall be carried out as follows:

(ii) a check of the correctness of entries in the register on the
basis of a sample of supporting documents such as pur-
chase and sales invoices and veterinary certificates.

(a) at the time of loading, it shall be verified that all bovine ani-
mals 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;

Article 36

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

Control measures as regards on-the-spot checks
in slaughterhouses

As regards the special beef premium provided for in
1.
Article 123(6) of Regulation (EC) No 1782/2003 and the

— 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,

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— 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.

2.
The animal passports shall be surrendered to the competent
authority in accordance with Article 6(5) of Regulation (EC)
No 1760/2000.

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 28 of this Regulation shall
be sent without delay to the authorities responsible for the imple-
mentation of Regulation (EC) No 1082/2003.

S u b - s e c t i o n I V

On-the-spot checks with regard to aid applications for the dairy
premium and additional payments

3.
The Paying Agency shall scrutinize the aid applications on
the basis of the payment files and other available information,
paying particular attention to the documents relating to the
export and the comments of the competent control authorities
and shall check whether the animal passports have been surren-
dered in accordance with paragraph 2.

Article 40

On-the-spot checks with regard to aid applications
for the dairy premium and additional payments

On-the-spot checks shall cover the eligibility conditions, in par-
ticular on the basis of the farmers accounting or other registers.

Article 38

Special provisions as regards additional payments

CHAPTER III

CONTROLS RELATING TO CROSS-COMPLIANCE

As regards the additional payments provided for in Article 133 of
Regulation (EC) No 1782/2003, the Member State shall, where
appropriate, apply the provisions of this Title. If this is not appro-
priate because of the structure of the additional payment scheme,
Member States shall provide controls ensuring a control level
equivalent to that laid down in this Regulation.

Article 39

Special provisions as regards the control report

1. Where Member States carry out on-the-spot checks pursu-
ant to this Regulation in conjunction with inspections pursuant
to Regulation (EC) No 1082/2003 the control report provided for
in Article 28 of this Regulation shall be supplemented by reports
in accordance with Article 2(5) of Regulation (EC) No 1082/2003.

2. With regard to the checks in slaughterhouses provided for
in Article 36(1), the control report provided for in Article 28 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 36(2), the report
shall include, inter alia, the identification numbers, the carcass
weights and the dates of slaughter in relation to all animals
slaughtered and checked on the day of the on-the-spot check.

S e c t i o n I

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

Article 41

General principles and definitions

For the purposes of this Chapter, the following general principles
and definitions shall apply:

(a) A ‘repeated’ non-compliance shall mean the non-compliance
with the same requirement, standard or obligation referred to
in Article 4 determined more than once within a consecutive
period of three years, provided the farmer has been informed
of a previous non-compliance and, as the case may be, has
had the possibility to take the necessary measures to termi-
nate that previous non-compliance;

(b) The ‘extent’ of a non-compliance shall be determined taking
account, in particular, of whether the non-compliance has a
far-reaching impact or whether it is limited to the farm itself;

(c) The ‘severity’ of a non-compliance shall depend, in particu-
lar, on the importance of the consequences of the non-
compliance taking account of the aims of the requirement or
standard concerned;

(d) Whether a non-compliance is of ‘permanence’ shall depend,
in particular, on the length of time for which the effect lasts
or the potential for terminating those effects by reasonable
means.

Article 42

Competent control authority

3. With regard to the checks provided for in Article 37, the
control report may consist only of an indication of the animals so
checked.

1.
The specialised control bodies shall bear the responsibility
to carry out the controls on the respect of the requirements and
standards in question.

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The Paying Agencies shall bear the responsibility for the fixing of
reductions or exclusions in individual cases in accordance with
Chapter II of Title IV of this Regulation.

By way of derogation from paragraph 1, Member States
2.
may decide that controls in relation to all or certain requirements,
standards, acts, or areas of cross-compliance shall be carried out
by the Paying Agency provided that the Member State guarantees
that the effectiveness of the controls is at least equal to the one
achieved in the case where the controls are carried out by a spe-
cialised control body.

S e c t i o n I I

A d m i n i s t r a t i v e c h e c k s

Article 43

Administrative checks

Depending on the requirements, standards acts or areas of cross-
compliance in question, Member States may decide to carry out
administrative checks, in particular those already provided for
under the control systems applicable to the respective require-
ment, standard, act or area of cross-compliance.

S e c t i o n I I I

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

Article 44

Minimum control rate

1.
The competent control authority shall, with regard to the
requirements or standards for which it is responsible, carry out
checks on at least 1 % of all farmers submitting aid applications
under support schemes established in Titles III and IV of Regula-
tion (EC) No 1782/2003 and for which the competent control
authority in question is responsible.

Where the legislation applicable to the act and standards already
fix minimum control rates, that rate shall insofar be applied
instead of the minimum rate mentioned in the first subparagraph.

2.
Should on-the-spot checks reveal a significant degree of
non-compliance with a given area of cross-compliance, the num-
ber of on-the-spot checks to be carried out in the following con-
trol period shall be increased.

Article 45

Selection of the control sample

1. Without prejudice to checks carried out as a follow-up of
non-compliances brought to the attention of the competent con-
trol authority in any other way, the selection of farms to be

checked in accordance with Article 44 shall be based, where
applicable, on a risk analysis according to the applicable legisla-
tion, or on a risk analysis appropriate to the requirements or stan-
dards. That risk analysis may be based on the level of an indi-
vidual farm or on the level of categories of farms or geographical
zones or, in the case of point (b) of the second subparagraph of
paragraph 3 of this Article, on the level of undertakings.

2.
The competent control authority shall, with regard to the
requirements or standards for which it is responsible, select the
farmers to be checked in accordance with Article 44 by selecting
the sample from the sample of farmers which were already
selected pursuant to Articles 26 and 27 and to whom the relevant
requirements or standards apply.

3.
By way of derogation from paragraph 2, the competent
control authority may, withregard to the requirements or stan-
dards for which it is responsible, select a control sample of 1 % of
all farmers submitting aid applications under support schemes
established in Titles III and IV of Regulation (EC) No 1782/2003
and who are under the obligation to respect at least one of the
requirements or standards.

In that case:

(a) where the competent control authority concludes, on the
basis of the risk analysis applied at farm level, that non-
beneficiaries of direct aid establish a higher risk than the
farmers who applied for aid, it may replace farmers who
applied for aid by non-beneficiaries. In that case, the overall
number of farmers checked shall, nevertheless, attain the
control rate provided for in the first subparagraph. The rea-
sons for such replacements shall be properly justified and
documented;

(b)

if more effective, the competent control authority may per-
form the risk analysis at the level of undertakings, in particu-
lar slaughterhouses, traders or suppliers rather than at farm
level. In that case, the farmers thus checked may be counted
towards the control rate provided for in Article 44.

4.
The competent control authority may decide to proceed by
a combination of the procedures set out in paragraphs 2 and 3 in
the case where such a combination increases the effectiveness of
the control system.

Article 46

Determination of the compliance with the requirements
and standards

1. Where applicable, the respect of the requirements and stan-
dards shall be determined by the use of means as stipulated in the
legislation applicable to the requirement or standard in question.

2.
In other cases and where appropriate, the determination
shall be carried out by the use of any appropriate means defined
by the competent control authority which ensure precision at
least equivalent to that required for official determinations under
the national rules.

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3. Where appropriate, the on-the-spot checks may be con-
ducted by the application of remote-sensing techniques.

No 1782/2003 with an indication of any factors that should
lead to an increase or decrease of the reduction to be applied.

Article 47

Elements of the on-the-spot checks

1.
In performing the checks on the sample provided for in
Article 44, the competent control authority shall ensure that all
farmers thus selected are checked with regard to their compliance
with the requirements and standards for which it is responsible.

2.
The checks referred to in paragraph 1 shall, as a general rule,
be carried out as part of one control visit and shall consist of a
verification of the requirements and standards the compliance
with which may be checked at the time of that visit, aiming to
detect any possible non-compliance with those requirements and
standards and, in addition, to identify cases to be submitted for
further checks.

Article 48

Control report

1.
Every on-the-spot check under this Chapter, regardless
whether the farmer in question was selected for the on-the-spot
check in accordance with Article 45 or as a follow-up of non-
compliances brought to the attention of the competent control
authority in any other way, shall be the subject of a control report
to be established by the competent control authority.

The report shall be divided into the following parts:

(a) a general part containing,

in particular,

the following

information:

(i)

the farmer selected for the on-the-spot check;

(ii)

the persons present;

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

if so, the period of advance notification.

(b) a part reflecting separately the checks carried out in respect
of each of the acts and standards and containing, in particu-
lar, the following information:

(i)

the requirements and standards subject to the on-the-
spot check;

(ii)

the nature and extent of checks carried out;

(iii) the findings;

Where provisions relating to the requirement or standard in
question leave a margin not to further pursue the non-
compliance found, the report shall make a corresponding
indication. The same shall apply in the case where a Member
State grants a period for the compliance with a new standard
as referred to in Article 5(3) of Council Regulation (EC)
No 1257/1999 of 17 May 1999 on support for rural devel-
opment from the European Agricultural Guidance and Guar-
antee Fund (EAGGF) (1) or a period for the compliance of
young farmers with the minimum standards referred to in
Article 4(2) of Commission Regulation (EC) No 445/2002 of
26 February 2002 laying down detailed rules for the appli-
cation of Council Regulation (EC) No 1257/1999 (2).

The farmer shall be informed of any non-compliances

2.
found.

3. Without prejudice to any particular provisions contained in
the legislation applicable to the requirements and standards, the
control report shall be finalised within one month of the on-the-
spot check. However, that period may be extended to three
months under duly justified circumstances, in particular if chemi-
cal or physical analysis so require.

Where the competent control authority is not the Paying Agency,
the report shall be sent to the Paying Agency within a month of
its finalisation.

TITLE IV

BASIS FOR THE CALCULATION OF THE AID, REDUCTIONS
AND EXCLUSIONS

CHAPTER I

FINDINGS IN RELATION TO ELIGIBILITY CRITERIA

S e c t i o n I

s i n g l e p a y m e n t s c h e m e a n d o t h e r
a r e a - r e l a t e d a i d s c h e m e s

Article 49

General principles

For the purposes of this Section, the following crop groups

1.
shall be distinguished as appropriate:

(iv) the acts and standards in relation to which non-

compliances are found;

(a) areas for the purposes of the single payment scheme, as the
case may be, each fulfilling the conditions particular to them;

(c) an evaluation part giving an assessment of the importance of
the non-compliance in respect of each act and/or standard on
the basis of the criteria ‘severity’, ‘extent’, ‘permanence’ and
‘repetition’ in accordance with Article 7(1) of Regulation (EC)

(1) OJ L 160, 26;-.6.1999, p. 80. Regulation as last amended by Regu-

lation (EC) No 1783/2003 (OJ L 270, 21.10.2003, p. 70).

(2) OJ L 74, 15.3.2002, p. 1. Regulation as last amended by Regulation

(EC) No 963/20003 (OJ L 138, 5.6.2003, p. 32).

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(b) areas for which a different rate of aid is applicable;

(c)

set-aside areas declared under aid schemes established in Title
IV of Regulation (EC) No 1782/2003 and, where applicable,
set-aside areas for which a different rate of aid is applicable;

(d)

forage areas declared for the purposes of Article 131 of Regu-
lation (EC) No 1782/2003;

(e)

forage areas other than pasture land and other than areas
used for the production of arable crops, within the meaning
of Article 132(3) (b) of Regulation (EC) No 1782/2003
declared for the purposes of that Article;

(f) pasture land within the meaning of Article 132(3) (c) of
Regulation (EC) No 1782/2003 declared for the purposes of
that Article;

By way of derogation from point (b), for the purposes of point (a),
the average of the values of different payment entitlements in rela-
tion to the respective area declared shall be taken into account.

2. Without prejudice to any reductions or exclusions to be
applied following the actual determination of area in accordance
with Articles 51 and 53, with regard to an application for aid
under the single payment scheme,
if there is a discrepancy
between the payment entitlements declared and the area declared,
the calculation of the payment shall be based on the lower size.

3. Without prejudice to reductions and exclusions in accor-
dance with Articles 51 and 53, in the case of applications for aid
under area-related aid schemes, except for starch potato and seed
as provided for in Chapters 6 and 9 respectively of Title IV of
Regulation (EC) No 1782/2003, if the area declared in a single
application exceeds the area determined for that crop group, the
aid shall be calculated on the basis of the area determined for that
crop group.

4. Without prejudice to reductions and exclusions in accor-
dance with Articles 51 and 53, with regard to applications for aid
under the single payment scheme the following shall apply in
respect of set-aside entitlements for the purpose of the definition
of ‘area determined’ in Article 2 point (22):

2. Where the area determined for the purposes of the single
payment scheme is lower than the area declared, the following
shall apply to determine which of the payment entitlements have
to be returned to the national reserve in accordance with
Article 45(1) and the second subparagraph of Article 42(8) of
Regulation (EC) No 1782/2003:

(a)

if a farmer does not declare all his area for the purposes of
activating the set-aside entitlements at his disposal but
declares, at the same time, a corresponding area for the acti-
vation of other entitlements, that area shall be considered as
having been declared as set-aside areas and not determined
the crop group referred to in
for
Article 49(1)(a);

the purposes of

(a)

the area determined shall be taken into account starting with
the payment entitlements having the highest value;

(b)

the payment entitlements with the highest value shall be
attributed to that area first, followed by those with the next
lower value.

For the purposes of this paragraph, set-aside entitlements and
other payment entitlements shall be treated separately.

3. Where the same area serves as the basis for an aid applica-
tion under more than one area-related aid scheme, that area shall
be taken into account separately for each of those aid schemes.

(b)

if area declared as set-aside areas is found not to be set-aside,
that area shall be considered as not being determined.

5. With regard to areas declared for the special quality pre-
mium for durum wheat in accordance with Article 72 of Regula-
tion (EC) No 1782/2003 and for the durum wheat supplement
and special aid in accordance with Article 105 of that Regulation
and in case a difference is established between the minimum
quantity of certified seeds fixed by the Member State and the
quantity effectively used, the area shall be determined by dividing
the total quantity of certified seeds for which proof of use was
given by the farmer, by the minimum quantity of certified seeds
per hectare fixed by the Member State in the production zone
concerned.

Article 50

Basis of calculation in respect of areas declared

1.
In the case of applications for aid under area-related aid
schemes, except for starch potato and seed as provided for in
Chapters 6 and 9 respectively of Title IV of Regulation (EC)
No 1782/2003, if the area of a crop group determined is found
to be greater than that declared in the aid application, the area
declared shall be used for calculation of the aid.

6.
The calculation of the maximum eligible area for the pay-
ments to farmers applying for the arable crop area payment in
accordance with Chapter 10 of Title IV of Regulation (EC)
No 1782/2003 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 determined, be reduced to the level cor-
responding to the area which would be needed to produce 92
tonnes of cereal, in accordance with Article 107(7) of Regulation
(EC) No 1782/2003.

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If a farmer has been unable to comply with his obligations
7.
as a result of force majeure or exceptional circumstances as referred
to in Article 72, 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.

Article 52

Reductions with regard to applications for aid for starch
potato and seed

Article 51

Reductions and exclusions in cases of overdeclaration

If, in respect of a crop group, the area declared for the pur-
1.
poses of any area-related aid schemes, except those for starch
potato and seed in accordance with Articles 93 and 99 respec-
tively of Regulation (EC) No 1782/2003, exceeds the area deter-
mined in accordance with Article 50(3) to (5) of this Regulation,
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 the
single application, except for starch potato and seed in accordance
with Articles 93 and 99 respectively of Regulation (EC)
No 1782/2003, the area declared exceeds the area determined in
accordance with Article 50(3) to (5) of this Regulation by more
than 30 %, the aid to which the farmer would have been entitled
pursuant to Article 50(3) to (5) of this Regulation shall be refused
for the calendar year in question under those aid schemes.

If the difference is more than 50 %, the farmer shall be excluded
once again from receiving aid up to an amount equal to the
amount which corresponds to the difference between the area
declared and the area determined in accordance with Article 50(3)
to (5). That amount shall be off-set against aid payments under
any of the aid schemes referred to in Titles III and IV of Regula-
tion (EC) No 1782/2003 to which the farmer is entitled in the
context of applications he lodges in the course of the three cal-
endar years following the calendar year of the finding. If the
amount cannot be fully off-set against those aid payments, the
outstanding balance shall be cancelled.

For the purposes of this Article, where a farmer applying for
3.
aid for energy crops in accordance with Article 88 of Regulation
(EC) No 1782/2003 or declaring parcels as set-aside in accor-
dance with Article 55 point (b) or Article 107(3) first indent of
that Regulation fails to deliver the requisite quantity of any given
raw material, he shall be deemed to have failed to fulfil his obli-
gation as regards parcels intended for energy purposes or set-
aside, respectively, in respect of an area calculated by multiplying
the area of land cultivated and used by him for the production of
the raw materials by the percentage shortfall in deliveries of that
raw material.

1.
If it is found that the area actually cultivated is more than
10 % lower than the area declared for the payment of aid for
starch potato as provided for in Chapter 6 of Regulation (EC)
No 1782/2003, the aid to be paid shall be reduced by twice the
difference found.

2.
If it is found that the area actually cultivated is more than
10 % higher than the area declared for the payment of seed aid as
provided for in Chapter 9 of Regulation (EC) No 1782/2003, the
aid to be paid shall be reduced by twice the difference found.

3. Where it is found that the irregularities referred to in para-
graphs 1 and 2 result from intention of the farmer, the total
amount of aid referred to in paragraphs 1 and 2 shall be refused.

In that case, the farmer shall be excluded once again from receiv-
ing aid equal to that amount. That amount shall be off-set against
aid payments under any of the aid schemes referred to in Titles III
and IV of Regulation (EC) No 1782/2003 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 find-
ing. If the amount cannot be fully off-set against those aid pay-
ments, the outstanding balance shall be cancelled.

Article 53

Intentional overdeclaration

Where differences between the area declared and the area deter-
mined in accordance with Article 50(3), (4)(b) and (5) result from
irregularities committed intentionally, the aid to which the farmer
would have been entitled pursuant to Article 50(3), (4)(b) and (5)
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 receiv-
ing aid up to an amount equal to the amount which corresponds
to the difference between the area declared and the area deter-
mined in accordance with Article 50(3), (4)(b) and (5). That
amount shall be off-set against aid payments under any of the aid
schemes referred to in Titles III and IV of Regulation (EC)
No 1782/2003 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. If the amount cannot
be fully off-set against those aid payments, the outstanding bal-
ance shall be cancelled.

Article 54

Reductions and exclusions concerning seed aid
applications

1. Where it is found that seed subject to an aid application was
not actually marketed within the meaning of Article 31

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point (b)(iii) for sowing by the farmer, the aid to be paid for the
species concerned, after application of any reductions to be
applied in accordance with Article 52, shall be reduced by 50 % if
the quantity not marketed amounts to more than 2 % but no
more than 5 % of the quantity covered by the aid application. If
the quantity not marketed exceeds 5 %, no seed aid shall be
granted for the marketing year concerned.

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 131 of Regulation (EC) No 1782/2003 sub-
mitted 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.

2. Where it is found that aid has been claimed for seed not offi-
cially certified or harvested within the Member State in question
during the calendar year in which the marketing year for which
the aid has been set begins, no aid shall be granted for that mar-
keting year nor for the following one.

3. Where the difference between the area declared and the area
determined results from irregularities committed intentionally
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 that case, the second sub-
paragraph of Article 53 shall apply accordingly.

Article 55

Calculation of forage area for premiums referred
to in Article 131 of Regulation (EC) No 1782/2003

Articles 50(1), 50(3), 51(1) and 53 shall apply to the calcu-
1.
lation of the forage area for the granting of the aids referred to in
Article 131 of Regulation (EC) No 1782/2003.

2. Where a difference of more than 50 % is found between the
area declared and the area determined in accordance with
Article 50(3), 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 difference between the area declared
and the area determined. If the area to be excluded cannot be fully
off-set within that period, the outstanding balance shall be
cancelled.

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 56

Calculation of forage area for the extensification payment
in accordance with Article 132 of Regulation (EC)
No 1782/2003

1.
Extensification payments provided for in Article 132 of
Regulation (EC) No 1782/2003 may not be granted for a greater
number of animals than that for which the premiums referred to
in Article 131 of that Regulation may be paid after application of
Article 55 of this Regulation.

2. Without prejudice to paragraph 1, the forage area con-
cerned shall be determined in accordance with Article 50.

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

S e c t i o n I I

L i v e s t o c k p r e m i a

Article 57

Basis of calculation

1. Where an individual limit or individual ceiling is applicable,
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 Article 59 and 60, 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 reten-
tion obligation as a result of force majeure or exceptional circum-
stances as referred to in Article 72, 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 irregularities with regard to 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 ear tags shall
be regarded as determined provided that it is clearly and indi-
vidually 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 deter-
mined after the first finding.

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Article 19 shall apply in relation to entries in, and notifications to,
the system for the identification and registration of bovine
animals.

Article 58

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 125 or Article 129 of Regu-
lation (EC) No 1782/2003 and dairy cows in respect of which aid
is claimed in accordance with Article 132(4) of that Regulation
may be replaced during the retention period within the limits pro-
vided for in those Articles without the loss of the right to the pay-
ment of the aid applied for.

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 seven days
after the replacement.

However, in the case a Member State makes use of the possibili-
ties provided for in the second subparagraph of Article 16(3), that
Member State may provide that the notifications to the comput-
erised database for bovine animals of an animal having left the
holding and another animal having arrived on the holding within
the time limits provided for in the first subparagraph may substi-
tute that information to be sent to the competent authority.

3. Where a farmer applies for aid in respect of both ewes and
goats and where there is no difference in the level of aid paid, a
ewe may be replaced by a goat and a goat by a ewe. Ewes and
goats in respect of which aid is claimed in accordance with
Article 113 of Regulation (EC) No 1782/2003 may be replaced
during the retention period within the limits provided for in that
Article without the loss of the right to the payment of the aid
applied for.

4.
Replacements pursuant to paragraph 3 shall occur within
10 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 appli-
cation was submitted shall be informed within five working days
after the replacement.

Article 59

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 57(3),

the total amount of aid to which the farmer is entitled under those
schemes for the premium period concerned shall be reduced by
the percentage to be established in accordance with paragraph 3
of this Article, if no more than three animals are found with
irregularities.

2.
If more than three animals are found with irregularities the
total amount of aid to which the farmer is entitled under the
schemes referred to in paragraph 1 for the premium period con-
cerned shall be reduced by:

(a)

the percentage to be established in accordance with para-
graph 3, if it is not more than 10 %,

(b)

twice the percentage to be established in accordance with
paragraph 3, if it 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 57(3) shall be refused under those
schemes for the premium period concerned.

If the percentage established in accordance with paragraph 3 of
this Article is more than 50 %, the farmer shall, moreover, be
excluded once again from receiving aid up to an amount corre-
sponding to the difference between the number of animals
declared and the number of animals determined in accordance
with Article 57(3). That amount shall be off-set against aid pay-
ments 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 find-
ing. If the amount cannot be fully off-set against those aid pay-
ments, the outstanding balance shall be cancelled.

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 determined for
the premium period concerned.

4. Where differences between the number of animals declared
and that determined in accordance with Article 57(3) result from
irregularities committed intentionally the aid to which the farmer
would have been entitled pursuant to Article 57(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
of this Article is more than 20 %, the farmer shall be excluded
once again from receiving aid up to an amount corresponding to
the difference between the number of animals declared and the
number of animals determined in accordance with Article 57(3).
That 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. If the amount cannot
be fully off-set against those aid payments, the outstanding bal-
ance shall be cancelled.

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Article 60

Reductions and exclusions in respect of ovine or caprine
animals claimed for aid

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.

in respect of applications for aid under the
1. Where,
ovine/caprine aid scheme, a difference is found in accordance
with Article 57(3), Article 59(2), (3) and (4) shall apply mutatis
mutandis as from the first animal in respect of which irregularities
are found.

2.
If it is established that a sheep producer marketing sheepʼs
milk and sheepʼs milk products failed to declare on his premium
application that he was doing so, the amount of the aid to which
he is entitled shall be reduced to the premium payable to sheep
producers marketing sheepʼs milk and sheepʼs milk products less
the difference between that amount and the full amount of the
ewe premium.

3. Where, in respect of applications for the supplementary pre-
mium, it is determined that less than 50 % of the area of the hold-
ing used for agriculture is located in areas referred to in
Article 114(1) of Regulation (EC) No 1782/2003, the supplemen-
tary premium shall not be paid and the ewe and goat premium
shall be reduced by an amount equivalent to 50 % of the supple-
mentary premium.

4. Where it is determined that the percentage of the area of the
holding used for agriculture located in areas listed in Annex I to
Regulation (EC) No 2550/2001 is below 50 %, the goat premium
shall not be paid.

5. Where it is established that a producer practising transhu-
mance who submits an application for the supplementary pre-
mium has not grazed 90 % of his animals for at least 90 days in
an area referred to in Article 114(2)(b) of Regulation (EC)
No 1782/2003, the supplementary premium shall not be paid
and the ewe or goat premium shall be reduced by an amount
equivalent to 50 % of the supplementary premium.

6. Where it is found that the irregularity referred to in para-
graphs 2, 3, 4 or 5 results from intentional non-compliance, the
total amount of aid referred to in those paragraphs shall be
refused.

In that case, the farmer shall be excluded once again from receiv-
ing aid equal to that amount. That amount shall be off-set against
aid payments under the ovine/caprine aid scheme 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.

7.
In respect of farmers maintaining both ewes and goats
entitled to the same level of premium, where an on-the-spot check
reveals a difference in the composition of the flock in terms of
numbers of animals per species, the animals shall be regarded as
being of the same group.

Article 61

Natural circumstances

The reductions and exclusions provided for in Articles 59 and 60
shall not apply in cases where, owing to the impact of natural cir-
cumstances on the herd or flock, the farmer cannot meet his

Without prejudice to the actual circumstances to be taken into
account in individual cases, the competent authorities may rec-
ognise, in particular, the following cases of natural circumstances
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 62

False certificates and declarations issued
by slaughterhouses

As regards the declarations or certificates issued by slaughter-
houses in connection with the slaughter premium provided for in
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 con-
cerned shall apply appropriate national sanctions. 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.

Article 63

Findings in relation to additional payments

As regards the additional payments provided for in Article 133 of
Regulation (EC) No 1782/2003, Member States shall provide for
reductions and exclusions which shall, in substance, be equiva-
lent to those provided for in this Title.

S e c t i o n I

D a i r y p r e m i u m a n d a d d i t i o n a l p a y m e n t s

Article 64

Dairy premium and additional payments

With regard to findings established in relation to aid applications
for the dairy premium and additional payments, Articles 50, 51(1)
and 53 shall apply to the extent that ‘area’ is read as ‘individual
reference quantity’ and ‘area determined’ as ‘individual reference
quantity determined’.

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in the case referred to in Article 30 of Regulation
Where,
2237/2003, the person concerned does not take up production
by the deadline for the application, the individual reference quan-
tity determined shall be deemed to be zero. In that case, the aid
application of the person concerned for the year in question shall
be refused. An amount equal to the amount covered by the
refused application shall be off-set against aid payments under
any of the aid schemes established in Titles III and IV of Regula-
tion (EC) No 1782/2003 to which the person is entitled in the
context of applications he lodges in the course of the calendar
year following the calendar year of the finding.

CHAPTER II

FINDINGS IN RELATION TO CROSS-COMPLIANCE

Article 65

General principles and definition

For the purposes of this Chapter, the provisions of Article 41

1.
shall apply.

For the purposes of applying Article 6(1) of Regulation (EC)
2.
No 1782/2003, an action or omission shall be directly attribut-
able to the individual farmer who committed the non-compliance
himself and who, at the time of the determination of the non-
compliance in question, is in charge of the holding, the area, the
production unit or the animal concerned. Where the holding, the
area, the production unit or the animal concerned was transferred
to a farmer after the non-compliance had started to occur, the
transferee shall equally be held liable in case he maintained the
non-compliance, provided he could have reasonably detected and
terminated that non-compliance.

3. Where more than one Paying Agency is responsible in the
context of the management of the different direct payment
schemes as defined in Article 2(d) of Regulation (EC)
No 1782/2003, the Member States shall take the appropriate
measures to ensure an appropriate application of the provisions
under this Chapter, in particular that one rate of reduction is
applied to the entirety of direct payments applied for by the
farmer.

Non-compliances shall be deemed to be ‘determined’ if they
4.
are established as a consequence of any kind of checks carried out
in accordance with this Regulation or after having been brought
to the attention of the competent control authority in whatever
other way.

Article 66

Application of reductions in the case of negligence

1. Without prejudice to Article 71, where a non-compliance
determined results from the negligence of the farmer, a reduction
shall be applied on the overall amount of direct payments, as

defined in Article 2(d) of Regulation (EC) No 1782/2003, that has
been, or has to be, granted to the farmer concerned following aid
applications he has submitted or will still submit in the course of
the calendar year of the finding. That reduction shall, as a general
rule, be 3 % of that overall amount.

However, the Paying Agency may, on the basis of the assessment
provided by the competent control authority in the control report
in accordance with Article 48(1)(c), decide either to reduce that
percentage to 1 % or to increase it to 5 % of that overall amount
or,
in the cases referred to in the second subparagraph of
Article 48(1)(c), not to impose any reductions at all.

2. Where more than one case of non-compliance with regard
to various acts or standards of the same area of cross-compliance
have been determined, those cases shall, for the purposes of the
fixing of the reduction in accordance with paragraph 1, be con-
sidered as one non-compliance.

3. Where more than one non-compliance with regard to dif-
ferent areas of cross-compliance have been determined, the pro-
cedure for the fixing of the reduction as set out in paragraph 1
shall be applied individually to any non-compliance. The result-
ing percentages of reductions shall be added. The maximum
reduction shall, however, not exceed 5 % of the overall amount
referred to in paragraph 1.

4. Without prejudice to cases of intentional non-compliance in
accordance with Article 67, where repeated non-compliances
have been determined, the percentage fixed in accordance with
paragraph 1 with regard to the first non-compliance shall, in
respect of the first repetition, be multiplied by the factor three. For
this purpose, the Paying Agency shall, in the case where that per-
centage was fixed in accordance with paragraph 2 determine the
percentage that would have been applied to the first non-
compliance with the requirement or standard concerned.

In the case of further repetitions the multiplication factor three
shall be applied each time to the result of the reduction fixed in
respect of the previous repeated non-compliance. The maximum
reduction shall, however, not exceed 15 % of the overall amount
referred to in paragraph 1.

Once the maximum percentage of 15 % has been reached, the
competent authority shall inform the farmer concerned that if the
same non-compliance is determined again, it shall be considered
that he has acted intentionally within the meaning of Article 67.
Where a further non-compliance is being determined thereafter,
the percentage of reduction to be applied shall be fixed by multi-
plying the result of the previous multiplication, where applicable,
before the limitation to 15 % as provided for in the last sentence
of the second subparagraph has been applied, by the factor three.

Article 67

Application of reductions and exclusions in cases
of intentional non-compliance

1. Without prejudice to Article 71, where the non-compliance
determined has been committed intentionally by the farmer, the
reduction to be applied to the overall amount referred to in the
first subparagraph of Article 66(1) shall, as a general rule, be 20 %
of that overall amount.

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However, the Paying Agency may, on the basis of the assessment
provided by the competent control authority in the control report
in accordance with Article 48(1)(c), decide to reduce that percent-
age to no less than 15 % or, where appropriate, to increase that
percentage to up to 100 % of that overall amount.

2. Where the intentional non-compliance relates to a particu-
lar aid scheme, the farmer shall be excluded from that aid scheme
for the calendar year in question.

In cases of extreme extent, severity or permanence or where
repeated intentional non-compliances have been determined, the
farmer shall, moreover, be excluded from the aid scheme con-
cerned in the following calendar year.

TITLE V

GENERAL PROVISIONS

Article 70

Minimum payments

Member States may decide not to grant any aid if the amount per
aid application does not exceed EUR 100.

Article 71

Accumulation of reductions

CHAPTER III

COMMON PROVISIONS

1. Where a case of non-compliance also constitutes an irregu-
larity, therefore being relevant in view of the application of reduc-
tions or exclusions in accordance with both Chapter I and with
Chapter II of Title IV:

Article 68

Exceptions from the application of reductions
and exclusions

1.
The reductions and exclusions provided for in Chapter I
shall not apply where the farmer submitted factually correct infor-
mation or where he can show otherwise that he is not at fault.

2.
The reductions and exclusions provided for in Chapter I
shall not apply with regard to the 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 authorityʼs 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.

(a)

the reductions or exclusions pursuant to Chapter I of Title IV
shall be applied with regard to the aid schemes in question;

(b)

the reductions and exclusions pursuant to Chapter II of
Title IV shall be applied with regard to the total amount of
payments to be granted under the single payment scheme
and any aid schemes that are not subject to reductions or
exclusions referred to in point (a).

2. Where applicable after application of paragraph 1, where
various reductions have to be applied as a consequence of modu-
lation, non-compliances and irregularities, the competent author-
ity shall calculate the reductions as follows:

(a)

firstly, the reductions in accordance with Articles 10 of Regu-
lation (EC) No 1782/2003 shall be applied;

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

(b)

secondly, the resulting amount of aid to which the farmer
would be entitled shall be reduced by the reductions provided
for in Chapter I of Title IV of this Regulation;

Article 69

Amendments and adjustments of entries
in the computerised database for bovine animals

(c)

thirdly, the resulting amount shall serve as the basis for the
calculation of any reductions to be applied because of late
submissions on the basis of Article 21 of this Regulation;

In respect of claimed bovine animals, Article 68 shall apply from
the time the aid application is submitted to errors and omissions
in relation to entries in the computerised database for bovine
animals.

As regards unclaimed bovine animals, the same shall apply in
respect of reductions and exclusions to be applied in accordance
with chapter II of this Title.

(d)

fourthly, the resulting amount shall be reduced by any reduc-
tions provided for in Chapter II of Title IV of this Regulation.

Subject

to Article 6 of Council Regulation (EC)
3.
No 2988/95 (1), the reductions and exclusions under this Regu-
lation shall be without prejudice to additional sanctions pursuant
to other provisions under Community or national law.

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

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Article 72

Force majeure and exceptional circumstances

Cases of force majeure and of exceptional circumstances within the
meaning of Article 40(4) of Regulation (EC) No 1782/2003 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.

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

Where amounts relating to interest have to be recovered indepen-
dently from amounts unduly paid, the Member States may, under
the same conditions, decide not to recover amounts relating to
interest of EUR 50 or less.

Article 73

Recovery of undue payments

Article 74

Transfer of holdings

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

2. Member States may decide that recovery of an undue pay-
ment is to be made by deduction of the corresponding amount
from any advances or payments under aid schemes referred to in
Titles III and IV of Regulation (EC) No 1782/2003 made to the
farmer concerned following the date of the decision to recover.
However, the farmer may repay the amount without waiting for
the deduction.

3.
Interest shall be calculated for the period elapsing between
the notification of the repayment obligation to the farmer and
either repayment or deduction.

1.

For the purposes of this Article:

(a)

‘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
transferred.

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 ful-
filled, no aid shall be granted to the transferor in respect of the
transferred holding.

The rate of interest applicable shall be calculated in accordance
with national law but shall not be lower than the interest rate
applicable for the recovery of amounts under national provisions.

The aid applied for by the transferor shall be granted to the

3.
transferee where:

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

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

5.
The repayment obligation referred to in paragraph 1 shall
not apply if the period which elapsed between the date of the pay-
ment 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.

Amounts to be recovered as a consequence of the applica-
6.
tion of reductions and exclusions pursuant to Article 21 and Title
IV shall, in all cases, be subject to a prescription period of four
years.

7.

Paragraphs 4 and 5 shall not apply in the case of advances.

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

(b)

the transferee presents any evidence required by the compe-
tent 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 and
requests payment of the aid in accordance with paragraph 3(a):

(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 dec-
larations made by the transferor prior to the transfer shall be
attributed to the transferee for the purposes of applying the
relevant Community rules;

(c)

the holding transferred shall be considered, where appropri-
ate, as a separate holding in respect of the marketing year or
premium period in question.

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5. Where an aid application is lodged after the actions neces-
sary for the granting of the aid have been performed and a hold-
ing 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 paragraph 3(a) and (b) are
fulfilled. In that case, paragraph 4(b) shall apply.

6. Member States may decide, where appropriate, to grant the
aid to the transferor. In that event:

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

(b)

the Member States shall apply mutatis mutandis the require-
ments set out in paragraphs 2 to 5.

7. Where a holding is transferred in its entirety from one
farmer to another farmer during the period referred to in
Article 44(3) of Regulation (EC) No 1782/2003, the transferee
may use the parcels concerned for the purposes of submitting an
application for payment under the single payment scheme.

Article 75

Additional measures and mutual assistance
between Member States

1. Member States shall take all [further] measures required for
the proper application of the integrated system and shall give one
another the mutual assistance needed for the purposes of checks
required pursuant to this Regulation. In that respect, Member
States may, where this Regulation does not provide for appropri-
ate reductions and exclusions, provide appropriate national sanc-
tions against producers or other marketing participants, such as
slaughterhouses or associations involved in the procedure for
granting aid, in order to ensure the compliance with control
requirements such as the current herd register of the holding or
the respect of notification obligations.

2. Member States shall assist one another to ensure effective
controls, and to ensure the check on the authenticity of docu-
ments submitted and/or the accuracy of the data exchanged.

Article 76

Notifications

1. Member States shall send the Commission by 31 March
each year at the latest, for the single payment and other area-
related aid schemes, 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 points:

(a)

(b)

(c)

(d)

the state of implementation of the integrated system, includ-
ing in particular the options chosen for the control of the
cross-compliance requirements and the competent control
bodies responsible for the controls of the cross-compliance
requirements and conditions;

the number of applications as well as the total area and total
number of animals broken down by individual aid scheme;

the number of applications as well as the total area and total
number of animals covered by checks;

the result of the checks carried out, indicating the reductions
and exclusions applied pursuant to Title IV;

At the same time as the communication referred to in the first
subparagraph in respect of animal premiums are sent to the Com-
mission, Member States shall notify the total number of benefi-
ciaries who received aids under aid schemes falling within the
scope of the integrated system.

2. Member States shall, moreover, send to the Commission by
31 October each year at the latest a communication about the
proportion of the land under permanent pasture in relation to the
total agricultural land as referred to in Article 3(1). By 31 Octo-
ber 2005 at the latest, Member States shall, moreover, send to the
Commission a communication about that proportion in the ref-
erence year 2003 referred to in Article 3(2).

3.
In exceptional duly justified situations, Member States may,
in agreement with the Commission, derogate from the dates pro-
vided for in the paragraphs 1 and 2.

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

PART III

MODULATION

Article 77

Basis for the calculation of the reduction

No 1782/2003 but not falling under Titles III or IV of that Regu-
lation, under the specific legislation applicable thereto.

The amount of reduction in accordance with Article 10 of Regu-
lation (EC) No 1782/2003 shall be calculated on the basis of the
amounts of direct payments to which farmers are entitled before
any reductions or exclusions are applied under this Regulation or,
in the case of aid schemes listed in Annex I to Regulation (EC)

Article 78

Allocation key

The allocation key for the remaining amounts referred to in the
subparagraph of Article 10(3) of Regulation (EC)
first
No 1782/2003 shall be compiled by taking the Member States

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shares in agricultural area and agricultural employment with a
weight of 65 % and 35 %, respectively.

Each Member State»s share in area and employment shall be
adjusted in function of its relative Gross Domestic Product (GDP)
per capita expressed in purchasing power standard, using one
third of the difference of the average of the Member States to
which modulation applies.

For that purpose, the following underlying data, based on the data
available from Eurostat in August 2003, shall be used:

in respect of agricultural area, the Farm Structural Survey
2000 in accordance with Council Regulation (EC)
No 571/88 (1);

in respect of agricultural employment, the annual series of
the Labour Force Survey 2001 on employment in agriculture,
hunting and fishing in accordance with Council Regulation
(EC) No 577/98 (2);

(a)

(b)

(c)

Article 79

Additional amount of aid

For the purposes of determining whether the threshold of
1.
EUR 5 000 referred to in Article 12 of Regulation (EC)
No 1782/2003 has been reached, the total amount of direct pay-
ments that would have to be granted before the application of any
reductions under this Regulation or, in the case of aid schemes
listed in Annex I to Regulation (EC) No 1782/2003 but not fall-
ing under Titles III or IV of that Regulation, under the specific leg-
islation applicable thereto, shall be taken into account.

However, where a farmer is excluded from receiving any direct
payments as a consequence of irregularities or non-compliances,
no additional amounts of aid shall be granted.

in respect of GDP per capita in purchasing power, the three-
year average, based on the data of national accounts, 1999 to
2001.

2.
By 31 October at the latest, the Member States shall com-
municate to the Commission the total amount of the additional
aid which has been granted for the preceding year.

PART IV

TRANSITIONAL AND FINAL PROVISIONS

Article 80

Repeal

Regulation (EC) No 2419/2001 is repealed. However, it
1.
shall continue to apply in respect of aid applications relating to
marketing years or premium periods which start before 1 Janu-
ary 2005.

In cases where reductions to be applied by way of off-setting in
accordance with the second subparagraph of Article 32(2), the
second subparagraph of Article 33, Article 34(2), the last sentence
of Article 35(3), the third subparagraph of Article 38(2), the sec-
ond subparagraph of Article 38(4) and Article 40(1) and (6) of
Regulation (EC) No 2419/2001 could not yet fully be off-set
before the date of application of this Regulation, the outstanding
balance shall be off-set against payments under any of the aid

schemes falling under this Regulation, provided the time limits for
the off-setting stipulated in those provisions have not yet expired.

2.
References to Regulation (EC) No 2419/2001 shall be con-
strued as references to this Regulation and shall be read in accor-
dance with the correlation table in Annex III.

Article 81

Entry into force

This Regulation shall enter into force on the seventh day follow-
ing that of its publication in the Official Journal of the European
Union.

It shall apply to aid applications relating to marketing years or
premium periods starting as of 1 January 2005.

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

Done at Brussels, 21 april 2004

For the Commission
Franz FISCHLER
Member of the Commission

(1) OJ L 56, 2.3.1988, p. 1.
(2) OJ L 77, 14.3.1998, p. 3.

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ANNEX I

COMMUNITY METHOD FOR THE QUANTITATIVE DETERMINATION OF
Δ9-TETRAHYDROCANNABINOL CONTENT IN HEMP VARIETIES

1.

Scope and area of application

This method seeks to determine the Δ9-tetrahydrocannabinol (hereinafter referred to as ‘THC’) content of varieties of
hemp (Cannabis sativa L.) As appropriate, the method involves applying procedure A or B herein described.

The method is based on the quantitative determination of Δ9-THC by gas chromatography (GC) after extraction with
a suitable solvent.

1.1. Procedure A

Procedure A shall be used for checks on production as provided for in Article 52(1) of Regulation (EC) No 1782/2003
and Article 26(2)(a) of this Regulation.

1.2. Procedure B

Procedure B shall be used in cases as referred to in Article 52(2) of Regulation (EC) No 1782/2003 and Article 33(4) of
this Regulation.

2.

Sampling

2.1. Samples

(a)

Procedure A: in a standing crop of a given variety of hemp, a 30 cm part containing at least one female inflores-
cence of each plant selected shall be taken. Sampling shall be carried out during the period running from 20 days
after the start of flowering to 10 days after the end of flowering, during the day, following a systematic pattern to
ensure that the sample is representative of the field but excluding the edges of the crop.

Member States may authorise sampling to be carried out during the period from the start of flowering to 20 days
after the start of flowering provided that, for each variety grown, other representative samples are taken in accor-
dance with the above rules during the period from 20 days after the start of flowering to 10 days after the end of
flowering.

(b)

Procedure B: in a standing crop of a given variety of hemp, the upper third of each plant selected shall be taken.
Sampling shall be carried out during the 10 days following the end of flowering, during the day, following a sys-
tematic pattern to ensure that the sample is representative of the field but excluding the edges of the crop. In the
case of dioecious varieties, only female plants shall be taken.

2.2. Sample size

Procedure A: the sample shall comprise parts of 50 plants per field.

Procedure B: the sample shall comprise parts of 200 plants per field.

Each sample shall be placed in a fabric or paper bag, without crushing it, and be sent to the laboratory for analysis.

The Member State may provide for a second sample to be collected for counteranalysis, if required, to be kept either by
the producer or by the body responsible for the analysis.

2.3. Drying and storage of the sample

Drying of the samples shall begin as soon as possible and, in any case, within 48 hours using any method below 70 oC.
Samples should be dried to a constant weight and to a moisture content of between 8 % and 13 %.

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After drying, the samples shall be stored without crushing them at below 25 oC in a dark place.

3. Determination of THC content

3.1. Preparation of the test sample

Stems and seeds over 2 mm in size shall be removed from the dried samples.

The dried samples shall be grinded to obtain a semi-fine powder (passing through a 1 mm mesh sieve).

The powder may be stored for 10 weeks at below 25 oC in a dark, dry place.

3.2. Reagents and extraction solution

Reagents

— Δ9-tetrahydrocannabinol, pure for chromatographic purposes,

— Squalane, pure for chromatographic purposes, as an internal standard.

Extraction solution

— 35 mg of squalane per 100 ml hexane.

3.3. Extraction of Δ9-THC

100 mg of the powdered test sample shall be weighed, be placed in a centrifuge tube and 5 ml of extraction solution
shall be added containing the internal standard.

Place in an ultrasound bath and leave for 20 minutes. Centrifuge for five minutes at 3000 r.p.m. and then remove the
supernatant THC solution. Inject the solution into the chromatograph and carry out a quantitative analysis.

3.4. Gas chromatography

(a) Apparatus

— gas chromatograph with a flame ionisation detector and a split/splitless injector,

— column allowing good separation of cannabinoids, for example a glass capillary column 25 m long and

0.22 mm in diameter impregnated with a 5 % non-polar phenyl-methyl-siloxane phase.

(b) Calibration ranges

At least three points for procedure A and five points for procedure B, including points 0.04 and 0.50 mg/ml
Δ9-THC in extraction solution.

(c)

Experimental conditions

The following conditions are given as an example for the column referred to in (a):

— oven temperature 260 oC

— injector temperature 300 oC

— detector temperature 300 oC

(d) Volume injected: 1 µl

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4. Results

The findings shall be expressed to two decimal places in grams of Δ9-THC per 100 grams of analytical sample dried to
constant weight. A tolerance of 0.03 g per 100 g shall apply.

— Procedure A: one determination per test sample.

However, where the result obtained is above the limit laid down in Article 52(1) of Regulation (EC) No 1782/2003,
a second determination shall be carried out per analysis sample and the mean value of the two determinations
shall be taken as the result.

— Procedure B: the result corresponds to the mean value of two determinations per test sample.

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ANNEX II

VARIETIES OF HEMP GROWN FOR FIBRE ELIGIBLE FOR DIRECT PAYMENTS

a. Hemp grown for fibre

Carmagnola

Beniko

Chamaeleon

Cs

Delta-Ilosa

Delta 405

Dioica 88

Epsilon 68

Fedora 17

Felina 32

Ferimon – Férimon

Fibranova

Fibrimon 24

Futura 75

Juso 14

Red Petiole

Santhica 23

Santhica 27

Uso 31

b. Hemp grown for fibre authorised in the 2004/2005 marketing year

Bialobrzeskie

Cannacomp (a)

Fasamo

Felina 34 – Félina 34

(a)

only in Hungary

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Fibriko TC

Finola

Lipko (a)

Silesia (b)

Tiborszállási (a)

UNIKO-B

(a)
(b)

only in Hungary
only in Poland

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ANNEX III

CORRELATION TABLE

Articles of Commission Regulation
(EC) No 2419/2001
1
2
3
4(1)
4(2)
5
6
7
8
9
10
11
12
13
14
15
16
17(1)
17(2)
17(3)
18
19
2
21
22
23
24
25
26
27
28
29
30
31(1)
31(2)
31(3)
31(4)
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54

Articles of this Regulation

–
2
5
6(1)
14(4)
8
–
–
15
–
16
18
19
21
22
23(1)
24
25(1)
25(2)
23(2)
26
27
28
29
30
32
34
35
36
37
38
39
49
50(1)
50(3)
50(6)
50(7)
51
53
55
56
57
58
59
–
60
61
62
63
68
69
70
71
72
73
74
75
76
–
–