Commission Regulation (EC) No 1954/2005 of  29 November 2005  amending Regulation (EC) No 796/2004 laying down detailed rules for the implementation of cross-compliance, modulation and the integrated administration and control system provided for in 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 and derogating from Regulation (EC) No 1782/2003 as regards payment of the aid
Date: 2005-11-29
Institutions: European Commission
Subjects: aid to agriculture, single payment scheme, terms for aid

L 314/10

EN

Official Journal of the European Union

30.11.2005

COMMISSION REGULATION (EC) No 1954/2005

of 29 November 2005

amending Regulation (EC) No 796/2004 laying down detailed rules for the implementation of cross-
compliance, modulation and the integrated administration and control system provided for in
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 and
derogating from Regulation (EC) No 1782/2003 as regards payment of the aid

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty
Community,

establishing the European

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) No 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 of Articles 28(3)
and 145(c) thereof,

Whereas:

(1)

(2)

(3)

Commission Regulation (EC) No 796/2004 (2) lays down
the method for the calculation of the various reductions
that may have to be applied in respect of direct aid
governed by Regulation (EC) No 1782/2003. That
method needs to be clarified. To this end, the sequence
for the calculation of potential reductions should be
determined.

Articles 64, 70, 71 and 143b of Regulation (EC)
the fixing of budgetary
No 1782/2003 provide for
ceilings by the Commission for each of
the direct
payments concerned. Provision should be made in
order to determine whether and to which extent those
budgetary ceilings are overshot. In so doing, it should be
irregularities attri-
avoided that
butable to individual aid applicants affect the calculation
of such overshoot.

the consequences of

Articles 10 and 11 of Regulation (EC) No 1782/2003
provide
case may be,
adjustments of all direct payments to be granted in

reductions

and, as

the

for

(4)

(5)

(6)

respect of a calendar year due to modulation and
financial discipline, respectively. The respective imple-
menting provisions need to be adapted to the new
sequence of calculation of reductions in the process of
calculating the amount of the payments to be made to
farmers.

Article 79 of Regulation (EC) No 796/2004 sets out the
method for determining whether
threshold of
EUR 5 000 referred to in Article 12 of Regulation (EC)
No 1782/2003 has been reached. Due to the new
sequence of calculation of
that method
should be adapted.

reductions,

the

Several Member States are facing various difficulties in
the finalisation of the measures necessary for the appli-
cation of aid schemes introduced by Regulation (EC)
No 1782/2003.
In such cases, Member States should
therefore be authorised, by way of derogation from
to
Article 28(2) of Regulation (EC) No 1782/2003,
in order
grant payments in two instalments. However,
the Community,
to protect
Member States should grant
instalment only
up to an amount for which eligibility has already been
established and for which it is clear that it is not higher
than the overall amount to be paid.

interests of
the first

the financial

the reductions

As a result of the change in the sequence of calculation
of
in the process of calculating the
amount of the direct payments, certain Member States
need to adapt their systems for the administration of the
aid schemes concerned. In order to avoid that such adap-
tations lead to delays as regards payments in respect of
the year 2005, Member States should, as regards certain
aid schemes, therefore be authorised to start to apply the
new sequence of the calculations of the reductions for
the first time with regard to aid applications submitted in
respect of the year 2006.

(1) OJ L 270, 21.10.2003, p. 1. Regulation as last amended by
Commission Regulation (EC) No 118/2005 (OJ L 24, 27.1.2005,
p. 15).

(2) OJ L 141, 30.4.2004, p. 18. Regulation as last amended by Regu-

lation (EC) No 436/2005 (OJ L 72, 18.3.2005, p. 4).

(7)

The measures provided for in this Regulation are in
accordance with the opinion of
the Management
Committee for Direct Payments,

30.11.2005

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Official Journal of the European Union

L 314/11

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EC) No 796/2004 is amended as follows:

1. Article 71 is replaced by the following:

‘Article 71

Accumulation of reductions

1. Where a case of non-compliance also constitutes an
irregularity, therefore being relevant in view of the appli-
cation of reductions or exclusions in accordance with both
Chapter I and with Chapter II of Title IV:

(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 to the total amount of payments
to be granted under the single payment scheme and any
aid schemes
to reductions or
exclusions referred to in point (a).

that are not

subject

The reductions or exclusions referred to in the first subpar-
agraph shall be applied in accordance with the procedure
provided for in Article 71a(2).

Subject

to Article 6 of Council Regulation (EC)
2.
No 2988/95 (*), the reductions and exclusions under this
Regulation shall
to additional
sanctions pursuant to other provisions under Community
or national law.

be without prejudice

___________
(*) OJ L 312, 23.12.1995, p. 1.’;

2. the following Article 71a is inserted:

‘Article 71a

Application of reductions

1.
The amount of the payment to be granted to a farmer
under a support scheme listed in Annex I to Regulation (EC)
No 1782/2003 shall be calculated by the Member States on
the basis of the conditions established in the support scheme
in question, taking into account, if necessary, the overrun of
the basic area, of the maximum guaranteed area, or of the
number of animals entitled to benefit from the premiums.

2.
irregularities,
overshooting

For each aid scheme, reductions or exclusions due to
late submissions, non-declarations of parcels,
ceilings, modulation,

budgetary

the

of

financial discipline and non-respect of cross-compliance
shall be carried out, if necessary, in the following way and
sequence:

(a) the reductions or exclusions provided for in Chapter I of
Title IV or, as the case may be, those provided for in
Article 138 of Regulation (EC) No 1973/2004, shall be
applied with regard to irregularities;

(b) the amount resulting from the application of point (a)
shall serve as a basis for the calculation of any reductions
to be applied in case of late submissions in accordance
with Articles 21 and 21a of this Regulation;

(c) the amount resulting from the application of point (b)
shall serve as a basis for the calculation of any reductions
to be applied in cases of non-declaration of agricultural
parcels in accordance with Article 14(1a) of this Regu-
lation;

(d) with regard to aid schemes listed in Annex I to Regu-
lation (EC) No 1782/2003 for which a budgetary ceiling
is fixed in accordance with Articles 64(2), 70(2), 71(2)
and 143b(7) of that Regulation, the Member State shall
sum up the amounts resulting from the application of
points (a), (b) and (c).

For each of those aid schemes, a coefficient shall be
determined by dividing the amount of
the budgetary
ceiling in question by the sum of the amounts referred
to in the first subparagraph. If the coefficient obtained is
higher than 1, a coefficient equal to 1 shall be applied.

To calculate the payment to be granted to the individual
farmer under an aid scheme for which a budgetary
ceiling is fixed, the amount resulting from the application
of points (a), (b) and (c) shall be multiplied by the coef-
ficient determined in the second subparagraph;

(e) reductions due to modulation provided for in Article 10
of Regulation (EC) No 1782/2003 and, as the case may
be,
in accordance with Commission Regulation (EC)
No 1655/2004 (*), as well as the reduction due to the
financial discipline provided for in Article 11 of Regu-
lation (EC) No 1782/2003, shall be applied to the
amount of the payment resulting from the application
of points (a), (b), (c) and (d);

(f)

the amount of the payment resulting from the appli-
cation of point (e) shall serve as the basis for the calcu-
lation of any reductions to be applied for the non-respect
of cross-compliance in accordance with Chapter II of
Title IV of this Regulation.

___________
(*) OJ L 298, 23.9.2004, p. 3.’;

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Official Journal of the European Union

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3. Article 77 is replaced by the following:

Article 2

‘Article 77

Basis for the calculation of the reduction

The amount of reduction in accordance with Article 10 of
Regulation (EC) No 1782/2003 shall be calculated on the
basis of the amounts of direct payments to which farmers
are entitled, in accordance with the procedure provided for
in the case of aid
in Article 71a of this Regulation or,
schemes
(EC)
to
No 1782/2003 but not falling under Titles III or IV of
the specific legislation applicable
that Regulation, under
thereto.’;

in Annex

Regulation

listed

I

4.

in Article 79(1), the first subparagraph is replaced by the
following:

‘For the purposes of determining whether the threshold of
EUR 5 000 referred to in Article 12 of Regulation (EC)
the total amount of
No 1782/2003 has been reached,
direct payments that would have to be granted before the
to modulation in
application of
accordance with Article 10 of that Regulation or,
in the
case of aid schemes listed in Annex I to that Regulation
but not falling under Titles III or IV of that Regulation,
under the specific legislation applicable thereto, shall be
taken into account.’

any reductions due

in respect of

By way of derogation from Article 28(2) of Regulation (EC)
No 1782/2003,
the Member
States are authorised to carry out
the payments under the
support schemes referred to in Annex I to that Regulation in
two instalments where administrative difficulties resulting from
the first application of those support schemes so require.

the year 2005,

The first instalment may only be paid up to an amount for
which eligibility has already been established on the basis of
checks
in accordance with Regulation (EC)
No 796/2004 and where there is no risk that the amount of
the total payment yet to be established is lower than that of the
first instalment.

carried out

Article 3

This Regulation shall enter into force on the day of its publi-
cation in the Official Journal of the European Union.

It shall apply to aid applications relating to years starting as of
1 January 2005.

However, Member States may decide not to apply Article 1 of
this Regulation with regard to payments under the Single
Payment Scheme established in Title III of Regulation (EC)
established in
No 1782/2003 and to the
Chapters 1 to 7 of Title IV of that Regulation, to be made in
respect of the year 2005.

aid schemes

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

Done at Brussels, 29 November 2005.

For the Commission

Mariann FISCHER BOEL
Member of the Commission