Commission Regulation (EC) No 659/2006 of  27 April 2006  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
Date: 2006-04-27
Institutions: European Commission
Subjects: aid system, aid to agriculture, common agricultural policy, farmers' income, sugar

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Official Journal of the European Union

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COMMISSION REGULATION (EC) No 659/2006

of 27 April 2006

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

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

(3)

A number of references to other Regulations are obsolete
and should be updated with the relevant reference.

Having regard to the Treaty
Community,

establishing the European

support

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
and
establishing
(EC) No
amending
1452/2001,
(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 Article 145 (c), (da), (k), (l), (m) and (p)
thereof,

certain
Regulations
(EC) No 1453/2001,

(EC) No 1454/2001,

for
2019/93,

(EEC) No

schemes

farmers

Whereas:

(1)

(2)

into the single payment

Following the introduction of the support scheme for
scheme, Commission
sugar
Regulation (EC) No 796/2004 (2) needs to be amended
in several respects, in particular with regard to the appli-
cation procedure and the control measures to be carried
the
out with regard to that aid scheme. Moreover,
provisions of that Regulation need to be clarified with
regard to certain aspects.

The application of certain provisions of the detailed rules
of the integrated system set out in Regulation (EC) No
796/2004 to the schemes established in Article 143b
and Article 143c of Regulation (EC) No 1782/2003 is
provided for in Articles 136 and 140(1) respectively of
Commission Regulation
of
29 October 2004 laying down detailed rules for the
application of Council Regulation (EC) No 1782/2003
as regards the support schemes provided for in Titles
IV and IVa of that Regulation and the use of land set
aside for the production of raw materials (3). Regulation
(EC) No 796/2004 should be clarified to that extent.

1973/2004

(EC) No

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

lation (EC) No 319/2006 (OJ L 58, 28.2.2006, p. 32).

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

lation (EC) No 489/2006 (OJ L 88, 25.3.2006, p. 7).

(3) OJ L 345, 20.11.2004, p. 1. Regulation as last amended by Regu-

lation (EC) No 263/2006 (OJ L 46, 16.2.2006, p. 24).

(4)

Any specific information relating to the production of
sugar should be requested as part of the single appli-
cation.

(5)

(6)

In accordance with Article 14(2) of Regulation (EC) No
796/2004 the Member States may derogate from certain
provisions concerning the single application during the
first year of application of the single payment scheme or
when a new element is introduced to the single appli-
cation scheme. That derogation should also include the
possibility to change the use or aid scheme in respect of
individual parcels.

requires

schemes

concerning

The integration of the sugar reference amounts into the
single payment scheme following the reform in the sugar
sector, as provided for by Council Regulation (EC) No
319/2006 of 20 February 2006 amending Regulation
(EC) No 1782/2003 establishing common rules
for
direct support schemes under the common agricultural
for
policy and establishing certain support
farmers (4),
possible
flexibility
additions and amendments to the single application in
the case where a Member State applies Article 48c(8) of
Commission Regulation (EC) No 795/2004 of 21 April
2004 laying down detailed rules for the implementation
of the single payment scheme 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
farmers (5) during the year 2006. Such
schemes for
additions and amendments should therefore be allowed
until 15 June 2006. However,
the
submission of the single application as provided for in
Article 11 of Regulation (EC) No 796/2004 should be
maintained in order to allow the Member States to
organise their respective control programmes in due
time.

the dates

for

(4) OJ L 58, 28.2.2006, p. 32.
(5) OJ L 141, 30.4.2004, p. 1. Regulation as last amended by Regu-
lation (EC) No 658/2006 (see page 14 of this Official Journal).

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(7)

(8)

(9)

Chapter 10e of Regulation (EC) No 1782/2003 provides
for a transitional sugar payment in the Member States
applying Article 71 of that Regulation. Article 143ba of
that Regulation provides for a separate sugar payment in
Member States applying the single area payment scheme
provided for in Article 143b of that Regulation. Both the
transitional
sugar
payment are, due to their nature, not related to agri-
cultural area, which is why the provisions concerning
the single application pursuant to Regulation (EC) No
796/2004 do not apply to these payment schemes.
Provision should therefore be made for an appropriate
application procedure.

sugar payment

and the

separate

(14)

In the case where new sectors are being included in the
single payment scheme,
it should be provided for that
the rules in Article 21a of Regulation (EC) No 796/2004
concerning late submissions of applications to the single
payment scheme should also apply in the case of appli-
cations of farmers concerning such new sectors.

The cross-checks to be carried out on the single appli-
cation should be extended to certain particular checks
with regard to various conditions concerning the infor-
mation provided by the sugar manufacturers.

(10) Given the particularities of

the aid scheme for sugar
provided for in Chapters 10f of Title IV of Regulation
(EC) No 1782/2003, special control provisions should be
established.

(11)

In the case where the competent authority increases the
number of on-the-spot checks, it should also be possible
to increase the percentage of farmers randomly selected
for those checks.

(12)

In the case where a farmer declared more area than
payment entitlements, Article 50(2) of Regulation (EC)
No 796/2004 provides that the basis for the calculation
for the aid is the amount of hectares accompanied by
payment entitlements. In cases where the area declared
fulfils all other eligibility requirements, there is no need
for
in
accordance with Articles 51 or 53 of that Regulation.
These provisions should therefore be clarified to that
extent.

reductions or exclusions

the application of

only possible, in the case of livestock payments, within
the same aid scheme as where the irregularity has
occurred. This is contrary to the area-related schemes
where the off-set can be made to any payment covered
by Titles III and IV of Regulation (EC) No 1782/2003.
The rules
should be
harmonised.

the different aid schemes

for

Transitional rules concerning cases where reductions to
be applied by way of off-setting against payments the
following three years do only cover decisions taken
concerning applications for the year 2004. Given that
the livestock payments, after the introduction of
the
single payment
incorporated in that
scheme, an off-set should be possible against that aid
scheme.

scheme,

are

(15)

The introduction of new aid schemes into the single
payment scheme requires an updating of the references
to the budgetary ceilings referred to in Article 71a of
Regulation (EC) No 796/2004.

(16) When the single payment scheme and the single appli-
cation were introduced,
the latest date for area-based
payments and animal-based payments was harmonised.
Therefore it is appropriate to also harmonise the latest
date for the Member States to communicate information
concerning those payments.

(17)

Regulation (EC) No 796/2004 should therefore be
amended accordingly.

(18)

amendments provided for

The
in this Reglulation
concern aid applications relating to years or premium
periods starting as of 1 January 2006. This Regulation
should therefore apply as of 1 January 2006.

(19)

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

HAS ADOPTED THIS REGULATION:

(13)

The rules concerning reductions to be applied by way of
off-setting against payments the following three years are

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

Article 1

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1. Article 2 is amended as follows:

(a) point 12 is replaced by the following:

‘12.

referred to in the

“Area-related aid schemes”: shall mean the single
payment scheme, the hops payment to recognised
producer groups
second
paragraph of Article 68a of Regulation (EC) No
1782/2003 and all aid schemes established under
IV and IVa of Regulation (EC) No
Titles
1782/2003,
under
those
Chapters 7, 10e, 11 and 12 of that Title IV and
except the separate sugar payment established in
Article 143b(a) of that Regulation;’

established

except

(b) point 20 is replaced by the following:

‘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:

(a) Articles 90 and 94 of Regulation (EC) No
special

the

1973/2004,
relation
premium for male bovines;

to

in

(b) Article 101 of Regulation (EC) No 1973/2004,
in relation to the suckler cow premium;

(c) Article 123 of Regulation (EC) No 1973/2004,

in relation to the slaughter premium;

(d) Article

70(3)

1973/2004,
ovines and caprines;’.

of

(EC) No
in relation to aid paid for

Regulation

2. Article 13 is amended as follows:

(a) paragraph 6 is replaced by the following:

‘6.
In the case of an application for energy crops
provided for in Chapter 5 of Title IV of Regulation
application shall
(EC) No 1782/2003,
the
the applicant has
contain a copy of
first processor
a
concluded with a
pursuant
to Article 26 of Regulation (EC) No
1973/2004.’;

single
the contract
collector or

(b) the following paragraph is added:

‘13.
In the case of an application for the aid to sugar
beet and cane producers provided for in Chapter 10f of

Title IV of Regulation (EC) No 1782/2003, the single
application shall contain a copy of the delivery contract
referred to in Article 110r of that Regulation.’;

3. Article 14 is amended as follows:

(a)

in paragraph 1, the third subparagraph is replaced by
the following:

for

the purposes of

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

(b) in paragraph 2, the second subparagraph replaced by

the following:

‘Member States may, under the same conditions, also
allow changes regarding the use or aid scheme in
respect of
already
declared in the single application.

agricultural parcels

individual

The derogations provided for in the first and second
subparagraphs shall also apply with regard to the first
year when new sectors are introduced into the single
payment scheme and the payment entitlements are not
yet definitively established for the farmers concerned by
this introduction.’;

4. Article 15 is amended as follows:

(a)

in paragraph 1, the second and third subparagraphs are
replaced by the following:

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

In respect of the year 2006, the application for the aid
for sugar beet and cane producers provided for in
Chapter 10f of Title
IV of Regulation (EC) No
1782/2003 may be added to the single application
under the conditions referred to in the first subpar-
agraph of this paragraph.

Where the amendments referred to in the first, second
and third subparagraphs have a bearing on any
supporting documents or contracts to be submitted,
the
to such documents or
related amendments
contracts shall also be allowed.’;

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(b) in paragraph 2, the following subparagraph is added:

a date to be determined by the Member States which shall
not be later than 15 May and, in the case of Estonia, Latvia
and Lithuania, 15 June.

‘However, in respect of the year 2006, the amendments
made in accordance with paragraph 1 of this Article
shall be notified to the competent authority by 15 June
at the latest in those Member States which apply Article
48c(8) of Regulation (EC) No 795/2004.’;

However, in respect of the year 2006, the date referred to
in the first subparagraph shall not be later than 30 June
2006 for
the
the submission of aid applications
separate sugar payment in accordance with Article 143ba
of Regulation (EC) No 1782/2003.’;

for

5.

in Article 16(1), point (f) is replaced by the following:

7.

in Article 21a, the following paragraph is added:

‘(f) where applicable, the individual milk reference quantity
available to the farmer on 31 March or, if the Member
State concerned decides to make use of the derogation
provided for in Article 130 of Regulation (EC) No
1973/2004, on 1 April of
year
concerned; where this quantity is unknown on the
date on which the application is submitted, it shall be
notified to the competent authority at
the earliest
opportunity;’

calendar

the

6. the following Chapter is inserted after Article 17:

‘CHAPTER IIIA

SUGAR PAYMENT AND SEPARATE SUGAR PAYMENT

Article 17a

Requirements pertaining to aid applications for the
sugar payment and the separate sugar payment

1.
Farmers applying for the sugar payment provided for
in Chapter 10e of Regulation (EC) No 1782/2003 and
farmers applying for the separate sugar payment provided
for in Article 143ba of that Regulation shall submit an aid
application containing all information necessary to establish
eligibility for the aid, and in particular:

(a)

the identity of the farmer;

(b) a statement by the farmer that he is aware of
conditions pertaining to the aid in question.

the

2.
The aid application for the sugar payment or the
separate sugar payment respectively shall be submitted by

‘3.
Paragraphs 1 and 2 shall also apply in the first year
of the inclusion of new sectors into the single payment
scheme in respect of applications of farmers concerning
their participation in such sectors.’;

8.

in Article 24(1), the following point is added:

‘(k) between the information provided in the delivery
contract referred to in Article 110r of Regulation (EC)
No 1782/2003 and the information on deliveries
provided by the sugar manufacturer.’;

9. Article 26 is amended as follows:

(a) paragraph 1 is amended as follows:

(i) the following point is added to the second sub-

paragraph:

‘(e) 5 % of all farmers applying for the aid for sugar
beet and cane producers provided for in Chapter
10f of Title
IV of Regulation (EC) No
1782/2003.’;

(ii) the third subparagraph is replaced by the following:

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

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(b) in paragraph 2 the following point is added:

(b) paragraph 4 is replaced by the following:

‘(h) as regards applications for the aid for sugar beet
and cane producers provided for in Chapter 10f
of Title IV of Regulation (EC) No 1782/2003,
concerning controls at the sugar manufacturers on
the quantity quota sugar obtained from sugar beets
and cane delivered in accordance with Article 110r
of that Regulation, at least 5 % of the applicants
delivering to the manufacturer concerned.’;

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

10.

in Article 27(1) the following subparagraph is added:

13.

in Article 36(1), the second subparagraph is replaced by the
following:

‘However, if the number of farmers to be subjected to on-
the-spot checks exceeds the minimum number of farmers
to be subjected to on-the-spot checks as provided for in
Article 26(1) and (2), the percentage of randomly selected
farmers in the additional sample should not exceed 25 %.’;

11. the following Article is inserted after Article 31a:

‘Article 31b

On-the-spot checks on sugar manufacturers

checks on sugar manufacturers

On-the-spot
in the
framework of applications for sugar beet aid for sugar
beet and cane producers provided for in Chapter 10f of
Title IV of Regulation (EC) No 1782/2003 shall verify:

(a)

the information in the delivery contracts provided by
the farmer;

(b) the

correctness of

the

information on deliveries

provided to the competent authority;

(c)

the certification of
deliveries;

the weighting scales used for

‘The on-the-spot checks in slaughterhouses shall comprise a
posteriori scrutiny of documents, a comparison with the
entries in the computerised database for bovine animals
and checks of summaries relating to the slaughter certi-
ficates or information in place thereof, which were sent
to other Member States in accordance with Article 121(3)
of Regulation (EC) No 1973/2004.’;

14.

in Article 45(3), the first subparagraph is replaced by the
following:

‘By way of derogation from paragraph 2, the competent
authority may, with regard to the
requirements or
is responsible, select a control
standards for which it
sample of 1 % of all farmers submitting aid applications
under support schemes established in Titles III,
IV and
IVa of Regulation (EC) No 1782/2003 and who are
the
under
requirements or standards.’;

the obligation to respect at

least one of

15.

in Article 50, paragraph 2 is replaced by the following:

‘(2) 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.’;

(d) the results of the official laboratory analyses performed
to determine the percentage of sucrose of the sugar
beets and cane delivered.’;

16. Article 51 is amended as follows:

12. Article 32 is amended as follows:

(a)

in the second subparagraph of paragraph 2, the second
sentence is replaced by the following:

(a)

in paragraph 3, point (a) is replaced by the following:

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

‘That amount shall be off-set against aid payments
under any of the aid schemes referred to in Titles III,
IV and IVa of Regulation (EC) No 1782/2003 to which
the farmer is entitled in the context of applications he
lodges
the three calendar years
following the calendar year of the finding.’;

in the course of

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(b) the

following

paragraph

2a

is

inserted

after

paragraph 2:

‘2a.
If a farmer declares more area than payment
entitlements and the area declared fulfils all other elig-
ibility
exclusions
provided for in paragraphs 1 and 2 shall not apply.

reductions or

requirements,

the

If a farmer declares more area than payment enti-
tlements and the area declared does not
fulfil all
the difference referred
other eligibility requirements,
to in paragraphs 1 and 2 shall be the difference
between
eligibility
fulfilling
requirements and the amount of payment entitlements
declared.’;

other

area

the

all

‘That amount shall be off-set against aid payments
under any of the aid schemes referred to in Titles III,
IV and IVa of Regulation (EC) No 1782/2003 to which
the farmer is entitled in the context of applications he
the three calendar years
lodges
following the calendar year of the finding.’;

in the course of

(b) in the second subparagraph of paragraph 4, the second

sentence is replaced by the following:

‘That amount shall be off-set against aid payments
under any of the aid schemes referred to in Titles III,
IV and IVa of Regulation (EC) No 1782/2003 to which
the farmer is entitled in the context of applications he
the three calendar years
lodges
following the calendar year of the finding.’;

in the course of

17. Article 53 is amended as follows:

(a)

in the second paragraph the second sentence is replaced
by the following:

‘That amount shall be off-set against aid payments
under any of the aid schemes referred to in Titles III,
IV and IVa of Regulation (EC) No 1782/2003 to which
the farmer is entitled in the context of applications he
lodges
the three calendar years
following the calendar year of the finding.’

in the course of

19. Article 60 is amended as follows:

(a) paragraph 4 is replaced by the following:

‘4. Where it is determined that the percentage of the
area of the holding used for agriculture located in areas
listed in Annex X to Regulation (EC) No 1973/2004 is
below 50 %, the goat premium shall not be paid.’;

(b) the following paragraphs are added:

(b) in the second subparagraph of paragraph 6, the second

sentence is replaced by the following:

‘If a farmer declares more area than payment enti-
tlements and the area declared fulfils all other eligibility
requirements, the reductions or exclusions provided for
in the first and second paragraphs shall not apply.

If a farmer declares more area than payment enti-
fulfil all
tlements and the area declared does not
other eligibility requirements,
the difference referred
to in the first and second paragraphs shall be the
difference between the area fulfilling all other eligibility
requirements and the amount of payment entitlements
declared.’;

‘That amount shall be off-set against aid payments
under any of the aid schemes referred to in Titles III,
IV and IVa of Regulation (EC) No 1782/2003 to which
the farmer is entitled in the context of applications he
lodges
the three calendar years
following the calendar year of the finding.’;

in the course of

20.

in Article 62, the first sentence is replaced by the following:

18. Article 59 is amended as follows:

(a)

in the third subparagraph of paragraph 2, the second
sentence is replaced by the following:

‘As regards the declarations or certificates issued by slaugh-
in connection with the slaughter premium
terhouses
provided for
in Article 121 of Regulation (EC) No
1973/2004, if it is found that the slaughterhouse made a
false certification or declaration as a result of serious
negligence or intentionally, the Member State concerned
shall apply appropriate national sanctions.’;

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21.

in the second paragraph of Article 64, the third sentence is
replaced by the following:

‘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, IV and IVa of
Regulation (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.’;

22.

in Article 71a(2)(d), the first subparagraph is replaced by
the following:

‘With regard to aid schemes listed in Annex I to Regulation
(EC) No 1782/2003 for which a budgetary ceiling is fixed
in accordance with Articles 64(2), 70(2), 71(2), 110p(1),
143b(7) and 143ba(2) of that Regulation, the Member State
shall sum up the amounts resulting from the application of
points (a), (b) and (c).’;

23.

in Article 73(2),
following:

the first sentence is replaced by the

‘Member States may decide that recovery of an undue
payment is to be made by deduction of the corresponding
amount from any advances or payments under aid schemes
referred to in Titles III, IV and IVa of Regulation (EC) No
1782/2003 made to the farmer concerned following the
date of the decision to recover.’;

24. Article 76(1) is amended as follows:

the separate sugar payment established in Article 143ba
of Regulation (EC) No 1782/2003, a report covering
the previous calendar year and, in particular, relating to
the following points:’;

(b) the second subparagraph is replaced by the following:

sent

‘At the same time as the report referred to in the first
to the Commission, Member
subparagraph is
States shall notify the total number of beneficiaries
who received aid under aid schemes falling within the
scope of the integrated system and the results of the
checks relating to cross-compliance in accordance with
Chapter III of Title III.’;

25.

in Article 80(1), the following subparagraph is added:

in cases where reductions

‘When a Member State introduces the single payment
scheme after 2005,
to be
applied by way of off-setting in accordance with the third
subparagraph of Article 59(2) and the second subparagraph
of Article 59(4) could not yet fully be off-set before the
date of application of
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.’

the single payment scheme,

Article 2

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

(a)

in the first subparagraph, the introductory terms are
replaced by the following:

It shall apply to aid applications relating to years or premium
periods starting as of 1 January 2006.

‘Member States shall send the Commission by 15 July
each year at the latest, for the single payment and other
area-related aid schemes as for animal premiums and

However, points (16)(b) and (17)(b) of Article 1 shall apply to
aid applications relating to 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, 27 April 2006.

For the Commission

Mariann FISCHER BOEL
Member of the Commission