Commission Regulation (EC) No 972/2007 of 20 August 2007 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: 2007-08-20
Institutions: European Commission
Subjects: aid system, aid to agriculture, common agricultural policy, farmers' income, farming system, production aid

21.8.2007

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Official Journal of the European Union

L 216/3

COMMISSION REGULATION (EC) No 972/2007

of 20 August 2007

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,

(4)

the

To ensure an adequate and reliable system for identifi-
cation of
the provisions
agricultural parcels,
concerning the declaration of areas and in particular,
the need to indicate
the
reference parcels when the pre-printed application form
is corrected, needs to be clarified.

the new boundaries of

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 Article 145(c), (j),
(k), (l), (m), (n) and (p) thereof,

Whereas:

(1)

(2)

Experienced gained since the introduction of the support
schemes under Regulation (EC) No 1782/2003 shows
that Commission Regulation (EC) No 796/2004 (2)
needs to be amended. Moreover, Regulation (EC) No
796/2004 needs to be clarified with regard to certain
aspects and a number of simplifications of
the rules
In addition, provisions which
should be introduced.
have become obsolete,
the
in particular because of
ending of the transitional period provided for in Article
71 of Regulation (EC) No 1782/2003, should be deleted.

In order to ensure coherence between the obligations to
declare separate use of parcels and the definition of the
‘agricultural parcel’, that definition should be clarified in
the case where a separate declaration of the use of a
parcel is required in the context of Regulation (EC) No
796/2004. In the case where that separate declaration of
use concerns an area within a crop group, it is appro-
priate to clarify that the agricultural parcel is defined by
that use.

(3)

Following the accession of Bulgaria and Romania to the
European Union the definition of the term ‘new Member
States’ needs to be updated.

(5)

(6)

(7)

Following the amended rules for payments for energy
crops and the introduction of the written declaration
provided for in Article 33(2) of Commission Regulation
(EC) No 1973/2004 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)
amended by Regulation (EC) No
270/2007 (4), Articles 13 and 24 of Regulation (EC)
No 796/2004 should be amended accordingly.

as

To verify the eligibility of certain payments, the farmer is
required to send supporting documents when he is
making his application. In order to simplify the admin-
istration for the farmer as well as for the national autho-
rities, it should be possible for the national authority to
require those documents directly from the source of
information.

The integration of the banana reference amounts into the
single payment scheme following the reform in the
banana sector, as provided for by Council Regulation
(EC) No 2013/2006 of 19 December 2006 amending
Regulations (EEC) No 404/93, (EC) No 1782/2003 and
(EC) No 247/2006 as regards the banana sector (5),
requires
flexibility concerning possible additions and
amendments to the single application during the year
the
2007. However,
single application as provided for in Article 11 of Regu-
lation (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 the submission of

(1) OJ L 270, 21.10.2003, p. 1. Regulation as last amended by
Commission Regulation (EC) No 552/2007 (OJ L 131, 23.5.2007,
p. 10).

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

lation (EC) No 381/2007 (OJ L 95, 5.4.2007, p. 8).

(3) OJ L 345, 20.11.2004, p. 1. Regulation as last amended by
Commission Regulation (EC) No 381/2007 (OJ L 95, 5.4.2007,
p. 8).

(4) OJ L 75, 15.3.2007, p. 8.
(5) OJ L 384, 29.12.2006, p. 13.

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(8)

(9)

(10)

(11)

Based on experience, the current provisions for selection
of farmers for on-the-spot checks and the control rates
should be improved and more flexibility should be given
to the Member States. This can be achieved by setting the
requirement of a sample to at least 5 % of the farmers
applying for the single payment scheme or the single
area payment scheme. At the same time the Member
State should assure that at
the farmers
applying for the aid schemes provided for under Titles
III, IV and IVa of Regulation (EC) No 1782/2003 are
selected for control. The control rate for farmers whose
agricultural parcels are being declared by a producer
group applying for hops payments should be adapted
accordingly. For ovine and caprine premia,
the intro-
duction of a centralised database for registration of the
animals justifies a decrease of the control rate.

least 3 % of

Taking too many pre-defined factors into account when
doing the risk analyses to select a sample for on-the-spot
controls could have an adverse effect on the sample.
Therefore it is appropriate to give the responsibility to
choose the risk factors to the competent authority as it is
in a better position to chose the relevant risk factors. To
assure relevant and efficient
the effec-
the risk analyses should be assessed and
tiveness of
the
updated on an annual basis taking into account
relevance of each risk factor, comparing the results of
randomly and risk based selected samples and the
specific situation in the Member State.

risk analyses,

In order to make it possible to start the on-the-spot
checks as early as possible in the year also before all
it
information on the application forms is available,
should be possible for
the competent authority to
make a partial selection of the control sample based on
already available information.

Rules for identification and registration of ovine and
caprine animals have been introduced by Council Regu-
lation (EC) No 21/2004 of 17 December 2003 estab-
lishing a system for the identification and registration
of ovine and caprine animals and amending Regulation
(EC) No 1782/2003 and Directives 92/102/EEC and
64/432/EEC (1). Those rules also apply on animals for
which an aid is applied for. Therefore the relevant
provisions in Regulation (EC) No 796/2004 should be
updated.

(13)

(14)

(15)

(16)

(17)

In order to ensure the quality of the on-the-spot checks,
provisions to assure a minimum quality of measurements
of areas should be introduced and the means used should
be proven to assure a quality at least equivalent to that
required by applicable technical standard as drawn up at
Community level.

shown that

the use of a perimeter
Experience has
tolerance when measuring parcels is the most appro-
priate. Focusing on the perimeter
tolerance would
furthermore
simplify the systems and assure equal
treatment of farmers in different Member States.

Experience gained shows that it is possible to simplify
the check of documents during the on-the-spot controls
for livestock premia without jeopardising the quality of
the check. However, if anomalies are found during the
check, the time period for which the documents should
be checked should be extended.

In relation to applications for area related payments,
differences between the total area declared in the appli-
cation and the total area determined as eligible are often
insignificant. To avoid a high number of minor
adjustments of applications it should be provided that
the aid application should not be adjusted to the area
is
determined unless a certain level of differences
exceeded.

The general principle applied is that there is no tolerance
when a farmer has intentionally over declared his area.
This can lead to an undesired reduction of the payment.
A threshold should therefore be introduced also in case
of intentional over declaration to assure proportionality
when this over declaration is of a limited nature. Never-
theless, it is still an intentional act by the farmer and the
tolerance should therefore be at very low level.

(18) When a Member State makes use of

the possibility
provided for
in Article 69 of Regulation (EC) No
1782/2003 and the payments are granted for areas or
livestock it is appropriate to apply the rules in Title IV of
Regulation (EC) No 796/2004. This needs to be clarified
and Article 63 of Regulation (EC) No 796/2004 should
be amended accordingly.

(12) On-the-spot checks can either be performed by a visit on
the farm or via remote sensing. The two ways of
equal value and that
performing the
should be clarified by streamlining the rules for the
different ways of performing an on-the-spot check.

checks have

(1) OJ L 5, 9.1.2004, p. 8. Regulation as amended by Regulation (EC)

No 1791/2006 (OJ L 363, 20.12.2006, p. 1).

(19)

In certain cases unduly allocations of entitlements did
not affect the total value, but only the number of the
entitlements of the farmer. In these cases, the Member
States should correct the allocation or where appropriate
the type of entitlements, without reducing the value
hereof. The provision should only apply if the farmer
could not have detected the error.

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(20)

The reporting requirements for the Member States should
be updated to assure an efficient reporting of the checks
of the production aids for starch potatoes, seeds and
tobacco.

(21)

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

3.

in the second subparagraph of Article 12(4),
sentence is replaced by the following:

the first

‘If the correction relates to the reference parcel area, the
farmer shall declare the up-to-date area of each agricultural
parcel concerned and where necessary indicate the new
boundaries of the reference parcel.’;

(22)

into the single payment

inclusion of banana
The provision related to the
reference amounts
scheme
provided for in this Regulation concerns aid applications
relating to years or premium periods starting from 1
January 2007. This also applies
the provision
including Bulgaria and Romania in the definition of
‘new Member States’. Those provisions should therefore
apply from 1 January 2007.

for

(23)

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

HAS ADOPTED THIS REGULATION:

Article 1

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

1. Article 2 is amended as follows:

4. 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
the
(EC) No 1782/2003,
the applicant has
contain a copy of
concluded with a
first processor
a
pursuant
to Article 25 of Regulation (EC) No
1973/2004 or, in case of application of Article 33(2)
of that Regulation, a written declaration in accordance
with that Article.’;

single
the contract
collector or

(b) the following paragraph is added:

‘14.
The information required in the supporting
documents set out in this Article may, when possible,
the infor-
be requested directly from the source of
mation by the competent authority.’;

(a)

in the first paragraph, point (1)(a) is replaced by the
following:

5. Article 15 is amended as follows:

‘(1a) “agricultural parcel”: shall mean a continuous area
of land on which a single crop group is cultivated
by a single farmer; however, where a separate
declaration of the use of an area within a crop
group is required in the context of this Regu-
lation, that specific use shall further limit the agri-
cultural parcel;’

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

this Regulation, “new Member
‘For the purposes of
States”
the Czech Republic,
Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta,
Poland, Romania, Slovenia and Slovakia.’;

shall mean Bulgaria,

2. Article 8(2) is replaced by the following:

‘2. Where an area is used in common, the competent
authorities shall notionally allocate it between the indi-
vidual farmers in proportion to their use or right of use
of it.’;

(a)

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

subparagraphs

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

bearing

a

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

the following:

‘However, in respect of the year 2007, 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.
In duly
justified cases, notifications of such amendments shall
be accepted until 20 days following the publication of
Regulation (EC) No 972/2007 (*) in the Official Journal
of the European Union.
___________
(*) OJ L 216, 21.8.2007, p. 3.’

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6.

in Article 17a(2), the second subparagraph is deleted;

(ii) point (e) is replaced by the following:

7. Article 21(3) is deleted;

8. Article 24(1)(f) is replaced by the following:

‘(f) where

contracts,

supporting

documents,

growing
declarations or written declarations
in accordance
with Article 33(2) of Regulation (EC) No 1973/2004
have to be submitted and where applicable, between
the agricultural parcels as declared in the single appli-
cation and in the supporting documents, contracts,
growing
in
accordance with Article 33(2) of Regulation (EC) No
1973/2004 to verify the eligibility for aid of the area;’

or written

declarations

declarations

9. Article 26 is amended as follows:

‘(e) 3 % of all farmers whose agricultural parcels are
being declared by a producer group applying for
hops payments in accordance with Article 15a.’;

10. Article 27 is amended as follows:

(a) The first subparagraph of paragraph 1 is replaced by

the following:

‘Control samples for on-the-spot checks under this
competent
Regulation shall be
authority on the basis of a risk analysis and representa-
tiveness of the aid applications submitted. The effec-
tiveness of risk analysis shall be assessed and updated
on an annual basis:

selected by

the

(a) Paragraph 1 is replaced by the following:

(a) by establishing the relevance of each risk factor;

‘1.
The total number of on-the-spot checks carried
out each year shall cover at least 5 % of all farmers
applying for the single payment scheme or the single
area payment scheme.

The Member States shall assure that on-the-spot checks
cover at least 3 % of the farmers applying for aid under
each of other area related aid schemes provided for
under Titles
IV and IVa of Regulation (EC)
III,
No 1782/2003.’;

(b) Paragraph 2 is amended as follows:

(i) point (c) is replaced by the following:

(b) by comparing the results of
randomly selected sample
second subparagraph;

the risk based and
referred to in the

(c) by taking into account the specific situation in the

Member State.’;

(b) Paragraph 2 is deleted;

(c)

the following paragraph is added:

‘4.
A partial selection of the control sample may,
where appropriate, be made before the end of the appli-
cation period in question, on the basis of available
be
provisional
information.
completed when all relevant applications are available.’;

sample

shall

The

‘(c) 5 % of all farmers applying for aid under the
ovine/caprine aid scheme irrespective of whether
the aid applications are being submitted as part
of the single application or independently; those
on-the-spot checks shall also cover at least 5 %
of all animals for which aid is applied for;
however, where the computerised database for
ovine/caprine animals provided for in Article 8
of Regulation (EC) No 21/2004 does not offer
level of assurance and implementation
the
necessary for the proper management of
the
aid schemes involved, the percentage shall be
increased to 10 % of the farmers.’;

11.

in Article 28(1), point (d) is replaced by the following:

‘(d) the number and type of animals found and, where
applicable, the ear tag numbers, entries in the register
and in the computerised databases for bovine and/or
ovine/caprine 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.’

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12. Article 29 is replaced by the following:

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

‘Article 29

Elements of on-the-spot checks

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 applications for seed aid in accordance with
Article 99 of that Regulation. Nevertheless, the actual deter-
mination of the areas as part of an on-the-spot check may
be limited to a sample of at least 50 % of the agricultural
parcels for which an application has been submitted under
the aid schemes established in Titles III,
IV and IVa of
Regulation (EC) No 1782/2003 provided that the sample
guarantees a reliable and representative level of control
both in respect of area checked and aid claimed. When
this sample check reveals anomalies the sample of agri-
cultural parcels actually inspected shall be increased.

Member States may make use of remote sensing and Global
Navigation Satellite Systems techniques.’;

13. Article 30(1) is replaced by the following:

‘1.
Agricultural parcel areas shall be determined by any
means proven to assure measurement of quality at least
equivalent
technical
required by
standard, as drawn up at Community level.

applicable

to that

(b) carry out physical inspections in the field of all agri-
cultural parcels for which photo interpretation does not
the
make
to verify the
declaration to the
competent
authority.

satisfaction of

accuracy of

it possible

the

The additional checks referred to in Article 26(3) shall
2.
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.’;

15.

in Article 33a,
following:

the first paragraph is replaced by the

‘The on-the-spot checks referred to in Article 26(2)(e) shall
be carried out by way of application of the provisions of
Article 29, Article 30(1),
the first and second subpara-
graphs of Article 30(2), Article 30(3), Article 30(4) and
Article 32 mutatis mutandis.’;

A measurement tolerance shall be defined by a buffer of
maximum 1,5 m applied to the perimeter of the agri-
cultural parcel. The maximum tolerance with regard to
each agricultural parcel
in absolute terms,
exceed 1,0 ha.

shall not,

16. Article 35 is amended as follows:

The tolerance provided for in the second subparagraph
shall not apply to olive parcels for which the area is
expressed in olive GIS-ha in accordance with points 2
and 3 of Annex XXIV to Regulation (EC) No 1973/2004.’;

(a)

in the first subparagraph of paragraph 2(b), the first and
second indents are replaced by the following:

14. Article 32 is replaced by the following:

‘Article 32

Remote sensing

a Member State

1. Where
the possibility,
provided for in the second paragraph of Article 29, to
it shall:
carry out on-the-spot checks by remote sensing,

applies

‘— of the correctness of entries in the register and the
to the computerised database for
notifications
bovine animals on the basis of a sample of
supporting documents such as purchase and sales
invoices, slaughter certificates, veterinary certificates
and, where applicable, animal passports, in relation
to animals
for which aid applications were
submitted in the six months prior to the on-the-
spot check; however if anomalies are found, the
check shall be extended to 12 months prior to
the on-the-spot check,

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— 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 animals for which aid applications were
submitted in the six months prior to the on-the-
spot check; however if anomalies are found the
check shall be extended to 12 months prior to
the on-the-spot check,’;

The provision referred to in the second subparagraph
shall not apply where that difference represents more
than 20 % of the total area declared for payments.’;

(b) Paragraph 6 is deleted;

(b) Paragraph 2(c) is replaced by the following:

20.

in Article 53, the first subparagraph is replaced by the
following:

‘(c) in relation to the ovine/caprine aid scheme:

— a check on the basis of the register that all the
application were
animals
submitted have been kept on the holding
throughout the retention period,

for which

aid

— a check of

the correctness of entries in the
register in the six months prior to the on-the-
spot check, based on a sample of supporting
documents such as purchase and sales invoices
six
and veterinary certificates
months
check;
the
however if anomalies are found the check shall
be extended to 12 months prior to the on-the-
spot check.’;

covering the

on-the-spot

prior

to

‘Where differences between the area declared and the area
determined 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
if that difference is more than 0,5 % of the area determined
or more than one hectare.’;

21.

in the first paragraph of Article 54a,
phrase is replaced by the following:

the introductory

‘Where it is found that tobacco was not replanted on the
parcel indicated in the cultivation contract by 20 June of
the year of harvest:’;

17.

in Article 38, the first sentence is replaced by the following:

22. Article 55 and 56 are deleted;

‘As regards the additional payment
to be granted for
farming or for quality production as
specific types of
provided for
in Article 69 of Regulation (EC) No
1782/2003, the Member States shall, where appropriate,
apply the provisions of this Title.’;

18.

in Article 49(1), points (d), (e) and (f) are deleted;

19. Article 50 is amended as follows:

23.

in Article 58(1), the second sentence is replaced by the
following:

‘However, suckler cows or heifers in respect of which aid is
claimed in accordance with Article 125 or Article 129 of
Regulation (EC) No 1782/2003 may be replaced during the
retention period within the limits provided for in those
Articles without the loss of the right to the payment of
the aid applied for.’;

24. Article 63 is replaced by the following:

(a)

In paragraph 3, the following subparagraphs are added:

‘However, without prejudice to Article 29 of Regulation
(EC) No 1782/2003, if the difference between the total
area determined and the total area declared for payment
under aid schemes established in Titles III, IV and IVa
of Regulation (EC) No 1782/2003 is less than or equal
to 0,1 hectare, the area determined shall be set equal to
the area declared. For
this calculation only over-
declarations of areas at crop group level shall be
taken into account.

‘Article 63

Findings in relation to the additional payment

As regards the additional payment to be granted for specific
types of farming or for quality production as provided for
the
in Article 69 of Regulation (EC) No 1782/2003,
Member States shall provide for reductions and exclusions
which shall, in substance, be equivalent to those provided
for in this Title. In case area-related or livestock payments
are granted the provisions of this Part shall apply mutatis
mutandis.’

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25.

in Article 73a, the following paragraph 2a is inserted:

(b) the number of claimants as well as the total area, total

number of animals and the total of quantities;

‘2a. Where, for the purpose of the application of para-
graphs 1 and 2 it is established that the number of the
entitlements allocated to a farmer in accordance with Regu-
lation (EC) No 795/2004 is incorrect, and where the
unduly allocation has no impact on the total value of the
entitlements the farmer received, the Member State shall
recalculate the payment entitlements and where appropriate
correct the type of the entitlements allocated to the farmer.
However, this shall not apply if the errors could reasonably
have been detected by the farmers.’;

26. Article 76(1) is replaced by the following:

(c)

the number of claimants as well as the total area, the
total number of animals and the total of quantities,
covered by checks;

(d) the result of

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

(e)

the results of the checks relating to cross-compliance in
accordance with Chapter III of Title III.’

‘1. Member States shall submit to the Commission by
15 July each year at the latest, for the aid schemes covered
by the Integrated Administrative Control System, a report
covering the previous calendar year and,
in particular,
relating to the following points:

(a)

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

the options chosen for

Article 2

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 or premium
periods starting from 1 January 2008.

However, points (1)(b) and (5)(b) of Article 1 shall apply to aid
applications
starting from
relating to years or premiums
1 January 2007.

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

Done at Brussels, 20 August 2007.

For the Commission

Mariann FISCHER BOEL
Member of the Commission