Commission Regulation (EC) No 817/2004 (repealed)Dangos y teitl llawn

CHAPTER I U.K. RURAL DEVELOPMENT MEASURES

SECTION 1 U.K. Investments in agricultural holdings

Article 1 U.K.

The period of grace which the Member States may grant pursuant to Article 5(3) of Regulation (EC) No 1257/1999 in which to comply with newly introduced standards may not exceed 36 months from the date on which the standard becomes mandatory for the farmer. The end of the investment period referred to in Article 5(3) of Regulation (EC) No 1257/1999 shall fall within the period of grace as fixed in the first paragraph.

The period of grace as fixed in the first paragraph shall not apply to applications for support introduced before 7 May 2004.

Article 2 U.K.

1. For the purposes of Article 6 of Regulation (EC) No 1257/1999, the existence of normal market outlets shall be assessed at the appropriate level in terms of:

(a) the products concerned;

(b) the types of investment;

(c) existing and planned capacity.

2. Any restrictions on production or limitations on Community support under common market organisations shall be taken into account.

3. Where a common market organisation places restrictions on production or limitations on Community support at the level of individual farmers, holdings or processing plants, no investment shall be supported which would increase production beyond those restrictions or limitations.

Article 3 U.K.

Article 4(2) of this Regulation shall also apply to investments made by young farmers.

SECTION 2 U.K. Setting-up of young farmers

Article 4 U.K.

1. The conditions for start-up assistance for young farmers laid down in Article 8(1) of Regulation (EC) No 1257/1999 must be met at the time when the individual decision to grant support is taken.

2. A period not exceeding five years may be allowed after starting up in order to meet the requirements relating to occupational skill and competence, economic viability and minimum standards regarding the environment, hygiene and animal welfare, if the young farmer needs a period of adaptation in which to start up or to restructure the holding.

Article 5 U.K.

The individual decision to grant the aid provided for in Article 8 of Regulation (EC) No 1257/1999 shall be taken no later than 12 months after start-up as defined by the provisions in force in the Member States.

SECTION 3 U.K. Training

Article 6 U.K.

Support for vocational training shall not include courses of instruction or training which form part of normal programmes or systems of agricultural and forestry education at secondary or higher levels.

SECTION 4 U.K. Early retirement

Article 7 U.K.

Where a farm is transferred by several transferors, overall support shall be limited to the amount provided for one transferor.

Article 8 U.K.

Non-commercial farming activity continued by the transferor in accordance with the first indent of Article 11(1) of Regulation (EC) No 1257/1999 shall not be eligible for support under the common agricultural policy.

Article 9 U.K.

A tenant farmer may transfer the released land to the owner provided that the lease is terminated and the requirements relating to the transferee laid down in Article 11(2) of Regulation (EC) No 1257/1999 are complied with.

Article 10 U.K.

Released land may be included in a re-parcelling operation or in a simple exchange of parcels.

In such cases, the conditions applicable to released land shall be applied to areas agronomically equivalent to the released land.

Member States may make provision for released land to be taken in charge by a body which undertakes to reassign it at a later date to a transferee who satisfies the conditions laid down for early retirement.

SECTION 5 U.K. Less-favoured areas and areas with environmental restrictions

Article 11 U.K.

Compensatory allowances for areas used jointly by several farmers for the purpose of grazing animals may be granted to each farmer concerned in proportion to that farmer's use, or right of use, of the land.

SECTION 6 U.K. Meeting standards

Article 12 U.K.

The authorities and bodies selected to provide the farm advisory services referred to in Article 21d(2) of Regulation (EC) No 1257/1999 shall ensure the availability of appropriate resources in the form of qualified staff, administrative and technical facilities and advisory experience and reliability with respect to the statutory requirements referred to in Article 21d(1) of Regulation (EC) No 1257/1999.

SECTION 7 U.K. Agri-environment and animal welfare

Article 13 U.K.

Any commitment to extensify livestock farming or manage livestock farming differently shall comply with at least the following conditions:

(a)

grassland management shall continue;

(b)

the livestock shall be distributed across the farm in such a way that the whole of the grazed area is maintained, thus avoiding both over-grazing and under-utilisation;

(c)

livestock density shall be defined taking into account all grazing livestock kept on the farm or, in the case of a commitment to limit nutrient leaching, all animals kept on the farm which are relevant to the commitment in question.

Article 14 U.K.

1. Support may relate to the following commitments:

(a) to rear farm animals of local breeds indigenous to the area and in danger of being lost to farming;

(b) to preserve plant genetic resources naturally adapted to the local and regional conditions and under threat of genetic erosion.

2. The local breeds and plant genetic resources must play a role in maintaining the environment on the area to which the measure provided for in paragraph 1 applies.

The eligible species of farm animals and the criteria for determining the threshold of loss to farming of local breeds are defined in the table in Annex I to this Regulation.

Article 15 U.K.

For the purposes of the second subparagraph of Article 24(1) of Regulation (EC) No 1257/1999, capital works shall be considered to be non-remunerative provided that they do not normally lead to any significant net increase in the value or profitability of the farm.

Article 16 U.K.

Agri-environment commitments beyond the minimum period of five years referred to in Article 23(1) of Regulation (EC) No 1257/1999 shall not run for a longer period than is reasonably necessary for the achievement of their environmental effects. They shall normally be for no longer than 10 years, except in the case of specific commitments where a longer period is found to be indispensable.

Article 17 U.K.

Various agri-environment and/or animal welfare commitments may be combined provided that they are complementary and compatible.

Where agri-environment measures are thus combined, the level of support shall take account of income forgone and specific additional costs arising from the combination.

Article 18 U.K.

1. The reference level for calculating income forgone and additional costs resulting from the commitments given shall be the usual good farming practice in the area where the measure is applied.

The economic consequences of abandoning land or ceasing certain farming practices may be taken into account where this is justified by the agronomic or environmental circumstances.

2. Where commitments are normally expressed in units other than those used in Annex of Regulation (EC) No 1257/1999, Member States may calculate payments on the basis of these other units. In such cases, the Member States shall ensure that the maximum amounts per year eligible for Community support as set out in the Annex to Regulation (EC) No 1257/1999 are complied with. To this end the Member State may:

(a) set a limit on the number of units per hectare of the farm to which the agri-environment commitments applies;

or

(b) determine the overall maximum amount for each participating farm and ensure that the payments for each farm are compatible with this limit.

3. Payments may be based on limitations on the use of fertilisers, plant protection products or other inputs only if such limitations are technically and economically measurable.

Article 19 U.K.

Member States shall determine the need to provide an incentive as provided for in the third indent of the first subparagraph of Article 24(1) of Regulation (EC) No 1257/1999 on the basis of objective criteria.

Incentives may not exceed 20 % of the income forgone and additional costs due to the commitment given, except in the case of specific commitments where a higher rate is deemed to be indispensable for effective implementation of the measure.

Article 20 U.K.

A farmer who gives an agri-environment or animal welfare commitment relating to one part of a farm shall adhere to at least the standard of usual good farming practice throughout the farm.

Article 21 U.K.

1. Member States may authorise one commitment to be converted into another during the period of its operation, on condition that:

(a) any such conversion is of unquestionable benefit to the environment or to animal welfare;

(b) the existing commitment is significantly reinforced;

and

(c) the approved programme includes the commitments concerned.

An agri-environment commitment may be converted into a commitment for afforestation of agricultural land under Article 31 of Regulation (EC) No 1257/1999 subject to the conditions set out in points (a) and (b) of the first subparagraph of this paragraph. The agri-environment commitment shall cease without reimbursement being required.

2. Member States may allow agri-environment or animal welfare commitments to be adjusted during the period for which they apply, provided that the approved programme includes scope for such adjustment and that the adjustment is duly justified having regard to the objectives of the commitment.

[F1 3. Where agro-environmental commitments expire before the end of the programming period fixed in Article 42 of Regulation (EC) No 1257/1999, Member States may extend them provided that the last year of the commitment does not start later than 31 December 2006 .

The Member States may authorise adaptations to the areas of the holding covered by the commitment to take into account a transfer of a part of the beneficiary’s holding to another person during the extension period, provided that those adaptations do not reduce by more than 50 % the area covered by the commitment.]

Textual Amendments

F1 Inserted by Commission Regulation (EC) No 1360/2005 of 18 August 2005 amending Regulation (EC) No 817/2004 laying down detailed rules for the application of Council Regulation (EC) No 1257/1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF).

SECTION 8 U.K. Food quality

Subsection 1 U.K. Participation in food quality schemes

Article 22 U.K.

1. Assistance foreseen in Article 24b of Regulation (EC) No 1257/1999 may be granted to farmers participating in a quality scheme only if the agricultural product or foodstuff has been officially recognised under the Regulations listed in paragraph 2 of that Article or a national quality scheme as provided for in paragraph 3 of that Article.

2. Where a support under Article 24b of Regulation No 1257/1999 for participation in a food quality scheme under Council Regulation (EEC) No 2092/91(1) for a specific product is included in the rural development programming document, the fixed cost resulting from the participation in this quality scheme shall no more be taken into account in calculating the amount of support in the framework of an agri-environment measure to support organic farming for the same product.

For the purposes of Article 24c of Regulation (EC) No 1257/1999, ‘fixed costs’ means the costs incurred for entering a quality scheme and the annual contribution for participating in such a scheme, including, where necessary, expenditure on checks required to verify compliance with the specifications of the scheme.

Subsection 2 U.K. Promotion of quality products

Article 23 U.K.

For the purposes of Article 24d(1) of Regulation (EC) No 1257/1999, ‘producer group’ means any organisation, of whatever legal form, which brings together operators actively participating in a quality scheme covered by Article 24b of Regulation (EC) No 1257/1999 for a specific agricultural product or foodstuff.

Professional and/or inter-professional organisations representing one or more sectors cannot qualify as ‘producer groups’ in the sense of the first paragraph..

Article 24 U.K.

For the purposes of Article 24d(2) of Regulation (EC) No 1257/1999, the information, promotion and advertising activities eligible for support shall be activities designed to induce consumers to buy the agricultural products or foodstuffs covered by quality schemes included in the programming document under the measure ‘participation in food quality schemes’.

Such activities shall draw attention to the specific features or advantages of the products concerned, notably the quality, specific production methods, high animal welfare standards and respect for the environment linked to the quality scheme concerned, and may include the dissemination of scientific and technical knowledge about these products.

Such activities shall include, in particular, the organisation of, and/or participation in, fairs and exhibitions, similar public relations exercises and advertising via the different channels of communication or at the points of sale.

Article 25 U.K.

1. Only information, promotion and advertising activities on the internal market shall be eligible for support pursuant to Article 24d of Regulation (EC) No 1257/1999.

2. Activities pursuant to Article 24 may not concern commercial brands. They may not incite consumers to buy a product due to its particular origin, except for products covered by the quality scheme introduced by Council Regulation (EC) No 2081/92(2) and those covered by Council Regulation (EC) No 1493/1999 of 17 May 1999 on the common organisation of the market in wine(3).

The origin of a product may nevertheless be indicated provided the mention of the origin is subordinate to the main message.

3. Where activities covered by Article 24 of this Regulation concern a product included in a quality scheme provided for in Article 24b(2)(a), (b) or (c) of Regulation (EC) No 1257/1999, the Community logo provided for under those schemes shall appear on information, promotion and/or advertising material.

4. Information and promotion activities supported pursuant to Regulation (EC) No 2826/2000 shall not qualify for support pursuant to Article 24d of Regulation (EC) No 1257/1999.

Article 26 U.K.

The Member States shall ensure that all draft information, promotion, and advertising materials drawn up in the context of an activity benefiting from support in accordance with Article 24d of Regulation (EC) No 1257/1999 comply with Community legislation. To that end, beneficiaries shall transmit all such draft materials to the competent authority of the Member State.

SECTION 9 U.K. Improving the processing and marketing of agricultural products

Article 27 U.K.

Eligible expenditure may include:

(a)

the construction and acquisition of immovable property, with the exception of land purchase;

(b)

new machinery and equipment including computer software;

(c)

general costs, such as architects, engineers and consultants fees, feasibility studies, acquisition of patents and licences.

The costs referred to in point (c) of the first subparagraph shall be in addition to the costs referred to in (a) and (b) and shall be considered eligible expenditure up to a ceiling of 12 % of those costs. For the development of new technologies as referred to in Article 25(2), fourth indent, of Regulation (EC) No 1257/1999, the ceiling can be increased up to 25 %.

Article 28 U.K.

1. For the purposes of the second subparagraph of Article 26(1) of Regulation (EC) No 1257/1999, ‘small processing units’ means undertakings with fewer than 10 employees and an annual turnover or annual balance sheet total not exceeding EUR 2 million.

2. The period of grace which the Member States may grant under the second subparagraph of Article 26(1) of Regulation (EC) No 1257/1999 in which to comply with newly introduced minimum standards, may not exceed 36 months from the date on which the standard becomes mandatory for the small processing unit.

The end of the investment period referred to in the second subparagraph of Article 26(1) of Regulation (EC) No 1257/1999 shall fall within the period of grace as fixed in the second paragraph above.

Article 29 U.K.

1. For the purposes of Article 26(3) of Regulation (EC) No 1257/1999, the existence of normal market outlets shall be assessed at the appropriate level in relation to:

(a) the products concerned;

(b) the types of investment;

(c) existing and planned capacity.

2. Any restrictions on production or limitations on Community support under common market organisations shall be taken into account.

Article 30 U.K.

In the outermost regions, support may be granted for investment in the processing or marketing of products from third countries, provided that the processed products are intended for the market of the region in question.

For the purpose of compliance with the condition laid down in the first subparagraph, support shall be limited to processing capacity corresponding to regional needs, provided that such processing capacity does not exceed such needs.

SECTION 10 U.K. Forestry

Article 31 U.K.

The forests excluded from forestry support under Article 29(3) of Regulation (EC) No 1257/1999 shall be:

(a)

forest or other wooded land owned by central or regional governments, or by government-owned corporations;

(b)

forest and other wooded land owned by the crown;

(c)

forests owned by legal persons at least 50 % of whose capital is held by one of the institutions referred to in points (a) and (b).

Article 32 U.K.

Agricultural land eligible for support for afforestation pursuant to Article 31 of Regulation (EC) No 1257/1999 shall be specified by the Member State and shall include in particular arable land, grassland, permanent pastures and land used for perennial crops, where farming takes place on a regular basis

Article 33 U.K.

1. For the purposes of the second indent of the second subparagraph of Article 31(1) of Regulation (EC) No 1257/1999, ‘farmer’ means a person who devotes an essential part of his or her working time to agricultural activities and derives from them a significant part of his or her income according to detailed criteria to be determined by the Member State.

2. For the purposes of the second subparagraph of Article 31(3) of Regulation (EC) No 1257/1999, ‘fast-growing species cultivated in the short term’ means species with a rotation time, namely the period between two harvest cuts on the same parcel, of less than 15 years.

Article 34 U.K.

1. Support under Article 32 of Regulation (EC) No 1257/1999 may not be granted for areas for which support has been granted pursuant to Article 31 of that Regulation.

2. Payments for maintaining fire-breaks through agricultural measures under the second indent of Article 32(1) of Regulation (EC) No 1257/1999 may not be granted for areas benefiting from agri-environment support.

Such payments shall be consistent with any restrictions on production or limitations on Community support under common market organisations and shall take account of payments made under those common market organisations.

SECTION 11 U.K. Rules common to several measures

Article 35 U.K.

1. For the purposes of the third indent of Article 14(2) and the first subparagraph of Article 23(2) of Regulation (EC) No 1257/1999, ‘usual good farming practice’, means the standard of farming which a reasonable farmer would follow in the region concerned.

The Member States shall define verifiable standards in their rural development plans. These standards shall at least entail compliance with general mandatory environmental requirements. Concerning the support for animal welfare according to Article 22, second subparagraph, point (f) of Regulation (EC) No 1257/1999, these standards comprise at least the mandatory requirements in this area.

2. Where a Member States grants a period for the compliance with a new standard as referred to Article 1 of this Regulation or a period for the compliance of young farmers with the minimum standards referred to in Article 4, second subparagraph, of this Regulation, the farmers remains eligible for the compensatory allowances referred to in Chapter V of Regulation (EC) No 1257/1999 and/or for agri-environment or animal welfare support referred to in Chapter VI of that Regulation during this period provided the other conditions for granting these supports are met and provided that the farmer complies with the standards concerned at the end of the period.

Article 36 U.K.

[F2 Where all or part of a holding of the beneficiary is transferred to another person during the period for which a commitment given as a condition for the grant of assistance runs that other person may take over the commitment for the remainder of the period. If the commitment is not taken over, the beneficiary shall reimburse the assistance granted.

Member States, applying the principle of proportionality, may choose not to require such reimbursement in the following cases:

(a)

if a beneficiary who has already honoured a significant part of the commitment concerned definitively ceases agricultural activities and it is not feasible for a successor to take over the commitment;

(b)

if the transfer of a part of the holding of a beneficiary occurs during a period of extension of the commitment in accordance with Article 21(3) and if the transfer does not exceed 50 % of the area covered by the commitment before the extension.]

In the event of minor changes to the situation of a holding, Member States may take specific measures to ensure that application of the first subparagraph does not lead to inappropriate results in terms of the commitment entered into.

Textual Amendments

F2 Substituted by Commission Regulation (EC) No 1360/2005 of 18 August 2005 amending Regulation (EC) No 817/2004 laying down detailed rules for the application of Council Regulation (EC) No 1257/1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF).

Article 37 U.K.

1. When a beneficiary increases the area of the holding during the period for which a commitment given as a condition for the grant of assistance runs, Member States may provide for the commitment to be extended to cover the additional area for the remainder of the period of the commitment in accordance with paragraph 2, or for the original commitment to be replaced by a new one in accordance with paragraph 3.

Provision may also be made for such replacement in cases where the area covered by a commitment within a holding is extended.

2. The extension referred to in paragraph 1 may be granted only under the following conditions:

(a) it is of unquestionable benefit to the measure concerned;

(b) it is justified in terms of the nature of the commitment, the length of the remaining period and the size of the additional area;

(c) it does not impede the effectiveness of checks to ensure compliance with the conditions for the grant of assistance.

The size of the additional area referred to in (b) must be significantly less than the original area or not more than two hectares.

3. The new commitment referred to in paragraph 1 shall cover the whole area concerned under terms at least as strict as those of the original commitment.

Article 38 U.K.

Where a beneficiary is unable to continue to comply with commitments given because the holding is reparcelled or is the subject of other similar public land-consolidation measures, Member States shall take the measures necessary to allow the commitments to be adapted to the new situation of the holding. If such adaptation proves impossible, the commitment shall expire and reimbursement shall not be required in respect of the period in which the commitment was effective.

Article 39 U.K.

1. Without prejudice to the actual circumstances to be taken into consideration in individual cases, Member States may recognise, in particular, the following categories of force majeure:

(a) death of the farmer;

(b) long-term professional incapacity of the farmer;

(c) expropriation of a large part of the holding if this could not have been anticipated on the day on which the commitment was given;

(d) a severe natural disaster seriously affecting the agricultural land on the holding;

(e) the accidental destruction of livestock buildings on the holding;

(f) an epizootic disease affecting all or part of the farmer's livestock.

Member States shall notify the Commission of categories which they recognise as force majeure.

2. Cases of force majeure shall be notified in writing to the competent authority, together with relevant evidence to the satisfaction of that authority, within 10 working days of the date on which the farmer is in a position to do so. That deadline may be extended by 20 working days so long as that possibility is provided for in the programming document.

CHAPTER II U.K. GENERAL RULES AND ADMINISTRATIVE AND FINANCIAL PROVISIONS

SECTION 1 U.K. General rules

Article 40 U.K.

For the purposes of the second subparagraph of Article 37(3) of Regulation (EC) No 1257/1999, Articles 41, 42 and 43 of this Regulation shall apply.

Article 41 U.K.

1. Environmental measures implemented under common market organisations, agricultural quality and health measures, and rural development measures other than agri-environment support shall not preclude agri-environment support for the same production, provided that such support is additional and consistent with the measures concerned and without prejudice to paragraph 3.

2. Where support is combined in accordance with paragraph 1, the level of assistance shall take account of income forgone and specific additional costs arising from the combination.

3. Agri-environment measures on land set aside under Article 6 of Council Regulation (EC) No 1251/1999(4) shall qualify for support only if the commitments go beyond the appropriate environmental measures referred to in Article 6(2) of that Regulation.

From 1 January 2005, new agri-environment measures on land set aside under Article 54 or Article 107 of Regulation (EC) No 1782/2003 shall qualify for support only if the commitments go beyond the basic requirements laid down in Article 3(1) of that Regulation.

In the case of extensification of beef production, support shall take account of the extensification payment under Article 13 of Council Regulation (EC) No 1254/1999(5).

In the case of support for less-favoured areas and areas with environmental restrictions, agri-environment commitments shall take account of the conditions laid down for support in the areas concerned.

Article 42 U.K.

Under no circumstances may the same commitment be the subject of payments simultaneously under agri-environment support and another Community aid scheme.

Article 43 U.K.

The Member States must propose any exceptions under the first indent of the second subparagraph of Article 37(3) of Regulation (EC) No 1257/1999 in their rural development plans or programming documents presented for Objectives 1 and 2 as provided for in Article 18(1) and (2) or Article 19(1), (2) and (3) of Regulation (EC) No 1260/1999.

Article 44 U.K.

Payments under rural development measures shall be made in full to the beneficiaries.

Article 45 U.K.

Regulation (EC) No 1685/2000 shall apply to measures included in the programming referred to in Article 40(2) and (3) of Regulation (EC) No 1257/1999, except where otherwise provided in Regulations (EC) No 1257/1999 and (EC) No 1258/1999 and this Regulation.

Article 46 U.K.

1. Member States applying standard unit costs for establishing the cost of certain forestry investments under the first, second and sixth indents of Article 30(1) and under Article 31 of Regulation (EC) No 1257/1999 may exempt beneficiaries from the requirement to present receipted invoices or accounting documents of equivalent probative value for the investments concerned as provided for in point 2 of Rule 1 of the Annex to Regulation (EC) No 1685/2000.

2. The costs referred to in paragraph 1 may be applied provided the following conditions are fulfilled:

(a) the costs are calculated by the competent public authorities on the basis of objective criteria permitting determination of the cost of individual activities, taking account of specific local conditions and avoiding any overcompensation;

(b) the part-financed investments are made between the date the aid application is submitted and the date final payment of that aid is made.

SECTION 2 U.K. Programming

Article 47 U.K.

The rural development plans under Chapter II of Title III of Regulation (EC) No 1257/1999 shall be submitted in accordance with Annex II to this Regulation.

Article 48 U.K.

1. The approval of programming documents referred to in Article 44(2) of Regulation (EC) No 1257/1999 shall determine the overall amount of Community support. If Member States opt for regionalised rural development programming, that overall amount may be the subject of a separate decision containing a consolidated financial table for all the rural development programmes of the Member State concerned.

That amount referred to in the first subparagraph shall include:

(a) expenditure on measures presented under the new rural development programming, including expenditure on evaluation under Article 49(2) of Regulation (EC) No 1257/1999;

(b) expenditure incurred under earlier accompanying measures covered by Council Regulations (EEC) No 2078/92(6), (EEC) No 2079/92(7) and (EEC) No 2080/92(8) and under the measures covered by the earlier Regulations repealed by the above Regulations;

(c) expenditure incurred on measures under Article 4 of Regulation (EC) No 2603/1999.

2. Approval shall also cover the allocation and use of amounts remaining available to the Member States as additional Community support under Article 5 of Regulation (EC) No 1259/1999. If a separate decision as referred to in the first subparagraph of paragraph 1 is adopted, these amounts shall appear in the financial table annexed to this decision.

However, those amounts shall not be included in the overall amount of Community support referred to in paragraph 1.

3. Approval may cover State aid intended to provide additional financing to rural development measures only if the State aid is identified in accordance with point 16 of Annex II.

Article 49 U.K.

Member States shall make rural development programming documents available to the public.

Article 50 U.K.

Where rural development measures are submitted in the form of general framework regulations, rural development plans shall make appropriate reference to such regulations.

Articles 47, 48 and 49 shall also apply in the case referred to in the first paragraph.

Article 51 U.K.

1. Amendments to rural development programming documents and rural development measures included in single programming documents under Objective 2 financed by the EAGGF Guarantee Section shall be duly substantiated, in particular giving the following information:

(a) the reasons and any implementation problems justifying adjustment of the programming document;

(b) the expected effects of the amendment;

(c) the implications for financing and verification of commitments.

2. Acting in accordance with the procedures referred to in Articles 50(2) and 48(3) of Regulation (EC) No 1260/1999, the Commission shall approve any amendments to rural development programming documents, financial table annexed to the decision referred to in the first subparagraph of Article 48(1) and rural development measures included in single programming documents under Objective 2 financed by the EAGGF Guarantee Section whenever they have a bearing on:

(a) priorities;

(b) the main features of the support measures as indicated in Annex II;

(c) the overall maximum amount of Community support and/or the overall minimum total eligible cost or eligible public expenditure fixed in the decision approving the programming document or in the decision referred to in the first subparagraph of Article 48(1);

(d) the distribution of the financial allocation made for the measures contained in the programming document, where it exceeds:

• (d) 15 % of the total eligible cost of the programme concerned for the entire programming period, if the Community contribution is based on the total eligible cost,

• 20 % of the total eligible public expenditure for the programme concerned for the entire programming period, if the Community contribution is based on the eligible public expenditure,

calculated on the basis of the last column (total) of the financial table annexed to the Commission Decision approving the programming document or annexed to the decision referred to in the first subparagraph of Article 48(1), as last amended.

3. The amendments referred to in paragraph 2 shall be submitted to the Commission in a single proposal per programme no more than once per calendar year.

The first subparagraph shall not apply:

(a) where amendments are required as a result of a natural disaster or other exceptional occurrence with a major impact on the Member State's programming;

(b) where an amendment of the financial table annexed to the decision referred to in Article 48(1) is necessary as a result of an amendment of a regional rural development programming document.

4. Amendments of a financial nature which are not covered by paragraph 2(d) and amendments to the Community contribution rate as referred to in the first indent of point 9(2) B of Annex II shall be communicated to the Commission together with the financial table amended in accordance with point 8 of Annex II. They shall enter into force on the date on which they are received by the Commission.

Amendments of a financial nature as referred to in the first subparagraph may not exceed the ceilings provided for in paragraph 2(d) when totalled over a calendar year.

5. Amendments other than those covered in paragraphs 2 and 4 shall be communicated to the Commission at least three months before their entry into force.

Such amendments may enter into force earlier if the Commission confirms to the Member State before the end of the three-month period that the notified amendments comply with Community legislation.

If the notified amendment does not comply with Community legislation, the Commission shall inform the Member State thereof and the three-month period provided for in the first subparagraph shall be suspended until the Commission receives a compliant amendment.

Article 52 U.K.

Where Community legislation is amended, rural development programming documents and single programming documents under Objective 2 shall be revised in line with those amendments if necessary.

Article 51(3) shall not apply to such revisions.

Such amendments to rural development programming documents or single programming documents under Objective 2 which are limited to bringing the document into line with new Community legislation shall be sent to the Commission for information.

Article 53 U.K.

Member States shall make available to the Commission a consolidated electronic version of their programming documents, updated following each amendment. They shall provide the Commission with the electronic address at which the consolidated versions of programming documents can be consulted and shall inform it each time they are updated.

Furthermore, Member States shall keep an electronic version of all the previous versions of their programming documents.

SECTION 3 U.K. Additional measures and community initiatives

Article 54 U.K.

The scope of assistance from the EAGGF Guidance Section is extended to the whole Community in the case of measures under the rural development Community initiative and its financing extended to measures eligible under European Parliament and Council Regulations (EC) No 1783/1999(9) and (EC) No1784/1999(10).

SECTION 4 U.K. Financial provisions

Article 55 U.K.

1. No later than 30 September each year, the Member States shall forward the following information to the Commission, for each rural development programming document and each single programming document under Objective 2 as regards rural development measures financed by the EAGGF Guarantee Section:

(a) a statement of expenditure incurred in the current financial year and expenditure remaining to be disbursed by the end of that year and covered by Community support as defined in Article 48(1),

and

(b) revised forecasts of such expenditure for subsequent financial years until the end of the programming period concerned, keeping within the allocation for each Member State.

This information shall be transmitted in table format using a computerised model supplied by the Commission.

2. Without prejudice to the general rules on budgetary discipline, where the information which Member States are required to transmit to the Commission under paragraph 1 is incomplete or the time limit has not been met, the Commission shall reduce advances on entry in the accounts of agricultural expenditure on a temporary and flat-rate basis.

Article 56 U.K.

1. For the month during which the decision is adopted approving a rural development programming document or a single programming document under Objective 2 as regards rural development measures financed by the EAGGF Guarantee Section, the paying agencies may enter in the accounts as expenditure an advance not exceeding 12,5 % of the average annual EAGGF contribution provided for in the programming document, covering the expenditure referred to in Article 48(1).

This advance shall represent working capital which shall be recovered for each programming document:

(a) once the aggregate sum of the expenditure paid out by the EAGGF and the amount of the advance is equal to the total EAGGF contribution provided for in the programming document,

or

(b) at the end of the programming period, if the total amount of the EAGGF contribution is not reached.

However, Member States may decide to pay the advance back before the end of the programming period.

2. For countries whose currency is not the euro on the date of such entry, advances under paragraph 1 shall be entered in the accounts using the rate of exchange prevailing on the penultimate Commission working day of the month preceding that in which the paying agencies enter the advance in the accounts.

Article 57 U.K.

1. For each Member State, expenditure declared for any given financial year shall be financed up to the limit of the amounts notified to the Commission under point (b) of the first subparagraph of Article 55(1) which are covered by the appropriations entered in the budget for the financial year concerned.

2. Where the total amount of the forecasts notified under point (b) of the first subparagraph of Article 55(1) exceeds the total appropriations entered in the budget for the financial year concerned, the maximum amount of expenditure to be financed for each Member State shall be limited using the formula used to establish the corresponding annual allocation as defined in Decision 1999/659/EC.

If, after this reduction, appropriations remain available because some Member States have made forecasts which are below their annual allocation, the surplus amount shall be distributed in proportion to the Member States respective annual allocations while ensuring that the amount forecast for each Member State as referred to in the first subparagraph is not exceeded. The Commission shall adapt the initial allocations per Member State fixed by Decision 1999/659/EC within two months of the adoption of the budget for the financial year concerned. Within six weeks following that adaptation the Member States shall communicate to the Commission, for each rural development programme and single programming document for Objective 2 as regard rural development measures financed by the EAGGF-Guarantee Section, a new financial table complying with the adjusted forecasts for the financial year concerned and the allocations fixed by Decision 1999/659/EC as modified.

For 2004, the communication of the new financial table referred to in the second subparagraph should be done within eight weeks following the entry into force of the present Regulation.

3. Where expenditure actually incurred by a Member State in any given financial year exceeds the amounts notified under point (b) of the first subparagraph of Article 55 (1) or the amounts resulting from the application of paragraph 2 of this Article, the overruns on expenditure in the current financial year shall be taken into account on a pro rata basis, up to the limit of the appropriations remaining available after reimbursing to the other Member States the expenditure incurred.

4. Where expenditure actually incurred by a Member State in a given financial year is less than 75 % of the amounts referred to in paragraph 1, the expenditure to be recognised for the following financial year shall be reduced by a third of the difference between this threshold, or the amounts resulting from the application of paragraph 2 if they are below it, and the actual expenditure incurred during the financial year concerned.

This reduction shall not be taken into account when establishing actual expenditure in the financial year following that in which the reduction was made.

Article 58 U.K.

Articles 55, 56, and 57 of this Regulation shall not apply to expenditure incurred under Article 5 of Regulation (EC) No 1259/1999.

Article 59 U.K.

The Community shall contribute to financing evaluations in the Member States under Article 49(2) of Regulation (EC) No 1257/1999 where such evaluations actually contribute to evaluation at Community level by virtue of their scope, particularly through their replies to common evaluation questions and their quality.

The Community contribution shall not exceed 50 % of a ceiling which, except in duly justified cases, shall be 1 % of the total cost of the rural development programme.

Article 60 U.K.

1. Beneficiaries of investment support measures under Chapters I, VII, VIII and IX of Title II of Regulation (EC) No 1257/1999 may request the payment of an advance from the competent paying agencies if this option is included in the programming document. As regards public beneficiaries, this advance may be granted only to municipalities and associations thereof and to public law bodies.

2. The amount of the advance shall not exceed 20 % of the total cost of the investment, and its payment shall be subject to the establishment of a bank guarantee or an equivalent guarantee corresponding to 110 % of the amount of the advance.

However, in the case of the public beneficiaries referred to in paragraph 1, the paying agency may accept a written guarantee from their authority, in accordance with provisions applied in the Member States, covering an amount equal to the percentage specified in the first subparagraph, provided that the authority undertakes to pay the amount covered by its guarantee should entitlement to the advance paid not be established.

3. The guarantee shall be released once the competent agency notes that the amount of real expenditure resulting from the investment exceeds the amount of the advance.

4. Paying agencies shall declare to the EAGGF Guarantee Section the amount corresponding to the Community part-financing:

(a) of the advance paid;

(b) of the actual expenditure subsequently paid to beneficiaries, minus the amount of the advance already paid.

SECTION 5 U.K. Monitoring and evaluation

Article 61 U.K.

1. The annual progress reports provided for in Article 48(2) of Regulation (EC) No 1257/1999 shall be submitted to the Commission by 30 June of each year and shall relate to the previous calendar year.

Progress reports shall contain the following information:

(a) any change in the general conditions which is of relevance to the implementation of the measure, and in particular any major socioeconomic trends or changes in national, regional or sectoral policies;

(b) the progress of measures and priorities in relation to their operational and specific objectives, expressed using quantitative indicators;

(c) action taken by the management authority and the Monitoring Committee, if provision has been made for such a committee, to ensure high quality and effective implementation, and in particular:

(i)

monitoring measures, financial control and evaluation, including data collection procedures;

(ii)

a summary of the major problems encountered in managing the measure and any steps taken;

(d) measures taken to ensure compatibility with Community policies.

2. The indicators referred to in point (b) of the second subparagraph of paragraph 1 shall follow, as far as possible, the common indicators defined in the guidelines drawn up by the Commission. Where additional indicators are needed to effectively monitor progress towards the objectives in the rural development programming documents, these shall be included.

Article 62 U.K.

1. Evaluations shall be performed by independent evaluators in accordance with recognised practice.

2. Evaluations shall provide answers, in particular to common evaluation questions defined by the Commission in consultation with the Member States and shall, as a general rule, be accompanied by performance-related criteria and indicators.

3. The authority responsible for managing the rural development programming document shall assemble the appropriate resources for evaluations, making use of monitoring results and gathering additional information where necessary.

Article 63 U.K.

1. Ex ante evaluation shall analyse the disparities, gaps and potentials of the current situation, assess the consistency of the proposed strategy with the situation and targets and consider the issues raised in the common evaluation questions. It shall assess the expected impact of the selected priorities for action and quantify their targets where possible. It shall also verify the proposed implementing arrangements and consistency with the common agricultural policy and other policies.

2. Ex ante evaluation shall be the responsibility of the authorities preparing the rural development plan and shall form part of it.

Article 64 U.K.

1. Mid-term and ex post evaluation shall deal with the specific issues arising in the rural development programming document concerned and with common evaluation questions relevant at Community level. These shall relate to the living conditions and structure of the rural population, employment and income from farm and off-farm activities, agricultural structures, agricultural commodities, quality, competitiveness, forest resources and the environment.

If a common evaluation question is not considered relevant to a particular rural development programming document, this shall be substantiated.

2. Mid-term evaluation shall deal with the evaluation questions and shall examine in particular the initial achievements, their relevance to and consistency with the rural development programming document and the extent to which the targets have been attained. It shall also assess the use made of financial resources and the operation of monitoring and implementation.

Ex post evaluation shall answer the evaluation questions, paying particular attention to the use made of resources and the effectiveness and efficiency of assistance and its impact and shall draw conclusions concerning rural development policy, including its contribution to the common agricultural policy.

3. Mid-term and ex post evaluation shall be performed in consultation with the Commission under the responsibility of the authority in charge of managing rural development programming.

4. The quality of individual evaluations shall be assessed using recognised methods by the authority in charge of managing the rural development programming document, the Monitoring Committee, if any, and the Commission. The results of the evaluations shall be made available to the public.

Article 65 U.K.

1. A mid-term evaluation report shall be transmitted to the Commission not later than 31 December 2003. The authority responsible for managing the rural development programming document shall inform the Commission on the follow-up to the recommendations in the evaluation report. The Commission shall prepare a Community-level summary upon receipt of the individual evaluation reports. Where necessary, an update of the mid-term evaluation shall be completed by 31 December 2005.

2. An ex post evaluation report shall be transmitted to the Commission not later than two years after the end of the programming period. Within three years of the end of the programming period and upon receipt of the individual evaluation reports the Commission shall prepare a Community-level summary.

3. The evaluation reports shall explain the methods used, including their implications for the quality of the data and the findings. Reports shall include a description of the context and contents of the programme, financial information and the answers — including the indicators used — to the common evaluation questions and the evaluation questions defined at national or regional level, as well as conclusions and recommendations. Their structure shall follow, as far as possible, a common structure for evaluation reports defined in guidelines drawn up by the Commission.

SECTION 6 U.K. Applications, checks and penalties

Article 66 U.K.

1. Applications for rural development support for areas or animals which are lodged separately from aid applications under Article 6 of Regulation (EC) No 2419/2001 shall indicate all the areas and animals on the holding which are relevant for checking the applications under the measure in question, including those for which no support is requested.

2. Where a rural development support measure relates to areas, parcels shall be identified individually. During the period covered by a commitment, parcels receiving support may not be exchanged except in cases specifically provided for in the programming document.

3. Where an application for payment is included with an application for an area payment in the context of the integrated administration and control system, the Member State shall ensure that parcels covered by applications for rural development support are declared separately.

4. Animals and plots of land shall be identified in accordance with Articles 18 and 20 of Regulation (EEC) No 1782/2003.

5. Where support is multiannual, payments subsequent to that made in the year an application was submitted shall be made in response to an annual application for payment, except where the Member State has introduced an effective annual verification procedure as referred to in Article 66(1).

Article 67 U.K.

1. Initial applications to join a scheme and subsequent applications for payment shall be checked in a manner which ensures effective verification of compliance with the conditions for granting support.

The Member States shall define suitable methods and means for verifying each support measure as well as the persons who shall be subject to checks.

Wherever appropriate, Member States shall make use of the integrated administration and control system introduced by Regulation (EC) No 1782/2003.

2. Verification shall consist of administrative and on-the-spot checks.

Article 68 U.K.

Administrative checks shall be exhaustive and shall include cross-checks wherever appropriate, inter alia with data from the integrated administration and control system. They shall relate to parcels and livestock covered by a support measure in order to avoid all unjustified payments of aid. Compliance with long-term commitments shall also be checked.

Article 69 U.K.

On-the-spot checks shall be made in accordance with Title III of Regulation (EC) No 2419/2001. They shall cover at least 5 % of beneficiaries each year and all the different types of rural development measures set out in the programming documents. As regards the measure ‘early retirement’ referred to in Chapter IV of Regulation (EC) No 1257/1999 and the measure ‘afforestation of agricultural land’ referred to in Article 31 of that Regulation, this rate can be reduced down to 2,5 % from the sixth year of support for these measures onwards, without increasing the control rate for the other measures.

On-the-spot checks shall be spread over the year on the basis of an analysis of the risks presented by each rural development measure. For investment support measures under Chapters I, VII, VIII and IX of Title II of Regulation (EC) No 1257/1999, Member States may provide that on-the-spot checks concern only those projects in the process of completion.

Checks shall cover all the commitments and obligations of a beneficiary which can be checked at the time of the visit.

Article 70 U.K.

Articles 30 and 31 and Article 32(1) of Regulation (EC) No 2419/2001 shall apply to area payments. Those provisions shall not apply to support under forestry measures other than afforestation of agricultural land.

Articles 36, 38 and 40 of that Regulation shall apply to support based on livestock.

Article 71 U.K.

1. Article 44 of Regulation (EC) No 2419/2001 shall apply to support granted to all rural development measures.

2. In the event of undue payment, the beneficiary under a rural development measure shall be under an obligation to repay the amount concerned in accordance with Article 49 of Regulation (EC) No 2419/2001.

Article 72 U.K.

1. Any beneficiary found to have made a false declaration as a result of serious negligence shall be excluded from all rural development measures under the relevant chapter of Regulation (EC) No 1257/1999 for the calendar year in question.

Where a false declaration was made intentionally, the beneficiary shall be excluded for the following year as well.

2. The penalties provided for in paragraph 1 shall apply without prejudice to additional penalties provided for under national rules.

Article 73 U.K.

Member States shall lay down the rules on penalties applicable to infringements of the provisions of this Regulation and shall take all measures necessary to ensure that they are implemented. The penalties provided for must be effective, proportionate and dissuasive.

CHAPTER III U.K. FINAL PROVISIONS

Article 74 U.K.

1. Regulation (EC) No 445/2002 is hereby repealed.

Article 65(2) of Regulation (EC) No 445/2002 shall continue to apply.

2. References to the repealed Regulation shall be construed as references to this Regulation and shall be read in accordance with the correlation table in Annex III.

Article 75 U.K.

This Regulation shall enter into force on the seventh day following its publication in the Official Journal of the European Union.

Article 46 shall apply from 1 January 2000.

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