Commission Regulation (EC) No 1975/2006 (repealed)Dangos y teitl llawn

CHAPTER II U.K. Controls, reductions and exclusions

Article 10 U.K. General principles

1. Applications for support and subsequent payment claims shall be checked in a manner which ensures effective verification of compliance with the conditions for granting support.

2. The Member States shall define suitable methods and means for verifying the conditions for granting support for each support measure.

3. Member States shall make use of the integrated administration and control system provided for in Chapter 4 of Title II of Regulation (EC) No 1782/2003 (hereinafter referred to as ‘IACS’).

4. Verification of the eligibility criteria shall consist of administrative and on-the-spot checks.

5. Respect of cross-compliance shall be verified through on-the-spot checks and where appropriate through administrative checks.

6. During the period covered by a commitment, parcels for which support is being granted may not be exchanged except in cases specifically provided for in the rural development programme.

SECTION I U.K. Respect of the eligibility criteria

SUBSECTION I U.K. Controls

Article 11 U.K. Administrative checks

1. Administrative checks shall be undertaken on all applications for support and payment claims, and shall cover all elements that it is possible and appropriate to control by administrative means. The procedures shall ensure the recording of control work undertaken, the results of the verification and the measures taken in respect of discrepancies.

2. The administrative checks shall include cross-checks wherever possible and appropriate, inter alia with data from the IACS. These cross-checks shall relate at least to parcels and livestock covered by a support measure in order to avoid any undue payments of aid.

3. Compliance with long-term commitments shall be checked.

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

5. Where applicable, administrative checks on eligibility shall take into account the results of verifications carried out by other services, bodies or organisations involved in controls of agricultural subsidies.

Article 12 U.K. On-the-spot checks

1. The total number of on-the-spot checks carried out each year shall cover at least 5 % of all beneficiaries subject to a commitment under one or more of the measures falling within the scope of this Title.

However, applicants found not to be eligible after administrative checks shall not form part of the overall number of beneficiaries referred to in the first subparagraph.

2. Article 26(3) and (4) of Regulation (EC) No 796/2004 shall apply to on-the-spot checks provided for in this Article.

3. The control sample referred to in the first subparagraph of paragraph 1 shall be selected in accordance with the criteria set out in Article 27 of Regulation (EC) No 796/2004.

4. For any multiannual measures involving payments exceeding five years, the Member States may decide to halve the rate of control provided for in paragraph 1 after the fifth year of payment for a beneficiary.

Beneficiaries in respect of which the Member State makes use of the possibility set out in the first subparagraph of this paragraph shall not form part of the overall number of beneficiaries referred to in the first subparagraph of paragraph 1.

Article 13 U.K. Control report

On-the-spot checks under this Subsection shall be the subject of a control report to be established in accordance with Article 28 of Regulation (EC) No 796/2004.

Article 14 U.K. General principles concerning on-the-spot checks

1. On-the-spot checks shall be spread over the year on the basis of an analysis of the risks presented by the different commitments under each rural development measure.

2. On-the-spot checks shall cover all the commitments and obligations of a beneficiary which can be checked at the time of the visit.

Article 15 U.K. Elements of the on-the-spot checks and determination of areas

1. The Member States shall determine criteria and control methods that allow the controls of the different commitments and obligations of the beneficiary to satisfy the requirements of Article 48(1) of Commission Regulation (EC) No 1974/2006(1).

2. With regard to controls on area-related measures, the on-the-spot checks shall be carried out in accordance with Articles 29, 30 and 32 of Regulation (EC) No 796/2004.

However, for the measures set out in Articles 36(b)(iii), (iv) and (v) of Regulation (EC) No 1698/2005, the Member States may define appropriate tolerances, which shall in no case be greater than twice the tolerances set down in Article 30(1) of Regulation (EC) No 796/2004.

3. With regard to controls on animal-related measures, the on-the-spot checks shall be carried out in accordance with Article 35 of Regulation (EC) No 796/2004.

SUBSECTION II U.K. Reductions and exclusions

Article 16 U.K. Area-related measures

1. The basis for the calculation of the aid in respect of area-related measures shall be established in accordance with Article 50(1), (3) and (7) of Regulation (EC) No 796/2004. For the purpose of this Article, the areas declared by a beneficiary which receive the same rate of aid shall be considered as forming one crop group.

2. If the area declared for payment under an area-related measure exceeds the area determined in accordance with Article 50(3) of Regulation (EC) No 796/2004, the aid shall be calculated on the basis of the area determined reduced by twice the difference found if that difference is more than either 3 % or two hectares, but no more than 20 % of the area determined.

If the difference is more than 20 % of the area determined, no aid shall be granted for the area-related measure concerned.

3. If the area declared exceeds the area determined in accordance with Article 50(3) of Regulation (EC) No 796/2004 by more than 30 %, the beneficiary shall be excluded from receiving the aid he would have been entitled to pursuant to that Article for the calendar year in question for the measures concerned.

If the difference is more than 50 %, the beneficiary shall be additionally excluded from receiving aid up to an amount equal to the amount which corresponds to the difference between the area declared and the area determined in accordance with Article 50(3) of Regulation (EC) No 796/2004.

4. By way of derogation from paragraphs 2 and the first subparagraph of paragraph 3, for beneficiaries in Member States applying the single area payment scheme as provided for in Article 143b of Regulation (EC) No 1782/2003, the reductions and exclusions to be applied shall be calculated in accordance with the first and second subparagraphs of Article 138(1) of Commission Regulation (EC) No 1973/2004(2).

5. Where differences between the area declared and the area determined in accordance with Article 50(3) of Regulation (EC) No 796/2004 result from irregularities committed intentionally, the beneficiary shall be excluded from the aid he would have been entitled to pursuant to that Article for the EAFRD year in question for the area-related measure concerned.

6. The amount resulting from the exclusions provided for in the second subparagraph of paragraph 3 and in paragraph 5 shall be off-set against aid payments under any of the support measures under Regulation (EC) No 1698/2005 or Regulation (EC) No 1782/2003 to which the beneficiary concerned is entitled in the context of applications he lodges in the course of the three calendar years following the calendar year of the finding. If the amount cannot be fully off-set against those payments, the outstanding balance shall be cancelled.

Article 17 U.K. Animal-related measures

1. The basis for the calculation of the aid in respect of animal-related measures shall be established in accordance with Article 57(2), (3) and (4) of Regulation (EC) No 796/2004.

2. Any reductions or exclusions to be applied in the case of overdeclaration of bovine animals or of ovine or caprine animals respectively shall be calculated in accordance with Article 59 of Regulation (EC) No 796/2004.

Support measures in relation to bovine animals and those relating to ovine or caprine animals shall be treated separately.

3. By way of derogation from the second subparagraph of Article 59(2) and the second subparagraph of Article 59(4) of Regulation (EC) No 796/2004, the amount resulting from the exclusion shall be off-set against aid payments under any of the support measures under Regulation (EC) No 1698/2005 to which the beneficiary concerned is entitled in the context of applications he lodges in the course of the three calendar years following the calendar year of the finding. If the amount cannot be fully off-set against those payments, the outstanding balance shall be cancelled.

4. In respect of overdeclarations concerning animals other than those referred to in paragraph 2, the Member State shall fix an appropriate system of reductions and exclusions.

Article 18 U.K. Reductions and exclusions in the case of non-respect of eligibility criteria

1. In case any of the commitments attached to the granting of the aid, other than those related to the size of area or number of animals declared, are not respected, the aid claimed shall be reduced or refused.

2. The Member State shall determine the amount of the reduction of the aid, in particular, on the basis of the severity, extent and permanence of the non-respect found.

The severity of a non-respect shall depend, in particular, on the importance of the consequences of the non-respect taking into account the objectives pursued by the criteria which have not been respected.

The extent of a non-respect shall depend, in particular, on the effect of the non-respect on the operation as a whole.

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

3. In case the non-respect results from irregularities committed intentionally, the beneficiary shall be excluded from the measure in question for the EAFRD year concerned as well as for the following EAFRD year.

4. The reductions and exclusions provided for in this Article shall apply without prejudice to any additional penalties provided for under national rules.

SECTION II U.K. Respect of cross-compliance

SUBSECTION I U.K. Controls

Article 19 U.K. General principles

1. Without prejudice to Article 51(3) of Regulation (EC) No 1698/2005, ‘Cross-compliance’ shall mean the mandatory requirements referred to in the first subparagraph of Article 51(1) of that Regulation and the minimum requirements for fertiliser and plant protection product use referred to in the second subparagraph of Article 51(1) of that Regulation.

2. Articles 3(2) and 25 of Regulation (EC) No 1782/2003 and Article 2(2), (2a) and (31) to (36) as well as Articles 9, 41, 42, 43, 46, 47 and 48 of Regulation (EC) No 796/2004 shall apply with regard to controls on the respect of cross-compliance.

Article 20 U.K. On-the-spot checks

1. The competent control authority shall, with regard to the requirements or standards for which it is responsible, carry out on-the-spot checks on at least 1 % of all beneficiaries submitting payment claims under Article 36(a)(i) to (v) and (b)(i), (iv) and (v) of Regulation (EC) No 1698/2005.

2. The second subparagraph of Article 44(1) and Article 44(2) of Regulation (EC) No 796/2004 shall apply.

Article 21 U.K. Selection of the control sample

1. Article 45(1) of Regulation (EC) No 796/2004 shall apply as regards the selection of the control sample referred to in Article 20 of this Regulation.

2. The competent control authority shall, with regard to the requirements or standards for which it is responsible, select the beneficiaries to be checked in accordance with Article 20 by selecting the sample from the sample of beneficiaries which were already selected pursuant to Article 12 and to whom the relevant requirements or standards apply.

3. By way of derogation from paragraph 2, the competent control authority may, with regard to the requirements or standards for which it is responsible, select a control sample of 1 % of all beneficiaries submitting payment claims under Article 36(a)(i) to (v) and (b)(i), (iv) and (v) of Regulation (EC) No 1698/2005 and who are under the obligation to respect at least one of the requirements or standards.

SUBSECTION II U.K. Reductions and exclusions

Article 22 U.K. General

1. Article 25 of Regulation (EC) No 1782/2003 and Article 2(2), (2a) and (31) to (36), Article 41 and Article 65(2) of Regulation (EC) No 796/2004 shall apply with regard to reductions or exclusions to be applied following the determination of non-compliances.

2. Where more than one paying agency is responsible in the context of the management of the different support measures under Article 36(a)(i) to (v) and (b)(i), (iv) and (v) of Regulation (EC) No 1698/2005, the Member States shall take the appropriate measures to ensure the appropriate application of the provisions of this Subsection, in particular that one rate of reduction is applied to the entirety of those payments applied for by the beneficiary.

Article 23 U.K. Calculation of reductions and exclusions

Without prejudice to Article 51(2) of Regulation (EC) No 1698/2005, where a non-compliance is determined, a reduction shall be applied on the overall amount of aid under Article 36(a)(i) to (v) and (b)(iv) and (v) of that Regulation that has been, or has to be, granted to the beneficiary concerned following payment claims he has submitted or will submit in the course of the calendar year of the finding.

Where the non-compliance is due to negligence of the beneficiary, the reduction shall be calculated in accordance with the rules set out in Article 66 of Regulation (EC) No 796/2004.

In the case of intentional non-compliance, the reduction shall be calculated in accordance with Article 67 of Regulation (EC) No 796/2004.

Article 24 U.K. Accumulation of reductions

Where there is an accumulation of reductions, reductions shall be applied firstly for late submission in accordance with Article 21 of Regulation (EC) No 796/2004, then in accordance with Articles 16 or 17 of this Regulation, then in accordance with Article 18 and finally in accordance with Articles 22 and 23.

(1)

See page 15 of this Official Journal.

(2)

OJ L 345, 20.11.2004, p. 1.