Article 77U.K.Application of administrative penalties
1.As regards the administrative penalties referred to in Article 63(2), this Article shall apply in the case of non-compliance with relation to eligibility criteria, commitments or other obligations resulting from the application of the rules on support referred to in Article 67(2).
2.No administrative penalty shall be imposed:
(a)where the non-compliance is due to force majeure;
(b)where the non-compliance is due to obvious errors as referred to in Article 59(6);
(c)where the non-compliance is due to an error of the competent authority or another authority, and where the error could not reasonably have been detected by the person concerned by the administrative penalty;
(d)where the person concerned can demonstrate to the satisfaction of the competent authority that he or she is not at fault for the non-compliance with the obligations referred to in paragraph 1 or if the competent authority is otherwise satisfied that the person concerned is not at fault;
(e)where the non-compliance is of a minor nature, including where expressed in the form of a threshold, [set] in accordance with point (b) of paragraph 7;
(f)other cases in which the imposition of a penalty is not appropriate, [as defined] in accordance with point (b) of paragraph 7.
3.Administrative penalties may be imposed on the beneficiary of the aid or support, including groups or associations thereof, bound by the obligations laid down in the rules referred to in paragraph 1.
4.The administrative penalties may take the following forms:
(a)a reduction in the amount of aid or support paid or to be paid in relation to the aid applications or payment claims affected by the non-compliance and/or in relation to aid applications or payment claims for previous or subsequent years;
(b)payment of an amount calculated on the basis of the quantity and/or the period concerned by the non-compliance;
(c)exclusion from the right to participate in the aid scheme or support measure concerned.
5.The administrative penalties shall be proportionate [and graduated according to the severity, extent, duration and reoccurrence of the non-compliance found] and shall respect the following limits:
(a)the amount of the administrative penalty for a given year, as referred to in point (a) of paragraph 4, shall not exceed 100 % of the amounts of the aid applications or payment claims;
(b)the amount of the administrative penalty for a given year, as referred to in point (b) of paragraph 4, shall not exceed 100 % of the amount of the aid applications or payment claims to which the penalty is applied;
(c)the exclusion referred to in point (c) of paragraph 4 may be set at a maximum of three consecutive years, which may apply again in the case of any new non-compliance.
[6.Notwithstanding paragraphs 4 and 5, as regards the payment referred to in Chapter 3 of Title III of Regulation (EU) No 1307/2013, administrative penalties shall take the form of a reduction in the amount of payments made or to be made under that Regulation.
The administrative penalties referred to in this paragraph shall be proportionate and graduated according to the severity, extent, duration and reoccurrence of the non-compliance concerned.
[The amount of such administrative penalties for a given year shall not exceed 25% of the amount of the payment referred to in Chapter 3 of Title III of Regulation (EU) No 1307/2013 to which the farmer concerned would be entitled if the farmer met the conditions for that payment.]]
7.In order to take account of the deterrent effect of penalties to be imposed on the one hand, and the specific characteristics of each aid scheme or support measure referred to in Article 67(2) on the other, the [appropriate authority may make regulations]:
(a)identifying, for each aid scheme or support measure and person concerned as referred to in paragraph 3 from the list set out in paragraph 4 and within the limits laid down in [paragraph 5], the administrative penalty and determining the specific rate to be imposed ..., including in cases of non-quantifiable non-compliance;
(b)identifying, the cases in which the administrative penalties are not to be imposed, as referred to in point (f) of paragraph 2.
8.[The appropriate authority may make regulations], laying down detailed procedural and technical rules for the uniform application of this Article on:
(a)rules on the application and calculation of the administrative penalties;
(b)the detailed rules for identifying a non-compliance as minor, including the setting of a quantitative threshold expressed as a nominal value or a percentage of the eligible amount of aid or support which shall not be less than 0,5 %.
...