TITLE IITHE INTEGRATED ADMINISTRATION AND CONTROL SYSTEM

CHAPTER ISYSTEMS REQUIREMENTS

Article 5Identification of agricultural parcels

1.

The identification system for agricultural parcels referred to in Article 70 of Regulation (EU) No 1306/2013 shall operate at reference parcel level. A reference parcel shall contain a unit of land representing agricultural area as defined in Article 4(1)(e) of Regulation (EU) No 1307/2013. Where appropriate, a reference parcel shall also include F1areas as referred to in Article 32(2)(b) of Regulation (EU) No 1307/2013 and agricultural land as referred to in Article 28(2) of Regulation (EU) No 1305/2013.

F2The relevant authority shall delimit the reference parcel in such a way as to ensure that the reference parcel is measurable, enables the unique and unambiguous localisation of each agricultural parcel annually declared and as a principle, is stable in time.

2.

F3The relevant authority shall also ensure that agricultural parcels that are declared are reliably identified. They shall in particular require the aid applications F4and payment claims to be furnished with particular information or accompanied by documents specified by the competent authority that enable each agricultural parcel to be located and measured. For each reference parcel, F5the relevant authority shall:

  1. (a)

    F6determine a maximum eligible area for the purpose of the support schemes listed in Annex I to Regulation (EU) No 1307/2013;

  2. (b)

    determine a maximum eligible area for the purpose of the area-related measures referred to in Articles 28 to 31 of Regulation (EU) No 1305/2013;

  3. (c)

    F7locate and determine the size of those ecological focus areas listed in Article 46(1) of Regulation (EU) No 1307/2013 for which the F8relevant authority has decided that they shall be considered as ecological focus area. For that purpose, F9the relevant authority shall apply the conversion and/or weighting factors set out in Annex X to Regulation (EU) No 1307/2013, where appropriate;

  4. (d)
    F10F11determine whether provisions for mountain areas, areas facing significant natural constraints and other areas affected by specific constraints as referred to in Article 32 of Regulation (EU) No 1305/2013, Natura F122000 areas and areas covered by Directive 2000/60/EC of the European Parliament and of the Council14F13... apply
  5. (d)

    F11determine whether areas naturally kept in a state suitable for grazing or cultivation as referred to in Article 4(1)(c)(iii) of Regulation (EU) No 1307/2013, F14areas designated by the relevant authority for the regional and/or collective implementation of ecological focus areas in accordance with Article 46(5) and (6) in that regulation and areas covered with permanent grasslands which are environmentally sensitive as referred to in Article 45(1) of that regulation apply.

  6. (d)

    F15determine whether areas covered with permanent grassland which are environmentally sensitive as referred to in Article 32A of Regulation No 1307/2013 apply.

3.

F16The relevant authority shall ensure that the maximum eligible area per reference parcel as referred to in paragraph 2(a) is correctly quantified within a margin of maximum 2 %, thereby taking into account the outline and condition of the reference parcel.

4.

For the measures referred to in Article 21(1)(a) and Articles 30 and 34 of Regulation (EU) No 1305/2013, F17the relevant authority may establish appropriate alternative systems to uniquely identify the land subject to support where that land is covered by forest.

5.

The GIS shall operate on the basis of a national coordinate reference system as defined in Directive 2007/2/EC of the European Parliament and of the Council17 which permits standardised measurement and unique identification of agricultural parcels throughout the F18relevant authority concerned. Where different coordinate systems are used, they shall be mutually exclusive and each of them shall ensure the consistency between items of information which refer to the same location.

F19Article 6Quality assessment of the identification system for agricultural parcels

1.

F20The relevant authority shall annually assess the quality of the identification system for agricultural parcels for the purpose of the basic payment scheme F21... as referred to in Chapter 1 of Title III of Regulation (EU) No 1307/2013. That assessment shall encompass two conformance classes.

The first conformance class shall cover the following elements in order to assess the quality of the identification system for agricultural parcels:

  1. (a)

    the correct quantification of the maximum eligible area;

  2. (b)

    the proportion and distribution of reference parcels where the maximum eligible area takes ineligible areas into account or where it does not take agricultural area into account;

  3. (c)

    the occurrence of reference parcels with critical defects.

The second conformance class shall cover the following quality elements in order to identify possible weaknesses in the identification system for agricultural parcels:

  1. (a)

    the categorisation of reference parcels where the maximum eligible area takes ineligible areas into account, where it does not take agricultural area into account or reveals a critical defect;

  2. (b)

    the ratio of F22declaredF22claimed area in relation to the maximum eligible area inside the reference parcels;

  3. (c)

    the percentage of reference parcels which have been subject to change, accumulated over the years.

Where the results of the quality assessment reveal deficiencies in the system, the F23relevant authority shall take appropriate remedial action.

2.

F24The relevant authority shall perform the assessment referred to in the paragraph 1 on the basis of a sample of reference parcels to be selected F25by the constituent nations. They shall use data allowing to assess the current situation on the ground.

F263.

An assessment report and, where appropriate, the remedial actions and the timetable for their implementation shall be drawn up by the relevant authority by 31 January F27following the calendar year in question.

Article 6Quality assessment of the identification system for agricultural parcels

1.

The relevant authority shall annually assess the quality of the identification system for agricultural parcels. Where the results of the quality assessment reveal deficiencies in the system, the relevant authority shall take appropriate remedial action.

2.

The relevant authority shall perform the assessment referred to in paragraph 1 on the basis of a sample of reference parcels.

3.

An assessment report and, where appropriate, the remedial actions and the timetable for their implementation shall be drawn up by the relevant authority ....

F28Article 7Identification and registration of payment entitlements

1.

The system for the identification and registration of payment entitlements provided for in Article 71 of Regulation (EU) No 1306/2013 shall be an electronic register F29at F30United Kingdom level and shall, in particular with regard to the cross-checks provided for in paragraph 1 of that Article, ensure effective traceability of the payment entitlements as regards the following elements:

  1. (a)

    the holder;

  2. (b)

    the annual values;

  3. (c)

    the date of establishment;

  4. (d)

    F31...

  5. (e)

    the origin, in particular with regard to its attribution, original, national or regional reserves, as well as purchase, lease and inheritance;

  6. (f)

    where Article 21(3) of Regulation (EU) No 1307/2013 F32as it had effect immediately before exit dayF33was applied, the entitlements maintained by virtue of that provision;

  7. (g)

    where applicable, regional restrictions.

F34That electronic register shall contain all information necessary to carry out the replenishment of the national reserve or regional reserve pursuant to Article 31 of Regulation (EU) No 1307/2013.

2.

F35Where there is more than one paying agency across the constituent nations, the electronic register may be operated at paying agency level. The relevant authority will ensure that its register is compatible with the registers of the other paying agencies.

Article 8Identification of beneficiaries

Without prejudice to Article 72(3) of Regulation (EU) No 1306/2013, the single system for recording the identity of each beneficiary provided for in Article 73 of that Regulation shall guarantee a unique identification with regard to all aid applications and payment claims or other declarations submitted by the same beneficiary.

CHAPTER IIAGRICULTURAL PARCELS WITH LANDSCAPE FEATURES AND TREES

Article 9Determination of areas where the agricultural parcel contains landscape features and trees

1.

Where certain landscape features, in particular hedges, ditches and walls, are traditionally part of good agriculture cropping or utilisation practices on agricultural area in certain regions, F36the relevant authority may decide that the corresponding area shall be considered part of the eligible area of an agricultural parcel within the meaning of Article 67(4)(a) of Regulation (EU) No 1306/2013 provided that it does not exceed a total width to be determined by the F37relevant authority concerned. That width shall correspond to a traditional width in the region concerned and shall not exceed 2 metres.

However, where F38the United Kingdom notified to the Commission before 9 December 2009 of a width greater than 2 metres in conformity with the third subparagraph of Article 30(2) of Commission Regulation (EC) No 796/200418, that width may still be applied.

F39The first and the second subparagraph shall not apply to permanent grassland with scattered landscape features and trees where the F40relevant authority concerned has decided to apply a pro-rata system in accordance with Article 10.

2.

Any landscape features subject to the requirements and standards listed in Annex II to Regulation (EU) No 1306/2013 which form part of the total area of an agricultural parcel shall be considered part of the eligible area of that agricultural parcel.

3.

An agricultural parcel that contains scattered trees shall be considered as eligible area provided that the following conditions are fulfilled:

  1. (a)

    agricultural activities can be carried out in a similar way as on parcels without trees in the same area; and

  2. (b)

    F41the number of trees per eligible hectare does not exceed a maximum density.

The maximum density referred to in point (b) of the first subparagraph shall be defined by F42the relevant authorityF43... on the basis of traditional cropping practices, natural conditions and environmental reasons. It shall not exceed 100 trees per hectare. However, that limit shall not apply in relation to the measures referred to in Articles 28 and 30 of Regulation (EU) No 1305/2013.

F44This paragraph shall not apply to scattered fruit trees which yield repeated harvests, to scattered trees which can be grazed in permanent grassland and to permanent grassland with scattered landscape features and trees where the F45relevant authority concerned has decided to apply a pro-rata system in accordance with Article 10.

F46Article 10Pro-rata system for permanent grassland containing landscape features and trees

1.

As regards permanent grassland with scattered ineligible features, such as landscape features and trees, F47the relevant authority may decide to apply a pro-rata system to determine the eligible area within the reference parcel.

The pro-rata system referred to in the first subparagraph shall consist of different categories of homogeneous land cover types for which a fixed reduction coefficient based on the percentage of ineligible area is applied. The category representing the lowest percentage of ineligible area shall not exceed 10 % of ineligible area and no reduction coefficient shall apply to that category.

2.

Any landscape features subject to the requirements and standards listed in Annex II to Regulation (EU) No 1306/2013 which form part of the total area of an agricultural parcel shall be considered part of the eligible area.

3.

This Article shall not apply to permanent grassland containing fruit trees which yield repeated harvests.

CHAPTER IIIAID APPLICATIONS AND PAYMENT CLAIMS

Article 11The single application

The single application shall at least cover the application for direct payments referred to in Article 72(1) of Regulation (EU) No 1306/2013 in respect of the basic payment scheme F48... and other area-related aid schemes.

F41Article 12Derogation for the final date for submission and notification

F49Where one of the following dates is a public holiday, a Saturday or a Sunday, it shall be deemed to fall on the first following working day:

  1. (a)

    the final date for the submission of an aid application, application for support, payment claim or other declarations or any supporting documents or contracts, or the final date for amendments to the single application or to the payment claim;

  2. (b)

    F50the latest possible date for late submission referred to in the F51third subparagraph of F51second subparagraph of Article 13(1) and the latest possible date for late submission referred to in the second subparagraph of Article 14 for the submission of applications by beneficiaries for allocation or increase of payment entitlements;

  3. (c)
    the latest possible date for notification of the results of the preliminary checks to the beneficiary referred to in Article 11(4) of Commission Implementing Regulation (EU) No 809/201420.
  4. (d)

    the latest possible date for the beneficiary to notify the competent authority of the modifications following the preliminary checks as referred to in Article 15(2a) of Implementing Regulation (EU) No 809/2014.

F52However, where the latest possible dates for late submission referred to in point (b) of the first paragraph are already deemed to fall on the first following working day, the latest possible date for notification referred to in point (c) of that paragraph shall be deemed to fall on the second following working day.

Article 13Late submission

1.

Except in cases of force majeure and exceptional circumstances as referred to in Article 4, the submission of an aid application or payment claim pursuant to this Regulation after the final date for such submission as fixed by F53Article 13 of Regulation (EU) No 809/2014 F54shall F54may lead to a 1 % reduction per working day of the amounts to which the beneficiary would have been entitled if the application or claim had been submitted within the time limit.

F55Without prejudice to any particular measures to be taken by the F56relevant authority with regard to the need for the submission of any supporting documents in due time to allow effective controls to be scheduled and carried out, F57the first subparagraph shall also apply with regard to applications for support, documents, contracts or other declarations to be submitted to the competent authority where such applications for support, documents, contracts or declarations are constitutive for the eligibility for the aid or support in question. In that case, the reduction shall be applied on the amount payable for the aid or support concerned.F57an applicant may submit documents which are constitutive for the eligibility for the aid in question to the relevant authority by no later than 25 calendar days after the final date for submission of an aid application as fixed by Article 13 of Regulation (EU) No 809/2014.

If such delay amounts to more than 25 calendar days, the application or claim shall be considered inadmissible and no aid or support shall be granted to the beneficiary.

F58All documents in support of an aid application, must be submitted by 31 December of that calendar year.

2.

Except in cases of force majeure and exceptional circumstances as referred to in Article 4, where the beneficiary of the schemes provided for in Articles 46 and 47 of Regulation (EU) No 1308/2013 of the European Parliament and of the Council21 who is also subject to cross-compliance obligations in accordance with Article 92 of Regulation (EU) No 1306/2013 does not submit the single application form within the final date as referred to in the first subparagraph of paragraph 1 of this article, a 1 % reduction per working day F59shall F59may apply. The maximum reduction shall be limited to 25 %. The reduction percentage shall apply to the total amount of payments related to measures under Articles 46 and 47 of Regulation (EU) No 1308/2013, divided by 3 for restructuring and conversion.

F603.

Except in cases of force majeure and exceptional circumstances as referred to in Article 4, the submission of an amendment to the single application or payment claim after the final date for such submission as fixed by F61Article 13 of Regulation (EU) No 809/2014 F62shall F62may lead to a 1 % reduction per working day of the amounts relating to the actual use of the agricultural parcels concerned.

Amendments to the single application or payment claim shall only be admissible until the latest possible date for late submission of the single application or payment claim as specified in the F63thirdF63second subparagraph of paragraph 1. However, where that date is earlier than, or the same as the final date for the submission of an amendment to the single application or payment claim as referred in the first subparagraph of this paragraph, amendments to the single application or payment claim shall be considered inadmissible after that date.

F603.

Except in cases of force majeure and exceptional circumstances as referred to in Article 4, no amendment to the single application may be admissible after the final date for submission of amendments as specified in Article 15(2) of Commission Implementing Regulation (EU) No 809/2014.

F64Article 14Late submission of an application related to payment entitlements

Except in cases of force majeure and exceptional circumstances referred to in Article 4, the submission of an application for allocation or, when applicable, increase of the value of payment entitlements after the final date fixed F65by Article 22 of Regulation (EU) No 809/2014, shall lead in that year to a 3 % reduction per working day of the amounts to be paid in respect of the payment entitlements or, when applicable, in respect of the increase of the value of payment entitlements to be allocated to the beneficiary.

If such delay amounts to more than 25 calendar days, the application shall be considered inadmissible and no payment entitlements or, when applicable, no increase of the value of payment entitlements shall be allocated to the beneficiary.

CHAPTER IVCALCULATION OF AID AND ADMINISTRATIVE PENALTIES RELATING TO DIRECT PAYMENTS SCHEMES AND RURAL DEVELOPMENT MEASURES IN THE SCOPE OF THE INTEGRATED SYSTEM

SECTION 1General rules

Article 15Exceptions from the application of administrative penalties

1.

The administrative penalties provided for in this Chapter shall not apply with regard to the part of the aid application or payment claim as to which the beneficiary informs the competent authority in writing that the aid application or payment claim is incorrect or has become incorrect since it was lodged, provided that the beneficiary has not been informed of the competent authority’s intention to carry out an on-the-spot check and that the authority has not already informed the beneficiary of any non-compliances in the aid application or payment claim.

2.

The information given by the beneficiary as referred to in paragraph 1 shall have the effect that the aid application or payment claim is adjusted to the actual situation.

F34Article 15aIndividual limit or ceiling

Where an individual limit or individual ceiling is applicable under an aid scheme or support measure and the area F66or the number of animals declared by the beneficiary exceeds the individual limit or individual ceiling, the area F67declared or the number of animals declared corresponding thereto shall be adjusted to the limit or ceiling set for the beneficiary concerned.

Article 16Non-declaration of all areas

1.

If, for a given year, a beneficiary does not declare all the agricultural parcels related to the areas referred to in Article 72(1) of Regulation (EU) No 1306/2013 F68and the difference between the overall area declared in the single application and/or payment claim on the one hand and the area declared plus the overall area of the parcels not declared, on the other, is more than 3 % of the area declared, the overall amount of F69area-related direct payments and/or support under area-related support measures payable to that beneficiary for that year shall be reduced by up to 3 % depending on the severity of the omission.

F70The penalty calculated in accordance with the first subparagraph shall be reduced by the amount of any administrative penalty applied in accordance with F71Article 28(2)F71Article 18a(2).

F68then the support under area-related support measures payable to that beneficiary for that year must be calculated on the basis of the area determined or the area declared, whichever is the lower

2.

Paragraph 1 shall also apply to payments related to the schemes provided for in Articles 46 and 47 of Regulation (EU) No 1308/2013, where the beneficiary is subject to cross-compliance obligations in accordance with Article 92 of Regulation (EU) No 1306/2013. The reduction percentage shall apply to the total amount of payments related to measures under Articles 46 and 47 of Regulation (EU) No 1308/2013 divided by 3 for restructuring and conversion.

F723.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SECTION 2Area-related aid schemes F73, except the payment for agricultural practices beneficial for the climate and the environment, or area-related support measures

Article 17General principles

F411.

For the purposes of this Section, the following crop groups shall be distinguished as appropriate:

  1. (a)

    F74areas declared for the purpose of activation of payment entitlements under the basic payment scheme F75...;

  2. (b)

    F76F74areas giving right to the re-distributive payment;

  3. (c)

    F74areas giving right to payments under the young farmers scheme;

  4. (d)

    F77F74areas declared per voluntary coupled support measures;

  5. (e)

    a group for each of the areas declared for the purpose of any other area-related F78aid scheme or support measure, for which a different rate of aid or support is applicable;

  6. (f)

    areas declared under the heading ‘other uses’.

For the purposes of point (e) of the first subparagraph, in respect of payments for areas facing natural or other specific constraints as referred to in Article 31 of Regulation (EU) No 1305/2013, where degressive aid amounts are used, the average of those amounts in relation to the respective areas declared shall be taken into account.

F792.

Where the same area serves as the basis for F80a payment claim under more than one area-related F81... support measure, that area shall be taken into account separately for each of those F82... support measures.

Article 18Basis of calculation in respect of area-related payments

F831.

With regard to an aid applications under the basic payment scheme F84... F85, the re-distributive paymentF86... and, where applicable, the young farmer scheme and where the F87relevant authority applies the basic payment scheme, the following shall apply:

  1. (a)

    if the number of payment entitlements declared exceeds the number of payment entitlements at the beneficiary’s disposal, the number of payment entitlements declared shall be reduced to the number of payment entitlements at the beneficiary’s disposal;

  2. (b)

    if there is a difference between the number of payment entitlements declared and the area declared, the area declared shall be adjusted to the lowest figure.

F88...

2.

In case of the payment for young farmers and where the F89relevant authority opts for the payment method laid down in Article 50(6) F90...F91and (8) of Regulation (EU) No 1307/2013; if the area declared under the basic payment scheme F92... exceeds the limit set by the F89relevant authority in accordance with Article 50(9) of that Regulation, the area declared shall be reduced to that limit.

F933.

In case of the re-distributive payment, if the area declared under the basic payment scheme F94... exceeds the limits set by the F95relevant authority in accordance with Article 41(4) of Regulation (EU) No 1307/2013, the area declared shall be reduced to that limit.

F964.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5.

In case of F97aid applications and/or payment claims under area-related F98aid schemes or support measures, if the area of a crop group determined is established to be greater than the area declared in the aid application, the area declared shall be used for the calculation of the aid.

6.

Without prejudice to administrative penalties in accordance with Article 19, in the case of F99aid applications and/or payment claims under area-related F100aid schemes or support measures, if the area declared exceeds the area determined for a crop group as referred to in Article 17(1), the aid shall be calculated on the basis of the area determined for that crop group.

However, without prejudice to Article 60 of Regulation (EU) No 1306/2013, if the difference between the total area determined and F101the total area declared for payment under the direct aid schemes established in F102F103Titles III and IVF102Title III of Regulation (EU) No 1307/2013 or the total area declared for payment under an area-related support measure 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 the level of a crop group as referred to in Article 17(1) shall be taken into account.

The second subparagraph shall not apply where that difference represents more than 20 % of the total area declared for payments.

F1047.

For the purpose of calculating the aid under the basic payment scheme, the average of the values of different payment entitlements in relation to the respective area declared shall be taken into account.

F105Article 18a

1.

If a non-compliance with Article 32a(1) of Regulation No 1307/201 has been determined, the area calculated in relation to the basic payment in accordance with Article 18 of this Regulation shall be reduced by the area determined as non-compliant with the requirements of Article 32a(1) of Regulation (EU) No 1307/2013.

2.

If a beneficiary does not declare all his permanent grassland which is environmentally sensitive in accordance with Article 32a(1) of Regulation No 1307/2013 and the non-declared area is more than 0,1 ha, the area to be used for the calculation of the basic payment after application of paragraph (1) shall be further reduced by 10 %.

Article 19Administrative penalties in cases of over-declaration

F1061.

If, in respect of a crop group as referred to in Article 17(1), the area declared for the purposes of any area-related F107aid schemes or support measures exceeds the area determined in accordance with Article 18, 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 area-related F108aid or support shall be granted for the crop group concerned.

F1061.

If, in respect of a crop group as referred to in Article 17(1), the area declared for the purposes of any area-related aid schemes or support measures exceeds or is less than the area determined in accordance with Article 18, the aid shall be calculated on the basis of the area determined

F1092.

If the difference is more than 50 %, no area-related F108aid or support shall be granted for the crop group concerned. Moreover, the beneficiary shall be subject to an additional penalty equal to the amount of F108aid or support corresponding to the difference between the area declared and the area determined in accordance with Article 18.

F110F413.

If the amount calculated in accordance with paragraphs 1 and 2 cannot be fully off-set in the course of the three calendar years following the calendar year of the finding, in accordance with Article 28 of Commission Implementing Regulation (EU) No 908/201422, the outstanding balance shall be cancelled.

F34Article 19aF111Administrative penalties in cases of over-declaration of areas for F112..., Natura 2000 and Water Framework Directive payments and payments to areas facing natural or other specific constraints F111Administrative penalties in cases of over-declaration of areas for F113agri-environment climate, organic farming, the basic payment scheme F114, the re-distributive payment and the young farmers scheme

1.

If, in respect of a crop group as referred to in Article 17(1), the area declared for F115the aid schemes provided for in Chapters 1 F116, 2F117... and 5 of Title III F118... of Regulation (EU) No 1307/2013 and the support measures referred to in Articles F11928, 29 30 and 31 of Regulation (EU) No 1305/2013 exceeds the area determined in accordance with Article 18 of this Regulation, the aid or support shall be calculated on the basis of the area determined reduced by 1,5 times the difference found if that difference is more than either 3 % of the area determined or 2 hectares.

The administrative penalty shall not exceed 100 % of the amounts based on the area declared.

X12.

F120Where no administrative penalty has yet been imposed on the beneficiary under paragraph 1 for over-declaration of areas for the F121aid scheme or support measure concerned, the administrative penalty referred to in that paragraph shall be reduced by 50 % if the difference between the area declared and the area determined does not exceed 10 % of the area determined.F120The administrative penalty referred to in paragraph 1 is to be reduced by 50% if the difference between the area declared and the area determined does not exceed 10% of the area determined.

F1223.

Where a beneficiary had his administrative penalty reduced in accordance with paragraph 2 and another administrative penalty as referred to in this Article and in Article 21 is to be imposed on that beneficiary for the F121aid scheme or support measure concerned in respect of the following claim year, he shall pay the full administrative penalty in respect of that following claim year and shall pay the amount by which the administrative penalty calculated in accordance with paragraph 1 had been reduced in accordance with paragraph 2.

F1234.

If the amount calculated in accordance with F124paragraphs 1, 2 and 3F124paragraphs 1 and 2 cannot be fully off-set in the course of the three calendar years following the calendar year of the finding, in accordance with Article 28 of Implementing Regulation (EU) No 908/2014, the outstanding balance shall be cancelled.

Article19aAdministrative penalties in cases of over-declaration of areas for the basic payment scheme, the re-distributive payment, the young farmers scheme and voluntary coupled support

1.

If, in respect of a crop group as referred to in Article 17(1), the area declared for the aid schemes provided for in Chapters 1, 2 and 5 of Title III and in Title IV of Regulation (EU) No 1307/2013 exceeds the area determined in accordance with Article 18 of this Regulation, the aid or support shall be calculated on the basis of the area determined reduced by 1,5 times the difference found if that difference is more than either 3 % of the area determined or 2 hectares.

2.

The administrative penalty referred to in paragraph 1 will be reduced by 50% if the difference between the area declared and the area determined does not exceed 10% of the area determined.

F125Article 20Administrative penalties concerning the crop specific payment for cotton

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F126Article 21Administrative penalties, other than over-declarations of areas, concerning the payments for young farmers under Chapter V of Title III of Regulation (EU) No 1307/2013

1.

Without prejudice to the administrative penalties applicable in accordance with Article 19, where it is established that the beneficiary does not comply with the obligations referred to in Article 50(2) of Regulation (EU) No 1307/2013 and Article 49 of Delegated Regulation (EU) No 639/2014, the aid for young farmers shall not be paid or shall be withdrawn in full. Moreover, where it is established that the beneficiary provided false evidence for the purpose of proving compliance with the obligations, a penalty corresponding to 20 % of the amount the beneficiary has, or would otherwise have received as a payment for young farmers pursuant to Article 50(1) of Regulation (EU) No 1307/2013 shall be applied.

F412.

If the amount of the undue payments and the administrative penalties referred to in paragraph 1 cannot be fully off-set in the course of the three calendar years following the calendar year of the finding, in accordance with Article 28 of Implementing Regulation (EU) No 908/2014, the outstanding balance shall be cancelled.

F127SECTION 3Payment for agricultural practices beneficial for the climate and the environment

F128F129Article 22General principles

For the purposes of this Section, where the same area is determined for more than one of the agricultural practices beneficial for the climate and the environment as referred to in Article 43(2) of Regulation (EU) No 1307/2013, that area shall be taken into account separately for each of those practices in view of calculating the payment for agricultural practices beneficial for the climate and the environment, hereinafter referred to as ‘the greening payment’.

F129Article 23Basis of calculation of the payment for agricultural practices beneficial for the climate and the environment in respect of the eligible hectares declared under the basic payment scheme F130...

1.

Where the F131relevant authority applies the basic payment scheme, the following shall apply:

  1. (a)

    if the number of payment entitlements declared exceeds the number of payment entitlements at the beneficiary’s disposal, the number of payment entitlements declared shall be reduced to the number of payment entitlements at the beneficiary’s disposal;

  2. (b)

    if there is a difference between the number of payment entitlements declared and the area declared, the area declared shall be adjusted to the lowest figure.

F1282.

Without prejudice to the administrative penalties applicable in accordance with Article 28, if the area declared in a single application for the basic payment F132... exceeds the area determined, the area determined shall be used for the calculation of the greening payment.

However, if the area determined for the basic payment scheme F133... is found to be greater than the area declared in the aid application, the area declared shall be used for the calculation of the greening payment.

F129F134Article 24 Reduction of the greening payment in case of non-compliance with crop diversification

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F129Article 25Reduction of the greening payment in case of non-compliance with the permanent grassland requirements

1.

If a non-compliance with the third subparagraph of Article 45(1) of Regulation (EU) No 1307/2013 has been determined, the area to be used for the calculation of the greening payment in accordance with Article 23 of this Regulation shall be reduced by the area determined as non-compliant with the requirements in the third subparagraph of Article 45(1) of Regulation (EU) No 1307/2013.

2.

If a non-compliance with the obligations as referred to in Article 44 of Delegated Regulation (EU) No 639/2014 has been determined, the area to be used for the calculation of the greening payment in accordance with Article 23 of this Regulation shall be reduced by the area determined as non-compliant with the obligations as referred to in Article 44 of Delegated Regulation (EU) No 639/2014.

3.

Non-compliances shall be deemed to be ‘determined’ if they are established as a consequence of any kind of checks carried out in accordance with Article 74 of Regulation (EU) No 1306/2013 or after having been brought to the attention of the competent control authority or paying agency in whatever other way.

F129Article 26Reduction of the greening payment in case of non-compliance with the ecological focus area requirements

1.

The ecological focus area required in accordance with Article 46(1) of Regulation (EU) No 1307/2013, hereinafter referred to as ‘the ecological focus area required’, shall be calculated on the basis of the total area of arable land determined and including, if applicable pursuant to Article 46(2) of Regulation (EU) No 1307/2013, the areas determined as referred to in points (c), (d), (g) and (h) of the first subparagraph of Article 46(2) of that Regulation.

F1282.

If the ecological focus area required exceeds the ecological focus area determined taking account of the weighting of ecological focus areas provided for in Article 46(3) of Regulation (EU) No 1307/2013, the area to be used for the calculation of the greening payment in accordance with Article 23 of this Regulation shall be reduced by 10 times the ecological focus area not found.

For the purposes of the first subparagraph, the ecological focus area determined shall not exceed the share of the ecological focus areas declared in the total area of arable land declared.

3.

Where a beneficiary has been found non-compliant with the ecological focus area requirements as described in this Article for three years, the area by which the area to be used for the calculation of the greening payment is to be reduced in accordance with paragraph 2 for the subsequent years shall be multiplied by 2.

F129Article 27Maximum reduction of the greening payment

1.

The sum of the reductions calculated in accordance with F135Article 26 expressed in hectares shall not exceed the total number of hectares of arable land determined including, if applicable pursuant to Article 46(2) of Regulation (EU) No 1307/2013, the areas determined as referred to in points (c), (d), (g) and (h) of the first subparagraph of Article 46(2) of that Regulation.

2.

Without prejudice to the application of administrative penalties applicable in accordance with Article 28, the total reduction calculated in accordance with F136Articles 25 and 26 shall not exceed the greening payment calculated in accordance with Article 23.

F129Article 28Administrative penalties as regards the greening payment

1.

If the area to be used for the calculation of the greening payment in accordance with Article 23 differs from the area to be used for the calculation of the greening payment after application of Articles F13725 to 27, the greening payment shall be calculated on this later area reduced by twice the difference established if that difference is more than either 3 % or two hectares, but no more than 20 % of the area to be used for the calculation of the greening payment after application of Articles F13725 to 27.

If the difference is more than 20 %, no aid shall be granted.

If the difference is more than 50 %, no aid shall be granted. Moreover, the beneficiary shall be subject to an additional penalty equal to the amount of aid corresponding to the difference between the area to be used for the calculation of the greening payment in accordance with Article 23 and the area to be used for calculation of the greening payment after application of Articles F13725 to 27.

2.

If the beneficiary does not declare all his area under arable land with the result that he would have been exempted from the obligations provided for in Articles F138... 45 and 46 of Regulation (EU) No 1307/2013, and/or he does not declare all his permanent grassland which is environmentally sensitive in accordance with Article 45(1) of that Regulation and the non-declared area is more than 0,1 ha, the area to be used for the calculation of the greening payment after application of Articles F13925 to 27 of this Regulation shall be further reduced by 10 %.

F1403.

In accordance with Article 77(6) of Regulation (EU) No 1306/2013, the administrative penalty calculated in accordance with paragraphs 1 and 2 shall be divided by 4 and limited to 25% of the amount of the greening payment to which the farmer concerned would have been entitled in accordance with Article 23.

F414.

If the amount of the administrative penalties calculated in accordance with paragraphs 1, 2 and 3 cannot be fully off-set in the course of the three calendar years following the calendar year of the finding, in accordance with Article 28 of Implementing Regulation (EU) No 908/2014, the outstanding balance shall be cancelled.

F129Article 29Applicable rules for equivalent practices

This Section shall apply mutatis mutandis to the equivalent practices referred to in Article 43(3) of Regulation (EU) No 1307/2013.

SECTION 4Voluntary coupled support based on livestock aid applications under animal aid schemes or rural development support based on payment claims under animal-related support measures

F141Article 30Basis of calculation

1.

In no case F142aid or support shall be granted for a number of animals greater than that shown F143in the aid application or in the payment claim.

2.

Animals present on the holding shall only be considered as determined if they are identified F144in the aid application or in the payment claim. Identified animals may be replaced without the loss of the right to payment of the F145aid or support, provided that the beneficiary has not yet been informed by the competent authority of a non-compliance in the F146application or claim or has not yet been given notice of the authority’s intention to carry out an on-the-spot check. Where a F147relevant authority does not make use of the possibility of having a claimless system, in accordance with the rules laid down F148... on the basis of Article 78(b) of Regulation (EU) No 1306/2013, it shall ensure by any means that there are no doubts as to which animals are covered by the beneficiaries’ F149applications or claims.

3.

Without prejudice to Article 31, if the number of animals declared in F150an aid application orF150a payment claim exceeds that determined as a result of administrative checks or on-the-spot checks, the F151aid or support shall be calculated on the basis of the animals determined.

F343a.

Where animals have been moved to other locations than those notified in accordance with point (d) of Article 21(1) of Implementing Regulation (EU) No 809/2014 during the period determined by the F152relevant authority referred to in that point, they shall be regarded as determined if an immediate localisation of those animals within the holding was made during the on-the-spot check.

4.

Where cases of non-compliances with regard to the system for the identification and registration for bovine animals are found, the following shall apply:

  1. (a)

    a bovine animal present on the holding which has lost one of the two ear tags shall be considered as determined provided that it is clearly and individually identified by the other elements of the system for the identification and registration of bovine animals referred to in points (b), (c) and (d) of the first paragraph of Article 3 of Regulation (EC) No 1760/2000;

  2. (b)

    where one single bovine animal present on the holding has lost two ear tags it shall be considered as determined provided that the animal can still be identified by the register, animal passport, database or other means laid down in Regulation (EC) No 1760/2000 and provided that the animal keeper can provide evidence that he has already taken action to remedy the situation before the announcement of the on-the-spot check;

  3. (c)

    F41where the non-compliances found relate to incorrect entries in the register, the animal passports or the computerised database for animals, but are not of relevance for the verification of the respect of the eligibility conditions F153other than that referred to in Article 53(4) of Delegated Regulation (EU) No 639/2014 under the aid scheme orF153under the support measure concerned, the animal concerned shall only be considered as not determined if such incorrect entries are found during at least two checks within a period of 24 months. In all other cases the animals concerned shall be considered as not determined after the first finding.

The entries in, and notifications to, the system for the identification and registration of bovine animals may be adjusted at any time in cases of obvious errors recognised by the competent authority.

5.

An ovine or caprine animal present on the holding which has lost one ear tag shall be considered as determined provided that the animal can still be identified by a first means of identification in accordance with Article 4(2)(a) of Regulation (EC) No 21/2004 and provided that all other requirements of the system for the identification and registration of ovine and caprine animals are fulfilled.

F141F41Article 31 Administrative penalties in respect of declared animals under the animal aid schemes or animal-related support measures

1.

Where, F154in respect of an aid application under an animal aid scheme or in respect of a payment claim under an animal-related support measure or a type of operation under such support measure, a difference is found between the number of animals declared and that determined in accordance with Article 30(3), the total amount of F155aid or support to which the beneficiary is entitled under that F156aid scheme or support measure or type of operation under such support measure for the claim year concerned shall be reduced by the percentage to be established in accordance with paragraph 3 of this Article, if no more than three animals are found with non-compliances.

2.

If more than three animals are found with non-compliances, the total amount of F157aid or support to which the beneficiary is entitled under the F158aid scheme or support measure or type of operation under such support measure referred to in paragraph 1 for the claim year concerned shall be reduced by:

  1. (a)

    the percentage to be established in accordance with paragraph 3 F159, if it is not more than 10 %;

  2. (b)

    twice the percentage to be established in accordance with paragraph 3, if it is more than 10 % but not more than 20 %.

If the percentage established in accordance with paragraph 3 is more than 20 %, no F157aid or support to which the beneficiary would have been entitled pursuant to Article 30(3) shall be granted under the F158aid scheme or support measure or type of operation under such support measure for the claim year concerned.

If the percentage established in accordance with paragraph 3 is more than 50 %, no F157aid or support to which the beneficiary would have been entitled pursuant to Article 30(3) shall be granted under the F158aid scheme or support measure or type of operation under such support measure for the claim year concerned. Moreover, the beneficiary shall be subject to an additional penalty of an amount equal to the amount corresponding to the difference between the number of animals declared and the number of animals determined in accordance with Article 30(3). If that amount cannot be fully off-set in the course of the three calendar years following the calendar year of the finding, in accordance with Article 28 of Implementing Regulation (EU) No 908/2014, the outstanding balance shall be cancelled.

For other species than those referred to in Article 30(4) and (5) of this Regulation, F160the relevant authority may decide to determine a number of animals different from the threshold of three animals provided for in paragraphs 1 and 2 of this Article. When determining that number, F160the relevant authority, shall ensure that it is equivalent in substance to that threshold, by inter alia taking into account the livestock units and/or the amount of F157aid or support granted.

3.

In order to establish the percentages referred to in paragraphs 1 and 2, the number of animals declared under an F161animal aid scheme or animal-related support measure or type of operation and found with non-compliances shall be divided by the number of animals determined for that animal F162aid scheme or support measure or type of operation under such support measure in respect of the F163aid application or payment claim or type of operation under such support measure for the claim year concerned.

For the purpose of this paragraph, where a F164relevant authority makes use of the possibility of having a claimless system in accordance with Article 21(4) of Implementing Regulation (EU) No 809/2014 potentially eligible animals found not to be correctly identified or registered in the system for identification and registration for animals shall count as animals found with non-compliances F165, irrespectively of their status as regards the fulfilment of the eligibility requirements as laid down in Article 53(4) of Delegated Regulation (EU) No 639/2014.

4.

Where the calculation of the total amount of F166aid or support to which the beneficiary is entitled under F167an aid scheme orF167a support measure or type of operation under such support measure for the claim year concerned is based on the number of days the animals fulfilling the eligibility conditions are present on the holding, the calculation of the number of animals found with non-compliances as referred to in paragraphs 1 and 2 shall also be based on the number of days those animals are present on the holding.

For potentially eligible animals as referred to in the second subparagraph of paragraph 3, the calculation of the number of animals found with non-compliances shall be based on the number of days on which the animals may qualify for the F166aid or support.

F141Article 32Exceptions from the application of administrative penalties in cases of natural circumstances

The administrative penalties provided for in Article 31 shall not apply in cases where the beneficiary is unable to comply with the eligibility criteria, commitments or other obligations as a result of natural circumstances affecting the herd or flock, provided that he has informed the competent authority in writing within ten working days of finding any reduction in the number of animals.

Without prejudice to the actual circumstances to be taken into account in individual cases, the competent authorities may recognise natural circumstances affecting the herd or flock consisting of

  1. (a)

    the death of an animal as a consequence of a disease; or

  2. (b)

    the death of an animal following an accident for which the beneficiary cannot be held responsible.

F141Article 33Additional penalties and measures

1.

F168The relevant authority may provide additional F169... penalties to be applied to intermediates, involved in the procedure of obtaining F170aid or support, in order to ensure the compliance with control requirements including the respect of notification obligations.

2.

As regards the evidence provided by services, bodies or organisations other than the competent authorities in accordance with the rules laid down by F171... Article 78(c) of Regulation (EU) No 1306/2013, if it is found that incorrect evidence has been provided as a result of negligence or intentionally, the F172relevant authority concerned shall apply appropriate penalties in accordance with F173the law applying in the constituent nation. Where such non-compliances are found a second time, the service, body or organisation involved shall be excluded for a period of at least one year from the right to provide evidence valid for support purposes.

F141F41Article 34 Amendments and adjustments of entries in the computerised database for animals

In respect of declared animals, Article 15 shall apply to errors and omissions in relation to entries in the computerised database for animals made from the moment the F174aid application or payment claim is submitted.