Save as otherwise provided in Regulations (EU) F52No 1305/2013,F52No 1305/2013 and (EU) No 1306/2013 F53and (EU) No 1307/2013, Delegated Regulation (EU) No 640/2014 or this Regulation, F54the relevant authority may permit or require that any kind of communications under this Regulation both from the beneficiary to the authorities and vice versa be made by electronic means, provided that this does not cause any discrimination between beneficiaries and that appropriate measures are taken to ensure in particular that:

1. (a)

   the beneficiary is unambiguously identified;

2. (b)

   the beneficiary complies with all requirements under the F55direct payment scheme or rural development measure concerned;

3. (c)

   the transmitted data is reliable in view of the proper management of the F55direct payment scheme or rural development measure concerned F56; where use is made of the data contained in the computerised database for animals as defined in point (9) of the second subparagraph of Article 2(1) of Delegated Regulation (EU) No 640/2014, that database shall offer the level of assurance and implementation necessary for the proper management of the F55direct payment scheme or rural development measure involved;

4. (d)

   where accompanying documents cannot be transmitted electronically, such documents are received by the competent authorities within the same time limits as for transmission by non-electronic means.

With regard to the submission of F57aid applications or payment claims, F58the relevant authority may, under the conditions laid down in paragraph 1, provide for simplified procedures where data is already available to the authorities, in particular where the situation has not changed since the latest submission of F59an aid application or paymentF59a payment claim under the F60direct payment scheme or rural development measure concerned in accordance with Article 72(3) of Regulation (EU) No 1306/2013. F58The relevant authority may decide to use data derived from data sources at the disposal of F61... authorities for the purposes of the F62aid applications and payment claims. In that case F63the relevant authority shall ensure that those data sources offer the level of assurance necessary for the proper management of the data in order to guarantee the reliability, integrity and security of that data.

Where possible, the competent authority may request the information required in any supporting documents to be submitted together with the F64aid application or payment claim directly from the source of the information.

Where the integrated system provides for the pre-established form and the corresponding graphic material referred to in Article 72(3) of Regulation (EU) No 1306/2013 through a GIS-based interface, enabling the processing of the spatial and alphanumerical data of the areas declared (hereinafter referred to as ‘geo-spatial aid application form’), F66the relevant authority may decide to introduce a system of preliminary cross-checks (hereinafter referred to as ‘preliminary checks’), which shall include at least the cross-checks referred to in points (a), (b) and (c) of the first subparagraph of Article 29(1) of this Regulation. The results shall be notified to the beneficiary within a period of 26 calendar days after the final date of submission of the single application F67, aid application or payment claims referred to in Article 13 of this Regulation. However, where this period of 26 calendar days expires before the final date for notification of amendments in accordance with Article 15(2) of this Regulation, the results shall be notified to the beneficiary at the latest the calendar day following the final date for notification of amendments of the year concerned.

F66The relevant authority may decide to carry-out such preliminary checks at regional level, provided that the system using the geo-spatial aid application form is set up at regional level.

Where the beneficiary is a group of persons applying for support for agri-environment-climate operations as referred to in Article 28 of Regulation (EU) No 1305/2013 (hereinafter referred to as ‘collective’), the F68relevant authority may decide to derogate from the requirement in Article 14 of this Regulation that the payment claim is to contain all information necessary to establish eligibility for the support and from the restriction in Article 13 of this Regulation that all relevant data for the proper administrative and financial management of the support is to be submitted by the final date of submission of the payment claim, by introducing a simplified annual payment claim (hereinafter referred to as ‘collective claim’) that shall be submitted by a collective.

Articles 2, 3, 4, 9, 11, 13, 15 and 16, 17(1) and (3) to (9), and Articles, 21, 24, 25, 27, 28, 29, 35, 38, 39, 40, 42, 43 and 45 of this Regulation and Articles 4, 12 and 13 of Regulation (EU) No 640/2014 shall apply mutadis mutandis in respect of the particular requirements established in view of the collective claim.

For collectives, F69the relevant authority shall include a description of the administrative arrangements in the rural development programme.

If F70the relevant authority decides pursuant to Article 72(4) of Regulation (EU) No 1306/2013 that the aid applications F71for direct payments and payment claims for rural development measures are to be covered by the single application, F72Articles 20, 21 andF72Article 22 of this Regulation shall apply mutatis mutandis in respect of the particular requirements established in view of the aid application and/or payment claim under those schemes or measures.

A beneficiary applying for aid and/or support under any of the F73area-related direct payments or rural development measures may submit only one single application per year.

F74The relevant authority shall provide for appropriate procedures for the submission of applications for support under rural development measures.

F75The relevant authority shall fix the final dates by which the single application F76, aid applications or payment claims shall be submitted. The final dates shall not be later than F7715 May F7731 December each year F78except in claim year 2020, when the final dates shall not be later than 15 June. F79...

In setting the final dates, F80the relevant authority shall take into account the period required for all relevant data to be available for the proper administrative and financial management of the F81aid and/or support and shall ensure that effective checks may be scheduled.

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

The single application F83or payment claim shall contain all information necessary to establish eligibility for the aid and/or support, in particular:

1. (a)

   the identity of the beneficiary;

2. (b)

   details of the F84direct payment schemes and/or rural development measures concerned;

3. (c)

   F85the identification of the payment entitlements in accordance with the identification and registration system provided for in Article 7 of Delegated Regulation (EU) No 640/2014 for the purposes of the F86basic payment schemeF86farm sustainability transition payment scheme;

4. (d)

   particulars permitting the unambiguous identification of all agricultural parcels on the holding, their area expressed in hectares to two decimal places, their location and, and where required, further specifications on the use of the agricultural parcels;

5. (e)

   where applicable, particulars permitting the unambiguous identification of non-agricultural land for which support under rural development measures is being claimed;

6. (f)

   F87where appropriate, any supporting documents needed to establish the eligibility for the scheme and/or measure concerned;

7. (g)

   a statement by the beneficiary that he is aware of the conditions pertaining to the F84direct payment schemes and/or rural development measures in question;

8. (ga)

   F88where appropriate, a statement by the beneficiary specifying which plans or reports are selected for the purposes of Article 43a(1) of Regulation (EU) No 1307/2013;

9. (h)

   F89where applicable, an indication by the beneficiary that he is covered by the list of non-agricultural businesses or activities referred to in the first and second subparagraphs of Article 9(2) of Regulation (EU) No 1307/2013.

The payment claim must contain such information as the relevant authority reasonably requires, including confirmation of continued eligibility for the support, and that actions have been undertaken in accordance with that support.

F91For the purpose of the identification of the payment entitlements referred to in paragraph 1(c), the pre-established forms provided to the beneficiary in accordance with Article 72(3) of Regulation (EU) No 1306/2013 shall mention the identification of the payment entitlements in accordance with the identification and registration system provided for in Article 7 of Delegated Regulation (EU) No 640/2014.

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

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

Where a F94relevant authority uses the option to introduce collective claims, Article 14 shall not apply in respect of such collective claims.

The collective shall submit one collective claim per year.

The collective claim shall contain all information necessary to establish eligibility for the support, with the exception of information in respect of the commitments covered by the agri-environment-climate operations as referred to in Article 28 of Regulation EU (No) 1305/2013. The collective claim shall contain in particular:

1. (a)

   the identity of the collective;

2. (b)

   the unique identification of each participating member of the collective;

3. (c)

   a reference to the application for support submitted by the collective;

4. (d)

   details of the agri-environment-climate operations concerned;

5. (e)

   particulars permitting the unambiguous identification of all agricultural parcels on the holding, their area expressed in hectares to two decimal places, their location and, where required, further specifications on the use of the agricultural parcels;

6. (f)

   where applicable, particulars permitting the unambiguous identification of non-agricultural land for which support under rural development measures is being claimed;

7. (g)

   where appropriate, any supporting documents needed to establish the eligibility for the measure concerned;

8. (ga)

   F95where appropriate, a statement by the beneficiary specifying which plans or reports are selected for the purposes of Article 43a(1) of Regulation (EU) No 1307/2013;

9. (h)

   a statement by the collective stating that the participating members are aware of the conditions pertaining to the rural development measures in question and of the financial consequences in cases of non-compliances.

Where the application for support submitted by the collective contains the information referred to in points (b), (d) and (h) of the first subparagraph, that information may be substituted by a reference to that application for support.

By way of derogation from the first subparagraph of paragraph 3, F96the relevant authority may decide that the collective claim shall contain all details in respect of the commitments covered by the agri-environment-climate operations.

The collective shall notify the competent authority of each commitment covered by the agri-environment-climate operations no later than 14 calendar days before the commitment is undertaken. F97The relevant authority shall provide for appropriate procedures for this notification.

Where the details in respect of the commitments covered by the agri-environment-climate operations are contained in the collective claim in accordance with paragraph 4, the commitments do not need to be notified in accordance with the first subparagraph of this paragraph, unless a change in type, timing or location of the commitment occurs.

After the final date of submission of the single application or payment claim, individual agricultural parcels F99or individual payment entitlements may be added or adjusted in the single application or payment claim provided that the requirements under the F100direct payment schemes or rural development measures concerned are respected.

Changes regarding the use of F101direct payment scheme or rural development measure in respect of individual agricultural parcels F102or in respect of payment entitlements already declared in the single application may be made under the same conditions.

Where the amendments referred to in the first and second subparagraphs have a bearing on any supporting documents or contracts to be submitted, such documents or contracts may be amended accordingly.

Where a beneficiary has been notified of the results of the preliminary checks as referred to in Article 11(4), that beneficiary may amend the single application or payment claim in order to include all necessary corrections with respect to individual parcels in accordance with the results of those cross-checks where they indicated a potential non-compliance.

Where checks by monitoring are carried out in accordance with Article 40a, and the competent authorities have communicated the provisional results at parcel level referred to in point (d) of Article 40a(1), beneficiaries may amend the single application or payment claim regarding adjustment or use of individual agricultural parcels checked by monitoring, provided that the requirements under the F104direct payment schemes or rural development measures concerned are respected. F105Individual payment entitlements may be added in cases where the amendment of the single application or payment claim leads to an increase of area declared.

Amendments made in accordance with the first and second subparagraphs of paragraph 1 shall be notified to the competent authority F106by 31 May of the year concernedF107except in claim year 2020, when they shall be notified by 30 JuneF108....

F109By way of derogation from the first subparagraph, F110the relevant authority may set an earlier final date for the notification of such amendments. That date shall however not be earlier than 15 calendar days after the final date for submitting the single application or payment claim fixed in accordance with Article 13(1).

F111By way of derogation from the first and second subparagraphs, F112the relevant authority may authorise the beneficiary to amend at a later date, in duly justified circumstances, the single application or payment claim as regards the use of the agricultural parcels declared for the purpose of F113the payment for agricultural practices beneficial for the climate and the environment in accordance with Chapter 3 of Title III of Regulation (EU) No 1307/2013 or the Natura 2000 and Water Framework Directive payment in accordance with Article 30 of Regulation (EU) No 1305/2013 provided that this does not put the beneficiary in a more favourable position with regard to the fulfilment of the obligations based on the initial application. In this case, F112the relevant authority may decide to set a final date for the notification of these amendments to the competent authority.

Such notifications shall be made in writing or via the geo-spatial aid application form.

Amendments following the preliminary checks made in accordance with paragraph 1a shall be notified to the competent authority at the latest nine calendar days after the final date for notification of the results of the preliminary checks referred to in Article 11(4) to the beneficiary.

Such notifications shall be made in writing or via the geo-spatial aid application form.

Amendments following the communication of provisional results at parcel level referred to in point (d) of Article 40a(1) made in accordance with paragraph 1b shall be notified to the competent authority by the date fixed by that competent authority at the level of the aid scheme or support measure or type of operation. The date shall be at least 15 calendar days before the date when the payment of the first instalment or the advances is to be made in accordance with Article 75 of Regulation (EU) No 1306/2013.

Such notifications shall be made in writing or via the geo-spatial aid application form.

Where the competent authority has already informed the beneficiary of any case of non-compliance in the single application or payment claim or where it has given notice to the beneficiary of its intention to carry out an on-the-spot check or where an on-the-spot check reveals any non-compliance, amendments in accordance with paragraph 1 shall not be authorised in respect of the agricultural parcels affected by the non-compliance.

F115For the purposes of the first subparagraph, the obligation provided in point (d) of Article 40a(1) shall not be considered as a notice to the beneficiary of a competent authority’s intention to carry out an on-the-spot check.

For the purpose of the identification of all agricultural parcels on the holding and/or non-agricultural land as referred to in Article 14(1)(d) and (e), the competent authority shall provide the beneficiary with the geo-spatial aid application form.

Paragraph 1 shall apply as follows:

1. (a)

   F120As from claim year 2016, to a number of beneficiaries corresponding to that required to cover at least 25 % of the total area determined for the basic payment scheme or the single area payment scheme in the previous year;

2. (b)

   F121As from claim year 2017, to a number of beneficiaries corresponding to that required to cover at least 75 % of the total area determined for the basic payment scheme or the single area payment scheme in the previous year;

3. (c)

   As from claim year 2018, to all beneficiaries.

Where the beneficiary is not in the position to submit the aid application F122and/or payment claim using the geo-spatial aid application form, the competent authority shall provide the beneficiary with either:

1. (a)

   the required technical assistance; or

2. (b)

   the pre-established forms and the corresponding graphic material in paper. In this case, the competent authority shall transcribe the information received from the beneficiary into the geo-spatial aid application form.

The pre-established forms provided to the beneficiary shall specify the maximum eligible area per reference parcel in accordance with points (a) and (b) of Article 5(2) of Delegated Regulation (EU) No 640/2014 and the area determined in the previous year per agricultural parcel for the purposes of the F123F124basic payment scheme F124farm sustainability transition payment scheme F125... and/or area-related rural development measure.

The graphic material supplied to the beneficiary in accordance with Article 72(3) of Regulation (EU) No 1306/2013 shall indicate the boundaries and the unique identification of the reference parcels as referred to in Article 5(1) of Delegated Regulation (EU) No 640/2014 and the boundaries of the agricultural parcels determined in the previous year as to enable the beneficiary to indicate correctly the size and location of each agricultural parcel. F126As from claim year 2016, it shall also indicate the type, size and location of the ecological focus areas determined in the previous year.

F128The beneficiary shall unambiguously identify and declare the area of each agricultural parcel F129and, where applicable, the type, size and location of the ecological focus areas. F130With regard to the greening payment, the beneficiary shall also specify the use of the agricultural parcels declared.

For this purpose, the beneficiary may confirm the information already provided in the pre-established form. However, where the information on the area, location or boundary of the agricultural parcel F131or, where applicable, the size and location of the ecological focus areas is not correct or is incomplete, the beneficiary shall correct or make changes to the pre-established form.

F128The beneficiary shall unambiguously identify and declare the area of each agricultural parcel. For this purpose, the beneficiary may confirm the information already provided in the pre-established form. However, where the information on the area, location or boundary of the agricultural parcel is not correct or is incomplete, the beneficiary shall correct or make changes to the pre-established form.

The competent authority shall assess on the basis of the corrections or complements provided by the beneficiaries in the pre-established form whether an update of the corresponding reference parcel is required, having regard to Article 5(3) of Delegated Regulation (EU) No 640/2014.

The beneficiary shall unambiguously identify and declare the area of each agricultural parcel.

Where the beneficiary is carrying out equivalent practices through national or regional environmental certification schemes in accordance with Article 43(3)(b) of Regulation (EU) No 1307/2013, paragraphs 4 and 5 of this Article shall apply mutatis mutandis as regards the pre-established form and the declaration by the beneficiary.

F133For the purpose of regional or collective implementations in accordance with Article 46(5) and 46(6) of Regulation (EU) No 1307/2013 and for the part of the ecological focus area obligations that the beneficiaries have to fulfil individually, beneficiaries participating in such regional or collective implementations shall unambiguously identify and declare, in respect of each agricultural parcel, the type, size and location of the ecological focus area in accordance with paragraph 5 of this Article. In their aid application or payment claim beneficiaries shall make reference to the declaration of a regional or collective implementation as referred to in Article 18 of this Regulation.

F134For areas used for the production of hemp in accordance with Article 32(6) of Regulation (EU) No 1307/2013, the single application shall contain:

1. (a)

   all information required for the identification of the parcels sown with hemp, indicating the varieties of seed used;

2. (b)

   an indication as to the quantities of the seeds used (kg per hectare);

3. (c)
   F135the official labels used on the packaging of the seeds in accordance with Council Directive 2002/57/EC15, and in particular Article 12 thereof, or any other document recognised as equivalent by the F136relevant authority; or, in the case of conservation varieties certified in accordance with Commission Directive 2008/62/EC16, the supplier's labels or the printed or stamped notice used on the packaging of the seeds of conservation varieties as referred to in Article 18 of that Directive.

F137By way of derogation from point (c) of the first subparagraph, where sowing takes place after the final date for submitting the single application, the labels shall be submitted by 30 June at the latest. However, for hemp cultivated as catch crop, the labels shall be submitted by a date to be fixed by the F138relevant authority but not later than 1 September. Where the labels also have to be submitted to other F139... authorities, the F138relevant authority may provide for those labels to be returned to the beneficiary once they have been submitted in accordance with that point. The labels returned shall be marked as used for an application.

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

F134Areas that are not used for the purposes of the aid schemes provided for in F141F142Titles III and IVF141Title III of Regulation (EU) No 1307/2013 or for the support schemes in the wine sector as referred to in Regulation (EC) No 1308/2013 shall be declared under one or more ‘other uses’ headings.

A beneficiary who does not apply for aid under any of the area-related aid schemes but applies for aid under another scheme listed in Annex 1 to Regulation (EU) 1307/2013 shall, if he has agricultural area at his disposal, declare those areas in his aid application form in accordance with Article 17 of this Regulation.

A F149livestock aid application as defined in point (15) of the second subparagraph of Article 2(1) of Delegated Regulation (EU) No 640/2014 or payment claim under animal-related support measures as defined in point (14) of the second subparagraph of Article 2(1) of that RegulationF149payment claim under animal related support measures as defined in point (14) of the second subparagraph of Article 2(1) of Delegated Regulation (EU) No 640/2014 shall contain all information necessary to establish eligibility for the F150aid and/or support, and in particular:

1. (a)

   the identity of the beneficiary;

2. (b)

   a reference to the single application if it has already been submitted;

3. (c)

   the number of animals of each type in respect of which F151a livestock aid application or a payment claim is being submitted and, for bovines, the identification code of the animals;

4. (d)

   where applicable, an undertaking by the beneficiary to keep the animals referred to in point (c) on his holding during a period, determined by the F152relevant authority, and information on the location or locations where the animals will be held including the period concerned;

5. (e)

   where appropriate, any supporting documents needed to establish the eligibility for the F153scheme or measure concerned;

6. (f)

   a statement by the beneficiary that he is aware of the conditions pertaining to the F154aid and/or support in question.

Every animal keeper shall have the right to obtain from the competent authority without constraint, at reasonable intervals and without excessive delay, information on the data relating to him and his animals kept in the computerised database for animals. When submitting his F155livestock aid application or payment claim, the beneficiary shall declare that that data is correct and complete or he shall rectify incorrect or complete missing data.

F156A relevant authority may decide that some of the information referred to in paragraph 1 need not to be included in the F157livestock aid application or payment claim, where it has already been communicated to the competent authority.

F158A relevant authority may introduce procedures by which data contained in the computerised database for animals may be used for the purposes of the F159livestock aid application or payment claim, provided that the computerised database for animals offers the level of assurance and implementation necessary for the proper management of the F160aid schemes or support measures involved at the level of individual animals.

The procedures referred to in the first subparagraph may consist of a system according to which a beneficiary may apply for F161aid and/or support in respect of all animals which, at a date or during a period determined by the F162relevant authority, qualify for F161aid and/or support on the basis of the data contained in the computerised database for animals.

In that case, F163the relevant authority shall take the necessary measures to guarantee that:

1. (a)

   in accordance with the provisions applicable to the F164aid scheme and/or support measure in question, the date or the period referred to in the second subparagraph are clearly identified and known to the beneficiary;

2. (b)

   the beneficiary is aware that any potentially eligible animals found not to be correctly identified or registered in the system for the identification and registration for animals shall count as animals found with non-compliances as referred to in Article 31 of Delegated Regulation (EU) No 640/2014.

For short production-cycle species supported under Article 33 of Regulation (EU) No 1305/2013 F166the relevant authority may, in the absence of a computerised database, introduce procedures by which data contained in the slaughter certificates or in other supporting documents are to be used for the purposes of the livestock payment claim. Those data shall offer the level of assurance and implementation necessary for the proper management of the support measure involved at the level of individual animals.

The procedures referred to in the first subparagraph may consist of a system according to which a beneficiary applies for support in respect of all animals which, at a date or during a period determined by the F167relevant authority, qualify for support on the basis of the data contained in the slaughter certificates or in other supporting documents.

In that case, F168the relevant authority shall take the necessary measures to guarantee that in accordance with the provisions applicable to the support measure in question, the date or the period referred to in the second subparagraph are clearly identified and known to the beneficiary.

F169A relevant authority may provide that some of the information referred to in paragraph 1 can or shall be forwarded via a body or bodies approved by them. However, the beneficiary shall remain responsible for the data transmitted.

Applications for allocation of payment entitlements or the increase of the value of payment entitlements under the F171basic payment schemeF171farm sustainability transition payment scheme in accordance with F172... Article 24, Article 30, except paragraph 7(e), F173... of Regulation (EU) No 1307/2013 shall be submitted by a date to be fixed by the F174relevant authority. The date fixed shall not be later than 15 May of the relevant calendar year.

F175...

F176A relevant authority may decide that the application for allocation of payment entitlements shall be submitted at the same time as the aid application under the F177basic payment schemeF177farm sustainability transition payment scheme.

Where, after payment entitlements have been allocated to beneficiaries in accordance with Regulation (EU) No 1307/2013, it is established that the number of payment entitlements allocated was too high, the number of allocated payment entitlements in excess shall revert to the national reserve or regional reserves referred to in Article 30 of Regulation (EU) No 1307/2013.

Where the error referred to in the first subparagraph was made by the competent authority or by another authority and if the error could not reasonably have been detected by the beneficiary, the value of the remaining payment entitlements allocated to that beneficiary shall be adjusted accordingly.

Where the beneficiary concerned by the allocation of a too high number of payment entitlements, meanwhile, has transferred payment entitlements to other beneficiaries, the transferees shall also be bound by the obligation provided for in the first subparagraph in proportion to the number of payment entitlements which have been transferred to them if the beneficiary to whom the payment entitlements had initially been allocated does not have a sufficient number of payment entitlements at his disposal to cover the number of undue payment entitlements.

Where, after payment entitlements have been allocated to beneficiaries in accordance with Regulation (EU) No 1307/2013, it is established that F179the payments received by a beneficiary for 2014 as referred to in the first subparagraph of Article 26(2) of that Regulation F180(as it had effect immediately before exit day), or the value of the payment entitlements held by a beneficiary on the date of submission of his application for 2014 as referred to in the first subparagraph of Article 26(3) of that Regulation F181(as it had effect immediately before exit day), or the unit value of the payment entitlements as referred to in Article 26(5) of that Regulation F182(as it had effect immediately before exit day), or the increase of the unit value of payment entitlements as provided for in Article 30(10) of that Regulation F183..., were too high, the value of those payment entitlements based on the incorrect reference for the beneficiary concerned shall be adjusted accordingly.

That adjustment shall also be carried out in respect of payment entitlements which have, meanwhile, been transferred to other beneficiaries.

The value of the reduction shall revert to the national reserve or regional reserves referred to in Article 30 of Regulation (EU) No 1307/2013.

Where, after payment entitlements have been allocated to beneficiaries in accordance with Regulation (EU) No 1307/2013, it is established that for the same beneficiary, both the situation referred to in paragraph 1 and that referred to in paragraph 2 occurred, the adjustment of the value of all payment entitlements as referred to in paragraph 2 shall be made before the undue payment entitlements revert to the national reserve or regional reserves in accordance with paragraph 1.

The adjustments of the number and/or value of payment entitlements provided for in this Article shall not lead to a systematic recalculation of the remaining payment entitlements.

F184F185The relevant authority may decide not to recover undue payment entitlements where the total value of those payment entitlements as set out in the electronic register for identification and registration of payment entitlements at the time the verifications in view of making the adjustments provided for in this Article take place is EUR 50 or less for any of the years in which the F186basic payment scheme F186farm sustainability transition payment scheme is implemented in accordance with Regulation (EU) No 1307/2013.

F184On duly justified grounds, the Secretary of State may decide not to recover undue payment entitlements.

Undue amounts paid in respect of the claim years preceding the adjustments shall be recovered in accordance with Article 7 of this Regulation. When determining such undue amounts, account shall be taken of the impact of the adjustments provided for in this Article on the number and, where relevant, the value of the payment entitlements for all the years concerned.

In applying the control rate set out in point (a) of paragraph 1, priority must be given to areas other than those of permanent grassland and/or permanent crops.

When applying the control rates set out in points (a) and (c) of paragraph 1, priority must be given to areas other than those of permanent grassland and/or permanent crops.

For the greening payment, the control sample for on-the-spot checks carried out each year shall cover at least:

1. (a)
   3% of all beneficiaries required to observe the agricultural practices beneficial for the climate and the environment (hereinafter referred to as ‘the greening practices’), and who are not part of the control populations referred to in points (b) and (c) (hereinafter referred to as ‘the control population for greening’); this sample shall, at the same time, cover at least 3% of all beneficiaries having areas covered with permanent grasslands which are environmentally sensitive in areas covered by Council Directive 92/43/EEC18 or Directive 2009/147/EC of the European Parliament and of the Council19 and further sensitive areas referred to in Article 45(1) of Regulation (EU) No 1307/2013;
2. (b)

   3 % of:

   1. (i)

      either all beneficiaries qualifying for the greening payment who are exempted from ... the ecological focus area obligations by not meeting the thresholds referred to in Article 46 of Regulation (EU) No 1307/2013 and who are not concerned by the obligations referred to in Article 45 of that Regulation;

   2. (ii)

      or, in the years where Article 44 of Delegated Regulation (EU) No 639/2014 does not apply ..., the beneficiaries qualifying for the greening payment who are exempted from ... the ecological focus area obligations by not meeting the thresholds referred to in Article 46 of Regulation (EU) No 1307/2013 and who are not concerned by the obligations referred to in Article 45(1) of that Regulation;

3. (c)

   5 % of all beneficiaries required to observe the greening practices and using ... environmental certification schemes as referred to in Article 43(3)(b) of Regulation (EU) No 1307/2013;

4. (d)

   5 % of all beneficiaries participating in ... implementation in accordance with Article 46(5) of Regulation (EU) No 1307/2013;

5. (e)

   5 % of the collective implementation in accordance with Article 46(6) of Regulation (EU) No 1307/2013;

6. (f)

   100 % of the contiguous structures of adjacent ecological focus areas as referred to in Article 46(3) of Delegated Regulation (EU) No 639/2014;

7. (g)

   100 % of all parcels on which an obligation to re-convert land into land under permanent grassland according to Article 42 of Delegated Regulation (EU) No 639/2014 applies;

8. (h)

   20 % of all beneficiaries with an obligation to re-convert land into land under permanent grassland according to Article 44(2) and (3) of Delegated Regulation (EU) No 639/2014.

Where the ecological focus areas are not identified in the identification system for agricultural parcels as referred to in Article 70 of Regulation (EU) No 1306/2013, the control rate laid down in points (a) and (c) to (e) of paragraph 1 shall be supplemented by 5 % of all beneficiaries of the respective control population who are required to have ecological focus area on the agricultural area in accordance with Articles 43 and 46 of Regulation (EU) No 1307/2013.

However, the first subparagraph shall not apply where the administration and control system ensures that all ecological focus areas declared are identified and, where applicable, recorded in the identification system for agricultural parcels in accordance with Article 5(2)(c) of Delegated Regulation (EU) No 640/2014 before payment.

By way of derogation from Article 31, the control sample for on-the-spot checks for the greening payment in respect of claim year 2020 is 3% of all beneficiaries required to observe the agricultural practices beneficial for the climate and the environment.

The control rate in paragraph 1 must include at least 3% of all beneficiaries having areas covered with permanent grasslands that are environmentally sensitive in areas covered by Council Directive 92/43/EEC or Directive 2009/147/EC of the European Parliament and of the Council and further sensitive areas referred to in Article 45(1) of EUR 2013/1307.

In applying the control rate set out in paragraph 1, priority must be given to areas other than those of permanent grassland and/or permanent crops.

By way of derogation from Article 31, the control sample for on-the-spot checks for the greening payment in respect of claim year 2020 is 3% of all beneficiaries required to observe the agricultural practices beneficial for the climate and the environment.

The control rate in paragraph 1 must include at least 3% of all beneficiaries having areas covered with permanent grasslands that are environmentally sensitive in areas covered by Council Directive 92/43/EEC or Directive 2009/147/EC of the European Parliament and of the Council and further sensitive areas referred to in Article 45(1) of Regulation (EU) No 1307/2013.

When applying the control rate set out in paragraph 1, priority must be given to areas other than those of permanent grassland and/or permanent crops.

The control sample for on-the-spot checks carried out each year shall cover at least 5 % of all beneficiaries applying for rural development measures. For the measures provided for in Articles 28 and 29 of Regulation (EU) No 1305/2013, the control rate of 5 % shall be achieved at the level of the individual measure.

That control sample shall also represent at least 5 % of the beneficiaries of Article 28 of Regulation (EU) No 1305/2013 that include equivalent practices as referred to in Article 43(3) of Regulation (EU) No 1307/2013.

By way of derogation from paragraph 1, in the case of groups of persons as referred to in Articles 28 and 29 of Regulation (EU) No 1305/2013, each individual member of such groups may be considered as beneficiary for the purpose of calculation of the control rate laid down in paragraph 1.

By way of derogation from paragraphs 1 and 2, where a F234relevant authority uses the option to introduce the collective claim, the control sample for on-the-spot checks carried out each year shall cover at least:

1. (a)

   5 % of all collectives submitting a collective claim; this sample shall, at the same time, cover at least 5 % of the total area declared in the collective claim in accordance with Article 14a(3); and

2. (b)

   5 % of the commitments notified in accordance with Article 14a(5).

For beneficiaries of multi-annual support granted in accordance with Articles 21(1)(a), 28, 29 and 34 of Regulation (EU) No 1305/2013 or Article 36(a)(iv) and (v), (b)(i), (iii) and (v) of Regulation (EC) No 1698/2005 involving payments exceeding five years, the F235relevant authority may decide, after the fifth year of payment, to check at least 2,5 % of those beneficiaries.

The first subparagraph shall apply to support granted under the third subparagraph of Article 28(6) of Regulation (EU) No 1305/2013 after the fifth year of the payment for the relevant commitment.

F65Where a F236relevant authority uses the option to introduce the collective claim, this paragraph shall not apply to collectives.

Beneficiaries checked under paragraph 3 shall not be taken into account for the purpose of paragraph 1.

The control sample for on-the-spot checks carried out each year shall cover at least 3% of all beneficiaries applying for rural development measures. ...

...

By way of derogation from paragraph 1, in the case of groups of persons as referred to in Articles 28 and 29 of Regulation (EU) No 1305/2013, each individual member of such groups may be considered as beneficiary for the purpose of calculation of the control rate laid down in paragraph 1.

By way of derogation from paragraphs 1 and 2, where a relevant authority uses the option to introduce the collective claim, the control sample for on-the-spot checks carried out each year shall cover at least:

1. (a)

   5 % of all collectives submitting a collective claim; this sample shall, at the same time, cover at least 5 % of the total area declared in the collective claim in accordance with Article 14a(3); and

2. (b)

   5 % of the commitments notified in accordance with Article 14a(5).

For beneficiaries of multi-annual support granted in accordance with Articles 21(1)(a), 28, 29 and 34 of Regulation (EU) No 1305/2013 or Article 36(a)(iv) and (v), (b)(i), (iii) and (v) of Regulation (EC) No 1698/2005 involving payments exceeding five years, the relevant authority may decide, after the fifth year of payment, to check at least 2,5 % of those beneficiaries.

The first subparagraph shall apply to support granted under the third subparagraph of Article 28(6) of Regulation (EU) No 1305/2013 after the fifth year of the payment for the relevant commitment.

Where a relevant authority uses the option to introduce the collective claim, this paragraph shall not apply to collectives.

Beneficiaries checked under paragraph 3 shall not be taken into account for the purpose of paragraph 1.

The control sample for on-the-spot checks carried out each year shall cover at least 5 % of all beneficiaries applying for rural development measures. ...

...

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

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

For beneficiaries of multi-annual support granted in accordance with Articles 21(1)(a), 28, 29 and 34 of Regulation (EU) No 1305/2013 or Article 36(a)(iv) and (v), (b)(i), (iii) and (v) of Regulation (EC) No 1698/2005 involving payments exceeding five years, the relevant authority may decide, after the fifth year of payment, to check at least 2,5 % of those beneficiaries.

The first subparagraph shall apply to support granted under the third subparagraph of Article 28(6) of Regulation (EU) No 1305/2013 after the fifth year of the payment for the relevant commitment.

Where a relevant authority uses the option to introduce the collective claim, this paragraph shall not apply to collectives.

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

For animal aid schemes, the control sample for on-the-spot checks carried out each year shall for each of the aid schemes cover at least 3% of all beneficiaries applying for that respective aid scheme.

...

The control sample selected shall cover at least 3% of all animals for which aid is applied for per aid scheme.

By way of derogation from the first sub-paragraph, the control sample for the on-the-spot checks in respect of claim years 2020 and 2021 must cover at least 1% of all beneficiaries applying for that respective aid scheme. By way of derogation from the second-subparagraph, the control sample selected shall cover at least 1% of all animals for which aid is applied for per aid scheme.

Where applicable, the control sample for on-the-spot checks carried out each year shall cover 10 % of other services, bodies or organisations that provide evidence to verify the compliance with the eligibility criteria, commitments and other obligations as referred to in Article 28(2).

The beneficiaries who were subject to a reduced administrative penalty in accordance with Article 19a(2) of Delegated Regulation (EU) No 640/2014 for an area-related F241aid scheme or support measure following an over-declaration identified in the course of an on-the-spot check shall be subject to a follow-up on-the-spot check for that given F241aid scheme or support measure in the following claim year.

The follow-up on-the-spot check referred to in paragraph 1 shall not be necessary where the over-declaration identified has led to an up-date of the reference parcels concerned in the identification system for agricultural parcels as referred to in Article 5 of Delegated Regulation (EU) No 640/2014 in the year of the finding or where checks by monitoring as referred to in Article 40a of this Regulation are carried out for the F241aid scheme or support measure in question in the following claim year and allow the competent authority to conclude whether the administrative penalty set out in Article 19a(3) of Delegated Regulation (EU) No 640/2014 shall be applied.

Paragraphs 1 and 2 do not apply in respect of claim year 2020.

Applications or applicants found not to be admissible or not eligible for payment at the time of submission or after administrative or on-the-spot checks shall not form part of the control population.

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

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

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

For the purposes of F247... point (c) of Article 40a(1), the same beneficiary may be used to respect several of the minimum control rates concerned provided that the effectiveness of selection of the risk based samples required therein is not affected.

The on-the-spot check regarding the selected beneficiaries may be limited to the F248... rural development measure they have been selected for if the minimum control rates of the other F249... support measures they applied for are already respected.

The effectiveness of the risk analysis shall be assessed and updated on an annual basis as follows:

1. (a)

   by establishing the relevance of each risk factor;

2. (b)

   F193by comparing the results as regards the difference between the area declared and the area determined of the risk based and randomly selected sample; or by comparing the results as regards the difference between the animals declared and the animals determined of the risk based and randomly selected sample;

3. (c)

   by taking into account the specific situation and, where appropriate, evolution of the risk factors’ relevance in the F250relevant territory;

4. (d)

   by taking into account the nature of the non-compliance that prompt an increase of the control rate in accordance with Article 35.

The competent authority shall keep records of the reasons for the selection of each beneficiary for an on-the-spot check. The inspector carrying out the on-the-spot check shall be informed accordingly prior to the commencement of the on-the-spot check.

Where appropriate, a partial selection of the control sample may be made on the basis of available information before the final date referred to in Article 13. That provisional sample shall be completed when all relevant F251... payment claims are available.

Applications or applicants found not to be admissible or not eligible for payment at the time of submission or after administrative or on-the-spot checks shall not form part of the control population.

For the purposes of Article 32 ..., between 20 % and 25 % of the minimum number of beneficiaries to be subject to on-the-spot checks and, where Article 32(2a) applies, 100 % of the collectives and between 20 % and 25 % of the commitments to be subject to on-the-spot checks shall be selected randomly. The remaining number of beneficiaries and commitments to be subject to on-the-spot checks shall be selected on the basis of a risk analysis. Where the competent authority decides to apply the option provided for in Article 40a(4) or in Article 70a(3), findings revealed by checks by monitoring in the previous claim year shall be taken into account in the risk analysis.

For the purposes of Article 32 ..., the random part of the sample may also include either the beneficiaries already randomly selected in accordance with points (a), (b) and (c) of paragraph 2 or the additional beneficiaries selected randomly in accordance with the second subparagraph of Article 26(4) or both. The number of such beneficiaries in the control sample shall not go beyond their proportion in the control population.

For the purposes of Article 32, the relevant authority may, as a result of the risk analysis, select specific rural development measures which apply to the beneficiaries.

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

For the purposes of Article 32 and point (c) of Article 40a(1), the same beneficiary may be used to respect several of the minimum control rates concerned provided that the effectiveness of selection of the risk based samples required therein is not affected.

The on-the-spot check regarding the selected beneficiaries may be limited to the ... rural development measure they have been selected for if the minimum control rates of the other ... support measures they applied for are already respected.

The effectiveness of the risk analysis shallmay be assessed and updated on an annual basis as follows:

1. (a)

   by establishing the relevance of each risk factor;

2. (b)

   by comparing the results as regards the difference between the area declared and the area determined of the risk based and randomly selected sample; or by comparing the results as regards the difference between the animals declared and the animals determined of the risk based and randomly selected sample;

3. (c)

   by taking into account the specific situation and, where appropriate, evolution of the risk factors’ relevance in the constituent nationrelevant territory;

4. (d)

   by taking into account the nature of the non-compliance that may prompt an increase of the control rate in accordance with Article 35.

The competent authority shall keep records of the reasons for the selection of each beneficiary for an on-the-spot check. The inspector carrying out the on-the-spot check shall be informed accordingly prior to the commencement of the on-the-spot check.

Where appropriate, a partial selection of the control sample may be made on the basis of available information before the final date referred to in Article 13. That provisional sample shall be completed when all relevant aid applications or payment claims are available.

Applications or applicants found not to be admissible or not eligible for payment at the time of submission or after administrative or on-the-spot checks shall not form part of the control population.

For the purposes of Articles 30 and 31, the sample selection shall ensure that:

1. (a)

   between 20% and 25% of the minimum number of beneficiaries subject to on-the-spot checks in accordance with points (a) to (f) and (h) of Article 30 and in points (a) to (e) of Article 31(1) shall be selected randomly;

2. (b)

   between 20% and 25% of the minimum number of beneficiaries subject to on-the-spot checks in accordance with point (b) of Article 31(1) shall be selected randomly;

3. (c)

   between 4 % and 5 % of the control population referred to in point (h) of Article 31(1) shall be selected randomly;

4. (d)

   the remaining number of beneficiaries in the control sample referred to in points (a) to (e) and (h) of Article 31(1) shall be selected on the basis of a risk analysis.

For the purposes of Article 31, the relevant authority shall ensure representativeness of the control sample as regards the different practices.

The additional beneficiaries to be subject to on-the-spot checks for the purposes of the first subparagraph of Article 31(3) shall be selected on the basis of a risk analysis.

Where the competent authority decides to apply the option provided for in Article 40a(4) or in Article 70a(3), findings revealed by checks by monitoring in the previous claim year shall be taken into account in the risk analysis referred to in point (d) of the second subparagraph.

For the purposes of Article 32 ..., between 20 % and 25 % of the minimum number of beneficiaries to be subject to on-the-spot checks and, where Article 32(2a) applies, 100 % of the collectives and between 20 % and 25 % of the commitments to be subject to on-the-spot checks shall be selected randomly. The remaining number of beneficiaries and commitments to be subject to on-the-spot checks shall be selected on the basis of a risk analysis. Where the competent authority decides to apply the option provided for in Article 40a(4) or in Article 70a(3), findings revealed by checks by monitoring in the previous claim year shall be taken into account in the risk analysis.

For the purposes of Article 32 ..., the random part of the sample may also include either the beneficiaries already randomly selected in accordance with points (a), (b) and (c) of paragraph 2 or the additional beneficiaries selected randomly in accordance with the second subparagraph of Article 26(4) or both. The number of such beneficiaries in the control sample shall not go beyond their proportion in the control population.

For the purposes of Article 32, the relevant authority may, as a result of the risk analysis, select specific rural development measures which apply to the beneficiaries.

For the purposes of Article 33, between 20% and 25% of the minimum number of beneficiaries to be subject to on-the-spot checks shall be selected randomly. The remaining number of beneficiaries to be subject to on-the-spot checks shall be selected on the basis of a risk analysis.

For the purposes of Article 33, the random part of the sample may also include either the beneficiaries already randomly selected in accordance with points (a), (b) and (c) of paragraph 2 or the additional beneficiaries selected randomly in accordance with the second subparagraph of Article 26(4) or both. The number of such beneficiaries in the control sample shall not go beyond their proportion in the control population.

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

For the purposes of Articles 30, 31 and 33Article 32 and point (c) of Article 40a(1), the same beneficiary may be used to respect several of the minimum control rates concerned provided that the effectiveness of selection of the risk based samples required therein is not affected.

The on-the-spot check regarding the selected beneficiaries may be limited to the aid scheme or rural development measure they have been selected for if the minimum control rates of the other aid schemes or support measures they applied for are already respected.

The effectiveness of the risk analysis shall be assessed and updated on an annual basis as follows:

1. (a)

   by establishing the relevance of each risk factor;

2. (b)

   by comparing the results as regards the difference between the area declared and the area determined of the risk based and randomly selected sample; or by comparing the results as regards the difference between the animals declared and the animals determined of the risk based and randomly selected sample;

3. (c)

   by taking into account the specific situation and, where appropriate, evolution of the risk factors’ relevance in the constituent nationrelevant territory;

4. (d)

   ...

The competent authority shall keep records of the reasons for the selection of each beneficiary for an on-the-spot check. The inspector carrying out the on-the-spot check shall be informed accordingly prior to the commencement of the on-the-spot check.

Where appropriate, a partial selection of the control sample may be made on the basis of available information before the final date referred to in Article 13. That provisional sample shall be completed when all relevant aid applications or payment claims are available.

The control rates laid down in this Chapter may only be reduced in respect of F256aid schemes or support measures set out in this Article.

F257By way of derogation from F258Article 30(a) F259and (b), F260the relevant authority may, as regards the basic payment scheme F261F262and the re-distributive paymentF263..., decide to reduce the minimum level of on-the-spot checks carried out each year per scheme to F2641%.

F118The first subparagraph shall only apply if a system of spatial intersection of all aid applications with the identification system for agricultural parcels is in place F265....

In respect of claim year 2015 the rate of errors found in the random sample checked on the spot shall not exceed 2 % in the preceding two financial years. That rate of errors shall be certified by the Member State in accordance with the established methodology drawn up at Union level.

F257By way of derogation from F266Article 30(a) F267and (b), F268the relevant authority may, as regards the basic payment scheme F269F270and the re-distributive paymentF271..., decide to reduce the control sample to the sample selected in accordance with point (a) of the first subparagraph of Article 34(2) if checks based on the ortho-images used for the update of the identification system for agricultural parcels referred to in Article 70 of Regulation (EU) No 1306/2013 are carried out.

F272The first subparagraph shall only apply if F273the relevant authority systematically update the identification system for agricultural parcels and check all beneficiaries in the entire area covered by it within a period of maximum three years, covering per year at least 25 % of the eligible hectares recorded in the identification system for agricultural parcels. However, that minimum coverage percentage per year shall not apply to F273the relevant authority with less than 150 000 eligible hectares recorded in the identification system for agricultural parcels.

Before applying the first subparagraph, F274the relevant authority shall have made a complete update of the identification system for agricultural parcels concerned within the previous three years.

The ortho-images used for the update shall not be older than 15 months at the date of their use for the purpose of the update of the identification system for agricultural parcels.

The quality of the identification system for agricultural parcels as assessed in accordance with Article 6 of Delegated Regulation (EU) No 640/2014 during the two years preceding the application of the first subparagraph shall be sufficient to ensure effective verification of the conditions under which aid is granted.

The decision referred to in the first subparagraph may be taken at national level or regional level. For the purposes of this subparagraph, a region shall be comprised of the whole area covered by one or more autonomous identification systems for agricultural parcels.

F118The third and fourth subparagraphs of paragraph 2 shall apply mutatis mutandis .

By way of derogation from Article 32(1), F276the relevant authority may decide to reduce the minimum level of on-the-spot checks carried out each calendar year to 3 % of the beneficiaries applying for rural development measures in the scope of the integrated system.

F277F118However, the first subparagraph shall not apply in relation to beneficiaries that include equivalent practices as referred to in Article 43(3) of Regulation (EU) No 1307/2013 and to collectives and commitments which are selected in accordance with Article 32(2a) of this Regulation.

F118F279Paragraphs F2802, 3 and 4F2802 and 3F279Paragraph 4 shall only apply if the general conditions for reducing the minimum level of on-the-spot checks laid down in Article 41 of Implementing Regulation (EU) No 908/2014 are fulfilled. Where any of those conditions F281or the conditions laid down in paragraphs 2 or 3 of this Article are no longer met, F282the relevant authority shall immediately revoke their decision to reduce the minimum level of on-the-spot checks and shall apply the minimum level of on-the-spot checks provided for in F283F284Article 30(a) F285and (b) and/or Article 32 as of the following claim year for the F286aid schemes or support measures concerned.

F287By way of derogation from Article 30(g), where a F288relevant authority introduces a system of prior approval for the cultivation of hemp, the minimum level of on-the-spot checks may be reduced to 20 % of the areas declared for the production of hemp as referred to in Article 32(6) of Regulation (EU) No 1307/2013.

F289...

On-the-spot checks shall cover all the agricultural parcels F291for which aid is requested under schemes listed in Annex I to Regulation (EU) No 1307/2013 and/or for which support is requested under rural development measures in the scope of the integrated system.

With regard to the control of the rural development measures provided for in Article 21(1)(a) and Articles 30 and 34 of Regulation (EU) No 1305/2013, the on-the-spot checks shall also cover all non-agricultural land for which support is being claimed.

The competent authority shall assess on the basis of the control results whether an update of the corresponding reference parcels is required, having regard to Article 5(3) of Delegated Regulation (EU) No 640/2014.

On-the-spot checks shall cover the area measurement and verification of the eligibility criteria, commitments and other obligations of the area declared by the beneficiary under the F292aid schemes and/or support measures referred to in paragraph 1.

F293For beneficiaries applying for direct payments under the schemes listed in Annex I to Regulation (EU) No 1307/2013 and whose agricultural areas are mainly areas naturally kept in a state suitable for grazing or cultivation, the on-the-spot check shall also cover the verification of the minimum activity carried out on those areas as referred to in Article 9(1) of Regulation (EU) No 1307/2013.

On-the-spot checks related to greening practices shall cover all obligations to be respected by the beneficiary. Where relevant, the compliance with the thresholds referred to in F295Articles 44 andF295Article 46 of Regulation (EU) No 1307/2013 for exemption from the practices shall form part of on-the-spot checks. This subparagraph shall also apply to the on-the-spot checks carried out in respect of F296... environmental certification schemes as referred to in Article 43(3)(b) of Regulation (EU) No 1307/2013.

Where the on-the-spot check concerns F297... implementation in accordance with Article 46(5) of Regulation (EU) No 1307/2013, the on-the-spot check shall also cover the area measurement and verification of the obligations imposed by the F298relevant authority upon the beneficiaries or groups of beneficiaries.

Where the on-the-spot check concerns a collective implementation in accordance with Article 46(6) of Regulation (EU) No 1307/2013, the on-the-spot check shall cover:

1. (a)

   the verification of the criteria for close proximity set in accordance with Article 47(1) of Delegated Regulation (EU) No 639/2014;

2. (b)

   the area measurement and verification of the criteria for the contiguous ecological focus areas;

3. (c)

   the additional obligations imposed by the F299relevant authority upon the beneficiaries or groups of beneficiaries, where appropriate;

4. (d)

   the individual greening obligations to be respected by the beneficiary participating in the collective implementation.

For collectives selected in accordance with point (a) of Article 32(2a), the on-the-spot checks shall cover the area measurement, verification of the eligibility criteria and other obligations of the area declared in the collective claim.

For commitments selected in accordance with point (b) of Article 32(2a), the on-the-spot check shall cover the verification of the commitments notified.

The actual area measurement of the agricultural parcel as part of an on-the-spot check may be limited to a randomly selected sample of at least 50 % of the agricultural parcels for which F301an aid application orF301a payment claim has been submitted under the F302area-related aid schemes or rural development measures. When this sample check reveals any non-compliance, all agricultural parcels shall be measured or conclusions from the sample shall be extrapolated.

Agricultural parcel areas shall be measured by any means proven to assure measurement of quality at least equivalent to that required by applicable technical standards, as drawn up F303in the relevant constituent nation.

The competent authority may make use of remote sensing in accordance with Article 40 and Global Navigation Satellite Systems (GNSS) techniques where possible.

A single value buffer tolerance shall be defined for all area measurements performed using GNSS and/or ortho-imagery. For this purpose the measurement tools used shall be validated for at least one validation class of buffer tolerance below the single value. However, the single tolerance value shall not exceed 1.25 m.

The maximum tolerance with regard to each agricultural parcel shall not, in absolute terms, exceed 1.0 ha.

However, for the measures referred to in Article 21(1)(a) and Articles 30 and 34 of Regulation (EU) No 1305/2013 as far as the forestry area is concerned, F304the relevant authority may define appropriate tolerances, which shall in no case be greater than twice the tolerance set out in the first subparagraph of this paragraph.

The total area of an agricultural parcel may be taken into account in the measurement provided that it is fully eligible. In other cases the net eligible area shall be taken into account. F305For that purpose, the pro-rata system as referred to in Article 10 of Delegated Regulation (EU) No 640/2014 may be applied, where appropriate.

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

Where F193Article 17 of Delegated Regulation (EU) No 640/2014 may lead to an artificial division of the area of adjacent agricultural parcels with a homogeneous land cover type into separate agricultural parcels, the measurement of this area of adjacent agricultural parcels with a homogeneous land cover type shall be combined in one single measurement of the agricultural parcels concerned.

Where appropriate, F193separate measurements shall be carried out on the agricultural parcel for the purpose of the F308basic payment schemeF308farm sustainability transition payment schemeF309... in accordance with Chapter 1 of Title III of Regulation (EU) No 1307/2013 and a spatially different overlapping agricultural parcel for the purpose of the remaining area-related aid schemes and/or rural development measures, where appropriate.

Where the eligible area measured in accordance with F312paragraphs 1 to 8F312this Article is different from the area established as a basis for the calculation of the F313aid or support where checks by monitoring are applied in accordance with Article 40a, the area measured in accordance with F314paragraphs 1 to 8 of this Article shall prevail.

In the specific case of agricultural parcels of permanent grassland F315or permanent pastures used in common by several beneficiaries, the actual measurement may be substituted by checks based on the ortho-images used for the update of the identification system for agricultural parcels referred to in Article 70 of Regulation (EU) No 1306/2013 provided that those checks are carried out on all such parcels within a period of maximum three years and the competent authority can demonstrate effective operational procedures complying with the rules laid down in Article 7 of this Regulation and effects the recoveries appropriately.

The verification of the eligibility criteria, commitments and other obligations of the agricultural parcels as part of an on-the-spot check may be limited to a randomly selected sample of at least 50 % of the agricultural parcels for which F316an aid application orF316a payment claim has been submitted under the F317area-related aid schemes or rural development measures.

However, for rural development measures, when some eligibility criteria, commitments or other obligations of the agricultural parcels cannot be adequately checked when limiting the checks to a randomly selected sample in accordance with the first subparagraph, an additional risk based sample allowing the checking of these criteria, commitments or obligations shall be selected.

When the randomly selected sample or the risk based sample reveal any non-compliance, all agricultural parcels shall be subject to the verification of the eligibility criteria, commitments and other obligations or conclusions from the sample shall be extrapolated.

The eligibility of agricultural parcels shall be verified by any appropriate means, including evidence provided by the beneficiary at the request of the competent authority. That verification shall also include a verification of the crop, where appropriate. To that end, additional proof shall be requested where necessary.

F319For permanent grassland which can be grazed and which forms part of the established local practices where grasses and other herbaceous forage are traditionally not predominant in grazing areas, the reduction coefficient according to Article 32(5) of Regulation (EU) No 1307/2013 may be applied, where appropriate, to the eligible area measured in accordance with Article 38 of this Regulation. Where an area is used in common, the competent authorities shall allocate it between the individual beneficiaries in proportion to their use or right of use of it.

F320Landscape features declared by beneficiaries as ecological focus area that are not included in the eligible area in accordance with Articles 9 and 10 of Delegated Regulation (EU) No 640/2014 shall be verified according to the same principles as applicable to the eligible area.

In the specific case of agricultural parcels of permanent grassland or permanent pastures used in common by several beneficiaries, the verification of the eligibility criteria, commitments and other obligations may be substituted by checks based on the ortho-images used for the update of the identification system for agricultural parcels referred to in Article 70 of Regulation (EU) No 1306/2013 provided that those checks are carried out on all such parcels within a period of maximum three years and the competent authority can demonstrate effective operational procedures complying with the rules laid down in Article 7 of this Regulation and effects the recoveries appropriately.

Competent authorities may carry out checks by monitoring. Where they elect to do so, they shall:

1. (a)

   set up a procedure of regular and systematic observation, tracking and assessment of all eligibility criteria, commitments and other obligations which can be monitored by Copernicus Sentinels satellite data or other data with at least equivalent value, over a period of time that allows to conclude on the eligibility of the aid or support requested;

2. (b)

   carry out, where necessary, and in order to conclude on the eligibility of aid or support requested, appropriate follow-up activities;

3. (c)

   carry out checks for 5 % of the beneficiaries concerned by eligibility criteria, commitments and other obligations which cannot be monitored by Copernicus Sentinels satellite data or other data with at least equivalent value, and are relevant to conclude on the eligibility of aid or support. Between 1 % and 1,25 % of the beneficiaries shall be selected randomly. The remaining beneficiaries shall be selected on the basis of a risk analysis;

4. (d)

   F98inform beneficiaries about the decision to carry out checks by monitoring and set up appropriate tools to communicate with beneficiaries on at least provisional results at parcel level of the procedure set up in accordance with point (a) of this subparagraph, warning alerts and evidence requested for the purposes of points (b) and (c). Competent authorities shall ensure timely communication with the beneficiaries to support them in fulfilling the eligibility criteria, commitments and other obligations and allow the beneficiaries to address or remedy the situation before the conclusions are drawn in the control report referred to in Article 41.

F98For the purposes of points (b) and (c) of the first subparagraph, physical inspections in the field shall be carried out when relevant evidence, including evidence provided by the beneficiary at the request of the competent authority, does not allow to conclude on the eligibility of the aid or support requested. Physical inspections in the field may be limited to checks of eligibility criteria, commitments and other obligations that are relevant to conclude on the eligibility of the aid or support requested. These physical inspections shall include area measurement only where necessary to conclude on the compliance with these eligibility criteria, commitments or other obligations.

F310For the purposes of point (c) of the first subparagraph, checks of eligibility criteria, commitments and other obligations which cannot be monitored by Copernicus Sentinels satellite data or other data with at least equivalent value may be limited to a sample of at least 50 % of the agricultural parcels declared by a beneficiary. The competent authority may select this sample randomly or on the basis of other criteria. Where the sample of agricultural parcels is selected randomly and the checks reveal any non-compliance, the competent authority shall extrapolate the conclusions from the sample or shall check all agricultural parcels. Where the sample is selected on the basis of other criteria and the checks reveal any non-compliance, the competent authority shall check all agricultural parcels.

Where the competent authority carries out checks by monitoring in accordance with paragraph 1, can demonstrate effective operational procedures fulfilling the requirements laid down in Articles 7, 17 and 29 of this Regulation and has proven the quality of the identification system for agricultural parcels as assessed in accordance with Article 6 of Delegated Regulation (EU) No 640/2014:

1. (a)

   Articles 25, 26, F32530, 31, 32, 34, 35, 36, Article 37(2), (3) and (4) and Articles 38 and 40 of this Regulation do not apply;

2. (b)

   F326the verification of tetrahydrocannabinol content in hemp growth carried out in accordance with Article 9 of Delegated Regulation (EU) No 639/2014 shall be made for 30 % of the area or 20 % of the area in case the F327relevant authority has a system of prior approval in place.

The competent authority may decide to apply checks by monitoring at the level of the individual F328area-related aid scheme or support measure or type of operation F329or to defined groups of beneficiaries subject to on-the-spot checks for the greening payment, as referred to in points (a) to (h) of Article 31(1).

In the first two years of application, the competent authority may decide to apply checks by monitoring to beneficiaries of an aid scheme or support measure in areas chosen on the basis of objective and non-discriminatory criteria. In such cases the areas subject to checks by monitoring in the second year of application shall be greater than in the first year of application.

Where the competent authority decides to carry out checks in accordance with the first or second subparagraph, paragraphs 1 and 2 shall apply only to the beneficiaries subject to checks by monitoring.

Where the procedure referred to in point (a) of paragraph 1 reveals findings relevant for F330direct payment schemes, rural development measures and requirements and/or standards not checked by monitoring, competent authorities may decide to take into account those findings only in respect of beneficiaries selected in accordance with Articles F33130, 31, 32 and 68 for on-the-spot checks of F330direct payment schemes, rural development measures and requirements and/or standards not checked by monitoring. The derogation shall be limited to the three years following the 1 ^st of January of the calendar year in which the competent authority started carrying out checks by monitoring.

Every on-the-spot check under this Section shall be the subject of a control report which makes it possible to review the details of the checks carried out and to draw conclusions on the compliance with the eligibility criteria, commitments and other obligations. The report shall indicate in particular:

1. (a)

   the F333aid schemes or support measures F334, the aid applications or payment claims checked;

2. (b)

   the persons present;

3. (c)

   the agricultural parcels checked, the agricultural parcels measured including, where applicable, the result of the measurements per measured agricultural parcel and the measuring methods used;

4. (d)

   where applicable, the results of the measurement of non-agricultural land for which support under rural development measures is being claimed and the measuring methods used;

5. (e)

   whether notice of the check was given to the beneficiary and, if so, the period of prior notice;

6. (f)

   indications of any specific control measures to be carried out in the context of individual F333aid schemes or support schemes;

7. (g)

   indication of any further control measures carried out;

8. (h)

   indication of any non-compliance found that could require cross-notification in view of other F335aid schemes, support measures F336and/or cross-compliance;

9. (i)

   indication of any non-compliance found that could require follow-up during the following years.

F337F224Where checks by monitoring are carried out in accordance with Article 40a, points (b) to (e) of the first subparagraph shall not apply. The control report shall indicate the results of the checks by monitoring at parcel level.

The beneficiary shall be given the opportunity to sign the report during the check to attest his presence at the check and to add observations. Where F338the relevant authority makes use of a control report established by electronic means during the check, the competent authority shall provide for the possibility of an electronic signature by the beneficiary or the control report shall be sent without delay to the beneficiary giving him the opportunity to sign the report and to add any observations. Where any non-compliance is found the beneficiary shall receive a copy of the control report.

F65By way of derogation from the first subparagraph, where the F339relevant authority uses the option to introduce collective claims, the F339relevant authority may decide not to give the collective the opportunity to sign the control report if no non-compliance is revealed during the check. If any non-compliance is revealed as a consequence of such checks, the opportunity to sign the report shall be given before the competent authority draws its conclusions from the findings with regard to any resulting reductions, refusals, withdrawals or penalties.

F98Where the on-the-spot check is carried out by means of remote sensing in accordance with Article 40 F340or by means of monitoring in accordance with Article 40a, the F341relevant authority may decide not to give the beneficiary the opportunity to sign the control report if no non-compliance is revealed during the check by remote-sensing F342or by monitoring. If any non-compliance is revealed as a consequence of such checks F342or by monitoring, the opportunity to sign the report shall be given before the competent authority draws its conclusions from the findings with regard to any resulting reductions, refusals, withdrawals or administrative penalties. F343Where checks by monitoring are applied, this obligation shall be considered fulfilled if beneficiaries are notified of non-compliances through the tools set up to communicate with beneficiaries in accordance with point (d) of Article 40a(1) and beneficiaries are given the opportunity to contest the non-compliances before the competent authority draws its conclusions from the findings with regard to any resulting reductions, refusals, withdrawals or administrative penalties.

On-the-spot checks shall verify that all eligibility criteria, commitments and other obligations are fulfilled and cover all animals for which F345aid applications or payment claims have been submitted under the F346animal aid schemes or animal-related support measures to be checked.

F347Where the F348relevant authority has determined a period in accordance with Article 21(1)(d) F349at least 50% of the minimum rate of on-the-spot checks provided for in Article 32 F350or Article 33F351shallF351may be spread throughout that period for the F352respective animal aid scheme or animal-related support measure. F65However, where the retention period starts before F353an aid application orF353a payment claim has been submitted or where it cannot be fixed in advance, F354the relevant authority may decide that the on-the-spot checks provided for in Article 32 F355or 33F351shallF351may be spread over the period in which an animal may qualify for the payment or support.

Where the F356relevant authority makes use of the possibility provided for in Article 21(3), the potentially eligible animals as defined in point (17) of the second subparagraph of Article 2(1) of Delegated Regulation (EU) No 640/2014 shall also be checked.

On-the-spot checks shall include in particular a check that the number of animals present on the holding for which F357aid applications and/or payment claims have been submitted and, where applicable, the number of potentially eligible animals corresponds to the number of animals entered in the registers and to the number of animals notified to the computerised database for animals.

On-the-spot checks shall also include checks:

1. (a)

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

2. (b)

   that bovine or ovine/caprine animals are identified by ear tags or other means of identification, accompanied, where applicable, by animal passports or movement documents and that they are recorded in the register and have been duly notified to the computerised database for animals.

The checks referred to in point (b) of the first subparagraph may be made on the basis of a random sample. When this sample check reveals any non-compliance, all animals shall be checked, or conclusions from the sample shall be extrapolated.

Every on-the-spot check under this Section shall be the subject of a control report which makes it possible to review the details of the checks carried out. The report shall indicate in particular:

1. (a)

   the F359animal aid schemes and/or animal-related support measures and F360livestock aid applications and/or payment claims checked;

2. (b)

   the persons present;

3. (c)

   the number and type of animals found and, where applicable, the ear tag numbers, entries in the register and in the computerised databases for animals and any supporting documents checked, the results of the checks and, where applicable, particular observations in respect of individual animals and/or their identification code;

4. (d)

   whether notice was given to the beneficiary of the visit and, if so, the period of prior notice. Particularly where the limit of 48 hours referred to in Article 25 is exceeded the reason shall be stated in the control report;

5. (e)

   indications of any specific control measures to be carried out in the context of the F361animal aid schemes and/or animal-related support measures;

6. (f)

   indication of any further control measures to be carried out.

The beneficiary F362shall F362may be given the opportunity to sign the report during the check to attest his presence at the check and to add observations. Where F363the relevant authority makes use of a control report established by electronic means during the check, the competent authority shall provide for the possibility of an electronic signature by the beneficiary or the control report shall be sent without delay to the beneficiary giving him the opportunity to sign the report and to add any observations. Where any non-compliance is found the beneficiary shall receive a copy of the control report.

Where F364the relevant authority carries out on-the-spot checks pursuant to this Regulation in conjunction with inspections pursuant to Regulation (EC) No 1082/2003, the control report shall be supplemented by reports in accordance with Article 2(5) of that Regulation.

Where on-the-spot checks carried out in accordance with this Regulation reveal cases of non-compliance with Title I of Regulation (EC) No 1760/2000 or Regulation (EC) No 21/2004, copies of the control report provided for in this Article shall be sent without delay to the authorities responsible for the implementation of those Regulations.

F369The relevant authority shall provide for appropriate procedures for submitting applications for support, payment claims and other declarations relating to non-area-related or non-animal-related rural development measures.

For measures under Articles 15(1)(b), 16(1) F370and 19(1)(c), and Article 27 of Regulation (EU) No 1305/2013, the beneficiary shall submit an annual payment claim.

Administrative checks shall be carried out on all applications for support, payment claims or other declarations required to be submitted by a beneficiary or a third party, and shall cover all elements that can be checked and are appropriate to be checked by means of administrative checks. The procedures shall require recording of the control work undertaken, the results of the verification and the measures taken in the event of discrepancies.

Administrative checks on applications for support shall ensure the compliance of the operation with applicable obligations established by F371the law applying in the constituent nation or by the rural development programme, including those of public procurement, State aid and other obligatory standards and requirements. The checks shall in particular include verification of:

1. (a)

   the eligibility of the beneficiary;

2. (b)

   the eligibility criteria, commitments and other obligations of the operation for which support is requested;

3. (c)

   F372compliance with the selection criteria, where those criteria apply;

4. (d)

   the eligibility of the costs of the operation, including compliance with the category of costs or calculation method to be used when the operation or part of it falls under Article 67(1)(b), (c) and (d) of Regulation (EU) No 1303/2013;

5. (e)

   F372for costs referred to in Article 67(1)(a) of Regulation (EU) No 1303/2013, excluding contributions in kind and depreciation, a verification of the reasonableness of the costs submitted. The costs shall be evaluated using a suitable evaluation system, such as reference costs, a comparison of different offers or an evaluation committee. For operations with a support rate up to 30 % or for operations supported under Article 35 of Regulation (EU) No 1305/2013, the verification of the reasonableness of the costs may be carried out at the stage of the administrative checks on payment claims. For operations with eligible costs up to EUR 5 000, the reasonableness of the costs may be established by a draft budget agreed ex ante by the managing authority.

Administrative checks on payment claims shall include in particular, and where appropriate for the claim in question, verification of:

1. (a)

   F372the completed operation compared with the operation for which the application for support was granted;

2. (b)

   the costs incurred and the payments made, except where a form or method as referred to in Article 67(1)(b), (c) or (d) of Regulation (EU) No 1303/2013 is applied.

Administrative checks shall include procedures to avoid irregular double financing with other F373schemes in the constituent nations and with the previous programming period. Where financing from other sources exists, those checks shall ensure that the total support received does not breach the maximum permissible amounts or support rates.

Administrative checks on investment operations shall include at least one visit to the operation supported or the investment site to verify the realisation of the investment.

However, the competent authority may decide not to carry out such visits for duly justified reasons, such as the following:

1. (a)

   the operation is included in the sample for an on-the-spot check to be carried out in accordance with Article 49;

2. (b)

   the competent authority considers that the operation in question is a small investment;

3. (c)

   the competent authority considers that the risk that the conditions for receiving support are not met is low, or that the risk that the investment has not been realised is low.

The decision referred to in the second subparagraph and its justification shall be recorded.

Administrative checks shall be carried out on all applications for support, payment claims or other declarations required to be submitted by a beneficiary or a third party, and shall cover all elements that can be checked and are appropriate to be checked by means of administrative checks. The procedures shall require recording of the control work undertaken, the results of the verification and the measures taken in the event of discrepancies.

Administrative checks on applications for support shall ensure the compliance of the operation with applicable obligations established by the law applying in the constituent nation or by the rural development programme, including those of public procurement, ... and other obligatory standards and requirements. The checks shall in particular include verification of:

1. (a)

   the eligibility of the beneficiary;

2. (b)

   the eligibility criteria, commitments and other obligations of the operation for which support is requested;

3. (c)

   compliance with the selection criteria, where those criteria apply;

4. (d)

   the eligibility of the costs of the operation, including compliance with the category of costs or calculation method to be used when the operation or part of it falls under Article 67(1)(b), (c) and (d) of Regulation (EU) No 1303/2013;

5. (e)

   F372for costs referred to in Article 67(1)(a) of Regulation (EU) No 1303/2013, excluding contributions in kind and depreciation, a verification of the reasonableness of the costs submitted. The costs shall be evaluated using a suitable evaluation system, such as reference costs, a comparison of different offers or an evaluation committee. For operations with a support rate up to 30 % or for operations supported under Article 35 of Regulation (EU) No 1305/2013, the verification of the reasonableness of the costs may be carried out at the stage of the administrative checks on payment claims. For operations with eligible costs up to £5 000, the reasonableness of the costs may be established by a draft budget agreed ... by the managing authority.

Administrative checks on payment claims shall include in particular, and where appropriate for the claim in question, verification of:

1. (a)

   the completed operation compared with the operation for which the application for support was granted;

2. (b)

   the costs incurred and the payments made, except where a form or method as referred to in Article 67(1)(b), (c) or (d) of Regulation (EU) No 1303/2013 is applied.

Administrative checks shall include procedures to avoid irregular double financing with other schemes in the constituent nations and with the previous programming period. Where financing from other sources exists, those checks shall ensure that the total support received does not breach the maximum permissible amounts or support rates.

Administrative checks on investment operations shall include at least one visit to the operation supported or the investment site to verify the realisation of the investment. Those checks shall, to the extent possible, be carried out before the final payment is made for an operation.

However, the competent authority may decide not to carry out such visits for duly justified reasons, such as the following:

1. (a)

   ...

2. (b)

   the competent authority considers that the operation in question is a small investment;

3. (c)

   the competent authority considers that the risk that the conditions for receiving support are not met is low, or that the risk that the investment has not been realised is low.

The decision referred to in the second subparagraph and its justification shall be recorded.

As regards the financial instruments referred to in Article 38(1) and (c) of Regulation (EU) No 1303/2013, paragraphs 1 to 5 of this Article shall neither apply to the contribution to the financial instrument nor to the support to the final recipient. However, Articles 58 and 59 of Regulation (EU) No 1306/2013 and Article 9 of Commission Delegated Regulation (EU) No 480/201424 shall apply.

F378The relevant authority shall organise on-the-spot checks on approved operations using an appropriate sampling basis. Those checks shall, to the extent possible, be carried out before the final payment is made for an operation.

F379By way of derogation from the first sub-paragraph, no physical inspection is required for the on-the-spot checks related to claim year 2021. The competent authority will draw a definitive conclusion from the use of photo-interpretation of satellite or aerial ortho-images or other relevant evidence including such evidence provided by the beneficiary at the request of the competent authority.

The inspectors undertaking the on-the-spot check shall not have been involved in administrative checks of the same operation.

F372The expenditure covered by on-the-spot checks shall represent at least 5 % of the expenditure referred to in Article 46 and co-financed by F380rural development support which is claimed to the paying agency each calendar year and which does not concern operations for which only advance payments have been claimed.

F381Where an operation subject to on-the-spot check has received advance or interim payments, those payments shall be counted towards the expenditure covered by on-the-spot checks as referred to in the first subparagraph.

F165As regards financial instruments, only the payments to the final recipients subject to on-the-spot checks shall be counted towards the expenditure covered by on-the-spot checks as referred to in the first subparagraph.

F372Only checks carried out until the date foreseen for submission of the control data and control statistics according to Article 9 shall be counted towards the achievement of the minimum level referred to in paragraph 1.

Payment claims found not to be eligible after administrative checks shall not be counted towards the achievement of the minimum level referred to in paragraph 1.

Only checks meeting all the requirements of Articles 49 and 51 may be counted towards achievement of the minimum level referred to in paragraph 1.

The sample of approved operations to be checked in accordance with paragraph 1 shall take into account in particular:

1. (a)

   the need to check an appropriate mix of types and sizes of operations;

2. (b)

   any risk factors identified following F382... checks;

3. (c)

   the type of operation’s contribution to the risk of error in implementation of the rural development programme;

4. (d)

   the need to maintain a balance between the measures and types of operations;

5. (e)

   the need to select randomly between 30 % and 40 % of expenditure.

Where on-the-spot checks reveal any significant non-compliance in the context of a support measure or type of operation, the competent authority shall increase the control rate to an appropriate level in the following calendar year for the measure or type of operation concerned.

By way of derogation from paragraph 1, F383the relevant authority may decide to reduce the minimum level of on-the-spot checks carried out each calendar year as referred to in paragraph 1 to 3 % of the amount co-financed by F384the rural development support.

F385The relevant authority may apply the first subparagraph only if the general conditions for reducing the minimum level of on-the-spot checks laid down F386... in accordance with Article 62(2)(b) of Regulation (EU) No 1306/2013 are fulfilled.

Where any of the conditions referred to in the second subparagraph are no longer met, F387the relevant authority shall immediately revoke their decision to reduce the minimum level of on-the-spot checks. They shall apply the minimum level of on-the-spot checks referred to in paragraph 1 as of the following calendar year.

The expenditure covered by on-the-spot checks shall represent at least 3% of the expenditure referred to in Article 46 and co-financed by rural development support which is claimed to the paying agency each calendar year and which does not concern operations for which only advance payments have been claimed.

Where an operation subject to on-the-spot check has received advance or interim payments, those payments shall be counted towards the expenditure covered by on-the-spot checks as referred to in the first subparagraph.

As regards financial instruments, only the payments to the final recipients subject to on-the-spot checks shall be counted towards the expenditure covered by on-the-spot checks as referred to in the first subparagraph.

Only checks carried out until the date foreseen for submission of the control data and control statistics according to Article 9 shall be counted towards the achievement of the minimum level referred to in paragraph 1.

Payment claims found not to be eligible after administrative checks shall not be counted towards the achievement of the minimum level referred to in paragraph 1.

Only checks meeting all the requirements of Articles 49 and 51 may be counted towards achievement of the minimum level referred to in paragraph 1.

The sample of approved operations to be checked in accordance with paragraph 1 shall take into account in particular:

1. (a)

   the need to check an appropriate mix of types and sizes of operations;

2. (b)

   any risk factors identified following ... checks;

3. (c)

   the type of operation’s contribution to the risk of error in implementation of the rural development programme;

4. (d)

   the need to maintain a balance between the measures and types of operations;

5. (e)

   the need to select randomly between 30 % and 40 % of expenditure.

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

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

On-the-spot checks shall verify that the operation has been implemented in accordance with the applicable rules and shall cover all the eligibility criteria, commitments and other obligations relating to the conditions for the granting of support, which can be checked at the time of the visit and have not been the subject of administrative checks. They shall ensure that the operation is eligible for F388rural development support.

On-the-spot checks shall verify the accuracy of the data declared by the beneficiary against underlying documents.

This includes a verification that the payment claims submitted by the beneficiary are supported by accounting or other documents, including, where necessary, a check on the accuracy of the data in the payment claim on the basis of data or commercial documents held by third parties.

On-the-spot checks shall verify that the use or intended use of the operation is consistent with the use described in the application for support and for which the support was granted.

Except in exceptional circumstances, duly recorded and explained by the competent authorities, on-the-spot checks shall include a visit to the place where the operation is implemented or, if the operation is intangible, to the operation promoter.

As regards the financial instruments referred to in F389Article 38(1) and (c) of Regulation (EU) No 1303/2013, paragraphs 1 to 4 of this Article shall neither apply to the contribution to the financial instrument nor to the support to the final recipient. However, Articles 58 and 59 of Regulation (EU) No 1306/2013 and Article 9 of Delegated Regulation (EU) No 480/2014 shall apply.

Ex-post checks shall be carried out on investment operations to verify the respect of commitments pursuant to Article 71 of Regulation (EU) No 1303/2013 or detailed in the rural development programme.

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

The sample for operations to be checked in accordance with paragraph 1 shall be based on an analysis of the risks and financial impact of different operations, types of operations or measures. F391...

Ex-post checks shall be carried out on investment operations to verify the respect of commitments pursuant to Article 71 of Regulation (EU) No 1303/2013 or detailed in the rural development programme.

The ex-post checks shall cover in each calendar year at least 1 % of rural development support expenditure for investment operations that are still subject to commitment as referred to in paragraph 1 and for which the final payment has been made from the rural development support. Only checks carried out until the end of the calendar year in question shall be taken into account.

The sample for operations to be checked in accordance with paragraph 1 shall be based on an analysis of the risks and financial impact of different operations, types of operations or measures. A sample shall be selected randomly.

Ex-post checks shall be carried out on investment operations to verify the respect of commitments pursuant to Article 71 of Regulation (EU) No 1303/2013 or detailed in the rural development programme.

The ex-post checks shall cover in each calendar year at least 1 % of rural development support expenditure for investment operations that are still subject to commitment as referred to in paragraph 1 and for which the final payment has been made from the rural development support. Only checks carried out until the end of the calendar year in question shall be taken into account.

By way of derogation from the first sub-paragraph, the control rate for ex-post checks shall be at least 0.6 % in calendar year 2021. In calendar year 2021, no physical inspection is required for ex-post checks. The competent authority will draw a definitive conclusion from the use of photo-interpretation of satellite or aerial ortho-images or other relevant evidence including such evidence provided by the beneficiary at the request of the competent authority.

The sample for operations to be checked in accordance with paragraph 1 shall be based on an analysis of the risks and financial impact of different operations, types of operations or measures. Between 20 % and 25 % of the sample shall be selected randomly.

Ex-post checks shall be carried out on investment operations to verify the respect of commitments pursuant to Article 71 of Regulation (EU) No 1303/2013 or detailed in the rural development programme.

The ex-post checks shall cover in each calendar year at least 1 % of rural development support expenditure for investment operations that are still subject to commitment as referred to in paragraph 1 and for which the final payment has been made from the rural development support. Only checks carried out until the end of the calendar year in question shall be taken into account.

The sample for operations to be checked in accordance with paragraph 1 shall be based on an analysis of the risks and financial impact of different operations, types of operations or measures. Between 20 % and 25 % of the sample shall be selected randomly.

Every on-the-spot check under this Section shall be the subject of a control report which makes it possible to review the details of the checks carried out. The report shall indicate in particular:

1. (a)

   the measures and applications or payment claims checked;

2. (b)

   the persons present;

3. (c)

   whether notice was given to the beneficiary of the visit and, if so, the period of prior notice;

4. (d)

   the results of the checks and, where applicable, any particular observations;

5. (e)

   any further control measures to be carried out.

Paragraph 1 shall apply mutatis mutandis to ex-post checks under this Section.

The beneficiary shall be given the opportunity to sign the report during the check, to attest the beneficiary’s presence at the check and to add observations. Where F392the relevant authority makes use of a control report established by electronic means during the check, the competent authority shall provide for the possibility of an electronic signature by the beneficiary or the control report shall be sent without delay to the beneficiary giving him the opportunity to sign the report and to add any observations. Where any non-compliance is found, the beneficiary shall receive a copy of the control report.

F394The relevant authority shall implement an appropriate system for supervision of local action groups.

In respect of expenditure incurred under Article 35(1)(b) and (c) of Regulation (EU) No 1303/2013, F395the relevant authority may delegate the carrying out of the administrative checks provided for in Article 48 of this Regulation to local action groups by a formal act. However, F395the relevant authority shall remain responsible for verifying that those local action groups have the administrative and control capacity to undertake that work.

In case of delegation referred to in the first subparagraph, the competent authority shall carry out regular checks of the local action groups, including bookkeeping checks and repetition of administrative checks on a sample basis.

The competent authority shall also carry out on-the-spot checks as referred to in Article 49 of this Regulation. As regards the control sample for expenditure concerning LEADER, at least the same percentage as that referred to in Article 50 of this Regulation shall apply.

In respect of expenditure incurred under Article 35(1)(a), (d) and (e) of Regulation (EU) No 1303/2013 and Article 35(1)(b) and (c) of that Regulation where the local action group itself is the beneficiary of the support, administrative checks shall be carried out by persons independent of the local action group concerned.

By way of derogation from Article 48(2)(e), in respect of operations implemented by a local action group and covering a group of projects under a common theme, the verification of the reasonableness of costs may be carried out at the stage of the administrative checks on payment claims concerning that group of projects.

In respect of expenditure incurred under Article 69(3)(a) of Regulation (EU) No 1303/2013, administrative checks and on-the- spot checks shall be carried out with reference to the beneficiary and depending on the realisation of the operation concerned. F393 The risk analysis in accordance with Article 50 of this Regulation shall cover, at least once, the operation concerned on the basis of the discounted value of the subsidy.

The competent authority shall ensure, via administrative checks and, if necessary, via in-situ visits to the intermediate financial institutions and to the beneficiary, that the payments to the intermediate financial institutions are in conformity with F396the law applying in the constituent nation and with the agreement concluded between the competent authority and the intermediate financial institution.

If interest rate or guarantee fee subsidies are combined with financial instruments in a single operation targeting the same final recipients, the competent authority shall carry out checks at the level of final recipients only in those cases established in Article 40(3) of Regulation (EU) No 1303/2013.

F402The relevant authority shall establish a system guaranteeing effective control of the respect of cross-compliance. That system shall, in particular provide for:

1. (a)

   where the competent control authority is not the paying agency, the transfer of the necessary information concerning the beneficiaries referred to in Article 92 of Regulation (EU) No 1306/2013 from the paying agency to the specialised control bodies and/or, where applicable, via the coordinating authority;

2. (b)

   the methods to be applied for the selection of control samples;

3. (c)

   indications with regard to the nature and extent of the checks to be carried out;

4. (d)

   control reports containing in particular any detected non-compliance and an assessment of its severity, extent, permanence and reoccurrence;

5. (e)

   where the competent control authority is not the paying agency, the transfer of the control reports from the specialised control bodies either to the paying agency or the coordinating authority or both;

6. (f)

   the application of the system of reductions and exclusions by the paying agency.

F402The relevant authority may provide for a procedure according to which the beneficiary indicates to the paying agency the elements necessary to identify the requirements and standards applicable to him.

The responsibilities of the competent control authorities shall be as follows:

1. (a)

   the specialised control bodies shall bear the responsibility for carrying out the control and checks on the respect of the requirements and standards in question;

2. (b)

   the paying agencies shall bear the responsibility for fixing administrative penalties in individual cases in accordance with Chapter II of Title IV of Delegated Regulation (EU) No 640/2014 and Chapter III of this Title.

By way of derogation from paragraph 1, F403the relevant authority may decide that the control and checks in relation to all or certain requirements, standards, acts, or areas of cross-compliance are to be carried out by the paying agency, provided that the F404relevant authority guarantees that the effectiveness of the control and checks is at least equal to that achieved when the control and checks are carried out by a specialised control body.

The competent control authority shall, with regard to the requirements and standards for which it is responsible, carry out on-the-spot checks on at least 1% of the total number of the beneficiaries receiving direct payments and the other beneficiaries referred to in Article 92 of Regulation (EU) No 1306/2013 ....The competent control authority shall, with regard to the requirements and standards for which it is responsible, carry out on-the-spot checks on at least 1% of the total number of the beneficiaries receiving annual premia referred to in Article 92 of Regulation (EU) No 1306/2013 ... .

...

The minimum control rate referred to in the first subparagraph may be reached at the level of each competent control authority or at the level of each act or standard or group of acts or standards. Where the checks are not carried out by the paying agency, this minimum control rate may however be reached at the level of each paying agency.

Where the legislation applicable to the act and standards already fixes a minimum control rate, that rate shall be applied instead of the minimum rate referred to in the first subparagraph. Alternatively, the relevant authority may decide that any instances of non-compliance detected in the course of any on-the-spot checks under the legislation applicable to the acts and standards which are carried out outside the sample referred to in the first subparagraph, shall be reported to, and followed up by, the competent control authority in charge of the act or standard concerned. The provisions of this Chapter and Chapters I, II and III of Title III shall apply.

As regards the cross-compliance obligations in relation to Directive 96/22/EC, the application of a specific sampling level of monitoring plans shall be considered to fulfil the requirement of the minimum rate mentioned in the first subparagraph.

By way of derogation from paragraph 1, in order to reach the minimum control rate referred to in that paragraph at the level of each act or standard or group of acts or standards, the relevant authority may:

1. (a)

   use the results of on-the-spot checks carried out pursuant to the legislation applicable to those acts and standards for the selected beneficiaries; or

2. (b)

   replace selected beneficiaries by beneficiaries subject to an on-the-spot check carried out pursuant to the legislation applicable to those acts and standards, provided that those beneficiaries are beneficiaries as referred to in Article 92 of Regulation (EU) No 1306/2013.

In such cases the on-the-spot checks shall cover all aspects of the relevant acts or standards as defined under cross-compliance. Furthermore the relevant authority shall ensure that the effectiveness of those on-the-spot checks is at least equal to that achieved when the on-the-spot checks are carried out by competent control authorities.

When establishing the minimum control rate referred to in paragraph 1 of this Article, the required actions as referred to in Article 97(3) of Regulation (EU) No 1306/2013, shall not be taken into account.

Should on-the-spot checks reveal a significant degree of non-compliance with a given act or standard, the number of on-the-spot checks to be carried out for that act or standard in the following control period may be increased. Within a specific act the competent control authority may decide to limit the scope of those further on-the- spot checks to the most frequently infringed requirements.

When a relevant authority decides to make use of the option provided for in Article 97(3) of Regulation (EU) No 1306/2013, the actions necessary to verify that the beneficiaries have remedied the situation of non-compliance concerned shall apply on a sample of 20 % of those beneficiaries.

The competent control authority shall, with regard to the requirements and standards for which it is responsible, carry out on-the-spot checks on at least 1% of the total number of the beneficiaries receiving direct payments and the other beneficiaries referred to in Article 92 of Regulation (EU) No 1306/2013, as amended for the purpose of agricultural support.The competent control authority shall, with regard to the requirements and standards for which it is responsible, carry out on-the-spot checks on at least 1% of the total number of the beneficiaries receiving annual premia referred to in Article 92 of Regulation (EU) No 1306/2013 and the other beneficiaries receiving direct payment support.For the purposes of on-the-spot checks in respect of claim year 2021, this sub-paragraph applies as if for “1%” there were substituted “0.5%

By way of derogation from the first subparagraph, in the case of groups of persons as referred to in Articles 28 and 29 of Regulation (EU) No 1305/2013 each individual member of those groups may be considered as beneficiary for the purpose of calculating the control sample as specified in the first subparagraph.

For the purposes of on-the-spot checks in respect of claim years 2020 and 2021, the first sub-paragraph applies as if for “1%” there were substituted “0.5%.

The minimum control rate referred to in the first subparagraph may be reached at the level of each competent control authority or at the level of each act or standard or group of acts or standards. Where the checks are not carried out by the paying agency, this minimum control rate may however be reached at the level of each paying agency.

Where the legislation applicable to the act and standards already fixes a minimum control rate, that rate shall be applied instead of the minimum rate referred to in the first subparagraph. Alternatively, the relevant authority may decide that any instances of non-compliance detected in the course of any on-the-spot checks under the legislation applicable to the acts and standards which are carried out outside the sample referred to in the first subparagraph, shall be reported to, and followed up by, the competent control authority in charge of the act or standard concerned. The provisions of this Chapter and Chapters I, II and III of Title III shall apply. This sub-paragraph does not apply in respect of claim years 2021 and 2022.

As regards the cross-compliance obligations in relation to Directive 96/22/EC, the application of a specific sampling level of monitoring plans shall be considered to fulfil the requirement of the minimum rate mentioned in the first subparagraph.

By way of derogation from paragraph 1, in order to reach the minimum control rate referred to in that paragraph at the level of each act or standard or group of acts or standards, the relevant authority may:

1. (a)

   use the results of on-the-spot checks carried out pursuant to the legislation applicable to those acts and standards for the selected beneficiaries; or

2. (b)

   replace selected beneficiaries by beneficiaries subject to an on-the-spot check carried out pursuant to the legislation applicable to those acts and standards, provided that those beneficiaries are beneficiaries as referred to in Article 92 of Regulation (EU) No 1306/2013.

In such cases the on-the-spot checks shall cover all aspects of the relevant acts or standards as defined under cross-compliance. Furthermore the relevant authority shall ensure that the effectiveness of those on-the-spot checks is at least equal to that achieved when the on-the-spot checks are carried out by competent control authorities.

When establishing the minimum control rate referred to in paragraph 1 of this Article, the required actions as referred to in Article 97(3) of Regulation (EU) No 1306/2013, shall not be taken into account.

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

When a relevant authority decides to make use of the option provided for in Article 97(3) of Regulation (EU) No 1306/2013, the actions necessary to verify that the beneficiaries have remedied the situation of non-compliance concerned shall apply on a sample of 20 % of those beneficiaries.

The competent control authority shall, with regard to the requirements and standards for which it is responsible, carry out on-the-spot checks on at least 1% of the total number of the beneficiaries receiving direct payments and the other beneficiaries referred to in Article 92 of Regulation (EU) No 1306/2013, as amended for the purpose of agricultural support.The competent control authority shall, with regard to the requirements and standards for which it is responsible, carry out on-the-spot checks on at least 1% of the total number of the beneficiaries receiving annual premia referred to in Article 92 of Regulation (EU) No 1306/2013 and the other beneficiaries receiving direct payment support.

By way of derogation from the first subparagraph, in the case of groups of persons as referred to in Articles 28 and 29 of Regulation (EU) No 1305/2013 each individual member of those groups may be considered as beneficiary for the purpose of calculating the control sample as specified in the first subparagraph.

For the purposes of checks in respect of claim year 2020, the first subparagraph applies as if for “1%” there were substituted “0.5%”.

The minimum control rate referred to in the first subparagraph may be reached at the level of each competent control authority or at the level of each act or standard or group of acts or standards. Where the checks are not carried out by the paying agency, this minimum control rate may however be reached at the level of each paying agency.

Where the legislation applicable to the act and standards already fixes a minimum control rate, that rate shall be applied instead of the minimum rate referred to in the first subparagraph. Alternatively, the relevant authority may decide that any instances of non-compliance detected in the course of any on-the-spot checks under the legislation applicable to the acts and standards which are carried out outside the sample referred to in the first subparagraph, shall be reported to, and followed up by, the competent control authority in charge of the act or standard concerned. The provisions of this Chapter and Chapters I, II and III of Title III shall apply.

As regards the cross-compliance obligations in relation to Directive 96/22/EC, the application of a specific sampling level of monitoring plans shall be considered to fulfil the requirement of the minimum rate mentioned in the first subparagraph.

By way of derogation from paragraph 1, in order to reach the minimum control rate referred to in that paragraph at the level of each act or standard or group of acts or standards, the relevant authority may:

1. (a)

   use the results of on-the-spot checks carried out pursuant to the legislation applicable to those acts and standards for the selected beneficiaries; or

2. (b)

   replace selected beneficiaries by beneficiaries subject to an on-the-spot check carried out pursuant to the legislation applicable to those acts and standards, provided that those beneficiaries are beneficiaries as referred to in Article 92 of Regulation (EU) No 1306/2013.

In such cases the on-the-spot checks shall cover all aspects of the relevant acts or standards as defined under cross-compliance. Furthermore the relevant authority shall ensure that the effectiveness of those on-the-spot checks is at least equal to that achieved when the on-the-spot checks are carried out by competent control authorities.

When establishing the minimum control rate referred to in paragraph 1 of this Article, the required actions as referred to in Article 97(3) of Regulation (EU) No 1306/2013, shall not be taken into account.

Should on-the-spot checks reveal a significant degree of non-compliance with a given act or standard, the number of on-the-spot checks to be carried out for that act or standard in the following control period shall be increased. Within a specific act the competent control authority may decide to limit the scope of those further on-the-spot checks to the most frequently infringed requirements.

When a relevant authority decides to make use of the option provided for in Article 97(3) of Regulation (EU) No 1306/2013, the actions necessary to verify that the beneficiaries have remedied the situation of non-compliance concerned shall apply on a sample of 20 % of those beneficiaries.

F98The selection of the sample of farms to be checked in accordance with Article 68 shall be based, where applicable, on a risk analysis according to the applicable legislation, or on a risk analysis appropriate to the requirements or standards. That risk analysis may be based on the level of an individual farm or on the level of categories of farms or geographical zones. F405Where the competent authority decides to apply the option provided for in Article 40a(4) or in Article 70a(3) of this Regulation, findings revealed by checks by monitoring in the previous claim year shall be taken into account in the risk analysis.

The risk analysis may take into account one or both of following:

1. (a)

   a beneficiary’s participation in the farm advisory system established pursuant to Article 12 of Regulation (EU) No 1306/2013;

2. (b)

   a beneficiary’s participation in a certification system if the scheme in question is relevant for the requirements and standards concerned.

F406The relevant authority may decide on the basis of a risk analysis to exclude beneficiaries participating in a certification system as referred to in point (b) of the second subparagraph from the risk-based control sample. However, when the certification system only covers part of the requirements and standards to be respected under cross-compliance by the beneficiary, appropriate risk factors shall be applied for the requirements or standards that are not covered by the certification system.

When the analysis of control results reveals that there is a significant frequency of non-compliance with the requirements or standards included in a certification system as referred to in point (b) of the second subparagraph, the risk factors related to the requirements or standards concerned shall be re-assessed.

Paragraph 1 shall not apply to checks carried out as a follow-up of any non-compliance brought to the attention of the competent control authority in any other way. However, it shall apply to checks carried out as follow-up under the second subparagraph of Article 97(3) of Regulation (EU) No 1306/2013.

To provide the element of representativeness, between 20 % and 25 % of the minimum number of beneficiaries to be subject to on-the-spot checks as provided for in the first subparagraph of Article 68(1), shall be selected randomly. However, if the number of beneficiaries to be subject to on-the-spot checks exceeds that minimum number, the percentage of randomly selected beneficiaries in the additional sample shall not exceed 25 %.

A partial selection of the control sample may, where appropriate, be made before the end of the application period in question, on the basis of available information. The provisional sample shall be completed when all relevant applications are available.

The sample of beneficiaries to be checked in accordance with Article 68(1) may be selected from the samples of beneficiaries which were already selected pursuant to Articles F40830 to 34F40830, 31 and 34 and to whom the relevant requirements or standards apply. F409However, this possibility does not apply to the control of beneficiaries under the support schemes in the wine sector referred to in Articles 46 and 47 of Regulation (EU) No 1308/2013.

F410By way of derogation from Article 68(1), the sample of beneficiaries to be checked on the spot may be selected at the minimum rate of 1% of the beneficiaries receiving direct payments.F411By way of derogation from Article 68(1), the samples of beneficiaries to be checked on the spot may be selected F412at the minimum rate of 1% ofF412from the beneficiaries receiving annual premia under Article 21(1)(a) and (b) and Articles 28 to 31, 33 and 34 of Regulation (EU) No 1305/2013.

Where it is concluded, on the basis of the risk analysis applied at farm level, that non-beneficiaries represent a higher risk than the beneficiaries referred to in Article 92 of Regulation (EU) No 1306/2013 those beneficiaries may be replaced by non-beneficiaries. In that case, the overall number of farmers checked shall, nevertheless, attain the control rate provided for in Article 68(1) of this Regulation. The reasons for such replacements shall be properly justified and documented.

The procedures set out in paragraphs 5 and 6 may be combined where such a combination increases the effectiveness of the control system.

Where applicable, the respect of the requirements and standards shall be determined by the use of means as provided for in the legislation applicable to the requirement or standard in question.

In other cases and where appropriate, the determination shall be carried out by the use of any appropriate means decided by the competent control authority which ensure precision at least equivalent to that required for official determinations under the national rules.

Where appropriate, the on-the-spot checks may be carried out by applying remote-sensing techniques F413or by using Copernicus Sentinels satellite data or other data with at least equivalent value.

Competent authorities may carry out checks of the requirements and standards relevant for cross-compliance by means of checks by monitoring carried out in accordance with Article 70a of this Regulation.

Competent authorities may carry out checks by monitoring. Where they elect to do so, they shall:

1. (a)

   set up a procedure of regular and systematic observation, tracking and assessment of all the requirements and standards relevant for cross-compliance which can be monitored by Copernicus Sentinels satellite data or other data with at least equivalent value, over a period of time that allows to conclude on the compliance with the requirements and standards;

2. (b)

   carry out, where necessary, and in order to conclude on the determination of the compliance with the requirements and standards, appropriate follow-up activities;

3. (c)

   carry out checks for 1 % of the beneficiaries concerned by requirements and standards relevant for cross-compliance which cannot be monitored by Copernicus Sentinels satellite data or other data with at least equivalent value, and are relevant to conclude on the compliance with the requirements and standards. Between 20 % and 25 % of the 1 % of the beneficiaries shall be selected randomly. The remaining beneficiaries shall be selected on the basis of a risk analysis;

4. (d)

   inform beneficiaries about the decision to carry out checks by monitoring and set up appropriate tools to communicate with beneficiaries on at least provisional results at parcel level of the procedure set up in accordance with point (a) of this paragraph, warning alerts and evidence requested for the purposes of points (b) and (c). Competent authorities shall ensure timely communication with the beneficiaries to support them in complying with the requirements and standards and, without prejudice to the early warning system in Article 99(2) of Regulation (EU) No 1306/2013, allow the beneficiary to address or remedy the situation before the conclusions are drawn in the control report referred to in Article 72, but not later than one month following the communication of the provisional results.

   For the purposes of points (b) and (c), physical inspections in the field shall be carried out when relevant evidence, including evidence provided by the beneficiary at the request of the competent authority, does not allow to conclude on the compliance with the requirements and standards relevant for cross-compliance subject to the checks by monitoring. Physical inspections in the field may be limited to checks of requirements and standards that are relevant to conclude on the compliance with the requirements and standards relevant for cross-compliance subject to the checks by monitoring.

Where the competent authority carries out checks by monitoring in accordance with paragraph 1, can demonstrate effective operational procedures complying with the rules laid down in Articles 7 and 29, and has proven the quality of the identification system for agricultural parcels as assessed in accordance with Article 6 of Delegated Regulation (EU) No 640/2014, Articles 25, 68, 69 and 71 of this Regulation do not apply.

Where the procedure referred to in point (a) of paragraph 1 reveals findings relevant for F416direct payment schemes, rural development measures and requirements and/or standards not checked by monitoring, competent authorities may decide to take into account those findings only in respect of beneficiaries selected in accordance with F417Articles 30, 31, 32 and 68 for on-the-spot checks of direct payment schemes,F417Articles 32 and 68 for on-the-spot checks of rural development measures and requirements and/or standards not checked by monitoring. The derogation shall be limited to the three years following the 1 ^st of January of the calendar year in which the competent authority started carrying out checks by monitoring.

When carrying out the checks on the sample provided for in Article 68(1), the competent control authority shall ensure that all beneficiaries selected are checked with regard to their compliance with the requirements and standards for which the competent control authority is responsible.

Notwithstanding the first subparagraph, where the minimum control rate is reached at the level of each act or standard or group of acts or standards as provided for in the third subparagraph of Article 68(1), the beneficiaries selected shall be checked with regard to their compliance with the act or standard or group of acts and standards in question.

When a group of persons as referred to in Articles 28 and 29 of Regulation (EU) No 1305/2013 is selected in the sample provided for in Article 68(1) of this Regulation, the competent control authority shall ensure that all members of the group are checked with regard to their compliance with the requirements and standards for which they are responsible.

In general, each beneficiary selected for an on-the-spot check shall be checked at a time when most requirements and standards for which he was selected may be checked. However, F419the relevant authority shall ensure that an appropriate level of control for all requirements and standards is achieved during the year.

On-the-spot checks shall, where applicable, cover all the agricultural land of the holding. Nevertheless, the actual inspection in the field as part of an on-the-spot check may be limited to a sample of at least half of the agricultural parcels concerned by the requirement or standard on the holding, provided that such sample guarantees a reliable and representative level of control in respect of requirements and standards.

The first subparagraph shall be without prejudice to the calculation and application of the administrative penalty as referred to in Chapter II of Title IV of Delegated Regulation (EU) No 640/2014 and in Chapter III of this Title. When the sample check referred to in the first subparagraph reveals non-compliance, the sample of agricultural parcels actually inspected shall be increased.

Furthermore, where the legislation applicable to the act or standards so provides, the actual inspection of the compliance with the requirements and standards as part of an on-the-spot check may be limited to a representative sample of the objects to check. However, the F420relevant authority shall ensure that the checks are carried out on all requirements and standards for which the compliance may be checked at the time of the visit.

The checks referred to in paragraph 1 shall, as a general rule, be carried out as part of one visit. They shall consist of a verification of the requirements and standards the compliance with which may be checked at the time of that visit. The aim of those checks shall be to detect any possible non-compliance with those requirements and standards and, in addition, to identify cases to be submitted for further checks.

On-the-spot checks at farm level may be replaced by administrative checks, provided that the F421relevant authority ensures that administrative checks are at least as effective as on-the-spot checks.

When carrying out on-the-spot checks, F422the relevant authority may make use of objective control indicators specific to certain requirements and standards, provided they ensure that the effectiveness of the control of the requirements and standards concerned is at least equal to on-the-spot checks carried out without the use of indicators.

The indicators shall have a direct link to the requirements or standards they represent and cover all elements to be checked when controlling that or those requirements or standards.

On-the-spot checks related to the sample provided for in Article 68(1) of this Regulation shall be carried out within the same calendar year where the F423aid applications, and/or payment claims are submitted F424or, as regards to the applications for the support schemes in the wine sector under Articles 46 and 47 of Regulation (EU) No 1308/2013, at any time during the period indicated in the second subparagraph of Article 97(1) of Regulation (EU) No 1306/2013.

Every on-the-spot check carried out under this Title shall be the subject of a control report to be established by the competent control authority or under its responsibility.

The report shall be divided into the following parts:

1. (a)

   a general part containing, in particular, the following information:

   1. (i)

      the beneficiary selected for the on-the-spot check;

   2. (ii)

      the persons present;

   3. (iii)

      whether notice of the visit was given to the beneficiary and, if so, the period of advance prior notice;

2. (b)

   a part reflecting separately the checks carried out in respect of each of the acts and standards and containing, in particular, the following information:

   1. (i)

      the requirements and standards subject to the on-the-spot check;

   2. (ii)

      the nature and extent of checks carried out;

   3. (iii)

      the findings;

   4. (iv)

      the acts and standards in relation to which any non-compliances are found;

3. (c)

   an evaluation part giving an assessment of the importance of the non-compliance in respect of each act and/or standard on the basis of the criteria ‘severity’, ‘extent’, ‘permanence’ and ‘reoccurrence’ in accordance with Article 99(1) of Regulation (EU) No 1306/2013 with an indication of any factors that should lead to an increase or decrease of the reduction to be applied.

Where provisions relating to the requirement or standard in question leave a margin not to further pursue the non-compliance found, or where supports are granted pursuant to Article 17(5) and (6) of Regulation (EU) No 1305/2013, this shall be indicated in the report.

F425F310Where checks by monitoring are carried out in accordance with Article 70a, points (a)(ii) and (iii) of the second subparagraph of this paragraph shall not apply. The control report shall indicate the results of the checks by monitoring at parcel level.

Paragraph 1 shall apply regardless whether the beneficiary in question was selected for the on-the-spot check in accordance with Article 69, checked on the spot pursuant to the legislation applicable to the acts and standards in accordance with Article 68(2), F426checked by monitoring in accordance with Article 70a, or as a follow-up of non-compliance brought to the attention of the competent control authority in any other way.

F98The beneficiary shall be informed of any determined non-compliance within three months after the date of the on-the-spot check. F427When checks by monitoring are carried out in accordance with Article 70a, the beneficiary shall be informed of any determined non-compliance within three months after the expiry of the time period granted to the beneficiary to address or remedy the situation in accordance with Article 70a(1)(d).

Unless the beneficiary has taken immediate remedial action putting an end to the non-compliance found within the meaning of the second subparagraph of Article 99(2) of Regulation (EC) No 1306/2013, the beneficiary shall be informed within the time limit set in the first subparagraph of this paragraph that remedial action shall be taken pursuant to the second subparagraph of Article 99(2) of Regulation (EC) No 1306/2013.

Unless the beneficiary has taken immediate remedial action putting an end to the non-compliance found within the meaning of Article 97(3) of Regulation (EC) No 1306/2013, the beneficiary concerned shall be informed, at the latest within one month after the decision not to apply the administrative penalty provided for in that Article, that remedial action shall be taken.

F98Without prejudice to any particular provisions contained in the legislation applicable to the requirements and standards, the control report shall be finalised within one month after the on-the-spot check. F428When checks by monitoring are carried out in accordance with Article 70a, the control report shall be finalised within one month after the expiry of the time period granted to the beneficiary to address or remedy the situation in accordance with Article 70a(1)(d). However, that period may be extended to three months under duly justified circumstances, in particular if chemical or physical analysis so requires.

Where the competent control authority is not the paying agency, the control report and, when requested, the relevant supporting documents shall be sent or made accessible to the paying agency or the coordinating authority within a month after its finalisation.

However, where the report does not contain any findings, F429the relevant authority may decide that such report is not sent, provided that it is made directly accessible to the paying agency or coordinating authority one month after its finalisation.