Article 1

Implementing Regulation (EU) No 809/2014 is amended as follows:

  1. (1)

    In Article 21, the following paragraph 4a is inserted:

    ‘4a.

    For short production-cycle species supported under Article 33 of Regulation (EU) No 1305/2013 Member States 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 Member State, qualify for support on the basis of the data contained in the slaughter certificates or in other supporting documents.

    In that case, Member States 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.’

  2. (2)

    Article 48 is amended as follows:

    1. (a)

      Paragraph 2 is amended as follows:

      1. (i)

        point (c) is replaced by the following:

        ‘(c)

        compliance with the selection criteria, where those criteria apply;’

      2. (ii)

        point (e) is replaced by the following:

        ‘(e)

        for 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.’

    2. (b)

      In paragraph 3, points (a) and (b) are replaced by the following:

      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.’

    3. (c)

      The following paragraph 6 is added:

      ‘6.

      As regards the financial instruments referred to in Article 38(1)(b) 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 480/20147 shall apply.’
  3. (3)

    Article 50 is amended as follows:

    1. (a)

      Paragraph 1 is amended as follows:

      1. (i)

        the first subparagraph is replaced by the following:

        ‘The expenditure covered by on-the-spot checks shall represent at least 5 % of the expenditure referred to in Article 46 and co-financed by the European Agricultural Fund for Rural Development (EAFRD) which is claimed to the paying agency each calendar year and which does not concern operations for which only advance payments have been claimed.’

      2. (ii)

        the following third subparagraph is added:

        ‘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.’

    2. (b)

      In paragraph 2, the first subparagraph is replaced by the following:

      ‘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.’

  4. (4)

    Article 51 is amended as follows:

    1. (a)

      Paragraph 1 is replaced by the following:

      ‘1.

      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 an EAFRD support.’

    2. (b)

      The following paragraph 5 is added:

      ‘5.

      As regards the financial instruments referred to in Article 38(1)(b) 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.’

  5. (5)

    Articles 54 to 59 are deleted.

  6. (6)

    In Article 60, the following paragraph 4 is added:

    ‘4.

    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.’

  7. (7)

    Article 61 is amended as follows:

    1. (a)

      In paragraph 1, the second sentence is deleted;

    2. (b)

      Paragraph 2 is replaced by the following:

      ‘2.

      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 Union law and with the agreement concluded between the competent authority and the intermediate financial institution.’

  8. (8)

    In Article 63, paragraph 2 is replaced by the following:

    ‘2.

    The administrative penalty referred to in paragraph 1 shall be applied mutatis mutandis to non-eligible expenditure identified during on-the-spot checks referred to in Article 49.’