(1)

Following the introduction of the support scheme for sugar into the single payment scheme, Commission Regulation (EC) No 796/2004 (2) needs to be amended in several respects, in particular with regard to the application procedure and the control measures to be carried out with regard to that aid scheme. Moreover, the provisions of that Regulation need to be clarified with regard to certain aspects.

(2)

The application of certain provisions of the detailed rules of the integrated system set out in Regulation (EC) No 796/2004 to the schemes established in Article 143b and Article 143c of Regulation (EC) No 1782/2003 is provided for in Articles 136 and 140(1) respectively of Commission Regulation (EC) No 1973/2004 of 29 October 2004 laying down detailed rules for the application of Council Regulation (EC) No 1782/2003 as regards the support schemes provided for in Titles IV and IVa of that Regulation and the use of land set aside for the production of raw materials (3). Regulation (EC) No 796/2004 should be clarified to that extent.

(3)

A number of references to other Regulations are obsolete and should be updated with the relevant reference.

(4)

Any specific information relating to the production of sugar should be requested as part of the single application.

(5)

In accordance with Article 14(2) of Regulation (EC) No 796/2004 the Member States may derogate from certain provisions concerning the single application during the first year of application of the single payment scheme or when a new element is introduced to the single application scheme. That derogation should also include the possibility to change the use or aid scheme in respect of individual parcels.

(6)

The integration of the sugar reference amounts into the single payment scheme following the reform in the sugar sector, as provided for by Council Regulation (EC) No 319/2006 of 20 February 2006 amending Regulation (EC) No 1782/2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers (4), requires flexibility concerning possible additions and amendments to the single application in the case where a Member State applies Article 48c(8) of Commission Regulation (EC) No 795/2004 of 21 April 2004 laying down detailed rules for the implementation of the single payment scheme provided for in Council Regulation (EC) No 1782/2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers (5) during the year 2006. Such additions and amendments should therefore be allowed until 15 June 2006. However, the dates for the submission of the single application as provided for in Article 11 of Regulation (EC) No 796/2004 should be maintained in order to allow the Member States to organise their respective control programmes in due time.

(7)

Chapter 10e of Regulation (EC) No 1782/2003 provides for a transitional sugar payment in the Member States applying Article 71 of that Regulation. Article 143ba of that Regulation provides for a separate sugar payment in Member States applying the single area payment scheme provided for in Article 143b of that Regulation. Both the transitional sugar payment and the separate sugar payment are, due to their nature, not related to agricultural area, which is why the provisions concerning the single application pursuant to Regulation (EC) No 796/2004 do not apply to these payment schemes. Provision should therefore be made for an appropriate application procedure.

(8)

In the case where new sectors are being included in the single payment scheme, it should be provided for that the rules in Article 21a of Regulation (EC) No 796/2004 concerning late submissions of applications to the single payment scheme should also apply in the case of applications of farmers concerning such new sectors.

(9)

The cross-checks to be carried out on the single application should be extended to certain particular checks with regard to various conditions concerning the information provided by the sugar manufacturers.

(10)

Given the particularities of the aid scheme for sugar provided for in Chapters 10f of Title IV of Regulation (EC) No 1782/2003, special control provisions should be established.

(11)

In the case where the competent authority increases the number of on-the-spot checks, it should also be possible to increase the percentage of farmers randomly selected for those checks.

(12)

In the case where a farmer declared more area than payment entitlements, Article 50(2) of Regulation (EC) No 796/2004 provides that the basis for the calculation for the aid is the amount of hectares accompanied by payment entitlements. In cases where the area declared fulfils all other eligibility requirements, there is no need for the application of reductions or exclusions in accordance with Articles 51 or 53 of that Regulation. These provisions should therefore be clarified to that extent.

(13)

The rules concerning reductions to be applied by way of off-setting against payments the following three years are only possible, in the case of livestock payments, within the same aid scheme as where the irregularity has occurred. This is contrary to the area-related schemes where the off-set can be made to any payment covered by Titles III and IV of Regulation (EC) No 1782/2003. The rules for the different aid schemes should be harmonised.

(14)

Transitional rules concerning cases where reductions to be applied by way of off-setting against payments the following three years do only cover decisions taken concerning applications for the year 2004. Given that the livestock payments, after the introduction of the single payment scheme, are incorporated in that scheme, an off-set should be possible against that aid scheme.

(15)

The introduction of new aid schemes into the single payment scheme requires an updating of the references to the budgetary ceilings referred to in Article 71a of Regulation (EC) No 796/2004.

(16)

When the single payment scheme and the single application were introduced, the latest date for area-based payments and animal-based payments was harmonised. Therefore it is appropriate to also harmonise the latest date for the Member States to communicate information concerning those payments.

(17)

Regulation (EC) No 796/2004 should therefore be amended accordingly.

(18)

The amendments provided for in this Reglulation concern aid applications relating to years or premium periods starting as of 1 January 2006. This Regulation should therefore apply as of 1 January 2006.

(19)

The measures provided for in this Regulation are in accordance with the opinion of the Management Committee for Direct Payments,

1.

Article 2 is amended as follows:

2.

Article 13 is amended as follows:

3.

Article 14 is amended as follows:

4.

Article 15 is amended as follows:

5.

in Article 16(1), point (f) is replaced by the following:

6.

the following Chapter is inserted after Article 17:

7.

in Article 21a, the following paragraph is added:

8.

in Article 24(1), the following point is added:

9.

Article 26 is amended as follows:

10.

in Article 27(1) the following subparagraph is added:

‘However, if the number of farmers to be subjected to on-the-spot checks exceeds the minimum number of farmers to be subjected to on-the-spot checks as provided for in Article 26(1) and (2), the percentage of randomly selected farmers in the additional sample should not exceed 25 %.’;

11.

the following Article is inserted after Article 31a:

12.

Article 32 is amended as follows:

13.

in Article 36(1), the second subparagraph is replaced by the following:

‘The on-the-spot checks in slaughterhouses shall comprise a posteriori scrutiny of documents, a comparison with the entries in the computerised database for bovine animals and checks of summaries relating to the slaughter certificates or information in place thereof, which were sent to other Member States in accordance with Article 121(3) of Regulation (EC) No 1973/2004.’;

14.

in Article 45(3), the first subparagraph is replaced by the following:

‘By way of derogation from paragraph 2, the competent authority may, with regard to the requirements or standards for which it is responsible, select a control sample of 1 % of all farmers submitting aid applications under support schemes established in Titles III, IV and IVa of Regulation (EC) No 1782/2003 and who are under the obligation to respect at least one of the requirements or standards.’;

15.

in Article 50, paragraph 2 is replaced by the following:

16.

Article 51 is amended as follows:

17.

Article 53 is amended as follows:

18.

Article 59 is amended as follows:

19.

Article 60 is amended as follows:

20.

in Article 62, the first sentence is replaced by the following:

‘As regards the declarations or certificates issued by slaughterhouses in connection with the slaughter premium provided for in Article 121 of Regulation (EC) No 1973/2004, if it is found that the slaughterhouse made a false certification or declaration as a result of serious negligence or intentionally, the Member State concerned shall apply appropriate national sanctions.’;

21.

in the second paragraph of Article 64, the third sentence is replaced by the following:

‘An amount equal to the amount covered by the refused application shall be off-set against aid payments under any of the aid schemes established in Titles III, IV and IVa of Regulation (EC) No 1782/2003 to which the person is entitled in the context of applications he lodges in the course of the calendar year following the calendar year of the finding.’;

22.

in Article 71a(2)(d), the first subparagraph is replaced by the following:

‘With regard to aid schemes listed in Annex I to Regulation (EC) No 1782/2003 for which a budgetary ceiling is fixed in accordance with Articles 64(2), 70(2), 71(2), 110p(1), 143b(7) and 143ba(2) of that Regulation, the Member State shall sum up the amounts resulting from the application of points (a), (b) and (c).’;

23.

in Article 73(2), the first sentence is replaced by the following:

‘Member States may decide that recovery of an undue payment is to be made by deduction of the corresponding amount from any advances or payments under aid schemes referred to in Titles III, IV and IVa of Regulation (EC) No 1782/2003 made to the farmer concerned following the date of the decision to recover.’;

24.

Article 76(1) is amended as follows:

25.

in Article 80(1), the following subparagraph is added:

‘When a Member State introduces the single payment scheme after 2005, in cases where reductions to be applied by way of off-setting in accordance with the third subparagraph of Article 59(2) and the second subparagraph of Article 59(4) could not yet fully be off-set before the date of application of the single payment scheme, the outstanding balance shall be off-set against payments under any of the aid schemes falling under this Regulation, provided the time-limits for the off-setting stipulated in those provisions have not yet expired.’