1.The financial contribution from the Community as referred to in Article 2 shall only be made in respect of justified and reasonable payments for the eligible costs as set out in Annex I.
2.Non-compliance by the Portuguese authorities with the payment deadline referred to in Article 3(a) shall lead to a reduction in the eligible amounts, in accordance with the rules below:
25 % reduction for payments made between 91 and 105 days after slaughter of the animals;
50 % reduction for payments made between 106 and 120 days after slaughter of the animals;
75 % reduction for payments made between 121 and 135 days after slaughter of the animals;
100 % reduction for payments made later than 136 days after slaughter of the animals.
However, the Commission may apply a different scale and/or lower reduction rates (or a zero reduction rate) if specific management conditions can be demonstrated for certain measures or if Portugal provides a well grounded justification for the delay.
3.The financial contribution from the Community as referred to in Article 2 shall exclude:
(a)value added tax;
(b)remunerations of civil servants or public employees;
(c)the use of public equipment, except consumables;
(d)compensation for non-compulsory slaughter;
(e)compensation paid in addition to other Community support, such as slaughter premiums, in contravention of Community rules;
(f)compensation linked to the destruction or renovation of farm buildings, infrastructure costs and costs linked to financial losses or unemployment associated with the presence of the disease or a ban on restocking.