CHAPTER 6REDUCTIONS AND EXCLUSIONS

Article 29Reductions and exclusions for under-declarations by processing undertakings

If the quantity of dried fodder indicated in one or more aid applications is greater than the quantity eligible under Article 3, the following rules shall apply:

  1. (a)

    where the difference found on an aid application is no more than 20 % of the eligible quantity, the amount of the aid shall be calculated on the basis of the eligible quantity, reduced by double the difference found;

  2. (b)

    where the difference found on an aid application is over 20 % of the eligible quantity, the aid application shall be rejected;

  3. (c)

    where the difference found on an aid application is no more than 20 % of the eligible quantity, but follows a similar finding made during the same marketing year, the aid application shall be rejected;

  4. (d)

    where the difference found on an aid application is over 50 % of the eligible quantity or where a difference of over 20 % and no more than 50 % is found once again during the same marketing year, no aid shall be granted for the current marketing year.

The amount to be recovered shall be off-set against aid payments to which the undertaking is entitled in the context of applications lodged in the marketing years following the calendar year of the finding.

Where it is found that the irregularities referred to in the first subparagraph have been committed intentionally by the processing undertaking, the beneficiary shall be excluded from aid in the current marketing year and the following year.

Article 30Reductions and exclusions applicable in the event of non-compliance with certain approval conditions by processing undertakings and approved purchasers

Where it is found that the stock records do not satisfy the conditions referred to in Article 12, or that the link between the stock records and the accounts and the supporting documents cannot be established, notwithstanding the reductions and exclusions referred to in Article 29, a reduction of between 10 % and 30 % of the amount of aid applied for for the current marketing year shall be imposed on the processing undertaking, depending on the seriousness of the infringement.

If the same irregularities are found once again within a period of two years following the first finding, the competent authority shall withdraw approval of the processing undertaking for a minimum of one and a maximum of three marketing years.