Regulation (EU) No 65/2011 is amended as follows:

1. (1)

   in Article 2, the following definitions are added:

   1. ‘(d)

      “Area-related measures” means measures or sub-measures for which support is based on the size of the area declared;

   2. (e)

      “Animal-related measures” means measures or sub-measures for which support is based on the number of animals declared.’;

2. (2)

   in Article 6(2), points (a) and (b) are deleted;

3. (3)

   Article 17 is amended as follows:

   1. (a)

      in paragraph 3, the first subparagraph is replaced by the following:

      ‘3.

      A bovine animal which has lost one of the two ear tags shall be deemed to belong to the animals determined provided that it is clearly and individually identified by the other elements of the system for the identification and registration of bovine animals. Furthermore, where one single bovine animal of a holding has lost two ear tags it shall be deemed to belong to the animals determined provided that the animal can still be identified by register, animal passport, database or other means laid down in Regulation (EC) No 1760/2000 of the European Parliament and of the Council6 and provided that the keeper can provide evidence that he had already taken action to remedy the situation before the announcement of the on-the-spot check.’;

   2. (b)

      the following paragraphs are inserted:

      ‘3a.

      An ovine or caprine animal which has lost one ear tag shall be deemed to belong to the animals determined provided that the animal can still be identified by a first means of identification in accordance with Article 4(2)(a) of Council Regulation (EC) No 21/20047 and provided that all other requirements of the system for the identification and registration of ovine and caprine animals are fulfilled.

      3b.

      Where a beneficiary has failed to inform the competent authorities pursuant to the second subparagraph of Article 16(1) of Regulation (EC) No 1122/2009 that animals were moved to another location during the retention period, the animals concerned shall be deemed to belong to the animals determined if the animals were immediately located within the holding during the on-the-spot check.’;

   3. (c)

      in the third subparagraph of paragraph 5, the second sentence is deleted;

   4. (d)

      in the second subparagraph of paragraph 7, the second sentence is deleted;

   5. (e)

      the following paragraph is added:

      ‘8.

      The amount resulting from the exclusions provided for in the third subparagraph of paragraph 5 and in the second subparagraph of paragraph 7 of this Article shall be offset in accordance with Article 5b of Commission Regulation (EC) No 885/2006. If the amount cannot be fully offset in accordance with that Article in the course of the 3 calendar years following the calendar year of the finding, the outstanding balance shall be cancelled.’;

4. (4)

   in Article 22, the sixth indent is replaced by the following:

   1. ‘—

      finally, in accordance with Articles 16(7) and 17(8) of this Regulation.’;

5. (5)

   in Article 31(a), point (ii) is replaced by the following:

   1. ‘(ii)

      for area-related measures, the total area broken down by individual aid scheme;’.

This Regulation shall enter into force on the seventh day following its publication in the Official Journal of the European Union.