1.[F2The relevant authority must take all measures necessary to ensure proper management of public money], in particular to:
(a)check the legality and regularity of operations financed by [F3direct payment support] [F4agricultural support];
(b)ensure effective prevention against fraud, especially in areas with a higher level of risk, and which will act as a deterrent, having regard to the costs and benefits as well as the proportionality of the measures;
(c)prevent, detect and correct irregularities and fraud;
[F5(d)enforce penalties through legal proceedings, as necessary;]
(e)recover undue payments plus interest, and bring legal proceedings to that effect as necessary.
2.[F6The relevant authority] shall set up efficient management and control systems in order to ensure compliance with the legislation governing [F7direct payment] [F8agricultural] support schemes aimed at [F9ensuring proper management of public money].
[F103.Any conditions established by the relevant authority to supplement conditions for receiving direct payment support contained in retained direct EU legislation shall be verifiable.]
[F113.Any conditions established by the relevant authority to supplement conditions for receiving agricultural support contained in retained direct EU legislation shall be verifiable.]
F124.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F1Art. 58 heading substituted (31.1.2020 in so far as it relates to the Common Agricultural Policy direct payment schemes) by The Financing, Management and Monitoring of Direct Payments to Farmers (Amendment) Regulations 2020 (S.I. 2020/90), regs. 1(2), 7(1); and Art. 58 heading substituted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by The Common Agricultural Policy (Financing, Management and Monitoring) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/763), regs. 1, 7(1); 2020 c. 1, Sch. 5 para. 1(1)
F2Words in Art. 58(1) substituted (31.1.2020 in so far as it relates to the Common Agricultural Policy direct payment schemes) by The Financing, Management and Monitoring of Direct Payments to Farmers (Amendment) Regulations 2020 (S.I. 2020/90), regs. 1(2), 7(2)(a)(i); and words in Art. 58(1) substituted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by The Common Agricultural Policy (Financing, Management and Monitoring) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/763), regs. 1, 7(2)(a)(i); 2020 c. 1, Sch. 5 para. 1(1)
F3Words in Art. 58(1)(a) substituted for “the Funds” (31.1.2020 in so far as it relates to the Common Agricultural Policy direct payment schemes) by The Financing, Management and Monitoring of Direct Payments to Farmers (Amendment) Regulations 2020 (S.I. 2020/90), regs. 1(2), 7(2)(a)(ii)
F4Words in Art. 58(1)(a) substituted for “the Funds” (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by The Common Agricultural Policy (Financing, Management and Monitoring) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/763), regs. 1, 7(2)(a)(ii); 2020 c. 1, Sch. 5 para. 1(1)
F5Art. 58(1)(d) substituted (31.1.2020 in so far as it relates to the Common Agricultural Policy direct payment schemes) by The Financing, Management and Monitoring of Direct Payments to Farmers (Amendment) Regulations 2020 (S.I. 2020/90), regs. 1(2), 7(2)(a)(iii); and Art. 58(1)(d) substituted (31.12.2020 in so far as relates to common organisation of the markets and rural development measures) by The Common Agricultural Policy (Financing, Management and Monitoring) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/763), regs. 1, 7(2)(a)(iii); 2020 c. 1, Sch. 5 para. 1(1)
F6Words in Art. 58(2) substituted (31.1.2020 in so far as it relates to the Common Agricultural Policy direct payment schemes) by The Financing, Management and Monitoring of Direct Payments to Farmers (Amendment) Regulations 2020 (S.I. 2020/90), regs. 1(2), 7(2)(b)(i); and words in Art. 58(2) substituted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by The Common Agricultural Policy (Financing, Management and Monitoring) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/763), regs. 1, 7(2)(b)(i); 2020 c. 1, Sch. 5 para. 1(1)
F7Words in Art. 58(2) substituted for “Union” (31.1.2020 in so far as it relates to the Common Agricultural Policy direct payment schemes) by The Financing, Management and Monitoring of Direct Payments to Farmers (Amendment) Regulations 2020 (S.I. 2020/90), regs. 1(2), 7(2)(b)(ii)
F8Word in Art. 58(2) substituted for “Union” (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by The Common Agricultural Policy (Financing, Management and Monitoring) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/763), regs. 1, 7(2)(b)(ii); 2020 c. 1, Sch. 5 para. 1(1)
F9Words in Art. 58(2) substituted (31.1.2020 in so far as it relates to the Common Agricultural Policy direct payment schemes) by The Financing, Management and Monitoring of Direct Payments to Farmers (Amendment) Regulations 2020 (S.I. 2020/90), regs. 1(2), 7(2)(b)(iii); and words in Art. 58(2) substituted (31.12.2020 in so far as relates to common organisation of the markets and rural development measures) by The Common Agricultural Policy (Financing, Management and Monitoring) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/763), regs. 1, 7(2)(b)(iii); 2020 c. 1, Sch. 5 para. 1(1)
F10Art. 58(3) substituted (31.1.2020 in so far as it relates to the Common Agricultural Policy direct payment schemes) by The Financing, Management and Monitoring of Direct Payments to Farmers (Amendment) Regulations 2020 (S.I. 2020/90), regs. 1(2), 7(2)(c)
F11Art. 58(3) substituted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by The Common Agricultural Policy (Financing, Management and Monitoring) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/763), regs. 1, 7(2)(c); 2020 c. 1, Sch. 5 para. 1(1)
F12Art. 58(4) omitted (31.1.2020 in so far as it relates to the Common Agricultural Policy direct payment schemes) by virtue of The Financing, Management and Monitoring of Direct Payments to Farmers (Amendment) Regulations 2020 (S.I. 2020/90), regs. 1(2), 7(2)(d); and Art. 58(4) omitted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by virtue of The Common Agricultural Policy (Financing, Management and Monitoring) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/763), regs. 1, 7(2)(d); 2020 c. 1, Sch. 5 para. 1(1)
1.Except where otherwise provided, the system set up by the [F13relevant authority] in accordance with Article 58(2) shall include systematic administrative checking of all aid applications and payment claims. That system shall be supplemented by on-the-spot checks.
2.As regards the on-the-spot checks, the authority responsible shall draw its check sample from the entire population of applicants comprising, where appropriate, a random part in order to obtain a representative error rate and a risk-based part, which shall target the areas where the risk of errors is the highest.
3.The authority responsible shall draw up a report on each on-the-spot check.
[F144.Where appropriate, all on-the-spot checks provided for in [F15[F16retained direct EU legislation] regarding agricultural aid and rural development support][F15sectoral agricultural legislation] shall be carried out at the same time.]
[F144.Where appropriate, all on-the-spot checks provided for in sectoral agricultural legislation shall be carried out at the same time.]
5.[F17The relevant authority] shall ensure a minimum level of on-the-spot checks needed for an effective management of the risks[F18, and shall increase that minimum level where necessary]. [F17The relevant authority] may reduce that minimum level where the management and control systems function properly and the error rates remain at an acceptable level.
6.In cases F19... provided for F20... on the basis of point (h) of Article 62(2), aid applications and payment claims or any other communications, claims or requests may be corrected and adjusted after their submission in cases of obvious errors recognised by the competent authority.
7.An aid application or payment claim shall be rejected if the beneficiary or his representative prevents an on-the-spot check from being carried out, except in cases of force majeure or in exceptional circumstances.
Textual Amendments
F13Words in Art. 59(1) substituted (31.1.2020 in so far as it relates to the Common Agricultural Policy direct payment schemes) by The Financing, Management and Monitoring of Direct Payments to Farmers (Amendment) Regulations 2020 (S.I. 2020/90), regs. 1(2), 7(3)(a); and words in Art. 59(1) substituted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by The Common Agricultural Policy (Financing, Management and Monitoring) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/763), regs. 1, 7(3)(a); 2020 c. 1, Sch. 5 para. 1(1)
F14Art. 59(4) substituted (31.1.2020 in so far as it relates to the Common Agricultural Policy direct payment schemes) by The Financing, Management and Monitoring of Direct Payments to Farmers (Amendment) Regulations 2020 (S.I. 2020/90), regs. 1(2), 7(3)(b)
F15Words in Art. 59(4) substituted (W.) (26.3.2021 in so far as it relates to domestic support for rural development) by The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 2(9)
F16Words in Art. 59(4) substituted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by The Common Agricultural Policy (Financing, Management and Monitoring) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/763), regs. 1, 7(3)(b); 2020 c. 1, Sch. 5 para. 1(1)
F17Words in Art. 59(5) substituted (31.1.2020 in so far as it relates to the Common Agricultural Policy direct payment schemes) by The Financing, Management and Monitoring of Direct Payments to Farmers (Amendment) Regulations 2020 (S.I. 2020/90), regs. 1(2), 7(3)(c); and words in Art. 59(5) substituted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by The Common Agricultural Policy (Financing, Management and Monitoring) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/763), regs. 1, 7(3)(c); 2020 c. 1, Sch. 5 para. 1(1)
F18Words in Art. 59(5) omitted (S.) (1.1.2021) by virtue of The Common Agricultural Policy (Simplifications and Improvements) (Miscellaneous Amendments) (Scotland) Regulations 2020 (S.S.I. 2020/349), regs. 1, 3(2)
F19Words in Art. 59(6) omitted (31.1.2020 in so far as it relates to the Common Agricultural Policy direct payment schemes) by virtue of The Financing, Management and Monitoring of Direct Payments to Farmers (Amendment) Regulations 2020 (S.I. 2020/90), regs. 1(2), 7(3)(d)(i); and words in Art. 59(6) omitted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by virtue of The Common Agricultural Policy (Financing, Management and Monitoring) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/763), regs. 1, 7(3)(d)(i); 2020 c. 1, Sch. 5 para. 1(1)
F20Words in Art. 59(6) omitted (31.1.2020 in so far as it relates to the Common Agricultural Policy direct payment schemes) by virtue of The Financing, Management and Monitoring of Direct Payments to Farmers (Amendment) Regulations 2020 (S.I. 2020/90), regs. 1(2), 7(3)(d)(ii); and words in Art. 59(6) omitted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by virtue of The Common Agricultural Policy (Financing, Management and Monitoring) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/763), regs. 1, 7(3)(d)(ii); 2020 c. 1, Sch. 5 para. 1(1)
Without prejudice to specific provisions, no advantage provided for under sectoral agricultural legislation shall be granted in favour of a natural or legal person in respect of whom it is established that the conditions required for obtaining such advantages were created artificially, contrary to the objectives of that legislation.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F21Art. 61 omitted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by virtue of The Common Agricultural Policy (Financing, Management and Monitoring) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/763), regs. 1, 7(4); 2020 c. 1, Sch. 5 para. 1(1)
1.In order to ensure that the checks are carried out correctly and efficiently and that the eligibility conditions are verified in an efficient, coherent and non-discriminatory manner [F23, the Secretary of State may make regulations setting out], where the proper management of the system so requires, additional requirements with respect to customs procedures, and in particular to those laid down in Regulation (EC) No 952/2013 of the European Parliament and of the Council(1).
2.The [F24appropriate authority may make regulations], laying down rules necessary for the uniform application of this Chapter, and in particular:
(a)rules on administrative and on-the-spot checks to be conducted by the [F25relevant authority] with regard to the respect of obligations, commitments and eligibility criteria F26...;
(b)rules on the minimum level of on-the-spot checks and [F27on the obligation to increase it or] the possibility of reducing it as set out in Article 59(5);
(c)the rules and methods applicable to the reporting of the checks and verifications carried out and their results;
[F28(d)the authorities responsible for performing the checks for compliance as well as to the content, the frequency and the marketing stage to which those checks are to apply;]
[F28(d)the authorities responsible for performing compliance checks and the content and frequency of those checks;]
F29(e). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F29(f). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(g)with regard to wine as referred to in Regulation (EU) No 1308/2013, rules on the measurement of areas, on checks and on rules governing the specific financial procedures for the improvement of checks;
(h)the cases in which aid applications and payments claims or any other communications, claims or requests may be corrected and adjusted after their submission, as referred to in Article 59(6);
(i)the tests and methods to be applied in order to establish the eligibility of products for public intervention and private storage, as well as the use of tendering procedures, both for public intervention and for private storage.
F30...
[F313.Point (i) of paragraph 2 does not apply in relation to public intervention schemes in England, otherwise than in connection with exceptional market conditions which are the subject of a declaration under section 20 of the Agriculture Act 2020.]
[F324.Point (i) of paragraph 2 ceases to apply in relation to public intervention schemes in Scotland, otherwise than in connection with public intervention measures which the appropriate authority takes under Article 219(1) of Regulation (EU) No 1308/2013, for a period of five years beginning on 1 July 2023.]
Textual Amendments
F22Art. 62 heading substituted (31.12.2020) by The Agriculture (Legislative Functions) (EU Exit) Regulations 2019 (S.I. 2019/748), regs. 1, 12(a) (as substituted by S.I. 2020/1445, regs. 1(2)(b), 10(5)); 2020 c. 1, Sch. 5 para. 1(1)
F23Words in Art. 62(1) substituted (31.12.2020) by The Agriculture (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/1402), regs. 1(3), 10; 2020 c. 1, Sch. 5 para. 1(1)
F24Words in Art. 62(2) substituted (31.12.2020) byThe Agriculture (Legislative Functions) (EU Exit) Regulations 2019 (S.I. 2019/748), regs. 1, 12(b)(i) (as substituted by S.I. 2020/1445, regs. 1(2)(b), 10(5)); 2020 c. 1, Sch. 5 para. 1(1)
F25Words in Art. 62(2)(a) substituted (31.12.2020) byThe Agriculture (Legislative Functions) (EU Exit) Regulations 2019 (S.I. 2019/748), regs. 1, 12(b)(ii)(aa) (as substituted by S.I. 2020/1445, regs. 1(2)(b), 10(5)); 2020 c. 1, Sch. 5 para. 1(1)
F26Words in Art. 62(2)(a) omitted (31.12.2020) byThe Agriculture (Legislative Functions) (EU Exit) Regulations 2019 (S.I. 2019/748), regs. 1, 12(b)(ii)(bb) (as substituted by S.I. 2020/1445, regs. 1(2)(b), 10(5)); 2020 c. 1, Sch. 5 para. 1(1)
F27Words in Art. 62(2)(b) omitted (S.) (1.1.2021) by virtue of The Common Agricultural Policy (Simplifications and Improvements) (Miscellaneous Amendments) (Scotland) Regulations 2020 (S.S.I. 2020/349), regs. 1, 3(3)
F28Art. 62(2)(d) substituted (31.1.2020 in so far as it relates to the Common Agricultural Policy direct payment schemes) by The Financing, Management and Monitoring of Direct Payments to Farmers (Amendment) Regulations 2020 (S.I. 2020/90), regs. 1(2), 7(4)(b)(iii)
F29Art. 62(2)(e)(f) omitted (31.12.2020) byThe Agriculture (Legislative Functions) (EU Exit) Regulations 2019 (S.I. 2019/748), regs. 1, 12(b)(iii) (as substituted by S.I. 2020/1445, regs. 1(2)(b), 10(5)); 2020 c. 1, Sch. 5 para. 1(1)
F30Words in Art. 62(2) omitted (31.12.2020) byThe Agriculture (Legislative Functions) (EU Exit) Regulations 2019 (S.I. 2019/748), regs. 1, 12(b)(iv) (as substituted by S.I. 2020/1445, regs. 1(2)(b), 10(5)); 2020 c. 1, Sch. 5 para. 1(1)
F31Art. 62(3) inserted (E.) (28.2.2023 at 9.10 a.m.) by The Market Measures Payment Schemes (Amendments, Revocation and Transitional Provision) (England) Regulations 2023 (S.I. 2023/124), regs. 1(2)(b), 3(6) (with reg. 10)
F32Art. 62(4) inserted (S.) (1.7.2023) by The Public Intervention and Private Storage Aid (Amendment and Suspension) (Scotland) Regulations 2023 (S.S.I. 2023/150), regs. 1, 2(6) (with reg. 10)
1.Where it is found that a beneficiary does not comply with the eligibility criteria, commitments or other obligations relating to the conditions for the granting of the aid or support, as provided for in the sectoral agricultural legislation, the aid [F33shall] [F33may] not be paid or [F33shall] [F33may] be withdrawn in full or in part [F34and, where relevant, the corresponding payment entitlements as referred to in Article 21 of Regulation (EU) No 1307/2013 [F33shall] [F33may] not be allocated or [F33shall] [F33may] be withdrawn].
[F35[F36Where the non-compliance concerns F37... rules on public procurement, the part of the aid not to be paid or to be withdrawn [F33shall][F33may] be determined on the basis of the gravity of the non-compliance and in accordance with the principle of proportionality. The legality and regularity of the transaction [F33shall] [F33may] only be affected up to the level of the part of the aid not to be paid or to be withdrawn.]]
2.Moreover, where sectoral agricultural legislation so provides, [F38the [F39relevant authority] shall] [F39relevant authority may] also impose administrative penalties, in accordance with the rules laid down in [F40Article 64 and] Article 77. [F41This shall be without prejudice to the provisions set out in Articles 91 to 101 of Title VI.]
3.Without prejudice to Article 54(3), the amounts, including interest thereon, [F42and payment entitlements,] concerned by the withdrawal referred to in paragraph 1 and by the penalties referred to in paragraph 2 [F43shall] [F43may] be recovered.
4.The [F44appropriate authority may make regulations] laying down the conditions for the partial or total withdrawal referred to in paragraph 1.
5.[F45The appropriate authority may make regulations] laying down detailed procedural and technical rules on:
(a)the application and calculation of the partial or total withdrawal referred to in paragraph 1;
(b)the recovery of undue payments and penalties as well as [F46in respect of unduly allocated payment entitlements and]F47... the application of interest.
F48...
Textual Amendments
F33Word in Art. 63(1) substituted (E.) (28.7.2022 in so far as it relates to rural development support measures) by The Rural Development (Amendment) (England) Regulations 2022 (S.I. 2022/765), regs. 1(1), 8(2)(a)
F34Words in Art. 63(1) omitted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by virtue of The Common Agricultural Policy (Financing, Management and Monitoring) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/763), regs. 1, 7(5)(a)(i) (as substituted by S.I. 2020/1445, regs. 1(2)(b), 3(7)(a)(i)); 2020 c. 1, Sch. 5 para. 1(1)
F35Words in Art. 63(1) omitted (31.1.2020 in so far as it relates to the Common Agricultural Policy direct payment schemes) by virtue of The Financing, Management and Monitoring of Direct Payments to Farmers (Amendment) Regulations 2020 (S.I. 2020/90), regs. 1(2), 7(5)(a)
F36Inserted by Regulation (EU) 2017/2393 of the European Parliament and of the Council of 13 December 2017 amending Regulations (EU) No 1305/2013 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD), (EU) No 1306/2013 on the financing, management and monitoring of the common agricultural policy, (EU) No 1307/2013 establishing rules for direct payments to farmers under support schemes within the framework of the common agricultural policy, (EU) No 1308/2013 establishing a common organisation of the markets in agricultural products and (EU) No 652/2014 laying down provisions for the management of expenditure relating to the food chain, animal health and animal welfare, and relating to plant health and plant reproductive material.
F37Words in Art. 63(1) omitted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by virtue of The Common Agricultural Policy (Financing, Management and Monitoring) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/763), regs. 1, 7(5)(a)(ii) (as substituted by S.I. 2020/1445, regs. 1(2)(b), 3(7)(a)(i)); 2020 c. 1, Sch. 5 para. 1(1)
F38Words in Art. 63(2) substituted (31.1.2020 in so far as it relates to the Common Agricultural Policy direct payment schemes) by The Financing, Management and Monitoring of Direct Payments to Farmers (Amendment) Regulations 2020 (S.I. 2020/90), regs. 1(2), 7(5)(b)(i); and words in Art. 63(2) substituted (31.12.2020 insofar as relates to common organisation of the markets and rural development measures) by The Common Agricultural Policy (Financing, Management and Monitoring) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/763), regs. 1, 7(5)(b); 2020 c. 1, Sch. 5 para. 1(1)
F39Words in Art. 63(2) substituted (E.) (28.7.2022 in so far as it relates to rural development support measures) by The Rural Development (Amendment) (England) Regulations 2022 (S.I. 2022/765), regs. 1(1), 8(2)(b)
F40Words in Art. 63(2) omitted (31.1.2020 in so far as it relates to the Common Agricultural Policy direct payment schemes) by virtue of The Financing, Management and Monitoring of Direct Payments to Farmers (Amendment) Regulations 2020 (S.I. 2020/90), regs. 1(2), 7(5)(b)(ii)
F41Words in Art. 63(2) revoked (E.) (1.1.2024) by The Agriculture (Removal of Cross-Compliance and Miscellaneous Revocations and Amendments, etc.) (England) Regulations 2023 (S.I. 2023/816), reg. 1(1), Sch. Pt. 1 para. 1 Table 2 (with Sch. Pt. 2 para. 2)
F42Words in Art. 63(3) omitted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by virtue of The Common Agricultural Policy (Financing, Management and Monitoring) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/763), regs. 1, 7(5)(c) (as inserted by S.I. 2020/1445, regs. 1(2)(b), 3(7)(a)(ii)); 2020 c. 1, Sch. 5 para. 1(1)
F43Word in Art. 63(3) substituted (E.) (28.7.2022 in so far as it relates to rural development support measures) by The Rural Development (Amendment) (England) Regulations 2022 (S.I. 2022/765), regs. 1(1), 8(2)(c)
F44Words in Art. 63(4) substituted (31.12.2020) by The Agriculture (Legislative Functions) (EU Exit) Regulations 2019 (S.I. 2019/748), regs. 1, 13(a); 2020 c. 1, Sch. 5 para. 1(1)
F45Words in Art. 63(5) substituted (31.12.2020) by The Agriculture (Legislative Functions) (EU Exit) Regulations 2019 (S.I. 2019/748), regs. 1, 13(b)(i); 2020 c. 1, Sch. 5 para. 1(1)
F46Words in Art. 63(5)(b) inserted (W.) (26.3.2021 in so far as it relates to domestic support for rural development) by The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 15(2)
F47Words in Art. 63(5)(b) omitted (31.12.2020) by The Agriculture (Legislative Functions) (EU Exit) Regulations 2019 (S.I. 2019/748), regs. 1, 13(b)(ia) (as inserted by S.I. 2020/1445, regs. 1(2)(b), 10(6)); 2020 c. 1, Sch. 5 para. 1(1)
F48Words in Art. 63(5) omitted (31.12.2020) by virtue of The Agriculture (Legislative Functions) (EU Exit) Regulations 2019 (S.I. 2019/748), regs. 1, 13(b)(ii); 2020 c. 1, Sch. 5 para. 1(1)
1.As regards the administrative penalties referred to in Article 63(2), this Article shall apply in cases of non-compliance in relation to eligibility criteria, commitments or other obligations resulting from the application of sectoral agricultural legislation, with the exception of those referred to in Articles 67 to 78 of Chapter II of this Title [F49and in Articles 91 to 101 of Title VI] and of those subject to the penalties provided for in Article 89(3) and 89(4).
2.No administrative penalties shall be imposed:
(a)where the non-compliance is due to force majeure;
(b)where the non-compliance is due to obvious errors as referred to in Article 59(6);
(c)where the non-compliance is due to an error of the competent authority or another authority, and where the error could not reasonably have been detected by the person concerned by the administrative penalty;
(d)where the person concerned can demonstrate to the satisfaction of the competent authority that he or she is not at fault for the non-compliance with the obligations referred to in paragraph 1 or if the competent authority is otherwise satisfied that the person concerned is not at fault;
(e)where the non-compliance is of a minor nature, including where expressed in the form of a threshold, [F50set] in accordance with point (b) of paragraph 7;
(f)other cases in which the imposition of a penalty is not appropriate, [F51defined] in accordance with point (b) of paragraph 6.
3.Administrative penalties may be imposed on the beneficiary of the aid or support and on other natural or legal persons, including groups or associations of such beneficiaries or other persons, bound by the obligations laid down in the rules referred to in paragraph 1.
4.The administrative penalties may take one of the following forms:
(a)a reduction in the amount of aid or support to be paid in relation to the aid application or payment claim affected by the non-compliance or further applications; however as regards rural development support, this shall be without prejudice to the possibility of suspending the support where it can be expected that the non-compliance can be addressed by the beneficiary within a reasonable time;
(b)payment of an amount calculated on the basis of the quantity and/or the period concerned by the non-compliance;
(c)suspension or withdrawal of an approval, recognition or authorisation;
(d)exclusion from the right to participate in or benefit from the aid scheme or support measure or other measure concerned;
5.The administrative penalties shall be proportionate [F52and graduated according to the severity, extent, duration and reoccurrence of the non-compliance found,] and shall respect the following limits:
(a)the amount of the administrative penalty as referred to in point (a) of paragraph 4 shall not exceed 200 % of the amount of the aid application or payment claim;
(b)notwithstanding point (a), as regards rural development, the amount of the administrative penalty, as referred to in point (a) of paragraph 4, shall not exceed 100 % of the eligible amount;
(c)the amount of the administrative penalty, as referred to in point (b) of paragraph 4, shall not exceed an amount comparable to the percentage referred to in point (a) of this paragraph;
(d)the suspension, withdrawal or exclusion referred to in points (c) and (d) of paragraph 4 may be set at a maximum of three consecutive years which may be renewed in the case of any new non-compliance.
6.In order to take account of the deterrent effect of charges and penalties to be imposed on the one hand, and the special characteristics of each aid scheme or support measure covered by sectoral agricultural legislation on the other hand, the [F53appropriate authority may make regulations]:
(a)identifying, for each aid scheme or support measure and person concerned as referred to in paragraph 3, from the list set out in paragraph 4 and within the limits laid down in paragraph 5, the administrative penalty and determining the specific rate to be imposed F54... including in cases of non-quantifiable non-compliance;
(b)identifying the cases in which the administrative penalties are not to be imposed, as referred to in point (f) of paragraph 2.
7.[F55The appropriate authority may make regulations], laying down detailed procedural and technical rules for the uniform application of this Article on:
(a)the application and calculation of the administrative penalties;
(b)the detailed rules for identifying a non-compliance as minor, including the setting of a quantitative threshold expressed as a nominal value or a percentage of the eligible amount of aid or support, which as regards rural development support shall not be less than 3 % and which as regards all other aid or support shall not be less than 1 %;
F56(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F57...
Textual Amendments
F49Words in Art. 64(1) revoked (E.) (1.1.2024) by The Agriculture (Removal of Cross-Compliance and Miscellaneous Revocations and Amendments, etc.) (England) Regulations 2023 (S.I. 2023/816), reg. 1(1), Sch. Pt. 1 para. 1 Table 2 (with Sch. Pt. 2 para. 2)
F50Word in Art. 64(2)(e) substituted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by The Common Agricultural Policy (Financing, Management and Monitoring) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/763), regs. 1, 7(6)(a); 2020 c. 1, Sch. 5 para. 1(1)
F51Word in Art. 64(2)(f) substituted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by The Common Agricultural Policy (Financing, Management and Monitoring) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/763), regs. 1, 7(6)(b); 2020 c. 1, Sch. 5 para. 1(1)
F52Words in Art. 64(5) omitted (E.) (28.7.2022 in so far as it relates to rural development support measures) by virtue of The Rural Development (Amendment) (England) Regulations 2022 (S.I. 2022/765), regs. 1(1), 8(3)
F53Words in Art. 64(6) substituted (31.12.2020) by The Agriculture (Legislative Functions) (EU Exit) Regulations 2019 (S.I. 2019/748), regs. 1, 14(a)(i); 2020 c. 1, Sch. 5 para. 1(1)
F54Words in Art. 64(6)(a) omitted (31.12.2020) by virtue of The Agriculture (Legislative Functions) (EU Exit) Regulations 2019 (S.I. 2019/748), regs. 1, 14(a)(ii); 2020 c. 1, Sch. 5 para. 1(1)
F55Words in Art. 64(7) substituted (31.12.2020) by The Agriculture (Legislative Functions) (EU Exit) Regulations 2019 (S.I. 2019/748), regs. 1, 14(b)(i); 2020 c. 1, Sch. 5 para. 1(1)
F56Art. 64(7)(c) omitted (31.12.2020) by virtue of The Agriculture (Legislative Functions) (EU Exit) Regulations 2019 (S.I. 2019/748), regs. 1, 14(b)(ii); 2020 c. 1, Sch. 5 para. 1(1)
F57Words in Art. 64(7) omitted (31.12.2020) by virtue of The Agriculture (Legislative Functions) (EU Exit) Regulations 2019 (S.I. 2019/748), regs. 1, 14(b)(iii); 2020 c. 1, Sch. 5 para. 1(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F58Art. 65 omitted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by virtue of The Common Agricultural Policy (Financing, Management and Monitoring) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/763), regs. 1, 7(7); 2020 c. 1, Sch. 5 para. 1(1)
1.The [F59relevant authority] shall, when the sectoral agricultural legislation so provides, request the lodging of a security giving the assurance that a sum of money will be paid or forfeited to a competent authority if a particular obligation under sectoral agricultural legislation is not fulfilled.
2.Except in cases of force majeure, the security shall be forfeited in whole or in part where the execution of a particular obligation is not carried out, or is carried out only partially.
3.The [F60appropriate authority may make regulations] laying down rules which ensure a non discriminatory treatment, equity and the respect of proportionality when lodging a security, and:
(a)specifying the responsible party in the event that an obligation is not met;
(b)laying down the specific situations in which the competent authority may waive the requirement of a security;
(c)laying down the conditions applying to the security to be lodged and the guarantor and the conditions for lodging and releasing that security;
(d)laying down the specific conditions related to the security lodged in connection with advance payments;
(e)setting out the consequences of breaching the obligations for which a security has been lodged, as provided for in paragraph 1, including the forfeiting of securities, the rate of reduction to be applied on release of securities for refunds, licences, offers, tenders or specific applications and when an obligation covered by that security has not been met either wholly or in part, taking into account the nature of the obligation, the quantity for which the obligation has been breached, the period exceeding the time limit by which the obligation should have been met and the time by which evidence that the obligation has been met is produced.
4.[F61The appropriate authority may make regulations] laying down rules on:
(a)the form of the security to be lodged and the procedure for lodging the security, for accepting it, and for replacing the original security;
(b)the procedures for the release of a security;
F62(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F63...
Textual Amendments
F59Words in Art. 66(1) substituted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by The Common Agricultural Policy (Financing, Management and Monitoring) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/763), regs. 1, 7(8); 2020 c. 1, Sch. 5 para. 1(1)
F60Words in Art. 66(3) substituted (31.12.2020) by The Agriculture (Legislative Functions) (EU Exit) (No. 2) Regulations 2019 (S.I. 2019/831), regs. 1(4)(a), 63(a); 2020 c. 1, Sch. 5 para. 1(1)
F61Words in Art. 66(4) substituted (31.12.2020) by The Agriculture (Legislative Functions) (EU Exit) (No. 2) Regulations 2019 (S.I. 2019/831), regs. 1(4)(a), 63(b)(i); 2020 c. 1, Sch. 5 para. 1(1)
F62Art. 66(4)(c) omitted (31.12.2020) by virtue of The Agriculture (Legislative Functions) (EU Exit) (No. 2) Regulations 2019 (S.I. 2019/831), regs. 1(4)(a), 63(b)(ii); 2020 c. 1, Sch. 5 para. 1(1)
F63Words in Art. 66(4) omitted (31.12.2020) by virtue of The Agriculture (Legislative Functions) (EU Exit) (No. 2) Regulations 2019 (S.I. 2019/831), regs. 1(4)(a), 63(b)(iii); 2020 c. 1, Sch. 5 para. 1(1)
Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code (OJ L 269, 10.10.2013, p. 1).