
Article 1 
Regulation (EC) No 796/2004 is amended as follows:

1.. Article 2 is amended as follows:

((a)) in the first paragraph, point (1)(a) is replaced by the following:
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(1a) “agricultural parcel”: shall mean a continuous area of land on which a single crop group is cultivated by a single farmer; however, where a separate declaration of the use of an area within a crop group is required in the context of this Regulation, that specific use shall further limit the agricultural parcel;'
((b)) the second paragraph is replaced by the following:
'For the purposes of this Regulation, “new Member States” shall mean Bulgaria, the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Romania, Slovenia and Slovakia.';
2.. Article 8(2) is replaced by the following:
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2. Where an area is used in common, the competent authorities shall notionally allocate it between the individual farmers in proportion to their use or right of use of it.';
3.. in the second subparagraph of Article 12(4), the first sentence is replaced by the following:
‘If the correction relates to the reference parcel area, the farmer shall declare the up-to-date area of each agricultural parcel concerned and where necessary indicate the new boundaries of the reference parcel.’;
4.. Article 13 is amended as follows:

((a)) Paragraph 6 is replaced by the following:
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6. In the case of an application for energy crops provided for in Chapter 5 of Title IV of Regulation (EC) No 1782/2003, the single application shall contain a copy of the contract the applicant has concluded with a collector or a first processor pursuant to Article 25 of Regulation (EC) No 1973/2004 or, in case of application of Article 33(2) of that Regulation, a written declaration in accordance with that Article.';
((b)) the following paragraph is added:
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14. The information required in the supporting documents set out in this Article may, when possible, be requested directly from the source of the information by the competent authority.';
5.. Article 15 is amended as follows:

((a)) in paragraph 1, the third and fourth subparagraphs are replaced by the following:
'Where the amendments referred to in the first and second subparagraphs have a bearing on any supporting documents or contracts to be submitted, the related amendments to such documents or contracts shall also be allowed.';
((b)) in paragraph 2, the second subparagraph is replaced by the following:
'However, in respect of the year 2007, the amendments made in accordance with paragraph 1 of this Article shall be notified to the competent authority by 15 June at the latest in those Member States which apply Article 48c(8) of Regulation (EC) No 795/2004. In duly justified cases, notifications of such amendments shall be accepted until 20 days following the publication of Regulation (EC) No 972/2007 in the Official Journal of the European Union.'
6.. in Article 17a(2), the second subparagraph is deleted;
7.. Article 21(3) is deleted;
8.. Article 24(1)(f) is replaced by the following:
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((f)) where supporting documents, contracts, growing declarations or written declarations in accordance with Article 33(2) of Regulation (EC) No 1973/2004 have to be submitted and where applicable, between the agricultural parcels as declared in the single application and in the supporting documents, contracts, growing declarations or written declarations in accordance with Article 33(2) of Regulation (EC) No 1973/2004 to verify the eligibility for aid of the area;'
9.. Article 26 is amended as follows:

((a)) Paragraph 1 is replaced by the following:
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1. The total number of on-the-spot checks carried out each year shall cover at least 5 % of all farmers applying for the single payment scheme or the single area payment scheme.The Member States shall assure that on-the-spot checks cover at least 3 % of the farmers applying for aid under each of other area related aid schemes provided for under Titles III, IV and IVa of Regulation (EC) No 1782/2003.';
((b)) Paragraph 2 is amended as follows:

((i)) point (c) is replaced by the following:
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((c)) 5 % of all farmers applying for aid under the ovine/caprine aid scheme irrespective of whether the aid applications are being submitted as part of the single application or independently; those on-the-spot checks shall also cover at least 5 % of all animals for which aid is applied for; however, where the computerised database for ovine/caprine animals provided for in Article 8 of Regulation (EC) No 21/2004 does not offer the level of assurance and implementation necessary for the proper management of the aid schemes involved, the percentage shall be increased to 10 % of the farmers.';
((ii)) point (e) is replaced by the following:
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((e)) 3 % of all farmers whose agricultural parcels are being declared by a producer group applying for hops payments in accordance with Article 15a.';
10.. Article 27 is amended as follows:

((a)) The first subparagraph of paragraph 1 is replaced by the following:
'Control samples for on-the-spot checks under this Regulation shall be selected by the competent authority on the basis of a risk analysis and representativeness of the aid applications submitted. The effectiveness of risk analysis shall be assessed and updated on an annual basis:
((a)) by establishing the relevance of each risk factor;
((b)) by comparing the results of the risk based and randomly selected sample referred to in the second subparagraph;
((c)) by taking into account the specific situation in the Member State.';
((b)) Paragraph 2 is deleted;
((c)) the following paragraph is added:
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4. A partial selection of the control sample may, where appropriate, be made before the end of the application period in question, on the basis of available information. The provisional sample shall be completed when all relevant applications are available.';
11.. in Article 28(1), point (d) is replaced by the following:
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((d)) the number and type of animals found and, where applicable, the ear tag numbers, entries in the register and in the computerised databases for bovine and/or ovine/caprine animals and any supporting documents checked, the results of the checks and, where applicable, particular observations in respect of individual animals and/or their identification code.'
12.. Article 29 is replaced by the following:
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Article 29 
On-the-spot checks shall cover all the agricultural parcels for which aid is requested under aid schemes listed in Annex I to Regulation (EC) No 1782/2003, except those related to applications for seed aid in accordance with Article 99 of that Regulation. Nevertheless, the actual determination of the areas as part of an on-the-spot check may be limited to a sample of at least 50 % of the agricultural parcels for which an application has been submitted under the aid schemes established in Titles III, IV and IVa of Regulation (EC) No 1782/2003 provided that the sample guarantees a reliable and representative level of control both in respect of area checked and aid claimed. When this sample check reveals anomalies the sample of agricultural parcels actually inspected shall be increased.
Member States may make use of remote sensing and Global Navigation Satellite Systems techniques.';
13.. Article 30(1) is replaced by the following:
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1. Agricultural parcel areas shall be determined by any means proven to assure measurement of quality at least equivalent to that required by applicable technical standard, as drawn up at Community level.A measurement tolerance shall be defined by a buffer of maximum 1,5 m applied to the perimeter of the agricultural parcel. The maximum tolerance with regard to each agricultural parcel shall not, in absolute terms, exceed 1,0 ha.The tolerance provided for in the second subparagraph shall not apply to olive parcels for which the area is expressed in olive GIS-ha in accordance with points 2 and 3 of Annex XXIV to Regulation (EC) No 1973/2004.';
14.. Article 32 is replaced by the following:
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Article 32 

1. Where a Member State applies the possibility, provided for in the second paragraph of Article 29, to carry out on-the-spot checks by remote sensing, it shall:
(a) perform photo interpretation of satellite images or aerial photographs of all agricultural parcels per application to be checked with a view to recognising the ground cover and measuring the area;
(b) carry out physical inspections in the field of all agricultural parcels for which photo interpretation does not make it possible to verify the accuracy of the declaration to the satisfaction of the competent authority.
2. The additional checks referred to in Article 26(3) shall be carried out by means of traditional on-the-spot checks if it is no longer possible to carry them out by means of remote sensing within the current year.';
15.. in Article 33a, the first paragraph is replaced by the following:
'The on-the-spot checks referred to in Article 26(2)(e) shall be carried out by way of application of the provisions of Article 29, Article 30(1), the first and second subparagraphs of Article 30(2), Article 30(3), Article 30(4) and Article 32 mutatis mutandis.';
16.. Article 35 is amended as follows:

((a)) in the first subparagraph of paragraph 2(b), the first and second indents are replaced by the following:
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— of the correctness of entries in the register and the notifications to the computerised database for bovine animals on the basis of a sample of supporting documents such as purchase and sales invoices, slaughter certificates, veterinary certificates and, where applicable, animal passports, in relation to animals for which aid applications were submitted in the six months prior to the on-the-spot check; however if anomalies are found, the check shall be extended to 12 months prior to the on-the-spot check,
— that information held in the computerised database for bovine animals corresponds to the information given in the register on the basis of a sample in relation to animals for which aid applications were submitted in the six months prior to the on-the-spot check; however if anomalies are found the check shall be extended to 12 months prior to the on-the-spot check,';
((b)) Paragraph 2(c) is replaced by the following:
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((c)) in relation to the ovine/caprine aid scheme:

— a check on the basis of the register that all the animals for which aid application were submitted have been kept on the holding throughout the retention period,
— a check of the correctness of entries in the register in the six months prior to the on-the-spot check, based on a sample of supporting documents such as purchase and sales invoices and veterinary certificates covering the six months prior to the on-the-spot check; however if anomalies are found the check shall be extended to 12 months prior to the on-the-spot check.';
17.. in Article 38, the first sentence is replaced by the following:
‘As regards the additional payment to be granted for specific types of farming or for quality production as provided for in Article 69 of Regulation (EC) No 1782/2003, the Member States shall, where appropriate, apply the provisions of this Title.’;
18.. in Article 49(1), points (d), (e) and (f) are deleted;
19.. Article 50 is amended as follows:

((a)) In paragraph 3, the following subparagraphs are added:
'However, without prejudice to Article 29 of Regulation (EC) No 1782/2003, if the difference between the total area determined and the total area declared for payment under aid schemes established in Titles III, IV and IVa of Regulation (EC) No 1782/2003 is less than or equal to 0,1 hectare, the area determined shall be set equal to the area declared. For this calculation only over-declarations of areas at crop group level shall be taken into account.The provision referred to in the second subparagraph shall not apply where that difference represents more than 20 % of the total area declared for payments.';
((b)) Paragraph 6 is deleted;
20.. in Article 53, the first subparagraph is replaced by the following:
'Where differences between the area declared and the area determined in accordance with Article 50(3), (4)(b) and (5) result from irregularities committed intentionally, the aid to which the farmer would have been entitled pursuant to Article 50(3), (4)(b) and (5) shall not be granted for the calendar year in question under the aid scheme concerned if that difference is more than 0,5 % of the area determined or more than one hectare.';
21.. in the first paragraph of Article 54a, the introductory phrase is replaced by the following:
'Where it is found that tobacco was not replanted on the parcel indicated in the cultivation contract by 20 June of the year of harvest:';
22.. Article 55 and 56 are deleted;
23.. in Article 58(1), the second sentence is replaced by the following:
‘However, suckler cows or heifers in respect of which aid is claimed in accordance with Article 125 or Article 129 of Regulation (EC) No 1782/2003 may be replaced during the retention period within the limits provided for in those Articles without the loss of the right to the payment of the aid applied for.’;
24.. Article 63 is replaced by the following:
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Article 63 
As regards the additional payment to be granted for specific types of farming or for quality production as provided for in Article 69 of Regulation (EC) No 1782/2003, the Member States shall provide for reductions and exclusions which shall, in substance, be equivalent to those provided for in this Title. In case area-related or livestock payments are granted the provisions of this Part shall apply mutatis mutandis.'
25.. in Article 73a, the following paragraph 2a is inserted:
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2a. Where, for the purpose of the application of paragraphs 1 and 2 it is established that the number of the entitlements allocated to a farmer in accordance with Regulation (EC) No 795/2004 is incorrect, and where the unduly allocation has no impact on the total value of the entitlements the farmer received, the Member State shall recalculate the payment entitlements and where appropriate correct the type of the entitlements allocated to the farmer. However, this shall not apply if the errors could reasonably have been detected by the farmers.';
26.. Article 76(1) is replaced by the following:
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1. Member States shall submit to the Commission by 15 July each year at the latest, for the aid schemes covered by the Integrated Administrative Control System, a report covering the previous calendar year and, in particular, relating to the following points:
(a) the state of implementation of the integrated system, including in particular the options chosen for the control of the cross-compliance requirements and the competent control bodies responsible for the controls of the cross-compliance requirements and conditions;
(b) the number of claimants as well as the total area, total number of animals and the total of quantities;
(c) the number of claimants as well as the total area, the total number of animals and the total of quantities, covered by checks;
(d) the result of the checks carried out, indicating the reductions and exclusions applied pursuant to Title IV;
(e) the results of the checks relating to cross-compliance in accordance with Chapter III of Title III.'
Article 2 
This Regulation shall enter into force on the day of its publication in the Official Journal of the European Union.
It shall apply to aid applications relating to years or premium periods starting from 1 January 2008.
However, points (1)(b) and (5)(b) of Article 1 shall apply to aid applications relating to years or premiums starting from 1 January 2007.
This Regulation shall be binding in its entirety and directly applicable in all Member States.Done at Brussels, 20 August 2007.
For the Commission
Mariann FISCHER BOEL
Member of the Commission