the Paying Agency Regulations, 2005

L.N. 346 of 2005

AGRICULTURE AND FISHERIES INDUSTRIES

(FINANCIAL ASSISTANCE) ACT

(CAP. 146)

Cross-Compliance Related to EU Aid Applications in terms of

the Paying Agency Regulations, 2005

IN exercise of the powers conferred by article 7 of the Agriculture

and Fisheries (Financial Assistance) Act, the Minister for Rural Affairs

and the Environment has made the following regulations>

(1) The title of these regulations is the Cross-Compliance

Related to EU Aid Applications in terms of the Paying Agency

Regulations, 2005.

(2) The scope of these regulations is to determine the

structure for the management of Cross Compliance, and the obligations

related thereto, particularly for the statutory management requirements

referred to in paragraph 5 of Government Notice No. 141 of the 15 th

February, 2005, and the Good Agricultural and Environmental

Conditions, Good Farming Practices and the Code of Good Agricultural

Practices mentioned in paragraph 6 of the said notice which allow>

(a) the establishment of such obligations and requirements

to be respected by the farmer<

(b) the definition of the structure to be set up for the

management of such Cross-Compliance requirements<

(c) the acquisition, by the Paying Agency, of sufficient

quantitative and qualitative information obtained during the

execution of the on-the-spot checks in order to apply the necessary

reductions and, or exclusions from direct payments to which the

farmer is entitled, where applicable.

(1) For the purposes of these regulations, the following

definitions shall apply>

“the Act” means each of the individual Directives and

Regulations listed in Annex III to Regulation (EC) No 1782#2003

and subsequent amendments<

“competent control authority” means the specialised control

body responsible for carrying out the controls related to the

requirements and standards in question, as described in Article

42(1) of Reg. (EC) No 796#2004, found within the IACS

Department, within the Ministry responsible for agriculture

“Co-ordinating Body” means the IACS Department, which

is the authority responsible for co-ordinating the checks provided

for in Chapter 4 Reg. (EC) 1782#2003<

“cross-compliance” means the adherence by the farmer to all

requisites established under these regulations<

“delegated responsible authority” means the entity that may

be delegated to carry out on-the-spot checks in respect of relevant

SMRs by the competent control authority<

“GAEC” means Good Agriculture and Environmental

Condition on the basis of the framework set up in Annex IV to

Reg. (EC) 1782#2003, and their related requirements as published

from time to time by the Minister in the Gazette<

“Integrated Administration and Control System”, or “IACS”,

means the system described in Annex 2 of Paying Agency

Regulations, 2004<

“SMR” means the Statutory Management Requirements listed

in Annex III to Reg.(EC)) 1782#2003, and their related requirements

as published from time to time by the Minister in the Gazette<

“standard” means the standards relating to Annex III to Reg.

(EC) No 1782#2003, and subsequent amendments.

(2) Any other definitions found in the Paying Agency

Regulations, 2004 and in the Annexes thereto shall also apply in these

regulations.

(1) The aim of satisfactory compliance with the SMRs, Compliance with

obligations.

GAECs or the provisions of the Code of Good Agricultural Practice

and the Action Program, is to enable farmers to benefit from direct

payments, subject to other conditions specified by the competent control

authority and, or the Paying Agency responsible for direct payments.

(2) Compliance with the SMRs does not imply that farmers

may disregard or not comply with requirements of any other national or

European legislation on the protection of the environment, animal

welfare and public, animal and plant health. However, non-compliance

with requirements of any other national or European legislation will

not lead to the withdrawal of direct payments.

(3) Farmers who do apply for direct payments are also,

nevertheless, required to adhere to these requisites. Non-compliance

shall be taken into account in the evaluation of any future applications

made by such farmers.

(4) The Minister responsible for agriculture may, from time

to time, publish guidelines related to these regulations, as and when

required.

With respect to the transfer of holdings as provided for in

regulation 18 of Annex II to the Paying Agency Regulations, 2004,

where a beneficiary transfers all or part of a holding to another person,

all obligations required for the granting of direct payments shall be

transferred to the transferee.

(1) Where the SMRs or GAECs are not complied with, as a

result of an act or omission directly attributable to the individual farmer,

this shall be considered as a “non-compliance”.

(2) Cases of non-compliance, in terms of extent, severity,

permanence and repetition of the non-compliance, shall lead to a

reduction in payment of the aid as laid down in sub-regulation (3), except

in cases of force majeure, according to the procedures adopted by the

competent control authority.

(3) In accordance with the detailed rules laid down under

Article 7 of Reg. (EC) No 1782#2003, reductions shall be imposed as

follows>

(i) in case of negligence the percentage of reductions shall

not exceed five percent, and in the case of repeated non-compliance

fifteen percent<

(ii) in the case of intentional non-compliance, the percentage

of reductions shall not, in principle, be less than twenty percent,

and may go as far as total exclusion from one or several aid

schemes, and may apply for one or more calendar years<

(iii) in any case the total amount of reductions and, or

exclusions for one calendar year shall not exceed the total amount

of aid applied for under all the schemes managed by the Paying

Agency during the said calendar year.

The reductions or exclusions referred to in regulation 5 of Applicability

reductions or

these regulations shall only apply if the non-compliance relates to>

exclusions.

(a)

an agricultural activity, or

(b) one or more parcels of any holding, including the parcels

set aside.

Where cases of non-compliance are determined by the Paying Agency

responsible for

competent control authority, the Paying Agency in Malta shall be applying reductions.

responsible for applying a reduction and, or exclusion from the overall

amount of direct payments entitled to the farmer, as set out in Articles

66 and 67 of Regulation (EC) 796#2004.

(1) In accordance with article 23 of Reg. (EC) 1782#2003, Co-ordinating

Body.

the IACS department in Malta shall be the Co-ordinating Body for Cross-

Compliance.

(2) The role of the Co-ordinating Body shall be to set up

the policy and structure of the Cross-Compliance regime, as well as to

co-ordinate the checks carried out by the competent control authority

and to recommend sanctions and penalties to be considered by the Paying

Agency in cases of non-compliance.

(3) The director IACS shall, as head of the Co-ordinating

Body, appoint a Task Force to advise him on technical issues.

(1) There shall be a competent control authority within the Competent control

authority.

IACS Department.

(2) The role of the competent control authority shall be to

ensure compliance with all SMRs and GAECs, in accordance with the

provisions of Article 44 (1) paragraph 1, of Reg. (EC) 796#2004.

(3) The competent control authority may delegate part or

all of its tasks to responsible authorities except for carrying out the

sample selection for the controls, in accordance with the provisions of

Articles 44 and 45 of Reg. (EC) 796#2004, which should in no case be

delegated to other authorities.

(4) The competent control authority shall transmit the results

of all on-the-spot checks carried out to the Co-ordinating Body.

(1) Where the competent control authority delegates its

duties to the responsible authorities, such responsible authorities shall

undertake all obligations delegated to them.

(2) The delegated responsible authority shall transmit the

results of all on-the-spot checks which have been carried out to the

competent control authority.

(3) The delegated responsible authority shall also oblige

itself to forward reports on any controls carried out spontaneously related

to Annex III and IV of Reg. (EC) 1782#2004, by such authority to the

competent control authority.

(1) With reference to regulation 8 (3) of these regulations,

the Task Force shall be composed of a Chairperson and two

representatives of the Co-ordinating Body, appointed by the director of

the IACS department, and a representative of the competent control

authority and a representative from each of its delegated responsible

authorities.

(2) The role of the task force is to recommend the criteria

for establishing the sample selection of the controls, the reporting system,

the penalty calculation mechanism and other technical issues.

On-the-spot checks shall be carried out in accordance with

Articles 47 and 48 of Reg. (EC) No 796#2004.

The reduction to payments, wherever applicable, shall be

based on the criteria foreseen by Article 41 of Regulation (EC) 796#2004.

Mitbug[ fl-Istamperija tal-Gvern — Printed at the Government Printing Press