Article 1

Regulation (EC) No 1082/2003 is amended as follows:

1. (1)

   in Article 2, paragraphs 1 and 2 are replaced by the following:

   ‘1.

   The competent authority shall carry out checks each year which shall cover at least 3 % of holdings.

   2.

   Where the checks provided for in paragraph 1 reveal a significant degree of non-compliance with Regulation (EC) No 1760/2000, the minimum rate of checks shall be increased in the following annual inspection period.’;

2. (2)

   Article 3 is replaced by the following:

   ‘Article 3

   The competent authority shall check the identification of all animals on the holding.

   However, where the number of animals on the holding exceeds 20, the competent authority may decide to check the means of identification of a representative sample of those animals in accordance with internationally recognised standards provided that the number of animals checked is sufficient to detect 5 % of cases of non-compliance with Regulation (EC) No 1760/2000 by the keepers of such animals at a 95 % confidence level.’;

3. (3)

   in Article 5(1), point (b) is replaced by the following:

   1. (b)

      ‘the number of holdings that have been checked;’;

4. (4)

   Annex I is amended in accordance with the Annex to this Regulation.