Article 35 Non-compliance with the eligibility criteria other than the size of area or number of animals, commitments or other obligations

The support claimed F1shallmay be refused or withdrawn in full where the eligibility criteria are not complied with.

The support claimed F2shallmay be refused or be withdrawn in full or in part where the following commitments or other obligations are not complied with:

1. (a)

   commitments established in the rural development programme; or

2. (b)

   where relevant, other obligations of the operation established by F3the law applying in the constituent nation or established in the rural development programme, in particular public procurement, F4State aid and other obligatory standards and requirements.

When deciding on the rate of refusal or withdrawal of support following the non-compliance with the commitments or other obligations referred to in paragraph 2, the F6relevant authorityF7shallmay take account of the severity, F8extent, duration and reoccurrenceextent and duration of the non-compliance related to conditions for support referred to in paragraph 2.

The severity of the non-compliance shall depend, in particular, on the importance of the consequences of the non-compliance, taking into account the objectives of the commitments or obligations that were not met.

The extent of the non-compliance shall depend, in particular, on its effect on the operation as a whole.

The duration shall depend, in particular, on the length of time for which the effect lasts or the possibility of terminating this effect by reasonable means.

F9The reoccurrence shall depend on whether similar non-compliances have been found earlier during the last four years or during the whole programming period 2014-2020 in case of the same beneficiary and the same measure or type of operation or in the case of the programming period 2007-2013, the similar measure.

When deciding on the rate of refusal or withdrawal of support following the non-compliance with the commitments or other obligations referred to in paragraph 2, the relevant authority may take account of:—

• the circumstances that led to the non-compliance and whether it was caused by the intentional actions of the beneficiary or due to that person’s recklessness or negligence;

• any steps taken by the beneficiary to report a change of circumstance or notify the Authority of the non-compliance within a reasonable period;

• any failure on the part of the beneficiary to co-operate with an on-the-spot check;

• any past conduct of the beneficiary during the period of the commitment and whether a similar non-compliance has previously occurred;

• the nature of the non-compliance and whether it has caused widespread or irreparable damage;

• the extent to which it is desirable, practicable or economic to permit the beneficiary to rectify the non-compliance;

• the consequences of the non-compliance and whether it renders the purpose of the commitment unachievable within the timescales or finances of the commitment or to the standards agreed when the commitment was undertaken.

In case of multiannual commitments or payments, withdrawals based on the criteria referred to in paragraph 3 F10shallmay also apply to the amounts already paid in the previous years for the same operation.

In case the overall assessment based on the criteria referred to in paragraph 3 leads to establishing a serious non-compliance, the support F11shallmay be refused or withdrawn in full. F12Furthermore, the beneficiary shallmay be excluded from F13the same measure or type of operationany financial assistance scheme(s) under section 1 of the Agriculture Act 2020 for the calendar year of the finding and for the following calendar year.

Where it is established that the beneficiary provided false evidence for the purpose of receiving the support or failed to provide the necessary information due to negligence, the support F14shallmay be refused or withdrawn in full. Furthermore, the beneficiary shallmay be excluded from F15the same measure or type of operationany financial assistance scheme(s) under section 1 of the Agriculture Act 2020 for the calendar year of finding and for the following calendar year.

If the withdrawals and administrative penalties referred to in paragraphs 1, 2, 4, 5 and 6 cannot be fully off-set in the course of the three calendar years following the calendar year of the finding, in accordance with Article 28 of Implementing Regulation (EU) No 908/2014, the outstanding balance shall be cancelled.