24.1.2004 Official Journal of the European Union L17[7 COMMISSION REGULATION (EC) No 118/2004 of 23 January 2004 amending Regulation (EC) No 2419/2001 laying down detailed rules for applying the integrated administration and control system for certain Community aid schemes established by Council Regulation (EEC) No 3508/92 THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Council Regulation (EEC) No 3508/92 of 27 November 1992 establishing an integrated administration and control system for certain Community aid schemes ('), and in particular Article 12 thereof, Whereas: 1 In the light of experience gained with the application of the rules concerning administrative checks as contained in Commission Regulation (EC) No 2419/2001 (3), some clarifications should be introduced with regard to the kind of checks to be carried out and with regard to the measures to be taken in case of doubts after cross- checks. Certain clarifications and additional elements should be introduced with regard to risk-sampling. The existing rules of Regulation (EC) No 2419/2001 concerning remote sensing should be enhanced to ensure a proper use of remote sensing in the perfor- mance of the controls by Member States. In the light of experience, the existing provisions concerning the timing and content of certain on-the-spot checks in respect of the bovine premium should be modified to ensure a balanced and uniform approach. The existing provisions relating to ewes and goats should be developed in the light of practical reality in so far as animals sometimes need to be replaced during the reten- tion period, and to avoid undue penalisation in some cases of certain farmers maintaining both ewes and goats. The delays for the replacements, the entry of the replacement into the register and the information of the replacement to the competent authority should be fixed in the light of the length of the retention period and of the necessity for effective controls. In order to protect the Community's financial interests, title IV of Regulation (EC) No 2419/2001 lays down provisions for the reduction of and exclusion from Com- munity aid in the event of irregularities. Some of these (") OJ L 355, 5.12.1992, p. 1. Regulation as last amended by Commis- sion Regulation (EC) No 495/2001 (O] L 72, 14.3.2001, p. 6). () OJ L 327,12.12.2001, p. 11. Regulation as amended by Regulation (EC) No 2550/2001 (O] L 341, 23.12.2001, p. 105). provisions should be amended so as to ensure that the reductions and exclusions are at all times strictly graded according to the gravity of the irregularity. (7)  Regulation (EC) No 2419/2001 introduced prescription rules in respect of the recovery of undue payments. These rules should, under certain conditions, also be made applicable to aid applications relating to marketing years andfor premium periods which started before 1 January 2002. (8)  Regulation (EC) No 2419/2001 should be amended accordingly. (9)  The measures provided for in this Regulation are in accordance with the opinion of the Fund Committee, HAS ADOPTED THIS REGULATION: Atrticle 1 Regulation (EC) No 2419/2001 is amended as follows: 1. Article 16 is replaced by the following: ‘Article 16 Cross checks 1. The administrative checks referred to in Article 8(1) of Regulation (EEC) No 3508/92 shall permit the auto- mated detection of irregularities using computerised means, including in particular: (a) cross-checks on declared agricultural parcels and animals in order to avoid undue multiple granting of the same aid in respect of the same calendar or marketing year and to prevent any undue cumulation of aid granted under Community aid schemes invol- ving declarations of areas as referred to in Article 9a of Regulation (EEC) No 3508/92; (b) cross-checks by means of the computerised database or, in the case of area aid applications, by any other computerised means, to verify eligibility for the aid. 2. Indications of irregularities resulting from cross- checks shall be followed-up by any other appropriate administrative procedure and, where necessary, by an on- the-spot check.’