20.11.2004 Official Journal of the European Union L 345/85 COMMISSION REGULATION (EC) No 1974/2004 of 29 October 2004 amending Regulation (EC) No 795/2004 laying down detailed rules for the implementation of the single payment scheme provided for in Council Regulation (EC) No 17822003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Council Regulation (EC) No 1782/2003 of 29 September 2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers and amending Regulations (EEC) No 2019/93, (EC) No 1452/2001, (EC) No 14532001, (EC) No 1454/2001, (EC) N 1868/94, (EC) No 1251/1999, (EC) No 12541999, (EC) No 1673/2000, (EEC) No 2358/71 and (EC) No 2529/2001 (*), and in particu- lar Articles 42(4) and (9), 145(c) and (d) and 155 thereof, Whereas: (1)  Commission Regulation (EC) No 795/2004 of 21 April 2004, laying down detailed rules for the implementation of the single payment scheme provided for in Council Regulation (EC) No 1782/2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers (?), introduces the implementing rules for the single payment scheme that will apply starting from 2005. The administrative and operational implementation of the scheme, which has started at national level on the basis of that Regulation, has shown the need for further detailed rules on some aspects of the scheme and to clarify certain aspects of the existing rules. (2)  Further to the publication of Regulation (EC) No 795/ 2004, it appears that some references to Commission Regulation (EC) No 796/2004 have been wrongly published (). It is therefore appropriate to correct them. (3)  The purpose of Article 46(2), second subparagraph, of Regulation (EC) No 1782/2003 is to allow the transfer of payment entitlement without land under specific conditions. Article 46(2), first subparagraph, of Regu- () OJ L 270, 21.10.2003, p. 1. Regulation as amended by Regulation (EC) No 864/2004 (O] L 161, 30.4.2004, p. 48). () OJ L 141, 30.4.2004, p. 1. () O] L 141, 30.4.2004, p. 18. lation (EC) No 1782/2003 clearly provides that only sale of payment entitlements is possible without land. In order to avoid that the second subparagraph may be misunderstood and result in making without object the provision of the first subparagraph of that Article, there- fore it is appropriate for the sake of clarification to indi- cate that the transfer mentioned in the second sub- paragraph only refers to the sale of payment entitle- ments without land and not to the lease of payment entitlements which is not possible without land. (4 For administrative reasons, in order to limit the creation of fractions of payment entitlements to the extent that is necessary, it is appropriate to provide for a rule providing that, once all entire entitlements have been used, partially used entitlements should be considered as fully used whilst giving right to a payment proportionate to the land declared and, in case of transfer, before split- ting an existing entitlement, all existing fractions should be used. (5)  Article 2(e) of Regulation (EC) No 1782/2003 provides that the payments in the reference period are those granted or to be granted in that period. Annex VII adds that reductions resulting from the application of base areas, ceilings or other quantitative limitations should be taken into account. It is therefore appropriate, for the sake of clarification, to specify that the reductions and exclusions applied under Commission Regulation (EC) No 2419/2001 (*) should not be taken into considera- tion for all the direct payments referred to in Annex VI of Regulation (EC) No 1782/2003 in order not to perpe- tuate the reductions and exclusions applied in that period. Therefore the number of animals and hectares determined at the time of the establishment of the payment entitlements should be taken into consideration without prejudice to further controls and the application of Article 3(1) of Council Regulation (EC, Euratom) No 2988/95 (). () OJ L 337, 20.12.2001, p. 9. Regulation as last modified by Regu- lation (EC) No 118/2004 (OF L 17, 24.1.2004, p. 7). () OJL 312, 23.12.1995, p. 1.