Background Pillar 1 Cross-compliance rules, inspections and penalties
37.Cross-compliance is described in paragraph 18 above.
38.Cross-compliance rules are as set out in Articles 91 to 95 of, and Annex II to, the Horizontal Regulation and comprise the:
	statutory management requirements, and
	good agricultural and environment conditions.
39.There are also national implementing rules in the Common Agricultural Policy (Cross-Compliance) (Scotland) Regulations 2014 (S.S.I. 2014/325).
40.The Scottish Government’s Rural Payments and Inspections Division (SGRPID) carries out inspections in Scotland to verify that all cross-compliance requirements are being met. Failure to meet these requirements will lead to financial penalties being applied to the payments.
41.Under existing CAP rules, there is no ability to waive penalties unless there is an event outside the farmer’s control. This is known as force majeure or exceptional circumstances, and penalties can be waived if appropriate. For example, inspections were suspended during the 2007 Foot and Mouth Disease outbreak but penalties were still applied where breaches were discovered.
42.A false declaration, whether made deliberately or recklessly, may lead to criminal prosecution.