12.10.2006 Official Journal of the European Union L 280/3 COMMISSION REGULATION (EC) No 1505/2006 of 11 October 2006 implementing Council Regulation (EC) No 21/2004 as regards the minimum level of checks to be carried out in relation to the identification and registration of ovine and caprine animals (Text with EEA relevance) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Council Regulation (EC) No 21/2004 of 17 December 2003 establishing a system for the identification and registration of ovine and caprine animals and amending Regu- lation (EC) No 1782/2003 and Directives 92/102/EEC and 64/432[EEC (), and in particular point (a) of Article 10(1) thereof, Whereas: (1) Regulation (EC) No 21/2004 provides that each Member State is to establish a system for the identification and registration of ovine and caprine animals in accordance with that Regulation. Accordingly it is appropriate to define the minimum level of checks to be carried out by Member States in order to verify the proper imple- mentation of the requirements for the identification and registration of those animals, as provided for in that Regulation (the checks). (2)  The competent authority of each Member State should carry out checks based on a risk analysis. The risk analysis should take into account all relevant factors, including in particular, animal health considerations. (3)  The percentage of holdings and animals to be checked in the Member States should be laid down. Before 31 December 2009 those rates will be reviewed in the light of the results of the reports on the checks carried out and submitted by the Member States. (4)  As a general rule, all animals on a holding should be covered by the checks. However, for holdings with more () OJ L 5, 9.1.2004, p. 8. than 20 animals the competent authority should be permitted to restrict the checks to an appropriate repre- sentative sample of the animals. (5)  Member States should submit an annual report to the Commission providing information on the implemen- tation of the checks. It is appropriate to set out a model report in this Regulation. (6)  The measures provided for in this Regulation are in accordance with the opinion of the Standing Committee on the Food Chain and Animal Health, HAS ADOPTED THIS REGULATION: Article 1 Checks concerning compliance by keepers with Regulation (EC) No 21/2004 Member States shall carry out on-the-spot checks (checks) to verify compliance by keepers with the requirements for the identification and registration of animals as provided for in Regulation (EC) No 21/2004. The checks shall at least comply with the minimum levels set out in Articles 2 to 5 of this Regulation. Atticle 2 Number of holdings to be checked The competent authority shall carry out the checks each year which shall cover at least 3 % of holdings comprising at least 5% of the animals in the Member State. However, where those checks reveal a significant degree of non- compliance with Regulation (EC) No 21/2004, those rates shall be increased in the following annual inspection period.