Under EU regulations governing the special beef premium scheme, applicants are required to ensure that all animals on a farm are properly tagged and properly recorded on the CMMS database to ensure compliance with traceability requirements. When the case in question was selected for inspection, it was found that the animals presented had brass tags. The person named, who was advised of regulatory penalties on 31 December 2003, has not appealed the decision as is his right if he wishes. Any appeal request should clearly set out the circumstances involved and be supported by appropriate documentation. When a penalty of any kind is applied to a payment due to a herd owner under the special beef premium and/or suckler cow premium schemes, a penalty in the same proportion must also be applied to any payment due under the extensification premium, in accordance with EU rules.