Article 4 1.

In each Member State, local administrative units (LAU) shall subdivide NUTS level 3 into one or two further levels of territorial units. At least one of the LAU levels shall be an administrative unit as defined in Article 3(1) and as set out in Annex III. The Commission shall be empowered to adopt delegated acts in accordance with Article 7a to amend the list of LAU in Annex III on the basis of the changes in the administrative units that have been communicated to it by the Member State concerned in accordance with Article 5(1).