The Common Agricultural Policy (Control and Enforcement, Cross-Compliance, Scrutiny of Transactions and Appeals) Regulations 2014

Made: 9th December 2014

Laid before Parliament: 11th December 2014

Coming into force: 1st January 2015

The Secretary of State is a Minister designated for the purposes of section 2(2) of the European Communities Act 1972 in relation to the common agricultural policy .

These Regulations make provision for a purpose mentioned in that section and it appears to the Secretary of State that it is expedient for the references in these Regulations to the SCMO Regulations (as defined in regulation 2(1)) to be construed as references to those Regulations as amended from time to time.

The Secretary of State makes these Regulations under the powers conferred by section 2(2) of, and paragraph 1A of Schedule 2 to, the European Communities Act 1972 and, with the consent of the Treasury, section 56(1) of the Finance Act 1973 .

PART 1 — INTRODUCTION

Citation, commencement, application and extent

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• (1) These Regulations may be cited as the Common Agricultural Policy (Control and Enforcement, Cross-Compliance, Scrutiny of Transactions and Appeals) Regulations 2014 and come into force on 1st January 2015.

• (2) Subject to paragraphs (2A), (3) and (4), these Regulations apply in England only.

• (2A) These Regulations do not apply to direct payments in England in respect of any year falling after the end of 2023.

• (3) A revocation of a statutory instrument by regulation 35 and Schedule 5 has the same application and extent as the statutory instrument being revoked.

• (4) The following provisions extend to the United Kingdom—

• (a) regulations 3, 4, 9(1) and 34;

• (b) regulations 20 to 29 and, so far as relevant to regulation 21, regulation 33;

• (c) paragraphs (2) and (7) and, so far as relevant to paragraph (2), paragraph (10) of regulation 35; and

• (d) regulation 2 so far as relevant to any of the regulations mentioned in sub-paragraphs (a) and (b).

Interpretation

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• (1) In these Regulations—

• “the Common Provisions Regulation” means Regulation (EU) No. 1303/2013 of the European Parliament and of the Council laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund etc as amended by the European Structural and Investment Funds Common Provisions (Amendment) (EU Exit) Regulations 2019;

• “the Direct Payments Delegated Regulation” means Commission Delegated Regulation (EU) No. 639/2014 supplementing the Direct Payments Regulation as that Regulation applied in relation to England immediately before the end of 2023;

• “the Direct Payments Implementing Regulation” means Commission Implementing Regulation (EU) No. 641/2014 laying down rules for the application of the Direct Payments Regulation as that Regulation applied in relation to England immediately before the end of 2023;

• “the Direct Payments Regulation” means Regulation (EU) No. 1307/2013 of the European Parliament and of the Council establishing rules for direct payments to farmers under support schemes within the framework of the common agricultural policy as that Regulation applied in relation to England immediately before the end of 2023;

• “the European Regulations” means—the Common Provisions Regulation;the Direct Payments Delegated Regulation;the Direct Payments Implementing Regulation;the Direct Payments Regulation;the Horizontal Delegated Regulation;the Horizontal Finance Implementing Regulation;the Horizontal Implementing Regulation;the Horizontal Regulation;the Rural Development Delegated Regulation;the Rural Development Implementing Regulation;the Rural Development Regulation; andthe SCMO Regulations.

• “the Horizontal Delegated Regulation” means Commission Delegated Regulation (EU) No. 640/2014 supplementing Regulation (EU) No. 1306/2013 of the European Parliament and of the Council with regard to the integrated administration and control system and conditions for refusal or withdrawal of payments and administrative penalties applicable to direct payments, rural development support and cross compliance ;

• “the Horizontal Finance Implementing Regulation” means Commission Implementing Regulation (EU) No. 908/2014 laying down rules for the application of Regulation (EU) No. 1306/2013 of the European Parliament and of the Council with regard to paying agencies and other bodies, financial management, clearance of accounts, rules on checks, securities and transparency ;

• “the Horizontal Implementing Regulation” means Commission Implementing Regulation (EU) No. 809/2014 laying down rules for the application of Regulation (EU) No. 1306/2013 of the European Parliament and of the Council with regard to the integrated administration and control system, rural development measures and cross compliance ;

• “the Horizontal Regulation” means Regulation (EU) No. 1306/2013 of the European Parliament and of the Council on the financing, management and monitoring of the common agricultural policy ;

• “Regulation 1698/2005” means Council Regulation (EC) No. 1698/2005 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) etc ;

• “the Rural Development Delegated Regulation” means Commission Delegated Regulation (EU) No. 807/2014 supplementing the Rural Development Regulation ;

• “the Rural Development Implementing Regulation” means Commission Implementing Regulation (EU) No. 808/2014 laying down rules for the application of the Rural Development Regulation ;

• “the Rural Development Regulation” means Regulation (EU) No. 1305/2013 of the European Parliament and of the Council on support for rural development by the European Agricultural Fund for Rural Development ;

• “the SCMO Regulations” means the Regulations listed in Schedule 1, as amended from time to time;

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• “authorised person”, except in Part 4, means any person who is authorised by the Secretary of State, the Forestry Commissioners or Natural England, either generally or specifically, whether or not an officer or employee of that authority, to act in relation to matters arising under these Regulations;

• “beneficiary”, except in Schedule 2, has the meaning given by sub-paragraph (1) of Article 2(1) of the Horizontal Delegated Regulation;

• “CMO support” means financial support granted under— Regulation (EU) No 1308/2013 of the European Parliament and of the Council establishing a common organisation of the markets in agricultural products (“Regulation 1308/2013”);any regulations made under, or delegated or implementing acts adopted on the basis of, Regulation 1308/2013;any delegated or implementing acts adopted on the basis of Council Regulation (EC) No1234/2007 establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products;Regulation (EU) No 1144/2014 of the European Parliament and of the Council on information provision and promotion measures concerning agricultural products implemented in the internal market and in third countries (“Regulation 1144/2014”);any regulations made under, or delegated or implementing acts adopted on the basis of, Regulation 1144/2014;

• “commitment”, except in regulation 35(3) and (4), means an undertaking to the Secretary of State or other delivery body to comply with any requirement which is a condition of receiving a rural development payment;

• “competent authority”... means—in England, the Secretary of State;in Northern Ireland, the Department of Agriculture and Rural Development;in Scotland, the Scottish Ministers;in Wales, the Welsh Ministers;

• “delivery body” means—the Forestry Commissioners;Natural England;the Secretary of State; orany local action group and, where relevant, its accountable body;

• “direct payments” means payments granted under the Direct Payments Regulation;

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• “farmer” has the meaning given by Article 4(1)(a) of the Direct Payments Regulation;

• “local action group” means a group which has been selected to implement a local development strategy in accordance with Article 34 of the Common Provisions Regulation;

• “non-compliance” has the meaning given by Article 2(2)(b) of the Horizontal Delegated Regulation;

• “officer”, in relation to a body corporate, means a director, manager, secretary or other similar officer of the body or any person purporting to act in such capacity;

• “officer” or “member”, in relation to an unincorporated association, includes any person purporting to act in such capacity;

• “partner” includes any person purporting to act in such capacity;

• “partnership” does not include a limited liability partnership;

• “rural development applicant” means any person who makes a rural development application;

• “rural development application” means an application to the Secretary of State or other delivery body to enter into a commitment;

• “rural development beneficiary” means a person who has entered into a commitment;

• “rural development payment” means any payment made by the Secretary of State under Title III of the Rural Development Regulation or Title III, Chapter II of the Common Provisions Regulation except in regulations 9(2A)(b) and 35(4) (where it has the meaning given in those regulations);

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• “unincorporated association” does not include a partnership.

• (1A) In paragraph (1) “accountable body” means a body responsible for carrying out administrative and financial activities on behalf of a local action group in accordance with Article 34(2) of the Common Provisions Regulation.

• (1B) In these Regulations, references to the Horizontal Delegated Regulation, the Horizontal Implementing Regulation and the Horizontal Regulation are, to the extent that they relate to the direct payments for claim year 2020, references to those Regulations incorporated into domestic law and amended under the Direct Payments to Farmers (Legislative Continuity) Act 2020.

• (2) Other terms used in these Regulations that are also used in any of the European Regulations have the meaning they bear in those Regulations.

PART 2 — CONTROL AND ENFORCEMENT

Competent authority

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Agency arrangements

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• (1) A competent authority may make an arrangement with another competent authority for any of its relevant functions to be exercised by that other competent authority as its agent.

• (2) Such an arrangement must be in writing and signed by or on behalf of the competent authorities concerned and may be subject to conditions.

• (3) In this regulation, “relevant functions” means any functions of the competent authority in relation to the ... support under Title III of the Rural Development Regulation.

Applications

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• (1) For the purposes of Article 13(1) of the Horizontal Implementing Regulation, Article 1 of Commission Implementing Regulation 2020/501 (insofar as it applies in relation to rural development aid applications and payment claims) and Article 12 of the Horizontal Delegated Regulation, the final date on which an aid application or payment claim may be submitted to the Secretary of State is—

• (a) if the relevant claim year is 2020, 15th June;

• (b) in all other cases, 15th May but if that date is a Saturday, Sunday, Bank Holiday or other public holiday, the next working day.

• (2) In paragraph (1)—

• “Bank Holiday” means a day specified in paragraph 1 of Schedule 1 to the Banking and Financial Dealings Act 1971 ;

• “payment claim” means a claim for support under the integrated system as provided by Article 67(2) of the Horizontal Regulation;

• “working day” means a day which is not a Saturday, Sunday, Bank Holiday or other public holiday;

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• “Commission Implementing Regulation 2020/501” means Commission Implementing Regulation (EU) 2020/501 of 6 April 2020 derogating from Implementing Regulation (EU) No 809/2014 as regards the final date of submission of the single application, aid applications or payment claims, the final date for notification of amendments to the single application or payment claim and the final date for applications for allocation of payment entitlements or the increase of the value of payment entitlements under the basic payment scheme for the year 2020.

Minimum size of agricultural area

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Recovery of undue payments

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• (1) Where a beneficiary is liable to repay all or part of a direct payment or rural development payment in accordance with Article 7(1) of the Horizontal Implementing Regulation, the amount of the repayment, together with the interest on that amount calculated in accordance with regulation 8, is recoverable as a debt.

• (2) In any legal proceedings brought pursuant to paragraph (1), a certificate of the Secretary of State which—

• (a) sets out the Bank of England base rate applicable during a specified period; and

• (b) includes a statement that the Bank of England or the coordinating body notified the Secretary of State of that rate for that period,

is evidence of the rate applicable during that period.

• (3) In this regulation, “the coordinating body” means the coordinating body referred to in Article 7(4) of the Horizontal Regulation.

Interest

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• (1) Interest may be charged in respect of each day of the period referred to in Article 7(2) of the Horizontal Implementing Regulation and for this purpose the rate of interest applicable on any day is one percentage point above the Bank of England base rate.

• (2) In this regulation, “Bank of England base rate” means—

• (a) except where sub-paragraph (b) applies, the rate announced from time to time by the Monetary Policy Committee of the Bank of England as the official dealing rate, being the rate at which the Bank is willing to enter into transactions for providing short-term liquidity in the money markets; or

• (b) if an order under section 19 (reserve powers) of the Bank of England Act 1998 is in force, any equivalent rate determined by the Treasury under that section.

Set-off

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• (1) The Secretary of State acting as principal or agent for another competent authority may set off any debt and interest due from a farmer in accordance with Article 7(1) of the Horizontal Implementing Regulation to that other competent authority against any direct payment due to that farmer.

• (2) The amount of any payment listed in paragraph (2A) may be set off against the amount of any recoverable sum listed in paragraph (2B).

• (2A) The payments referred to in paragraph (2) are—

• (a) any rural development payment payable by the Secretary of State;

• (b) any rural development payment payable by the Secretary of State or an accountable body under the Rural Development (Enforcement) (England) Regulations 2007;

• (c) any sum payable to a beneficiary under the England Rural Development Programme (Enforcement) Regulations 2000;

• (d) any sum payable by the Secretary of State under—

• (i) the Direct Payments Regulation;

• (ii) 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; or

• (iii) Council Regulation (EC) No. 73/2009 establishing common rules for direct support schemes for farmers under the common agricultural policy and establishing certain support schemes for farmers.

• (2B) The recoverable sums referred to in paragraph (2) are—

• (a) any sum recoverable by the Secretary of State or a delivery body (which may include the Secretary of State) under regulation 7(1) or 15(1);

• (b) any sum recoverable by the Secretary of State or an accountable body under regulation 9(1) or 10(1) of the Rural Development (Enforcement) (England) Regulations 2007;

• (c) any sum recoverable by the Minister under regulation 6(1) or 7(1) of the England Rural Development Programme (Enforcement) Regulations 2000;

• (d) any sum recoverable by a competent authority under regulation 8 of the Common Agricultural Policy Single Payment and Support Schemes (Integrated Administration and Control System) Regulations 2009.

• (3) In this regulation—

• (a) “accountable body” has the meaning given by regulation 2(1) of the Rural Development (Enforcement) (England) Regulations 2007;

• (b) “beneficiary” has the meaning given by regulation 2(1) of the England Rural Development Programme (Enforcement) Regulations 2000;

• (c) “competent authority” has the same meaning as in the Common Agricultural Policy Single Payment and Support Schemes (Integrated Administration and Control System) Regulations 2009;

• (d) “Minister” has the meaning given by regulation 2(1) of the England Rural Development Programme (Enforcement) Regulations 2000;

• (e) “rural development payment”, except in paragraph (2A)(a), has the meaning given by regulation 2(1) of the Rural Development (Enforcement) (England) Regulations 2007, except in paragraph (2A)(a)(where it has the meaning given by regulation 2(1)).

Powers of entry

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• (1) Subject to paragraph (2), an authorised person may exercise any of the powers specified in this regulation for the purpose of enforcing these regulations or the European Regulations except for a purpose mentioned in regulation 21(1).

• (2) The Forestry Commissioners may not authorise any person to exercise any of the powers specified in this regulation for the purpose of enforcing the Direct Payments Regulation, the Direct Payments Delegated Regulation or the Direct Payments Implementing Regulation.