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EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations are made in exercise of the powers conferred by sections 48 and 50(3)(a) of, and paragraph 5 of Schedule 6 to, the Agriculture Act 2020 (c.21) in order to make provisions in retained EU law governing the direct payment schemes.

Regulation 2 amends Commission Delegated Regulation (EU) No. 640/2014 to remove the automatic application of intentional penalties to negligent non-compliances.

Regulation 3 makes transitional provision throughout the period of the 2022 scheme year for the application of the new Article 39 negligent non-compliance provisions and in this period reoccurrence within the meaning of reoccurrence in Article 38(1) of Regulation (EU) No. 640/2014.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen.