3.—(1) These Regulations shall apply to applicants, and in relation to the holdings of such applicants, to the specified extent.

(2) For the purposes of paragraph (1) above, “the specified extent”, in relation to an applicant, is the extent to which the Scottish Ministers are the relevant competent authority (within the meaning of the IACS Regulations) in relation to the holding of that applicant for the purposes of the IACS Regulations.