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Commission Implementing Regulation (EU) No 908/2014 of 6 August 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
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[F11.The relevant authorities may decide to reduce the minimum level of on-the-spot checks in accordance with Article 59(5) of Regulation (EU) No 1306/2013. For the reduced control rate to apply:
(i)the relevant constituent nation shall conduct an applicable audit that is appropriate in order to deliver an opinion (on the completeness, accuracy and veracity of the annual accounts);
(ii)the opinion must validate both that the internal control system is functioning properly and that the error rate for the population concerned was below the materiality threshold of 2.0%;
(iii)the opinion must cover at least the two consecutive financial years preceding the year in which the reduced rate is intended to apply.]
[F21.The relevant authorities may decide to reduce the minimum level of on-the-spot checks in accordance with Article 59 (5) of Regulation (EU) No 1306/2013 (the relevant authority may use the certification audit results from 2017 to apply the reduced control rate until the scheme year 2019). Thereafter, for the reduced control rate to apply, the relevant constituent nation shall:
(i)conduct an applicable audit that is appropriate in order to deliver an opinion (on the completeness, accuracy and veracity of the annual accounts);
(ii)the opinion must validate both that the internal control system is functioning properly and that the error rate for the population concerned was below the materiality threshold of 2.0%;
(iii)the opinion must cover at least the two consecutive financial years preceding the year in which the reduced rate is intended to apply.]
[F32.[F4The relevant authority] may decide to reduce the minimum level of on-the-spot checks in accordance with the levels and, where appropriate, the additional conditions laid down in sector-specific legislation.
F5... ]
3.Where any of the cumulative conditions laid down in paragraph 1 [F6or any additional condition provided for in sector-specific legislation] is no longer met, [F7the relevant authority] shall immediately revoke their decision to reduce the minimum level of on-the-spot checks and apply as of the following claim year the minimum level of on-the-spot checks established by the sectoral agricultural legislation.
Extent Information
E1This version of this provision applies to England and Scotland only; separate versions have been created for Wales and Northern Ireland
Textual Amendments
F1Art. 41(1) substituted (31.1.2020 in so far as it relates to the Common Agricultural Policy direct payment schemes) by The Financing, Management and Monitoring of Direct Payments to Farmers (Amendment) Regulations 2020 (S.I. 2020/90), regs. 1(2), 13(13)(a)
F2Art. 41(1) substituted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by The Common Agricultural Policy (Financing, Management and Monitoring Supplementary Provisions) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/765), regs. 1, 4(17)(a); 2020 c. 1, Sch. 5 para. 1(1)
F3Art. 41(2) omitted (31.1.2020 in so far as it relates to the Common Agricultural Policy direct payment schemes) by virtue of The Financing, Management and Monitoring of Direct Payments to Farmers (Amendment) Regulations 2020 (S.I. 2020/90), regs. 1(2), 13(13)(b)
F4Words in Art. 41(2) substituted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by The Common Agricultural Policy (Financing, Management and Monitoring Supplementary Provisions) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/765), regs. 1, 4(17)(b)(i); 2020 c. 1, Sch. 5 para. 1(1)
F5Words in Art. 41(2) omitted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by virtue of The Common Agricultural Policy (Financing, Management and Monitoring Supplementary Provisions) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/765), regs. 1, 4(17)(b)(ii); 2020 c. 1, Sch. 5 para. 1(1)
F6Words in Art. 41(3) omitted (31.1.2020 in so far as it relates to the Common Agricultural Policy direct payment schemes) by virtue of The Financing, Management and Monitoring of Direct Payments to Farmers (Amendment) Regulations 2020 (S.I. 2020/90), regs. 1(2), 13(13)(c)(i)
F7Words in Art. 41(3) substituted (31.1.2020 in so far as it relates to the Common Agricultural Policy direct payment schemes) by The Financing, Management and Monitoring of Direct Payments to Farmers (Amendment) Regulations 2020 (S.I. 2020/90), regs. 1(2), 13(13)(c)(ii); and words in Art. 41(3) substituted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by The Common Agricultural Policy (Financing, Management and Monitoring Supplementary Provisions) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/765), regs. 1, 4(17)(c); 2020 c. 1, Sch. 5 para. 1(1)
[F391.The relevant authorities may decide to reduce the minimum level of on-the-spot checks in accordance with Article 59 (5) of Regulation (EU) No 1306/2013 (the relevant authority may use the certification audit results from 2017 to apply the reduced control rate until the scheme year 2019). Thereafter, for the reduced control rate to apply, the relevant constituent nation shall:
(i)conduct an applicable audit that is appropriate in order to deliver an opinion (on the completeness, accuracy and veracity of the annual accounts);
(ii)the opinion must validate both that the internal control system is functioning properly and that the error rate for the population concerned was below the materiality threshold of 2.0%;
(iii)the opinion must cover at least the two consecutive financial years preceding the year in which the reduced rate is intended to apply.]
[F40 1.The relevant authorities may decide to reduce the minimum level of on-the-spot checks in accordance with Article 59(5) of Regulation (EU) No 1306/2013. For the reduced control rate to apply, the paying agency must confirm that—
(a)the internal control system is functioning correctly; and
(b)the error rate for the population concerned was below the materiality threshold of 2.0%.]
[F412.[F42The relevant authority] may decide to reduce the minimum level of on-the-spot checks in accordance with the levels and, where appropriate, the additional conditions laid down in sector-specific legislation.
F43... ]
3.Where any of the cumulative conditions laid down in paragraph 1 [F44or any additional condition provided for in sector-specific legislation] is no longer met, [F45the relevant authority] shall immediately revoke their decision to reduce the minimum level of on-the-spot checks and apply as of the following claim year the minimum level of on-the-spot checks established by the sectoral agricultural legislation.
Extent Information
E2This version of this provision applies to Wales only; a separate version has been created for England, Scotland and Northern Ireland
Textual Amendments
F39Art. 41(1) substituted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by The Common Agricultural Policy (Financing, Management and Monitoring Supplementary Provisions) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/765), regs. 1, 4(17)(a); 2020 c. 1, Sch. 5 para. 1(1)
F40Art. 41(1) substituted (W. in so far as it relates to direct payments) (31.12.2020) by The Direct Payments to Farmers and Rural Affairs (Miscellaneous Amendments etc.) (Wales) (EU Exit) Regulations 2020 (S.I. 2020/1556), regs. 1(2)(a), 6(6); and substituted (W. in so far as it relates to domestic support for rural development) (26.3.2021) by The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 5(4)
F41Art. 41(2) omitted (31.1.2020 in so far as it relates to the Common Agricultural Policy direct payment schemes) by virtue of The Financing, Management and Monitoring of Direct Payments to Farmers (Amendment) Regulations 2020 (S.I. 2020/90), regs. 1(2), 13(13)(b)
F42Words in Art. 41(2) substituted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by The Common Agricultural Policy (Financing, Management and Monitoring Supplementary Provisions) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/765), regs. 1, 4(17)(b)(i); 2020 c. 1, Sch. 5 para. 1(1)
F43Words in Art. 41(2) omitted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by virtue of The Common Agricultural Policy (Financing, Management and Monitoring Supplementary Provisions) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/765), regs. 1, 4(17)(b)(ii); 2020 c. 1, Sch. 5 para. 1(1)
F44Words in Art. 41(3) omitted (31.1.2020 in so far as it relates to the Common Agricultural Policy direct payment schemes) by virtue of The Financing, Management and Monitoring of Direct Payments to Farmers (Amendment) Regulations 2020 (S.I. 2020/90), regs. 1(2), 13(13)(c)(i)
F45Words in Art. 41(3) substituted (31.1.2020 in so far as it relates to the Common Agricultural Policy direct payment schemes) by The Financing, Management and Monitoring of Direct Payments to Farmers (Amendment) Regulations 2020 (S.I. 2020/90), regs. 1(2), 13(13)(c)(ii); and words in Art. 41(3) substituted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by The Common Agricultural Policy (Financing, Management and Monitoring Supplementary Provisions) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/765), regs. 1, 4(17)(c); 2020 c. 1, Sch. 5 para. 1(1)
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Extent Information
E3This version of this provision applies to Northern Ireland only; separate versions have been created for England, Scotland and Wales
Textual Amendments
F46Art. 41 omitted (N.I.) (25.2.2021) by virtue of The Direct Payments to Farmers (Simplifications) Regulations (Northern Ireland) 2021 (S.R. 2021/42), regs. 1(1), 18
1.The systematic scrutiny of the commercial documents of undertakings referred to in Article 80(1) of Regulation (EU) No 1306/2013 [F9shall][F9may] apply, for each period of scrutiny referred to in paragraph 4 of this Article, to a number of undertakings which may not be less than half the undertakings whose receipts or payments, or the sum thereof, under the system of financing [F10of the direct payment and CMO support], exceeded [F11EUR 150 000][F11£150 000][F12in the United Kingdom financial year] preceding the beginning of the period of scrutiny in question.
2.In relation to each scrutiny period, [F13the relevant authority] [F14shall][F14may][F15, without prejudice to their obligations laid down in Article 80(1) of Regulation (EU) No 1306/2013,] select the undertakings to be scrutinised on the basis of a risk analysis for all measures where it is practicable to do so. [F16A relevant authority] [F14shall][F14may] submit to the [F17Accounting Officer] their proposals for the use of the risk analysis at least six months before the beginning of the scrutiny period. The proposals shall include all relevant information concerning the approach, the techniques and the data used for the analysis, and the criteria and expected method of implementation of the checks to be carried out. F18.... Each [F19relevant authority] [F14shall][F14may] take account of the [F20Accounting Officer's] comments on the risk-analysis proposal, which [F14shall][F14may] be given within eight weeks of receipt.
3.For measures for which a [F21relevant authority] considers the use of a risk analysis not to be practicable, [F22it shall be compulsory][F22the relevant authority may scrutinise] for undertakings the sum of whose receipts or payments or the sum of those two amounts within the system of financing [F23of the direct payment and CMO support] exceeded [F24EUR 350 000][F24£350 000] and which were not scrutinised in accordance with this Regulation and Chapter III of Title V of Regulation (EU) No 1306/2013 during either of the two preceding scrutiny periods [F25, to be scrutinised].
4.The scrutiny period shall run from 1 July to 30 June of the following year. [F26Scrutiny shall cover a period of at least 12 months ending during the previous scrutiny period; it may be extended for periods, to be determined by the [F27relevant authority], preceding or following the 12-month period.]
Textual Amendments
F8Words in Art. 42 heading substituted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by The Common Agricultural Policy (Financing, Management and Monitoring Supplementary Provisions) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/765), regs. 1, 4(18)(a); 2020 c. 1, Sch. 5 para. 1(1)
F9Word in Art. 42(1) substituted (E.) (1.1.2024) by The Agriculture (Removal of Cross-Compliance and Miscellaneous Revocations and Amendments, etc.) (England) Regulations 2023 (S.I. 2023/816), regs. 1(1), 7(2)(a)
F10Words in Art. 42(1) substituted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by The Common Agricultural Policy (Financing, Management and Monitoring Supplementary Provisions) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/765), regs. 1, 4(18)(b)(i); 2020 c. 1, Sch. 5 para. 1(1)
F11Sum in Art. 42(1) substituted (W. in so far as it relates to domestic support for rural development) (26.3.2021) by The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 5(5)(a)
F12Words in Art. 42(1) substituted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by The Common Agricultural Policy (Financing, Management and Monitoring Supplementary Provisions) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/765), regs. 1, 4(18)(b)(ii); 2020 c. 1, Sch. 5 para. 1(1)
F13Words in Art. 42(2) substituted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by The Common Agricultural Policy (Financing, Management and Monitoring Supplementary Provisions) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/765), regs. 1, 4(18)(c)(i); 2020 c. 1, Sch. 5 para. 1(1)
F14Word in Art. 42(2) substituted (E.) (1.1.2024) by The Agriculture (Removal of Cross-Compliance and Miscellaneous Revocations and Amendments, etc.) (England) Regulations 2023 (S.I. 2023/816), regs. 1(1), 7(2)(b)(i)
F15Words in Art. 42(2) omitted (E.) (1.1.2024) by virtue of The Agriculture (Removal of Cross-Compliance and Miscellaneous Revocations and Amendments, etc.) (England) Regulations 2023 (S.I. 2023/816), regs. 1(1), 7(2)(b)(ii)
F16Words in Art. 42(2) substituted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by The Common Agricultural Policy (Financing, Management and Monitoring Supplementary Provisions) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/765), regs. 1, 4(18)(c)(ii); 2020 c. 1, Sch. 5 para. 1(1)
F17Words in Art. 42(2) substituted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by The Common Agricultural Policy (Financing, Management and Monitoring Supplementary Provisions) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/765), regs. 1, 4(18)(c)(v); 2020 c. 1, Sch. 5 para. 1(1)
F18Words in Art. 42(2) omitted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by virtue of The Common Agricultural Policy (Financing, Management and Monitoring Supplementary Provisions) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/765), regs. 1, 4(18)(c)(iii); 2020 c. 1, Sch. 5 para. 1(1)
F19Words in Art. 42(2) substituted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by The Common Agricultural Policy (Financing, Management and Monitoring Supplementary Provisions) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/765), regs. 1, 4(18)(c)(iv); 2020 c. 1, Sch. 5 para. 1(1)
F20Words in Art. 42(2) substituted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by The Common Agricultural Policy (Financing, Management and Monitoring Supplementary Provisions) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/765), regs. 1, 4(18)(c)(vi); 2020 c. 1, Sch. 5 para. 1(1)
F21Words in Art. 42(3) substituted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by The Common Agricultural Policy (Financing, Management and Monitoring Supplementary Provisions) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/765), regs. 1, 4(18)(d)(i); 2020 c. 1, Sch. 5 para. 1(1)
F22Words in Art. 42(3) substituted (E.) (1.1.2024) by The Agriculture (Removal of Cross-Compliance and Miscellaneous Revocations and Amendments, etc.) (England) Regulations 2023 (S.I. 2023/816), regs. 1(1), 7(2)(c)(i)
F23Words in Art. 42(3) substituted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by The Common Agricultural Policy (Financing, Management and Monitoring Supplementary Provisions) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/765), regs. 1, 4(18)(d)(ii); 2020 c. 1, Sch. 5 para. 1(1)
F24Sum in Art. 42(3) substituted (W. in so far as it relates to domestic support for rural development) (26.3.2021) by The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 5(5)(b)
F25Words in Art. 42(3) omitted (E.) (1.1.2024) by virtue of The Agriculture (Removal of Cross-Compliance and Miscellaneous Revocations and Amendments, etc.) (England) Regulations 2023 (S.I. 2023/816), regs. 1(1), 7(2)(c)(ii)
F26Words in Art. 42(4) omitted (E.) (1.1.2024) by virtue of The Agriculture (Removal of Cross-Compliance and Miscellaneous Revocations and Amendments, etc.) (England) Regulations 2023 (S.I. 2023/816), regs. 1(1), 7(2)(d)
F27Words in Art. 42(4) substituted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by The Common Agricultural Policy (Financing, Management and Monitoring Supplementary Provisions) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/765), regs. 1, 4(18)(e); 2020 c. 1, Sch. 5 para. 1(1)
Undertakings shall keep the commercial documents for at least three years, starting from the end of the year in which they were drawn up. [F28The relevant authority] may prescribe a longer period for the retention of these documents.
Textual Amendments
F28Words in Art. 43 substituted (31.12.2020 insofar as relates to common organisation of the markets and rural development measures) by The Common Agricultural Policy (Financing, Management and Monitoring Supplementary Provisions) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/765), regs. 1, 4(19); 2020 c. 1, Sch. 5 para. 1(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F29Art. 44 omitted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by virtue of The Common Agricultural Policy (Financing, Management and Monitoring Supplementary Provisions) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/765), regs. 1, 4(20); 2020 c. 1, Sch. 5 para. 1(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F30Art. 45 omitted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by virtue of The Common Agricultural Policy (Financing, Management and Monitoring Supplementary Provisions) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/765), regs. 1, 4(20); 2020 c. 1, Sch. 5 para. 1(1)
1.The annual programme of scrutinies referred to in Article 84 of Regulation (EU) No 1306/2013 shall be drawn up in accordance with the specimen form shown in Annex XI to this Regulation.
2.The annual report referred to in Article 86(1) of Regulation (EU) No 1306/2013 shall set out any difficulties encountered and the measures taken to overcome them and put forward, where appropriate, suggestions for improvements.
It shall include detailed information on each of the aspects of the application of Chapter III of Title V of Regulation (EU) No 1306/2013 listed in Annex XII to this Regulation, set out in clearly identified sections under the headings referred to in that Annex.
3.The information to be submitted under this Article and Article 45 may be communicated in paper form or in electronic form, in a format to be agreed between the sender and the recipient.
F314.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F31Art. 46(4) omitted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by virtue of The Common Agricultural Policy (Financing, Management and Monitoring Supplementary Provisions) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/765), regs. 1, 4(21); 2020 c. 1, Sch. 5 para. 1(1)
1.The special departments referred to in Article 85 of Regulation (EU) No 1306/2013 [F32shall be responsible][F32may], in addition to the tasks referred to in that Article [F33, for]:
(a)[F34training][F34train] the national officials responsible for carrying out the scrutiny referred to in this Section, to enable them to acquire sufficient knowledge to perform their duties;
(b)[F35administering][F35administer] the scrutiny reports and any other documents relating to the scrutinies carried out and provided for under Chapter III of Title V of Regulation (EU) No 1306/2013
(c)[F36the preparation and communication of][F36prepare and communicate] the programmes referred to in Article 84 of Regulation (EU) No 1306/2013 and the reports referred to in Article 86(1) of that Regulation.
2.Special departments shall be entrusted by [F37a relevant authority] with all the powers necessary to perform the tasks referred to in paragraph 1.
They shall consist of a sufficient number of officials who are suitably trained to carry out those tasks.
3.[F38A relevant authority] where the minimum number of undertakings to control is less than 10 shall not be required to establish a special department.
Textual Amendments
F32Word in Art. 47(1) substituted (E.) (1.1.2024) by The Agriculture (Removal of Cross-Compliance and Miscellaneous Revocations and Amendments, etc.) (England) Regulations 2023 (S.I. 2023/816), regs. 1(1), 7(3)(a)
F33Word in Art. 47(1) omitted (E.) (1.1.2024) by virtue of The Agriculture (Removal of Cross-Compliance and Miscellaneous Revocations and Amendments, etc.) (England) Regulations 2023 (S.I. 2023/816), regs. 1(1), 7(3)(b)
F34Word in Art. 47(1)(a) substituted (E.) (1.1.2024) by The Agriculture (Removal of Cross-Compliance and Miscellaneous Revocations and Amendments, etc.) (England) Regulations 2023 (S.I. 2023/816), regs. 1(1), 7(3)(c)
F35Word in Art. 47(1)(b) substituted (E.) (1.1.2024) by The Agriculture (Removal of Cross-Compliance and Miscellaneous Revocations and Amendments, etc.) (England) Regulations 2023 (S.I. 2023/816), regs. 1(1), 7(3)(d)
F36Words in Art. 47(1)(c) substituted (E.) (1.1.2024) by The Agriculture (Removal of Cross-Compliance and Miscellaneous Revocations and Amendments, etc.) (England) Regulations 2023 (S.I. 2023/816), regs. 1(1), 7(3)(e)
F37Words in Art. 47(2) substituted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by The Common Agricultural Policy (Financing, Management and Monitoring Supplementary Provisions) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/765), regs. 1, 4(22)(i); 2020 c. 1, Sch. 5 para. 1(1)
F38Words in Art. 47(3) substituted (31.12.2020 in so far as it relates to common organisation of the markets and rural development measures) by The Common Agricultural Policy (Financing, Management and Monitoring Supplementary Provisions) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/765), regs. 1, 4(22)(ii); 2020 c. 1, Sch. 5 para. 1(1)
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