(1)

Article 104(1), second subparagraph, point (a), of Regulation (EU) 2021/2116 provides that Article 4(1), point (b), Article 5, Article 7(3), Articles 9, 17, 21 and 34, Article 35(4), Articles 36, 37, 38, 40 to 43, 51, 52, 54, 56, 59, 63, 64, 67, 68, 70 to 75, 77, 91 to 97, 99 and 100, Article 102(2) and Articles 110 and 111 of Regulation (EU) No 1306/2013 continue to apply, as regards debts arising from expenditure financed by the European Agricultural Guarantee Fund (EAGF) under the 2014-2020 programming period and the 2007-2013 programming period for financial year 2022.

(2)

Article 64, second paragraph, point (a), of Commission Implementing Regulation (EU) 2022/128 (3) provides that Article 2, Article 3(1), first subparagraph, Article 3(2), Article 4(1), point (b), Article 5, Article 6, Article 7, Articles 21 to 25, Article 27, Article 28, Article 29, Article 30(1), points (a), (b) and (c), Article 30(2), (3) and (4), Articles 31 to 40 and Articles 42 to 47 of Commission Implementing Regulation (EU) No 908/2014 (4) continue to apply, as regards debts arising from expenditure financed by the EAGF under the 2014-2020 programming period and the 2007-2013 programming period for financial year 2022.

(3)

Article 64, second paragraph, point (c), of Implementing Regulation (EU) 2022/128 provides that Annexes II and III to Implementing Regulation (EU) No 908/2014 continue to apply for the purposes of Article 32, points (f) and (g), of Implementing Regulation (EU) 2022/128 for financial year 2022.

(4)

Pursuant to Article 51 of Regulation (EU) No 1306/2013, the Commission, on the basis of the annual accounts submitted by the United Kingdom, accompanied by the information required for the clearance of accounts and an audit opinion regarding the completeness, accuracy and veracity of the accounts and the reports established by the certification bodies, has to clear the accounts of the paying agencies referred to in Article 7 of that Regulation prior to 31 May of the year following the budget year in question.

(5)

Pursuant to Article 138(1) of the Withdrawal Agreement, the United Kingdom has an obligation to continue to ensure the functioning of the management and control system for recognition, registration and recovery of debts arising from expenditure financed by EAGF under 2014-2020 programming period and the 2007-2013 programming period, in accordance with Article 54 of Regulation (EU) No 1306/2013.

(6)

In accordance with Article 35 of Regulation (EU) 2021/2116, the agricultural financial year begins on 16 October of year N-1 and ends on 15 October of year N. When clearing the accounts for financial year 2022, account should be taken of recognition, registration and recovery of debts by the United Kingdom between 16 October 2021 and 15 October 2022, as provided for in Article 11(1) of Implementing Regulation (EU) 2022/128.

(7)

The Commission has checked the information submitted by the United Kingdom and has communicated the results of its checks to the United Kingdom, together with the amendments it proposes.

(8)

For the paying agencies of the United Kingdom, ‘Department of Agriculture, Environment and Rural Affairs’, ‘The Scottish Government Rural Payments and Inspections Directorate’, ‘Welsh Government’ and ‘Rural Payments Agency’, the annual accounts and the accompanying documents permit the Commission to take a decision on the completeness, accuracy and veracity of the annual accounts submitted.

(9)

Pursuant to Article 54(2) of Regulation (EU) No 1306/2013, 50 % of the financial consequences of non-recovery of irregularities should be borne by the United Kingdom, if recovery has not taken place within 4 years from the date of the recovery request, or within 8 years where the recovery is taken before the national courts. Article 54(4) of Regulation (EU) No 1306/2013 requires the United Kingdom to attach to the annual accounts that it has to submit to the Commission pursuant to Article 29 of Implementing Regulation (EU) No 908/2014 a certified table reflecting the amounts to be borne by the United Kingdom under Article 54(2) of Regulation (EU) No 1306/2013. Rules on the application of the obligation of the United Kingdom to report the amounts to be recovered are laid down in Implementing Regulation (EU) No 908/2014. Annex II to Implementing Regulation (EU) No 908/2014 sets out the model of the table that the United Kingdom has to use to provide information about amounts to be recovered. On the basis of the tables completed by the United Kingdom, the Commission should decide on the financial consequences of non-recovery of irregularities older than 4 or 8 years respectively.

(10)

Pursuant to Article 54(3) of Regulation (EU) No 1306/2013, on duly justified grounds, the United Kingdom may decide not to pursue recovery. Such a decision may be taken only if the costs already, and likely to be, incurred total more than the amount to be recovered, or if the recovery proves impossible owing to the insolvency, recorded and recognised under national law, of the debtor or the persons legally responsible for the irregularity. If the decision has been taken within 4 years from the date of the recovery request or within 8 years where the recovery is taken to the national courts, 100 % of the financial consequences of the non-recovery should be borne by the Union budget. The amounts for which the United Kingdom decided not to pursue recovery and the grounds for the decision are shown in the summary report referred to in Article 54(4) of that Regulation. Therefore, such amounts should not be charged to the United Kingdom and are consequently borne by the Union budget.

(11)

In accordance with Article 51 of Regulation (EU) No 1306/2013, this Decision should be without prejudice to the decisions the Commission may take subsequently to exclude from Union financing expenditure not effected in accordance with Union rules,