1992R3950 — EN — 19.03.1998 — 007.001 — 1
This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents
►B COUNCIL REGULATION (EEC)No 3950/92
of 28 December 1992
establishing an additional levy in the milk and milk products sector
(OJ L 405, 31.12.1992, p. 1)
Amended by:
Official Journal
No page date
►M1Council Regulation (EEC) No 748/93 of 17 March 1993 L 77 16 31.3.1993
►M2Council Regulation (EEC) No 1560/93 of 14 June 1993 L 154 30 25.6.1993
►M3Commission Regulation (EC) No 647/94 of 23 March 1994 L 80 16 24.3.1994
►M4Council Regulation (EC) No 1883/94 of 27 July 1994 L 197 25 30.7.1994
►M5Commission Regulation (EC) No 630/95 of 23 March 1995 L 66 11 24.3.1995
►M6Council Regulation (EC) No 1552/95 of 29 June 1995 L 148 43 30.6.1995
►M7Commission Regulation (EC) No 635/96 of 10 April 1996 L 90 17 11.4.1996
►M8Commission Regulation (EC) No 1109/96 of 20 June 1996 L 148 13 21.6.1996
►M9Commission Regulation (EC) No 614/97 of 8 April 1997 L 94 4 9.4.1997
►M10Commission Regulation (EC) No 903/98 of 28 April 1998 L 127 8 29.4.1998
►M11Council Regulation (EC) No 551/98 of 9 March 1998 L 73 1 12.3.1998
Amended by:
►A1Act of Accession of Austria, Sweden and Finland C 241 21 29.8.1994
(adapted by Council Decision 95/1/EC, Euratom, ECSC) L 1 1 1.1.1995
▼B
COUNCIL REGULATION (EEC)No 3950/92
of 28 December 1992
establishing an additional levy in the milk and milk products sector
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic
Community, and in particular Article 43 thereof,
Having regard to the proposal from the Commission(1),
Having regard to the opinion of the European Parliament(2),
Whereas, pursuant to Council Regulation (EEC) No 856/84 of 31 March
1984 amending Regulation (EEC) No 804/68 on the common
organization of the market in milk and milk products(3), an additional
levy scheme was introduced from 2 April 1984 in the said sector;whereas the purpose of this scheme, introduced for nine years and due toexpire of 31 March 1993, was to reduce the imbalance between supply
and demand on the milk and milk-products market and the resulting
structural surpluses; whereas the scheme remains necessary in the futurein order to achieve a better market balance; whereas it should thereforecontinue to be applied for seven further consecutive 12-month periodsstarting on 1 April 1993;
Whereas, in order to make full use of the experience gained in this area
and in the interests of simplification and clarification with a view toensuring the legal certainty of producers and other parties concerned, the
basicrules of the extended sc heme should be laid down in a separate
regulation, their scope and diversity should be reduced and CouncilRegulation (EEC) No 2074/92 of 30 June 1992 establishing anadditional levy on the milk and milk-products sector(
4), adopted as an
interim measure by the Council, and Regulation (EEC) No 857/84 of 31
March 1984 laying down general rules for the application of the levy
referred to in Article 5c of Regulation (EEC) No 804/68 in the milk andmilk-products sector(
5), should both be repealed, without prejudice to
the obligations and undertakings entered into under the said Regulation;
Whereas the method adopted in 1984, consisting of the application of a
levy to quantities of milk collected or sold for direct consumption abovea certain guarantee threshold, must be maintained; whereas the saidthreshold is expressed for each Member State by a guaranteed total
quantity which may not be exceeded by the sum of the individually
allocated quantities for both deliveries and sales for direct consumption;whereas the quantities are established for the seven periods as from 1April 1993 and take account of the various factors relating to the schemein the past;
Whereas in particular, a Community reserve was created at the start of
the scheme to take account of the difficulties created for certain Member
States by the implementation of a scheme for controlling milk
production; whereas the said reserve had been increased several timesto meet the special needs of certain Member States and certainproducers; whereas in the light of this experience the various parts of theCommunity reserve should be incorporated into the guaranteed totalquantities and the reserve be abolished;
Whereas the Council has decided, in the context of the reform of the
common agricultural policy, to take a definitive decision on the level of
the total quantities to apply during the first of the two periods of twelve
months, in the light, in particular, of a report on the market situationwhich the Commission will present before each of these periods;1992R3950 — EN — 19.03.1998 — 007.001 — 2
(1) OJ No C 337, 31. 12. 1991, p. 35.
(2) OJ No C 94, 13. 4. 1992, p. 101.
(3) OJ No L 90, 1. 4. 1984, p. 10.
(4) OJ No L 215, 30. 7. 1992, p. 69.
(5) OJ No L 90, 1. 4. 1984, p. 13. Regulation as last amended by Regulation
(EEC) No 817/92 (OJ No L 86, 1. 4. 1992, p. 85).
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Whereas if any of the total guaranteed quantities is overrun, the
consequence for the Member State is that the producers who contributedto the overrun must pay the levy; whereas the levy on deliveries and
sales for direct consumption should be fixed at 115 % of the target price
for milk; whereas a difference in rates is no longer justified if producersare placed in a comparable position as regards the calculation of thelevy;
Whereas, in order to keep the management of the scheme sufficiently
flexible, provision should be made for individual overruns to be equalledout over all the individual reference quantities of the same type within
the territory of a Member State; whereas in the case of deliveries, which
constitute nearly all the quantities marketed, the need to ensure that thelevy is fully effective throughout the Community justifies, in principle,continuing to allow Member States the choice between two methods ofequalling out overruns of individual reference quantities, bearing inmind the variety of milk production and collection structures; whereas,
in this connection, Member States should be authorized not to reallocate
unused reference quantities at the end of a period, whether nationally orbetween purchasers, and to use the amount collected in excess of thelevy due for funding national restructuring programmes and/or to refundit to producers of certain categories or producers who find themselves in
an exceptional situation;
Whereas, in order to avoid, as in the past, long delays between collection
and payment of the levy, which are incompatible with the scheme's
objective, provision should be made for the purchaser, who seems in thebest position to carry out the necessary operations, to be liable for thelevy, and for him to be given the means to collect the levy from theproducers who owe it;
Whereas the individual reference quantity should be defined as the
quantity available, irrespective of any quantities which may have beentransferred temporarily, on 31 March 1993, the expiry date of the nine
initial periods of application of the levy scheme; whereas the principles
or provisions pursuant to which the said quantity must or may bereduced or increased under the extended scheme should be specified;
Whereas, therefore, under the rules for determining the individual
reference quantities, account should be taken of producers who haveprovisionally received a specific quantity under the scheme in the past;
Whereas it has been agreed that application of the arrangements to
control milk production must not jeopardize the restructuring ofagricultural holdings in the territory of the former German Democratic
Republic; whereas the difficulties encountered make it necessary to
extend for a further period the flexibility introduced into thosearrangements for that territory, while ensuring that it remains the solebeneficiary;
Whereas reference quantities for deliveries and direct sales should be
adapted to reflect economic realities and whereas a producer shouldtherefore be entitled to have a reference quantity increased orestablished where another is reduced or abolished commensurately, on
condition that the request is duly justified by the need to take account of
changes in his marketing requirements;
Whereas experience has shown that that implementation of this scheme
presupposes the existence of a national reserve to accommodate all thosequantities which, for whatever reasons, are not, or are no longer,allocated individually; whereas a Member State may need to havereference quantities available to cater for special situations, determined
by objective criteria; whereas it should be authorized, to this end, to top
up its national reserve, especially following a linear reduction in allreference quantities;
Whereas the temporary transfer of parts of individual reference
quantities in Member States which have authorized this has proven tobe an improvement to the scheme; whereas this facility should thereforebe extended to all producers; whereas, however, implementation of thisprinciple should not stand in the way of further structural change and1992R3950 — EN — 19.03.1998 — 007.001 — 3
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adjustment, nor fail to take account of the resulting administrative
difficulties;
Whereas when the additional levy system was brought in in 1984, the
principle was established that when an undertaking was sold, leased ortransferred by inheritance, the corresponding reference quantity was
transferred to the purchaser, tenant or heir; whereas this original
decision should not be changed; whereas, however, national provisionsto safeguard the legitimate interests of the parties should beimplemented in all cases of transfer, where the parties are not inagreement;
Whereas, in order to continue restructuring milk production and
improving the environment, certain derogations to the principle linkingreference quantities to holdings should be extended, and Member Statesshould be authorized to continue implementing national restructuring
programmes and to organize some degree of mobility for reference
quantities within a given geographical area, on the basis of objectivecriteria;
Whereas the purpose of the levy provided for in this Regulation is to
stabilize the market in milk products; whereas the revenue accruing fromthis Regulation should therefore be used for financing expenditure in themilk sector,
HAS ADOPTED THIS REGULATION:
Article 1
For seven new consecutive periods of twelve months commencing on 1
April 1993, an additional levy shall be payable by producers of cow'smilk on quantities of milk or milk equivalent delivered to a purchaser or
sold directly for consumption during the 12-month period in question in
excess of a quantity to be determined.
The levy shall be 115 % of the target price for milk.
Article 2
1. The levy shall be payable on all quantities of milk or milk
equivalent marketed during the 12-month period in question in excess ofthe relevant quantity referred to in Article 3. It shall be shared betweenthe producers who contributed to the overrun.
In accordance with a decision of the Member State, the contribution of
producers towards the levy payable shall be established, after the unusedreference quantities have been reallocated or not, either at the level of
the purchaser, in the light of the overrun remaining after unused
reference quantities have been allocated in proportion to the referencequantities of each producer, or at national level, in the light of theoverrun in the reference quantity of each individual producer.
2. As regards deliveries, before a date and in accordance with
detailed rules to be laid down, the purchaser liable for the levy shall payto the competent body of the Member State the amount payable, whichhe shall deduct from the price of milk paid to producers who owe thelevy or, failing this, collect by any appropriate means.
Whereas a purchaser replaces in whole or in part one or more
purchasers, the individual reference quantities available to producersshall be taken into account for the remainder of the twelve-month period
in progress, less quantities already delivered and account being taken of
their fat content. The same provisions shall apply where a producertransfers from one purchaser to another.
Where quantities delivered by a producer exceed his reference quantity,
the purchaser shall be authorized, by way of an advance on the levypayable, in accordance with detailed rules laid down by the MemberState, to deduct an amount from the price of the milk in respect of anydelivery by that producer in excess of his reference quantity.1992R3950 — EN — 19.03.1998 — 007.001 — 4
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3. As regards direct sales, the producer shall pay the levy payable to
the competent body of the Member State before a date and in accordancewith rules to be laid down.
4. Where the levy is payable and the amount collected is greater than
that levy, the Member State may use the excess to finance the measuresreferred to in the first indent of Article 8 and/or redistribute it toproducers who fall within priority categories established by the Member
State on the basis of objective criteria to be determined or who are
affected by an exceptional situation resulting from a national provisionunconnected with this scheme.
Article 3
1. The sum of the individual reference quantities of the same type
may not exceed the corresponding total quantities for each MemberState.
2. The following total quantities shall be fixed without prejudice to
possible review in the light of the general market situation and particularconditions existing in certain Member States:
Member State Deliveries Direct sales
Belgium 3 125 099 185 332
Denmark 4 454 649 699
Germany (1) 27 767 500 97 316
Greece 629 817 696Spain 5 452 064 114 886France 23 772 759 463 039Ireland 5 235 902 9 862
Italy 9 698 399 231 661
Luxembourg 268 098 951Netherlands 10 988 594 86 098Austria 2 383 182 366 195Portugal 1 835 461 37 000
Finland 2 388 183 10 000
Sweden 3 300 000 3 000United Kingdom 14 354 321 235 726
(1) Of which 6 243 080 tonnes for deliveries by producers in the new Länderand 10 287
tonnes for direct sales in the new Länder.
The increase in the total quantities for Belgium, Denmark, Germany, France,
Ireland, Luxembourg, the Netherlands and the United Kingdom shall be granted
in order to permit the allocation of additional reference quantities to:
— producers who, by virtue of the second indent of Article 3a (1) of Regulation
(EEC) No 857/84(1), had been excluded from allocation of a special reference
quantity,
— producers situated in the mountain areas as defined in Article 3 (3) of
Directive 75/268/EEC(2) or to the producers referred to in Article 5 of this
Regulation or to all producers.
The increase in the total quantity for Portugal shall be granted as a matter of
priority to contribute towards satisfying the requests for additional reference1992R3950 — EN — 19.03.1998 — 007.001 — 5
(1) OJ No L 900, 1. 4. 1984, p. 13.
(2) OJ No L 128, 19. 5. 1975, p. 1.▼M2
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▼M10
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quantities from producers whose production during the 1990 reference year was
substantially affected by exceptional events which took place during the period
1988 to 1990 or to the producers referred to in Article 5.
The increase in total quantities of deliveries granted for the period 1993/
94 for Greece, Spain and Italy shall be established for Spain and shall be
extended for the period 1994/95 for Greece and Italy. The total quantityof deliveries for Italy includes a reserve of 347 701 tonnes for allocation,in so far as necessary and in agreement with the Commission, ofreference quantities to producers who have brought legal proceedings
against a national administration following withdrawal of their reference
quantities and obtain judgment in their favour.
The increase in the total quantities of deliveries granted for the period
1994/95 for Greece and Italy shall be established with effect from 1995/96.
The overall quantity for the Austrian deliveries quota may be increased
to compensate Austrian ‘SLOM’ producers, up to a maximum of180 000 tonnes, to be allocated in accordance with Communitylegislation. This reserve must be non-transferable and used exclusivelyon behalf of producers whose right to take up production again will be
affected as a result of accession.
The overall quantity for the Finnish deliveries quota may be increased to
compensate Finnish ‘SLOM’ producers, up to a maximum of200 000 tonnes, to be allocated in accordance with Communitylegislation. This reserve must be non-transferable and used exclusively
on behalf of producers whose right to take up production again will be
affected as a result of accession.
The increase in overall quantities, and the conditions under which the
individual reference quantities provided for in the two precedingsubparagraphs shall be granted, shall be decided upon in accordance
with the procedure referred to in Article 11.
3. When the Council decides to adjust the abovementioned total
quantities to the market situation, the adjustments shall be expressed as a
percentage of the total quantities to be complied with for the preceding
period.
Article 4
1. The individual reference quantity available on the holding shall be
equal to the quantity available on 31 March 1993 and shall be adjusted,where appropriate, for each of the periods concerned, so that the sum ofthe individual reference quantities of the same type does not exceed thecorresponding global quantities referred to in Article 3, taking account
of any reductions made for allocation to the national reserve provided
for in Article 5.
However, for Austria and Finland, the date of 31 March 1993 shall be
replaced by that of 31 March 1995 and for Sweden by that of 31 March
1996.
2. Individual reference quantities shall be increased or established at
the duly justified request of producers to take account of changesaffecting their deliveries and/or direct sales. The increase or establish-ment of such a reference quantity shall be subject to a correspondingreduction or cancellation of the other reference quantity the producerowns. Such adjustments may not lead to an increase in the sum of the
deliveries and direct sales referred to in Article 3 for the Member State
concerned.
Where the individual reference quantities undergo a definitive change,
the quantities referred to in Article 3 shall be adjusted in accordancewith the procedure laid down in Article 11.1992R3950 — EN — 19.03.1998 — 007.001 — 6
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▼A1
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3. If a producer who has provisionally received a specific individual
reference quantity pursuant to the last subparagraph of Article 3a(1) ofRegulation (EEC) No 857/84 can prove before 1 July 1993 to the
satisfaction of the competent authority that he has actually resumed sales
and/or deliveries and that his direct sales and/or his deliveries have inthe course of the preceding twelve months reached a level equal to orhigher than 80 % of the provisional reference quantity, the specificreference quantity shall be allocated definitively to him. Otherwise, the
reference quantity definitively allocated shall be equal to the quantity
actually delivered or sold direct.
Actual deliveries and/or direct sales shall be determined in the light of
the trend in production on the producer's holding, seasonal conditionsand any exceptional circumstances.
4. In the case of agricultural holdings situated in the territory of the
former German Democratic Republic, the reference quantity may beallocated provisionally for the period from 1 April 1993 to 31 March1994, provided that the quantity thus allocated is not modified duringthat period.
However, in order to complete the restructuring of the said holdings, the
first subparagraph shall continue to apply until the end of the period1997/98.
With a view to the definitive solution of the difficulties stemming from
restructuring as referred to above, the application of the firstsubparagraph shall be extended for two 12-month periods from theexpiry of the period referred to in the second subparagraph.
Article 5
Within the quantities referred to in Article 3, the Member State may
replenish the national reserve following an across-the-board reduction inall the individual reference quantities in order to grant additional orspecific quantities to producers determined in accordance with objectivecriteria agreed with the Commission, without prejudice to the provisionsof the second and third subparagraphs of Article 3 (2).
Without prejudice to Article 6 (1), reference quantities available to
producers who have not marketed milk or other milk products for one ofthe twelve-month periods shall be allocated to the national reserve and
may be reallocated in accordance with the first subparagraph. Where the
producer resumes production of milk or other milk products within aperiod to be determined by the Member State, he shall be granted areference quantity in accordance with Article 4 (1) no later than 1 Aprilfollowing the date of his application.
Article 6
1. Before a date that they shall determine and by 31 December at the
latest, Member States shall authorize, for the 12-month periodconcerned, temporary transfers of individual reference quantities whichproducers who are entitled thereto do not intend to use. However, thereference quantities referred to in Article 4 (3) may not be the subject of
such temporary transfers until 31 March 1995.
Member States may vary transfer operations depending on the category
of producers or dairy production structures, may limit them at the levelof the purchaser within regions and may determine to what extenttransfer operations may be renewed.
2. Any Member State may decide not to implement paragraph 1 on
the basis of one or both of the following criteria:
— the need to facilitate structural developments and adjustments,
— overriding administrative needs.1992R3950 — EN — 19.03.1998 — 007.001 — 7
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Article 7
1. Reference quantities available on a holding shall be transferred
with the holding in the case of sale, lease or transfer by inheritance tothe producers taking it over in accordance with detailed rules to bedetermined by the Member States taking account of the areas used fordairy production or other objective criteria and, where applicable, of anyagreement between the parties. Any part of the reference quantity which
is not transferred with the holding shall be added to the national reserve.
The same provisions shall apply to other cases of transfers involving
comparable legal effects for producers.
However:
(a) until 30 June 1994, the reference quantity referred to in Article 4 (3)
shall be added to the national reserve in the case of sale or leasing ofthe holding;
(b) where land is transferred to publicauthorities and/or for use in the
publicinterest, or where the transfer is c arried out for non-agricultural purposes, Member States shall provide that the measures
necessary to protect the legitimate interests of the parties are
implemented, and in particular that the departing producer is in aposition to continue milk production, if such is his intention.
2. Where there is no agreement between the parties, in the case of
rural leases due to expire without any possibility of renewal on similar
terms, or in situations involving comparable legal effects, the reference
quantities available on the holdings in question shall be transferred inwhole or in part to the producers taking them over, in accordance withprovisions adopted or to be adopted by the Member States, takingaccount of the legitimate interests of the parties.
Article 8
With a view to completing restructuring of milk production at national,
regional or collection area level, or to environmental improvement,Member States may take one or more of the following actions inaccordance with detailed rules which they shall lay down taking account
of the legitimate interests of the parties:
— grant compensation in one or more annual instalments to producers
who undertake to abandon definitively all or part of their milk
production and place the reference quantities thus released in thenational reserve,
— determine on the basis of objective criteria the conditions under
which producers may obtain, in return for payment, at the beginningof a 12-month period, the reallocation by the competent authority or
by the body designated by that authority, of reference quantities
released definitively at the end of the preceding twelve-month periodby other producers in return for compensation in one or more annualinstalments equal to the abovementioned payment,
— provide, in the case of land transferred with a view to improving the
environment, for the allocation of the reference quantity available on
the holding concerned to the departing producer if he intends
continuing milk production,
— determine, on the basis of objective criteria, the regions or collection
areas within which the transfer of reference quantities betweencertain producer categories without transfer of the correspondingland is authorized, with the aim of improving the structure of milk
production,
— authorize, upon application by the producer to the competent
authority or the body designated by that authority, the transfer ofreference quantities without transfer of the corresponding land, orvice versa, with the aim of improving the structure of milk
production at the level of the holding or to allow for extensification
of production.
However, until 30 June 1994, producers with a reference quantity as
referred to in Article 4 (3) may not benefit from the provisions of thisArticle, with the exception of the third indent.1992R3950 — EN — 19.03.1998 — 007.001 — 8
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For the implementation, during the 1993/94 period in each Member
State, of a programme for the restructuring of milk production, and, ifnecessary, to replenish the national reserve with a view to allocating the
additional quantities referred to in the first indent of the second
subparagraph of Article 3 (2), Community financing shall be granted,limited to the amounts in ecus indicated below; the method of applyingsuch financing and in particular the maximum amount of the indemnityshall be adopted in accordance with the procedure referred to in Article
11:
Belgium 1 106 613
Denmark 1 678 207Germany 10 460 461Greece 235 842Spain 1 959 115
France 8 854 814
Ireland 1 970 627Italy 3 470 719Luxembourg 101 007Netherlands 4 133 772
Portugal 679 994
United Kingdom 5 348 829
These amounts shall be converted into national currencies with the aid
of the conversion rate applicable for the entry in the accounts of theexpenditure of the general budget of the European Communities valid on20 July 1993.
The financing of payments made under this programme shall be deemed
intervention within the meaning of Article 3 of Regulation (EEC) No729/70(
1).
The expenditure commitment must be made by virtue of the
appropriations of the 1993 financial year, at the request of the MemberStates and by 30 September 1993 at the latest. The payments made bythe disbursing agencies must be effected before 15 October 1994.
Article 9
For the purposes of this Regulation:
(a) ‘milk’ means the produce of the milking of one or more cows;
(b) ‘other milk products’ means cream, butter and cheese in particular;
(c) ‘producer’ means a natural or legal person or a group of natural or
legal persons farming a holding ►
M2within the geographical
territory of a Member State ◄:
— selling milk or other milk products directly to the consumer,
— and/or supplying the purchaser;
(d) ‘holding’ means all production units operated by the single producer
and located ►M2within the geographical territory of a Member
State◄;
(e) ‘purchaser’ means an undertaking or grouping which purchases milk
or other milk products from a producer:
— to treat or process them,
— to sell them to one or more undertakings treating or processing
milk or other milk products.1992R3950 — EN — 19.03.1998 — 007.001 — 9
(1) OJ No L 94, 28. 4. 1970, p. 13.▼B
▼B
However, any group of purchasers in the same geographical area
which carries out administrative and accounting operations neces-sary for the payment of the levy on behalf of its members shall be
regarded as a purchaser. For the purposes of applying this provision,
Greece shall be deemed a single geographical area and it may deeman official body to be a group of purchasers as referred to above;
(f) ‘untertaking treating or processing milk or other milk products’
means an undertaking or grouping which is involved in collection,
packaging, storage, chilling and processing operations or whosedairying activities are restricted to one of those operations;
(g) ‘delivery’ means any delivery of milk or other milk products,
whether the transport is carried out by the producer, a purchaser, an
undertaking processing or treating such products or a third party;
(h) ‘milk or milk equivalent sold directly for consumption’ means milk
or milk products converted into milk equivalent, sold or transferred
free without going through an undertaking treating or processing
milk or other milk products.
Article 10
The levy shall be considered as intervention to stabilize agricultural
markets and shall be used to finance expenditure in the milk sector.
Article 11
The detailed rules for the application of this Regulation and in particular
the characteristics of milk, including fat content, which are consideredrepresentative for the purposes of establishing the quantities of milkdelivered or purchased shall be adopted in accordance with theprocedure provided for in Article 30 of Regulation (EEC) No 804/68(
1).
However, for Austria, Finland and Sweden, the characteristics of the
milk considered as representative shall be those of the 1992 calendaryear, and the national average representative fat content of the milkdelivered shall be set at 4,03 % for Austria, at 4,34 % for Finland and at4,33 % for Sweden.
Article 12
Regulations (EEC) Nos 857/84 and 2074/92 are hereby repealed.
Article 13
This Regulation shall enter into force on the third day following that of
its publication in the Official JournaloftheEuropeanCommunities .
It shall apply from 1 April 1993.
This Regulation shall be binding in its entirety and directly applicable in
all Member States.1992R3950 — EN — 19.03.1998 — 007.001 — 10
(1) OJ No L 148, 28. 6. 1968, p. 13. Regulation as last amended by Regulation
(EEC) No 2071/92 (OJ No L 215, 30. 7. 1992, p. 64).▼A1
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