COMMISSION OF THE EUROPEAN COMVIUNITIES 
C0MC93) 89 finai 
Brussels, 2 2 March 1993 
Proposal for a 
^iKirn REGIHATION (EEC) 
of 
allocating a special reference quantity 
to certain producers of milk and milk products 
(presented by the Commission) 
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EXPÏiANÂToRï MEMORANDUM 
The Council to date has amended the Community rules on milk quotas by two 
successive Regulations to take account of the judgments of the Court of 
Justice in favour of producers who were unable, as a result of an 
undertaking not to market milk or to convert dairy herds in return for a 
premium pursuant to Regulation (EEC) No 1078/77, to market milk or dairy 
products during the reference year selected by the Member state in 
connection with the implementation in 1984 of the additional levy scheme. 
The provisions thus amended of Council Regulation (EEC) No 857/84 adopting 
general rules for the application of the levy excluded from the allocation 
of a special reference quantity producers who became transferees of a 
premium through the acquisition of a holding subject to an undertaking where 
they had already received a reference quantity, in respect of another 
holding, when the quota scheme was implemented in 1984. 
The Court of Justice in its judgment of 3 December 1992 declared the 
exclusion of transferees of the premium invalid. Steps should be taken, 
therefore, to make available to this new class of potential recipients the 
opportunity of obtaining a special reference quantity. 
The provision declared invalid by the Court is Article 3a of Regulation 
(EEC) No 857/84 which will be repealed on 1 April 1993. It is necessary, 
therefore, to legislate in a new Regulation which it would seem preferable, 
given its transitory nature, to make autonomous. The new basic Council 
Regulation (EEC) No 3950/92 establishing an additional levy scheme for a 
further seven periods is not therefore being amended. 
The provisions of the present proposal compel the new recipients of 
quantities to comply with the same conditions as their predecessors only to 
the extent that this does not conflict with the fact that they are already 
producing milk. That aside, the requirements imposed on the first two 
clanaea of producers who have been allocated quotas are imposed also <>n this 
third class. 
While the Community has twice in the past taken the necessary steps to 
provide the Member States, generously, with the quantities they required to 
meet their obligations, it would seem that a solution must now be found 
within the guaranteed total quantities of the Member States concerned, in 
line, moreover, with the Commission's statement to the Council at the time 
of the last Community programme for buying back quantities. 
council Regulation (KIC) tso /93 
of 
allocating a special reference quantity 
to certain producers of milk and milk products 
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(*), 
Having regard to the opinion of the European Parliament^2) 
Whereas certain producers of milk and milk products, as a result of having 
given an undertaking not to market milk or to convert dairy herds, did not 
supply or sell milk or milk products from their holding during the reference 
year adopted by the Member states in the context of the implementation of 
the quota system; whereas in consequence those producers were not allocated 
a reference quant ity; 
Whereas Council Regulation (EEC) No 857/84 of 31 March 1984 adopting general 
rules for the application of the levy referred to in Article 5c nf 
Regulation (EEC) No 804/68 Jn U»« ml L k and milk pi injuria gad m (J) hatt !»«»)( 
amended successively in favour of those producers by koqu I nt. jona (ttfc'') tt>,* 
764/89<^) and 1639/9l(5>; 
(1) 0J No C 
(2) 0J NO C 
(3) OJ No L 90, 1.4.1984, p. 13 
(If) OJ No L 
(5) OJ No L 
Whereas the Court of Justice in its judgment of 3 December 1992 in Case C-
264/90 declared invalid the second indent of Article 3a(l) of Regulation 
(EEC) No 857/84 as provided for in the abovementioned Regulations (EEC) Nos 
764/89 and 1639/91 in so far as it excludes from the allocation of a special 
reference quantity the transferees of a premium granted pursuant to council 
Regulation (EEC) No 1078/77 of 17 May 1977 introducing a system of premiums 
for the non-marketing of milk and milk products and for the conversion of 
dairy herds(*), where the transferees have already obtained a reference 
quantity for another holding under Article 2 of Regulation (EEC) No 857/84; 
Whereas Council Regulation (EEC) No 3950/92 of 28 December 1992 establishing 
an additional levy in the milk and milk products sector(2) repeals 
Regulation (EEC) No 857/84 with effect from 1 April 1993; whereas the 
inferences should be drawn from the abovementioned judgment in a new 
Regulation; 
Whereas under Article 3a of Regulation (EEC) No 857/84 the special reference 
quantity is provisionally, and subsequently definitively, allocated subject 
to compliance with certain conditions; whereas the said conditions specify 
in particular that the applicant concerned must effectively recommence 
activity as a milk producer which he had to abandon completely; whereas in 
the present case the transferee is an active milk producer; whereas, 
therefore, for the allocation of the special reference quantity he cannot be 
subject to condiitions that are identical with those laid down in Article 3a 
of Regulation (EEC) No 857/84; 
Whereas the Member states must remove the quantities required for the 
allocation of the special reference quantities from the national reserve, 
which they must replenish to that end pursuant to Regulation (EEC) No 
3950/92, 
(1) OJ No L 131, 26. 5.1977, p. 1. 
(2) OJ No L 405, 31.12.1992, p. 1. 
HAS ADOPTED THIS REGULATION: 
.#• 
Article 1 
A producer, as defined in Article 9(c) of Regulation (EEC) No 3950/92, who 
is the transferee of a non-marketing or conversion premium pursuant to 
Regulation (EEC) No 1078/77, shall receive a special reference quantity 
provided: 
- he establishes that he has taken over and observed the undertaking not to 
market milk or to convert dairy herds made by the transferror in respect 
of the acquired holding and received the balance of the premium; 
- the said undertaking expired after 31 December 1982, 
he is not eligible under Article 3a of Regulation (EEC) No 857/84 as a 
consequence of having received a reference quantity pursuant to Articles 
2 or 6 of that Regulation; 
he has not, on the date of the application referred to in Article 8, 
transferred all of the acquired holding. 
Article 2 
The special reference quantity shall be established by the Member State in 
accordance with objective criteria on the basis of the quantity in respect 
of which entitlement to the premium has been retained or acquired less a 
percentage representing all the reductions applied to the reference 
quantities fixed pursuant to Article 2 of Regulation (EEC) No 857/84, 
including in all cases a basic reduction of 4.5%, or to Article 6 of that 
Regulation. 
Where a producer has already obtained, on whatever grounds, a reference 
quantity in respect of the holding acquired, the special reference quantity 
referred to in the first paragraph shall be reduced by the same amount. 
- 4 -
Article 3 
The quantities required for the allocation of the special reference 
quantities shall be removed from the reserve referred to in Article 5 of 
Regulation (EEC) No 3950/92. 
Article 4 
The specific reference quantity may not be the subject of any programme to 
abandon milk production before 31 March 1996 or of any temporary transfer as 
referred to in Article 6 of Regulation (EEC) No 3950/92 before 31 March 
1997. 
Article 5 
Where the holding acquired or part thereof is sold or leased before 31 March 
1996, the corresponding special reference quantity shall revert to the 
national reserve referred to in Article 5 of Regulation (EEC) No 3950/92. 
Article 6 
A producer who has received a special reference quantity under this 
Regulation shall not be liable for the additional levy for the quantities 
produced before the tenth period of application of the scheme and which do 
not exceed the reference quantity he possesses already plus the said special 
reference quantity. 
Article 7 
The provisions of this Regulation shall apply equally if the holding 
concerned has been obtained by way of inheritance or analagous means. 
- s -
Article 8 
Producers shall submit an application for the allocation of a special 
reference quantity to the competent authority in the Member State before 1 
June 1993. 
Article 9 
Detailed rules for the application of this Regulation shall be adopted in 
accordance with the procedure laid down in Article 30 of Regulation (EEC) no 
804/68. 
Article 10 
This Regulation shall enter into force on the third day following its 
publication in the official Journal of the European Communities. 
This Regulation shall be binding in its entirety and directly applicable in 
mil Itesber States. 
at mtttli 
For the council 
Financial Statement 
Date 
1. BUDGET HEADING > B1-20 APPROPRIATIONS : 5.315 Mio ECU 
2. TITLE : 
Proposal for a Council Regulation allocating a special reference quantity to certain producers of milk 
and milk products 
3. LEGAL BASIS : Article 43 
4. AIMS 
The purpose of the measure is to draw the inferences from a judgment delivered by the Court of Justice 
on 3 December 1992 in which it declared invalid for the third time the Community provisions in favour 
of the producers known as the SLOM producers. 
5. FINANCIAL IMPLICATIONS 
5.0 EXPENDITURE 
- CHARGED TO THE EC BUDGET 
(REFUNDS/INTERVENTIONS) 
- NATIONAL AUTHORITIES 
- OTHER 
5.1 REVENUE 
- OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS DUTIES) 
- NATIONAL PERIOD OF 12 MONTHS 
(Mio ECU) CURRENT FINANCIAL YEAR 
(1993) (Mio ECU) FOLLOWING FINANCIAL YEAR 
(1994) (Mio ECU) 
1995 
5.0.1 ESTIMATED EXPENDITURE 
5.1.1 ESTIMATED REVENUE 1996 1997 1998 
5.2 METHOD OF CALCULATION 
6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET ? 
6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET ? 
6.2 WILL A SUPPLEMENTARY BUDGET BE NECESSARY ? 
6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY ? 
COMMENTS : 
As it concerns a measure which aims at-the allocation of special reference quantities for certain producers 
(SLOM producers), removed from the national reserves, thus avoiding an increase of the overall quota level, 
it has no financial implications for the budget. 
ISSN 0254-1475 
COM (93) 89 final 
DOCUMENTS 
EN 03 
Catalogue number : CB-CO-93-lîl-EN-C 
ISBN 92-77-53548-2 
Office for Official Publications of the European Communities