Council Regulation (EC) No 1788/2003 of 29 September 2003 establishing a levy in the milk and milk products sector
Date: 2003-09-29
Institutions: Council of the European Union
Subjects: agricultural quota, common agricultural policy, milk, milk product, regulation of agricultural production

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COUNCIL REGULATION (EC) No 1788/2003

of 29 September 2003

establishing a levy in the milk and milk products sector

THE COUNCIL OF THE EUROPEAN UNION,

(5)

Having regard to the Treaty establishing the European
Community, and in particular Article 37 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament (1),

Whereas:

(1)

(2)

(3)

(4)

Council Regulation (EEC) No 856/84 of 31 March 1984
amending Regulation (EEC) No 804/68 on the common
organisation of the market in milk and milk products (2)
introduced an additional
levy scheme in that sector
from 2 April 1984. The scheme has been extended
several times, in particular by Council Regulation (EEC)
No 3950/92 of 28 December 1992 establishing an
additional levy in the milk and milk products sector (3)
and most recently, until 31 March 2008, by Council
Regulation (EC) No 1256/1999 of 17 May 1999
amending Regulation (EEC) No 3950/92 establishing an
additional levy in the milk and milk products sector (4).

In order both to benefit from the lessons learned and to
simplify and clarify the scheme, Regulation (EEC) No
3950/92 should be repealed and the rules governing the
extended scheme should be reorganised and clarified.

The main purpose of
the scheme is to reduce the
imbalance between supply and demand on the milk and
milk products market and the
resulting structural
surpluses, thereby achieving better market equilibrium.
It should therefore continue to be applied for seven
further consecutive twelve-month periods starting on 1
April 2008. Those periods are to be added to the
periods already provided for in Regulation (EEC) No
3950/92.

The method adopted in 1984, which consists of
applying a levy to quantities of milk collected or sold
for direct consumption above a certain guarantee
threshold,
guarantee
threshold is fixed for each Member State as a guaranteed
total quantity for a reference milk-fat content.

be maintained. This

should

(1) Opinion delivered on 5 June 2003 (not yet published in the Official

Journal).

(2) OJ L 90, 1.4.1984, p. 10.
(3) OJ L 405, 31.12.1992, p. 1. Regulation as last amended by

Regulation (EC) No 2028/2002 (OJ L 313, 16.11.2002, p. 3).

(4) OJ L 160, 26.6.1999, p. 73.

The levy should be set at a dissuasive level and be
payable by the Member States as soon as the national
reference quantity is exceeded. The Member State should
then divide
among the
the burden of payment
producers who have contributed to the overrun. The
latter must be liable vis-à-vis the Member State for
payment of their contribution to the levy due for the
mere fact of having overrun their available quantity.

(6)

(7)

(8)

(9)

reference

Member States shall pay to the EAGGF, Guarantee
Section, the levy corresponding to the overrun of their
national
flat-rate
amount of 1 % in order to take account of cases of
certain
bankruptcy or
producers to make their contribution to the payment of
the levy due.

reduced by a

the definitive

inability of

amount,

the time limit set,

Member States should be allowed a certain amount of
time to allocate the levy to be paid among producers
and to pay it to the EAGGF Guarantee Section. If they
are unable to meet
it should be
ensured that
the amounts due are available in the
EAGGF Guarantee Section, by deducting them from the
monthly refunds made to Member States. This involves
derogating from the procedure laid down in Article 14
of Council Regulation (EC) No 2040/2000 of 26
September 2000 on budgetary discipline (5).

Regulation (EEC) No 3950/92 provided for a distinction
between deliveries and direct
sales. Experience has
shown that administration should be simplified by
restricting deliveries to whole milk and excluding all
other milk products. Consequently, direct sales must
henceforth include sales and direct transfers of milk to
consumers, as well as all sales and transfers of other
milk products.

reference quantity for deliveries
For each individual
there should be a matching representative fat
rate
established with reference to existing and modifiable
rates in accordance with rules to be defined. Rules
the difference
should be laid down to ensure that
between the weighted average of
individual
the
representative fat contents and the relevant national
reference fat content remains minimal.

(5) OJ L 244, 29.9.2000, p. 27.

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(10) A simplified procedure should be laid down to divide
the individual reference quantities between deliveries
and direct sales, with an obligation to provide the
Commission with the necessary information to make
that allocation and to calculate the levy. This allocation
should be based on the reference quantities held by
producers for the twelve-month period commencing on
1 April 2003. The sum of the quantities allocated to the
producers by the Member States may not exceed the
national
reference
reference quantities. The national
quantities are to be established for the eleven periods
from 1 April 2004 and to take account of the different
components of the previous scheme.

(15)

(16)

(11)

(12)

(13)

It is necessary to determine the way the fat content of
milk is to be taken into account when drawing up the
definitive statement of quantities delivered. It should be
stressed that under no circumstances may individual
downward corrections of the fat content of delivered
the separation of milk into its different
milk or
components
levy
payment of any quantity in excess of the guaranteed
total quantity in a Member State.
the
negligible quantities concerned, there is no need to take
account of fat content for direct sales.

in a deduction from the

In view of

result

In order to ensure that the scheme runs effectively, the
contribution to the levy due from the producers should
be collected by the purchasers, who are in the best
position to carry out
the necessary transactions and
who should therefore be given the means to ensure that
they can collect
this contribution. Conversely, any
amount collected which exceeds the levy due by the
Member State should be used to finance national
restructuring programmes and/or reimbursed to certain
categories of producers or
those in an exceptional
situation. However, where it is found that no levy is due
by the Member State, any advances collected should be
reimbursed.

Experience has shown that implementing this scheme
presupposes the existence of a national reserve enabling,
on the basis of objective criteria, producers to obtain
extra quantities or new producers to start up, and
replenished with any quantities which,
for whatever
reason, are not or no longer allocated individually. In
order to enable the Member State to respond to specific
situations, determined by objective criteria, it should be
authorised to make allocations to the national reserve
by across-the-board reductions in all reference quantities
or by deductions from definitive transfers of
these
quantities.

The under-use of reference quantities by producers can
prevent milk production from developing properly. In
order to avoid such problems, Member States should be
able to decide that, in cases of inactivity or substantial
under-use over a significant period of
time, unused
reference quantities are to revert to the national reserve
to be
re-allocated to other producers. However,
provision must be made for cases where producers who
are temporarily unable to produce wish to resume
production.

The temporary transfer of parts of individual reference
quantities in Member States which have authorised this
has proved to enhance the effectiveness of the scheme.
However, this mechanism should not be implemented
where it might run counter to structural trends and
adjustments, nor should any resulting administrative
difficulties be underrated, nor should former producers
who have given up production be allowed to keep their
quota beyond the time strictly needed for it
to be
transferred to an active producer.

(17) When the scheme was introduced in 1984, the principle
leased or
was established that when a farm is sold,
transferred by inheritance, the corresponding reference
quantity is transferred to the purchaser, tenant or heir
together with the relevant
It would not be
this original decision. However,
appropriate to alter
national provisions to safeguard the legitimate interests
of the parties should be implemented in all cases of
transfer where the parties are not in agreement.

land.

(18)

the

the

improve

to continue

should be made

environment,
to the principle

In order
restructuring of milk
production and
some
that
exceptions
reference quantities are tied to farms, and the Member
States should be authorised to keep open the option to
implement
restructuring
or
programmes. Member States should also be entitled to
organise the transfer of reference quantities in other
ways
transactions between
producers.

than through individual

national

regional

(19)

In line with the various types of transfer of reference
quantities and using objective criteria, Member States
should be authorised to place part of the transferred
quantities in the national reserve.

(14)

In order to ensure that administration of the scheme
remains sufficiently flexible, the Member States should
be authorised to reallocate unused reference quantities
the end of a period, either nationally or among
at
purchasers.

(20)

Experience with the additional levy scheme has shown
that the transfer of reference quantities through legal
constructions such as leases which do not necessarily
reference
lead to a permanent
quantities concerned to the transferee, can be an

allocation of

the

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the

effect of

regulatory

should be

additional cost factor for milk production hampering
the improvement of production structures. In order to
strengthen the
reference
quantities on the market for milk and milk products, the
States
Member
authorised to allocate
quantities which have been transferred
reference
through leases or comparable legal means
to the
re-distribution on the basis of
national
objective criteria to active producers,
in particular to
those who have used them before. Member States
should also have the right to organise the transfer of
reference quantities by means other than by individual
transactions between producers.

reserve for

(21)

(22)

(23)

to avoid increasing the cost of means of
In order
production or causing unequal treatment, it should be
stressed that all public
financial assistance during
acquisition or transfer of quotas is prohibited.

The main purpose of
the levy provided for in this
Regulation is to regularise and stabilise the market in
milk products. The revenue accruing from this levy
should therefore be used to finance expenditure in the
milk sector.

be

taken pursuant

this Regulation
The measures needed to implement
should
to Council Decision
1999/468/EC of 28 June 1999 laying down the
procedures for the exercise of
implementing powers
conferred on the Commission (1),

HAS ADOPTED THIS REGULATION:

CHAPTER 1

GENERAL PROVISIONS

Article 1

Scope

of

11

For

periods

twelve months
1.
consecutive
referred to as
commencing on 1 April 2004 (hereinafter
‘twelve-month
introduced
(hereinafter referred to as ‘the levy') on quantities of cow's milk
and other milk products marketed during the twelve-month
period concerned in excess of the national reference quantities
fixed in Annex I.

periods'),

hereby

levy

is

a

2.
These quantities shall be divided between producers in
accordance with Article 6, distinguishing between deliveries
and direct sales as defined in Article 5. Any overrun of the
national reference quantity and the resulting levy shall be
determined nationally in each Member State,
in accordance
with Chapter 3 and making a distinction between deliveries
and direct sales.

The national reference quantities in Annex I shall be
3.
fixed without prejudice to possible review in the light of the
general market situation and particular conditions existing in
certain Member States.

Article 2

Levy

The levy shall be set, per 100 kilograms of milk, at EUR 33,27
for the 2004/2005 period, EUR 30,91 for 2005/2006, EUR
the period
28,54 for 2006/2007 and EUR 27,83 for
2007/2008 and thereafter.

Article 3

Payment of the levy

1. Member States shall be liable to the Community for the
levy resulting from overruns of the national reference quantity
fixed in Annex I, determined nationally and separately for
deliveries and direct sales, and before 1 October following the
twelve-month period concerned, shall pay it, within the limit
of 99 % of the amount due,
into the European Agricultural
Guidance and Guarantee Fund (EAGGF).

2.
If the levy provided for in paragraph 1 has not been paid
before the due date and after consultation of the Committee of
the European Agricultural Guidance and Guarantee Fund, the
Commission shall deduct a sum equivalent to the unpaid levy
from the monthly advances on the provision for expenditure
effected by the Member State concerned within the meaning of
Article 5(1) and Article 7(2) of Council Regulation (EC) No
1258/1999 of 17 May 1999 on the financing of the common
agricultural
the
Commission shall warn the Member State concerned, which
shall make
its position known within one week. The
provisions of Article 14 of Regulation (EC) No 2040/2000
shall not apply.

policy (2).

decision,

Before

taking

its

The Commission shall determine the arrangements for
in accordance with the

3.
implementation of
procedure laid down in Article 23(2).

this Article

Article 4

Contribution of producers to the levy due

in accordance with the
The levy shall be entirely allocated,
provisions of Articles 10 and 12, among the producers who
have contributed to each of
the national
reference quantities referred to in Article 1(2).

the overruns of

(1) OJ L 184, 17.7.1999, p. 23.

(2) OJ L 160, 26.6.1999, p. 103.

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Without prejudice to Article 10(3) and Article 12(1), producers
shall be liable vis-à-vis the Member State for payment of their
contribution to the levy due, calculated in accordance with the
provisions of Chapter 3, for the mere fact of having overrun
their available reference quantities.

Article 5

Definitions

For the purposes of this Regulation:

(a)

‘milk' shall mean the produce of the milking of one or
more cows;

(b)

(c)

‘other milk products' means any milk product other than
milk, in particular skimmed milk, cream, butter, yoghurt
and cheese; when relevant, these shall be converted into
‘milk equivalents' by applying coefficients to be fixed in
accordance with the procedure provided for in Article
23(2);

‘producer' means farmers as defined in Article 2(a) of
Regulation (EC) No 1782/2003 establishing common rules
for direct support schemes under the common agricultural
policy and support
for producers of certain
crops (1), with a holding located within the geographical
territory of a Member State, who produce and market milk
or who are preparing to do so in the very near future;

schemes

that no quantity of milk or other marketed milk products
is excluded from the levy arrangements;

(h) ‘marketing' means deliveries of milk or direct sales of milk

or other milk products;

(i)

‘national reference quantity' means the reference quantity
fixed in Annex I for each Member State;

(j)

‘individual reference quantity' means a producer's reference
quantity at 1 April of any twelve-month period;

(k)

‘available reference quantity' means the reference quantity
available to producers on 31 March of the twelve-month
period for which the levy is calculated, taking account of
all
temporary
re-allocations provided for in this Regulation which have
taken place during that twelve-month period.

conversions

transfers,

sales,

and

(d)

‘holding' means holdings as defined in Article 2(b) of
Regulation (EC) No 1782/2003;

CHAPTER 2

(e)

‘purchaser' means undertakings or groups which buy milk
from producers:

— to subject it to collecting, packing, storing, chilling and

processing, including under contract,

— to sell

it

to one or more undertakings treating or

processing milk or other milk products.

in

of

the

any

group

purchasers

same
However,
geographical area which carries out the administrative and
accounting operations necessary for the payment of the
levy on behalf of
its members shall be regarded as a
purchaser. For the purposes of the first sentence of this
subparagraph, Greece
single
shall be
geographical area and it may deem an official body to be a
group of purchasers as referred to above;

considered

a

(f)

(g)

‘delivery' means any delivery of milk, not including any
other milk products, by a producer
to a purchaser,
whether the transport is carried out by the producer, a
purchaser, an undertaking processing or
treating such
products or a third party;

‘direct sale' means any sale or
transfer of milk by a
producer directly to consumers, as well as any sale or
transfer of other milk products by a producer. The
in accordance with the procedure
Commission may,
referred to in Article 23(2) and while respecting the
definition of ‘delivery' given in (f) of this Article, adjust the
definition of ‘direct sale' in order to ensure, in particular,

(1) See page 1 of this Official Journal.

ALLOCATION OF REFERENCE QUANTITIES

Article 6

Individual reference quantities

1.
Before 1 June 2004 the Member States shall establish the
producers' individual reference quantities on the basis of the
individual
allocated in
accordance with Article 4 of Regulation (EEC) No 3950/92
during the twelve-month period beginning on 1 April 2003.

quantity or quantities

reference

either one or

Producers may have

two individual
2.
reference quantities, one for deliveries and the other for sales.
A producer's quantities may be converted from one reference
quantity to the other only by the competent authority of the
Member State, at the duly justified request of the producer.

3. Where a producer has two reference quantities, his
contribution to any levy due shall be calculated separately for
each one.

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The part of

reference quantity
the Finnish national
4.
allocated to the deliveries referred to in Article 1 may be
increased in accordance with the procedure laid down in
Article 23(2) to compensate Finnish SLOM producers up to
200 000 tonnes. This reserve, to be allocated in accordance
with Community legislation, must be used exclusively on
behalf of producers whose right to take up production again
has been affected as a result of accession.

Individual reference quantities shall be modified, where
5.
appropriate, for each of the twelve-month periods concerned,
so that, for each Member State, the sum of the individual
reference quantities for the deliveries and that for the direct
sales does not exceed the corresponding part of the national
reference quantity adapted in accordance with Article 8, taking
account of any reductions made for allocation to the national
reserve as provided for in Article 14.

Article 7

Allocation of quantities from the national reserve

The Member States shall adopt rules allowing for allocation to
producers of all or part of the quantities from the national
reserve provided for in Article 14 on the basis of objective
criteria to be notified to the Commission.

CHAPTER 3

CALCULATION OF THE LEVY

Article 8

Management of reference quantities

1.
In accordance with the procedure provided for in Article
23(2), the Commission shall adapt, for each Member State and
for each period, before the end of that period, the division
between ‘deliveries' and ‘direct sales' of national reference
requested by
quantities,
producers, between individual reference quantities for deliveries
and for sales.

in the light of

the conversions

shall

States

2. Member
to the
Commission, by dates and according to rules to be fixed in
accordance with the procedure provided for in Article 23(2),
the information necessary to:

each year

forward

Article 9

Fat content

1.
Each producer shall be assigned a reference fat content,
to be applied to the individual reference quantity or quantities
allocated to that producer.

For the reference quantities allocated to producers on 31
2.
March 2004 in accordance with Article 6(1),
the content
referred to in paragraph 1 of this Article shall be the same as
the reference fat content of that quantity at that date.

3.
That content shall be altered during the conversion
referred to in Article 6(2) and where reference quantities are
acquired or transferred, under the rules to be laid down in
accordance with the procedure referred to in Article 23(2).

For new producers having an individual

4.
reference
quantity for the total deliveries from the national reserve, the
fat content shall be fixed in accordance with the rules referred
to in Article 23(2).

The individual

reference fat content

5.
referred to in
paragraph 1 shall be adjusted, where appropriate, upon the
entry into force of
the
beginning of each twelve-month period as necessary, so that,
for each Member State, the weighted average of the individual
representative fat contents does not exceed by more than 0,1
gram per kg the reference fat content set in Annex II.

this Regulation and thereafter, at

Article 10

Levy on deliveries

1.
In order to draw up the definitive levy statement, the
quantities delivered by each producer shall be increased or
reduced to reflect any difference between the real fat content
and the reference fat content, using coefficients and on terms
to be laid down in accordance with Article 23(2).

2. Where, at national level, the sum of deliveries adjusted in
accordance with paragraph 1 is less than the deliveries actually
made, the levy shall be calculated on the basis of the latter. In
such
be
proportionately reduced so as to bring the sum of adjusted
deliveries into line with the deliveries actually made.

adjustment

downward

cases,

shall

each

Where the sum of the deliveries adjusted in accordance with
paragraph 1 is greater than the deliveries actually made, the
levy shall be calculated on the basis of the former.

(a) make the adaptation referred to in paragraph 1;

(b) calculate the levy to be paid by them.

3.
be established by decision of

Each producer's contribution to payment of the levy shall
the Member State, after any

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unused part of the national reference quantity allocated to
in proportion to
deliveries has or has not been re-allocated,
the
each producer or
according to objective criteria to be set by the Member States:

reference quantities of

individual

(a) either at national

which each producer's
exceeded,

level on the basis of the amount by
reference quantity has been

(b) or firstly at the level of the purchaser and thereafter at

national level where appropriate.

Article 11

Role of purchasers

for

shall be

Purchasers

responsible

1.
collecting from
producers contributions due from the latter by virtue of the
levy and shall pay to the competent body of the Member State,
before a date and following a procedure to be laid down in
accordance with Article 23(2),
these
contributions deducted from the price of the milk paid to the
producers responsible for the overrun or, failing this, collected
by any other appropriate means.

amount of

the

the individual

2. Where a purchaser fully or partially replaces one or
more other purchasers,
reference quantities
available to the producers shall be taken into account for the
remainder of
the twelve-month period in progress, after
deduction of quantities already delivered and account being
taken of their fat content. The same provisions shall apply
where a producer transfers from one purchaser to another.

the relevant Member State may decide that

3. Where, during the reference period, quantities delivered
by a producer exceed that producer's available reference
quantity,
the
purchaser shall deduct part of the price of the milk in any
delivery by the producer concerned in excess of the reference
quantity, by way of an advance on the producer's contribution,
in accordance with detailed rules laid down by the Member
State. The Member State may make specific arrangements to
enable purchasers to deduct
this advance where producers
deliver to several purchasers.

2. Member States shall establish the basis of calculation of
the producer's contribution to the levy due on the total
quantity of milk sold, transferred or used to manufacture the
milk products sold or transferred by applying criteria fixed in
accordance with the procedure laid down in Article 23(2).

No correction linked to fat content shall be taken into
for the purpose of drawing up the definitive levy

3.
account
statement.

4.
How and when the levy must be paid to the Member
State's competent body shall be determined in accordance with
the procedure laid down in Article 23(2).

CHAPTER 4

ADMINISTERING THE LEVY

Article 13

Amounts paid in excess or unpaid

1. Where, in the case of deliveries or direct sales, the levy is
found to be payable and the contribution collected from
producers is greater than that levy, the Member State may:

(a) use partially or totally the excess to finance the measures

referred to in Article 18(1)(a), and/or

(b) redistribute it partially or totally to producers who fall
within priority categories established by the Member State
on the basis of objective criteria and within the period to
be laid down in accordance with the procedure laid down
in Article 23(2) or who are affected by an exceptional
situation resulting from a national rule unconnected with
the present scheme.

2. Where it
is established that no levy is payable, any
advances collected by purchasers or the Member State shall be
following
than the
reimbursed no later
twelve-month period.

end of

the

Article 12

Levy on direct sales

In the case of direct sales, each producer's contribution to
1.
payment of the levy shall be established by decision of the
Member State, after any unused part of the national reference
quantity allocated to direct
sales has or has not been
re-allocated, at the appropriate territorial level or at national
level.

the obligation to
3. Where a purchaser does not meet
collect the producers' contribution to the levy in accordance
with Article 11, the Member State may collect unpaid amounts
directly from the producer, without prejudice to any penalties
it may impose upon the defaulting purchaser.

4. Where a producer or a purchaser fails to comply with
the time limit for payment, interest on arrears to be fixed in
accordance with the procedure laid down in Article 23(2) shall
be paid to the Member State.

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Article 14

National reserve

Article 16

Temporary transfers

1.
Each Member State shall set up a national reserve as part
of the quantities fixed in Annex I, in particular with a view to
making the allocations provided for in Article 7. The national
reserve shall be replenished, as appropriate, by taking back
some quantities as provided for in Article 15, retaining part of
transfers as provided for in Article 19, or by making an
across-the-board reduction in all individual reference quantities.
The quantities in question shall retain their original purpose,
i.e. deliveries or direct sales.

2.
Any additional reference quantity allocated to a Member
State shall automatically be placed in the national reserve and
divided into deliveries and direct sales according to foreseeable
needs.

The quantities placed in the national reserve shall not

3.
have a reference fat content.

Article 15

Cases of inactivity

1. When a natural or
legal person holding individual
reference quantities no longer meets the conditions referred to
in Article 5(c) during a twelve-month period, these quantities
shall revert to the national reserve no later than 1 April of the
following calendar year, except where he once again becomes a
producer as defined in Article 5(c) no later than that date.

Where the person or entity concerned once again becomes a
producer no later than the end of the second twelve-month
period following withdrawal, all or part of
the individual
reference quantity which had been withdrawn from that
person or entity shall revert to him or it no later than 1 April
following the date of application.

2. Where producers do not market a quantity equal to at
least 70 % of their individual reference quantity during at least
one twelve-month period, Member States may decide whether
and on what conditions all or part of the unused reference
quantity shall revert to the national reserve.

Member States may determine on what conditions a reference
quantity shall be re-allocated to the producer concerned should
he resume marketing.

3.
However, paragraphs 1 and 2 shall not apply in cases of
force majeure and in duly justified cases temporarily affecting
the producers concerned and
the production capacity of
recognised by the competent authority.

By the end of each twelve-month period, Member States
1.
shall authorise,
the period concerned, any temporary
transfers of part of individual reference quantities which the
producers who are entitled thereto do not intend to use.

for

Member States may regulate transfer operations according to
the categories of producers or milk production structures
concerned, may limit them to the level of the purchaser or
within regions, authorise complete transfers
in the cases
provided for in Article 15(3) and determine to what extent the
transferor can repeat transfer operations.

Any Member State may decide not

2.
to implement
paragraph 1 on the basis of one or both of the following
criteria:

(a)

the need to facilitate structural changes and adjustments,

(b) overriding administrative needs.

Article 17

Transfers of reference quantities together with land

The individual reference quantities shall be transferred
1.
with the holding to the producers taking it over when it is
sold, leased, transferred by actual or anticipated inheritance or
any other means involving comparable legal effects for the
producers, in accordance with detailed rules to be determined
by the Member States, taking account of the areas used for
dairy production or other objective
criteria and, where
applicable, of any agreement between the parties. The part of
the reference quantity which, where applicable, has not been
transferred with the holding shall be added to the national
reserve.

2. Where reference quantities have been or are transferred
in accordance with paragraph 1 by means of rural leases or by
other means involving comparable legal effects, Member States
may decide, on the basis of objective criteria and with the aim
of ensuring that reference quantities are solely attributed to
producers, that the reference quantity shall not be transferred
with the holding.

3. Where land is transferred to the public authorities and/or
for use in the public interest, or where the transfer is carried
out for non-agricultural purposes, Member States shall ensure
that the necessary measures are taken to protect the legitimate
interests of the parties, and in particular that producers giving
up such land are in a position to continue milk production if
they so wish.

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terms, or

4. Where there is no agreement between the parties, in the
tenancies due to expire without any possibility of
case of
renewal on similar
involving
comparable legal effects, the individual reference quantities in
question shall be transferred in whole or
to the
in accordance with provisions
producer taking them over,
adopted or
taking
account of the legitimate interests of the parties.

to be adopted by the Member States,

in situations

in part

The provisions of paragraph 1 may be implemented at
2.
national level, at the appropriate territorial level or in specified
collection areas.

Article 19

Retaining part of transfers

Article 18

Special transfer measures

1.
In the case of transfers as referred to in Articles 17 and
18 Member States may, on the basis of objective criteria, retain
part of
the individual reference quantity for their national
reserve.

improving the

1. With a view to successfully restructuring milk production
in
or
accordance with detailed rules which they shall
lay down
taking account of
the parties
concerned:

environment, Member States may,

the legitimate interests of

(a) grant compensation in one or more annual instalments to
producers who undertake to abandon permanently all or
part of
their milk production and place the individual
reference quantities thus released in the national reserve;

(b) determine on the basis of objective criteria the conditions
on which producers may obtain, in return for payment, at
the beginning of a twelve-month period, the re-allocation
by the competent authority or a body designated by that
authority of
released
quantities
definitively at
the preceding twelve-month
period by other producers in return for compensation in
the
annual
one
abovementioned payment;

individual
the end of

instalments

or more

reference

equal

to

(c) centralise and supervise transfers of reference quantities

without land;

(d) provide,

in the case of

land transferred with a view to
improving the environment, for the individual reference
quantity concerned to be allocated to a producer giving up
the land but wishing to continue milk production;

(e) determine, on the basis of objective criteria, the regions or
collection areas within which the permanent transfer of
reference quantities without transfer of the corresponding
land is authorised, with the aim of improving the structure
of milk production;

(f) authorise, upon application by

authority or

to the
a producer
a body designated by that
competent
authority,
the definitive transfer of reference quantities
without transfer of the corresponding land, or vice versa,
with the
structure of milk
improving the
production at the level of the holding or to allow for
extensification of production.

aim of

2. Where reference quantities have been or are transferred
in accordance with Articles 17 and 18 with or without the
corresponding land by means of rural leases or by other means
involving comparable legal effects, Member States may decide,
on the basis of objective criteria and with the aim of ensuring
that reference quantities are solely attributed to producers,
whether and under which conditions all or part of
the
to the national
transferred reference quantity shall
reserve.

revert

Article 20

Aid for the acquisition of reference quantities

No financial assistance linked directly to the acquisition of
quotas may be granted by any public authority for the sale,
transfer or allocation of
this
Regulation.

reference quantities under

Article 21

Approval

Purchaser status shall be subject
to prior approval by the
Member State in accordance with criteria to be laid down in
accordance with Article 23(2).

Conditions to be fulfilled and information to be provided by
producers
shall be fixed in
in the case of direct
accordance with the procedure in Article 23(2).

sales

CHAPTER 5

TRANSITIONAL AND FINAL PROVISIONS

Article 22

Application of the levy

The levy shall be considered as
agricultural markets
expenditure in the milk sector.

and shall be

intervention to stabilise
applied to financing

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Article 23

Management Committee

Article 25

Repeal

1.
The Commission shall be assisted by the Management
Committee for Milk and Milk Products set up by Article 41 of
Council Regulation (EC) No 1255/1999 of 17 May 1999 on
the common organisation of the market in milk and milk
products (1), hereinafter referred to as ‘Committee'.

2. Where reference is made to this paragraph, Articles 4
and 7 of Decision 1999/468/EC shall apply.

The period provided for
1999/468/EC shall be one month.

in Article 4(3) of Decision

3.

The Committee shall adopt its Rules of Procedure.

Regulation (EEC) No 3950/92 is hereby repealed as from 1
April 2004.

References to the repealed Regulation shall be construed as
references to this Regulation and should be read in accordance
with the correlation table in Annex III.

Article 26

Transitional measures

transitional measures

Any
the
implementation of the changes to the scheme provided for in
this Regulation shall be adopted in accordance with the
procedure laid down in Article 23(2).

necessary

facilitate

to

Article 24

Implementation measures

Article 27

Entry into force

This Regulation shall enter
into force on the third day
following its publication in the Official Journal of the European
Union.

The measures necessary for implementation of this Regulation
shall be adopted in accordance with the procedure laid down
in Article 23(2).

It shall apply from 1 April 2004, with the exception of
Articles 6 and 24, which shall apply from the date of entry
into force of this Regulation.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 29 September 2003.

For the Council

The President

G. ALEMANNO

(1) OJ L 160, 26.6.1999, p. 48.

L 270/132

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ANNEX I

REFERENCE QUANTITIES

(a) Period 2004/2005

(c) Period 2006/2007

Member State

Quantities, tonnes

Member State

Quantities, tonnes

Belgium

Denmark

Germany

Greece

Spain

France

Ireland

Italy

Luxembourg

Netherlands

Austria

Portugal

Finland

Sweden

3 310 431,000

4 455 348,000

27 864 816,000

820 513,000

6 116 950,000

24 235 798,000

5 395 764,000

10 530 060,000

269 049,000

11 074 692,000

2 749 401,000

1 870 461,000

2 407 003,324

3 303 000,000

Belgium

Denmark

Germany

Greece

Spain

France

Ireland

Italy

Luxembourg

Netherlands

Austria

Portugal

Finland

Sweden

3 326 983,000

4 477 624,000

28 004 140,000

820 513,000

6 116 950,000

24 356 977,000

5 395 764,000

10 530 060,000

270 394,000

11 130 066,000

2 763 148,000

1 929 824,000

2 419 025,324

3 319 515,000

United Kingdom

14 609 747,000

United Kingdom

14 682 697,000

(b) Period 2005/2006

(d) Period 2007/2008

Member State

Quantities, tonnes

Member State

Quantities, tonnes

Belgium

Denmark

Germany

Greece

Spain

France

Ireland

Italy

Luxembourg

Netherlands

Austria

Portugal (*)

Finland

Sweden

3 310 431,000

4 455 348,000

27 864 816,000

820 513,000

6 116 950,000

24 235 798,000

5 395 764,000

10 530 060,000

269 049,000

11 074 692,000

2 749 401,000

1 920 461,000

2 407 003,324

3 303 000,000

Belgium

Denmark

Germany

Greece

Spain

France

Ireland

Italy

Luxembourg

Netherlands

Austria

Portugal

Finland

Sweden

United Kingdom

14 609 747,000

United Kingdom

(*) Special

increase of 50 000 tonnes

for

exclusive

allocation to producers in the Azores

3 343 535,000

4 499 900,000

28 143 464,000

820 513,000

6 116 950,000

24 478 156,000

5 395 764,000

10 530 060,000

271 739,000

11 185 440,000

2 776 895,000

1 939 187,000

2 431 047,324

3 336 030,000

14 755 647,000

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(e) Periods 2008/2009 to 2014/2015

Member State

Quantities, tonnes

Belgium

Denmark

Germany

Greece

Spain

France

Ireland

Italy

Luxembourg

Netherlands

Austria

Portugal

Finland

Sweden

United Kingdom

3 360 087,000

4 522 176,000

28 282 788,000

820 513,000

6 116 950,000

24 599 335,000

5 395 764,000

10 530 060,000

273 084,000

11 240 814,000

2 790 642,000

1 948 550,000

2 443 069,324

3 352 545,000

14 828 597,000

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ANNEX II

REFERENCE FAT CONTENT

Member State

Reference fat content
(g/kg)

Belgium

Denmark

Germany

Greece

Spain

France

Ireland

Italy

Luxembourg

Netherlands

Austria

Portugal

Finland

Sweden

United Kingdom

36,91

43,68

40,11

36,10

36,37

39,48

35,81

36,88

39,17

42,36

40,30

37,30

43,40

43,40

39,70

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ANNEX III

CORRELATION TABLE

Present Regulation

Regulation (EEC) 3950/92

Article 1 (1)

Article 1, first subparagraph

(2)

(3)

Article 2

Article 3

Article 4

Article 5

Article 6 (1), (2) and (3)

(4)

(5)

Article 7

Article 8

Article 9

Article 10 (1) and (2)

(3)

Article 11 (1)

(2)

(3)

Article 12 (1)

(2) and (3)

(4)

Article 13 (1)

(2), (3), (4)

Article 14 (1)

—

Article 3(2)

Article 1, second subparagraph

—

Article 2(1), first subparagraph

Article 9

—

Article 3(2)

Article 4(2)

—

—

—

—

Article 2(1), second subparagraph

Article 2(2), first subparagraph

Article 2(2), second subparagraph

Article 2(2), third subparagraph

Article 2(1)

—

Article 2(3)

Article 2(4)

—

Article 5, first subparagraph

(2) and (3)

—

Article 15

Article 16

Article 17 (1)

(2)

(3) and (4)

Article 18

Article 19 (1)

(2)

Article 5, second and third subparagraphs

Article 6

Article 7(1)

Art 8a (b)

Article 7(1), third subparagraph and (3)

Article 8

Article 7(1), second subparagraph

Article 8a (a)

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Present Regulation

Regulation (EEC) 3950/92

Article 20

Article 21

Article 22

Article 23 (1)

—

—

Article 10

Article 11, first subparagraph

(2) and (3)

—

Article 11, first subparagraph

Article 12

Annex

—

—

Article 24

Article 25

Annex I

Annex II

Annex III