Commission Regulation (EC) No 595/2004 of 30 March 2004 laying down detailed rules for applying Council Regulation (EC) No 1788/2003 establishing a levy in the milk and milk products sector
Date: 2004-03-30
Institutions: European Commission
Subjects: agricultural levy, marketing, milk, regulation of agricultural production

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COMMISSION REGULATION (EC) No 595/2004

of 30 March 2004

laying down detailed rules for applying Council Regulation (EC) No 1788/2003 establishing a levy
in the milk and milk products sector

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European
Community,

Having regard to Council Regulation (EC) No 1788/2003 of 29
September 2003 establishing a levy in the milk and milk
products sector (1), and in particular Article 24 thereof,

Whereas:

(1)

(2)

(3)

(4)

The scheme for a levy in the milk and milk products
sector has been extended in accordance with Regulation
(EC) No 1788/2003 for a further 11 consecutive 12-
month periods from 1 April 2004. Detailed rules should
be laid down to take account of the new provisions of
that Regulation. Those detailed rules should also incor-
porate,
to a great extent, provisions of Commission
Regulation (EC) No 1392/2001 of 9 July 2001 laying
down detailed rules for applying Council Regulation
levy on
(EEC) No 3950/92 establishing an additional
milk and milk products (2). Regulation (EC) No 1392/
2001 should therefore be repealed.

Rules should be laid down making it possible to divide
the national quantities between deliveries and direct sales
for each Member State. To that end, the new definitions
of ‘deliveries’ and ‘direct sales’ in Article 5(f) and (g) of
Regulation (EC) No 1788/2003 should be taken into
consideration by the Member States, which should
inform the producers affected by those new definitions.

This Regulation should also specify the additional factors
necessary for the final calculation of the levy payable for
deliveries and that
the measures to
for direct sales,
ensure payment of the levy in good time by the Member
State to the European Agricultural Guidance and Guar-
antee Fund (EAGGF) Guarantee Section, and lastly, the
rules on checks to ensure that contributions to the
payment of the levy have been correctly collected.

The way the fat content of milk is to be taken into
account when drawing up the definitive statement of
quantities delivered should be specified. Special provi-
sions are needed to cover cases where the reference
quantity for deliveries is amended or where reference
quantities are allocated from the national reserve.

(5)

(6)

(7)

(8)

As Regulation (EC) No 1788/2003 has fixed the refer-
ence fat content rates for each Member State, rules for
adjusting the individual reference rates whenever neces-
sary should be laid down.

It is vital, on the one hand, to check that the data
communicated by purchasers and producers are accurate
and, on the other hand, to ensure that the burden of the
levy actually falls on the producers responsible for the
overrun of the national reference quantities. To that end,
Member States should play a greater role in the controls
and penalties they are required to introduce to ensure
that contributions to the payment of
the levy are
collected correctly. In particular, Member States should
draw up a national control plan for each 12-month
period on the basis of risk analysis and should carry out
controls at farm level, at transport level and at purchaser
level with the aim to combat possible irregularities and
frauds. It is also necessary to specify the deadlines and
number of checks needed to allow verification within a
given time limit
the arrangements have been
complied with by all the parties involved. Penalties are
also needed where those basic requirements are not met.

that

It is also necessary for Member States to approve the
purchasers operating in their territory and for detailed
rules to be laid down for cases where purchasers fail to
comply with this Regulation.

Communications to the Commission play an important
part in the administration of the scheme and should
therefore be increased. In particular, communications on
the division between deliveries and direct sales and
replies to an annual questionnaire are essential for the
Commission's administration of the scheme. Compliance
with the dates laid down is also a factor promoting its
is also appropriate for the
effective management.
Commission to be informed in detail of implementation
at national level so as to have a better knowledge of the
various systems used in the Member States.

It

(9)

This Regulation should apply from the same date as
Regulation (EC) No 1788/2003.

(1) OJ L 270, 21.10.2003, p. 123.
(2) OJ L 187, 10.7.2001, p. 19.

(10)

The measures provided for in this Regulation are in
the Management
accordance with the opinion of
Committee for Milk and Milk Products,

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HAS ADOPTED THIS REGULATION:

Article 5

CHAPTER I

GENERAL PROVISIONS

Article 1

Scope

Communication of individual reference quantities

Member States shall notify to the producers each new alloca-
tion or modification of their individual reference quantity by
the means they consider the most appropriate, provided that it
ensures that the producers have an effective knowledge of the
reference quantity allocated.

This Regulation lays down detailed rules for applying Regu-
lation (EC) No 1788/2003 as regards the division of national
the
reference quantities between deliveries and direct sales,
calculation and payment of the levy, control measures and
communications from the Member States.

Article 2

Division of national reference quantities between deliv-
eries and direct sales

Each year, after the receipt of the communications referred to
in Article 21, the Commission shall divide the national refer-
ence quantity laid down for each Member State in Annex I of
Regulation (EC) No 1788/2003 between deliveries and direct
sales in accordance with Article 1(2) of that Regulation.

The division shall be published in the Official Journal of the Euro-
pean Union.

Article 3

Conversions

CHAPTER II

CALCULATION OF THE LEVY

SECTION 1

GENERAL RULES

Article 6

Method for the calculation of the levy

Milk or milk products marketed within the meaning of Article
5(h) of Regulation (EC) No 1788/2003 shall be taken into
account for calculating the levy at the moment they leave any
holding on the territory of the Member State or are used at the
holding for commercial purposes.

Where milk or milk products leave the holding for the purpose
of destruction in application of sanitary measures pursuant to a
decision of the competent authority of the Member State, the
quantities concerned shall not be taken into account as deliv-
eries or direct sales.

Conversions referred to in Article 6(2) of Regulation (EC) No
1788/2003 may be temporary or definitive.

Milk which leaves the holding for treatment or processing
under contract shall be deemed deliveries.

Temporary conversions of individual reference quantities are
conversions where,
the
producer requests to convert a quantity of milk from one refer-
ence quantity to the other.

for a specific 12-month period,

Article 7

Amendments to the individual reference fat content

Definitive conversions are conversions where, for a 12-month
period and for the subsequent 12-month periods, the producer
requests to convert a quantity of milk from one reference quan-
tity to the other.

1. Where additional reference quantities are allocated from
the national reserve, the reference fat content referred to in
Article 9 of Regulation (EC) No 1788/2003 shall remain
unchanged.

Article 4

Information about new definitions of deliveries and direct
sales

2. Where the reference quantity for deliveries is increased or
established on the basis of conversions under Article 6(2) of
Regulation No 1788/2003, the reference fat content associated
with the reference quantity converted into deliveries shall be
3,8 %.

1. Member States shall inform the producers concerned of
the new definitions of the terms ‘deliveries’ and ‘direct sales’ as
introduced by Article 5(f) and (g) of Regulation (EC) No 1788/
2003.

However, the reference fat content of the reference quantity for
the producer provides
deliveries shall remain unchanged if
justification therefore to the satisfaction of
the competent
authority.

2.
A definitive conversion from one reference quantity to
the other by reason of the definitions referred to in paragraph
1 shall be done on the request of the producer in accordance
with Article 6(2) of Regulation No 1788/2003.

3.
In cases referred to in Articles 16, 17 and 18(1)(d), (e)
and (f) of Regulation (EC) No 1788/2003, the reference fat
content shall be transferred together with the reference quantity
with which it is associated.

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In cases referred to in Article 18(1)(b) and (c) of Regu-
4.
lation (EC) No 1788/2003, the overall reference fat content of
the reference quantities allocated or transferred shall not be
increased in relation to that of the quantities released. Without
prejudice to Article 6(5) of Regulation No 1788/2003, the
quantity of milk available for reallocation or transfer may be
recalculated at a given reference fat content or, conversely, the
reference fat content may be recalculated at a given available
quantity of milk.

5.
In the cases referred to in the first subparagraph of para-
graph 2 and in paragraphs 3 and 4, the resulting reference fat
content shall be equal to the average of the initial and trans-
ferred or converted reference rates, weighted by the initial and
transferred or converted reference quantities.

6.
In the case of producers whose entire reference quantity
comes from the national reserve and who commenced produc-
tion after 1 April 2004, the reference fat content shall be equal
to the national reference fat content laid down in Annex II to
Regulation (EC) No 1788/2003.

SECTION 2

DELIVERIES

Article 8

Statement of deliveries

1.
At the end of each 12-month period, purchasers shall
draw up a statement for each producer showing at least the
quantity and fat content of the milk delivered by the latter
during that period.

In the case of leap years, the quantity of milk shall be reduced
by 1/60 of the quantities delivered in February and March.

Before 15 May each year, purchasers shall forward to the
2.
the Member State a declaration
competent authority of
summarising the statements
referred to in paragraph 1,
showing at least the total quantity and the average fat content
of the milk delivered to them and, where so required by deci-
sion of the Member State, for each producer, the reference
quantity and the representative fat content,
the quantity
corrected in accordance with Article 10(1), the sum of the indi-
vidual reference quantities and the corrected quantities and the
average fat content of those producers' production.

quantities of milk delivered to them by producers for each
calendar day of delay. Where those quantities are not known
because no declaration has been made, they shall be estimated
by the competent authority. That amount may not be less than
EUR 100 nor more than EUR 100 000.

4. Where no declaration is submitted before 1 July, Member
States shall either withdraw approval or require payment of an
amount in proportion to the volume of milk involved and the
seriousness of the irregularity.

The first subparagraph shall apply 30 days after the Member
State has served notice.

Paragraph 3 shall continue to apply during the period of
notice.

5.
The penalties referred to in paragraphs 3 and 4 shall not
be imposed where the Member State recognises a case of force
majeure or establishes that the irregularity was not committed
deliberately or as a result of serious negligence, or where the
irregularity is negligible in terms of the functioning of the
scheme or the effectiveness of the checks.

Article 9

Adjustment of individual reference fat content

For the application of Article 9(5) of Regulation (EC) No
1.
1788/2003, Member States shall record before 1 July each year
of any overrun of the national reference fat content for the 12-
month period ending 31 March of that year.

2.
The individual reference fat content shall be adjusted by
the same coefficient for all producers 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 to Regulation (EC) No
1788/2003. The adjustment shall be notified to producers
before 1 August and shall apply from the 12-month period
starting 1 April of that year.

Article 10

Comparisons of the reference and real fat content

Where applicable, purchasers shall declare that
received no deliveries during the period concerned.

they have

3.
The Member State shall require purchasers who fail to
comply with the time limit referred to in paragraph 2 to pay
an amount equal to the levy due for a 0,01 % overrun of the

1.
In order to enable each producer to draw up the state-
ment referred to in Article 8(1) of this Regulation and pursuant
to Article 10(1) of Regulation (EC) No 1788/2003, the average
fat content of the milk delivered by the producer shall be
compared with the producer's reference fat content referred to
in Article 9(1) of that Regulation.

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If a positive difference is found, the quantity of milk delivered
shall be increased by 0,18 % per 0,1 gram of additional fat per
kilogram of milk.

If a negative difference is found, the quantity of milk delivered
shall be decreased by 0,18 % per 0,1 gram of fat less per kilo-
gram of milk.

Where the quantity of milk delivered is expressed in litres, the
0,18 % adjustment per 0,1 gram of fat content shall be multi-
plied by the coefficient 0,971.

2.
The Member States shall establish the adjustment of deliv-
eries at national level in accordance with Article 10(2) of Regu-
lation (EC) No 1788/2003.

4. Where no declaration is submitted before 1 July, the
reference quantity for direct sales of the producer concerned
shall revert to the national reserve 30 days after the Member
State has served notice. The first subparagraph of paragraph 3
of this Article shall continue to apply during the period of
notice.

5.
Penalties referred to in paragraphs 3 and 4 shall not be
imposed where the Member State recognises a case of force
majeure or establishes that the irregularity was not committed
deliberately or as a result of serious negligence, or where the
irregularity is negligible in terms of the functioning of the
scheme or the effectiveness of the checks.

SECTION 3

DIRECT SALES

Article 11

Article 12

Equivalences

For products marketed other than milk,

1.
the Member
States shall establish the quantities of milk used for processing.
To that end, the equivalence formulae to be used shall be:

(a) 1 kg cream = 0,263 kg milk × % fat content of cream,

Declarations of direct sales

expressed as mass;

1.
At the end of each 12-month period, each producer shall
make a declaration summarising by product any of his direct
sales.

In the case of leap years, the quantity of milk or milk equiva-
lent shall be reduced by 1/60 of the quantities sold in February
and March or by 1/366 of the quantities sold in the 12-month
period concerned.

2.
Before 15 May each year, producers shall forward the
declaration provided for in paragraph 1 to the competent
authority of the Member State.

The Member State may require producers with reference quan-
tities for direct sales to declare that they have not sold or trans-
ferred any milk or other milk products during the period
concerned, where such is the case.

3. Member States shall require producers who fail to comply
with the time limit referred to in paragraph 2 to pay an
amount equal to the levy due for a 0,01 % overrun of their
reference quantity for direct sales for each calendar day of
delay. However, that amount may not be less than EUR 100
nor more than EUR 1 000.

Where the national reference quantity for direct sales has also
been overrun, producers who have overrun their reference
quantity shall also be required to pay a contribution to the levy
calculated on the full overrun of their reference quantity and
may not benefit from any reallocation of unused reference
quantities as provided for in Article 12(1) of Regulation (EC)
No 1788/2003.

Where producers submit incorrect declarations, the Member
State shall require them to pay an amount in proportion to the
quantity of milk concerned and the seriousness of the irregu-
larity, up to a maximum amount equal to the theoretical levy
applicable to the quantity of milk resulting once the correction
is applied, multiplied by 1,5.

(b) 1 kg butter = 22,5 kg milk.

In the case of cheese and all other milk products, Member
States shall determine equivalences using, in particular, the dry-
matter content and the fat content of the types of cheese or
products concerned.

If the producer can provide proof to the satisfaction of the
competent authority of the quantities actually used for proces-
sing of the products concerned, the Member State can use such
proof in place of the equivalences referred to in the first and
second subparagraphs.

2.
If it proves difficult to determine the quantities of milk
used for processing on the basis of the products marketed, the
Member States may fix the quantities of milk equivalent on a
flat-rate basis by reference to the number of dairy cows held by
the producer and an average milk yield per cow representative
of the herd.

CHAPTER III

PAYMENT OF THE LEVY

Article 13

Notification of the levy

In the case of deliveries, the competent authority shall
1.
notify or confirm to purchasers the contributions to the levy
payable by them after reallocating, or not, by decision of the
Member State, all or part of the unused reference quantities
either directly to the producers concerned or, as the case may
be, to purchasers with a view to their subsequent allocation
among the producers concerned.

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In the case of direct sales, the competent authority shall
2.
notify to producers the contributions to the levy payable by
them after reallocating, or not, by decision of the Member
State, all or part of the unused reference quantities directly to
the producers concerned.

3.
No reallocation shall be made at national level of unused
quantities between delivery and direct sales reference quantities.

Article 14

Exchange rates

The operative event for the conversion rate for the payment of
the levy for a given period shall be 31 March of the period
concerned.

Article 15

Time limit for payment

1.
Before 1 September each year, purchasers and, in the case
of direct sales, producers liable for the levy shall pay the
competent authority the amount due in accordance with rules
laid down by the Member State.

2. Where the time limit for payment referred to in para-
graph 1 is not complied with, the sums due shall bear interest
annually at the three-month reference rates applicable on 1
September each year, as referred to in Annex II, plus one
percentage point.

The interest shall be paid to the Member State.

The Member States shall declare to the European Agri-
3.
cultural Guidance and Guarantee Fund (EAGGF) the amounts
resulting from the application of Article 3 of Regulation (EC)
No 1788/2003 together with the expenditure declared in
respect of September each year at the latest.

4. Where the set of documents referred to in Article 3(5) of
Commission Regulation (EC) No 296/96 (1) shows that the time
limit referred to in paragraph 3 of this Article has not been
met, the Commission shall reduce advances on entry in the
accounts of agricultural expenditure in proportion to the
amount due or an estimate thereof, in accordance with Article
3(2) of Regulation No 1788/2003.

Article 16

Criteria for redistributing the excess levy

1. Where appropriate, Member States shall determine the
priority categories of producers referred to in Article 13(1)(b)
of Regulation (EC) No 1788/2003, on the basis of one or more
of the following objective criteria, in order of priority:

(a) formal acknowledgement by the competent authority of the
Member State that all or part of the levy has been wrongly
charged;

(b) the geographical

location of the holding, and primarily
mountain areas within the meaning of Article 18 of
Council Regulation (EC) No 1257/1999 (2);

(c) the maximum stocking density on the holding for the

purposes of extensive livestock production;

(d) the percentage by which the individual reference quantity is

exceeded;

(e) the producer's reference quantity.

2. Where the excess levy, referred to in Article 13(1) of
Regulation (EC) No 1788/2003, available for a given period, is
not used up after redistribution in accordance with the criteria
set out in paragraph 1 of this Article, the Member State shall
adopt other objective criteria after consulting the Commission.

The redistribution of the excess levy shall be completed 15
months after the end of the 12-month period in question at the
latest.

Article 17

Charge of the levy

Member States shall take all the measures necessary to ensure
that the levy is correctly charged and that it falls on the produ-
cers who contributed to the overrun.

CHAPTER IV

CONTROLS BY THE MEMBER STATES AND OBLIGATIONS OF
PURCHASERS AND PRODUCERS

SECTION 1

CONTROLS

Article 18

National control measures

Member States shall take all the control measures in order to
ensure that this Regulation is complied with and in particular
the measures referred to in Articles 19 to 22.

Article 19

Control plan

1. Member States shall draw up a general control plan for
each 12-month period on the basis of risk analysis. This
control plan shall include at least:

(a) the criteria adopted for drawing up the plan;

(b) the purchasers and producers selected;

(c) on-the-spot checks to be executed regarding the 12-month

period;

(1) OJ L 39, 17.2.1996, p. 5.

(2) OJ L 160, 26.6.1999, p. 80.

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(d) the controls of transport between producers and purcha-

sers;

(e) the controls of
purchasers.

the yearly declarations of producers or

Member States may decide to update the general control plan
by more detailed periodic plans.

The representativeness of
the operators active in the milk
sector shall be taken into consideration as regards the risk
analysis as well as seasonality of production for the timing of
the controls.

Controls shall be carried out partly during the 12-month
2.
period in question, partly after the 12-month period on the
basis of the yearly declarations.

Controls shall be deemed to be completed once an

3.
inspection report of the controls is available.

inspection reports shall be completed no later than 18

All
months after the end of the 12-month period concerned.

However where the controls as foreseen in Article 20 are
combined with other controls, the time limits laid down for
other controls and the establishment of the respective inspec-
tion reports have to be respected.

Article 20

On-the spot-checks

On-the-spot checks shall be unannounced. However, provided
that the purpose of the control
is not jeopardised, advance
notice limited to the strict minimum necessary may be given.

Where appropriate, on-the-spot checks provided for in this
Regulation, as well as any other checks provided for in Com-
munity rules, shall be carried out at the same time.

Article 21

Controls on deliveries and direct sales

1.
As regards deliveries, controls shall be executed at farm
level, during transport of the milk and at purchaser level. At all
stages Member States shall physically check by means of on-
the-spot checks the accuracy of registration and accounting of
the milk marketed and in particular:

(a) at farm level, the status of producer within the meaning of
Article 5(c) of Regulation (EC) No 1788/2003 as well as
the compatibility between deliveries and production capa-
city;

(b) at transport level, the document referred to in Article 24(4)
of this Regulation,
the accuracy of the instruments for
measuring milk volume and quality, the accuracy of the
collection method, including possible intermediate collec-
tion points, the accuracy of quantity of collected milk at
unloading;

Regulation as well as the credibility of the records of stocks
and deliveries referred to in Article 24(2) and (3) of this
Regulation in the light of the commercial documents and
other documents showing how the milk collected has been
used.

2.

As regards direct sales, controls shall cover in particular:

(a) at farm level, the status of producer within the meaning of
Article 5(c) of Regulation (EC) No 1788/2003 as well as
the compatibility between direct sales and production capa-
city;

(b) the accuracy of the declaration referred to in Article 11(1)
in particular by means of documents

of this Regulation,
referred to in Article 24(6) of this Regulation.

Article 22

Intensity of controls

The controls referred to in Article 21(1) shall cover at

1.
least:

(a) 1 % of producers for the 12-month period 2004/05, 2 % of

producers for the following 12-month periods;

(b) 40 % of the quantity of milk declared before correction for

the period concerned;

(c) a representative sample of

transport of milk between

selected producers and purchasers.

The transport controls referred to in point (c) shall be carried
out in particular at unloading at the dairies.

Controls referred to in Article 21(2) shall cover at least

2.
5 % of producers.

Each purchaser shall be controlled at least once in five

3.
years.

SECTION 2

OBLIGATIONS

Article 23

Approval of purchasers

1.
To be able to buy milk from producers and to operate in
the territory of a Member State, purchasers must be approved
by that Member State.

2. Without prejudice to stricter rules laid down by the
Member State concerned, purchasers shall be approved only
where they:

(a) provide proof of

their status as dealers under national

provisions;

(c) at purchaser level, the accuracy of declarations referred to
in Article 8 of this Regulation, in particular by cross-checks
to documents referred to in Article 24(2) to (5) of this

(b) have premises in the Member State concerned where the
stock records, registers and other documents referred to in
Article 24(2) may be consulted by the competent authority;

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(c) undertake to keep up to date the stock records, registers

and other documents referred to in Article 24(2);

of purchasers and undertakings treating or processing milk
supplying them with milk and, for each month, the quantities
delivered by each supplier.

(d) undertake to forward the statements and declarations
provided for in Article 8(2) to the competent authority of
the Member State concerned at least once a year.

3. Without prejudice to the penalties laid down by the
Member State concerned, approval shall be withdrawn where
the conditions laid down in paragraph 2(a) and (b) are no
longer met.

Where it is found that a purchaser has forwarded an incorrect
statement or declaration, or has failed to comply with the
undertaking referred to in paragraph 2(c) or has repeatedly
failed to comply with any other obligation imposed under
Regulation (EC) No 1788/2003, this Regulation or the relevant
national rules, the Member State shall either withdraw approval
or require payment of an amount in proportion to the volume
of milk involved and the seriousness of the irregularity.

Approval may be reinstated at

the
4.
purchaser after a period of at least six months, provided that a
further thorough inspection gives satisfactory results.

the request of

The penalties referred to in paragraph 3 shall not be imposed
where the Member State recognises a case of force majeure or
establishes that the irregularity was not committed deliberately
or as a result of serious negligence, or where the irregularity is
negligible in terms of the functioning of the scheme or the
effectiveness of the checks.

Article 24

Obligations of purchasers and producers

1.
Producers shall ensure that purchasers to whom they
deliver are approved. The Member States shall lay down penal-
ties where deliveries are made to non-approved purchasers.

for

the

Purchasers

shall keep available

2.
competent
authority of the Member State, for at least three years from the
end of the year in which the documents are drawn up, stock
records per 12-month period with details of the name and
address of each producer, the information referred to in Article
8(2), entered every month or four-week period in the case of
quantities delivered and annually in the case of the other data,
together with the commercial documents, correspondence and
other information referred to in Council Regulation (EEC) No
4045/89 (1), permitting such stock records to be verified.

On collection at holdings, milk shall be accompanied by
4.
a document identifying the delivery.
In addition, purchasers
shall keep a record of each individual delivery for at least three
years from the end of the year in which the record is drawn
up.

5.
Producers making deliveries shall keep available for the
competent authority of the Member State, for at least three
years from the end of the year in which the documents are
the documents regarding the quantities of milk
drawn up,
delivered to the purchasers. The producer in question shall also
keep available for the competent authority the registers of live-
stock held on holdings and used for milk production,
in
accordance with Article 7 of Regulation (EC) No 1760/2000 of
the European Parliament and of the Council (2).

6.
Producers making direct sales shall keep available for the
competent authority of the Member State, for at least three
years from the end of the year in which the documents are
drawn up, stock records drawn up by 12-month period and
giving details, per month and per product, of any sale or
transfer of milk or milk products as well as of products which
have been produced but not sold or transferred.

They shall also keep available for the competent authority the
registers of
livestock held on holdings and used for milk
production, in accordance with Article 7 of Regulation (EC) No
1760/2000, and supporting documents enabling such stock
records to be verified.

CHAPTER V

COMMUNICATIONS

Article 25

Communications for the division between deliveries and
direct sales

1.
Before 1 July 2004, the Member States shall notify to the
Commission the division between deliveries and direct sales of
individual reference quantities resulting from the application of
Article 6(1) of Regulation (EC) No 1788/2003, converted if
necessary in accordance with Article 4(2) of this Regulation.

Purchasers shall be responsible for recording all quantities
3.
of milk delivered to them. To that end, they shall keep available
for the competent authority, for at least three years from the
end of the year in which the documents are drawn up, the list

2.
Before 1 February each year, in accordance with Article
8(2)(a) of Regulation (EC) No 1788/2003, the Member States
shall notify the quantities which have been definitively
converted at the request of the producers between individual
reference quantities for deliveries and for direct sales.

(1) OJ L 388, 30.12.1989, p. 18.

(2) OJ L 204, 11.8.2000, p. 1.

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Article 26

Questionnaire

1.
Before 1 September each year the Member States shall
communicate to the Commission the questionnaire set out in
Annex I, duly completed pursuant to Article 8(2)(b) of Regu-
lation (EC) No 1788/2003.

Portugal shall complete the questionnaire providing additional
the levy
information in order to distinguish calculation of
between mainland and Azores pursuant to Council Regulation
(EC) No 1453/2001 (1).

2. Where the requirements of paragraph 1 are not met, the
Commission shall withhold a flat-rate amount, in accordance
with Article 14 of Council Regulation (EC) No 2040/2000 (2),
from advances on the entry in the accounts of the agricultural
expenditure of the Member States. That amount shall be equal
to the levy payable for a theoretical overrun of the overall
reference quantity concerned calculated as follows:

(a) where the questionnaire is not forwarded by 1 September
or if data essential for calculating the levy are missing, the
percentage of the theoretical overrun shall be 0,005 % for
each week of delay;

(b) if a discrepancy of more than 10 % is found between the
sum of the quantities delivered or sold directly, as notified
in the updates provided for in paragraph 3 of this Article,
and those given in the initial response to the questionnaire,
the percentage of the theoretical overrun shall be 0,05 %.

3. Where the information required by the questionnaire
changes, in particular as a result of the checks provided for in
Articles 18 to 21, the Member State concerned shall communi-
cate an update of the questionnaire to the Commission before
1 December, 1 March, 1 June and 1 September each year.

pursuant to Article 7 of this Regulation, an explanation of the
measures adopted and of their aim shall be joint to the notifica-
tion.

2. Member States
shall notify to the Commission the
method(s) used for the purposes of this Regulation to measure
mass or, where applicable, to convert volume into mass, the
reasoning behind the coefficients
selected, and the exact
circumstances in which they apply, together with any subse-
quent amendments thereto.

3.
Before 1 September 2004, Member States shall notify to
the Commission a short report on the system for administering
their national references quantities, and before 1 September of
each following year,
in case of changes to that system, an
update of that report.

The report shall comprise a description of the current situation,
in particular as regards the measures adopted in case of
temporary transfers, transfers with land, other specific transfer
measures, the use of the re-allocation of unused quantities and
the recourse to the national reserve.

CHAPTER VI

FINAL PROVISIONS

Article 28

Repeal

Regulation (EC) No 1392/2001 is repealed.

However,
it shall continue to apply in respect of the period
2003/04, and, where necessary, previous periods unless other-
wise provided by Council Regulation (EC) No 1788/2003.

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

Article 27

Other communications

Article 29

Entry into force

1. Member States shall notify to the Commission measures
adopted to apply Regulation (EC) No 1788/2003 and this
Regulation, and any amendments thereto, within one month
following their adoption. In case of measures adopted pursuant
to Articles 16, 17 and 18 of Regulation (EC) No 1788/2003 or

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

It shall apply from 1 April 2004.

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

Done at Brussels, 30 March 2004.

For the Commission

Franz FISCHLER

Member of the Commission

(1) OJ L 198, 21.7.2001, p. 26.
(2) OJ L 244, 29.9.2000, p. 27.

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Official Journal of the European Union

31.3.2004

ANNEX I

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Official Journal of the European Union

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ANNEX II

Reference interest rates referred to in Article 15(2)

— For Member States in the euro zone

Euro interbank borrowing offered rate (EURIBOR)

— For Denmark

Copenhagen interbank borrowing offered rate (CIBOR)

— For Sweden

Stockholm interbank borrowing offered rate (STIBOR)

— For the United Kingdom

London interbank borrowing offered rate (LIBOR)

— For Cyprus

Nicosia interbank borrowing offered rate (NIBOR)

— For Czech Republic

Prague interbank borrowing offered rate (PRIBOR)

— For Estonia

Tallinn interbank borrowing offered rate (TALIBOR)

— For Hungary

Budapest interbank borrowing offered rate (BUBOR)

— For Lithuania

Vilnius interbank borrowing offered rate (VILIBOR)

— For Latvia

Riga interbank borrowing offered rate (RIGIBOR)

— For Malta

Malta interbank borrowing offered rate (MIBOR)

— For Poland

Warsaw interbank borrowing offered rate (WIBOR)

— For Slovenia

Slovenian interbank borrowing offered rate (SITIBOR)

— For Slovakia

Bratislava interbank borrowing offered rate (BRIBOR)

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ANNEX III

Correlation table

This Regulation

Regulation (EC) No 1392/2001

Article 1

Article 2

Article 3

Article 4

Article 5

Article 6

Article 7

Article 8

Article 9

Article 10

Article 11

Article 12

Article 13

Article 14

Article 15

Article 16

Article 17

Article 18

Article 19(1)
Article 19(2)
Article 19(3)

Article 20

Article 21(1)(2)

Article 22

Article 23

Article 24

Article 25

Article 26

Article 27

Article 28

Article 29

Annex I: Annual questionnaire

Annex II: Reference interest rates

Annex III: Correlation table

Article 1

—

—

—

—

Article 2(1) and (2)

Article 3

Article 5

Article 4

—

Article 6

Article 2(3)

Article 7

—

Article 8

Article 9

Article 11(1)

—

Article 12(1)
—
Article 12(2)

—

Article 11(3)

Article 12(2)

Article 13

Article 14

Article 15(1)(c)

Article 15(1)(e), (2) and (3)

Article 15(1)(a), (b), (d) and (f)

Article 16

Article 17

Annex I

Annex II

Annex III