WERE ALLOCATED TO IT . DURING THAT QUARTER THYSSEN PRODUCED 4*892 TONNES LESS THAN THE QUOTA WHICH THE APPLICANT HAD TRANSFERRED TO IT AND ACCORDINGLY RETURNED DURING THE FIRST QUARTER OF 1984, THEREBY ELIMINATING NOT ONLY THE EXCESS OF 910 TONNES WHICH WAS SUBJECT TO THE FINE BUT ALSO THE 3*522 TONNES NOT SO SUBJECT .
8 IT MUST BE REMEMBERED THAT SINCE IT WAS SET UP IN 1980 THE QUOTA SYSTEM HAS BEEN BASED ON THE ALLOCATION TO EVERY UNDERTAKING OF A QUARTERLY PRODUCTION QUOTA CALCULATED ON THE BASIS OF ITS PRODUCTION OR REFERENCE QUANTITY DURING A PARTICULAR PERIOD . AS IS STATED IN POINT 4 OF THE PREAMBLE TO COMMISSION DECISION NO 2794/80 OF 31 OCTOBER 1980 ESTABLISHING THE QUOTA SYSTEM ( OFFICIAL JOURNAL L*291, P.*1 ) THE OBJECT OF FIXING QUOTAS ON A QUARTERLY BASIS IS NOT ONLY TO ENABLE UNDERTAKINGS TO DRAW UP THEIR PRODUCTION PROGRAMMES BUT ALSO TO ENABLE THE COMMISSION, WHEN SETTING NEW QUOTAS FOR THE FOLLOWING QUARTER, TO TAKE ACCOUNT OF FLUCTUATIONS IN SUPPLY AND DEMAND AND OF EXPERIENCE GAINED . TO ENSURE THAT THE SYSTEM IS EFFECTIVE IT IS INDISPENSABLE THAT THE COMMISSION SHOULD CHECK CAREFULLY AT THE END OF EACH QUARTER WHETHER THE UNDERTAKINGS HAVE SATISFIED THEIR OBLIGATIONS TOWARDS THE COMMUNITY AND SHOULD IMPOSE EFFECTIVE PENALTIES IF THE QUOTAS HAVE BEEN EXCEEDED .
9 ALTHOUGH UNDER THE SYSTEM UNDERTAKINGS MAY, AFTER GIVING PRIOR NOTICE TO THE COMMISSION, MAKE TRANSFERS OF QUOTAS SO AS TO ADJUST THEIR PRODUCTION TO DEMAND, IT IS NECESSARY, IN ORDER TO ENABLE THE COMMISSION TO PERFORM ITS SUPERVISORY FUNCTION, THAT IT SHOULD TREAT SUCH TRANSFERS OBJECTIVELY AND INDEPENDENTLY OF INDIVIDUAL CONDITIONS AGREED BETWEEN UNDERTAKINGS . CONSEQUENTLY THE QUOTA WHICH IS TRANSFERRED MUST ALWAYS, IRRESPECTIVE OF WHETHER THE TRANSFER IS BY WAY OF SALE OR UNDER A CONTRACT FOR PROCESSING, BE CREDITED TO THE TRANSFEREE AND DEDUCTED FROM THE TRANSFEROR' S AVAILABLE QUOTA .
10 IN ACCORDANCE WITH THAT REQUIREMENT NEITHER THE RULE ALLOWING TRANSFERS, NAMELY ARTICLE 11 ( 4 ) OF DECISION NO 2177/83, NOR THE FORM PROVIDED FOR THE PRIOR DECLARATION MAKE ANY DISTINCTION ACCORDING TO THE REASONS FOR THE TRANSFER . IN THE PRESENT CASE THE APPLICANT DID NOT IN ANY EVENT INFORM THE COMMISSION AT THE TIME THAT A CONTRACT FOR PROCESSING WAS INVOLVED .
11 AS IN THE CASE OF THE ORIGINAL TRANSFER, THE RETURN OF PART OF THE QUOTA TRANSFERRED CAN ONLY BE EFFECTED IN CONFORMITY WITH THE AFORESAID PROVISION RELATING TO EXCHANGES OF QUOTAS BETWEEN UNDERTAKINGS . THAT PROVISION ALLOWS ONLY TRANSFERS OF QUOTAS RELATING TO THE CURRENT QUARTER . THE RETURN OF QUOTAS BY THYSSEN DURING THE FIRST QUARTER OF 1984 CANNOT THEREFORE AFFECT THE QUOTAS AVAILABLE TO THE TWO UNDERTAKINGS FOR THE FOURTH QUARTER OF 1983 .
12 THAT RESTRICTION IS ALSO JUSTIFIED BY THE NEED FOR MONITORING . THE PURPOSE OF GIVING UNDERTAKINGS THE RIGHT TO EXCHANGE QUOTAS IS TO ALLOW THEM TO ADJUST THEIR PRODUCTION TO THE DEMANDS OF THE MARKET DURING THE RELEVANT QUARTER AND NOT