THE REPORT FOR THE HEARING FOR A FULLER ACCOUNT OF THE FACTS OF THE MAIN PROCEEDINGS, THE COMMUNITY PROVISIONS AT ISSUE, THE FRENCH RULES FOR THE IMPLEMENTATION THEREOF, THE COURSE OF THE PROCEDURE AND THE OBSERVATIONS MADE TO THE COURT, WHICH ARE MENTIONED OR DISCUSSED HEREINAFTER ONLY IN SO FAR AS IS NECESSARY FOR THE REASONING OF THE COURT .
FIRST QUESTION
HAVING REGARD TO THE DOCUMENTS BEFORE THE COURT, THE FIRST QUESTION MUST BE UNDERSTOOD AS SEEKING ESSENTIALLY TO KNOW WHETHER ARTICLE 5C ( 1 ) OF REGULATION NO 804/68 OF THE COUNCIL OF 27 JUNE 1968 ON THE COMMON ORGANIZATION OF THE MARKET IN MILK AND MILK PRODUCTS, AS AMENDED BY COUNCIL REGULATION NO 856/84 OF 31 MARCH 1984 ( OFFICIAL JOURNAL 1984 L 90, P . 10 ), MUST BE INTERPRETED AS MEANING THAT IN THE CONTEXT OF FORMULA B, THE ADDITIONAL LEVY IS PAYABLE ONLY IN SO FAR AS THE CONSUMER' S REFERENCE QUANTITY HAS BEEN EXCEEDED .
ALL THE PARTICIPANTS IN THE PROCEEDINGS BEFORE THE COURT AGREE THAT IN THE CONTEXT OF FORMULA B ( THE "PURCHASER" FORMULA ), THE REFERENCE QUANTITY EXEMPT FROM THE ADDITIONAL LEVY IS DETERMINED IN RELATION TO THE PURCHASERS, THAT IS TO SAY, THE CREAMERIES, AND NOT IN RELATION TO THE PRODUCERS . CONSEQUENTLY, FOR EACH PERIOD, THERE IS AUTOMATIC INTERNAL SET-OFF BETWEEN PRODUCERS AFFILIATED TO THE SAME CREAMERY WITH THE EFFECT THAT THE CHARGING OF THE LEVY OCCURS ONLY WHERE THE CREAMERY' S REFERENCE QUANTITY HAS BEEN EXCEEDED . HOWEVER, THE COMMISSION POINTS OUT THAT THE ANNUAL RE-ALLOCATIONS CARRIED OUT ON THE BASIS OF SUCH INTERNAL SET-OFF DO NOT INCREASE THE PRODUCERS' INDIVIDUAL QUANTITY AND THEREFORE DO NOT GIVE THEM A RIGHT TO THE SAME QUANTITY FROM ONE PERIOD TO THE NEXT .
IT SHOULD BE POINTED OUT THAT UNDER ARTICLE 5C ( 1 ) (" FORMULA B ") OF REGULATION NO 804/68, AS AMENDED BY REGULATION NO 857/84, "A LEVY SHALL BE PAYABLE BY EVERY PURCHASER OF MILK OR OTHER MILK PRODUCTS ON QUANTITIES OF MILK OR MILK EQUIVALENT WHICH HAVE BEEN DELIVERED TO HIM BY A PRODUCER AND WHICH, DURING THE 12 MONTHS CONCERNED, EXCEED A REFERENCE QUANTITY TO BE DETERMINED . THE PURCHASER LIABLE TO THE LEVY SHALL PASS ON THE BURDEN IN THE PRICE PAID TO THOSE PRODUCERS WHO HAVE INCREASED THEIR DELIVERIES, IN PROPORTION TO THEIR CONTRIBUTION TO THE PURCHASER' S REFERENCE QUANTITY BEING EXCEEDED ".
THE VERY WORDING OF THAT PROVISION SHOWS THAT IN THE CONTEXT OF FORMULA B, THE ADDITIONAL LEVY IS DUE ONLY IN SO FAR AS THE TOTAL QUANTITIES OF MILK OR MILK EQUIVALENT PURCHASED BY A CREAMERY EXCEED ITS REFERENCE QUANTITY AND THAT QUANTITY MUST BE ADAPTED, IF NECESSARY, TO TAKE ACCOUNT OF ADDITIONAL QUANTITIES GRANTED TO THE PRODUCERS IN ACCORDANCE WITH ARTICLES 3, 4 OR 4A OF REGULATION NO 857/84 .
CONSEQUENTLY, IN THE CONTEXT OF FORMULA B, THE LEVY IS NOT DUE WHEN THE INCREASE IN THE DELIVERIES MADE BY AN AFFILIATED PRODUCER TO A CREAMERY IS