Council Regulation (EEC) No 1343/86 of 6 May 1986 amending Regulation (EEC) No 857/84 adopting general rules for the application of the levy referred to in Article 5c of Regulation (EEC) No 804/68 in the milk and milk products sector

COUNCIL REGULATION (EEC) No 1343/86 of  6 May 1986 amending Regulation (EEC) No 857/84 adopting general rules for the application of the  levy referred to in Article 5c of Regulation (EEC) No 804/68 in the milk and milk products  sector
THE COUNCIL OF THE EUROPEAN COMMUNITIES
, Having regard to the Treaty  establishing the European Economic Community, Having regard to Council Regulation (EEC) No 804/68  of 27 June 1968 on the common organization of the market in milk and milk products (1), as last  amended by Regulation (EEC) No 1335/86  (2), and in particular Article 5c  (6) thereof, Having  regard to the proposal from the Commission, Whereas Council Regulation (EEC) No 857/84  (3), as  last amended by the Act of Accession of Spain and Portugal, lays down in the Annex thereto the  global quantity of milk or milk equivalent which producers may sell direct to the consumer in the  context of the five periods of 12 months of the additional levy system; Whereas, in the light of  market developments, the level of the guaranteed global quantities has, in the case of direct sales  and deliveries, proved to be higher than the level to be regarded as desirable to achieve a balance  between supply and demand; whereas, therefore, guaranteed global quantities for direct sales and  deliveries should be reduced by 3  %; whereas this reduction should be implemented in two stages;  Whereas Article 4 (1) (a) of Regulation (EEC) No 857/84 enables the Member States to grant  producers undertaking to discontinue all milk production definitively compensation paid in one or  more annual payments; whereas, in order more effectively to achieve the objective of market  balance, producers with a sizeable reference quantity available should also be encouraged to reduce  their production and whereas, for this to be accomplished, they should be granted the  aforementioned compensation if they undertake to abandon definitively at least half that quantity;  Whereas Article 4a of the aforesaid Regulation provides for the possibility, for the first two  periods of 12 months, of allocating producers' or purchasers' unused reference quantities to  producers or purchasers in the same region and, where appropriate, in other regions; whereas the  reasons for this relaxation of the arrangements for the first two periods of 12 months remain valid  for the third application period; whereas, at the same time, Article 9  (4) should be extended for  the third period of 12 months; Whereas, in a system involving annual payment of the levy, Member  States should be able to insure themselves, through a system of advances, against producer  insolvency where the trend of deliveries recorded over the first half of the application period  points to the risk that the annual reference quantity may be exceeded,