FOOD Title and commencement 1 These Regulations may be cited as the Dairy Produce Quotas Regulations 1993 and shall come into force on 1st April 1993. Interpretation 2 1 In these Regulations, unless the context otherwise requires— “agricultural area” includes areas used for horticulture, fruit growing, seed growing, dairy farming and livestock breeding and keeping, areas of land used as grazing land, meadow land, osier land, market gardens and nursery grounds and areas of land used for woodlands where that use is ancillary to the farming of land for other agricultural purposes; “ Commission Regulation ” means Commission Regulation ( EEC ) No. 536/93 laying down detailed rules on the application of the levy on milk and milk products; “Community legislation” means the Council Regulation and the Commission Regulation; “consent or sole interest notice” means a notice, in relation to a holding or part of a holding, signed by the person required under these Regulations to provide the notice, that either— he is the occupier of that holding or part of a holding and no other person has an interest in that holding or part of the holding, or all persons having an interest in the holding or part of the holding the value of which interest might be reduced by the apportionment or prospective apportionment to which the notice relates agree to that apportionment or proposed prospective apportionment; “Council Regulation” means Council Regulation (EEC) No. 3950/92 establishing an additional levy in the milk and milk products sector; “cow” includes a heifer that has calved; “dairy enterprise” means an area stated by the occupier of that area to be run as a self-contained dairy produce business; “dairy produce” means the produce, expressed in kilograms or litres (one kilogram being 0.97116 litres) of milk, in respect of which levy is payable under the Community legislation; “Dairy Produce Quota Tribunal” has the meaning assigned to it by regulation 33; “delivery” has the meaning assigned to it by Article 9(g) of the Council Regulation (which sets out definitions) and “deliver” shall be construed accordingly; “direct sale” means a sale referred to in Article 9(h) of the Council Regulation; “direct sales quota” means the quantity of dairy produce which may be sold by direct sale from a holding in a quota year without the direct seller in occupation of that holding being liable to pay levy; “direct seller” means a producer selling dairy produce by direct sale; “eligible heifer” means any heifer which, at the date of service of the notice referred to in regulation 15(2)(a), was on land subject to the notice and calves for the first time on a day when the notice has effect or which at the date of making the order referred to in regulation 15(2)(b) was on land designated by the order and calves for the first time on a day when the order is in force; “farming press” means any newspaper, journal or similar publication considered by the Minister to be likely to be read by producers and purchasers; “Gazette” means, as regards anything in these Regulations relating to— England and Wales, the London Gazette, Scotland, the Edinburgh Gazette, Northern Ireland, the Belfast Gazette, and the United Kingdom, the London, Edinburgh and Belfast Gazettes; “holding” has the meaning assigned to it by Article 9(d) of the Council Regulation; “identification” means a description of a holding specifying— the address of the producer farming the holding; such other particulars, if any, as the Minister may require,and “identify” and “identified” shall be construed accordingly; “interest” includes the interest of a mortgagee or heritable creditor and a trustee, but does not include the interest of a beneficiary under a trust or settlement or, in Scotland, the estate of a superior; “ Intervention Board ” means the Intervention Board for Agricultural Produce established under section 6(1) of the European Communities Act 1972; “levy” means the levy, payable under the Community legislation to the competent authority referred to therein, described in Article 1 of the Council Regulation (which deals with the fixing of the levy); “milk marketing board” means a milk marketing board constituted under the Agricultural Marketing Act 1958 or the Agricultural Marketing (Northern Ireland) Order 1982 ; “Minister”, as regards anything in these Regulations relating to— England and Wales, means the Minister of Agriculture, Fisheries and Food and the Secretary of State for Wales acting jointly; Scotland, means the Secretary of State for Scotland, Northern Ireland, shall be construed in accordance with paragraph (3), and the United Kingdom, means the Ministers; “Ministers” means all those to whom the definition of “the Minister” relates, acting jointly; “national reserve” means the reserve described in regulation 13, constituted pursuant to Article 5 of the Council Regulation (which deals with confiscation and distribution of quota); “occupier” includes, in relation to land in respect of which there is no occupier, the person entitled to grant occupation of that land to another person; “producer” has the meaning assigned to it by Article 9(c) of the Council Regulation;“prospective apportionment” in relation to quota on a holding means apportionment of quota ascertained under regulation 11 which will take place if there is a change of occupation of a part of the holding to which the prospective apportionment relates within six months of that prospective apportionment; “purchaser” has the meaning assigned to it by Article 9(e) of the Council Regulation; “purchaser details” means in relation to a producer, the name and address of any purchaser to whom that producer delivers, or intends to deliver, dairy produce by wholesale delivery and the proportions of that dairy produce which he delivers or intends to deliver to each; “purchaser quota” means, the quantity of dairy produce which may be delivered by wholesale delivery to a purchaser during a quota year without that purchaser being liable to pay levy; “purchaser special quota” means the quantity of dairy produce which may be delivered by wholesale deliveries against producers' special quotas to a purchaser during a quota year without that purchaser being liable to pay levy; “qualifying cow” means any eligible heifer which calves at a time when the number of eligible heifers exceeds the replacement number; “qualifying day” means, in repect of any qualifying cow, the day it calves and each day or part of a day thereafter during which the notice referred to in regulation 15(2)(a) has effect or during which the order referred to in regulation 15(2)(b) is in force; “quota” means direct sales quota or wholesale quota, as the case may be; “quota year” means any of the periods of 12 months described in Article 1 of the Council Regulation (which deals with the fixing of the levy); “registered wholesale quota” means quota registered in accordance with regulation 25(2)(a); “replacment number” means the nearest integer to 22 per cent of the total number of dairy cows on the land subject to the notice referred to in regulation 15(2)(a), or designated by the order referred to in regulation 15(2)(b), as at the date of service of the notice or (as the case may be) the coming into force of the order, and where 22 per cent of the total number is half way between two integers the nearest even integer shall be deemed to be the nearest integer; “Scottish Islands area” means one of— the islands of Shetland, the islands of Orkney, the islands of Islay, Jura, Gigha, Arran, Bute, Great Cumbrae and Little Cumbrae and the Kintyre peninsula south of Tarbert; or the islands in the Outer Hebrides and the Inner Hebrides other than those listed in (c); “special quota” means the quota referred to in Article 4(3) of the Council Regulation which is subject to the restrictions set out in Articles 6(1) and 7(1)(a) of the Council Regulation and in Article 3a(4) of Council Regulation 857/84 (which together deal with special quota); “the 1984 Regulations ” means the Dairy Produce Quotas Regulations 1984 ; “total direct sales quota” means the total quantity of dairy produce which may be sold by direct sale from a holding in a quota year without the direct seller in occupation of that holding being liable to pay levy; “total purchaser quota” means the quantity of dairy produce which may be delivered by wholesale delivery to a purchaser during a quota year without that purchaser being liable to pay levy; “total wholesale quota” means the total quantity of dairy produce which may be delivered by wholesale delivery from a holding in a quota year without the producer in occupation of that holding being liable to pay levy; “transferee” means a person who replaces another person as occupier of a holding or part of a holding; “transferor” means a person who is replaced by another person as occupier of a holding or part of a holding; “unused quota” means quota remaining unused after any direct sales or wholesale deliveries have been taken into account, adjusted in accordance with Article 2(2) of the Commission Regulation (which deals with the fat content of milk); “wholesale delivery” means delivery from a producer to a purchaser; “wholesale quota” means the quantity of dairy produce which may be delivered by wholesale delivery to a purchaser (to the extent specified in relation to that purchaser under these Regulations), from a holding in a quota year without the producer in occupation of that holding being liable to pay levy. 2 In these Regulations, unless the context otherwise requires— a any reference to a numbered regulation or Schedule shall be construed as a reference to the regulation or Schedule so numbered in these Regulations, b any reference in a regulation or Schedule to a numbered paragraph shall be construed as a reference to the paragraph so numbered in that regulation or Schedule, and c any reference in a paragraph to a numbered or lettered subparagraph shall be construed as a reference to the subparagraph so numbered or lettered in that paragraph. 3 In their application to Northern Ireland these Regulations shall have effect with the substitution, for references to the Minister, of references to the Department of Agriculture for Northern Ireland. Establishment of quota 3 Total direct sales quota and total wholesale quota for any person and purchaser quota for any purchaser in respect of any quota year shall be established in accordance with these Regulations and the Community legislation. Determination of levy 4 For the purposes of Article 2(1) of the Council Regulation (which deals with the calculation of the levy), the contribution of producers who make wholesale deliveries towards the levy shall be established, in accordance with the provisions of that Article, at the level of the purchaser. Milk equivalence of dairy produce 5 1 For the purposes of Article 1(2) of the Commission Regulation (which deals with milk equivalence of dairy produce) the milk equivalence of dairy produce shall be calculated on the basis that each kilogram of dairy produce shall equal such quantity of milk referred to in paragraph (2) as is required to make that kilogram of dairy produce. 2 The milk to which paragraph (1) relates is milk the fat content of which has not been altered since milking. Adjustment of purchaser quota 6 1 Where any wholesale quota is increased or reduced in accordance with the Community legislation or these Regulations, the purchaser quota of any purchaser to whom that quota is applicable shall be correspondingly increased or reduced. 2 On any transaction to which the second subparagraph of Article 2(2) of the Council Regulation (which deals with replacements of purchasers and changes of purchasers by producers) applies, any purchaser whose purchaser quota has been increased by virtue of that transaction shall, no later than a date 21 days after the date of the transaction, submit to the Minister— a a statement of the transaction, that is to say a statement setting out (in accordance with the second subparagraph of Article 2(2) of the Council Regulation, where applicable) the following particulars— i the nature of the transaction; ii the parties to the transaction; iii the changes of purchaser quota of any purchaser to whom the transaction relates; iv the changes in respect of matters referred to in regulation 25(2)(a)(vi) and (vii) which form part of the wholesale register entry of each producer to whom the transaction relates; and b a declaration signed by the producer and the purchaser whose purchaser quota is to increase that the purchaser whose purchaser quota is to decrease has been notified of the changes the particulars of which are set out in the statement of the transaction referred to in subparagraph (a). 3 Subject to paragraph (4), where during a quota year a producer changes from being registered with a purchaser to being registered with any other purchaser, for the purposes of calculation of levy liability under regulation 19 in that quota year, any purchaser with whom he is newly registered shall have its purchaser quota increased by an amount equivalent to such part of that producer’s registered wholesale quota as the producer shall determine. 4 The amount of the increase of purchaser quota determined in accordance with paragraph (3) shall not include the amount of quota necessary to cover the deliveries made by the producer before the date of the change of purchaser, adjusted if necessary in accordance with the second sub-paragraph of Article 2(2) of the Council Regulation, which shall remain available to the original purchaser. 5 At the end of the quota year referred to in paragraph (3), the purchaser with whom the producer is newly registered shall have its purchaser quota increased by such part of the producer’s remaining quota as he shall determine. 6 Notwithstanding paragraphs (2), (3) and (4) above, the Minister may determine the date before which, in any quota year, any transaction to which the second sub-paragraph of Article 2(2) of the Council Regulation applies shall be notified to him, and the Minister shall announce any such date by such means of publication as the Minister considers likely to come to the attention of purchasers and producers. 7 The Minister may provide such forms as he reasonably considers to be necessary for the purposes of this regulation. Transfer of quota 7 1 For the purposes of Article 7 of the Council Regulation (which deals with transfer of quota when any holding is sold, leased or transferred by inheritance), on a transfer of any holding or part of a holding, other than a transfer of a kind to which paragraph (7) below refers, the transferee shall submit to the Minister— a within two months of the change of occupation of the holding or part of a holding, a duly completed form prescribed for this purpose from time to time by the Minister signed by the transferor and the transferee, and b such other evidence relating to the transfer, and within such time, as the Minister may reasonably require. 2 Notwithstanding paragraph (1) above, the Minister may decide, in respect of transfers of any holding or part of a holding in a quota year which have not been notified to him in writing by the transferee before a date to be determined by him in the following quota year, that for the purposes of any levy calculation— a the unused quota transferred with such transfers shall not be treated as a part of the transferee’s quota entitlement for the quota year in which the transfer took effect but shall be treated as if it remained unused quota available for re-allocation by the Minister in the year in which the transfer took place, and b a transferee shall not be entitled to demand that, by reason of such a transfer, an amendment be made to the amount of quota, if any, which has been reallocated to him under Schedule 4 for the quota year in which the transfer took effect. 3 A decision by the Minister, together with the date determined by him under paragraph (2) above, shall be announced by advertisement published in the Gazette and the farming press at least two months before that date or, in the event that such publication is not possible for any reason, by such other means of publication as the Minister considers likely to come to the attention of producers. 4 Where there is a transfer of the entirety of a holding it shall be presumed that the transferee intends to deliver dairy produce from the holding by wholesale delivery to the purchasers named, and in the proportions listed, in the transferor’s entry in the wholesale register. 5 Where there is a transfer of part of a holding— a an apportionment of the quota relating to the holding shall be carried out in accordance with regulation 10, and b dairy produce previously sold by direct sale or delivered by wholesale delivery from the holding in the quota year in which the change of occupation takes place shall be deemed, for the purposes of any levy, to have been sold or delivered from each part of the holding proportionally in accordance with that apportionment. 6 A prospective apportionment of quota in respect of a part of a holding may be made in accordance with regulation 11. 7 This regulation shall not apply to the following— a a licence to occupy land; b the tenancy of any land under which a holding, or part of a holding, in England and Wales is occupied for a period of less than ten months; c the lease of any land under which a holding, or part of a holding, in Scotland is occupied for a period of less than eight months; d the tenancy of any land under which a holding, or part of a holding, in Northern Ireland is occupied for a period of less than twelve months; e the termination of a tenancy or lease to which subparagraph (b), (c) or (d) applies; f any transfer of a holding or part of a holding where the transfer would result in an increase or reduction in the total direct sales quota or total wholesale quota available for use by dairy enterprises located within a Scottish Islands area. 8 Paragraphs (1), (5)(a), (6) and (7)(a) to (e) and the words “Notwithstanding paragraph (1) above” in paragraph (2) shall not apply in relation to special quota. Effect of land transfers on special quota 8 1 Subject to paragraphs (3) and (4) below where a producer has special quota registered in his name— a that special quota shall be returned to the national reserve if the holding is sold or leased by the producer; and b a proportion of that special quota shall be returned to the national reserve if only part of the holding is sold or leased by the producer. 2 The proportion of the special quota which is to be returned to the national reserve in accordance with paragraph (1)(b) shall be the same proportion which the agricultural area of the holding sold or leased bears to the total agricultural area farmed by the producer. 3 This regulation shall not apply where the transfer of the holding or any part of it is effected by means of the following— a a licence to occupy land; b the tenancy of any land under which a holding, or part of a holding, in England and Wales is occupied for a period of less than 10 months; c the lease of any land under which a holding, or part of a holding, in Scotland is occupied for a period of less than 8 months; d the tenancy of any land under which a holding, or part of a holding, in Northern Ireland is occupied for a period of less than 12 months. 4 No part of the special quota shall be returned to the national reserve where the holding or any part of it is transferred— a on inheritance, b by gift for which no consideration is given, c by the granting of a tenancy following a direction under section 39 or section 53 of the Agricultural Holdings Act 1986 (direction for grant of tenancy to successor on death or retirement of previous tenant), d by the granting of a tenancy (following a direction under section 39 of that Act) in circumstances within section 45(6) of that Act (new tenancy granted by agreement to persons entitled to tenancy under direction), e by the granting of such a tenancy as is referred to in section 37(1)(b) or (2) of that Act (tenancy granted by agreement to close relatives), f by the granting of a tenancy other than under paragraphs (c), (d) or (e) of this regulation by the landlord to a successor of a tenant who has died or retired, and the person to whom the holding or any part of it is transferred undertakes to comply with the undertakings of his predecessor made consequent upon the provisions of Article 4(3) of the Council Regulation and Article 3a of Council Regulation (EEC) No. 857/84 (which together deal with special quota). Notification of transfer of holding in relation to special quota 9 1 Subject to paragraph (2), where a producer has special quota registered in his name and intends to transfer the whole or a part of his holding he shall submit to the Minister— a before making such transfer, a duly completed form prescribed for this purpose from time to time by the Minister, and b such other evidence relating to the proposed transfer, and within such time, as the Minister may reasonably require. 2 Where a transfer takes place of a holding or part of a holding as is referred to in regulation 8(4), the transferee shall submit to the Minister— a within two months of the change of occupation of a holding or part of a holding, a duly completed form prescribed for this purpose from time to time by the Minister signed by the transferor and the transferee, and b such other evidence relating to the proposed transfer, and within such time, as the Minister may reasonably require. Apportionment of quota 10 Subject to regulations 8, 11(4) and 12, where there is a transfer of part of a holding, including part of a holding to which regulation 8(4) applies, the apportionment of the quota or special quota relating to that holding shall be carried out— a where within two months of the change of occupation the transferee submits to the Minister— i a duly completed form in accordance with regulation 7(1)(a) or 9(2)(a) as appropriate, ii a statement, signed by the transferor and the transferee, that they have agreed that the quota shall be apportioned taking account of areas used for milk production as specified in the statement, and iii a consent or sole interest notice provided by the transferor or his personal representative in respect of the entirety of the holding, in accordance with the agreement specified in subparagraph (ii), b in all other cases— i in England and Wales and Northern Ireland by arbitration in accordance with Schedules 1 and 3 respectively, ii in Scotland in accordance with Schedule 2. Prospective apportionment of quota 11 1 The occupier of the holding in respect of which the prospective apportionment of quota is to be applied shall submit to the Minister a statement— a identifying the parts of the holding to which the prospective apportionment is to relate, b containing such information relating to the holding as may reasonably be required by the Minister, and c requesting either— i that a prospective apportioment of quota relating to the holding be made taking account of areas used for milk production as at the date of the statement as specified in the statement, or ii that a prospective apportionment of quota be ascertained by arbitration in accordance with Schedule 1 in England and Wales and Schedule 3 in Northern Ireland, and in Scotland in accordance with Schedule 2. 2 The prospective apportionment of quota shall be made in accordance with Schedule 1, 2 or 3, as the case may be, unless a prospective apportionment has been specified in accordance with paragraph 1(c)(i) and the occupier sends to the Minister a consent or sole interest notice in respect of the entirety of the holding, in the case of which, subject to regulation 12, the prospective apportionment shall be as so specified. 3 A prospective apportionment of quota may be revoked by a notice in writing to the Minister, signed by the occupier of the holding to which the prospective apportionment relates and accompanied by a consent or sole interest notice in respect of that holding, that the occupier no longer wishes that prospective apportionment to have effect. 4 Where there is a change of occupation of part of a holding and within six months preceding that change of occupation— a the occupier of that holding has submitted a statement referred to in paragraph (1) in respect of that part of that holding, or b a prospective apportionment of quota relating to that part of that holding has been made by an arbitrator under Schedule 1 or 3, or under Schedule 2, the apportionment of quota shall be carried out in accordance with— i any prospective apportionment of quota relating to that part of that holding made under paragraph (2) and not revoked under paragraph (3), ii if there is no such prospective apportionment, any prospective apportionment which is in the process of being made under paragraph (2) by virtue of a statement relating to that part of that holding under paragraph (1), iii in any other case, regulation 10. 5 The Minister shall maintain a record of each prospective apportionment made under this regulation. Notification by the Minister of apportionment of quota by arbitration 12 Where the Minister has reasonable grounds for believing— a that the areas used for milk production on a holding are not as specified in a statement made for the purpose of regulation 9, 10 or 11(1), or b that the areas used for milk production on a holding were not as agreed between the parties at the time of apportionment notwithstanding that no statement was made for the purposes of the aforementioned regulations, he shall give notice of this fact in writing to the person who made the statement, or in a case where no statement was made, to the transferee and the apportionment or prospective apportionment of that quota shall then be made— a in England and Wales and Northern Ireland by arbitration in accordance with Schedules 1 and 3 respectively, b in Scotland in accordance with Schedule 2. National reserve 13 1 The national reserve shall comprise such wholesale and direct sales quota as is not for the time being allocated to any person, including any quota withdrawn pursuant to the provisions of regulation 32. 2 The Minister may make allocations from the national reserve in accordance with the Community legislation and these Regulations. Temporary transfer of quota 14 1 For the purposes of Article 6 of the Council Regulation (which deals with the temporary transfer of quota) and subject to paragraph (2) below, a producer who has wholesale quota registered as his which constitutes part of the purchaser quota of a purchaser may, before a date to be determined by the Minister in each quota year, make a temporary transfer of all or part of that wholesale quota for a period of one quota year to any other producer whose wholesale quota constitutes part of the purchaser quota of that same purchaser. 2 Where there is an agreement to make a temporary transfer of quota pursuant to paragraph (1), the transferee shall notify the Minister in writing of the agreement and of such particulars at such time as the Minister may reasonably require. 3 The Minister shall announce the date determined under paragraph (1) by such means of publication as the Minister considers likely to come to the attention of purchasers and producers. Temporary reallocation of quota 15 1 For the purposes of Article 2(4) of the Council Regulation and Article 5 of the Commission Regulation (which together deal with the reallocation of excess levy), the Minister may, for any quota year, award to a producer referred to in paragraph (2) below a temporary reallocation of an amount of quota corresponding to a proportion of any levy collected in excess of the levy actually due in that year, in accordance with the provisions of this regulation. 2 This regulation shall apply to— a a producer who has quota registered as his in relation to a holding which is in whole or in part subject to a notice prohibiting or regulating the movement of dairy cows pursuant to an Order made under the Animal Health Act 1981 or the Diseases of Animals (Northern Ireland) Order 1981 , b a producer who has quota registered as his in relation to a holding which is situated wholly or partly within an area which at any time during that quota year has been designated by an emergency order under section 1 and section 24(1) and (3) of the Food and Environment Protection Act 1985 , or c a producer who is affected by a formal acknowledgement of an error in the levy calculation, made pursuant to Article 5(1)(a) of the Commission Regulation. 3 Subject to paragraph (5) below, a producer referred to in paragraph (2)(a) or (b) above may be awarded a temporary reallocation of quota for any quota year in which the notice or, as the case may be, the order referred to in paragraph 2(a) or the order referred to in paragraph 2(b) has effect. The amount of any such award shall be calculated either— a as the amount equal to 15 litres per qualifying cow per qualifying day in any quota year, or b as the amount by which in the quota year in question the producer’s production exceeds his quota entitlement, whichever amount is less. 4 Where the notice referred to in paragraph (2)(a) or the order referred to in paragraph (2)(b) above continues beyond the quota year in respect of which a producer has received an award under paragraph (3), any award under that paragraph for the following quota year shall be calculated as if the number of the producer’s qualifying cows were equal to that of his eligible heifers which calved during the period of the notice in that following quota year, notwithstanding that when any such heifers calved the number of eligible heifers did not exceed the replacement number. 5 An award under paragraph (3) above— a shall be made, where a producer makes wholesale deliveries, as far as possible from the purchaser quota of any purchasers to whom deliveries are made in accordance with Schedule 4 paragraph 4, and thereafter from any excess quota determined in accordance with Schedule 4 paragraph 6 and distributed in accordance with Schedule 4 paragraph 7(a), provided that the amount of the award met from that excess quota does not exceed 15 per cent of the total amount of the excess; and b shall not be available in the same quota year to a producer who transfers quota under regulation 7, makes a temporary transfer of quota under regulation 14(1), or purchases cows or in-calf heifers for dairy purposes, unless the Minister is satisfied that the agreement to transfer, temporarily transfer or purchase, was entered into before service of the notice to which paragraph (2)(a) above refers, or (as the case may be) before the coming into force of the order to which paragraph (2)(b) above refers. 6 A producer referred to in paragraph (2)(c) above may be awarded a temporary reallocation of quota, for any quota year in respect of which the formal acknowledgement referred to in the Commission Regulation applies, which wholly or partially offsets the error in levy calculation to which the acknowledgement relates, and any such temporary reallocation of quota shall be made, where a producer makes wholesale deliveries, as far as possible from the purchaser quota of the purchaser to whom deliveries are made. Special allocation of quota 16 Where, by reason of a mistake made by the Minister or any person acting on his behalf, a person has not been allocated any quota or has been allocated a smaller quantity of any such quota than he would have been allocated if the mistake had not been made, the Minister may allocate to that person such quota as will compensate, in whole or in part, for that mistake from the national reserve. Conversion of quota 17 1 Subject to the provisions of Article 4(2) of the Council Regulation (which deals with changes from direct sales to wholesale delivery and vice versa), the second subparagraph of Article 2(2) of the Council Regulation (which deals with replacements of purchasers) and this regulation, any producer may apply to convert, temporarily or permanently, direct sales quota for wholesale quota or wholesale quota for direct sales quota. 2 Where the producer wishes to convert quota temporarily in any quota year, or permanently, he shall make an application to do so on a form prescribed for that purpose by the Minister, and such application shalll— a state the amount (if any) of the producer’s direct sales quota, wholesale quota, direct sales and wholesale deliveries for the quota year in which the application is made, and the amount of unused quota which he holds at the time of the application which he wishes the Minister to convert; and b include such other information as the Minister may reasonably require in order to assess whether the provisions of Article 4(2) of the Council Regulation are fulfilled. 3 The application referred to in paragraph (2) above shall be made by the producer to the Minister by— a 31st December in any year in the case of permanent conversion of quota, or b a date determined by the Minister in respect of each quota year and published in the Gazette in the case of temporary conversion of quota, except that, in the case of an application which includes a request to convert wholesale quota to direct sales quota, the application shall be submitted by the appropriate date on behalf of the producer by the purchaser to whom deliveries have been made. 4 Where a producer has temporarily converted direct sales quota to wholesale quota, he may not make a temporary transfer of that quota. Representative fat content of milk 18 For the purposes of Article 2(1)(d) of the Commission Regulation (which deals with the representative fat content of milk from certain new producers)— a the breeds of cow which may be considered to produce milk with a higher representative fat content shall be Channel Island, South Devon and breeds with similar characteristics; b the producer’s herd shall, at any time, include one or more such breeds; and c if, by 1st March in any year the producer fails to provide proof that the composition of his herd is in accordance with paragraph (b), and that the milk produced by that herd justifies the allocation to him of a higher representative fat content, he shall lose the right to have such a representative content for that quota year and subsequent quota years. Reallocation of quota and calculation of levy liability 19 Schedule 4 shall apply in respect of the reallocation of quota and the calculation of levy liability for the purposes of Article 2(1) of the Council Regulation (which deals with the calculation of the levy). Prevention of avoidance of levy 20 1 Subject to paragraph (2) below, where in any quota year a producer makes sales or deliveries of milk or milk products from milk produced by any cows and subsequently another producer makes sales or deliveries of milk or milk products from milk produced by any or all of the same cows, the second producer shall be deemed to have made those sales or deliveries in the capacity of agent for the first producer. 2 Paragraph (1) above shall not apply where— a an agreement has been entered into by the first producer for the sale or lease of the cows in question or the second producer has inherited them from the first producer; and b the cows are kept on the second producer’s holding. Payment of levy 21 1 For the purposes of Article 2(3) of the Council Regulation and Article 4 of the Commission Regulation (both of which deal with payment of levy by direct sellers), or Article 2(2) of the Council Regulation and Article 3 of the Commission Regulation (both of which deal with payment of levy by purchasers in respect of wholesale deliveries), levy shall be paid to the Intervention Board. 2 Where any part of the levy remains unpaid— a in the case of a direct seller, after the date specified in Article 4 of the Commission Regulation; or b in the case of a purchaser, after the date specified in Article 3 of the Commission Regulation, the Intervention Board may recover from the direct seller or (as the case may be) the purchaser the amount of the levy outstanding at the expiry of the period applicable in his case, together with interest in respect of each day thereafter until the said amount is recovered at the rate of one percentage point above the sterling three-month London interbank offered rate. 3 For the purposes of the third subparagraph of Article 2(2) of the Council Regulation (which deals with set-off of levy liability), where a producer making wholesale deliveries to a purchaser exceeds his wholesale quota, that purchaser may immediately deduct an amount corresponding to the amount of levy potentially payable by him in respect of the excess from the sums owed to the producer in respect of the deliveries. Functions of the Intervention Board for Agricultural Produce 22 1 The Intervention Board shall be the competent authority for the purposes of Article 2(3) of the Council Regulation (which deals with payment of levy by direct sellers), and for the purposes of Articles 1, 3, 4 and 7 of the Commission Regulation (which together deal with matters relating to the assessment of levy and the payment of levy by direct sellers and purchasers). 2 The Intervention Board and any milk marketing board may enter into an agreement providing for the discharge by the milk marketing board, on behalf of the Intervention Board, of any functions of the Intervention Board under these Regulations or the Community legislation specified in the agreement, on such terms as may be specified in the agreement. 3 In respect of any area which is not within the area of a milk marketing board, paragraph (2) above shall have effect as if “person or milk marketing board” were substituted for “milk marketing board” wherever those words appear. 4 The Intervention Board may, in respect of any person in whose name any direct sales quota is registered and who fails to submit to the Intervention Board before 15th May in any year the statement required to be made by Article 4(2) of the Commission Regulation, make and recover a reasonable charge in respect of any visit to any premises reasonably required to be made by the Intervention Board to obtain that statement. Functions under these Regulations 23 1 The Minister and any milk marketing board may enter into an agreement providing for the discharge by that milk marketing board, on behalf of the Minister, of any functions of the Minister under these Regulations or the Community legislation specified in the agreement, on such terms as may be specified in the agreement. 2 In respect of any area which is not within the area of a milk marketing board, paragraph (1) above shall have effect as if “person or milk marketing board” were substituted for “milk marketing board” wherever those words appear. Disapplication of enactments 24 Nothing in section 47(2) of the Agricultural Marketing Act 1958 or Article 29 of the Agricultural Marketing (Northern Ireland) Order 1982 (which restrict the disclosure of certain information obtained under those enactments) shall restrict or apply to the disclosure of any information if, and in so far as, the disclosure is required or authorised by these Regulations, the Community legislation or an agreement under regulation 22(2) or 23(1). Registers to be prepared and maintained by the Minister 25 1 The Minister shall— a prepare a direct sales register entry in respect of each direct seller setting out in particular— i his name; ii his address; iii his direct sales quota; and iv quota issued as special quota, and shall send each direct seller a copy of the entry relating to him, and b maintain— i a direct sales register (being a register of entries referred to in paragraph (1)(a)), and ii a register of particulars of direct sales by each direct seller. 2 The Minister shall— a prepare a wholesale register entry in respect of each producer setting out in particular— i his name; ii his address; iii any reference number which serves to identify the producer in the purchaser’s records; iv wholesale quota available to him for the quota year excluding the quota referred to in subparagraph (v); v quota issued as special quota; vi a list— of the names and addresses of each purchaser whose purchaser quota will be calculated to take into account all or part of that producer’s total wholesale quota, and of the wholesale quota to be taken into account based on purchaser details to be provided by the producer; vii in respect of each purchaser supplied, his wholesale quota registered with that purchaser, and its butterfat base calculated in accordance with Article 2 of the Commission Regulation, and shall send to each producer a copy of the entry relating to him and to each purchaser named on the list referred to in subparagraph (vi) a copy of that part of the entry relating to his purchaser quota, and b maintain a wholesale register (being a register of entries referred to in paragraph (2)(a)). 3 In respect of each purchaser the Minister shall— a prepare a purchaser notice setting out— i his name; ii his purchaser quota; iii his purchaser special quota; and shall send each purchaser a copy of the notice relating to him, and b maintain— i a register of purchaser notices; and ii a register of particulars of wholesale deliveries to each purchaser. 4 For the purposes of paragraphs (1) and (2) above, where a holding comprises more than one dairy enterprise a direct seller or a producer may, on presenting to the Minister a consent or sole interest notice in respect of that holding, agree with the Minister the partition of that holding among separate direct sales register entries or wholesale register entries as specified in the agreement. 5 The Minister shall amend the registers which he is required by this regulation to maintain to record any allocations or adjustments made under or by virtue of these Regulations, or to make any correction which he considers to be necessary, and shall inform any person to whom an amendment relates and any purchaser affected by an amendment of that amendment, and any person or purchaser affected by a correction of that correction. 6 In this regulation “direct seller” and “producer” include a person who has moved into occupation of land with quota, whether or not that person is engaged in the sale or delivery of dairy produce. Inspection of entries in the Minister’s registers 26 The Minister shall permit, during reasonable working hours, inspection of any entry relating to— a a specific holding in the registers referred to in regulation 25(1)(b)(i) and 25(2)(b) by any person who is the direct seller or producer in relation to, or gives the Minister a statement in writing that he has an interest in, that holding, and b a specific purchaser in either register referred to in regulation 25(3)(b) by the purchaser, and shall, on payment of a reasonable charge, forward a copy of that entry to any such person who requests it. Registration obligations of producers and purchasers 27 1 Each producer who holds registered wholesale quota (including any producer who has temporarily ceased, or who intends temporarily to cease, making wholesale deliveries) shall register his quota with a purchaser. 2 Each purchaser shall maintain, in respect of all producers whose register entries include that purchaser’s name on the list referred to in regulation 25(2)(a)(vi)— a a register as indicated in regulation 25(2)(b) in respect of that part of its purchaser quota attributable to each of those producers; b a register of particulars of wholesale deliveries from each of those producers to that purchaser; c the information required by Article 7 of the Commission Regulation (which deals with the records required in connection with levy assessment); and d a system approved by the Intervention Board for sampling the milk of each producer and determining its fat content. 3 Each purchaser shall amend its registers referred to in paragraph (2) above on each occasion when, under these Regulations, the Minister’s equivalent register is required to be amended in relation to producers registered in that purchaser’s register. 4 Each purchaser shall register with the Intervention Board and shall— a comply with an undertaking given to the Intervention Board to abide by the provisions of these Regulations and the Community legislation; b inform the Intervention Board of any factor or change in circumstances which affect that purchaser’s registration or the ability to comply with the undertaking referred to in subparagraph (a); and c confirm to each producer supplying that purchaser that the purchaser is registered and supply on request details of that registration. Registers as evidence 28 Any entry in a register or notice required by these Regulations to be maintained by the Minister shall in any proceedings be evidence of matters stated therein. Information 29 1 The Minister and the Intervention Board shall provide each other with such information and assistance as shall be required for the proper performance of their respective functions under these Regulations and the Community legislation. 2 Each purchaser shall provide such information to the Minister as the Minister may reasonably require in order to carry out his obligations under these Regulations and the Community legislation. 3 The Minister shall copy such records to each purchaser as that purchaser may reasonably require for the purposes of his registration obligations under these Regulations and Article 3 of the Commission Regulation (which deals with the assessment and payment of levy). Service of documents 30 Any document required by these Regulations to be served on any person may be served by post. Penalties 31 1 Subject to paragraph (2), any person who— a fails without reasonable excuse to comply with a requirement imposed on him by or under these Regulations or the Community legislation, or b in connection with these Regulations or the Community legislation, makes a statement or uses a document which he knows to be false in a material particular or recklessly makes a statement or uses a document which is false in a material particular, shall be guilty of an offence and liable, on summary conviction, to a fine not exceeding level 5 on the standard scale or, on conviction on indictment, to a fine. 2 Paragraph (1)(a) shall not apply to any failure by any person to comply with a requirement in an agreement referred to in regulation 22 or 23. 3 The Minister may, following any conviction under paragraph (1)(b) against which there is no successful appeal, by notice served (within the period of 12 months following the date specified in paragraph (4), on the person to whose quota that conviction relates, reduce his quota to such extent as may reasonably be regarded by the Minister as being attributable to the falsehood on which the conviction was founded. 4 The date referred to in paragraph (3) above is— a in the case of a conviction against which there is no appeal, the date on which the right to appeal against that conviction expires, and b in the case of a conviction against which there is an unsuccessful appeal— i if there is no right of appeal against the result of that unsuccessful appeal, the date of that result, and ii if there is a right of appeal against that result but no appeal is made, the date on which that right of appeal expires. Confiscation of quota 32 1 Within forty-five days after the end of each quota year to which these Regulations relate, a purchaser shall supply to the Minister a list of those producers registered with that purchaser (whether for the whole or part of the quota year) who have not made deliveries to him and have not made a temporary transfer of quota (under regulation 14) during that year. 2 Pursuant to Article 5 of the Council Regulation (which deals with the confiscation and distribution of quota), the Minister may send notification to— a the producers referred to in paragraph (1) above, b producers who are direct sellers who have submitted a declaration under Article 4(1) of the Commission Regulation (which deals with declarations of direct sales) indicating that in any quota year no direct sales have been made, and c producers who are direct sellers who have not submitted a declaration and to whom Article 4(2) of the Commission Regulation applies (which deals with the late submission of declarations), stating that the quota previously registered to them in respect of a holding has been withdrawn and placed in the national reserve with effect from the quota year following that for which the list referred to in paragraph (1) was supplied, that for which the declaration indicating no direct sales was made, or that for which no declaration was submitted, as the case may be. 3 Any quota withdrawn under paragraph (2) above may be restored to the producer in respect of the holding from which it was withdrawn within a period of six years from the beginning of the quota year in which it was withdrawn, in accordance with the provisions of Article 5 of the Council Regulation. Dairy Produce Quota Tribunals 33 1 The Dairy Produce Quota Tribunal for England and Wales, the Dairy Produce Quota Tribunal for Scotland, and the Dairy Produce Quota Tribunal for Northern Ireland constituted under regulation 6 of the 1984 Regulations shall continue in existence and, in respect of a holding situtated in more than one area of a Dairy Produce Quota Tribunal, the Dairy Produce Quota Tribunal the functions of which shall relate to that holding shall continue to be the Dairy Produce Quota Tribunal chosen for the purpose by the Ministers. 2 Any reference in these Regulations to “The Tribunal” shall be treated as a reference to the appropriate Dairy Produce Quota Tribunal under paragraph (1). 3 Schedule 5 shall apply in respect of the constitution, appointment of members, remuneration of members, staffing and procedure of Dairy Produce Quota Tribunals. Revocation 34 The Dairy Produce Quotas Regulations 1991 are hereby revoked. In Witness whereof the Official Seal of the Minister of Agriculture, Fisheries and Food is hereunto affixed on 29th March 1993. John Selwyn Gummer Minister of Agriculture, Fisheries and Food Hector Monro Parliamentary Under Secretary of State, Scottish Office 29th March 1993