Document ID: chunk:federal_register_of_legislation:F2025C00088:reg:32:p2
Version: federal_register_of_legislation:F2025C00088
Segment Type: reg
Provision Reference: reg 32 (pt 2/4)
Character Range: 60979–63879

of each applicant to whose entitlement paragraph (3)(b) applies who is not a quota‑filled applicant must be recalculated under subsection (4); and
 (c) for the purposes of the recalculation, each quota‑filled applicant's initial individual entitlement is taken to have been equal to the amount of tariff rate quota entitlement that applicant applied for.
 (6) The recalculation mentioned in subsection (5) must be repeated until subsection (5) no longer applies in relation to any applicant.

Application and redistribution of penalties
 (7) The amount of an applicant's redistributed individual entitlement for a quota type and a quota year is:
 (a) if the applicant has an allocation penalty for the quota type and quota year—the amount of the applicant's adjusted individual entitlement for the quota type and quota year, less the amount of the allocation penalty, subject to subsections (11) to (14); and
 (b) if paragraph (a) does not apply and the applicant's adjusted individual entitlement for the quota type and quota year is equal to the amount of tariff rate quota entitlement the applicant applied for—that amount; and
 (c) if neither paragraph (a) nor (b) applies—the amount worked out using the formula in subsection (8), subject to subsections (9) and (10).
Note: See section 33 for determination of whether a person has an allocation penalty and the amount of the penalty.
 (8) For the purposes of paragraph (7)(c), the formula is:
where:
AIE is the applicant's adjusted individual entitlement.
applicant's eligible past exports is the total weight of the applicant's eligible past exports for the quota type and quota year.
non‑penalised eligible past exports is the total weight of all eligible past exports, for the quota type and quota year, by all applicants to whose entitlement paragraph (7)(c) applies.
penalties is the total of the amount of the allocation penalties of applicants for the quota type and quota year.
 (9) If the amount worked out under subsection (8) for any applicant (a quota‑filled applicant) is more than the amount of tariff rate quota entitlement the applicant applied for, then:
 (a) the redistributed individual entitlement of each quota‑filled applicant is equal to the amount of tariff rate quota entitlement that applicant applied for; and
 (b) the redistributed individual entitlement of each applicant to whose entitlement paragraph (7)(c) applies who is not a quota‑filled applicant must be recalculated under subsection (8); and
 (c) for the purposes of the recalculation, each quota‑filled applicant's adjusted individual entitlement is taken to have been equal to the amount of tariff rate quota entitlement that applicant applied for.
 (10) The recalculation mentioned in subsection (9) must be repeated until subsection (9) no longer applies in relation to any applicant.

Partial return of penalties
 (11) Subsection (12) applies if, after