Dairy Produce Quotas Regulations (Northern Ireland) 2005

Determination of liability for levy on direct sales

30.—(1) This regulation shall apply for the purposes of Article 12 of the Council Regulation (which concerns the calculation of levy on direct sales).

(2) After the end of each quota year, the Department shall make a determination of the total quantity of dairy produce sold or transferred free of charge by direct sellers in the quota year in question.

(3) A determination under paragraph (2) shall be made by reference to the declarations direct sellers are required to submit to the Department in accordance with Article 11(2) of the Commission Regulation.

(4) If for any quota year a direct seller has not submitted to the Department a declaration in accordance with that Article or is unable to provide such proof of the quantities of dairy produce sold or transferred free of charge by him in that year as the Department may reasonably require for the purposes of these Regulations, the Department shall for the purposes of paragraph (2) –

(a) make its own determination of such quantities based on all the information available to it for the purposes of calculating any levy payable by that direct seller; and

(b) inform the direct seller of its determination.

(5) Where, in respect of a quota year –

(a) the total amount of direct sales quota of direct sales quota holders, including any converted quota; and

(b) the total amount of direct sales quota in the national reserve,

together exceed the total quantity determined by the Department under paragraph (2), the Department shall determine that no levy in respect of direct sales is payable.

(6) The Department shall notify all direct sales quota holders of its determination made under paragraph (5).

(7) Where, in respect of a quota year –

(a) the total amount of direct sales quota of direct sales quota holders, including any converted quota; and

(b) the total amount of direct sales quota in the national reserve,

together are less than the total quantity determined by the Department under paragraph (2), the Department shall notify all direct sellers that levy is payable.

(8) After the end of each quota year, the Department shall determine in respect of each direct sales quota holder the amount of any unused direct sales quota available to that direct sales quota holder in the quota year in question, taking into account any converted quota.

(9) If the Department determines under paragraph (8) that a direct sales quota holder has unused direct sales quota, it shall –

(a) add that unused quota to the national reserve; and

(b) subject to paragraph (10), make such awards of temporary reallocation of quota under regulation 19 as it considers it appropriate to make.

(10) If, after the Department has complied with paragraph (9)(a), there is insufficient direct sales quota to make a full award under regulation 19 to each direct sales quota holder who is eligible to receive such an award, the amount of each award under paragraph (9)(b) shall be reduced proportionately.

(11) In respect of the quota year in question, the Department shall then establish –

(a) the amount by which the total quantity referred to in paragraph (2) exceeds the total of –

(i) the direct sales quota of all direct sales quota holders, including converted quota; and

(ii) the direct sales quota in the national reserve;

(b) the total amount of levy payable by direct sales quota holders by multiplying the amount determined under sub-paragraph (a) by the rate of levy set in Article 2 of the Council Regulation; and

(c) the amount by which the total quantity referred to in paragraph (2) exceeds all the direct sales quota of the direct sales quota holders whose direct sales are greater than their quota.

(12) The Department shall establish the rate of levy per litre to be paid by each direct sales quota holder by dividing the amount determined in accordance with paragraph (11)(b) by the amount determined in accordance with paragraph (11)(c).

(13) The Department shall –

(a) ascertain which direct sales quota holders have sold or transferred free of charge dairy produce in excess of the quota available to them including any converted quota and any quota temporarily reallocated by an award under paragraph (9)(b);

(b) establish the total amount of levy payable by each such direct sales quota holder at the rate of levy established in accordance with paragraph (12); and

(c) notify each direct sales quota holder of the total amount of levy payable by him.

(14) If a direct seller fails to submit to the Department in accordance with Article 11(2) of the Commission Regulation a declaration of the total quantity of dairy produce sold or transferred free of charge by him in a quota year, the rate of levy per litre to be paid by that direct seller on the quantity not notified or determined under paragraph (4) shall be the rate set in Article 2 of the Commission Regulation.