The Dairy Produce Quotas Regulations 1994

Explanatory Note

(This note is not part of the Regulations)

These Regulations revoke and replace the Dairy Produce Quotas Regulations 1993, as amended. They implement in the United Kingdom Council Regulation (EEC) No. 3950/92 (OJ No. L405, 31.12.92, p.1) establishing an additional levy in the milk and milk products sector and Commission Regulation (EEC) No. 536/93 (OJ No. L57, 20.3.93, p.12) establishing detailed rules for the levy, both as amended, which consolidate earlier legislation relating to the levy. Under the Community legislation (listed in Schedule 1), a levy continues to be payable on dairy produce sold by direct sale by a producer or delivered by him wholesale to a dairy business, unless the sales or deliveries are within a reference quantity described in that legislation. The Community legislation establishes the system of what are commonly called “milk quotas” and in these Regulations the term “quota” is used to refer to the reference quantity described in the Community legislation.

The main changes are as follows:

1.  Minor changes have been made to certain of the definitions (regulation 2).

2.  A provision is introduced, pursuant to the Community legislation, to permit a transfer of quota without transfer of the corresponding land. In exceptional circumstances the Intervention Board may release a transferee of such quota from the restrictions applicable to such transfers (regulation 13).

3.  Provisions on the temporary transfer of quota are extended to any agreement between producers to make a temporary transfer of unused quota, as notified to the Intervention Board (regulation 15).

4.  The functions of the Intervention Board are extended to include those previously exercised by the milk marketing boards in respect of the preparation and maintenance of direct sales and wholesale registers, and purchaser notices (regulation 25).

5.  Direct sellers are required to register with the Intervention Board (regulation 27).

6.  Purchasers are required to provide such information to the Intervention Board, including statistics and forecasts of deliveries of milk, as will enable it to fulfil its functions under the Regulations and the Community legislation (regulation 29).

7.  Detailed provisions are included on the restoration of quota which has been confiscated (regulation 33).

8.  The Dairy Produce Quotas Regulations 1993 as amended, are revoked except in relation to the calculation of levy liability in respect of the 1993 to 1994 quota year (regulation 36).

9.  Changes have been made to the arbitration provisions to correspond to changes in the regulations, including the introduction of arbitration in respect of the restoration of confiscated quota (Schedules 2, 3 and 4).

A compliance cost assessment has been prepared and a copy has been placed in the library of each House of Parliament.