Subject to regulation 16(2), for the purposes of Article 16 of the Council Regulation (which concerns the temporary transfer of quota), a producer may agree with another producer to make a temporary transfer to that other producer of any unused quota which is registered under regulation 4 as permanently held by the producer if other quota (whether or not unused) remains so registered.

Quota may only be temporarily transferred pursuant to paragraph (1) for such period as shall end on the 31st March in the quota year in which the transfer takes place.

The Scottish Ministers may require a reasonable charge to be paid for the registration of any temporary transfer of quota if before the quota year in which the transfer takes place they have announced that they intend to make such a charge in respect of such transfers in that year in such a manner as they consider likely to come to the attention of producers.

Where there is an agreement to make a temporary transfer pursuant to paragraph (1), the transferee shall submit to the Scottish Ministers notice of the agreement, together with any charge payable under paragraph (3), so that the notice and any charge reach the Scottish Ministers no later than 31st March in the quota year in which the transfer takes place.

A notice referred to in paragraph (4) shall be in such form as the Scottish Ministers may reasonably require.