(1)

In order to ensure harmonised implementation of the rules regarding the period of notice and conditions for withdrawal of the individual reference quantity or approval provided for in Articles 8(4) and 11(4) of Commission Regulation (EC) No 595/2004 (2), the relevant provisions need clarification. Furthermore, to facilitate management by Member States the deadlines set up in those Articles need to be adapted.

(2)

Article 10 of Regulation (EC) No 595/2004 provides for the way the fat content of milk is to be taken into account when drawing up the definitive statement of quantities. The experience has shown that some producers whose reference fat content is very high and not representative for their current dairy herd and milk production can benefit from a significant fat correction. In order to prevent the unfair use of the fat correction mechanism, a limit for the negative correction of fat should therefore be set up. It is however appropriate to apply this provision as from the 12 month period, as referred to in Article 1(1) of Regulation (EC) No 1788/2003, starting on 1 April 2007 so that the quantities of milk marketed during the current 12 month period are not affected by the new arrangements.

(3)

In accordance with Article 3(1) of Regulation (EC) No 1788/2003 as amended by Regulation (EC) No 1406/2006, the levy due shall be paid by Member States in the period between 16 October to 30 November of each year. Therefore the deadline set in Article 15 of Regulation (EC) No 595/2004 in which the levy due to the European Agricultural Guarantee Fund (EAGF) has to be paid and declared should be changed.

(4)

Article 26(3) of Regulation (EC) No 595/2004 provides for an update of the questionnaire in Annex I to that Regulation, duly completed pursuant to Article 8(2)(b) of Regulation (EC) No 1788/2003, to be communicated to the Commission before 1 December, 1 March, 1 June and 1 September each year. Such updates may give rise to a different amount of levy due. The way the adjusted amounts due to the European Agricultural Guarantee Fund (EAGF) in accordance with Article 3 of Regulation (EC) No 1788/2003 have to be declared should therefore be laid down.

(5)

In accordance with Article 16(1) of Regulation (EC) No 595/2004, Member States determine priority categories of producers for redistributing the excess levy on the basis of one or more objective criteria. Experience has shown that Member states need more clarity and more flexibility for the definition of priority categories.

(6)

In accordance with Article 3(1) of Regulation (EC) No 1788/2003, Member States are to pay the levy into the EAGF within the limit of 99 % of the amount due. In cases where the remaining 1 % is not fully needed for cases of bankruptcy or definitive inability of producers to pay the levy, Member States should be allowed to use the remaining amount in accordance with the criteria for the distribution of the excess levy provided for in Article 13(1) of that Regulation.

(7)

In accordance with Article 24(6) of Regulation (EC) No 595/2004 producers making direct sales have to keep available all records of milk and milk products which have been produced including those which have been produced but not sold or transferred. These book-keeping requirements are considered as disproportionate for some small direct sellers producing marginal quantities of less than 5 000 kg milk equivalent. These producers should therefore be exempted from the obligation of keeping records of milk or milk products not sold or transferred.

(8)

Regulation (EC) No 595/2004 should therefore be amended accordingly.

(9)

The measures provided for in this Regulation are in accordance with the opinion of the Management Committee for Milk and Milk Products,

1.

In Article 8, paragraph 4 is replaced by the following:

2.

In Article 10, paragraph 1, the following subparagraph is inserted after the third subparagraph:

‘Where in application of the third subparagraph the adjusted quantity of milk delivered by the producer is less than 75 % of the quantity of the actual milk delivered and where the producer's reference fat content is above 4,5 %, the individual statement shall be drawn up on the basis of 75 % of the actual quantity delivered.’

3.

In Article 11, paragraph 4 is replaced by the following:

4.

Article 15 is amended as follows:

5.

Article 16 is replaced by the following:

(*1)   OJ L 160, 26.6.1999, p. 80.’ "

6.

The following Article 16a is inserted:

7.

In Article 24(6), the first subparagraph is replaced by the following:

‘Producers making direct sales shall keep available for the competent authority of the Member State, for at least three years from the end of the year in which the documents are drawn up, stock records drawn up by 12-month period giving details, per month and per product, of any sale or transfer of milk or milk products.

Producers whose individual reference quantity of direct sales is 5 000 kg or more shall also keep records of milk and milk products which have been produced but not sold or transferred.

Member States may lay down more detailed rules.’