Statutory Instruments of the Scottish Parliament

(a) maintain a direct sales register; and

(b) send to each direct seller a copy of the entry in the direct sales register relating to that direct seller.

    (2) The direct sales register shall contain an entry in respect of each direct seller setting out in particular-

(a) the name of each direct seller;

(b) the trading address of each direct seller or, where there is more than one such address, each such address, and the principal trading address of each direct seller;

(c) a reference number which serves to identify the direct seller;

(d) the direct sales quota available to that direct seller for the quota year; and

(e) the details of the direct sales of that direct seller.

    (3) The Scottish Ministers shall-

(a) maintain a wholesale register;

(b) send to each wholesale producer a copy of the entry in the wholesale register relating to that wholesale producer; and

(c) send to each purchaser named in the list referred to in paragraph (4)(e) a copy of that part of the entry relating to the purchaser quota of that purchaser.

    (4) The wholesale register shall contain an entry in respect of each wholesale producer setting out in particular-

(a) the name of each wholesale producer;

(b) the trading address of each wholesale producer or, where there is more than one such address, each such address and the principal trading address of each wholesale producer;

(c) a reference number which serves to identify the wholesale producer;

(d) the wholesale quota available to the wholesale producer for the quota year; and

(e) a list of the name and address of each purchaser whose purchaser quota will be calculated to take into account all or part of the total wholesale quota of that wholesale producer, and of the wholesale quota registered with each purchaser, showing the representative fat content base of that quota calculated in accordance with Article 7 of the Commission Regulation.

    (5) The Scottish Ministers shall-

(a) maintain a register of purchasers; and

(b) send to each purchaser a copy of the purchaser entry relating to that purchaser.

    (6) The register of purchasers shall contain an entry in respect of each purchaser setting out in particular-

(a) the name of each purchaser; and

(b) the purchaser quota of that purchaser.

    (7) For the purposes of paragraphs (1) to (4), where the holding of a quota holder comprises more than one dairy enterprise, that quota holder may, after submitting to the Scottish Ministers a consent or sole interest notice in respect of that holding, agree with the Scottish Ministers the partition of the quota available to that quota holder relating to that holding between separate direct sales register entries or separate wholesale register entries, as the case may be.

    (8) The Scottish Ministers-

(a) may make such enquiries as they reasonably consider necessary for the purposes of ensuring the accuracy of the registers which they are required to maintain under this regulation;

(b) shall amend the registers-


(i) to record any allocation or adjustments made under or by virtue of these Regulations; or

(ii) to make any correction or amendment which they reasonably consider to be necessary; and



(c) shall notify any person affected by any correction or amendment made by them.

    (9) Notwithstanding that a person is no longer a producer, that person shall-

(a) remain registered pursuant to this regulation; and

(b) for the purposes of this regulation and regulations 6, 7(a) and 33(1), continue to be regarded as a producer,

until the start of the quota year following the year in which the quota available to that person has been transferred or until the quota has been withdrawn under Article 15 of the Council Regulation.

    (10) The obligation under paragraphs (1)(b), (3)(b) and (c) and (5)(b) is an obligation to send a copy of-

(a) an entry; or

(b) part of an entry,

(a) a notice of transfer in such form; and

(b) such other information relating to the transfer,

as the Scottish Ministers may reasonably require.

    (3) The notice of transfer must reach the Scottish Ministers-

(a) in the case of a transfer made by lease, no later than 1st March in the quota year in which the transfer takes place; and

(b) in the case of a transfer made otherwise than by lease, no later than 31st March in the quota year in which the transfer takes place.

    (4) The information referred to in paragraph (2)(b) must reach the Scottish Ministers within such time as the Scottish Ministers may reasonably require.

    (5) The notice of transfer shall include-

(a) statements from the transferor and transferee specifying the amounts of used and unused quota transferred;

(b) in the case of a transfer of part of a holding-


(i) statements from the transferor and transferee to the effect that they have agreed that the quota is to be apportioned taking account of the areas used for milk production as specified in the notice of transfer or that no such apportionment has been agreed; and

(ii) where such an apportionment has been agreed, a consent or sole interest notice, provided by the transferor in respect of the holding; and



(c) in the case of a transfer of the whole of a holding, a consent or sole interest notice, provided by the transferor in respect of the holding.

(a) the total volume of deliveries to purchasers; and

(b) the total volume of such deliveries after an adjustment for butterfat content in accordance with Article 10(1) of the Commission Regulation.

    (2) The determination under paragraph (1) shall be made by reference to the summaries purchasers are required to submit to the Scottish Ministers for the purposes of Article 8(2) of the Commission Regulation.

    (3) If for any quota year a purchaser has not submitted the summaries so required or is unable to provide such proof of the volume of milk delivered to that purchaser in that year as the Scottish Ministers may reasonably require for the purposes of these Regulations, the Scottish Ministers shall for the purposes of paragraph (1)-

(a) make their own determination of that volume of milk based on all the information available to them for the purposes of calculating any levy payable on deliveries made to that purchaser; and

(b) inform the purchaser of their determination.

    (4) If the volume referred to in paragraph (1)(a) exceeds that referred to in paragraph (1)(b), the Scottish Ministers shall calculate the proportionate reduction required to be made in all downward butterfat adjustments that have previously been made in order to increase the volume referred to in paragraph (1)(b) so that it equals the volume referred to in paragraph (1)(a).

    (5) If paragraph (4) applies, the Scottish Ministers shall-

(a) notify all purchasers that any downward butterfat adjustments made by them in the deliveries to them are reduced; and

(b) specify the reduction.

(a) for such periods; and

(b) in such form,

as the Scottish Ministers may reasonably require.

    (4) The information referred to in paragraph (2) shall be submitted so as to reach the Scottish Ministers before the expiry of the period of three working days beginning with the end of the period to which the information relates or within seven working days beginning with the date of notification of the requirement, whichever is the later.

    (5) Each purchaser shall provide the Scottish Ministers with a list of those wholesale quota holders registered with that purchaser at 31st March in each quota year (whether they have been so registered for the whole or part of that quota year) who-

(a) hold wholesale quota in respect of that quota year that has not been acquired by temporary transfer for that quota year; and

(b) have not made deliveries to that purchaser during that quota year;

and ensure that the list reaches the Scottish Ministers no later than 14th May following the end of that quota year.

    (6) The Scottish Ministers shall provide each purchaser with a copy of such information as the purchaser may reasonably require for the purposes of-

(a) the registration obligations of that purchaser under regulation 6; and

(b) Article 8 of the Commission Regulation (which concerns the submission of summaries of producers' statements of deliveries or declarations that no deliveries have been received).

(a) an application, statement or declaration concerning the adjustment of purchaser quota in accordance with regulation 23(2) to (4);

(b) information in accordance with regulation 33(2) to (4); or

(c) a confirmation or amendments relating to a revised version of a summary in accordance with regulation 35(2),

the purchaser shall be liable to pay to the Scottish Ministers a penalty equivalent to the theoretical amount of levy that would be due on 0.01% of the quantity by volume of milk covered by that application, statement, declaration or revised version, or that information, for each day of the period of delay in the submission reaching the Scottish Ministers.

    (3) Where a purchaser fails to maintain accurate and updated records pursuant to Article 24(2) of the Commission Regulation and regulation 34, the purchaser shall be liable to pay to the Scottish Ministers a penalty equivalent to the theoretical amount of the levy that would be due on 0.5% of the quantity by volume of milk concerned.

    (4) For the purposes of the third sub-paragraph of Article 11(3) of the Commission Regulation (which requires member States to impose proportionate penalties where producers submit incorrect declarations), and subject to the provisions of Article 11(5) of that Regulation (which authorises member States not to impose penalties in certain circumstances) and to paragraph (5), where a direct seller submits an annual declaration which overstates or understates the volume of direct sales for the quota year covered by that declaration, the direct seller shall be liable to pay to the Scottish Ministers-

(a) in the case of an overstatement, a penalty equivalent to the theoretical amount of levy that would be due on 0.5% of the quantity by volume of the milk which comprises the overstatement; or

(b) in the case of an understatement, a penalty equivalent to the theoretical amount of levy that would be due on 0.5% of the quantity by volume of the milk which comprises the understatement,

except in any case where, for the quota year covered by the declaration, the direct seller is liable to pay to the Scottish Ministers levy which exceeds that amount.

    (5) Notwithstanding anything in paragraphs (2) to (4), the penalties referred to in those paragraphs-

(a) in the case of purchasers and direct sellers, are not to be less than £60;

(b) in the case of purchasers, are not to exceed £60,000; and

(c) in the case of direct sellers, are not to exceed £600.

    (6) Subject to paragraph (7), if a purchaser fails to submit a summary required to be submitted under Article 8(2) of the Commission Regulation before 1st July in the year in which it is required to be submitted, the purchaser shall be liable to pay to the Scottish Ministers a penalty equivalent to the theoretical amount of levy that would be due on 0.01% of the quantity by volume of milk covered by that declaration for each day of the period of the delay in the submission reaching the Scottish Ministers.

    (7) A purchaser shall not be liable to pay a penalty under paragraph (6) if, in the opinion of the Scottish Ministers, the failure-

(a) was neither deliberate nor the result of serious negligence;

(b) is negligible in terms of the functioning of the scheme or the effectiveness of the checks; or

(c) is attributable to force majeure.

(a) a croft within the meaning of section 3 of the Crofters (Scotland) Act 1993;

(b) a holding within the meaning of section 2 of the Small Landholders (Scotland) Act 1911; or

(c) the holding of a statutory small tenant under section 32 of the Small Landholders (Scotland) Act 1911.

    (3) Where sub-paragraph (2) does not apply and the holding or any part of the holding constitutes or, immediately prior to the transfer giving rise to the apportionment, constituted an agricultural holding within the meaning of section 1 of the Agricultural Holdings (Scotland) Act 1991, the Scottish Land Court shall carry out the apportionment or prospective apportionment if requested to do so by a joint application of all parties interested in the apportionment, not later than 28 days after the change of occupation of the holding or part of the holding.

    (4) Where the Scottish Land Court carries out any apportionment or prospective apportionment, Part III of this Schedule shall apply.

     2.  - (1) An arbiter or the Scottish Land Court, as the case may be, shall decide the apportionment on the basis of findings made by that arbiter or the Scottish Land Court, as to areas used for milk production in the last five-year period during which production took place before the change of occupation or, in the case of a prospective apportionment, in the last five-year period during which production took place before the appointment of the arbiter or the application to the Scottish Land Court.

    (2) Notwithstanding sub-paragraph (1), an arbiter appointed in accordance with paragraph 3(4) shall conduct the arbitration in accordance with this Schedule and shall base the award on findings made by that arbiter as to the areas used for milk production in the last five-year period during which production took place.

    (3) Where production has taken place for less than five years before the change of occupation or of appointment of the arbiter or of the application to the Scottish Land Court, the period of production before the change of occupation or the appointment of the arbiter or the application to the Scottish Land Court as the case may be shall be substituted for the five-year period referred to in sub-paragraphs (1) and (2).

(a) where the arbiter is appointed by agreement between the parties, such amounts as may be agreed upon by the arbiter and the parties or, in default of agreement, fixed by the auditor of the sheriff court (subject to an appeal to the sheriff) on an application made by the arbiter or one of the parties;

(b) where the arbiter is appointed by the Scottish Ministers, such amount as may be fixed by the Scottish Ministers;

(c) where the arbiter is appointed by the Scottish Land Court, such amount as may be fixed by that Court,

and shall be recoverable by the arbiter as a debt due from any one of the parties to the arbitration.

     10.  - (1) Subject to sub-paragraph (2), in any arbitration to which this Schedule applies, the arbiter may join as a party to the arbitration any person having an interest in the holding, whether or not such person has applied to become a party to the arbitration, provided that such person consents to be so joined.

    (2) Where an apportionment pursuant to a request in a statement under regulation 39(4)(b) is to be carried out by arbitration, any person with an interest in the holding who has refused to sign such a statement as is referred to in regulation 39(4)(a) must be a party to the arbitration.

     11. The parties to the arbitration shall within twenty-eight days of the appointment of the arbiter deliver to the arbiter a statement of their respective cases with all necessary particulars; and

(a) no amendment or addition to the statement or particulars delivered shall be allowed after the expiry of the said twenty-eight days except with the consent of the arbiter;

(b) a party to the arbitration shall be confined at the hearing to the matters alleged in the statement and particulars delivered by that party and any amendment or addition duly made.

     12. The parties to the arbitration, and all persons claiming through them, shall, subject to any legal objection, submit to be examined by the arbiter on oath or affirmation in relation to the matters in dispute and shall, subject to any such objection, produce before the arbiter all samples, books, deeds, papers, accounts, writings and documents, within their possession or power which may be required or called for, and do all other things as the arbiter reasonably may require for the purposes of the arbitration.

     13. Any person having an interest in the holding to which the arbitration relates shall be entitled to make representations to the arbiter and the Scottish Ministers may make such representations where the arbitration follows on a notice given by them under regulation 12(2).

     14. The arbiter shall have power to administer oaths, and to take the affirmation of parties and witnesses appearing, and witnesses shall, if the arbiter thinks fit, be examined on oath or affirmation.

     15.  - (1) The arbiter shall make and sign the award within three months of the appointment of the arbiter or within such longer period as may, either before or after the expiry of the aforesaid period, be agreed to in writing by the parties or fixed by the Scottish Ministers.

    (2) The arbiter shall notify the terms of that award to the Scottish Ministers within eight days of the delivery of the award.

    (3) The award shall fix a date not later than one month after the delivery of the award for the payment of any expenses awarded under paragraph 19.

     16. The award to be made by the arbiter shall be final and binding on the parties and any persons claiming under them.

     17. The arbiter may correct in an award any clerical mistake or error arising from any accidental slip or omission.

     18. Where the arbiter is requested by any party to the arbitration, on or before the making of the award, to make a statement, either written or oral, of the reasons for the award, the arbiter must furnish such a statement.

     19. The expenses of and incidental to the arbitration and award shall be in the discretion of the arbiter, who may direct to and by whom and in what manner those expenses or any part thereof are to be paid, and the expenses shall be subject to taxation by the auditor of the sheriff court on the application of any party, but that taxation shall be subject to review by the sheriff.

     20.  - (1) The arbiter shall, in awarding expenses, take into consideration-

(a) the reasonableness or unreasonableness of the claim of any party, whether in respect of amount or otherwise;

(b) any unreasonable demand for particulars or refusal to supply particulars; and

(c) generally all the circumstances of the case.

    (2) The arbiter may disallow any expenses which the arbiter considers to have been incurred unnecessarily, including the expenses of any witness whom the arbiter considers to have been called unnecessarily.

     21. It shall not be lawful to include in the expenses of and incidental to the arbitration and award, or to charge against any of the parties, any sum payable in respect of remuneration or expenses to any person appointed by the arbiter to act as clerk or otherwise to assist the arbiter in the arbitration unless such appointment was made after submission of the claim and answers to the arbiter and with either the consent of the parties to the arbitration or the sanction of the sheriff.

     22. The arbiter may at any stage of the proceedings, and shall, if so directed by the sheriff (which direction may be given on the application of any party), state a case for the opinion of the sheriff on any questions of law arising in the course of the arbitration and the opinion of the sheriff on any case shall be final.

     23. Where an arbiter has committed any misconduct, the sheriff may remove that arbiter.

     24. Where an arbiter has committed any misconduct, or an arbitration or award has been improperly procured, the sheriff may set the award aside.

     25. Any amount paid in respect of the remuneration of an arbiter by any party to the arbitration in excess of amount, if any, directed by the award to be paid by that person in respect of the expenses of the award shall be recoverable from the other party or jointly from the other parties.

     26. The Arbitration (Scotland) Act 1894 shall not apply to any arbitration carried out under this Schedule.

(a) details of each wholesale producer making deliveries to the purchaser, including-


(i) the name and address of the wholesale producer,

(ii) the wholesale quota available to that wholesale producer at the beginning and end of each quota year,

(iii) the representative fat content (butterfat base) of the milk delivered by that wholesale producer, and

(iv) the total wholesale quota available for all the wholesale producers who make deliveries to the purchaser and the weighted butterfat of that quota;



(b) details, in terms of each delivery and each month, of the quantities of milk which each wholesale producer has delivered to the purchaser;

(c) details of the cumulative total of the quantities delivered to the purchaser each month by all wholesale producers;

(d) details of the average fat content of deliveries per month of each wholesale producer;

(e) details of the weighted average fat content of the cumulative total referred to in sub paragraph (c);

(f) a list of purchasers and other undertakings which supply treated or processed milk or milk products to that purchaser;

(g) details, in terms of each such purchaser or undertaking and each month, of the quantities supplied that purchaser by that purchaser or undertaking;

(h) details of the use to which milk and milk products collected from that purchaser has been put;

(i) records of individual deliveries and supplies and accompanying collection documents identifying each delivery or supply by wholesale producer, purchaser or other undertaking; and

(j) all books, registers, accounts, correspondence, commercial data, vouchers and supporting documents relating to the business activities of the purchaser.



Records to be kept by producers

     2.  - (1) In respect of each quota year, a direct seller shall keep, and retain for the relevant period, records comprising-

(a) details of the quota held by that direct seller, including any permanent and temporary transfers of quota if appropriate;

(b) the herd records (comprising number and breed of cows and calved heifers in dairy herd with details of number of cows in milk and number of cows dry) of that direct seller;

(c) daily records of milk produced;

(d) invoices of any feed purchased;

(e) details recorded as a result of the participation of that direct seller in the National Milk Recording Scheme or other similar recording scheme;

(f) details of quantities of milk processed, methods of processing and quantities and type of milk products produced;

(g) details of quantities of whole milk used in the production of milk products (with conversion rates applied);

(h) details of quantities and types of milk and milk products which are produced and used on the holding of that direct seller for stock feeding and human consumption;

(i) details of quantities and types of milk and milk products which are disposed of (other than under paragraph (h)) or wasted on the holding;

(j) without prejudice to paragraph (i), details of any milk or milk products which-


(i) were transported from the holding of that direct seller to be destroyed elsewhere for sanitary purposes pursuant to a decision of the Scottish Ministers,

(ii) were so destroyed, and

(iii) as a consequence, are to be excluded from the levy calculation,



including information about the reason why such destruction was necessary and details of where, when and how such destruction occurred;

(k) details of quantities and types of milk and milk products sold directly to the consumer or transferred free of charge from the holding of that direct seller (including milk and milk products sold on the holding of that direct seller);

(l) details of quantities and types of milk and milk products purchased, exchanged or otherwise received by that direct seller, and records relating to their disposal; and

(m) details of stocks of milk and milk products held by that direct seller on a monthly basis.

    (2) Where a direct seller also delivers milk or milk products to a purchaser, that direct seller shall, in respect of each quota year, also keep, and retain for the relevant period, records comprising-

(a) details of quantities and types of milk and milk products delivered by that direct seller and the name and address of any purchaser involved;

(b) the payment slips issued in respect of any such purchaser; and

(c) where there is a discrepancy between the payment slip of a purchaser and the relevant tanker receipt, that tanker receipt.

     3. A wholesale quota holder who makes deliveries to a purchaser shall, in respect of each quota year, keep, and retain for the relevant period, records, comprising-

(a) details of the quota held by that wholesale quota holder, showing permanent and temporary transfers of quota if appropriate;

(b) the herd records of that wholesale quota holder (comprising number and breed of cows and calved heifers in dairy herd with details of number of cows in milk and number of cows dry);

(c) daily records of milk produced;

(d) invoices of any feed purchased;

(e) details of quantities of milk delivered by that wholesale quota holder, and the name and address of the purchaser involved;

(f) the payment slips issued in respect of any such purchaser;

(g) where there is a discrepancy between the payment slip of a purchaser and the relevant tanker receipt, that tanker receipt;

(h) details recorded as a result of the participation of that wholesale quota holder in the National Milk Recording Scheme or other similar recording scheme;

(i) details of quantities of milk produced and used on the holding of that wholesale quota holder for stock feeding and human consumption;

(j) details of quantities of milk which are disposed of (other than under sub paragraph (i)) or wasted on the holding;

(k) without prejudice to sub paragraph (j), details of any milk which-


(i) was transported from the holding of that wholesale quota holder to be destroyed elsewhere for sanitary purposes pursuant to a decision of the Scottish Ministers,

(ii) was so destroyed, and

(iii) as a consequence, is to be excluded from the levy calculation,



including information about the reason why such destruction was necessary and details of where, when and how such destruction occurred;

(l) details of quantities and types of milk and milk products transferred free of charge from the holding of that wholesale quota holder;

(m) details of quantities of milk purchased, swapped or otherwise received, and records relating to its disposal; and

(n) details of stocks of milk produced on the holding of that wholesale quota holder.



Records to be kept by any person undertaking butterfat testing in a laboratory

     4. Any person undertaking butterfat testing for a purchaser in a laboratory shall keep, and retain for the relevant period, records comprising details of all samples of milk analysed, showing-

(a) the time and date the sample was taken on the holding;

(b) the time and date of that person's receipt of the sample;

(c) the time and date of the analysis;

(d) the identity of the purchaser concerned;

(e) the identity of the wholesale producer concerned (by name or reference number);

(f) the butterfat content of each sample recorded to two decimal places;

(g) the method of analysis used; and

(h) the results of any repeat analyses undertaken.

Records to be kept by hauliers

     5. Any haulier collecting milk or milk products on behalf of a purchaser shall keep, and retain for the relevant period, records comprising details of all quantities of milk or milk products so collected, showing-

(a) the time and date of collection from each wholesale producer;

(b) the time and date of sampling of the milk or milk products of each wholesale producer;

(c) the identity of the wholesale producer concerned;

(d) the volume of milk collected (including a copy of the tanker receipt in the cases referred to in paragraphs 2(2)(c) and 3(g));

(e) the identity of the purchaser concerned;

(f) the volume of milk delivered, and the name and address of each reception site;

(g) the sources of all the milk carried on each tanker; and

(h) details of any malfunction in any equipment used by that haulier.

Records to be kept by processors

     6. Any processor in receipt of milk or milk products for processing or treating shall keep, and retain for the relevant period, records comprising details of all quantities of milk or milk products received, showing-

(a) the time and date of their delivery;

(b) their volume or weight per delivery (including copies of tanker receipts and weighbridge tickets in the cases referred to in paragraphs 2(2)(c) and 3(g));

(c) the name and address of the haulier concerned;

(d) the name and address of their vendor or donor;

(e) the quantities of milk processed, types of processing undertaken, and quantities and types of milk products produced;

(f) the quantities of milk used in the production of milk products (if not ascertainable from the information provided under sub paragraph (e));

(g) the calculated stocks of milk and milk products held by that processor at the end of each month and details of actual stocks physically held as at 31st March each year; and

(h) the quantities of milk or milk products sold or otherwise disposed of, with the date of supply or disposal, and the names and addresses of the buyers or recipients concerned.

Records to be kept by persons buying, selling or supplying milk or milk products obtained directly from a producer or purchaser

     7. Any person who in the course of a business buys, sells or supplies milk or milk products obtained directly from a producer or purchaser shall keep, and retain for the relevant period, records comprising details of all quantities of milk or milk products received, showing-

(a) the time and date of their receipt;

(b) their volume or weight per delivery (including copies of tanker receipts or invoices in the cases referred to in paragraphs 2(2)(c) and 3(g));

(c) the name and address of the haulier concerned;

(d) the name and address of their vendor or donor;

(e) the quantities of milk or milk products sold or supplied, with the date of sale or supply, and the names and addresses of the buyers or recipients concerned other than the consumers of such milk or milk products; and

(f) the quantities of milk or milk products returned to the producer or purchaser unsold or unused, and the date of that return.

     8. In this Schedule, in relation to any records-

"the relevant period" means the remainder of the year of record and a period of at least three years thereafter; and

"the remainder of the year of record" means, following the making of the records, the remainder of the year in which they were made.

(a) before approving a purchaser, the Scottish Ministers may oblige the purchaser to lodge such security as the Scottish Ministers may reasonably require (regulation 5(4));

(b) provisions relating to butterfat-adjusted deliveries and the liability of wholesale producers for levy on deliveries (regulations 25 and 27);

(c) a direct seller who does not provide a declaration of the sales made by that direct seller in a quota year (as defined in regulation 2(1)) by 14th May immediately following the end of that quota year and who is liable to pay levy in respect of such sales will pay levy at the full rate (regulation 30(14));

(d) unless a wholesale producer has already paid levy, in certain circumstances the wholesale producer will be liable for the payment of levy to the Scottish Ministers where the purchaser of that wholesale producer has failed to do so (regulation 31);

(e) Article 21 of the Commission Regulation requires that checks be made on the compatibility between deliveries and direct sales of milk on the one hand and production capacity on the other; consequently, a producer is required to keep invoices of feed purchased by that producer (regulation 34(2) and paragraphs 2(1)(d) and 3(d) of Schedule 2);

(f) Article 6 of the Commission Regulation provides that milk which is destroyed off-farm for sanitary reasons will not be taken into account when calculating levy; consequently, a producer is required to keep records of such milk (regulation 34(2) and paragraphs 2(1)(j) and 3(k) of Schedule 2);

(g) where a person has to submit a document to the Scottish Ministers in accordance with these Regulations, the operative date is the date by when the Scottish Ministers receive the document, not the date of despatch to the Scottish Ministers;

(h) new provision is also made-


(i) enabling a tenant who buys quota to retain that quota at the end of the tenancy of that tenant in certain circumstances (regulation 14);

(ii) relating to the conversion of quota (regulation 22);

(iii) to prevent the avoidance of levy (regulation 32);

(iv) imposing a penalty for failure to submit a summary under Article 8(2) of the Commission Regulation by 1st July (regulation 36(6)); and

(v) for the confiscation of quota (regulation 38).

A Regulatory Impact Assessment of the effect which this instrument will have on the costs of business has been prepared and placed in the Scottish Parliament Reference Centre.

Copies of the map referred to in the definition of "Scottish Islands area" in regulation 2(1) and the Regulatory Impact Assessment are available from the offices of the Scottish Executive Environment and Rural Affairs Department at Pentland House, 47 Robb's Loan, Edinburgh, EH14 1TY.