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18. In regulation 30 (administrative penalties)–
(a)in paragraph (3) after “overstatement” in each place where it appears insert “or an understatement”; and
(b)for paragraph (5) substitute the following paragraph–
“(5) For the purposes of the third sub paragraph of Article 6(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 6(5) of that Regulation (which requires member States not to impose penalties in certain circumstances) and paragraph (6) of this regulation, 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, that 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 due on 0.5 per cent of the quantity by volume of milk which comprises the overstatement; or
(b)in the case of an understatement, a penalty equivalent to the theoretical amount of levy due on 0.5 per cent of the quantity by volume of 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.”.
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