The Dairy Produce Quotas (Wales) Regulations 2002

Transfer of quota with transfer of land

8.—(1) For the purposes of Article 7 of the Council Regulation (which concerns the transfer of quota with a holding when the holding is sold, leased, transferred by inheritance or subjected to other cases of transfer involving comparable legal effects for producers), in respect of a transfer of any holding or part of a holding, other than a transfer of a kind to which paragraph (5) or (7) refers, the transferee shall submit to the National Assembly —

(a) a notice of transfer in such form as the National Assembly may reasonably require—

(i) in the case of a transfer made by lease before 1st March, on or before 1st March in the quota year in which the transfer takes place; and

(ii) in the case of a transfer made by lease on any date during March or made at any time otherwise than by lease, on or before 31st March in the quota year in which the transfer takes place; and

(b) such other information relating to the transfer, and within such time, as the National Assembly may reasonably require.

(2) The notice referred to in paragraph (1)(a) shall, in the case of a transfer of part of a holding, include—

(a) statements from the transferor and transferee to the effect that they have agreed that the quota shall be apportioned taking account of the areas used for milk production as specified in the statement or that no such apportionment has been agreed and specifying the amounts of used and unused quota transferred; and

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

(3) Where there is a transfer of part of a holding—

(a) an apportionment of the quota relating to the holding shall be carried out in accordance with regulation 9; and

(b) any dairy produce which has been sold by direct sale or delivered by wholesale delivery from the holding during the quota year in which the change of occupation takes place and prior to that transfer shall be deemed, for the purposes of any levy calculation, to have been sold or delivered from each part of the holding in proportion to that apportionment, unless the parties agree otherwise and notify the National Assembly, in such form as the National Assembly may reasonably require, at the time of the submission of the notice or other information pursuant to paragraph (1) of the agreement.

(4) A prospective apportionment of quota in respect of a part of a holding may be made in accordance with regulation 10.

(5) No person shall transfer quota on a transfer of any holding or part of a holding in the following cases—

(a) the grant of—

(i) a licence to occupy land; or

(ii) a tenancy of any land under which a holding, or part of a holding, is occupied for a period of less than ten months;

(b) the termination of a licence or tenancy to which sub-paragraph (a) applies.

(6) Where a notice of transfer has not been submitted in accordance with the provisions of paragraph (1)(a), then for the purposes of any levy calculation—

(a) the unused quota transferred shall not be treated as a part of the transferee’s quota entitlement for the quota year in which the transfer takes effect but shall be treated as if it remained unused quota available where appropriate for reallocation by the National Assembly in that quota year in accordance with paragraph 7 of Schedule 2;

(b) the notice shall be disregarded by the National Assembly for the quota year to which it applies and shall not be noted on any register maintained under regulation 23 until the following quota year; and

(c) a transferee shall not be entitled to demand that, by reason of such a transfer, an amendment be made to the amount of quota, if any, which has been reallocated to him or her under Schedule 2 for the quota year in which the transfer takes effect.

(7) No person shall transfer quota on a transfer of a holding or part of a holding where the transfer would result in an increase or reduction in the total direct sales quota or total wholesale quota available for use by dairy enterprises located within a Scottish Islands area.