
Article 1 
Regulation (EC) No 595/2004 is amended as follows:

1.. In Article 8, paragraph 4 is replaced by the following:
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4. Where no declaration is submitted before 15 June, Member States shall within 15 working days give formal notice to the purchaser to submit such declaration within 15 days. Where no declaration is submitted at the end of that period, Member States shall either withdraw approval or require payment of an amount in proportion to the volume of milk involved and the seriousness of the irregularity.Paragraph 3 shall continue to apply during the period of notice.'
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:
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4. Where no declaration is submitted before 15 June, Member States shall within 15 working days give formal notice to the producer to submit the declaration within 15 days. Where no declaration is submitted at the end of that period, the reference quantity for direct sales of the producer concerned shall revert to the national reserve. The first subparagraph of paragraph 3 of this Article shall continue to apply during the period of notice.'
4.. Article 15 is amended as follows:

((a)) in paragraphs 1 and 2, ‘September’ is replaced by ‘October’;
((b)) paragraph 3 is replaced by the following:
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3. The Member States shall declare to the European Agricultural Guarantee Fund (EAGF) the amounts resulting from the application of Article 3 of Regulation (EC) No 1788/2003 together with the expenditure declared in respect of November each year.Where pursuant to Article 26(3) of this Regulation, the Member States communicate an update of the questionnaire provided for in paragraph 1 of that Article, the resulting adjusted amounts shall be declared to the EAGF at the latest together with the expenditure declared in respect of the month before which the questionnaire shall be communicated.'
5.. Article 16 is replaced by the following:
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Article 16 

1. Where appropriate, Member States shall determine the priority categories of producers referred to in Article 13(1)(b) of Regulation (EC) No 1788/2003, on the basis of one or more of the following objective criteria:
(a) formal acknowledgement by the competent authority of Member State that all or part of the levy has been wrongly charged;
(b) the geographical location of the holding and primarily mountain areas within the meaning of Article 18 of Council Regulation (EC) No 1257/1999;
(c) the maximum stocking density on the holding for the purpose of extensive livestock production;
(d) the individual reference quantity is exceeded by less than 5 % or less than 15 000 kg, whichever is the lowest;
(e) the level of individual reference quantity is less than 50 % of the national average individual reference quantity;
(f) other objective criteria adopted by the Member State after consulting the Commission.
2. The redistribution of the excess levy shall be completed 15 months after the end of the 12 month period in question at the latest.'
6.. The following Article 16a is inserted:
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Article 16a 
Where pursuant to Article 3(1) of Regulation (EC) No 1788/2003, the 1 % levy not payable into the EAGF exceeds the amount necessary to cover cases of bankruptcy or definitive inability of certain producers to pay the levy, Member States may use the excess in accordance with Article 13(1) of that Regulation.'
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.'
Article 2 
This Regulation shall enter into force on the seventh day following that of its publication in the Official Journal of the European Union.
Article 1(2) shall apply from 1 April 2007.
This Regulation shall be binding in its entirety and directly applicable in all Member States.Done at Brussels, 4 October 2006.
For the Commission
Mariann FISCHER BOEL
Member of the Commission