No L 214/44 Official Journal of the European Communities 2.8.91 COMMISSION REGULATION (EEC) No 2349/91 of 31 July 1991 laying down detailed rules for the application of Regulation (EEC) No 1637/91 fixing compensation with regard to the reduction of the reference quantities . referred to in Areticle Sc of Regulation (EEC) No 804/68 and compensation for the definitive discontinuation of milk production THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, Having regard to Regulation (EEC) No 1637/91 of 13 June 1991 fixing compensation with regard to the reduc- tion of the reference quantities referred to in Article Sc of Regulation (EEC) No 804/68 and compensation for the definitive discontinuation of milk production ('), and in particular Article 5 thereof, Whereas Regulation (EEC) No 1637/91 provides for compensation for the reduction of the reference quanti- ties for the eigth period of application of the additional levy scheme; whereas this reduction will probably be maintained, at least in part, for later periods ; whereas the quantity for which compensation is, or is to be, paid should be specified in each case; Whereas the above Regulation provides for the possibility of the definitive disconinuation of milk production by producers against payment of compensation ; whereas the procedures, obligations and timetable involved both with regard to the competent national authorities and to the producers themselves should be adopted ; Whereas, where the total of the applications eligible for compensation exceeds the amount of Community finan- cing provided, the Member State concerned must be able to draw up rules for acceptance of applications according to objective criteria taking account of milk production structures ; Whereas, where the obligations laid down are not fulfilled, the producer is liable for payment of the addi- tional levy for all deliveries or direct sales after the dates laid down for the definitive discontinuation of milk production ; whereas, in addition, Member States should be obliged to take all the measures necessary for the implementation and control of the measure, including penal or administrative sanctions, in particular, to ensure the reimbursement of compensation wrongly paid ; Whereas the list of information to be submitted to the Commission for assessment of the effectiveness of the measures implemeénted should be drawn up and the submission dates set; whereas any decision taken by a () OJ No L 150, 15. 6. 1991, p. 30. Member State not to apply the programme for the discon- tinuation of milk production on its territory must, as an exception to the rule, be examined in the light of the general principles of Community law applicable in the sector ; whereas this decision must therefore set out the grounds on which it is based; Whereas for Milk and Milk Products has not delivered an opinion within the time limit set by its chairman, HAS ADOPTED THIS REGULATION : TITLE I Compensation for the reduction of the reference quantities Article 1 The reduction to be taken into consideration for the calculation of the compensation referred to in Article 1 of Regulation (EEC) No 1637/91 shall be equal to the diffe- rence between reference quantity available before 15 June 1991 and the reference quantity available at the end of the eighth twelve month period, less transfers of reference quantities referred to in Article 7 of Council Regulation (EEC) No 857/84 ("), as last amended by Regulation (EEC) No 1639/91 (%), or which have comparable legal effects, carried out from the eighth period, or, where the Member State so chooses from the date on which the producer is notified of the reduction of his reference quantity. . The amount of compensation shall be converted into national currency using the agricultural conversion rate in force on 17 June 1991. vArticle 2 The reduction to be taken into consideration for the calculation of the compensation referred to in Article 2 (5) of Regulation (EEC) No 1637/91 shall be that referred to in Article 1 less the reference quantities allocated to the producer pursuant to Article 2 (4) (a) or (b) of Regula- tion (EEC) No 1637/91. () OJ No L 90, 1. 4. 1984, p. 13. () OJ No L 150, 15. 6. 1991, p. 3.