1. 7. 86 Official Journal of the European Communities No L 173/65 COMMISSION REGULATION (EEC) No 2040/86 of 30 June 1986 laying down detailed rules for the application of the co-responsibility levy in the cereals sector THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, Having regard to Council Regulation (EEC) No 2727/75 of 29 October 1975 on the common organization of the market in cereals ('), as last amended by Regulation (EEC) No 1579/86 (3, and in particular Article 4 (7) thereof, Whereas Article 4 of Regulation (EEC) No 2727/75 provides for the introduction of a co-responsibility levy system applicable to cereals produced in the Community ; whereas detailed rules of application should be adopted to implement that system ; Whereas cereals that undergo first-stage processing or are taken over by the intervention agency or exported as grain are to be subject to the co-responsibility levy ; whereas a definition of first-stage processing should be given ; Whereas, in the case of first-stage processing, the persons liable for that levy and the intervals at which payments are to be transferred by the latter should be identified ; whereas, in the other cases where the levy is payable, the deadline for collection should be fixed; Whereas, in the case of resale of intervention stocks, provision must be made to ensure that the levy is not collected a second time ; Whereas only cereals produced in the Community are to be subject to the co-responsibility levy ; whereas provision should therefore be made to exempt imported cereals which are re-exported or processed, subject to the presen- tation of certain evidence; : Whereas one of the objectives of the co-responsibility levy system is to make producers more aware of the realities of the market ; whereas, to that end, the burden of the levy should be passed on to them; whereas an invoicing system which takes account of that requirement should accordingly be introduced ; whereas the principle whereby the levy is to be passed on is to apply notwithstanding any contractual clause to the contrary; Whereas the processors must keep accounts at the disposal of the national authorities in order to enable the latter to carry out effective controls Whereas, to ensure sound application of the levy system, further national measures appear to be necessary ; whereas () OJ No L 281, 1. 11. 1975, p. 1. () O] No L 139, 24. 5. 1986, p. 29. the Commission must be in a position to assess such measures at the earliest opportunity ; Whereas the Management Committee for Cereals has not given an opinion within the time limit set by its chairman, HAS ADOPTED THIS REGULATION : Article 1 1. The co-responsibility levy referred to in Article 4 of Regulation (EEC) No 2727/75 shall be payable on cereals where they: — enter into first-stage processing, or — are taken over by intervention agencies, or — are exported as grain to Portugal during the first stage or to third countries ; ‘export’ shall mean the comple- tion of customs export formalities. When determining the quantities subject to the levy by virtue of first-stage processing, account shall be taken of the quantities of cereals entering the undertaking with a view to such processing. 2. For the purposes of this Regulation, ‘first-stage processing’ shall mean any treatment of grain such that the product obtained may no longer be classified under Chapter 10 of the Common Customs Tariff. Processing of cereals delivered or placed at the disposal of an underta- king by a producer with a view to subsequent utilization on his holding shall be considered first-stage processing. First-stage processing operations carried out by a producer on his agricultural holding shall be exempt from the co-responsibility levy where the product obtained is used on that holding for animal feed. Article 2 1.  The levy shall be paid by operators who undertake processing within the meaning of Article 1 (2). The levy shall be paid to the competent body appointed for the purpose by each Member State, in respect of processing operations carried out in one month. Payment must be made by the end of the month following the said period at the latest. On each payment, a declaration in writing in accordance with the model set out in the Annex shall be forwarded to the competent authority.