§ 29 — Average MSR default — civil penalty

29.—(1) If —(a)

an entity is subject to a minimum stockholding requirement in relation to an MSR product; and

(b)

the entity contravenes section 20(b) by not holding, for a relevant period for which a trigger notice given to the entity is in force, at least the average MSR of stocks of the MSR product designated for the entity for that relevant period,

the entity shall be liable to pay an MSR charge of an amount that is in subsection (3).

(2) The MSR charge payable under subsection (1) must be paid to the Director‑General, Food Security not later than the 14th day after a written demand to pay that MSR charge is given by the Director‑General, Food Security to the entity in question.

(3) For the purposes of subsection (1), the MSR charge, for each relevant period which is the subject of the written demand given under subsection (2), is as follows:

where —

(a)

Ma is the rate prescribed by the Part 2 Rules for the MSR product concerned and in force on the last day of the relevant period; and

(b)

Ka is the MSR product average shortfall for the relevant period, calculated in accordance with subsection (4).

(4) For the purposes of subsection (3), “MSR product average shortfall”, for an entity that is subject to a minimum stockholding requirement in relation to an MSR product for a relevant period, means the quantity calculated by subtracting —(a)

the average quantity of the stocks of the MSR product actually held by the entity during that relevant period where lower than the quantity in paragraph (b); from

(b)

the average quantity of the stocks of the MSR product specified in a trigger notice which the entity is required to hold during that relevant period.

(5) Where an entity subject to a minimum stockholding requirement in relation to an MSR product becomes liable under subsection (1) to pay an MSR charge for a relevant period, the entity’s liability continues despite the entity ceasing to be subject to that minimum stockholding requirement.

(6) Any liability under this section is in addition to and does not affect any liability under section 30.

(7) This section is subject to a remission under section 39.

—(1) If —(a)

an entity is subject to a minimum stockholding requirement in relation to an MSR product; and

(b)

the entity contravenes section 20(b) by not holding, for a relevant period for which a trigger notice given to the entity is in force, at least the average MSR of stocks of the MSR product designated for the entity for that relevant period,

the entity shall be liable to pay an MSR charge of an amount that is in subsection (3).

(2) The MSR charge payable under subsection (1) must be paid to the Director‑General, Food Security not later than the 14th day after a written demand to pay that MSR charge is given by the Director‑General, Food Security to the entity in question.

(3) For the purposes of subsection (1), the MSR charge, for each relevant period which is the subject of the written demand given under subsection (2), is as follows:

where —

(a)

Ma is the rate prescribed by the Part 2 Rules for the MSR product concerned and in force on the last day of the relevant period; and

(b)

Ka is the MSR product average shortfall for the relevant period, calculated in accordance with subsection (4).

(4) For the purposes of subsection (3), “MSR product average shortfall”, for an entity that is subject to a minimum stockholding requirement in relation to an MSR product for a relevant period, means the quantity calculated by subtracting —(a)

the average quantity of the stocks of the MSR product actually held by the entity during that relevant period where lower than the quantity in paragraph (b); from

(b)

the average quantity of the stocks of the MSR product specified in a trigger notice which the entity is required to hold during that relevant period.

(5) Where an entity subject to a minimum stockholding requirement in relation to an MSR product becomes liable under subsection (1) to pay an MSR charge for a relevant period, the entity’s liability continues despite the entity ceasing to be subject to that minimum stockholding requirement.

(6) Any liability under this section is in addition to and does not affect any liability under section 30.

(7) This section is subject to a remission under section 39.