§ 30 — Daily MSR default — civil penalty

30.—(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(a) by not holding at least the daily MSR of stocks of the MSR product designated for the entity for any day for which a trigger notice given to the entity is in force,

the entity shall be liable to pay an MSR charge of an amount that is calculated in relation to that day using the formula 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 formula, for each day which is the subject of the written demand given under subsection (2), is as follows:

where —

(a)

M is the rate prescribed by the Part 2 Rules for the MSR product concerned and in force on the day; and

(b)

K is the MSR product shortfall for that day, calculated in accordance with subsection (4).

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

the quantity of the stocks of the MSR product actually held by the entity on that day where lower than the quantity in paragraph (b); from

(b)

the quantity of the stocks of the MSR product specified in a trigger notice which the entity is required to hold on that day.

(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 any day or days, 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 29.

(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(a) by not holding at least the daily MSR of stocks of the MSR product designated for the entity for any day for which a trigger notice given to the entity is in force,

the entity shall be liable to pay an MSR charge of an amount that is calculated in relation to that day using the formula 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 formula, for each day which is the subject of the written demand given under subsection (2), is as follows:

where —

(a)

M is the rate prescribed by the Part 2 Rules for the MSR product concerned and in force on the day; and

(b)

K is the MSR product shortfall for that day, calculated in accordance with subsection (4).

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

the quantity of the stocks of the MSR product actually held by the entity on that day where lower than the quantity in paragraph (b); from

(b)

the quantity of the stocks of the MSR product specified in a trigger notice which the entity is required to hold on that day.

(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 any day or days, 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 29.

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