Surplus Stocks Charges Act

Link to law: https://www.riigiteataja.ee/en/eli/ee/Riigikogu/act/504092015007/consolide
Published: 2015-09-01

Surplus Stocks Charges Act

Passed 07.04.2004
RT I 2004, 30, 203
Entry into force 01.05.2004
Amended by the following legal instruments (show)

Passed
Published
Entry into force

16.06.2005
RT I 2005, 38, 296
retroactively 30.04.2005


25.01.2007
RT I 2007, 12, 65
16.02.2007

14.02.2007
RT I 2007, 22, 114
01.07.2007

19.02.2014
RT I, 13.03.2014, 4
01.07.2014

11.06.2015
RT I, 30.06.2015, 4
01.09.2015, on the basis of subsection 107^4 (2) of the Government of the Republic Act the words 'Ministry of Agriculture' have been replaced with the words 'Ministry of Rural Affairs' in the appropriate case form

§ 1.  Scope of application

(1) This Act provides the bases and procedure for payment of charges on surplus stocks of agricultural products in the possession of operators on 1 May 2004, the bases for and extent of state supervision and liability for violation of the requirements of this Act.
(2) The provisions of the Taxation Act (RT I 2002, 26, 150; 57, 358; 63, 387; 99, 581; 110, 660; 111, 662; 2003, 2, 17; 48, 341; 71, 472; 82, 554; 88, 591; 2004, 2, 7) and the Administrative Procedure Act (RT I 2001, 58, 354; 2002, 53, 336; 61, 375; 2003, 20, 117; 78, 527) shall apply to proceedings prescribed in this Act together with the specifications arising from this Act.
(3) The provisions of this Act shall not apply to operators who have 500 kg or less of agricultural products of the same type or 5 tonnes or less of cereals of the same type in their possession as at 1 May 2004.

§ 2.  Agricultural product

For the purposes of this Act, agricultural product is a product listed in Article 4(5) of Commission Regulation No 1972/2003/EC on transitional measures to be adopted in respect of trade in agricultural products on account of the accession of the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia (OJ L 293, 11.11.2003, p. 3–6) regarding Estonia as at 1 May 2004 and the product provided for in Article 4 of Commission Regulation No 60/2004/EC laying down transitional measures in the sugar sector by reason of the accession of the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia (OJ L 009, 15.01.2004, p. 8–12).

§ 3.  Sugar

For the purposes of this Act, sugar is the agricultural product provided for in Article 4 of Commission Regulation No 60/2004/EC.

§ 4.  Charge

Charge on surplus stock (hereinafter stock charge) is a single financial obligation in public law imposed on an operator which is subject to performance on the bases, pursuant to the procedure and during the terms prescribed in this Act. Operators shall pay stock charge for the following in their possession as at 1 May 2004:
1) surplus stock of an agricultural product, except sugar;
2) surplus stock of sugar not eliminated from the market within the term prescribed by law.

§ 5.  Operator

(1) For the purposes of this Act, an operator is a person who is engaged in the production, initial processing, manufacture and transport, sale and other transfer for a charge or without charge of an agricultural product for marketing purposes, and in other activities by which the agricultural product becomes available for other operators or consumers.
(2) This Act shall not apply to persons who use the agricultural products resulting from the activities specified in subsection (1) of this section for their own use. This Act shall also not apply to persons who perform the activities specified in subsection (1) of this section for the purpose of teaching students in educational institutions or teaching, developing and assisting persons staying in welfare institutions.

§ 6.  Transitional stock

(1) Transitional stock is the stock of an agricultural product in the possession of an operator on 1 May 2004 the amount of which shall be calculated as the average as at 1 May of the last four years preceding the year 2004 multiplied by 1.2.
(2) Operators who have not operated in the relevant area of activity before the year 2004 or who have operated less than four years shall prove that the amount of stock of an agricultural product in their possession on 1 May 2004 is equal to the amount of stock of the agricultural product usually produced, sold, or otherwise transferred or acquired for a charge or without charge by them.
(3) The transitional stock of an operator specified in subsection (2) of this section, who has operated in the area of activity less than four years but not less than one year before 1 May 2004, is the stock of an agricultural product in the possession of the operator on 1 May 2004 the amount of which is calculated either as the average stock as at 1 May of the last years of activity or as at 1 May of the last year of activity preceding the year 2004 multiplied by 1.2.
[RT I 2007, 12, 65 - entry into force 16.02.2007]

§ 7.  Surplus stock

(1) Surplus stock is the stock of an agricultural product in the possession of an operator on 1 May 2004 the amount of which shall be calculated by deducting the transitional stock from the amount of stock of the agricultural product in the possession of the operator on 1 May 2004.
[RT I 2007, 12, 65 - entry into force 16.02.2007]
(2) The entire stock of an agricultural product of an operator shall be deemed to be surplus stock if this is necessary for the achievement of the objective of Commission Regulation No 1972/2003/EC or Commission Regulation No 60/2004/EC.
[RT I 2007, 12, 65 - entry into force 16.02.2007]

§ 8.  Declaration of stock of agricultural product

(1) An operator shall submit a declaration to the Ministry of Rural Affairs for determination of the transitional stock and surplus stock which contains information on the production, sale, other transfer or acquisition for a charge or without charge and stock of an agricultural product in the possession of the operator.
(2) An operator shall submit to the Ministry of Rural Affairs a written declaration which contains the information specified in subsection (1) of this section as follows:
1) in the case of an agricultural product, except sugar, concerning the years 2000, 2001, 2002, 2003 and 2004 as at 1 May of the corresponding year by 15 May 2004;
2) in the case of sugar, concerning the years 2000, 2001, 2002, 2003 and 2004 as at 1 May of the corresponding year by 15 May 2004 and concerning the year 2005 as at 1 May of the same year by 28 February 2006.
(3) The Minister of Agriculture shall establish requirements for declaration of information specified in subsection (1) of this section. The requirements shall set out:
1) the procedure for the submission of declarations;
2) information presented in declarations and the declaration format;
3) the procedure for the use of declared information.
[RT I 2005, 38, 296 - entry into force 30.04.2005]

§ 9.  Deficiencies in declaration

(1) If obvious inaccuracies occur in a submitted declaration or an operator has failed to submit required information, the Ministry of Rural Affairs shall set a term for the operator for the elimination of deficiencies and explain that upon failure to eliminate the deficiencies by the due date the Ministry of Rural Affairs may refuse to review the declaration. Upon refusal to review the declaration, it shall be deemed that the operator has not submitted a declaration. If deficiencies are eliminated within a designated term, the declaration is deemed to have been submitted in good time. Mistakes in information which is not the basis for determination of the transitional stock or surplus stock and calculation of the amount of stock charges are deemed to be obvious inaccuracies.
(2) If there are mistakes in information contained in the submitted declaration which is the basis for determination of the transitional stock or surplus stock and calculation of the amount of stock charges, it shall be deemed that the operator has submitted false information. The operator shall not be deemed to have submitted false information if the operator discovers the mistakes in the declaration and notifies the Ministry of Rural Affairs thereof before the Ministry of Rural Affairs informs the operator of the false information in the declaration and forwards the information of the operator to the Tax and Customs Board for the commencement of misdemeanour procedure or issue of a warning concerning the imposition of penalty payment.

§ 10.  Determination of transitional stock and surplus stock

(1) The amount of the transitional stock and surplus stock of an operator shall be determined by the Ministry of Rural Affairs on the basis of information declared by the operator.
[RT I 2007, 12, 65 - entry into force 16.02.2007]
(2) If the operator presents in the declaration or appends thereto a reasoned application containing facts which are documented, the growth in the production, processing and sales volume of the operator, the maturation period of an agricultural product, the fact that the stock was built up before the third quarter of the year 2003, the reduction in the export or sales volume for reasons independent of the operator, or other circumstances independent of the operator shall be taken account of upon determination of the amount of the transitional stock and surplus stock. The growth in the production, processing or sales volume of the operator may be taken account of if this occurred during the previous year and was reflected in the economic results of the operator for the last six months. In such case, the operator may increase the transitional stock proportionally to the percentage of growth in the production, processing or sales volume.
[RT I 2007, 12, 65 - entry into force 16.02.2007]
(3) The Ministry of Rural Affairs shall prepare an administrative act on the determination of the transitional stock and surplus stock of an operator. The administrative act or an extract of the administrative act shall be sent to the operator within 10 working days as of preparation of the administrative act by post, by sending an unregistered letter or a registered letter with advice of delivery.
(4) The Ministry of Rural Affairs shall submit a transcript of the administrative act specified in subsection (3) of this section to the Tax and Customs Board not later than by 31 October 2004.

§ 11.  Notification of failure to submit declaration

The Ministry of Rural Affairs shall submit to the Tax and Customs Board by 31 October 2004 information on the operators who have failed to submit a declaration specified in clause 8 (2) 1) of this Act by the prescribed term. Information on the failure to submit a declaration specified in clause 8 (2) 2) of this Act shall be submitted by 15 March 2006. The Tax and Customs Board shall decide on the setting of a new term for the submission of a declaration together with the warning concerning the imposition of penalty payment or on the commencement of misdemeanour procedure.
[RT I 2005, 38, 296 - entry into force 30.04.2005]

§ 12.  Elimination of sugar from market

(1) Operators shall eliminate the surplus stocks of sugar in their possession from the market by 30 November 2005.
(2) Elimination of sugar from the market is an activity provided for in Article 6(2) of Commission Regulation No 60/2004/EC.
[RT I 2005, 38, 296 - entry into force 30.04.2005]

§ 13.  Reprocessing of sugar

(1) Reprocessing of sugar is an activity specified in Article 6(2)(b) or (c) of Commission Regulation No 60/2004/EC.
(2) Sugar may be reprocessed only under the supervision of the Tax and Customs Board.
(3) The Tax and Customs Board shall be notified in advance of the reprocessing of sugar. For this purpose, an operator shall submit a written notice to the supervisory authority concerning the place and date of reprocessing of sugar, the amount of sugar to be reprocessed and the manner of reprocessing.
(4) Sugar shall be reprocessed at the expense of the operator.

§ 14.  Amount of stock charges and calculation thereof

(1) The Tax and Customs Board shall calculate stock charge for each operator on the basis of an administrative act specified in subsection 10 (3) of this Act or information obtained in the course of supervision, by multiplying the amount of the surplus stock of an agricultural product by the amount of the charge on the stock of the agricultural product.
(2) In the case of an agricultural product, except sugar, the amount of stock charge shall be the amount of charge provided for in Article 4(3) of Commission Regulation No 1972/2003/EC.
(3) In the case of sugar not eliminated from the market by the prescribed due date, the amount of stock charge shall be the amount of charge provided for in Article 6(3)(3) of the Commission Regulation No 60/2004/EC.

§ 15.  Tax notice and due date for payment of charges

(1) The Tax and Customs Board shall notify an operator of stock charge payable with a tax notice. A tax notice is an administrative act to which the provisions of the Taxation Act concerning tax notices apply, unless otherwise provided by this Act. A tax notice need not be signed.
(2) The provisions of the Taxation Act shall apply to delivery of tax notices unless otherwise provided for in this Act.
(3) In the case of an agricultural product, except sugar, the operator shall pay stock charge to the bank account of the tax authority not later than by 31 December 2004.
(4) In the case of sugar not eliminated from the market by the due date prescribed by this Act, the operator shall pay stock charge not later than by 30 June 2006.
(5) Interest on stock charges unpaid by the due date shall be calculated pursuant to the provisions of the Taxation Act.
[RT I 2005, 38, 296 - entry into force 30.04.2005]

§ 16.  Payment of stock charges

Stock charges shall be paid into the state budget.

§ 17.  State supervision
[RT I, 13.03.2014, 4 - entry into force 01.07.2014]

[The second sentence of subsection (1) applied retroactively as of 1.05.2004]
(1) The Tax and Customs Board shall exercise state supervision over payment of stock charges provided for in this Act. The transitional stock and surplus stock of an agricultural product established in the course of state supervision may also be determined by the Tax and Customs Board.
[RT I 2007, 12, 65 - entry into force 16.02.2007]
(2) The Tax and Customs Board shall inspect the amount of transitional stocks and surplus stocks on site, if necessary together with the Veterinary and Food Board.
[RT I 2007, 22, 114 - entry into force 01.07.2007]
(3) The Tax and Customs Board shall verify the correctness of calculation and payment of stock charges, collect stock charges unpaid by the due date and the interest calculated thereon pursuant to the provisions of the Taxation Act and this Act. If, as a result of verification, the Tax and Customs Board discovers that a stock charge has been determined without basis or incorrectly, the tax notice shall be amended or repealed. The provisions of § 88 and §§ 101–104 of the Taxation Act shall apply to the amendment and repeal of tax notices.
(4) In exercising supervision, the Tax and Customs Board shall co-operate with other state and local government authorities within the limits of their competence.

§ 18. Specific state supervision measures
[RT I, 13.03.2014, 4 - entry into force 01.07.2014]

In order to exercise state supervision provided for in this Act, a law enforcement authority may apply the specific state supervision measures provided for in § 30 of the Law Enforcement Act on the basis of and pursuant to the procedure provided for in the Law Enforcement Act.
[RT I, 13.03.2014, 4 - entry into force 01.07.2014]

§ 19. Specifications concerning state supervision
[RT I, 13.03.2014, 4 - entry into force 01.07.2014]

An official of a law enforcement authority shall, where necessary or at the request of an operator, wear special or protective clothing provided by the operator when performing supervisory operations.
[RT I, 13.03.2014, 4 - entry into force 01.07.2014]

§ 20.  Penalty payment for failure to submit declaration

In the case of failure to perform the obligation to submit a declaration specified in § 8 of this Act, the Tax and Customs Board may set a new term for the submission of the declaration and issue a warning stating that in the event of failure to perform the obligation by the term, a penalty payment may be imposed. The upper limit for the penalty payment shall be the upper limit provided for in subsection 91 (4) of the Taxation Act. Penalty payments shall be imposed and collected pursuant to the provisions of the Taxation Act.

§ 21.  Failure to submit declaration and submission of false information

(1) Failure to submit a declaration for determination of the transitional stock and surplus stock of an agricultural product or submission of false information in the declaration is punishable by a fine of up to 300 fine units.
(2) The same act, if committed by a legal person, is punishable by a fine of up to 50 000 kroons.

§ 22.  Proceedings

(1) The provisions of the General Part of the Penal Code (RT I 2001, 61, 364; 2002, 86, 504; 82, 480; 105, 612; 2003, 4, 22; 83, 557; 90, 601; 2004, 7, 40) and the Code of Misdemeanour Procedure (RT I 2002, 50, 313; 110, 654; 2003, 26, 156; 83, 557; 88, 590) shall apply to the misdemeanours provided for in § 21 of this Act.
(2) Extra-judicial proceedings concerning the misdemeanours provided for in § 21 of this Act shall be conducted by the Tax and Customs Board.

§ 23.  Implementing provision

(1) The Ministry of Agriculture shall submit information concerning elimination of sugar from the market to the European Commission by 31 March 2006.
[RT I 2007, 12, 65 - entry into force 16.02.2007]
(2) If an operator, whose growth in the production, processing and sales volume of an agricultural product occurred during the year preceding 1 May 2004 and was reflected in the economic results of the operator for the last six months, submits a relevant declaration of the agricultural product, the growth in the production, processing or sales volume and stock of the agricultural product occurred during the period from 1 May 2004 to 1 May 2006 shall be taken account of upon determination of the transitional stock and surplus stock of the operator. The transitional stock of the operator may be increased if the growth in the production, processing or sales volume of the agricultural product of the operator occurred during the year preceding 1 May 2004, was reflected in the economic results of the operator for the last six months and continued during the period from 1 May 2004 to 1 May 2006. In this case, the operator may increase the transitional stock by the increase in the corresponding ratio. For this purpose, the ratio of the average stock of the operator concerning the year preceding 1 May 2004 to the production, processing or sales volume of the operator concerning the same period and the ratio of the average stock of the operator during the period from 1 May 2004 to 1 May 2006 to the production, processing or sales volume of the operator concerning the same period shall be calculated. For the purposes of taking account of the growth in the production, processing or sales volume and stock of an agricultural product occurred after 1 May 2004 upon determination of the transitional stock and surplus stock, an operator, who has contested a decision on determination of the transitional stock and surplus stock in an administrative court and in respect of whom a court decision has not entered into force by 5 October 2006, may submit a declaration of the agricultural product.
[RT I 2007, 12, 65 - entry into force 16.02.2007]
(3) An operator specified in subsection (2) of this section, who wishes the growth in the production, processing or sales volume and stock of the operator occurred after 1 May 2004 to be taken account of upon determination of the transitional stock and surplus stock of the operator, shall submit a respective declaration of the agricultural product containing information on the production, sale, other transfer or acquisition for a charge or without charge and stock of the agricultural product in the possession of the operator during the period from 1 May 2004 to 1 May 2006. The declaration in compliance with the format established on the basis of subsection 8 (3) of this Act shall be submitted by 1 March 2007.
[RT I 2007, 12, 65 - entry into force 16.02.2007]
(4) A relevant administrative authority shall determine the transitional stock and surplus stock of an operator specified in subsection (2) of this section on the basis of information in the declaration of an agricultural product specified in subsection (3) of this section by 30 March 2007. If the transitional stock and surplus stock of an operator are determined by the Ministry of Agriculture, the Ministry shall forward a transcript of the administrative act to the Tax and Customs Board by the same date. Stock charges shall be paid to the bank account of the tax authority within 30 days after delivery of the tax notice.
[RT I 2007, 12, 65 - entry into force 16.02.2007]

§ 24.  Entry into force of Act

This Act enters into force on 1 May 2004.
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