10Initial allocation

10 Initial allocation

(1) The Secretary must determine the amount of tariff rate quota entitlement for a quota type and a quota year to be allocated to each applicant under section 9, using: (a) if the tariff rate quota entitlement being determined is for UK FTA‑eligible meat—the method statement set out in subsection (1A) of this section; or (b) if the tariff rate quota entitlement being determined is for EU‑eligible meat or UK WTO‑eligible meat—the following method statement.

Method statement

Step 1. Use the formula in section 12 to work out the step 1 amount for each applicant.

Step 2. For any applicant who is subject to a penalty for the quota type and quota year (see section 11), reduce the step 1 amount by the applicant’s penalty amount. The result is the applicant’s step 2 amount.

Step 3. Use the formula in section 12 to distribute the total of the penalty amounts among the applicants who are not subject to a penalty, and add the amount distributed to each such applicant’s step 1 amount. For this purpose:

(a) replace references in the formula to AA with references to the total of the penalty amounts; and

(b) replace references to all applicants with references to applicants who are not subject to a penalty.

Step 4. If, after step 3, the amount for an applicant is less than 12,000 kg:

(a) the amount is excluded; and

(b) the applicant is excluded and is not allocated an amount of tariff rate quota entitlement for the quota type and quota year under this section.

Step 5. Use the formula in section 12 to distribute the total of the amounts excluded at step 4 among the applicants who are not subject to a penalty and not excluded at step 4, and add the amount distributed to each such applicant’s step 3 amount to reach the applicant’s step 5 amount. For this purpose:

(a) replace references in the formula to AA with references to the total of the amounts excluded; and

(b) replace references to all applicants with references to applicants who are not subject to a penalty and not excluded.

Step 6. Round all of the step 2 amounts and step 5 amounts to the nearest kilogram, with 0.5 of a kilogram to be rounded up. If, after this, the sum of the amounts exceeds the access amount for the quota type and quota year, round all the amounts down to the nearest kilogram instead.

Step 7. The amount of tariff rate quota entitlement allocated to an applicant not excluded at step 4 is:

(a) if the applicant is subject to a penalty—the step 2 amount, rounded in accordance with step 6; and

(b) otherwise—the step 5 amount, rounded in accordance with step 6.

(1A) For the purposes of paragraph 10(1)(a), the method statement is as follows: