Article 1

Regulation (EC) No 1868/94 is hereby amended as follows:

1. 1..

   Articles 2 and 3 shall be replaced by the following:

   ‘Article 2

   1.

   The potato starch producing Member States shall be allocated quotas for the 2007/2008 and 2008/2009 marketing years in accordance with the Annex.

   2.

   Each producer Member State referred to in the Annex shall allocate its quota among potato starch manufacturers for use in the 2007/2008 and 2008/2009 marketing years on the basis of the sub-quotas available to each manufacturer in 2006/2007, subject to application of the second subparagraph.

   The sub-quotas available for each manufacturer for the 2007/2008 marketing year shall be adjusted to take account of any amount used in excess of quota during the 2006/2007 marketing year in accordance with Article 6(2).

   Article 3

   The Commission shall present the Council, before 1 January 2009, with a report on the functioning of the quota system within the Community, accompanied by appropriate proposals. This report shall take account of developments on the potato starch and cereal starch markets.’

2. 2..

   The Annex shall be replaced by the text appearing in the Annex to this Regulation.