Commission Regulation (EC) No 2707/2000 of 11 December 2000 laying down rules for applying Council Regulation (EC) No 1255/1999 as regards Community aid for supplying milk and certain milk products to pupils in educational establishments
Date: 2000-12-12
Institutions: European Commission
Subjects: EU aid, aid recipient, educational institution, milk, milk product, terms for aid

12.12.2000

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Official Journal of the European Communities

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COMMISSION REGULATION (EC) No 2707/2000

of 11 December 2000

laying down rules for applying Council Regulation (EC) No 1255/1999 as regards Community aid
for supplying milk and certain milk products to pupils in educational establishments

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

(4)

Having regard to the Treaty establishing the European
Community,

Having regard to Council Regulation (EC) No 1255/1999 of 17
May 1999 on the common organisation of the market in milk
and milk products (1), as last amended by Regulation (EC) No
1670/2000 (2), and in particular Article 15 thereof,

Whereas:

(1)

(2)

(3)

Regulation (EC) No 1255/1999 replaced Council Regula-
tion (EEC) No 804/68 (3), as last amended by Regulation
(EC) No 1587/96 (4), and inter alia Council Regulation
(EEC) No 1842/83 (5), as last amended by Regulation
(EC) No 1958/97 (6), on the supply of milk and certain
milk products to schoolchildren. The new Community
aid scheme and experience acquired call for the amend-
ment and simplification of Commission Regulation (EC)
No 3392/93 of 10 December 1993 on detailed rules for
the application of Council Regulation (EEC) No 1842/83
laying down general rules for the supply of milk and
certain milk products at reduced prices to schoolchil-
dren (7), as last amended by Regulation (EC) No 2235/
97 (8). For the sake of clarity that Regulation should be
recast.

The aid should be targeted at nursery and primary
schools, with Member States left to decide for them-
selves whether or not to include secondary schools. To
simplify management, consumption by pupils in resi-
dence at school holiday camps should be excluded.

There are policing difficulties over the use of subsidised
milk products in the preparation of meals served to
pupils, and this seems moreover not to be an effective
way of attaining the purposes of the aid scheme. Aid
should therefore be restricted to products distributed to
pupils.

(1) OJ L 160, 26.6.1999, p. 48.
(2) OJ L 193, 29.7.2000, p. 10.
(3) OJ L 148, 28.6.1968, p. 13.
(4) OJ L 206, 16.8.1996, p. 21.
(5) OJ L 183, 7.7.1983, p. 1.
(6) OJ L 277, 10.10.1997, p. 1.
(7) OJ L 306, 11.12.1993, p. 27.
(8) OJ L 306, 11.11.1997, p. 11.

The list of products qualifying for aid must give priority
to some basic milk products consumption of which is
essential for market balance. To take account of varying
consumption habits in the Community, Member States
should have the option of
including certain low fat
products and certain cheeses.

Article 14(3) of Regulation (EC) No 1255/1999, as
amended by Regulation (EC) No 1670/2000, specifies a
new aid rate for whole milk of 75 % of the target price
and for other products a rate set in line with the milk
components of the product. The aid for the various
products under these rules should be specified.

As regards payment of the aid, the requirements to be
met by applicants should be specified and rules on the
lodging of applications, the checks to be made by the
competent authorities and the payment procedure
should be laid down. For the purposes of management
and policing of the aid there should be an approval
procedure for applicants. To simplify management of
the scheme,
the use of organisations that apply on
behalf of a number of schools should be encouraged.

Under Article 14(4) of Regulation (EC) No 1255/1999,
the maximum daily quantity per pupil on which aid can
be granted is the equivalent of 0,25 litres of milk. Equiv-
alences between milk and the various other products
should be specified.

Policing rules for the aid scheme must be laid down, in
order to guarantee that the aid is duly reflected in the
price paid by recipients and that subsidised products are
not deflected from their intended use.

This Regulation should apply from 1 January 2001,
since that is the date on which the new aid amount
comes into force and this will give the competent
authorities time to prepare the application of the new
provisions.

(5)

(6)

(7)

(8)

(9)

(10)

The measures provided for in this Regulation are in
accordance with the opinion of
the Management
Committee for Milk and Milk Products,

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HAS ADOPTED THIS REGULATION:

Article 1

Purpose

4. Member States may authorise the addition of a maximum
of 5 mg of fluorine per kilogram to category I to V products.

5.
The products listed in Article 3(2)(b) and (c) of Council
Regulation (EC) No 2597/97 (2) shall be regarded, as appro-
priate, as whole, semi-skimmed or skimmed milk.

This Regulation lays down rules for applying Regulation (EC)
No 1255/1999 as regards Community aid under Article 14
thereof for supplying certain milk products to pupils in educa-
tional establishments.

Article 4

Rate of aid

Article 2

Beneficiaries

1.
The beneficiaries of the aid shall be pupils in regular
attendance at one of the following types of educational estab-
lishment:

(a) nursery schools/other pre-school establishments adminis-
tered or recognised by the Member State's competent
authority;

(b) primary schools;

(c) secondary schools (if the Member State chooses).

2.
Pupils shall not benefit from the aid during stays at
holiday camps organised by the establishment or its education
authority.

1.

The aid rates shall be:

(a) EUR 23,24/100 kg for category I products;

(b) EUR 21,82/100 kg for category II products;

(c) EUR 17,58/100 kg for category III products;

(d) EUR 16,17/100 kg for category IV products;

(e) EUR 13,34/100 kg for category V products;

(f) EUR 69,72/100 kg for category VI products;

(g) EUR 177,79/100 kg for category VII products;

(h) EUR 197,54/100 kg for category VIII products;

(i) EUR 217,29/100 kg for category IX products.

2.
Notwithstanding paragraph 1, where the aid is greater
than the supplier's selling price before deduction of the aid, it
shall be reduced so as not to exceed that price.

3.
Aid shall be conditional on a written commitment to the
competent authority, by the establishment or, as appropriate,
its education authority, that subsidised milk products will not
be used in the preparation of meals.

3.
If an aid rate in euro is altered, the rate in force on the
first day of the month shall apply to all quantities supplied
during that month.

Where a Member State shows good reason, however,
the
Commission may authorise it not to apply the first subpara-
graph.

If the quantities supplied are expressed in litres, the coef-

4.
ficient 1,03 shall be used for conversion into kilograms.

Article 3

Eligible products

1. Member States shall pay the aid on the category I and III
products listed in the Annex.

2. Without prejudice to Council Regulation (EC) No 2596/
97 (1), Member States may pay the aid on products of catego-
ries II and IV to IX listed in the Annex.

Article 5

Maximum subsidisable quantity

1.
In order to comply with the maximum 0,25 litre quantity
referred to in Article 14(4) of Regulation (EC) No 1255/1999,
the total quantity of milk products for which there is entitle-
ment to the aid during the period covered by an application
shall be calculated on the basis of the number of pupils entered
on the establishment's roll.

For products of categories VI to IX listed in the Annex,

2.
the calculation shall use the following equivalences:

In the French overseas departments, milk flavoured with

3.
chocolate or otherwise may be reconstituted milk.

(a) category VI: 100 kg = 300 kg of whole milk;

(1) OJ L 351, 23.12.1997, p. 12.

(2) OJ L 351, 23.12.1997, p. 13.

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(b) category VII: 100 kg = 765 kg of whole milk;

(c) category VIII: 100 kg = 850 kg of whole milk;

been paid for quantities larger than those given by applying
Article 5;

(c) to make supporting documents available to the competent

(d) category IX: 100 kg = 935 kg of whole milk.

authorities on their request;

Article 6

(d) to permit physical

inspection.

General conditions for granting the aid

Article 9

1.
Aid shall be granted to applicants approved in accord-
ance with Articles 7, 8 and 9 for the supply of Community
products purchased in the Member State where the educational
establishment is located.

2.

Aid can be applied for by:

(a) the educational establishment;

(b) an education authority in respect of the products distrib-

uted to the pupils within its area;

(c) if the Member State so provides, the supplier of the prod-

ucts;

Specific conditions for the approval of certain applicants

1.
If the aid is to be applied for by the supplier he must
make the following written commitments in addition to those
specified in Article 8:

(a) to keep records showing the makers of the products, the
names and addresses of the educational establishments or,
where appropriate, education authorities and the quantities
sold or supplied to these establishments;

(b) to submit to any check decided on by the Member State's

competent body,

in particular scrutiny of the records.

(d) if the Member State so provides, an organisation acting on
behalf of one or more schools or education authorities and
specifically established for that purpose.

2.
If the aid is to be applied for by an organisation as
referred to in Article 6(2)(d) it must make the following written
commitments in addition to those specified in Article 8:

Article 7

Approval of applicants

Applicants for aid must be approved for that purpose by the
competent body of the Member State in which the educational
establishment to which the products are supplied is located.

Article 8

General conditions for approval

Approval is conditional on the following written commitments
by the applicant to the competent authority:

(a) not to use the products except for consumption by the
the establishments in

its establishment or of

pupils of
regard to which it will apply for aid;

(a) to keep records showing the makers or suppliers of the
products, the names and addresses of the educational estab-
lishments or, where appropriate, education authorities and
the quantities sold or supplied to them;

(b) to submit to any check decided on by the Member State's

competent body,

in particular scrutiny of the records.

Article 10

Suspension and withdrawal of approval

If it is found that an applicant for aid is no longer meeting the
conditions laid down in Articles 8 and 9, or any other obliga-
tion under this Regulation, approval shall be suspended for one
to twelve months or withdrawn, depending on the gravity of
the irregularity.

Such action shall not be taken in cases of force majeure or if the
Member State finds that the irregularity was not committed
deliberately or by negligence or was of minor importance.

(b) to repay any aid unduly paid, for the quantities concerned,
should it be found that the products have not been distrib-
uted to the recipients indicated in Article 2 or that it has

Approval, once withdrawn, can be restored at the applicant's
request after a minimum period of six months.

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Article 11

Payment applications

1.
Payment applications must be made as specified by the
Member State's competent authority and include at least the
following information:

(a) the quantities distributed by category;

(b) the name and address of the educational establishment or

education authority.

3. Member States may delegate local authorities to pay the
aid and to manage the scheme provided for in this Regulation.

In cases to be determined by the Member State the local
authority may be replaced by an association, approved by the
Member State, to which the educational establishments belong.

Article 13

Payment of advances

2. Member States shall specify the frequency of applications.
These may cover periods of one to seven months according to
the amount of aid applied for.

1. Member States may pay an advance equal to the amount
of the aid applied for, against security for 110 % of the amount
advanced.

3.
Except in cases of force majeure, aid applications must, in
order to be valid, be lodged by the last day of the fourth month
following the end of the period to which they relate.

If this time limit is overrun by less than two months the aid
shall still be paid but reduced:

(a) by 5 % if the overrun is less than a month;

(b) by 10 % otherwise.

2.
If a supplier applies for an advance the competent
authority may pay it on the basis of the quantities delivered
without
requiring the documentary evidence indicated in
Article 12(1). Within one month of its being paid, the supplier
shall
forward to the competent authority the documents
required for final payment of the aid, unless the latter draws up
a report as provided for in Article 12(1)(b).

3.
Final payment of the aid shall be made by the end of the
sixth month following the end of the school year concerned.

The

amounts

application must be
shown in the
4.
supported by documentary evidence held available for the
competent authorities. This must show separately the price of
each product delivered and be receipted or accompanied by
proof of payment.

Article 14

Policing

Article 12

Payment of the aid

1. Without prejudice to Article 11(4), the aid shall be paid
to suppliers only:

1. Member States shall take whatever action is necessary to
ensure that the amount of the aid is duly reflected in the price
paid by the beneficiary.

To this end they shall set maximum prices to be paid by pupils
for the various products listed in the Annex that are distributed
on their territory. These prices shall be notified to the Commis-
sion with evidence in support of them.

(a) on presentation of a receipt for the quantities actually

delivered; or

2. Member States shall carry out the policing needed to
ensure compliance with this Regulation.

(b) on the basis of the report of an inspection made by the
competent authority before final payment of the aid, estab-
lishing that the payment requirements have been met; or

(c) if the Member State so authorises, on presentation of an
extract from an account of the supplier by credit of which,
and in no other way,
the quantities delivered for the
purposes of this Regulation are paid for.

include checking of the supporting docu-
for product delivery and of compliance with the

Their action shall
ments
maximum quantities on which aid which can be paid.

3.
mented by physical

The checks specified in paragraph 2 shall be supple-

inspection to check in particular on:

2.
The aid shall be paid by the competent authority within
four months of the day of lodging of the application as referred
to in Article 11(3), unless administrative inquiries have been
initiated into entitlement to it.

(a) the impact of the aid on the price paid by the beneficiary
and compliance with the maximum prices referred to in
paragraph 1;

(b) the records referred to in Article 9;

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(c) use of the subsidised products in accordance with this
Regulation, particularly if there are grounds for suspecting
deflection;

(d) the price paid to the supplier, in order to ensure that it is

not less than the aid.

Article 15

Notifications

1. Within six months of entry into force of this Regulation,
Member States shall notify to the Commission their measures
for applying it, in particular the policing arrangements adopted.

2.

Before 31 December each year they shall notify:

(a) the quantities on which aid was paid during the previous

school year;

(b) a brief account of any information and promotion meas-
ures for milk products undertaken in connection with
distribution of the subsidised products in schools.

Article 16

Repeal

Regulation (EC) No 3392/93 is hereby repealed.

References to that Regulation shall be taken as made to this
one.

Derogations under Article 3(3) of Regulation (EC) No 3392/93
shall remain valid under this Regulation.

Approvals granted pursuant to Article 6 of Regulation (EC) No
3392/93 shall remain valid for the purposes of this Regulation.

Article 17

Entry into force

This Regulation shall enter into force on the seventh day
following its publication in the Official Journal of the European
Communities.

It shall apply from 1 January 2001.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 11 December 2000.

For the Commission

Franz FISCHLER

Member of the Commission

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ANNEX

LIST OF PRODUCTS ELIGIBLE FOR COMMUNITY AID

Category I

(a) heat-treated whole milk;

(b) heat-treated whole milk flavoured with chocolate or otherwise, containing at least 90 % whole milk by weight;

(c) whole milk yoghurt.

Category II

(a) heat-treated milk with a 3 % minimum fat content;

(b) heat-treated milk flavoured with chocolate or otherwise, containing at least 90 % by weight of the milk indicated at

(a);

(c) ‘Piimä/filmjölk’ with a 3 % minimum fat content.

Category III

(a) heat-treated semi-skimmed milk;

(b) heat-treated semi-skimmed milk flavoured with chocolate or otherwise, containing at least 90 % semi-skimmed milk

by weight;

(c) semi-skimmed milk yoghurt;

(d) ‘Piimä/fil’ with a 1,5 % minimum fat content.

Category IV

(a) heat-treated milk with a 1 % minimum fat content;

(b) heat-treated milk flavoured with chocolate or otherwise, containing at leat 90 % by weight of the milk indicated at (a).

Category V

(a) heat-treated skimmed milk;

(b) heat-treated skimmed milk flavoured with chocolate or otherwise, containing at leat 90 % skimmed milk by weight;

(c) skimmed milk yoghurt;

(d) ‘Piimä/fil’ with a less than 1,5 % fat content.

Category VI

Fresh and processed cheeses with a fat content by weight in dry matter of at least 40 %.

Category VII

Cheeses other than fresh and processed, with a fat content by weight in dry matter of at least 45 %.

Category VIII

‘Grana padano’ cheese.

Category IX

‘Parmigiano-Reggiano’ cheese.