Commission Regulation (EC) No 657/2008 of 10 July 2008 laying down detailed rules for applying Council Regulation (EC) No 1234/2007 as regards Community aid for supplying milk and certain milk products to pupils in educational establishments
Date: 2008-07-10
Institutions: European Commission
Subjects: EU control, aid recipient, economic support, educational institution, pupil, terms for aid

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COMMISSION REGULATION (EC) No 657/2008

of 10 July 2008

laying down detailed rules for applying Council Regulation (EC) No 1234/2007 as regards
Community aid for supplying milk and certain milk products to pupils in educational establishments

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Therefore the preparation of meals should be restricted
accordingly.

Having regard to the Treaty
Community,

establishing the European

Having regard to Council Regulation (EC) No 1234/2007 of
22 October 2007 establishing a common organisation of agri-
cultural markets and on specific provisions for certain agri-
cultural products (Single CMO Regulation) (1), and in particular
Article 102 in conjunction with Article 4 thereof,

Whereas:

(1)

(2)

(3)

(4)

(EC) No

2707/2000

Commission Regulation
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 (2) has
times (3). Since
been substantially
further
that Regulation
should be repealed and replaced by a new Regulation
in the interest of clarity and rationality.

amended several
are necessary,

amendments

the fight against obesity, and in order

The aid for supplying milk and certain milk products to
pupils should be available at nurseries, other pre-school
In the
establishments, primary and secondary schools.
light of
to
provide children with healthy dairy products, these type
of schools should be treated equally and have access to
the scheme. To simplify management, consumption by
pupils in residence at school holiday camps should be
excluded.

In order to clarify the application of the aid scheme it
should be stressed that pupils should benefit from the aid
only during school days. Moreover, the total number of
school days should be confirmed by the educational
authority or by the educational establishment of each
Member State, excluding holidays.

Experience has shown monitoring difficulties as regards
the use of subsidised milk products in the preparation of
meals served to pupils. Moreover, this is not an effective
way of attaining the educational purpose of the scheme.

(1) OJ L 299, 16.11.2007, p. 1. Regulation as last amended by
Commission Regulation (EC) No 510/2008 (OJ L 149, 7.6.2008,
p. 61).

(2) OJ L 311, 12.12.2000, p. 37. Regulation as last amended by Regu-

lation (EC) No 1544/2007 (OJ L 337, 21.12.2007, p. 64).

(3) See Annex IV.

(5)

(6)

(7)

(8)

(9)

To take into account the different consumption habits of
milk and certain milk products in the Community and to
respond to the existing health and nutritional tendencies,
the list of eligible products should be extended and
simplified while leaving the possibility for Member
States to determine their own range of products in
compliance with that list.

In order to ensure that the products eligible for aid offer
a high level of health protection, those products should
be prepared in accordance with the requirements laid
down in Regulation (EC) No 852/2004 of
the
European Parliament and of the Council of 29 April
foodstuffs (4), and carry the
2004 on the hygiene of
identification mark required by Regulation (EC) No
853/2004 of
the
Council of 29 April 2004 laying down specific hygiene
rules for food of animal origin (5).

the European Parliament and of

For the purposes of the management and supervision of
the aid scheme an approval procedure for applicants
should be established.

The rate of aid for the various eligible products should be
determined taking into account the rate for milk as laid
down in Article 102 of Regulation (EC) No 1234/2007
as well as technical relations between the products.

As regards the payment of the aid, the requirements to
be met by applicants should be specified and rules on the
lodging of applications, on the checks and sanctions to
be applied by the competent authorities and on the
payment procedure should be laid down.

(10) Under Article 102(4) of Regulation (EC) No 1234/2007,
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.

(4) OJ L 139, 30.4.2004, p. 1, corrected by OJ L 226, 25.6.2004, p. 3.
(5) OJ L 139, 30.4.2004, p. 55, corrected by OJ L 226, 25.6.2004,
p. 22. Regulation as last amended by Commission Regulation (EC)
No 1243/2007 (OJ L 281, 25.10.2007, p. 8).

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Rules on supervision of the aid scheme should be laid
down by the Member States in order to guarantee that
the aid is duly reflected in the price paid by beneficiaries
and that subsidised products are not deflected from their
intended use.

To protect the Community's financial interests, adequate
control measures should be adopted to combat irregula-
rities and fraud. These control measures should involve
full administrative checking supplemented by on-the-spot
checks. The scope, content, timing and reporting of such
should be specified to ensure an
control measures
and uniform approach between Member
equitable
States, taking account of their different scheme imple-
mentation. Furthermore, unduly paid amounts should
be recovered and sanctions should be determined in
order to deter applicants from fraudulent behaviour.

In order to simplify the administrative work of
the
Member States, the calculation of the maximum subsi-
disable quantity for the aid should be made on the basis
of the number of pupils in regular attendance as estab-
lished in the applicant's roll.

Experience has shown that the beneficiaries are not suf-
ficiently aware of the role played by the European Union
in the school milk scheme. The subsidising role of the
European Union in the scheme should therefore be
clearly indicated in each educational establishment parti-
cipating in the school milk scheme.

pre-school

and
schools/other
secondary schools, administered or recognised by the Member
State's competent authority.

establishments,

primary

Article 3

Eligible products

1. Member States may pay the aid on eligible products listed
in Annex I. They may apply stricter standards in compliance
with the requirements for eligible products specified in Annex I.

2.
In the French overseas departments, milk flavoured with
chocolate or otherwise, referred to in Annex I, may be recon-
stituted milk.

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

to this Regulation if

Aid shall only be granted on the products listed in An-
4.
the products comply with the
nex I
requirements of Regulation (EC) No 852/2004 and Regulation
(EC) No 853/2004, and in particular with the requirements
concerning preparation in an approved establishment and the
identification marking requirements specified in Section I of
Annex II to Regulation (EC) No 853/2004.

Article 4

Rate of aid

1.

The aid rates are set out in Annex II.

Certain information related to the school milk scheme
should be forwarded to the Commission each year for
monitoring purposes.

If an aid rate in euro is altered, the rate in force on the
2.
first day of the month shall apply to all quantities supplied
during that month.

(11)

(12)

(13)

(14)

(15)

(16)

The measures provided for in this Regulation are in
accordance with the opinion of
the Management
Committee for the Common Organisation of Agricultural
Markets,

HAS ADOPTED THIS REGULATION:

Article 1

Subject matter

This Regulation lays down rules for applying Regulation (EC)
No 1234/2007 as regards Community aid for supplying certain
milk products to pupils in educational establishments (here-
inafter the aid) under Article 102 of that Regulation.

Article 2

Beneficiaries

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

3.
ficient 1,03 shall be used for conversion into kilograms.

Article 5

Maximum subsidisable quantity

1. Member States shall verify that the maximum 0,25 litre
quantity referred to in Article 102(4) of Regulation (EC) No
1234/2007 is not exceeded, taking into account the number
of school days and the number of pupils in regular attendance
during the period covered by a payment application and taking
into account the coefficient referred to in Article 4(3) of this
Regulation.

2.
For products in categories II to V listed in Annex I in the
verification referred to in paragraph 1 the following equiva-
lences shall be used:

(a) category II: 100 kg = 90 kg of milk;

The beneficiaries of the aid shall be pupils in regular attendance
at the following types of educational establishment: nursery

(b) category III: 100 kg = 300 kg of milk;

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(c) category IV: 100 kg = 899 kg of milk;

(d) category V: 100 kg = 765 kg of milk.

3.
The beneficiaries specified in Article 2 shall benefit from
the aid only on school days. The total number of school days,
excluding holidays, shall be notified by the education authority
or by the educational establishment to the competent authority
of the Member State and, where appropriate, to the applicant.
Pupils shall not benefit from the aid during stays at holiday
camps.

4. Milk and milk products used in the preparation of meals
shall not benefit from the aid.

However, milk and milk products used in the preparation of
meals within the premises of the educational establishment and
which do not involve heat treatment may benefit from the aid.
Moreover, heating of products listed under Category I(a) and (b)
of Annex I may be allowed.

5.
For the purposes of paragraph 4 with regard to differen-
tiating products used in heated preparation and non-heated
preparation and/or direct consumption a coefficient may be
used, established on the basis of quantities used in the past
and/or
the Member State
concerned.

satisfaction of

to the

recipes

Article 6

General conditions for granting the aid

An aid application is only valid if lodged by an applicant
1.
approved in accordance with Articles 7, 8 and 9 for the supply
of Community products listed in Annex I.

2.

Aid can be applied for by:

(a) an educational establishment;

(b) an education authority in respect of the products distributed

to the pupils within its area;

(c)

the supplier of
provides;

the products,

if

the Member State so

(d) an organisation acting on behalf of one or more educational
establishments or education authorities and specifically
established for
the Member State so
provides.

that purpose,

if

Article 7

Approval of applicants

Applicants for aid must be approved for that purpose by the
competent authority of the Member State in which the educa-

tional establishment
located.

to which the products are supplied is

Article 8

General conditions for approval

Approval

1.
commitments by the applicant to the competent authority:

conditional on the

following written

is

(a)

to use the products only for consumption in accordance
with this Regulation by the pupils of its educational estab-
lishment or of the establishments in respect of which it will
apply for aid;

it has been found that

(b) to repay any aid unduly paid, for the quantities concerned,
if
the products have not been
distributed to the beneficiaries referred to in Article 2 or
that it has been paid for quantities other than those estab-
lished in accordance with Article 5;

(c)

to make supporting documents available to the competent
authorities on their request;

(d) to submit to any check decided on by the Member State's
in particular the scrutiny of records

competent authority,
and physical inspection.

2.
Approvals granted under Articles 7, 8 and 9 of Regulation
(EC) No 2707/2000 remain valid for the purposes of this Regu-
lation.

Article 9

Specific conditions for the approval of certain applicants

If the aid is to be applied for by an applicant referred to in
Article 6(2)(c) and (d),
the applicant must make a written
commitment, in addition to those referred to in Article 8, to
keep records of the names and addresses of the educational
establishments or, where appropriate, education authorities
and the products and quantities sold or supplied to these estab-
lishments or authorities.

Article 10

Suspension and withdrawal of approval

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

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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) 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

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

(c)

Article 11

Payment applications

if the Member State so authorises, on presentation of an
alternative proof
the
purposes of this Regulation have been paid for.

the quantities delivered for

that

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

2.
The aid shall be paid by the competent authority within
three months of the day of lodging of the correctly filled and
valid application referred to in Article 11, unless administrative
inquiries have been initiated.

(a)

the quantities distributed by category and subcategory of
product;

(b) the name and address or a unique identification number of
the educational establishment or education authority to
which the information under point (a) relates.

2. Member States shall specify the frequency of applications.
These may cover periods of one to seven months.

Except in cases of force majeure, aid applications must, in
3.
order to be valid, be correctly filled in and be lodged by the last
day of the third 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 one month or less;

(b) by 10 % if the overrun is more than a month but less than

two months.

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

Article 12

Payment of the aid

1. Without prejudice to Article 11(4), the aid shall be paid to
suppliers or organisations referred to in Article 6(2)(c) and (d)
only:

(a) on presentation of a receipt

for the quantities actually

delivered; or

Article 13

Payment of advances

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

a

If

supplier or

an organisation referred

2.
to in
Article 6(2)(c) and (d) applies for an advance the competent
authority may pay it on the basis of the quantities delivered
without requiring the documentary evidence referred to in
Article 12(1). Within one month of the advance being paid,
the supplier or organisation shall forward to the competent
authority the documents required for the final payment of the
aid, unless the latter draws up a report as provided for in
Article 12(1)(b).

Article 14

Price monitoring

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.

2. Member States may set maximum prices to be paid by
beneficiaries for the various products listed in Annex I that are
distributed on their territory.

Article 15

Controls and sanctions

1. Member States shall take all necessary measures to ensure
compliance with this Regulation. These measures shall include
full administrative checking of aid applications, which shall be
supplemented by on-the spot checks as specified in paragraphs
2 to 8.

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Administrative checks shall be conducted on all aid appli-
2.
cations and shall include checking of supporting documents as
defined by the Member States, relating to product delivery and
compliance with the maximum quantities per pupil per day
referred to in Article 5(1).

the educational estab-
least of 1 % of
establishments or at
lishments stated on the applicant's roll, whichever is the greater.

Provided that

is not
the purpose of
7.
jeopardised, advance notice, strictly limited to the minimum
time period necessary, may be given.

control

the

The administrative checks referred to in the first subparagraph
shall be supplemented by on-the spot checks carried out in
particular on:

The competent control authority shall draw up a control
8.
report on each on-the-spot check. The report shall describe
precisely the different items controlled.

(a)

the impact of the aid on the price paid by the beneficiary;

The control report shall be divided into the following parts:

(b) the records referred to in Article 9 including financial
records such as purchases and sales invoices and bank
extracts;

mation:

(a) a general part containing, in particular, the following infor-

(i) the scheme, the period covered, the controlled appli-
cations, quantities of milk products on which the aid
was paid and financial amount involved;

(c) use of the subsidised products in accordance with this Regu-
lation, particularly if there are grounds for suspecting any
irregularity.

(ii) the responsible persons present;

The total number of on-the-spot checks carried out in
3.
respect of each period running from 1 August
to 31 July
shall cover at least 5 % of all the applicants referred to in
Article 6. When the number of applicants in a Member State
is less than hundred, the on-the-spot checks shall be carried out
on the premises of
five applicants. When the number of
applicants in a Member State is less than five, 100 % of the
applicants shall be controlled. The total number of on-the-spot
checks carried out in respect of each period running from 1
August to 31 July shall, moreover, cover at least 5 % of the aid
distributed at national level.

4.
the
On-the-spot checks shall be conducted throughout
period from 1 August to 31 July and shall cover a period of
at least the previous 12 months.

competent

The applicants subjected to on-the-spot checks shall be
5.
selected by the
authority taking due
control
account of the different geographical areas, and on the basis
of a risk analysis taking into consideration in particular the
recurrent nature of errors and the findings of checks carried
out in past years. The risk analysis shall also take account of
the different amount of aid involved and type of applicants
referred to in Article 6(2).

6.
In cases where the applicant referred to in Article 6(2)(b),
(c) and (d) applies for the aid, the on-the-spot check carried out
on the premises of the applicant shall be supplemented by on-
the-spot checks on the premises of at least two educational

(b) a part describing separately the checks carried out and

containing, in particular, the following information:

(i) the documents checked;

(ii) the nature and extent of checks carried out;

(iii) remarks and findings.

9.
For recovery of unduly paid amounts, Article 73(1), (3),
(4) and (8) of Commission Regulation (EC) No 796/2004 (1)
applies mutatis mutandis.

in case of fraud, the
10. Without prejudice to Article 10,
applicant shall,
in addition to the recovery of unduly paid
amounts in accordance with paragraph 9, pay an amount
equal to the difference between the amount initially paid and
the amount the applicant is entitled to.

Article 16

European school milk poster

Educational establishments distributing products in accordance
with this Regulation shall produce or have produced a poster in
accordance with the minimum requirements laid down in
Annex III, to be permanently situated at a clearly visible and
readable place at the main entrance of the establishment.

(1) OJ L 141, 30.4.2004, p. 18.

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Article 17

Notifications

Article 18

Repeal

1.
By 30 November following the end of the previous period
running from 1 August to 31 July, Member States shall provide
the Commission with summary details of the number of parti-
cipating applicants and educational establishments, on-the-spot
checks carried out and the related findings.

Regulation (EC) No 2707/2000 is repealed.

References to the repealed Regulation shall be construed as
references to this Regulation and shall be read in accordance
with the correlation table in Annex IV.

Before 31 January each year Member States shall provide
2.
the Commission with at least the following information related
to the previous period running from 1 August to 31 July:

Article 19

Transitional provision

(a)

the quantities of milk and milk products broken down by
categories and sub-categories on which aid has been paid
during the previous period running from 1 August to 31
July as well as the maximum permissible quantity and its
calculation;

(b) the estimated number of pupils participating in the school

milk scheme.

The form and content of the notifications shall be defined
3.
on the basis of models made available by the Commission to
the Member States. Those models shall not apply until the
Management Committee for Common Organisation of Agri-
cultural Markets has been informed.

Regulation (EC) No 2707/2000 continues to apply for

1.
deliveries carried out before 1 August 2008.

Authorisations granted in accordance with Article 2(3) of
to apply until

2.
Regulation (EC) No 2707/2000 continue
31 December 2008.

Article 20

Entry into force

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

It shall apply from 1 August 2008.

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

Done at Brussels, 10 July 2008.

For the Commission

Mariann FISCHER BOEL
Member of the Commission

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ANNEX I

LIST OF PRODUCTS ELIGIBLE FOR COMMUNITY AID

Category I

(a) heat-treated milk (1);

(b) heat-treated milk with chocolate, fruit juice (2) or flavoured, containing at least 90 % by weight of the milk indicated

in point (a) and containing maximum 7 % of added sugar (3) and/or honey;

(c) fermented milk products with or without fruit juice (2), flavoured or non-flavoured, containing at least 90 % by weight

of the milk indicated in point (a) and containing maximum 7 % of added sugar (3) and/or honey.

Category II

Flavoured and non-flavoured fermented milk products with fruit (4), containing at least 80 % by weight of the milk
indicated in Category I point (a) and containing maximum 7 % added sugar (5) and/or honey.

Category III

Flavoured and non-flavoured fresh and processed cheeses containing at least 90 % by weight of cheese.

Category IV

Grana Padano cheese and Parmigiano Reggiano cheese.

Category V

Flavoured and non-flavoured cheeses, containing at least 90 % by weight of cheese, and not falling under categories III
and IV.

(1) Including lactose free milk drink.
(2) Fruit juice shall be applied in accordance with Council Directive 2001/112/EC of 20 December 2001 relating to fruit juices and certain

similar products intended for human consumption.

(3) For the purpose of this category, sugar shall mean the items listed under CN code 1701 and 1702. In the case of milk- and milk-
derivative-based drinks, energy-reduced or with no added sugar, sweeteners shall be used in accordance with European Parliament and
Council Directive 94/35/EC of 30 June 1994 on sweeteners for use in foodstuffs.

(4) For the purpose of this category, fermented milk products with fruit shall always contain fruit, fruit pulp, fruit purée or fruit juice. For
the purpose of this category fruit shall mean the items listed under Chapter 8 of the Combined Nomenclature excluding nuts and
products containing nuts. Fruit juice, fruit pulp and fruit purée shall be applied in accordance with Council Directive 2001/112/EC of
20 December 2001 relating to fruit juices and certain similar products intended for human consumption.

(5) For the purpose of this category, sugar shall mean the items listed under CN code 1701 and 1702. The sugar added to the fruit shall be
included in the maximum 7 % added sugar. In the case of milk- and milk-derivate-based preparations, energy-reduced or with no added
sugar, sweeteners shall be used in accordance with European Parliament and Council Directive 94/35/EC of 30 June 1994 on
sweeteners for use in foodstuffs.

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ANNEX II

Aid rates

(a) EUR 18,15/100 kg for category I products;

(b) EUR 16,34/100 kg for category II products;

(c) EUR 54,45/100 kg for category III products;

(d) EUR 163,14/100 kg for category IV products;

(e) EUR 138,85/100 kg for category V products.

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ANNEX III

Minimum requirements for the European school milk poster

Poster size: A3 or bigger

Letters: 1 cm or bigger

Title: European school milk

Content: At least the following wording taking into account the type of educational establishment:

‘Our [type of educational establishment (e.g. nursery/pre-school/school)] provides dairy products subsidised by the
European Union under the European school milk scheme’.

It is recommended to emphasise nutritional benefits and nutritional guidelines for children.

Placement: Clearly visible and readable at the main entrance of the educational establishment.

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ANNEX IV

Correlation table

Regulation (EC) No 2707/2000

This Regulation

Article 1

Article 2(1)(a), (b) and (c)
Article 2(2)

Article 2(3)

Article 3
—

Article 3(2), (3) and (4)

Article 4(1)
Article 4(2)

Article 4(3), first subparagraph

Article 4(3), second subparagraph,
Article 4(4)

Article 5
—

Article 6(1)
—

Article 6(2)
Article 7

Article 8
—

Article 9(1)

Article 9(2)

Article 10
Article 11

Article 12(1)(a)

Article 12(1)(b)
Article 12(1)(c)
—

Article 12(2)
Article 12(3)

Article 13(1) and (2)

Article 13(3)

Article 14(1), first subparagraph
Article 14(1), second subparagraph, first sentence

Article 14(1),
sentences

second subparagraph,

second and third

Article 14(2) and (3)
Article 15
—

Article 16
—

Article 17
—

Annex I
—

Annex II
—
—

—

Article 1

Article 2
—

—

Article 3(1), first sentence
Article 3(1), second sentence

Article 3(2), (3) and (4)

Article 4(1)
—

Article 4(2)
—

Article 4(3)
—

Article 5
—

Article 6(1)

Article 6(2)
Article 7

Article 8(1)

Article 8(2)
Article 9
—

Article 10
Article 11

Article 12(1)(a)

Article 12(1)(b)
—

Article 12(1)(c)

Article 12(2)
—

Article 13(1) and (2)
—

Article 14(1)
Article 14(2)
—

—
—

Article 15
—

Article 16
—

Articles 17-20
—

Annex I
—

Annex II
Annex III

Annex IV