COMMISSION REGULATION (EEC) No 619/93 of 17 March 1993 on improving the  quality of milk in the Community
THE COMMISSION OF THE EUROPEAN COMMUNITIES
,
Having regard to the Treaty establishing the European Economic Community,
Having regard to Council Regulation (EEC) No 1079/77 of 17 May 1977 on a co-responsibility levy and  on measures for expanding the markets in milk and milk products  (1), as last amended by Regulation  (EEC) No 1374/92  (2), and in particular Article 4 thereof,
Whereas provision should be made, amongst the measures for expanding the markets in milk products  referred to in the fourth indent of Article 4 (2) of Regulation (EEC) No 1079/77, for measures to  improve the quality of milk throughout the Community with a view to facilitating the application of  Council Directive 92/46/EEC of 16 June 1992 laying down the health rules for the production and  placing on the market of raw milk, heat-treated milk and milk-based products  (3); whereas the said  Directive must be incorporated into national law before 1 January 1994;
Whereas for administrative reasons the organizations possessing the necessary qualifications and  experience should be invited to propose detailed programmes which these organizations would  themselves carry out;
Whereas, as regards the other arrangements, the main provisions of earlier Regulations, amended in  the light of relevant experience, may be repeated;
Whereas the Management Committee for Milk and Milk Products has not issued an opinion in the time  limit laid down by its Chairman,
1.  Under the conditions laid down in this Regulation, measures to  improve the quality of milk in particular to facilitate the entry into force of Council Directive  92/46/EEC, shall be encouraged throughout the Community.
2.  The measures shall be completed before by 31 December 1995.
3.  The time limit fixed in paragraph 2 shall not prevent subsequent agreement to an extension of  that limit where the party to a contract makes the appropriate application to the competent  authority at least three months before the expiry date and proves that, due to exceptional  circumstances beyond his control, he is unable to meet the deadline originally stipulated. However,  this extension may not exceed six months.
1.  The measures referred to in Article 1 (1) shall be proposed and carried out by  organizations which:
(a)  have the necessary qualifications and experience;
(b)  give guarantees that they are capable of ensuring the satisfactory completion of the work.
2.  Community financing shall be limited to 70  %.
3.  In applying paragraph 2, no account shall be taken of administrative expenses incurred in  carrying out the measures in question.
4.  Financing of the contractor's general expenses, including any expenses incurred by  subcontractors, shall be limited to 2  % of the total eligible amount, up to a maximum of ECU 10   000, on condition that such expenses appear in the proposal. A contractor may only claim the  maximum amount of ECU 10  000 on a single occasion, even if he concludes several contracts. If the  total amount of general expenses exceeds ECU 2  000, they must be fully justified.
1.  Interested parties shall forward to the competent authority designated by the  Member State in which their head office is situated, hereinafter referred to as 'the competent  authority`, detailed proposals concerning the measures referred to in Article 1 (1), together with  a summary setting out the main points of the proposed measures.
Proposals must reach the competent authority by 15 May 1993. Where this date is not complied with,  proposals shall be considered invalid.
2.  Further rules for the submission of proposals shall be as set out in the Annex.
1.  Complete proposals shall include:
(a)  the name and address of the party concerned;
(b)  all details concerning the measures proposed and an indication of the time required for  completion, the expected results and any third party who may be involved;
(c)  the price asked for these measures, net of taxes, expressed in ecus, giving an itemized  breakdown of this amount and showing the corresponding financing plan;
(d)  the most recent report available on the party's activities, unless this is already in the  possession of the competent authority.
2.  Proposals shall be valid only where:
(a)  they are submitted by an applicant fulfilling the conditions laid down in Article 2 (1);
(b)  they are accompanied by an undertaking to comply with the provisions implementation criteria  laid down by the Commission and put at the disposal of the parties concerned by the competent  autority. The implementation criteria shall be attached to the contract and form an integral part  thereof.
1.  By 30 June 1993, the competent authority shall compile a list of all the proposals  received and forward it to the Commission together with copies of each proposal, including any  supporting documents, and a reasoned opinion indicating in particular whether the proposal complies  with the provisions applying.
The competent authority shall examine on a bilateral basis with the Commission and a group of  national experts, all proposals received and any supporting documents.
2.  After consulting the relevant interest groups in the milk industry and following examination of  the proposals by the Management Committee for Milk and Milk Products pursuant to Article 31 of  Council Regulation (EEC) No 804/68  (1), the Commission shall establish as soon as possible a list  of the proposals selected for financing and determine the date by which the competent authorities  shall conclude contracts for the measures selected with the interested parties. The contracts shall  be concluded in as many copies as there are signatories and shall be signed by the parties  concerned and the competent authority. For that purpose the competent authorities shall use  standard contracts to be provided by the Commission.
3.  The competent authority shall inform each of the parties concerned as soon as possible of the  decision taken in respect of the proposal.
4.  Conclusion of the contract shall be conditional upon the lodging of a security equal to 15  %  of the maximum amount qualifying for a Community contribution. The purpose of the security is to  ensure that the contract is properly carried out.
1.  The contract referred to in Article 5 (2) shall include the details referred to in  Article 4 or make reference to them and supplement those details, where necessary, by additional  conditions.
2.  The competent authority shall:
(a)  send a copy of the contract to the Commission forthwith;
(b)  ensure compliance with the conditions of the contract, in particular by means of the following  checks:
-  administrative and accounting checks to verify the costs borne and compliance with the  provisions on joint financing;
-  checks to verify that measures are implemented in accordance with the provisions of the  contract;
-  other on-the-spot checks, where necessary.
Contracting parties must undergo at least two inspections during the period of validity of the  contract.
1.  The Community financing shall be paid by the competent authority to the party  concerned in the form of a single advance transfer by 30 September 1993 at the latest.
2.  For this purpose the party concerned shall lodge a security equal to 120  % of the Community  financing with the competent authority, at the latest when the contract is signed.
3.  The securities referred to in paragraph 2 and in Article 5 (4) shall be released subject to:
(a)  the forwarding to the Commission and to the competent authority of the report referred to in  Article 8 (1) and to verification of the details contained in that report;
(b)  confirmation by the competent authority that the party concerned has fulfilled his obligations  as laid down in the contract; and (c)  confirmation by the competent authority that the party concerned or any third party named in  the contract has spent his own contribution for the purposes laid down.
4.  Where securities are forfeit the amount in question shall be deducted from the European  Agricultural Guidance and Guarantee Fund Guarantee Section, expenditure and more particularly from  that arising out of the measures referred to in Article 4 of Regulation (EEC) No 1079/77.
1.  Each party responsible for one of the measures referred to in Article 1 (1) shall  submit to the competent authority, within four months of the final date fixed in the contract for  execution of the measures, a detailed report on the utilization of the Community funds allocated  and on the results of the measures in question. If the report is submitted later than four months  after that final date, 10  % of the Community contribution shall be withheld for each month  commenced after expiry of that time limit.
2.  The competent authority shall forward to the Commission a statement to the effect that the  contract has been performed satisfactorily together with a copy of the final report.
This Regulation shall enter into force on the seventh day following its publication in  the Official Journal of the European Communities.
This Regulation shall be binding in its entirety and directly applicable in all  Member States.