
Article 1 
Community financing shall be provided for all expenditure, other than administrative expenditure, incurred in respect of the supply of agricultural products by the Community as food aid pursuant to Council Regulations or in fulfilment of obligations arising from conventions and agreements concluded by the Council, which devolves on the Community by vitue of the provisions governing the said supplies.
This system shall apply to the expenditure referred to in the preceding paragraph, effected by Member States as from 1 January 1975.
Article 2 

1. That portion of expenditure which corresponds to the export refunds fixed in this connection in accordance with Community rules shall be charged to the Guarantee Section of the EAGGF.
2. The expenditure referred to in Article 1, apart from the refunds mentioned in paragraph 1, shall be entered under Title 9 (Chapter on ‘Food-aid expenditure’).
Article 3 

1. The Member States shall designate the departments and bodies empowered to make payments in respect of the expenditure referred to in this Regulation. Should this not already have been done, they shall inform the Commission as soon as possible of the status of such departments and bodies and of the administrative and accounting rules under which they operate, and shall annually forward any report or part of a report concerning such expenditure drawn up by them or by the relevant supervisory authorities.
2. In respect of this expenditure the Commission shall, after consulting the Committee referred to in Article 11 of Regulation (EEC) No 729/70,
— grant advances to the Member States concerned, periodically and at their request;
— audit the accounts of the Member States on the basis of supporting documents forwarded by them.
Article 4 
The provisions of Articles 8 and 9 of Regulation (EEC) No 729/70 shall be applicable to the expenditure referred to in this Regulation.
Article 5 
Rules for the implementation of this Regulation shall be adopted, as necessary, in accordance with the procedure laid down in Article 13 of Regulation (EEC) No 729/70.
Article 6 
This Regulation shall enter into force on the third 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.Done at Luxembourg, 21 October 1974.
For the Council
The President
Ch. BONNET