Commission Regulation (EC) No 1670/2006 of 10 November 2006 laying down certain detailed rules for the application of Council Regulation (EC) No 1784/2003 as regards the fixing and granting of adjusted refunds in respect of cereals exported in the form of certain spirit drinks (Codified version)
Date: 2006-11-10
Institutions: European Commission
Subjects: cereals, export (EU), export refund, spirits

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COMMISSION REGULATION (EC) No 1670/2006

of 10 November 2006

laying down certain detailed rules for the application of Council Regulation (EC) No 1784/2003 as
regards the fixing and granting of adjusted refunds in respect of cereals exported in the form of
certain spirit drinks

(Codified version)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty
Community,

establishing the European

Having regard to Council Regulation (EC) 1784/2003 of 29
September 2003 on the common organisation of the market
in cereals (1), and in particular Article 18 thereof,

Having regard to Council Regulation (EC) No 2799/98 of 15
December 1998 establishing agrimonetary arrangements for the
euro (2), and in particular Article 3(2) thereof,

Whereas:

(1)

(2)

Commission Regulation (EEC) No 2825/93 of 15
October 1993 laying down certain detailed rules for
the
application of Council Regulation (EEC) No
1766/92 as regards the fixing and granting of adjusted
refunds in respect of cereals exported in the form of
certain spirit drinks (3) has been substantially amended
several times (4). In the interests of clarity and rationality
the said Regulation should be codified.

Article 16 of Regulation (EC) No 1784/2003 provides
that, in so far as it is necessary to take account of the
particular features of the production of certain spirituous
beverages obtained from cereals, the criteria for granting
refunds may be adapted to this particular
export
situation. It would appear necessary to provide for such
adjustment for certain spirit drinks where, on the one
hand, the price of cereals at the moment of export is
not linked to the price of cereals at the moment of
production and, on the other hand, the final product
derives from a mixture of numerous products, so that
it has become impossible to monitor the identity of the

(1) OJ L 270, 21.10.2003, p. 78. Regulation as

(EC) No 1154/2005 (OJ

amended by
L 187,

Commission Regulation
19.7.2005, p. 11).

(2) OJ L 349, 24.12.1998, p. 1.
(3) OJ L 258, 16.10.1993, p. 6. Regulation as last amended by Regu-

lation (EC) No 1633/2000 (OJ L 187, 26.7.2000, p. 29).

(4) See Annex I.

(3)

(4)

(5)

(6)

(7)

cereals incorporated in the final product for exportation,
all the more so since those spirit drinks are also subject
to compulsory ageing of at least three years.

Difficulties of
particular in respect of Scotch whisky,
and Spanish whisky.

this nature have been encountered in
Irish whiskey

The usual system of refunds should, as far as possible, be
applied on a similar basis. A refund should therefore be
paid for cereals meeting the conditions provided for in
Article 23(2) of the Treaty used pro rata in terms of the
quantities of spirit drinks exported. To this end,
the
quantities of such distilled cereals should be multiplied
by an overall, flat-rate coefficient calculated on the basis
of national statistics supplied by the Member States
concerned. Use of the ratio between the total quantities
of spirit drinks concerned which have been exported and
the total quantities which have been sold seems to afford
a fair and simple basis. It is necessary to define what is
meant by ‘total quantities exported’ and ‘total quantities
marketed’. For the purpose of determining the quantities
of cereals distilled and the coefficient,
the quantities
subject
to inward processing arrangements should be
excluded.

It is necessary to make provision for the coefficient to be
adjusted in particular to guard against the possibility that
payments of the refunds might serve to increase stocks
abnormally.

Article 13(3) of Regulation (EC) No 1784/2003 provides
for the possibility of differentiating the refund according
to destination. Therefore, objective criteria should be
provided for which would lead to the abolition of the
refund for certain destinations.

for the quantities distilled subsequently,

The day determining the applicable refund rate should be
fixed. That day should be linked in the first instance to
the time at which the cereals are placed under control
and,
to each
fiscal distillation period. Before the refund is paid proof
must be furnished in the form of a distillation declaration
that the cereals have been distilled. Such a declaration
must contain the information necessary for the calcu-
lation of the refunds. The first day of each fiscal distil-
lation period may also be the operative event for the
agricultural conversion rate pursuant
to Article 3 of
Regulation (EC) No 2799/98.

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(8)

(9)

It is necessary for the purposes of this Regulation to
record that the products have left the Community and
in certain cases to identify their destination as well. It is
thus necessary to employ the definition of exportation
set out in Council Regulation (EEC) No 2913/92 of 12
October 1992 establishing the Community Customs
Code (1) and to use the evidence provided for
in
Commission Regulation (EC) No 800/1999 of 15 April
1999 laying down common detailed rules for the appli-
cation of the system of export refunds on agricultural
products (2).

Article 2

The refunds referred to in Article 1 may be granted for cereals
meeting the conditions laid down in Article 23(2) of the Treaty
and used in the production of the spirit drinks falling within CN
codes 2208 30 32, 2208 30 38, 2208 30 52, 2208 30 58,
2208 30 72, 2208 30 78, 2208 30 82 and 2208 30 88 manu-
factured in accordance with Council Regulation (EEC) No
1576/89 (5).

it

that

to establish the coefficient,

should be
In order
the quantities of
compulsory to provide proof
spirit drinks have been exported.
It is appropriate to
provide that Article 43 of Commission Regulation (EC)
No 1291/2000 of 9 June 2000 laying down common
detailed rules for the application of the system of import
and export licences and advance fixing certificates for
goods
agricultural
returning
special
conditions are met.

products (3),
to Community

apply
if

territory

to
the

should

Article 3

For the purposes of this Regulation:

(a)

‘given distillation period’ means a period corresponding to a
distillation period agreed between the beneficiary and the
customs authorities or other competent authorities for the
purposes of checks on excise duty (fiscal period);

(b) ‘total quantities exported’ means the quantities of spirit
drinks fulfilling the terms of Article 23(2) of the Treaty
and exported to a destination for which the refund applies;

(10)

The Member States should be required to pass on the
necessary information to the Commission.

(c)

(11)

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

HAS ADOPTED THIS REGULATION:

‘total quantities marketed’ means the quantities of spirit
drinks fulfilling the terms of Article 23(2) of the Treaty
which have been finally dispatched from production or
storage facilities with a view to their sale for human
consumption;

(d) ‘placed under control’ means the placing under a customs
control procedure, or under an administrative procedure
offering equivalent assurances, of cereals intended for the
manufacture of the spirit drinks referred to in Article 2.

Article 1

Article 4

This Regulation lays down detailed rules for fixing and
1.
granting export refunds for cereals exported in the form of
spirit drinks as referred to in Article 16 of Regulation (EC)
No 1784/2003 and for which a compulsory ageing period of
at least three years is part of the manufacturing process.

Commission Regulation (EC) No 1043/2005 (4) shall not
2.
apply to the spirit drinks referred to in paragraph 1, save as
otherwise provided in Article 6(1) of this Regulation.

(1) OJ L 302, 19.10.1992, p. 1. Regulation as last amended by Regu-
lation (EC) No 648/2005 of the European Parliament and of the
Council (OJ L 117, 4.5.2005, p. 13).

(2) OJ L 102, 17.4.1999, p. 11. Regulation as last amended by Regu-

lation (EC) No 671/2004 (OJ L 105, 14.4.2004, p. 5).

(3) OJ L 152, 24.6.2000, p. 1. Regulation as last amended by Regu-

lation (EC) No 410/2006 (OJ L 71, 10.3.2006, p. 7).

(4) OJ L 172, 5.7.2005, p. 24.

to be

fixed annually for

The quantities of cereals eligible for the refund shall be the
1.
quantities placed under control and distilled by those entitled to
the refund during a given distillation period, weighted by a
coefficient
each Member State
concerned and applicable to all eligible parties concerned. The
coefficient shall express the average ratio between the total
quantities exported and the total quantities marketed of the
spirit drinks concerned, on the basis of the trend noted in
those quantities during the number of years corresponding to
the average ageing period of the spirit drink in question.

For the purpose of determining the quantities of cereals distilled
and the coefficient, quantities which have been subject
to
inward processing arrangements shall be excluded.

(5) OJ L 160, 12.6.1989, p. 1.

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When the coefficient is calculated, account shall also be taken of
variations in the stocks of one of the spirit drinks in question.

Article 8

For the purposes of this Regulation, cereals may be replaced by
malt.

The coefficient may differ according to the cereal used.

The competent bodies shall at regular intervals check on

2.
the volume actually exported and on the volume of stocks.

In that case the coefficient for calculating the barley equivalent
of malt shall be 1,30.

Article 5

The coefficient referred to in Article 4(1) shall be fixed before 1
July each year.

However, where the malt that is placed under control is green
malt with a moisture content of between 43 % and 47 %, the
coefficient for calculating the equivalent weight of malt with a
moisture content of 7 % shall be 0,57.

It shall apply from 1 October until 30 September of
following year.

the

Article 9

The coefficient shall be fixed in accordance with information
supplied by the Member States on the period 1 January to 31
December of the years preceding the year of fixing.

Article 6

1.
The rate of the refund applicable shall be that fixed in
accordance with the first paragraph of Article 14 of Regulation
(EC) No 1043/2005.

2.
The rate of the refund and the agricultural conversion rate
shall be those applicable on the day on which the cereals are
placed under control.

However, as regards the quantities distilled in each of the fiscal
distillation periods following that in which the placing under
control occurred, those rates shall be those valid on the first day
of each fiscal distillation period concerned.

Article 7

Only distillers established in the Community shall be

1.
entitled to the refund.

The distiller shall communicate to the competent autho-
2.
rities prior to the commencement of each fiscal distillation
period a declaration including all the particulars necessary for
determining the refund, in particular:

(a) a description of the cereals or malt in accordance with the
tariff, where

nomenclature of
necessary broken down by homogeneous lot;

common customs

the

(b) the net weight of the products and the moisture content,

broken down for each lot referred to under (a);

(c) confirmation that the cereals fulfil the conditions laid down

in Article 23(2) of the Treaty;

(d) the place of storage and distillation.

1. Where the situation on the world market or the specific
requirements of certain markets so dictate, the refund shall be
abolished for certain destinations.

During the fiscal distillation period the declaration may be
updated as the distillation process proceeds in order to take
account of
the larger or smaller quantities actually being
distilled.

2.
If the refund is abolished pursuant to paragraph 1, or if it
is reintroduced, and if certain markets become ineligible for
export refunds pursuant to an Act of Accession or agreements
with third countries, the coefficient referred to in Article 4(1)
shall be adjusted. That adjustment shall involve as appropriate,
the exclusion or inclusion, in the total exported quantities used
for calculating that coefficient, of the quantities exported to
those markets for which the refund is abolished or reintroduced.
The adjusted coefficient shall apply from the first day of the
fiscal distillation period following the change in the eligibility of
the markets concerned.

3.
After each fiscal distillation period the distiller shall lodge
with the competent authorities a declaration, hereinafter called a
‘distillation declaration’,
in which he confirms that he has
distilled, during the distillation period concerned, the cereals
set out in the declaration referred to in paragraph 2, in order
to produce one of the spirit drinks in question; he shall indicate
the quantity of distilled products obtained. This declaration shall
be certified by the authorities carrying out the placing under
control.

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The refund shall be paid once proof has been furnished
4.
that the cereals have been placed under control and distilled.

if

the payment shall be the net weight,

The weight of cereals to be taken into consideration for
5.
the
calculation of
moisture content
the moisture
is not more than 15 %.
content of the cereals used is more than 15 % but not more
than 16 %, the weight to be taken into consideration shall be
the net weight reduced by 1 %. If the moisture content of the
cereals used is more than 16 % but not more than 17 %, the
reduction shall be 2 %. If the moisture content of the cereals
used is more than 17 % the reduction shall be two percentage
points for each percentage point of moisture above 15 %.

If

The weight of malt other than green malt, as referred to in
Article 8, which is to be taken into consideration for calculation
of the payment shall be the net weight, if the moisture is not
more than 7 %. If the moisture content of the malt used is more
than 7 % but not more than 8 %, the weight to be taken into
consideration shall be the net weight reduced by 1 %. If the
the malt used is more than 8 % the
moisture content of
reduction shall be two percentage points for each percentage
point of moisture above 7 %.

The Community reference method for determining the moisture
content of cereals and malt intended for production of the spirit
drinks referred to in this Regulation shall be that shown in
Annex IV to Commission Regulation (EC) No 824/2000 (1).

Except in cases of force majeure the documents required for
3.
the granting of the refund must be lodged within 12 months of
the day on which the authorities carrying out the placing under
control accepted the distillation declaration, otherwise enti-
tlement to the refund shall be lost.

4. Where the coefficient is adjusted pursuant to Article 7(2),
refunds incorrectly paid from the date of application of the
adjusted coefficient shall be repaid by the beneficiaries.

Article 13

1.
For the purposes of Article 4, proof shall be provided that
the quantities of spirit drinks which fulfil the conditions laid
down in Article 23(2) of the Treaty have been exported.

The proof applicable shall be that provided for in Regu-

2.
lation (EC) No 800/1999.

3.

For the purposes of this Regulation, ‘export’ means:

(a) export within the meaning of Articles 161 and 162 of

Regulation (EEC) No 2913/92;

Article 10

and

Member States shall take the measures necessary to verify the
accuracy of the declarations referred to in Article 9 and those
relating to the physical control of the cereals, the distillation
process and the use of the distilled product obtained.

Article 11

1.
from
The by-products of processing shall be exempt
control if it has been established that they do not exceed the
quantity of by-products normally obtained.

(b) deliveries to destinations covered by Article 36 of Regu-

lation (EC) No 800/1999.

4.
Products having been placed in a victualling warehouse
to Article 40 of Regulation (EC) No
approved pursuant
800/1999 shall also be considered to have been exported.
When products have been placed in such warehouses, Articles
40 to 43 of the abovementioned Regulation shall apply mutatis
mutandis.

No refund shall be granted where the cereals or malt are

2.
not of sound and fair merchantable quality.

Article 14

1.
Spirit drinks shall be deemed to have been exported on
the day on which customs export formalities were completed.

Article 12

The refund shall be paid by the Member State in which

1.
the declarations referred to in Article 9 are accepted.

The declaration submitted when the customs export for-

2.
malities are completed must contain:

2.
The refund shall be paid only on written application by
the trader. Member States may prescribe a special form to be
used for this purpose.

(a) a description of the spirit drinks concerned, in accordance

with the combined nomenclature;

(1) OJ L 100, 20.4.2000, p. 31.

drinks being exported;

(b) the quantities, expressed in litres of pure alcohol, of spirit

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(c) a description of, or other reference to, the composition of
the spirit drinks such that the type of cereals used can be
determined;

(d) the Member State of production.

3.
For the purposes of paragraph 2(c), if the spirit drink is
obtained from different types of cereals and it results from a
subsequent blending it shall be sufficient to state this in the
declaration.

Article 15

1.
For a quantity of a spirit drink to be deemed to have been
exported, the proof referred to in Article 13 must be submitted
to the designated authorities within six months of the date on
which the customs export formalities are completed.

2.
If proof has not been produced within the prescribed time
limit despite the exporter's best endeavours to obtain it within
that time limit, extensions to the time limit, not exceeding six
months altogether, may be granted.

However, if proof of export is provided outside the time limit
which would permit the export operation to be included with
exports performed during the same calendar year, the export
operation in question shall be
aggregated with exports
performed during the following calendar year.

Article 16

Article 18

The Member

1.
Commission of
competent to apply this Regulation.

States

the names and addresses of

concerned

shall

inform the
the bodies

The Member

2.
the
Commission with the following information before 16 July
each year:

concerned

provide

States

shall

(a)

the quantities of cereals and malt fulfilling the terms of
the Treaty and distilled in the period
Article 23(2) of
from 1 January to 31 December of the preceding year,
broken down in accordance with the combined nomen-
clature;

(b) the quantities of cereals and malt, broken down in
accordance with the combined nomenclature, which were
the subject of inward processing arrangements during the
same period;

(c)

the quantities of spirit drinks covered by Article 2, broken
down in accordance with the categories given in Article 19,
including both quantities exported and quantities marketed
during the same period;

(d) the quantities of

spirit drinks produced under

inward
processing arrangements and exported to third countries
during the same period, broken down in accordance with
the categories given in Article 19;

1. Where the Community transit procedure applies,
the
drinks referred to in Article 13(1) shall be placed under the
Community external transit procedure.

(e)

the quantities of spirit drinks in store on 31 December of
the preceding year and the quantities produced during that
period.

2.
For the purposes of Regulation (EEC) No 2913/92, the
this Regulation
spirit drinks referred to in Article 13(1) of
shall be deemed to be goods in respect of which the requisite
customs export formalities for the granting of export refunds
have been completed. Such drinks may not be placed in free
circulation unless an amount corresponding to the export
refund paid is reimbursed.

3.
The Member States concerned shall also provide the
Commission with the information listed under (a) to (d) for
each calendar quarter before 16 October, 16 January and 16
April, where available.

4.
At the request of the Commission, the Member States
concerned shall also provide the information necessary for
adjusting the coefficient referred to in Article 7(2).

Article 17

Where Article 7 applies, proof must also be provided that the
spirit drinks concerned have reached the destination for which
the refund was fixed.

Article 19

For the purposes of Article 18:

In that event, the proof of importation into a third country in
respect of which the refund applies shall be the proof provided
for in Articles 15 and 16 of Regulation (EC) No 800/1999.

(a)

‘grain whisky’ means whisky made from malt and cereals;

(b) ‘malt whisky’ means whisky made exclusively from malt;

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(c)

‘Irish whiskey, category A’ means whiskey made from malt
and cereals, with less than 30 % malt;

Article 20

Regulation (EEC) No 2825/93 is repealed.

(d) ‘Irish whiskey, category B’ means whiskey made from barley

and malt, with at least 30 % malt;

(e)

the percentages of the various types of cereals used in the
manufacture of the spirit drinks referred to in Article 14(3)
shall be determined on the basis of the total quantities of
the various types of cereals used in manufacturing the spirit
drinks referred to in Article 2.

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 II.

Article 21

This Regulation shall enter into force on the 20th day following
its publication in the Official Journal of the European Union.

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

Done at Brussels, 10 November 2006.

For the Commission
The President

José Manuel BARROSO

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ANNEX I

Repealed Regulation with its successive amendments

Commission Regulation (EEC) No 2825/93

(OJ L 258, 16.10.1993, p. 6)

Commission Regulation (EC) No 3098/94

(OJ L 328, 20.12.1994, p. 12)

Commission Regulation (EC) No 1633/2000

(OJ L 187, 26.7.2000, p. 29)

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ANNEX II

CORRELATION TABLE

Regulation (EEC) No 2825/93

This Regulation

Article 1

Article 2

Article 3

Article 4(1)

Article 4(2)

Article 4(3)

Article 4(4)

Article 5

Article 6

Article 7

Article 8

Article 9

Article 10

Article 11

Article 12

Article 1

Article 2

Article 3

Article 4(1), first and second subparagraphs

Article 4(1), third subparagraph

Article 4(1), fourth subparagraph

Article 4(2)

Article 5

Article 6

Article 7

Article 8

Article 9

Article 10

Article 11

Article 12

Article 13(1) and (2)

Article 13(1) and (2)

Article 13(3), introductory sentence

Article 13(3), introductory sentence

Article 13(3), first indent

Article 13(3), second indent

Article 13(4)

Article 14

Article 15

Article 16

Article 17

Article 18

Article 19

Article 20

—

Article 21, first paragraph

Article 21, second paragraph

—

—

Article 13(3)(a)

Article 13(3)(b)

Article 13(4)

Article 14

Article 15

Article 16

Article 17

Article 18

Article 19

—

Article 20

Article 21

—

Annex I

Annex II