11.11.2006 Official Journal of the European Union L 312/33 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 establishing the European Community, Having regard to Council Regulation (EC) 1784/2003 of 29 September 2003 on the common organisation of the market in cereals ('), 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 (%), and in particular Article 3(2) thereof, Whereas: (1)  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 (%) has been substantially amended several times (¥). In the interests of clarity and rationality the said Regulation should be codified. (2  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 export refunds may be adapted to this particular 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 () O] L 270, 21.10.2003, p. 78. Regulation as amended by Commission Regulation (EC) No 1154/2005 (O] L 187, 19.7.2005, p. 11). () O] L 349, 24.12.1998, p. 1. (®) OJ L 258, 16.10.1993, p. 6. Regulation as last amended by Regu- lation (EC) No 1633/2000 (O] L 187, 26.7.2000, p. 29). () See Annex I 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 this nature have been encountered in particular in respect of Scotch whisky, Irish whiskey and Spanish whisky. 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 17842003 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. 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, for the quantities distilled subsequently, 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.