L 218/12 Official Journal of the European Union 9.8.2006 (Acts whose publication is not obligatory) COMMISSION COMMISSION DECISION of 27 July 2006 excluding from Community financing certain expenditure incurred by the Member States under the Guarantee Section of the European Agricultural Guidance and Guarantee Fund (EAGGF) (notified under document number C(2006) 3331) (Only the Spanish, Greek, English, French, Italian and Portuguese texts are authentic) (2006/554/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Council Regulation (EEC) No 729/70 of 21 April 1970 on the financing of the common agricultural policy (1), and in particular Article 5(2)(c) thereof, Having regard to Council Regulation (EC) No 1258/1999 of 17 May 1999 on the financing of the common agricultural policy (3), and in particular Article 7(4) thereof, Having consulted the Fund Committee, Whereas: (1)  Article 5 of Regulation (EEC) No 729/70, Article 7 of Regulation (EC) No 12581999, and Article 8(1) and (2) of Commission Regulation (EC) No 1663/95 of 7 July 1995 laying down detailed rules for the application of Council Regulation (EEC) No 729/70 regarding the procedure for the clearance of the accounts of the EAGGF  Guarantee Section (}) provide that the Commission is to make the necessary verifications, inform the Member States of its findings, take account of the Member States comments, initiate bilateral discussions with a view to reaching agreement with the Member States concerned and then formally commu- () O] L 94, 2841970, p. 13. Regulation as last amended by Commission Regulation (EC) No 1287/95 (O] L 125, 8.6.1995, p. 1). () OJ L 160, 26.6.1999, p. 103. (®) OJ L 158, 8.7.1995, p. 6. Regulation as last amended by Regulation (EC) No 465/2005 (O] L 77, 23.3.2005, p. 6). nicate its conclusions to them, referring to Commission Decision 94/442[EC of 1 July 1994 setting up a conci- liation procedure in the context of the clearance of the accounts of the European Agricultural Guidance and Guarantee Fund (EAGGF) Guarantee Section (¥). (2)  The Member States have had an opportunity to request that a conciliation procedure be initiated. That oppor- tunity has been used in some cases and the report issued on the outcome has been examined by the Commission. (3)  Under Articles 2 and 3 of Regulation (EEC) No 729/70 and Article 2 of Regulation (EC) No 1258/1999, only refunds on exports to third countries and intervention to stabilise agricultural markets, granted and undertaken respectively according to Community rules within the framework of the common organisation of the agri- cultural markets, may be financed. (4)  In the light of the checks carried out, the outcome of the bilateral discussions and the conciliation procedures, part of the expenditure declared by the Member States does not fulfil these requirements and cannot, therefore, be financed under the EAGGF Guarantee Section. (5)  The amounts that are not recognised as being chargeable to the EAGGF Guarantee Section should be indicated. Those amounts do not relate to expenditure incurred more than twenty-four months before the Commission’s written notification of the results of the checks to the Member States. () OJ L 182, 16.7.1994, p. 45. Decision as last amended by Decision 2001/535[EC (O] L 193, 17.7.2001, p. 25).