2002R0347 — EN — 24.06.2002 — 001.001 — 1
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►B COMMISSIONREGULATION(EC)No347/2002
of25February2002
opening crisis distillation as provided for in Article 30 of Council Regulation (EC) No 1493/1999
fortablewineinFrance
(OJ L 55, 26.2.2002, p. 14)
Amended by:
Official Journal
No page date
►M1Commission Regulation (EC) No 1083/2002 of 21 June 2002 L 164 22 22.6.2002
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COMMISSIONREGULATION(EC)No347/2002
of25February2002
opening crisis distillation as provided for in Article 30 of Council
Regulation(EC)No1493/1999fortablewineinFrance
THE COMMISSION OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Community,
Having regard to Council Regulation (EC) No 1493/1999 of 17 May
1999 on the common organisation of the market in wine(1), as last
amended by Regulation (EC) No 2585/2001(2), and in particular Arti-
cles 30 and 33 thereof,
Whereas:
(1)Article 30 of Regulation (EC) No 1493/1999 provides for the
possibility of opening crisis distillation in the event of excep-tional market disturbance due to major surpluses. Such
measures may be limited to certain categories of wine and/or
certain areas of production and may apply to quality wines psrat the request of the Member State.
(2)By letter of 18 December 2001, the French Governmentrequested that crisis distillation be opened for table wineproduced in France. Further information was forwarded on 18and 29 January 2002.
(3)Production of table wine in France amounted to 21,1 million hlin 1998 and 25,2 million hl in 1999. It stood at 23,4 million hl in2000 and the latest estimates for the current wine year put tablewine production at 22 million hl.
(4)Although the figures for production have declined since thebumper harvest of 1999/2000, stocks at the start of the wineyear show a steep rise. Table wine stocks stood at 12,853million hl in 1997 and 12,086 million hl in 1998. Theyamounted to 10,8 million hl at the start of the 1999/2000 wineyear, 15,5 million hl at the start of 2000/01 and 17,7 million hl
at the start of the current wine year. There has been very great
variation in stocks, particularly in certain wine-growing areas,withtable wine stocks rising by over 200 % since th e beginningof 1999/2000.
(5)This rise in stocks has had a negative impact on prices, espe-cially those for red wine, which have fallen by around 24 %since the start of 1999/2000, a wine year which saw no majorintervention measures.
(6)Over the period 1996/97 to 1998/99 table wine consumption inFrance declined slightly from around 18,3 million hl to 17,9million hl. From 1998/99 it fell first to 17,3 million hl and thendropped very sharply to 15,5 million hl, according to the latest(provisional) figures for 2000/01.
(7)The crisis distillation measures decided during the 2000/01 wineyear have definitely had a positive effect in terms of stabilisingprices for a period, but they have proved insufficient when setagainst the large increase in stocks, which are depressing the
market and preventing a return to balance.
(8)In order to reverse this negative trend in prices and sales, stocks
of table wine should be reduced to a level that can be regardedas normal in terms of covering market requirements, and so deal
with the difficult situation on the market. Stocks that have built
up over the last two years must be reduced to a reasonable level,reflecting more normal consumption requirements.2002R0347 — EN — 24.06.2002 — 001.001 — 2
(1) OJ L 179, 14.7.1999, p. 1.
(2) OJ L 345, 29.12.2001, p. 10.
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(9)Since the conditions laid down in Article 30(5) of Regulation
(EC) No 1493/1999 are still satisfied, a crisis distillation
measure should be opened for a maximum of 4 million hl oftable wine in order to reduce stocks to an acceptable level. Themeasure should apply for a limited period with a view tomaximum effectiveness. No ceiling should be set on the quantitythat individual producers can have distilled because stocks may
vary substantially from one producer to another and they depend
more on sales than on the individual producer's annual output.
(10)The mechanism to be introduced is that provided for in Commis-sion Regulation (EC) No 1623/2000 of 25 July 2000 laying
down detailed rules for implementing Regulation (EC) No
1493/1999 on the common organisation of the market in winewithregard to market mech anisms(
1), as last amended by Regu-
lation (EC) No 2464/2001(2). In addition to the Articles of that
Regulation that refer to the distillation measure provided for inArticle 30 of Regulation (EC) No 1493/1999, other provisions
of Regulation (EC) No 1623/2000 apply, in particular those
concerning the delivery of alcohol to intervention agencies andthe payment of advances.
(11)The price distillers must pay producers should be set at a level
that permits the problems faced to be dealt with by allowing
producers to take advantage of the possibility afforded by thismeasure. That price should not, however, be such that itadversely affects the application of distillation under Article 29of Regulation (EC) No 1493/1999.
(12)The product of crisis distillation must be raw or neutral alcoholonly, for compulsory delivery to the intervention agency in orderto avoid disturbing the market for potable alcohol, which issupplied largely by distillation under Article 29 of Regulation(EC) No 1493/1999.
(13)The measures provided for in this Regulation are in accordancewith the opinion of the Management Committee for Wine,
HAS ADOPTED THIS REGULATION:
Article 1
Crisis distillation as provided for in Article 30 of Regulation (EC) No
1493/1999 is hereby opened for a maximum of ►M13,85◄million
hectolitres of table wine in France.
Article 2
In addition to the provisions of Regulation (EC) No 1623/2000 refer-
ring to Article 30 of Regulation (EC) No 1493/1999, the followingprovisions of Regulation (EC) No 1623/2000 shall apply to themeasure provided for herein:
— Article 62(5) as regards payment by the intervention agency of the
price as referred to in Article 6(2) of this Regulation,
— Articles 66 and 67 as regards advances as provided for in Article
6(2) of this Regulation.
Article 3
Producers may conclude contracts as provided for in Article 65 of
Regulation (EC) No 1623/2000 from 1 to 29 March2002 and from 24
June to 30 September 2002. Contracts shall be accompanied by proof
that a security equal to EUR 5 per hectolitre has been lodged.Contracts may not be transferred.2002R0347 — EN — 24.06.2002 — 001.001 — 3
(1) OJ L 194, 31.7.2000, p. 45.
(2) OJ L 331, 15.12.2001, p. 25.▼M1
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Article 4
1. The Member State shall determine the rate of reduction to be
applied to the above contracts where the overall quantity covered by
contracts presented exceeds that laid down in Article 1.
2. The Member State shall take the administrative steps necessary to
approve the above contracts by 6 May 2002 at the latest in the case ofcontracts concluded in the period 1 to 29 March 2002 and by 10October 2002 at the latest in the case of contracts concluded from 24June to 30 September 2002, shall specify the rate of reduction applied
and the quantity of wine accepted per contract and shall stipulate that
the producer may cancel the contract where the quantity to be distilledis reduced. The Member State shall notify the Commission before 20May 2002 or before 20 October 2002 respectively of the quantities ofsuchwine covered by approved contracts.
3. In the case of contracts concluded from 1 to 29 March 2002, the
wine must be delivered to the distilleries by 31 July 2002 at the latest
and the alcohol obtained must be delivered to the intervention agencyby 31 December 2002 at the latest.
In the case of contracts concluded from 24 June to 30 September 2002,
the wine must be delivered to the distilleries by 30 November 2002 atthe latest and the alcohol obtained must be delivered to the interventionagency by 31 January 2003 at the latest.
5. The security shall be forfeit where no delivery is made within the
time limit laid down.
6. The Member State may limit the number of contracts that indivi-
dual producers may conclude under this distillation measure.
Article 5
The minimum price paid for wine delivered for distillation under this
Regulation shall be EUR 1,914 % vol/hl.
Article 6
1. Distillers shall deliver the product obtained from distillation to the
intervention agency. That product shall be of an alcoholic strength of atleast 92 % vol.
2. The price the intervention agency must pay distillers for raw
alcohol delivered shall be EUR 2,2812 % vol/hl. Distillers may receive
an advance of EUR 1,1222 % vol/hl. on that amount. The advance
shall in that case be deducted from the price actually paid.
Article 7
This Regulation shall enter into force on the day of its publication in
theOfficial Journal of the European Communities .
It shall apply from 1 March 2002.
This Regulation shall be binding in its entirety and directly applicable
in all Member States.2002R0347 — EN — 24.06.2002 — 001.001 — 4
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