Commission 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 wine with regard to market mechanisms

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 1493/1999 on the common organisation of the market in wine(1), and in particular Articles 24, 25, 26, 33, 34, 35, 36 and 80 thereof,

Whereas:

(1) Title III of Regulation (EC) No 1493/1999 lays down general rules on market mechanisms and refers for the rest to detailed implementing rules to be adopted by the Commission.

(2) Until now, those rules have been contained in a large number of Community regulations. In the interests of both economic operators in the Community and the authorities responsible for applying Community rules, all these provisions should be brought together in a single Regulation.

(3) This Regulation must include the current rules and adapt them to the new requirements of Regulation (EC) No 1493/1999. They must also be simplified and made more coherent and certain gaps must be filled in to ensure that the Community rules in this area are complete. In addition, some rules should be made more specific to ensure greater legal certainty when they are applied.

(4) Article 35(1)(a) of Regulation (EC) No 1493/1999 introduces an aid scheme for the use of grape must and concentrated grape must made from grapes produced in the Community for the purpose of manufacturing grape juice or other comestible products made with this juice.

(5) Such other comestible products should be specified.

(6) The economic aim of the aid scheme is to encourage the use of raw materials of Community origin rather than imported raw materials in the manufacture of grape juice or other comestible products made with this juice. The aid should accordingly be granted to the users of the raw materials, i.e. the processors.

(7) It should be stipulated that the aid is granted only for raw materials with the quality characteristics required for processing into grape juice. It should accordingly be specified in particular that the grapes and grape must covered by a statement must have a density at 20 °C of between 1.055 and 1.100 grams per cubic centimetre.

(8) Application of the aid scheme calls for an administrative system to monitor both the origin of products eligible for the aid and their intended use.

(9) To ensure that the aid scheme and the checks operate properly, the processors concerned should be required to submit a written statement containing the information needed to enable the operations to be monitored.

(10) However, to avoid excessive administration for both the processors and the authorities concerned, no prior written statement should be required from processors using only a small quantity of grapes or grape must each wine year. That quantity should be fixed. The processors concerned must nevertheless inform the competent authorities of their Member State at the beginning of each wine year of their intention to process a certain quantity of grapes or grape must.

(11) When the processor is not the user of the product concerned, particularly where the inspecting authority concerned is in a different Member State than the processor, it is not always easy for that authority to know whether a statement relates to grape must which has not received aid under this Regulation or to grape juice for which an aid application has already been submitted. The transport document accompanying the product concerned should therefore indicate whether an aid application has been submitted.

(12) In order for the aid scheme to significantly increase the use of Community raw materials, it should be stipulated that aid applications must be submitted for a fixed minimum quantity for each product.

(13) Under Article 35(5) of Regulation (EC) No 1493/1999, part of the aid is to be used to organise campaigns to promote the consumption of grape juice. The percentage of the aid earmarked for this purpose should be sufficient to generate adequate funds to finance effective promotion campaigns.

(14) Processing is carried out by both occasional processors and undertakings working continuously. The detailed rules for applying the aid scheme must take account of that difference in structures.

(15) In order to allow the competent authorities of the Member States to conduct the necessary checks, the obligations of processors as regards stock accounts should be specified.

(16) In order to avoid unwarranted expenditure and facilitate checks, a maximum ratio should be specified between the raw materials used and the grape juice obtained, based on normal processing techniques.

(17) For commercial reasons, some operators store the grape juice obtained for a long time before putting it up for consumption. This being the case, a system of advances should be introduced so that the aid can be paid in advance to operators against a suitable security to protect the competent authorities against the risk of undue payment. The time limit for the payment of advances should therefore be specified, together with detailed rules for the release of securities.

(18) To qualify for the aid, the parties concerned must submit an application together with certain supporting documents. To ensure that the system operates in the same way in all the Member States, time limits should be laid down for the submission of applications and for payment of the aid to processors.

(19) Under Article 44(5) of Regulation (EC) No 1493/1999, grape juice may not be turned into wine or added to wine. In order to ensure compliance with that provision, the obligations and special checks devolving on processors and bottlers of grape juice should be specified.

(20) Article 34 of Regulation (EC) No 1493/1999 introduces an aid scheme for concentrated must and rectified concentrated must produced in the Community and used to increase the alcoholic strength of wines.

(21) Under Article 36 of Regulation (EC) No 1493/1999, detailed rules may be laid down, in particular to stipulate the conditions for granting the aid. On that basis, rules should be laid down for applying the measure in the case of small producers. It should also be stipulated that only producers who have fulfilled their Community obligations during a specified period are to be eligible under this measure.

(22) The competent authorities must be informed of enrichment operations involving the addition of concentrated grape must and rectified concentrated grape must and of the quantities of those products which are held. Since the quantities of those products which are or have been used for enrichment must be recorded in the registers provided for in Article 70(2) of Regulation (EC) No 1493/1999, there is no need to require additional documents to be presented in order for the aid to be received.

(23) To ensure uniform application of the aid scheme concerned, the method for establishing the potential alcoholic strength of musts should be harmonised at Community level.

(24) The cost price of grape must used to produce concentrated grape must and rectified concentrated grape must depends on its potential natural alcoholic strength. To take account of this fact and to avoid disrupting the existing pattern of trade, the aid should be differentiated so that a higher amount can be granted for concentrated grape must and rectified concentrated grape must from the southernmost regions of the Community, which traditionally produce must with the highest potential natural alcoholic strength.

(25) Article 35(1)(b) and (c) of Regulation (EC) No 1493/1999 introduces an aid scheme for the use of grape musts and concentrated grape musts produced in wine-growing zones C III (a) and C III (b) to prepare certain products falling within CN code 220600 in the United Kingdom and Ireland and for the use of concentrated grape musts produced in the Community to manufacture certain products marketed in the United Kingdom and in Ireland with instructions for using them to obtain a beverage in imitation of wine.

(26) Products falling within CN code 220600 as referred to in Article 35(1)(c) of Regulation (EC) No 1493/1999 are currently produced exclusively from concentrated grape must. At this stage, therefore, aid should be fixed for the use of concentrated grape must alone.

(27) Application of the aid scheme calls for an administrative system to monitor both the origin of products eligible for the aid and their intended use.

(28) To ensure that the aid scheme and the checks operate properly, the operators concerned should be required to submit written applications giving the information needed to identify the product and enable the operations to be checked.

(29) In order for the aid scheme to significantly increase the use of Community products, it should be stipulated that applications must be submitted for a fixed minimum quantity.

(30) Aid is to be granted only for products having the minimum quality characteristics required for use for the purposes referred to in Article 35(1)(b) and (c) of Regulation (EC) No 1493/1999.

(31) In order to enable the competent authorities of the Member States to conduct the necessary checks, the obligations of processors as regards stock accounts should be specified.

(32) Entitlement to aid is acquired when the processing operations are completed. To allow for technical losses, the quantity actually used should be allowed to be up to 10 % less than the quantity stated in the application.

(33) For technical reasons, operators lay in their stocks a long time before manufacturing the marketed products. This being the case, a system of advances should be introduced so that the aid can be paid in advance to operators against a suitable security to protect the competent authorities against the risk of undue payment. The time limit for the payment of advances should therefore be specified, together with detailed rules for the release of securities.

(34) Under Chapter I of Title III of Regulation (EC) No 1493/1999, private storage aid may be granted for table wine, grape must, concentrated grape must and rectified concentrated grape must. opened segment Under Article 24(2) of that Regulation, the grant of aid is subject to the conclusion of storage contracts. Detailed rules should be laid down covering the conclusion, content, period of validity and effects of such contracts.

(35) The term "producer" should be defined and, in view of the obligations imposed upon such persons, it should be stipulated that producers must be the owners of the products covered by the storage contract.

(36) An effective check must be kept on the products covered by storage contracts. To that end, the intervention agency of a Member State should be allowed to conclude contracts only for quantities stored on the territory of that Member State, and it should be informed of any change in the product or the place of storage.

(37) For the sake of uniformity, contracts should be concluded on the same terms throughout the Community and be sufficiently precise to enable the product concerned to be identified.

(38) Experience of the various schemes for the private storage of agricultural products has shown that it is necessary to specify the extent to which Council Regulation (EEC, Euratom) No 1182/71 is applicable for determining periods, dates and time limits relating to those schemes, and that the dates on which contractual storage periods begin and end should be stated precisely.

(39) Under Article 3(4) of Regulation (EEC, Euratom) No 1182/71, where the last day of a period is a public holiday, Sunday or Saturday, the period expires at the end of the last hour of the following working day. It may not be in the interest of operators for this provision to be applied in the case of storage contracts, since it could result in unequal treatment where the last days of storage are carried over. A derogation must therefore be provided for when the final day of storage under contract is determined.

(40) In order to ensure that the system of contracts has an effect on market prices, contracts should be concluded only for significant quantities.

(41) Storage aid should be restricted to products which have an effect on market prices. Accordingly, only products in bulk should qualify for aid. For the same reason, contracts should cover only products of sufficiently high quality. In the case of table wine, contracts should relate to wines at an advanced stage of preparation, but it must be possible during the contract period to carry out any oenological processes needed to ensure the preservation of the product.

(42) To encourage improvement in quality, the minimum alcoholic strength of wine and must eligible for storage measures should be fixed. To the same end, it should be possible to lay down more stringent conditions for table wine covered by storage contracts, based on the quality of the harvest.

(43) In order to avoid abuse of the system, table wines which have been stored under contract may not subsequently be recognised as quality wines psr.

(44) In order to prevent products covered by a contract from affecting the market situation, marketing and certain actions preparatory thereto should be prohibited during the contractual storage period.

(45) Under the third indent of Article 26(1) of Regulation (EC) No 1493/1999, rules may be adopted allowing grape must covered by a long-term contract to be processed into concentrated grape must or rectified concentrated grape must during the period of validity of the contract. Since such processing is a normal operation, it should be permitted permanently.

(46) Intervention agencies should be notified whenever grape must is processed while under a storage contract, so that they may carry out the necessary checks.

(47) The processing of grape must into concentrated grape must and rectified concentrated grape must reduces the volume of product in storage and consequently brings down storage costs. However, since the product obtained has a higher value, the reduction in storage costs is offset by the rise in interest. It is therefore justified, in cases where the product is processed during storage, for the aid to remain at the level calculated on the basis of the quantity of grape must under contract prior to processing throughout the period of validity of the contract. Moreover, the products obtained must have the characteristics required by the Community rules.

(48) The amount of private storage aid should take into account technical storage costs and interest. Technical storage costs can differ according to the type of product, while the amount of the interest depends on the value of the product. Accordingly, for ease of administration, the amount of aid per hectolitre per day should be fixed for separate groups of table wines and musts. Under Article 25(4) of Regulation (EC) No 1493/1999, the amount of aid for concentrated grape must should be 1,5 times higher than for grape must. However, the amounts fixed in this Regulation may be amended to take account of substantial fluctuations in market prices or interest rates.

(49) It must also be possible to shorten the storage period in cases where the products are intended for export once removed from storage. Proof that the products have been exported should be supplied in the same way as for refunds, in accordance with Commission Regulation (EC) No 800/1999 of 15 April 1999 laying down common detailed rules for the application of the system of export refunds on agricultural products(2).

(50) To ensure that this system is effective while at the same time taking into account the administrative requirements of the intervention agencies, a time limit should be laid down for payment of the aid. However, in the case of long-term contracts, in order to help meet the cash-flow requirements of the producers concerned, the Member States should be authorised to introduce an advance payment scheme involving the lodging of adequate securities.

(51) When a storage contract for table wine expires, producers may, on request, conclude a new contract using simplified formalities provided the conditions for the conclusion of a new contract for the same product are satisfied.

(52) The market for must and concentrated must for grape juice production is expanding and, in order to promote the use of vine products for purposes other than wine-making, permission should be granted for must and concentrated must covered by storage contracts and intended for grape-juice production to be sold from the fifth month of the contract onwards on simple notification by the producer to the intervention agency. This same possibility should apply to promote export of these products.

(53) The products which may be obtained by distillation should be specified, and in particular the minimum quality requirements for neutral alcohol should be laid down. In setting these requirements, technological progress should be taken into account, as should the need to ensure that the alcohol produced can be sold normally on the markets for the different uses.

(54) The checks on products intended for distillation should be intensified.

(55) In the case of voluntary distillation under Articles 29 and 30 of Regulation (EC) No 1493/1999, producers should be required to conclude delivery contracts with distillers, to be approved by the intervention agency, so that operations can be supervised and both parties' compliance with their obligations can be checked. Under such a system the quantitative effects of distillation operations on the market could be more closely monitored. However, the contracts system needs to be adjusted to take account of the fact that some producers wish to entrust distillation to a jobbing distiller while others have distillation plant themselves.

(56) Specific rules are needed to ensure that wine delivered for one of the optional distillation operations comes from the producers' own production. To that end, such producers should be required to provide proof that they have actually produced and hold the wine to be delivered. Rules are also needed to ensure that the essential elements of distillation contracts are adequately checked.

(57) Experience shows that a certain tolerance should be allowed in the quantity and actual alcoholic strength by volume of the wine covered by delivery contracts.

(58) Time limits should be set for payment of aid to distillers by the intervention agencies. It should also be possible for the aid to be paid to distillers in advance. A system of securities is needed to ensure that the intervention agency is not exposed to unjustified risks.

(59) In the case of distillation under Articles 27 and 28 of Regulation (EC) No 1493/1999, experience has shown that it is not always easy for producers to calculate exactly the quantities of products they are required to deliver to meet their obligation. Where producers have delivered almost all the quantities required by the expiry of the period for delivery and have only to make some minor adjustments, the penalty imposed should not be out of proportion to the infringement committed. Such producers should therefore be deemed to have fulfilled their obligations within the time limits, provided they deliver the quantities outstanding in due course.

(60) Distillation under Articles 27 and 28 of Regulation (EC) No 1493/1999 plays a vital role in achieving balance on the market in table wine and indirectly helps to adjust wine-growing potential to requirements. Compulsory distillation must therefore be enforced very strictly and all persons subject to the obligation to distil must actually deliver the required quantities for distillation. In some cases exclusion from intervention measures has not been a sufficient incentive to ensure that persons subject to compulsory distillation fulfil their obligations. Additional Community measures are therefore needed for producers who fail to fulfil their obligations within the time allowed but who do fulfil them before another date to be specified.

(61) The various wine distillation operations may yield neutral alcohol as defined in the Annex to this Regulation, on the basis of criteria relating to its composition. Community methods of analysis should be adopted to ensure that these criteria are complied with.

(62) These methods must be compulsory for all commercial transactions and verification procedures. In view of the trade's limited facilities, a small number of usual procedures should be allowed so that the requisite factors can be determined rapidly and with reasonable accuracy.

(63) The Community methods of analysis should be generally recognised methods and should be uniformly applied.

(64) In order to ensure that the results obtained by applying the analytical methods referred to in Regulation (EC) No 1493/1999 are comparable, the terms relating to the repeatability and reproducibility of results obtained using these methods should be defined.

(65) The buying-in price of wine deliveries should apply ex distiller's premises. In certain cases, transport is provided by the distiller for practical reasons. In order not to disturb this practice, which is often necessary, the transport costs should be deducted from the buying-in price in such cases.

(66) The obligation to distil represents a considerable constraint for isolated producers who make only a small quantity of wine. The costs such producers would incur in transporting their grape marc and wine lees for distillation would be out of all proportion to the return which they could hope to obtain on the alcohol distilled from them. They should therefore be permitted not to make delivery.

(67) For that part of their wine production actually delivered for distillation under Article 28 of Regulation (EC) No 1493/1999, producers should be required to deliver only by-products of wine-making for distillation under Article 27 of that Regulation.

(68) The obligation to distil by-products is a disproportionate constraint for some producers of small quantities in certain wine-growing areas. At the request of their Member State, such producers should be allowed to have their by-products withdrawn under supervision instead of delivering them for distillation.

(69) Producers who deliver their marc for the manufacture of oenocyanin generally supply unfermented grape marc. The process by which oenocyanin is extracted from such marc makes the marc unsuitable for fermentation and distillation thereafter. Those producers should therefore be exempted from the obligation to distil in proportion to the quantity of grape marc they supply for such manufacture.

(70) When wine delivered for distillation is used to manufacture wine vinegar, the volume of alcohol delivered to intervention agencies is likely to be reduced. Producers should therefore be released from their obligation to distil where they deliver to the vinegar industry the wine which would otherwise be necessary to make up the quantity for compulsory distillation.

(71) Where the by-products of wine-making are withdrawn under supervision under Article 27(7) and (8) of Regulation (EC) No 1493/1999, all such by-products must have been withdrawn by the end of the wine year in which they were produced. To this end, an appropriate monitoring system is needed, which will not result in disproportionately high administrative costs, particularly in Member States whose wine production is very low.

(72) Administration of the proof that marc, wine lees and wine have been delivered to a distiller should distinguish between whether the distiller is established in the same Member State as the producer or in another Member State.

(73) Under Article 27(11) and Article 28(5) of Regulation (EC) No 1493/1999, distillers may opt either to receive aid for the product to be distilled or to deliver the product obtained by distillation to the intervention agency. The amount of aid should be fixed on the basis of the market price for the various products which may be obtained by distillation.

(74) To qualify for the aid, the parties concerned must submit an application together with certain supporting documents. The type and number of documents required must reflect the differences between wine and wine lees on the one hand and grape marc on the other. To ensure that the system operates uniformly in all Member States, applications should be lodged and aid paid to distillers within time limits to be laid down. Some proportional allowance should be made for distillers who, although they have met their principal obligations, are late in furnishing proof thereof.

(75) When fixing the price to be paid by the intervention agencies for the products delivered to them, account should be taken of the average cost of transporting and distilling the products concerned.

(76) A single standard price should be fixed for products delivered to intervention agencies in connection with distillation under Article 27 of Regulation (EC) No 1493/1999, irrespective of the origin of the raw materials.

(77) In some regions of the Community, the relation between the quantities of marc and those of wine and wine lees is such that the average distillation costs differ from those used to calculate the standard price. This situation makes it, or can make it, economically impossible in some of these regions to achieve the objective sought through the compulsory distillation of the by-products of wine-making. Prices differentiated according to the raw material of the product obtained by distillation should therefore be fixed at the same time as the standard price, while leaving it to the Member States to decide whether such differentiated prices should be applied in regions where application of the standard price would lead to the difficulties referred to above.

(78) Recourse to this option must not increase the expenditure incurred by the intervention agency and, hence, by the EAGGF. The prices differentiated according to the origin of the alcohol should therefore be correlated with the standard price in such a way that the weighted average of the former does not exceed the standard price.

(79) In the absence of an organised Community market in ethyl alcohol, the intervention agencies responsible for marketing the alcohol which they are obliged to take over following distillation under Articles 27 and 28 of Regulation (EC) No 1493/1999 must resell it at less than the buying-in price. The difference between the buying-in price and the selling price for such alcohol should be borne, at a standard rate, by the European Agricultural Guidance and Guarantee Fund (EAGGF) Guarantee Section.

(80) Article 29 of Regulation (EC) No 1493/1999 provides for distillation to support the wine market and, as a consequence, to facilitate the continuation of supplies of wine distillate to parts of the potable alcohol sector. To take end-of-the-year surpluses into account, the measure should come into effect from 1 September each marketing year.

(81) Since the Commission is responsible for organising the sale of certain wine alcohols, it needs more detailed knowledge of the transactions carried out on the alcohol market. The information that the Member States send the Commission about alcohol from compulsory distillation should therefore be extended to cover alcohol from voluntary distillation held by the intervention agencies.

(82) The required characteristics of products that may be delivered for distillation should be specified in greater detail.

(83) Products entering distilleries should be physically checked using procedures that ensure adequate representativeness.

(84) The consequences to be incurred by producers who fail to comply with their obligations must be specified. However, the Commission should adopt rules on the entitlement to aid of distillers who fail to comply with certain administrative time limits, in particular to take account of the proportionality principle.

(85) Rules are needed to cover cases of force majeure which may prevent distillation from taking place as planned.

(86) To ensure that distillation operations are adequately supervised, distillers should be subject to a system of approval.

(87) To take account of the actual situation on the market in wine for distillation, both distillers and makers of fortified wine should be allowed to fortify such wine for distillation and the overall arrangements should be adjusted accordingly.

(88) Member States should be able to restrict the places at which wine may be fortified for distillation so as to ensure the most appropriate form of supervision.

(89) Detailed rules are needed for payment of the buying-in price for the wine, payment of aid to makers of fortified wine, payment of the aid in advance, and the lodging and release of securities.

(90) Since the addition of an indicator to wine for distillation is an effective method of supervision, it should be stipulated that the presence of such an indicator may not prevent free movement of such wine or of products obtained therefrom.

(91) To take account of the way in which products are transported to distilleries in some Member States, particularly where small quantities are involved, Member States should be authorised to allow them to be transported in bulk.

(92) In the case provided for in Article 32 of Regulation (EC) No 1493/1999, for some types of distillation the buying-in price for wine should be reduced where producers have increased the alcoholic strength by adding sucrose or concentrated grape must for which they have either received or applied for aid under Article 34 of that Regulation.

(93) It is very difficult to link the increase in alcoholic strength obtained by each producer to the wine delivered for distillation. Determining exactly the economic advantage accruing to each producer would therefore require an excessive amount of administrative work liable to delay payment of the aid and affect the whole intervention system. The buying-in price should therefore be reduced on the basis of the average increase in the natural alcoholic strength in each wine-growing zone. To avoid the excessive amount of administrative work needed to verify the increase in alcoholic strength for each producer, the buying-in price for such wine delivered for distillation should be reduced by a fixed amount for each zone or zone division.

(94) It is only fair that producers should receive the full price if they have not increased the alcoholic strength of any part of their table wine by adding either sucrose or concentrated grape must for which they have received aid under Article 34 of Regulation (EC) No 1493/1999. Moreover, producers who have increased the alcoholic strength of less of their production than they deliver for distillation should be paid the full price for the difference between the quantity enriched and the quantity delivered.

(95) The aid for the product obtained by distillation and the price of the products taken over by the intervention agency in connection with distillation under Article 28 of Regulation (EC) No 1493/1999 must be adjusted to take account of the reduction in the buying-in price for the wine.

(96) One feature of the Community market for alcohol is the existence of stocks resulting from intervention under Articles 27, 28 and 30 of Regulation (EC) No 1493/1999(3).

(97) Specific detailed rules are needed for such tendering procedures to ensure that all purchasers are treated equally.

(98) These stocks of alcohol may be disposed of by three different types of tendering procedure, depending on the use and destination for which the alcohol is intended and the quantities of alcohol at 100 % vol. to be disposed of.

(99) Since the aim of tendering procedures is to obtain the most favourable price, where the Commission decides to sell following a tendering procedure the sale must be awarded to the tenderer offering the highest price. Rules are also needed for cases where several tenders for the same lot offer the same price.

(100) Tenders for up to 5000 hectolitres should be admissible, on certain conditions, so that new uses devised for alcohol can be tested at intermediate industrial scale, thereby helping to develop outlets in the longer term for significant quantities of Community alcohol without disrupting the market in spirit drinks.

(101) It is necessary to determine which forms of processing into goods exported under inward processing arrangements may be considered equivalent to real industrial uses.

(102) In order to ensure that alcohol sold under such tendering procedures is actually used for purposes not likely to disrupt the market in alcohol, tenders must give a precise indication of the intended use.

(103) Tenderers should be allowed to submit only one tender per type of alcohol, type of end use and tendering procedure. The legal consequences for tenderers who submit more than one tender should also be specified.

(104) In order not to affect competition with products which the alcohol may replace, the Commission should be free to award no quantities on the basis of tenders received.

(105) So that sales can be awarded in response to the greatest possible number of tenders submitted where the proposed prices are deemed satisfactory and the proposed end uses are suitable for developing new industrial outlets for the product, it should be possible, within certain limits, for tenderers who have submitted such tenders to be awarded a replacement lot. Such a procedure is likely to increase sales of Community alcohol and thus reduce stocks which must otherwise be managed at a high cost to the budget.

(106) Irrespective of the margin of tolerance on the overall quantity of alcohol put up for sale by tender, the price to be paid before a removal order is issued should be calculated on the basis of a quantity of alcohol at 100 % vol., determined to the nearest hectolitre.

(107) Regular tendering procedures should be held for export of the alcohol awarded to the countries of the Caribbean area for final use in the fuel sector so as to give these countries greater continuity of supply. Experience shows that this outlet is most unlikely to disrupt the market and affords a major market opportunity.

(108) The size of the lots put up for sale by tender for export to the Caribbean countries should be linked to normal sea transport capacity, thereby reducing the cost to the traders concerned of providing performance guarantees. The time limits laid down for removing the alcohol awarded should be adjusted accordingly.

(109) Public sales of wine alcohol for use as fuel within the Community should be subject to certain conditions so as to provide undertakings with supplies to some extent and take account of the cost of the investment in processing plant needed for that particular use, without, however, preventing the alcohol put up for sale from being physically moved.

(110) It should be specified that public sales of this type should involve several lots of alcohol where large quantities are set aside for such public sales and that the alcohol in the vats concerned can no longer be physically moved until a removal order has been issued for it.

(111) In the case of sale by tender or public sale for use as fuel, since physical removal and processing of the alcohol must take place over a period of several years, the price per hectolitre of alcohol at 100 % vol. offered by the successful tenderer should be adjusted every three months by applying a coefficient indicated in the relevant notice of invitation to tender, so that the prices to be paid for the alcohol awarded more closely follow the fluctuation of fuel prices on international markets.

(112) In view of the size of some of the vats in which part of the alcohol obtained by compulsory distillation is stored and the considerable length of time that some of this alcohol remains in storage, it is impossible in practice to know exactly what quantity of marketable alcohol is contained in certain storage vats.

(113) This being the case, any tendering procedure ultimately found to relate to a quantity of marketed alcohol amounting to between 99 and 101 % of the quantity of alcohol originally put up for sale should be deemed to have been executed.

(114) Tenderers' statements waiving all claims in respect of the quality and characteristics of the alcohol awarded to them should not extend to hidden defects that by their nature could not be detected by them beforehand and that make the alcohol unfit for the use intended.

(115) Alcohol reserved for certain sales by tender should be denatured where appropriate to prevent it from being used for other purposes. The quantity of alcohol awarded in such cases should be denatured by adding petrol.

(116) A system of securities should be introduced to ensure that tendering procedures are properly conducted and that the alcohol is in fact used for the purpose specified in the relevant invitation to tender. Securities should be set at a level which will prevent any utilisation contrary to the objectives of the tendering procedure that might cause a disturbance on the market in alcohol and spirit drinks produced in the Community in accordance with Article 31 of Regulation (EC) No 1493/1999. The rules laid down in Commission Regulation (EEC) No 2220/85 of 22 July 1985 laying down common detailed rules for the application of the system of securities for agricultural products, which also covers wine, should be taken into account. The primary requirements of the obligations subject to a security should therefore be specified.

(117) Losses may occur when alcohol is being transported by land and sea and processed prior to final use. Account should be taken of the relevant technical standards to evaluate changes in the volume of alcohol recorded on loading and unloading and a specific tolerance limit should be set for each category of loss.

(118) An overall tolerance limit should be set for losses of alcohol due to multiple land and sea transport operations in connection with a tendering procedure for the export of alcohol to be processed in the third countries covered by this Regulation. A higher tolerance limit should also be set for alcohol losses due to processing operations in such third countries by comparison with similar operations in the Community to take account of operational, climatic and other conditions and the fact that some equipment is less efficient in some third countries.

(119) Penalties should be applied for losses exceeding the set tolerance limits by withholding a standard amount of the performance guarantee covering the cost price of the alcohol delivered to the intervention agency in connection with distillation under Articles 27, 28 and 30 of Regulation (EC) No 1493/1999. Part of the performance guarantee should be released only after the successful tenderer has produced evidence concerning all the losses relating to the tender concerned so that the amount of guarantee available is sufficient to penalise such illegal losses of alcohol.

(120) Some end uses intended for alcohol covered by a tendering procedure require all or some of the alcohol awarded to be processed into rectified alcohol. Some of the intended uses for the alcohol sold require prior rectification or dehydration that also produces foul-tasting alcohol unsuitable for the uses initially intended for these tendering procedures. This being the case, the conditions on which performance guarantees can be released should be amended.

(121) The checks made to verify whether the alcohol is used for the purposes specified in the relevant invitations to tender should include at least checks equivalent to those applied to the monitoring of Community-produced alcohol. For the purposes of checks on certain uses or destinations, an international surveillance firm may be used to verify whether the contract awarded is duly fulfilled. In line with the strengthening and development of the internal market, physical checks should be conducted at the place of departure or destination of alcohol transport operations.

(122) The measures provided for in this Regulation are in accordance with the opinion of the Management Committee for Wine,

HAS ADOPTED THIS REGULATION:

Article 1

Purpose

Title III of Regulation (EC) No 1493/1999 and this Regulation lay down the Community rules applicable to market mechanisms in the wine sector.

This Regulation lays down the detailed rules for applying Regulation (EC) No 1493/1999 in particular regarding aid for the use of grapes, grape must and concentrated grape must (Title I), private storage aid (Title II) and distillation (Title III).

Article 2

General provisions

1. Member States may rule that operators starting up their activities for the first time during a given wine year are entitled to aid under this Regulation only for products resulting from the processing of their own grape production.

2. Without prejudice to Article 30 of this Regulation, operators who were subject to the obligations laid down in Articles 27 and 28 of Regulation (EC) No 1493/1999 during the previous wine year shall be eligible for the measures provided for in this Regulation only where they provide evidence that they fulfilled their obligations regarding delivery or withdrawal under supervision during the wine year concerned.

TITLE I

AID FOR THE USE OF GRAPES, GRAPE MUST, CONCENTRATED GRAPE MUST OR RECTIFIED CONCENTRATED GRAPE MUST

CHAPTER I

MANUFACTURE OF GRAPE JUICE

Article 3

Purpose of the aid

1. This Chapter lays down the detailed rules for applying the aid scheme introduced by Article 35(1)(a) of Regulation (EC) No 1493/1999. The aid shall be granted to processors:

(a) who are themselves producers or groups of producers and who process or have processed on their behalf the grapes they have harvested, and grape must and concentrated grape must obtained entirely from their own grape crop, into grape juice or other comestible products manufactured from such grape juice, or

(b) who purchase from producers or groups of producers, either directly or indirectly, grapes produced in the Community and grape must or concentrated grape must, for the purpose of processing them into grape juice or other comestible products manufactured from such grape juice.

The raw materials used must have been obtained exclusively from grapes produced in the Community.

2. At the time it is used to manufacture comestible products, the grape juice must comply with Council Directive 93/77/EEC.

Article 4

Amount of the aid

Aid for the use of grapes, grape must and concentrated grape must under Article 35 of Regulation (EC) No 1493/1999 shall be fixed at the following rates:

(a) Grapes (per 100 kilograms): EUR 4.952

(b) Grape must (per hectolitre): EUR 6.193

(c) Concentrated grape must (per hectolitre): EUR 21.655

Article 5

Technical requirements for processing

The products referred to in Article 4(1) of this Regulation must be of sound and fair merchantable quality and suitable for processing into grape juice. The grape must and the must obtained from the grapes used must have a density at 20 °C of between 1.055 and 1.100 grams per cubic centimetre.

Article 6

Administrative rules applicable to processors

1. Processors who undertake processing operations throughout the wine year and who wish to receive aid under Article 35(1)(a) of Regulation (EC) No 1493/1999 shall submit a schedule to the competent authority of the Member State in which processing takes place before the beginning of the wine year or, where they are manufacturing grape juice for the first time, before beginning such manufacture. The schedule shall include at least the following information:

(a) their name or trade name and address;

(b) the following technical information:

(i) the type of raw materials (grapes, grape must or concentrated grape must),

(ii) the place where the grape must and concentrated grape must intended for processing is stored,

(iii) the place where processing is to be carried out.

The Member States may require quarterly statements and further information for inspection purposes.

2. Processors who carry out processing operations on specified dates and who wish to receive aid under Article 35(1)(a) of Regulation (EC) No 1493/1999 shall submit a written statement to the competent authority, at least three working days before the beginning of those operations, containing in particular:

(a) the information required under (a) and (b) in paragraph 1 of this Article,

(b) the wine-growing zone in which the raw materials were obtained, in accordance with the classification in Annex III to Regulation (EC) No 1493/1999,

(c) the following technical information:

(i) the quantity (in 100 kilograms of grapes or hectolitres of grape must or concentrated grape must),

(ii) the density, in the case of grape must and concentrated grape must,

(iii) the date of commencement and the probable duration of processing operations.

The statement shall relate to a minimum quantity of:

(a) 1300 kg for grapes,

(b) 10 hectolitres for grape must,

(c) 3 hectolitres for concentrated must.

The Member States may require further information with a view to identifying the product.

3. Processors who use no more than 50 tonnes of grapes, 800 hl of grape must or 150 hl of concentrated grape must each wine year to produce grape juice shall submit a statement to the competent authorities at the beginning of the wine year containing the information required under (a) and (b) of paragraph 1 of this Article. They shall not be required to submit the other statements referred to in paragraphs 1 and 2 of this Article.

4. The statements and schedules referred to in paragraphs 1, 2 and 3 shall be submitted in at least two copies, at least one of which shall be returned, duly stamped by the competent authority, to the processor.

5. Processors shall keep stock accounts showing in particular the following information taken from accompanying documents or the registers referred to in Article 70 of Regulation (EC) No 1493/1999:

(a) the quantities, density and wine-growing zone of origin of the raw materials entering their premises each day and, where applicable, the name and address of the seller(s),

(b) the quantities and density of raw materials used each day,

(c) the quantities of grape juice obtained each day after processing,

(d) the quantities of grape juice leaving their premises each day and the name and address of the consignee(s).

Where processors themselves carry out one of the operations referred to in Article 7(1) of this Regulation in their juice-manufacturing premises, possibly mixing the juice with other products, the information referred to in (d) in the preceding subparagraph shall not be required. In such cases, the stock accounts shall show in addition the quantities of grape juice packaged each day.

6. The supporting documents relating to the stock accounts referred to in paragraph 5 shall be made available to the inspection authorities on the occasion of any checks.

Article 7

Administrative rules applicable to users

1. For the purposes of this Article, "user" means all operators other than grape-juice processors who carry out any of the following operations: bottling, packaging or presenting, preparing comestible products by mixing grape juices with other products or storing with a view to sale to one or more undertakings responsible for carrying out the operations referred to above.

2. Where processors do not themselves carry out the operations referred to in paragraph 1, they shall indicate in the accompanying document referred to in Article 70(1) of Regulation (EC) No 1493/1999 whether they have already submitted or intend to submit an application for aid to manufacture grape juice under this Regulation.

3. Where processors dispatch the grape juice to a user within the Community intending to store it prior to bottling or use in the manufacture of other comestible products,

(a) the storage undertaking shall send the document accompanying the grape juice to the competent authority at the place of unloading not later than 15 days after receiving the product,

(b) the competent authority shall stamp the accompanying document referred to in point (a) only after verifying that a quantity at least equivalent to that of the consignment concerned has been dispatched, with an appropriate accompanying document, to a bottler or an undertaking manufacturing comestible products covered by this Regulation, and has been received by that user.

If the requirements set out in point (b) have been fulfilled and once the accompanying document has been received, the competent authority at the place of unloading shall return the copy of the accompanying document referred to in point (a), duly stamped, to the processor/consignor of the grape juice concerned.

4. Where processors dispatch the grape juice to a user within the Community intending to bottle it, the latter shall forward a copy of the accompanying document to the competent authority of the place of unloading not later than 15 days after receiving the product.

Not later than 30 days after receiving the copy of the accompanying document, the competent authority at the place of unloading shall return it, duly stamped, to the processor/consignor of the grape juice concerned.

However, where processors or users intending to bottle the juice so request, the competent authority or authorised department at the place of unloading shall return the copy of the accompanying document, duly stamped, direct to them.

5. Where processors dispatch the grape juice to a user within the Community manufacturing other comestible products made with this juice,

(a) the manufacturer of these products shall send the document accompanying the grape juice to the competent authority not later than 15 days after receiving the product,

(b) the competent authority shall stamp the accompanying document referred to in point (a) only if it has sufficient assurance that the grape juice is actually intended for the manufacture of the comestible products concerned.

Provided such assurance exists, the competent authority at the place of unloading shall return the copy of the accompanying document referred to in this paragraph, duly stamped, to the processor/consignor of the grape juice concerned not later than 30 days after receiving it.

6. In the cases covered by this Article, users shall keep stock accounts showing in particular:

(a) the quantities of unpackaged grape juice entering their premises each day and the name and address of the consignor/processor,

(b) the quantities of unpackaged grape juice leaving their premises each day and the name and address of the consignee(s).

(c) the quantities of grape juice and/or grape juice mixed with other products packaged each day, indicating the quantity of grape juice used to manufacture the products concerned.

7. The supporting documents relating to the stock accounts referred to in paragraph 7 of this Article shall be made available to the inspection authorities on the occasion of any checks.

Article 8

Aid applications

1. In order to qualify for the aid, processors covered by Article 6(1) of this Regulation shall submit one or more applications for aid to the competent authority, no more than six months after the end of the wine year, together with:

(a) a copy of the annual or quarterly statements in their possession or a summary thereof,

(b) a copy or summary of the stock accounts referred to in Article 6(5) of this Regulation. The Member States may require such copies and summaries to be stamped by an authority responsible for inspections.

2. In order to qualify for the aid, processors covered by Article 6(2) of this Regulation shall submit an application for aid to the competent authority no more than six months after completing the processing operations, together with:

(a) a copy of the statement in their possession,

(b) a copy or summary of the stock accounts referred to in Article 6(5). The Member States may require such copies and summaries to be stamped by an authority responsible for inspections,

(c) a copy of the document accompanying the transport of the raw materials to the processor's premises, or a summary thereof. The Member States may require such copies and summaries to be stamped by an authority responsible for inspections.

Aid applications shall state the quantity of raw materials actually processed and the day on which the processing operations were completed.

3. In addition, within six months of the date on which the stamp provided for in Article 7 of this Regulation is affixed or the date of export of the grape juice, the processors concerned shall submit, as the case may be:

(a) the copy of the accompanying document stamped by the competent authority provided for in Article 7,

(b) a copy of the accompanying document bearing a customs stamp certifying export.

4. All the documents required in order to qualify for the aid must be submitted no more than six months after submission of the aid application. If they are submitted during the six months following that deadline, the aid shall be reduced by 30 %. Beyond that date, no aid shall be paid.

Article 9

Conditions for granting the aid

1. Except in cases of force majeure, the aid shall be due only for the quantity of raw materials actually used, not exceeding the following ratio between the product used and the grape juice obtained:

(a) 1.3 for grapes, in 100 kg per hectolitre,

(b) 1.05 for must, in hectolitres per hectolitre,

(c) 0.30 for concentrated must, in hectolitres per hectolitre.

Where the product obtained is concentrated grape juice, those ratios shall be multiplied by 5.

2. Except in cases of force majeure, if processors fail to fulfil one of the obligations devolving on them under this Regulation other than the obligation to process the raw materials covered by their aid applications into grape juice, the aid to be paid shall be reduced by an amount fixed by the competent authority depending on the seriousness of the infringement.

3. In cases of force majeure, the competent authority shall determine the measures which it considers necessary having regard to the circumstances invoked.

Article 10

Payment of the aid

The competent authority shall pay the aid for the quantity of raw materials actually processed no more than three months after receiving all the supporting documents referred to in Article 8, except:

- in cases of force majeure,

- where administrative inquiries have been initiated concerning entitlement to the aid. In such cases, payment shall be made only when the applicant has been recognised as entitled to the aid.

Article 11

Advance payments

1. Processors may request that an amount equal to the aid calculated for the raw materials be paid to them in advance provided that they provide evidence that the raw materials have entered their premises and they have lodged a security in favour of the intervention agency. That security shall be equal to 120 % of the said amount. In such cases, the supporting documents referred to in Article 8 need not be submitted at this stage.

Where processors make several applications for aid under this Regulation, the competent authority or the department authorised for the purpose may allow them to lodge a single security. In such cases, the security shall correspond to 120 % of all the amounts calculated in accordance with the first subparagraph.

2. Advances as referred to in paragraph 1 shall be paid within three months of the presentation of proof that the security has been lodged. However, no advances shall be paid before 1 January of the wine year concerned.

3. After the competent authority or authorised department has checked all the documents referred to in Article 8 of this Regulation, the security referred to in paragraph 1 shall be released in whole or in part, as the case may be, in accordance with the procedure laid down in Article 19 of Commission Regulation (EEC) No 2220/85. Except in cases of force majeure, the security shall be forfeit where the quantity used is less than 95 % of the quantity for which the advance was paid.

Where the quantity used is less than 95 % of the quantity for which the advance was paid, the processor shall continue to be entitled to aid for the quantity actually processed.

Where the quantity used is between 95 and 99,9 % of the quantity for which the advance was paid, the security shall be forfeit only for the quantity not processed during the wine year.

CHAPTER II

AID FOR MUST USED TO INCREASE THE ALCOHOLIC STRENGTH OF WINE PRODUCTS

Article 12

Purpose of the aid

1. Aid as referred to in Article 34(1) of Regulation (EC) No 1493/1999 shall be granted to producers of table wines or quality wines produced in specified regions (quality wines psr) who use concentrated grape must and rectified concentrated grape must produced in the Community to increase the natural alcoholic strength by volume of the products referred to in Annex V(C) to Regulation (EC) No 1493/1999.

2. Notwithstanding paragraph 1, in the case of quantities of ten hectolitres or less per wine year, the Member States may decide to grant the aid to producers of concentrated grape must and rectified concentrated grape must when the purchasers are individual winegrowers using the product exclusively for enriching their own production.

The Member States shall adopt detailed rules for applying this measure and notify the Commission thereof.

Article 13

Amount of the aid

1. The amount of the aid referred to in Article 34(1) of Regulation (EC) No 1493/1999 shall be fixed as follows, by potential alcoholic strength by volume (% vol.) per hectolitre, for the following categories of products:

(a) Concentrated grape must from grapes harvested:

- in wine-growing zones C III (a) and C III EUR 1.699/% vol./hl

- elsewhere EUR 1.466/% vol./hl

(b) Rectified concentrated grape must from grapes harvested:

- in wine-growing zones C III (a) and C III EUR 2.206/% vol./hl

- elsewhere EUR 1.955/% vol./hl

However, for wine years 2000/01, 2001/2002 and 2002/03 for rectified concentrated musts obtained from grapes harvested elsewhere than in wine-growing zones C III (a) and C III (b) and produced in establishments that began production of rectified concentrated musts before 1 January 1986 in Spain or before 30 June 1982 elsewhere, the amount shall be that laid down for products of wine-growing zones C III.

2. The potential alcoholic strength of the products listed in paragraph 1 shall be determined by applying the figures in the table of equivalence in Annex I hereto to the readings at 20 °C from a refractometer used in accordance with the method laid down in Annex XVIII to Regulation (EC) No ..../2000 establishing a Community code of oenological practices and processes.

Article 14

Aid applications

Producers wishing to receive the aid provided for in Article 34(1) of Regulation (EC) No 1493/1999 shall submit an application to the competent intervention agency covering all operations to increase alcoholic strength to which that Article applies. Applications must reach the intervention agency within two months of the date on which the last operation was carried out.

Applications shall be accompanied by the documents relating to the operations for which aid is requested.

Article 15

Conditions for granting the aid

1. Except in cases of force majeure, no aid shall be payable if the producer does not carry out the operation referred to in Article 34(1) of Regulation (EC) No 1493/1999 in accordance with Annex V(C) and (D) to that Regulation.

2. Except in cases of force majeure, where producers fail to comply with any of the requirements of this Regulation other than that referred to in paragraph 1, the aid payable shall be reduced by an amount to be fixed by the competent authority depending on the seriousness of the infringement.

3. In cases of force majeure, the competent authority shall determine the measures which it deems necessary in view of the circumstances invoked.

Article 16

Payment of the aid

The intervention agency shall pay the aid to producers before 31 August following the end of the wine year concerned, except:

(a) in cases of force majeure,

(b) where administrative inquiries have been initiated concerning entitlement to the aid. In such cases, payment shall be made only when the applicant has been recognised as entitled to the aid.

Article 17

Advance payments

1. From 1 January of the wine year concerned, producers may request that an amount equal to the aid calculated for the products used to increase alcoholic strength be paid to them in advance provided that they have lodged a security in favour of the intervention agency. The security shall be equal to 120 % of the aid applied for.

Applications shall be accompanied by such of the documents referred to in the second paragraph of Article 14 as are available. The remaining documents shall be submitted before the end of the wine year.

2. The intervention agency shall pay advances within three months of presentation of proof that the security has been lodged.

3. After the competent authority or the authorised department has checked all the documents, and taking account of the amount to be paid, the security shall be released in whole or in part, as the case may be, in accordance with the procedure laid down in Article 19 of Commission Regulation (EEC) No 2220/85.

CHAPTER III

AID FOR THE MANUFACTURE OF CERTAIN PRODUCTS IN THE UNITED KINGDOM AND IN IRELAND

Article 18

Purpose and amount of the aid

1. Aid as referred to in Article 35(1)(b) and (c) of Regulation (EC) No 1493/1999 shall be granted:

(a) to manufacturers who use concentrated grape must obtained entirely from grapes produced within wine-growing zones C III (a) and C III (b) for the manufacture in the United Kingdom and Ireland of products falling within CN code 220600 for which the use of a composite name including the word "wine" may be allowed by these Member States under Annex VII(C)(3) to Regulation (EC) No 1493/1999, hereinafter called "manufacturers". The amount of the aid shall be EUR 0.2379 per kilogram;

(b) to operators who use concentrated grape must obtained entirely from grapes produced in the Community as the main component in a set of products which they market in the United Kingdom and Ireland, with clear instructions enabling the consumer to obtain therefrom a beverage in imitation of wine, hereinafter called "operators". The amount of the aid shall be EUR 0.3103 per kilogram.

2. To be eligible for aid, concentrated grape must shall be of sound, fair and merchantable quality and suitable for use for the purposes referred to in Article 35(1)(b) or (c) of Regulation (EC) No 1493/1999.

Article 19

Aid applications

1. Manufacturers and operators wishing to receive aid as provided for in Article 35(1)(b) or (c) of Regulation (EC) No 1493/1999 shall submit a written application, between 1 August and 31 July of the wine year concerned, to the competent authority of the Member State in which the concentrated grape must is used.

Applications must be made at least seven working days before the manufacturing operations begin.

However, the period of seven working days may be shortened where the competent authority so authorises in writing.

2. Aid applications shall cover a minimum quantity of 50 kilograms of concentrated grape must.

3. Aid applications shall show, in particular:

(a) the name or business name and the address of the manufacturer or operator;

(b) the wine-growing zone from which the concentrated grape must originates, as defined in Annex III to Regulation (EC) No 1493/1999;

(c) the following technical information:

(i) the place of storage,

(ii) the quantity (in kilograms or, if the concentrated grape must referred to in Article 35(1)(c) of Regulation (EC) No 1493/1999 is put up in containers with contents not exceeding 5 kilograms, the number of containers),

(iii) the density,

(iv) the prices paid,

(v) the place where the operations referred to in Article 35(1)(b) and (c) of Regulation (EC) No 1493/1999 are carried out.

The Member States may require additional information for the purpose of identifying the concentrated grape must.

4. A copy of the accompanying document(s) covering transport of the concentrated grape must to the manufacturer's or operator's premises, drawn up by the competent authority of the Member State, shall be attached to the aid application.

Column 8 of the document shall indicate the wine-growing zone where the fresh grapes used were harvested.

Article 20

Conditions for granting the aid

1. Manufacturers and operators shall be bound to use the full quantity of concentrated grape must covered by an aid application for the purposes referred to in Article 35(1)(b) and (c) of Regulation (EC) No 1493/1999. A shortfall of 10 % of the quantity of concentrated grape must stated in the application shall be tolerated.

2. Manufacturers and operators shall keep stock accounts showing in particular:

(a) the consignments of concentrated grape must purchased and brought each day into their premises, together with the information indicated in Article 19(2)(b) and (c) of this Regulation and the name and address of the seller(s),

(b) the quantities of concentrated grape must used each day for the purposes referred to in Article 35(1)(b) and (c) of Regulation (EC) No 1493/1999,

(c) the consignments of finished products mentioned in Article 35(1)(b) and (c) of Regulation (EC) No 1493/1999 produced and dispatched each day from their premises, together with the name and address of the consignee(s).

3. Manufacturers and operators shall inform the competent authority in writing, within one month, of the date when all the concentrated grape must covered by an aid application has been used for the purposes referred to in Article 35(1)(b) and (c) of Regulation (EC) No 1493/1999, allowing for the shortfall provided for in paragraph 1 of this Article.

4. Except in cases of force majeure, no aid shall be payable where manufacturers or operators fail to fulfil the requirement set out in paragraph 1 of this Article.

5. Except in cases of force majeure, where manufacturers or operators fail to comply with any of the requirements of this Regulation other than that referred to in paragraph 1 of this Article, the aid payable shall be reduced by an amount to be fixed by the competent authority depending on the seriousness of the infringement.

6. In cases of force majeure, the competent authority shall determine the measures which it deems necessary in view of the circumstances invoked.

Article 21

Payment of the aid

The competent authority shall pay aid for the quantity of concentrated grape must actually used not later than three months after receiving the information referred to in Article 20(3) of this Regulation.

Article 22

Advance payments

1. Manufacturers and operators as referred to in Article 18 of this Regulation may apply for an amount equal to the aid to be paid in advance provided they have lodged a security for 120 % of the said amount in favour of the competent authority.

2. Advance payments as referred to in paragraph 1 shall be paid within three months of presentation of proof that the security has been lodged, provided that evidence is supplied that the concentrated grape must has been paid for.

3. After the competent authority has received the information referred to in Article 20(3) of this Regulation, and taking account of the amount of aid to be paid, the security referred to in paragraph 1 shall be released in whole or in part, as the case may be, in accordance with the procedure laid down in Article 19 of Commission Regulation (EEC) No 2220/85.

TITLE II

PRIVATE STORAGE AID

Article 23

Purpose

This Title lays down the detailed rules for applying the storage aid scheme referred to in Chapter I of Title III of Regulation (EC) No 1493/1999.

Article 24

Definitions

For the purposes of this Title, "products" means grape must, concentrated grape must, rectified concentrated grape must and table wines, irrespective of the wine year in which they were produced.

Article 25

Amount of the aid

Storage aid shall be payable throughout the Community at the following standard rates per hectolitre per day:

(a) EUR 0.01837 for grape must;

(b) EUR 0.06152 for concentrated grape must;

(c) EUR 0.06152 for rectified concentrated grape must;

(d) EUR 0.01544 for table wines.

Article 26

Rules applicable to beneficiaries

1. Intervention agencies shall conclude private storage contracts only with producers.

For the purposes of this Title, "producer" means any natural or legal person or group of such persons which carries out, or has carried out on their behalf, any of the following operations:

(a) the processing of fresh grapes into grape must,

(b) the processing of grape must into concentrated grape must or rectified concentrated grape must,

(c) the processing of fresh grapes, grape must or grape must in fermentation into table wine.

The organisations referred to in Article 39 of Regulation (EC) No 1493/1999 shall be treated as producers for the quantities obtained by their members. The individual members delivering wine covered by a private storage contract shall be responsible for fulfilling the obligations referred to in Article 2 of this Regulation.

2. Producers may conclude contracts only for products:

- produced by them, or

- produced on their responsibility and which they own, or

- in the case of producer organisations as referred to in the third subparagraph of paragraph 1, produced on the responsibility of their members.

3. The intervention agency of a Member State may conclude contracts only for products stored on the territory of that Member State.

4. Products may not simultaneously be the subject of both a private storage contract and the arrangements referred to in Article 5(1) of Council Regulation (EEC) No 565/80.

Article 27

Characteristics of products eligible for aid

When contracts are concluded:

(a) the grape musts concerned must have been obtained exclusively from varieties classified as wine grapes in accordance with Article 19 of Regulation (EC) No 1493/1999 and may not have a natural alcoholic strength by volume lower than the minimum natural alcoholic strength laid down for the wine-growing zone in which they originate,

(b) table wines:

(i) must comply with the minimum quality requirements fixed in Annex II to this Regulation for the category for which the contract is concluded;

(ii) must have a reducing sugar content not greater than two grams per litre, except in the case of table wines from Portugal, which must have a reducing sugar content not greater than four grams per litre;

(iii) must display a satisfactory 24-hour exposure to air,

(iv) must be free of bad tastes.

(c) The radioactivity levels of the products referred to in Article 24 of this Regulation may not exceed the maximum levels permitted under Community rules. However, the level of radioactive contamination of products shall be monitored only if the situation so requires and only during the period necessary.

Article 28

Quantities eligible for aid

1. The total quantity of products for which producers conclude storage contracts may not exceed the quantity stated in their production declaration for the wine year concerned, submitted in accordance with Article 18(1) of Regulation (EC) No 1493/1999, plus any quantities they obtained after the date on which their declaration was submitted and recorded in the registers referred to in Article 70 of Regulation (EC) No 1493/1999.

2. Contracts shall cover a minimum quantity of 50 hectolitres in the case of table wine, 30 hectolitres in the case of grape must and 10 hectolitres in the case of concentrated grape must and rectified concentrated grape must.

Article 29

Conclusion of contracts

1. Producers may conclude contracts provided they supply the following information for each container in which the product concerned is stored:

(a) details enabling the product to be identified,

(b) the following analysis data:

(i) the colour,

(ii) the sulphur dioxide content,

(iii) the absence of hybrids, in the case of red products, as demonstrated by analysis for malvidol diglucoside.

For grape must, concentrated grape must and rectified concentrated grape must, the following information shall also be provided:

(c) the reading obtained at a temperature of 20 °C with a refractometer used in accordance with the method referred to in the Annex to Commission Regulation (EEC) No 558/93. A disparity of 0.2 shall be tolerated when the reading is checked by the authorities.

For table wine, the following analysis data shall also be provided:

(d) the total alcoholic strength by volume,

(e) the actual alcoholic strength by volume,

(f) the total acidity, expressed in grams of tartaric acid per litre or in milliequivalents per litre; however, Member States may waive this requirement for white wines,

(g) the volatile acid content, expressed in grams of acetic acid per litre or in milliequivalents per litre; however, Member States may waive this requirement for white wines,

(h) the reducing sugar content,

(i) behaviour in air over 24 hours,

(j) the absence of bad tastes.

The above analysis data shall be established by an official laboratory as referred to in Article 72 of Regulation (EC) No 1493/1999 within 30 days before the contract is concluded.

2. The Member States may limit the number of contracts that a producer can sign each wine year.

3. Contracts for table wines may not be concluded before the date of the first racking of the wine concerned.

4. Producers wishing to conclude storage contracts for table wines shall, when submitting their applications, advise the intervention agency of the total quantity of table wine they have produced during the current wine year.

To that end, they shall submit a copy of the production declaration(s) provided for in Article 18(2) of Regulation (EC) No 1493/1999 and, where applicable, of the registers referred to in Article 29 of this Regulation. In cases where the declaration is not yet available, a provisional attestation may be produced.

5. Without prejudice to Article 25(2) of Regulation (EC) No 1493/1999, contracts shall contain at least:

(a) the name and address of the producers concerned,

(b) the name and address of the intervention agency,

(c) the type of product, classified as indicated in Article 25 of this Regulation,

(d) the quantity,

(e) the place of storage,

(f) the first day of the storage period,

(g) the amount of aid in euros.

For table wine, contracts shall also include:

(h) a statement that the first racking has taken place,

(i) a clause to the effect that the volume may be reduced by a percentage to be determined by the Commission in accordance with the procedure laid down in Article 75 of Regulation (EC) No 1493/1999 should the total volume covered by contracts significantly exceed the average volumes covered in the last three wine years; such reduction may not reduce the quantities in storage below the minimum levels referred to in Article 28(2). Where this clause is applied, the full amount of the aid due for the period prior to the reduction shall remain payable.

6. The Member States may require further information with a view to identifying the product concerned.

Article 30

Derogation from Article 2 of this Regulation

The Member States may authorise the conclusion of contracts before producers have supplied the evidence referred to in Article 2 of this Regulation provided such contracts include a statement by producers certifying that they have met the obligations referred to in that Article or fulfil the requirement referred to in Article 58 of Title III of this Regulation and that they undertake to deliver the remaining quantities needed to comply fully with their obligations within the time limit laid down by the competent national authority.

The evidence referred to in the first paragraph shall be supplied before 31 August of the wine year concerned.

Article 31

Beginning of the storage period

1. The first day of the storage period shall be the day following the date on which the contract is concluded.

2. However, if a contract relates to a storage period beginning after the day following that on which it is concluded, the first day of the storage period may not be later than 16 February.

Article 32

End of the storage period

1. Storage contracts for grape musts, concentrated grape musts and rectified concentrated grape musts shall expire between 1 August and 30 November following the date of conclusion.

2. Storage contracts for table wines shall expire between 1 September and 30 November following the date of conclusion.

3. To determine the expiry date, producers shall send the intervention agency a statement specifying the last day of validity of the contract. The Member States shall lay down the requirements for presenting these statements.

In the absence of a statement, contracts shall expire on 30 November.

4. Producers who have not applied for an advance under Article 38 of this Regulation may sell the grape must or concentrated grape must for exportation or manufacture of grape juice from the first day of the fifth month of storage.

In such cases, producers shall inform the intervention agency in accordance with paragraph 3.

The intervention agencies shall ensure that the products are actually used for the purpose stated.

Article 33

Early termination of the contract at the request of the producer

1. Producers who have not applied for an advance under Article 38 of this Regulation may terminate storage contracts as of 1 June provided the Commission so authorises in the light of market trends, information on stocks and harvest forecasts.

2. In addition, where the Commission decides to reduce the quantities covered by contracts in accordance with Article 29(5)(i) of this Regulation, producers may unilaterally terminate their contract wholly or in part in the month following the publication of that decision.

Article 34

Detailed implementing rules relating to storage

1. Throughout the storage period and until the last day of validity of the contract, products in storage:

(a) must comply with the relevant definitions in Annex I to Regulation (EC) No 1493/1999,

(b) must retain at least the minimum alcoholic strength required for the category of table wine concerned at the time of conclusion of the contract,

(c) may not be kept in containers of less than 50 litres capacity,

(d) must remain in bulk, and

(e) in the case of wine, must remain fit for offer or supply for direct human consumption at the end of the storage period.

2. Without prejudice to Article 6, products under contract may undergo only such oenological treatments and processes as are necessary for their preservation. Any variation in volume may not exceed 2 % of the volume entered in the contract in the case of wine and 3 % in the case of grape must. When there has been a change of vat, these percentages are increased by 1 point. Where these percentages are not exceeded for the contract as a whole, the full amount of the aid shall remain payable. Otherwise no aid shall be due.

3. Without prejudice to Article 33 of this Regulation, producers may not sell or in any other way market the product under contract during the period of validity of the contract.

Notwithstanding the first subparagraph, producers may undertake, while a contract is still valid, to send table wine covered by it for distillation under Title III of this Regulation on expiry of the contract.

4. Producers shall inform the intervention agency in advance, within a period to be laid down by the Member State concerned, of any change during the contract period:

(a) in the place of storage, or

(b) in the manner in which the product is put up. In such cases, they shall indicate the containers in which the product is to be definitively stored.

5. Where producers intend to transport the product under contract to a place of storage located elsewhere or to premises not belonging to them, the product may be transported only once the intervention agency, informed pursuant to paragraph 4, has authorised it.

6. Producers who have concluded private storage contracts for grape must may process all or part of that must into concentrated grape must or rectified concentrated grape must during the period of validity of their contract.

Producers who have concluded private storage contracts for concentrated grape must may process all or part of that must into rectified concentrated grape must during the period of validity of their contract.

Producers may have the processing operations referred to in the previous two subparagraphs carried out by a third party provided that the said producers own the products obtained after processing and that they have presented a prior declaration. The Member State concerned shall check these operations.

7. The producers concerned shall inform the intervention agency in writing of the date when the processing referred to in paragraph 6 of this Article is to commence, the place of storage and how the product is put up.

Such notification must reach the intervention agency at least 15 days before the date of commencement of the processing operations.

Within one month of the day of completion of the processing operations, producers shall send the intervention agency an analysis report concerning the product thus obtained, including as a minimum the data required for the product concerned under Article 29 of this Regulation.

8. Where the processing referred to in paragraph 6 is carried out, the amount of storage aid for the product under contract shall be equal to:

(a) the amount referred to in Article 25(a) of this Regulation for the processing referred to in the first subparagraph of paragraph 6,

(b) the amount referred to in Article 25(b) of this Regulation for the processing referred to in the second subparagraph of paragraph 6.

The aid shall be calculated, for the entire storage period, on the basis of the quantity of product covered by the contract before processing.

Article 35

Changes in the product during storage

1. Should all or part of the product under contract cease to satisfy the requirements of Article 34(1) of this Regulation during the period of validity of the contract, the producer shall inform the intervention agency without delay. Such notification shall be supported by an analysis report. The intervention agency shall terminate the contract for the quantity concerned with effect from the date of the analysis report.

2. Should a check carried out by the intervention agency or any other inspecting agency reveal that all or part of the product under contract has ceased to satisfy the conditions laid down in Article 34(1) of this Regulation during the period of validity of the contract, the intervention agency shall terminate the contract for the quantity concerned on the date that it determines.

Article 36

Conditions for granting the aid

1. Except in cases of force majeure,

(a) where producers fail to fulfil their obligations under Article 34(1) to (5) and (7) of this Regulation or refuse to submit to checks, no aid shall be payable;

(b) where producers fail to fulfil one of their obligations under this Regulation or under the contract, other than those referred to in (a) above, the aid shall be reduced by an amount determined by the competent authority depending on the seriousness of the infringement.

2. In cases where force majeure is recognised, the intervention agency shall take such action as it considers necessary having regard to the circumstances involved.

Article 37

Payment of the aid

1. The aid shall be paid not later than three months after the expiry date of a contract, except:

(a) in cases of force majeure,

(b) where administrative inquiries have been initiated concerning entitlement to the aid. In such cases, payment shall be made only when the applicant has been recognised as entitled to the aid.

2. In cases where a contract has been terminated in accordance with Articles 33 or 36 of this Regulation, the aid payable shall be in proportion to the actual duration of the contract. The aid shall be paid not later than three months after the day on which the contract is terminated.

Article 38

Advance payments

1. Producers who have concluded long-term storage contracts may request that an amount equal to the aid calculated when the contract is drawn up be paid to them in advance provided that they have lodged a security for 120 % of the said amount in favour of the intervention agency.

The advance shall be paid not later than three months after the date of submission of proof that the security has been lodged.

The remaining balance shall be paid not later than three months after the date of expiry of the contract.

2. Securities as referred to in paragraph 1 shall be lodged in the form of a guarantee given by an institution meeting criteria laid down by the Member State to which the intervention agency belongs.

Securities shall be released once the balance of aid has been paid.

Where entitlement to the aid is lost in accordance with Article 36(1)(a) of this Regulation, the whole security shall be forfeit.

Where the application of Article 36(1)(b) of this Regulation results in an aid amount that is lower than the sum already paid, the security shall be reduced by 120 % of the amount paid in excess of the aid due. Securities reduced in this way shall be released not later than three months after the date of expiry of the contract.

3. The Member States shall make the necessary adjustments where Article 29(5)(i) is applied.

Article 39

Quality wines

A table wine which has been the subject of a storage contract may not subsequently be recognised as a quality wine psr or used in making a quality wine psr, a quality sparkling wine psr, a quality liqueur wine psr or a quality semi-sparkling wine psr as defined in Article 54(1) of Regulation (EC) No 1493/1999.

TITLE III

DISTILLATION

Introduction

Article 40

Purpose

This Title lays down the detailed rules applicable to distillation as referred to in Chapter II of Title III of Regulation (EC) No 1493/1999.

Article 41

Definitions

1. For the purposes of this Title:

(a) "producer" means:

(i) for the purposes of Chapter I of this Title: any natural or legal person or group of such persons having produced wine from fresh grapes, grape must or partially fermented grape must or from new wine still in fermentation, obtained personally or purchased, or any natural or legal person or group of such persons subject to the obligations referred to in Article 27 of Regulation (EC) No 1493/1999;

(ii) for the purposes of Chapters II and III of this Title: any natural or legal person or group of such persons having produced wine from fresh grapes, grape must or partially fermented grape must, obtained personally or purchased;

(b) "distiller" means any natural or legal person or group of such persons:

(i) distilling wine, wine fortified for distillation or the by-products of wine-making or of any other form of processing grapes, and

(ii) approved by the competent authorities in the Member State in whose territory the distillation premises are located;

(c) "maker of wine fortified for distillation" means any natural or legal person or group of such persons, other than distillers:

(i) processing wine into wine fortified for distillation, and

(ii) approved by the competent authorities in the Member State in whose territory the premises are located;

(d) "competent intervention agency" means:

(i) for the purposes of receiving and approving contracts or declarations relating to the delivery of wine for distillation and receiving and approving contracts relating to the delivery of wine for fortification, the intervention agency designated by the Member State in whose territory the wine is located at the time when the contract or declaration is submitted,

(ii) for the purposes of paying aid to makers of wine fortified for distillation under Article 69, the intervention agency designated by the Member State in whose territory the wine is fortified,

(iii) in all other cases, the intervention agency designated by the Member State in whose territory distillation takes place.

2. For the purposes of this Title, natural or legal persons or groups of such persons other than makers of wine fortified for distillation shall be deemed to be distillers if they:

(a) are approved by the competent authorities in the Member State in which they are established;

(b) buy from a producer as defined in paragraph 1(a) wine or the by-products of wine-making or of any other form of processing of grapes with a view to having them distilled on their own account by an approved distiller, and

(c) pay the producer not less for the products purchased than the minimum buying-in price for the distilled product in question.

Persons or groups deemed to be distillers shall be subject to the same obligations and enjoy the same rights as distillers.

3. Member States may stipulate, in accordance with rules which they determine, that for the purposes of concluding contracts and delivering wine for distillation, associations of wine-growers' cooperatives may on request be deemed to be producers for those quantities of wine produced and handed over by member cooperatives. The latter shall in any case continue to hold the rights and be bound by the obligations laid down in Community rules.

Should an association intend to carry out a distillation operation under this Title in agreement with the wine-growers' cooperatives concerned during a specified wine year, it shall inform the intervention agency thereof in writing. In such cases:

(a) member cooperatives may not individually sign distillation contracts or make deliveries for the distillation concerned,

(b) the quantities of wine delivered for distillation by the said association shall be booked to the member cooperatives on whose behalf the delivery is made.

For the purposes of Article 2 of this Regulation, should one or more member cooperatives fail to comply with the obligations laid down therein, irrespective of the consequences for the latter, the association shall be excluded from deliveries for the distillation concerned, up to the limit of the quantities of wine delivered on behalf of the wine-growers' cooperatives which committed the infringement.

Member States availing themselves of the option provided for in this paragraph shall inform the Commission thereof and shall notify it of the provisions they have adopted for this purpose. The Commission shall inform the other Member States.

Article 42

Approval of distillers

1. The competent authorities of the Member States shall approve the distillers established in their territory who intend to perform distillation operations under this Title and shall draw up a list of the approved distillers. However, these authorities may decide not to include on the list approved distillers who are unable to obtain products of an alcoholic strength of at least 92 % vol. by means of distillation under Chapter I of this Title.

The competent authorities shall be responsible for updating the said list, and the Member States shall forward any subsequent amendments to it to the Commission. The Commission shall publish that list and any amendments to it.

2. The competent authority may withdraw approval, either temporarily or permanently, from distillers failing to meet their obligations under the Community rules.

Article 43

Alcohol obtained by distillation

Only the following products may be obtained by distillation under this Title:

(a) neutral alcohol complying with the definition in Annex III to this Regulation, or

(b) spirits distilled from wine or from grape marc, complying with the definitions in Article 1(4)(d) or (f) of Council Regulation (EEC) No 1576/89 of 29 May 1989 laying down general rules on the definition, description and presentation of spirit drinks(4), or

(c) a distillate or raw alcohol with an alcoholic strength of at least 52 % by volume.

Where the product specified in point (c) in the first subparagraph is obtained, it may be used only under official supervision for:

(i) the production of an alcoholic beverage,

(ii) processing into one of the products referred to in (a) or (b) above, with the exception of spirits distilled from grape marc,

(iii) the production of alcohol for industrial purposes.

Member States shall take the necessary measures to ensure compliance with the obligation laid down in the second subparagraph.

Article 44

Analysis method for neutral alcohol

Annex V to this Regulation sets out the Community methods for the analysis of neutral alcohol as defined in Annex IV hereto.

CHAPTER I

COMPULSORY DISTILLATION

Section I: Distillation of by-products of wine-making

Article 45

Obligation to deliver by-products for distillation

1. Producers required to distil under Article 27 of Regulation (EC) No 1493/1999 shall discharge their obligations by delivering for distillation, not later than 15 July of the wine year concerned:

(a) all of their marc and wine lees to an approved distiller, and

(b) where applicable, any wine to an approved distiller or approved maker of wine fortified for distillation.

Where producers make deliveries to a distiller whose approval has been withdrawn, the quantities supplied may be counted but there shall be no entitlement to Community assistance.

2. Producers who have not made wine or processed grapes in any other way on cooperative premises and who do not produce more than 25 hectolitres of wine or must during the wine year in question shall be free not to deliver any quantities.

In the Italian part of wine-growing zones C and the Portuguese wine-growing zone, persons subject to the obligation referred to in paragraph 1 may be released from that obligation by making use of the possibility provided for in Article 27(8) of Regulation (EC) No 1493/1999 provided they have made wine or processed grapes in any other manner using a quantity corresponding to more than 25 hectolitres but not more than 40 hectolitres of wine.

Article 46

Requirements for by-products delivered for distillation

1. Notwithstanding Article 27(4) of Regulation (EC) No 1493/1999, the amount of alcohol contained in products delivered for distillation by producers delivering marc for the manufacture of oenocyanin shall be at least 5 % of the amount of alcohol contained in the wine; or at least 7 % for white quality wines psr.

2. For the purpose of determining the amount of alcohol to be delivered for distillation in the form of the products specified in Article 48 of this Regulation, the standard natural alcoholic strengths by volume to be applied in the different wine-growing zones shall be:

(a) 8.5 % for zone B,

(b) 9.0 % for zone C I,

(c) 9.5 % for zone C II,

(d) 10.0 % for zone C III,

3. To keep distillation costs within acceptable limits, the minimum average requirements that wine-making by-products must meet on delivery to the distillery shall be the following:

(a) grape marc:

(i) in wine-growing zone B: two litres of pure alcohol/100 kilograms,

(ii) in wine-growing zone C: two litres of pure alcohol/100 kilograms where it is obtained from varieties listed in the classification of vine varieties for the administrative unit concerned as varieties other than wine-grape varieties; 2.8 litres of pure alcohol/100 kilograms where it is obtained from varieties listed in the classification for the administrative unit concerned solely as wine-grape varieties;

(b) wine lees:

(i) in wine-growing zone B: three litres of pure alcohol/100 kilograms, 45 % moisture content,

(ii) in wine-growing zone C: four litres of pure alcohol/100 kilograms, 45 % moisture content,

4. In the case of producers who deliver wine of their own production to the vinegar industry, the amount of alcohol, expressed as pure alcohol, contained in the wine delivered shall be deducted from the amount of alcohol, expressed as pure alcohol, contained in the wine to be delivered for distillation to discharge the obligation referred to in Article 27(3) of Regulation (EC) No 1493/1999.

In the case of producers who deliver wine and by-products of their own production for supervised experiments conducted by the Member States, the provisions on buying-in prices referred to in Article 47 shall apply, and aid shall be paid to the distiller at a rate of EUR 0.277/% vol./hl.

In the case of experiments, the Member State may not exceed 100 tonnes of marc and 100 tonnes of wine lees per experiment.

Article 47

Buying-in price

1. The buying-in price referred to in Article 27(9) of Regulation (EC) No 1493/1999 shall apply to bulk merchandise ex distiller's premises.

2. Distillers shall pay the buying-in price as referred to in paragraph 1 to producers within three months of the day on which the quantity concerned is delivered to the distillery.

However, unless the producer objects, distillers may:

(a) pay the producer on account 80 % of the buying-in price, no more than three months after delivery of the products, or

(b) make the payment on account referred in (a) following delivery of the products and no later that one month after presentation of the invoice to be drawn up for them before 31 August following the close of the wine year concerned.

Distillers shall pay the balance to producers no later than the following 31 October.

Article 48

Aid to be paid to distillers

1. The aid to be paid to distillers for products distilled under Article 27 of Regulation (EC) No 1493/1999 shall be fixed, per % vol. of alcohol and per hectolitre of product obtained by distillation, as follows:

(a) neutral alcohol:

(i) flat-rate aid EUR 0.6279

(ii) aid for marc EUR 0.8453

(iii) (aid for wine and wine lees EUR 0.4106

(b) Spirits distilled from grape marc EUR 0.3985

and a distillate or raw alcohol with an alcoholic strength of at least 52 % by volume

(c) Wine spirits EUR 0.2777

(d) Raw alcohol from wine and wine lees EUR 0.2777

Where the distiller provides evidence that the distillate or raw alcohol obtained by distillation of marc was used otherwise than as spirits distilled from marc, a further amount of EUR 0.3139/% vol./hl may be paid.

2. Differentiated aid for alcohol distilled from marc or from wine and wine lees as referred to in paragraph 1(a):

(a) may be decided on by the Member States where application of the flat-rate aid referred to at (i) makes it or could make it impossible to have one or more of the by-products of wine-making distilled in certain regions of the Community,

(b) must be paid to distillers where one of these raw materials accounts for more than 60 % of the total quantities they have distilled during a given wine year.

3. No aid shall be due for quantities of wine delivered for distillation exceeding the producer's obligation as provided for in Article 45(1) of this Regulation by more than 2 %.

Article 49

Exceptions to the obligation to deliver for distillation

1. The obligations laid down in Article 27 of Regulation (EC) No 1493/1999 shall not apply to:

(a) producers who withdraw by-products of wine-making under supervision under Article 50(1) of this Regulation,

(b) producers of quality sparkling wines of the aromatic type and quality sparkling wines and semi-sparkling wines of the aromatic type