COUNCIL REGULATION (EEC) No 822/87 of 16 March 1987 on the common organization of the market in wine

THE COUNCIL OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Economic Community, and in particular Articles 42 and 43 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament(1),

Whereas the basic provisions concerning the organization of the market in wine have been amended a number of times since their consolidation by Regulation (EEC) No 337/79(2), as last amended by Regulation (EEC) No 536/87(3); whereas, by reason of their number, complexity and dispersal among various issues of the Official Journal of the European Communities, the relevant texts are difficult to use and thus lack the clarity which should be an essential feature of all legislation; whereas they should therefore be consolidated anew;

Whereas the provisions of Council Regulation (EEC) No 340/79 of 5 February 1979 determining the types of table wines(4), as amended by Regulation (EEC) No 3805/85, should also be incorporated into this Regulation;

Whereas the operation and development of the common market in agricultural products must be accompanied by the establishment of a common agricultural policy to include in particular a common organization of agricultural markets which may take various forms depending on the product;

Whereas the aim of the common agricultural policy is to attain the objectives set out in Article 39 of the Treaty and, in particular in the wine sector, to stabilize markets and ensure a fair standard of living for the agricultural community concerned; whereas these objectives may be attained by adjusting resources to needs, in particular through the pursuit of a policy of quality;

Whereas a precise definition of products, in particular of table wine, which come within the scope of this Regulation is indispensable for the effective operation thereof;

Whereas, following a period of rapid change in technology and in methods of analysis, enough is now known about rectified concentrated must for it to be defined more closely; whereas, in addition, provision should be made for the possibility for the Council, acting on a proposal from the Commission by a qualified majority, to amend, if necessary, the definition of the product in question on the basis of the development of the abovementioned knowledge;

Whereas the trend in the production of material for the vegetative propagation of grape wines, in particular as regards its breakdown by variety, allows the future development of wine-growing potential to be forecast; whereas the Member States should therefore monitor this trend by means of annual surveys;

Whereas the capacity to control the balance between supply and demand on the wine market depends on knowing the production potential and on having an estimate of the volume of grape must and wine available each year;

Whereas a movement of vineyards may be noted towards land where conditions of cultivation are easier; whereas this movement from the hills to the plains is not always consistent with the natural suitability of land for wine-

growing and is usually accompanied by an increase in yields, sometimes at the expense of quality; whereas, in view of these considerations, it is necessary, for the purpose of controlling production in terms of both quantity and quality, to establish a classification, according to natural suitability for wine-growing, of the land under vines intended for the production of wine and of the land which could be used for growing such vines;

Whereas suitability for wine-growing and alternatives to vineyards for the various areas are based on natural criteria, in particular soil, climate and terrain; whereas an analysis of Community vineyards in the light of such criteria leads to a classification of areas into three categories;

Whereas climatic conditions have a fundamental influence on the natural alcoholic strength by volume of wines which is used as a basis for dividing Community wine-

growing zones can therefore be considered as reflecting climatic conditions and, accordingly, be used as a basis for classifying areas under vines;

Whereas the influence of the soil and the terrain on the quality of a product is strictly conditional upon climatic conditions; whereas the use of such factors as classification criteria must be adjusted to take the climate into account; whereas in one particular case, however, reference to a wine-growing zone does not make it possible to take sufficiently precise account of climatic influences; whereas, therefore, it is necessary to adjust the criteria for classifying areas even within that particular wine-growing zone;

Whereas climatic and soil conditions in wine-growing

zone A and in the German part of wine-growing zone B do not justify the inclusion of areas belonging to these zones in Category 2;

Whereas the situation of the wine market with its large surpluses is deteriorating very rapidly and is likely, in particular in the Community's present financial situation, to jeopardize the attainment of the objectives of Article 39 of the Treaty because of the excessive pressure brought to bear on poducers' incomes;

Whereas, in the light of experience gained in managing the market in wine and of studies carried out, it seems essential to provide for the structural measures needed to balance the market; whereas this does not seem possible unless there is a temporary ban on new planting;

Whereas it is, however, appropriate that provision be made for derogations to be granted for areas intended for the production of quality wines produced in specified regions, hereinhafter referred to as 'quality wines psr', for which demand could by far exceed supply; whereas, this being so, limits on the planting rights acquired under authorizations already granted are justified;

Whereas an exemption from this ban is justified, owing to their small size, in the case of new planting operations carried out in the Member States which produce annually less that 25 000 hectolitres of wines and, in view of their intended use, in the case of new planting of vine varieties classified solely as table grape varieties;

Whereas Member States should also be allowed to authorize new planting to be carried out in the context of consolidation or compulsory purchase in the public interest and new planting carried out under development plans which meet the conditions laid down by the Council in the framework of measures to improve the efficiency of agricultural structures; whereas, however, experience has shown that it is advisable not to give that possibility to Member States where the production of quality wines psr constitutes a predominant part of total wine production;

Whereas Member States should be allowed to authorize new planting in respect of areas intended for the cultivation of mother plantations after the period during which aid for the abandonment of such areas is granted, and in respect of areas used for experiments, since the produce of such areas is not directly intended for the wine market;

Whereas some wine growers have acquired rights under various national laws to carry out new planting; whereas the restoration of market balance could be jeopardized if certain of those rights were exercised during the period when new planting is prohibited; whereas undeniable public interest therefore requires the exercise of such rights to be suspended during than period and their validity to be extended by an equivalent period;

Whereas the structural surpluses which are currently a feature of the wine sector require that the Community's wine-growing potential be reduced; whereas such a reduction may be achieved, albeit gradually, by restricting the exercise of replanting rights; whereas the conditions under which the replanting of vines may take place should be laid down;

Whereas, under the rules concerning the control of planting, experience has shown the advisability of limiting producers' obligations as regards notification only to the notification of operations carried out; it is, however, advisable to allow Member States who so wish to obtain notification before the occurence of the operations so as to ensure compliance with the national measures taken in implementation of Community provisions;

Whereas detailed information should be provided; whereas the Commission should continue to make a report each year to the Council on the development of wine-growing potential; whereas that report should be based on information provided by the producer Member States, collected in the form of individual declarations by producers;

Whereas, in view of traditional production conditions in certain regions of the Community, it is necessary to allow the Member States to adopt more restrictive national rules in respect of the new planting or replanting of vines;

Whereas the cultivation of temporarily authorized vine varieties shoud ultimately be prohibited in order to improve the quality of the wines obtained in the Community; whereas provision should be made for certain derogations from the principle that only varieties included in the classification may be cultivated, in order to allow Member States to investigate the suitability of a vine variety for cultivation and to undertake scientific research, selection and crossing and the production of material for the vegetative propagation of the vine which is intended for export;

Whereas, in order to ensure that the Community provisions relating to wine-growing potential are complied with, it is necessary to prohibit all national aid for the planting of areas cultivated for the production of table wine falling within Category 3;

Whereas it is also advisable to draw up common rules defining at Community level the oenological practices and processes which are the only ones authorized for most wine products; whereas, in order to guarantee a certain quality level, it should be laid down that these practices and processes may only be used for the purpose of ensuring proper vinification and/or proper preservation; whereas the Member States should be allowed to authorize for experimental purposes for a specific period certain oenological practices and processes not provided for in this Regulation;

Whereas coupage is a widespread oenological practice and whereas, in view of its possible consequences, its control is necessary in order to prevent abuse;

Whereas, with a view to limiting the treatment of grape must and wine, by adding certain substances, to those Member States where such oenological practices are traditional, provision should be made for their authorization by the Member States;

Whereas in certain years it may be necessary to permit the enrichment of products suitable for yielding table wine; whereas, however, it is important, in the interests both of the quality and of the market, that such enrichment be subject to certain conditions and limits and that it be applied only to products obtained form certain vine varieties and of a minimum potential natural alcoholic strength; whereas, since production conditions vary considerably between one wine-growing zone of the Community and another, it is essential that account be taken of such variations, in particular in respect of enrichment procedures;

Whereas, in order to enable the Council to take a decision on the measures to be adopted in the field of enrichment, it is necessary to be in possession of very thorough knowledge, going beyond that afforded by the studies already carried out on certain points, of all the scientific, technical and economic aspects of the problem; whereas the Commission should therefore carry out an exhaustive study of the matter with a view to preparing a report to the Council and suitable proposals;

Whereas acidity is an element in assessing the quality and a factor affecting the behaviour of wine; whereas in certain zones of production the acidification of wine is often a necessity; whereas, therefore, such acidification should be authorized subject to certain conditions; whereas, as additional acidification has to be carried out rapidly during the harvest in years when weather conditions have been exceptional, responsibility for the decision to have recourse to it should be transferred to the Member States, subject to the relevant conditions; whereas it is moreover appropriate to permit deacidification of wines in order to correct the acidity level if the deacidification of products upstream of wine has proved to be insufficient;

Whereas sweetening should be controlled in order to avoid excessive enrichment of wine;

Whereas it may be appropriate, for the making of certain wines, to authorize the addition of alcohol; whereas, however, that practice must be strictly controlled;

Whereas it is important to have effective instruments available for intervention which should ensure balance on the market in table wine and a minimum price for such wine; whereas aid for the private storage of table wine and grape must and the various forms of distillation of such wine must meet this requirement; whereas, in order to apply such measures, provision should be made, in particular, in respect of each type of table wine representative of Community production, for fixing a guide price and a threshold price activating the intervention system, on the basis of which intervention measures may be taken;

Whereas the types of table wine must be determined in order to fix guide price and activating prices; whereas the extent to which a type of table wine is representative can be assessed on the basis of the quantity or objective characteristics of the table wine concerned;

Whereas the introduction of a system of harvest and stock declarations and the compilation of an annual forward estimate should enable the statistical information essential for knowledge of the market to be obtained;

Whereas, in order to preserve market balance, provision should be made for long-term private storage contracts to be concluded where, for a wine year, the quantities of table wine available at the beginning of that wine year exceed, by more than four months' supply, the normal utilization for that year;

Whereas it is also advisable to make provision for aid to be granted for the re-storage of table wines which, since they are the subject of a storage contract, may not be marketed and thus might create storage difficulties for wines from the new harvest;

Whereas, in order to have to hand a flexible mechanism for dealing with the various situations on the market in

table wine, the following forms of distillation should

be distinguished: preventive distillation, compulsory distillation, distillation supplementing compulsory distillation, distillation supplementing private storage, compulsory distillation of by-products of winemaking, and compulsory distillation of wine produced from grapes not classified as wine grape varieties;

Whereas in view of the poor quality of wine obtained from overpressing, this practice should be prohibited and provision should be made, in order to prevent it, for the compulsory distillation of marc and lees; whereas, to that end, for the distillation of those products a basic level should be fixed and provision made for the subsequent fixing of an additional level on the basis of the data in the forward estimate; whereas, however, in order to take into account production conditions in certain wine-growing regions, derogations from these measures may be provided for;

Whereas provision should be made for an obligation to distill or, failing that and in certain conditions, withdraw under supervision the by-products of wine-making; whereas, however, producers whose vineyards are situated in wine-growing zone A or in the German part of wine-growing zone B are not subject to this requirement; whereas experience has shown that the need to ensure appropriate quality control of wine-making means that that obligation should be strengthened and its scope extended; whereas, for this purpose, the obligation to withdraw the by-products of wine-making under supervision should be extended to cover producers in zones for which exemption is currently granted and all persons who have processed grapes other than into wine should be subject to the obligation to distil, or failing that, to withdraw by-products; whereas, owing to the shortage of distillation equipment in certain areas in wine-growing zones C III, a system of derogation concerning the products for distillation should be provided on a transitional basis, while ensuring elimination of the by-products of wine-

making;

Whereas, with a view to excluding products of mediocre quality from the market in wine, it should be stipulated that only grapes from wine grape varieties may be used for the preparation of products intended for direct human consumption;

Whereas, in order to allow, in years where a significant harvest is foreseen, sound conditions to be speedily restored on the market by means, in particular, of the removal of wines of inferior quality, preventive distillation should be made possible from the beginning of the wine year at a buying-in price which does not encourage the production of wine of insufficient quality;

Whereas compulsory distillation appears to be the most effective measure to absorb surpluses of table wine on the market; whereas provision must consequently be made for such distillation to be introduced once it is clear that the market is in a state of serious imbalance and whereas precise criteria must be defined for the assessment of such imbalance;

Wheras, because of the weather and the impact of structural measures, the trend in production may vary between the production regions of the Community; whereas, to take fair account of this, the total quantity of wine for compulsory distillation should be broken down between the various wine-growing regions of the Community on the basis of the disparity between their respective levels of production for the year and a reference level calculated on the basis of previous years and regarded as compatible with normal utilization of table wine; whereas the reference level is at present 85 % of average production in the preceding three years;

Whereas it is incumbent upon each Member State to supervise and implement compulsory distillation; whereas, therefore, for the measure to be effective, the wine-growing regions should be grouped by Member State;

Whereas it is fair to share out the obligations between producers on the basis of their yield per hectare and to ensure that producers with low yields are not penalized; whereas differences between production regions warnant the application of differing rates to producers in the various regions;

Whereas, to avoid encouraging wine production in the absence of commercial outlets, it appears advisable to fix the buying-in price of wine delivered for compulsory distillation at a level which is sufficiently unattractive to producers;

Whereas an authorization by Member States not to take over alcohol obtained from distillation is likely to prevent compulsory distillation from being applied, if made use of in Member States in which the production of table wine is very substantial; whereas it therefore appears necessary to restrict this possibility to those Member States in which the quantity of wine to be distilled is low;

Whereas, in order to avoid disproportionate administrative expenditure, provision should be made, in addition to exemption for small producers, for exemption for producers in regions where the production of table wine is very low; whereas, to ensure proportionate allocation of advantages and disadvantages between those concerned, it is appropriate to provide that, in cases of exemption, producers in those regions may not enjoy the advantage of optional distillation;

Whereas, in order to avoid disturbance on the market in alcohol and spirituous beverages, rules should be laid down for the disposal of alcohol obtained from distillation in the context of intervention on the market in wine; whereas, in particular, the sectors in which such disposal may take place should be defined;

Whereas, with a view to improving the incomes of the producers involved, it is appropriate to ensure that, under certain conditions, they receive a guaranteed minimum price for table wine; whereas, to this end, it should be made possible for the producer to deliver table wine from his own production for distillation at the guaranteed minimum price or to make use of any other appropriate measure to be decided on; whereas, in order to obtain the greatest effectiveness in applying the measures in question, it should be made possible for the Commission to determine the quantities eligible, up to an overall limit of 6,2 million hectolitres of table wine in any wine year, while reserving to the Council the right to increase the quantity of table wine which may be distilled under those measures; whereas, to the same end, the possibility of restricting these measures to certain types of table wine or certain wine-growing zones should be provided for; whereas provision should also be made for such distillation to be restricted to producers who have delivered table wine for preventive distillation during the same year;

Whereas it has also proved necessary to provide for additional measures applicable to holders of long-term storage contracts in order to maintain prices at a level higher than the activating price; whereas, in order to be effective, these additional measures may consist, in particular, of storage of the wine in question for a period to be determined, of distillation of that wine, or of both these measures;

Whereas, although the vineyards in wine-growing zone A and those in the German part of wine-growing zone B are intended wholly for the production of quality wines psr, some of the wine produced, in particular when certain yields per hectare are exceeded, may not be recognized as quality wine and may be marketed as table wine; whereas, to prevent excessive quantities of such wine being offered for intervention, thus increasing intervention expenditure in the sector inordinately, provision should be made, from the 1988/89 wine year onwards, for a limitation in these zones of the quantities eligible for distillation; whereas, however, provision should be made for possible adjustment in order to avoid serious market disturbance;

Whereas the situation should be avoided where, at the time of distillation, producers who have increased the alcoholic strength of their wine by the addition of sucrose or grape must which has benefited from the aid provided for that purpose gain an undue economic advantage from such operation; whereas, therefore, provision should be made for a reduction in the buying-in price, corresponding to the said advantage, for all the distillation measures provided for, with the exemption of those referred to in Articles 35 and 45 for which the price level justifies exemption;

Whereas, at present, the increase in the natural alcoholic strength by volume is not carried out under the same economic conditions by all Community producers on account of the various oenological practices allowed by this Regulation; whereas, in order to eliminate such discrimination, encouragement should be given to the use of vine products for enrichment, thereby increasing their outlets and helping to avoid the creation of wine surpluses, in order to achieve this, the prices of the various products used for enrichment should be aligned; whereas this result may be achieved by introducing a system of aid for concentrated grape must and rectified concentrated grape must used for enrichment; whereas, in order to safeguard the general balance on the wine market, provision should be made for the possibility, in a given year, of granting aid only to must from certain wine-growing zones where traditionally the production of wine for coupage is an important factor in the agricultural economy;

Whereas it has become necessary, in order to achieve a more stable balance between production and utilization, to increase the utilization of vine products; whereas intervention appears to be justified further back than the table wine production stage, by encouraging the use of must for purposes other than wine-making, and in particular the manufacture of grape juice and the manufacture, traditionally carried out in the United Kingdom and in Ireland, of certain products falling within Common Customs Tariff heading No 22.07, since at present some relatively substantial outlets could be made available through such uses;

Whereas the use of Community grape musts for the preparation of beverages other than wine is restricted by competition from musts originating in third countries; whereas, this being so, and to afford a stable outlet for musts intended for the uses concerned, it is necessary to provide for a system of aid for grape must and for concentrated grape must intended for such uses, whereby the amounts of aid are fixed in such a way that the supply cost of the aforementioned products, originating in the Community, achieves a level comparable to that for the corresponding products originating in third countries;

Whereas these grounds also apply in cases where such musts are used as the main element in a set of products marketed in the United Kingdom and in Ireland with clear instructions for the consumer to obtain from it a beverage in imitation of wine (home-made wine); whereas the grant of aid must lead to the replacement of imported musts by Community musts;

Whereas the industry using some of these products which fall within Common Customs Tariff heading No 22.07 requires must with a very high natural sugar content which is traditionally produced in southern wine-growing regions; whereas, in order to enable users to continue employing a raw material suited to their needs, aid should be restricted to must from those regions of the Community which are best placed to satisfy the aforementioned qualitative requirements; whereas, however, this action must not give rise to distortion of competition;

Whereas the use of must in grape-juice production helps to reduce expenditure on the distillation of wine surpluses; whereas the use of such must could be boosted by an effective scheme to promote the consumption of grape juice; whereas, therefore, the aid for the utilization of grape must should, for a number of wine years, be used partly to finance such schemes;

Whereas, in order to step up compulsory distillation, producers who have not fulfilled their obligations must not be allowed to benefit from the intervention measures;

Whereas the search for alternative uses to distillation with a view to absorbing table wine surpluses should be encouraged;

Whereas information and promotional campaigns for table wines on internal and external markets of the Community could open new outlets for those products and help to absorb surpluses;

Whereas provision should also be made for possible measures in case of high prices on the Community market;

Whereas the creation of a single Community market involves the introduction of a single trading system at the external frontiers; whereas the competent authorities must be in a position to keep in touch at all times with trade movements in order to assess market trends and, where required, take the measures provided for in this Regulation; whereas, to that end, provision should be made for the issue of import or export licences subject to the lodging of a security to ensure that the transactions for which the licences are applied for are carried out;

Whereas, furthermore, application of the duties in the Common Customs Tariff should suffice, as a general rule, to stabilize the Community market by preventing price levels and price fluctuations in third countries from affecting prices obtaining within the Community;

Whereas, however, it is necessary to avoid disturbances on the Community market caused by offers made on the world market at abnormal prices; whereas, to that end, reference prices should be fixed for certain products and customs duties should be increased by a countervailing charge when free-at-frontier offer prices plus customs duties are lower than reference prices;

Whereas certain agreements with third countries similarly make provision for preferential tariff concessions provided the reference price is observed; whereas in such cases measures should be taken to ensure that the system operates properly so that the purpose of the import arrangements laid down by the common organization of the market in wine is not frustrated;

Whereas provision should be made in particular for the measures which are necessary to enable the customs authorities of the Member Sates to apply the Agreements with third countries; whereas it is also necessary to specify, for the purposes of implementing those Agreements, the conditions and the procedure for withdrawal of the tariff concession where the reference price is not observed; whereas withdrawl may, depending on the case, be combined with reintroduction of the contervailing charge;

Whereas, in order to ensure that withdrawal of the tariff concession, or reintroduction of the countervailing charge, is not applied for longer than is strictly necessary to ensure the operation of the system, it is advisable to provide for a monthly review of the situation;

Whereas the requirement that wine must be accompanied by a document from the exporting country may be a useful means of checking the observance of the reference price where such country has undertaken to take the measures necessary to ensure such observance;

Whereas, in order to avoid disturbances on the Community market, provision should also be made for the charging of an import levy on imports of certain juices and musts from third countries and for the granting of a refund on the export of the said products to the said countries, both designed to compensate for the difference between prices obtaining within and outside the Community;

Whereas, in addition to the system described above, and to the extent necessary for its proper operation, provision should be made for controlling inward processing arrangements and, where the market situation so requires, for a total or partial prohibition on recourse thereto; whereas however, this mechanism may in exceptional circumstances prove defective; whereas, so as not to leave the Community market without defence against disturbances which may arise as a result, the Community should be enabled to take all necessary measures without delay;

Whereas, bearing in mind the interest of consumers and the desirability of obtaining equivalent treatment for quality wines psr in third countries, provisions should be made, where reciprocal arrangements can be established, whereby imported wines for direct human consumption bearing a geographical ascription and marketed in the Community may, in certain circumstances, be controlled and protected as provided for in respect of quality wines psr;

Whereas provisions should be made, on the basis of present oenoligical knowledge and technological progress, for maximum sulphur dioxide levels for wines intended for direct human consumption other than sparkling wines and liqueur wines;

Whereas, in order to protect consumers from wines with too high a volatile acid content, maximum values should be laid down;

Whereas in the light of experience it appears that the fermentation of grape juice and concentrated grape juice should be prohibited except for the purpose of obtaining certain products falling within Common Customs Tariff heading No 22.07; whereas the entry into free circulation of wine suitable for yielding table wine which does not have the minimum actual alcoholic strength for table wine should, for the same reason, also be prohibited;

Whereas certain imported wine having characteristics different from Community wines may be of value in making sparkling wines; whereas provision should therefore be made for an exhaustive list of the vine varieties and regions from which such wine may come;

Whereas, with a view to maintaining a certain level of quality in the products of the wine sector and in order to discourage trade in products derived from vine varieties not included in the classification, provision should be made that only grapes from recommended or authorized vine varieties may be used for the production of grape must with fermentation arrested by the addition of alcohol, concentrated grape must, wine suitable for yielding table wine, table wine, quality wines psr and liqueur wine;

Whereas, in order to ensure that the removal of a vine variety from the categories of recommended or authorized vine varieties does not give rise to a loss in income without a transitional period for producers cultivating such a variety, the grapes obtained from that variety should be allowed to be used for producing a quality wine psr for a given period, provided that such grapes have been used legally for such a purpose before the change in category of the variety in question;

Whereas products imported from third countries must be subject to rules which ensure a measure of balance with Community wines; whereas it appears necessary to provide that certain imported wines intended for direct human consumption must have a minimum actual alcoholic strength corresponding to that of table wines, other than those from zones A and B; whereas, however, delivery for direct human consumption should be allowed in respect of certain wines originating in third countries and bearing a geographical ascription, where the actual alcoholic strength by volume of such wines is at least 8,5 % vol;

Whereas it should be provided that all the products covered by this Regulation must be furnished with an accompanying document when circulating within the Community; whereas rules on description and presentation should also be laid down for those products; whereas, since compliance with the conditions laid down for the production of table wine may be ascertained only within the Community, the description 'table wine' should be reserved for Community-grown wine;

Whereas, with a view to safeguarding the health of consumers and preventing distortion of competition between domestic products and imported products, provision should be made, as a general rule, that only those products which have undergone oenological practices allowed under Community rules or, where such rules do not exist, under national rules, may be offered or delivered for direct human consumption in the Community; whereas, however, since oenological practices in certain third countries differ from those followed in the Community, provision should be made for derogations from this principle;

Whereas systematic exclusion from release for the market is justified only in cases where the quality of the wine is in jeopardy or where the health of consumers is at risk; whereas provision should be made for the adoption of appropriate measures in other cases;

Whereas it is advisable, in order to facilitate intra-

Community trade and to supplement accordingly the common import arrangements, to provide for the establishment not only of the methods of analysis required to give effect to the provisions of Annexes I, II and VI to this Regulation, but also of all those required for determining the composition of the products covered by this Regulation;

Whereas the transition from one wine year to another must occur under the best conditions; whereas transitional measures may prove necessary to that end;

Whereas the establishment of a single market based on a common price system would be jeopardized by the granting of certain aid; whereas, therefore, the provisions of the Treaty which allow the assessment of aid granted by Member States and the prohibition of aid which is incompatible with the common market should be made to apply to the wine sector;

Whereas fraud and misrepresentation must be punished effectively and speedily; whereas the increased volume of intra-Community and international trade makes it more difficult for the specialist authorities in the Member States to perform their duties; whereas arrangements should be made for closer cooperation between the authorities concerned in the Member States in order to prevent or detect any infringement of Community provisions in the wine sector;

Whereas the surveillance necessary for the correct application of measures provided for by the common organization of the market calls for accurate knowledge of the various data on holdings, in particular with regard to their wine-growing area; whereas, to this end, it is appropriate to envisage the adoption, in the immediately foreseeable future, of steps to set up a vineyard register;

Whereas, in order to facilitate implementation of the measures laid down in this Regulation, a procedure should be provided for establishing close cooperation between Member States and the Commission within a Management Committee;

Whereas the common organization of the market in wine must take appropriate account, at the same time, of the objectives set out in Articles 39 and 110 of the Treaty;

Whereas certain expenditure incurred by the Member States as a result of the obligations arising out of the application of this Regulation will be financed by the Community in accordance with Articles 2 and 3 of Council Regulation (EEC) No 729/70 of 21 April 1970 on the financing of the common agricultural policy(5), as last amended by Regulation (EEC) No 3769/85(6),

HAS ADOPTED THIS REGULATION:

Article 1

1. The common organization of the market in wine shall comprise rules governing production and control of the development of wine-growing potential, rules governing oenological practices and processes, a price system and rules governing intervention and other measures to improve market conditions, arrangements for trade with third countries, and rules governing circulation and release to the market.

2.It shall apply to the following products:

CCT

heading

NoDescription(a)20.07 A I

20.07 B I a) 1

20.07 B I b) 1

Grape juice (including grape must), whether or not containing added sugar, but unfermented and not containing spirit

(b)22.04Grape must, in fermentation or with fermentation arrested otherwise than by the addition of alcohol

22.05Wine of fresh grapes; grape must with fermentation arrested by the addition of alcohol (including mistelle)

(c)08.04 A IIFresh grapes other than table grapes

22.10 AWine vinegar

d)22.07 APiquette

23.05 AWine lees

23.06 A IGrape marc

3. As regards grape juice and concentrated grape juice, Articles 15 to 26, 35, 37, 39, 40, 48, 65 and 66 shall not be applicable. Those Articles shall likewise not be applicable to grape must and concentrated grape must if intended for the preparation of grape juice.

4.(a)Definitions of the following shall be as set out in Annex I:

-fresh grapes, grape must, grape must in fermentation, grape must in fermentation extracted from raisined grapes, grape juice, concentrated grape juice, wine, new wine still in fermentation, wine vinegar, wine lees, grape marc, piquette, wine fortified for distillation; and

-the following Community-produced products: grape must with fermentation arrested by the addition of alcohol, concentrated grape must, rectified concentrated grape must, wine suitable for yielding table wine, table wine, liqueur wine, sparkling wine, aerated sparkling wine, semi-sparkling wine and aerated semi-sparkling wine;

(b)Definitions of alcoholic strengths shall be as set out in Annex II;

(c)Definitions of types of table wine shall be as set out in Annex III;

(d)The demarcation of wine-growing zones shall be as set out in Annex IV;

(e)The definition of certain concepts concerning the development of wine-growing potential shall be as set out in Annex V;

(f)The list of authorized oenological practices and processes shall be as set out in Annex VI;

(g)The standard amounts for the added sugar or natural sugar content of grape juice shall be as set out in Annex VII.

Definitions of the products set out in the second indent of (a) originating in third countries, with the exception of table wine and wine suitable for yielding table wine and any amendment to the definition of rectified concentrated grape must referred to in Annex I point 7, shall be adopted by the Council, acting by a qualified majority on a proposal from the Commission.

5. Quality wines produced in specified regions (quality wines psr) shall be wines defined in Article 1 of Council Regulation (EEC) No 338/79 of 5 February 1979 laying down special provisions relating to quality wines produced in specified regions(7).

6. The marketing year for the products specified in paragraph 2 (hereinafter also called 'wine year') shall begin on 1 September each year and end on 31 August of the following year.

TITLE I

Rules governing production and control of the development of wine-growing potential

Article 2

1. Member States shall monitor by means of annual surveys the areas for the production of material for the vegetative propagation of vines.

2. Detailed rules for the application of this Article shall be adopted in accordance with the procedure laid down in Article 83.

Article 3

1.Each year:

(a)producers of grapes for wine-making and producers of must and wine shall declare the quantities produced from the last harvest;

(b)producers of must and wine, and merchants other than retailers, shall declare their stocks of must and wine, whether from the current year's harvest or from the harvests of preceding years. Must and wine imported from third countries shall be stated separately.

2. So long as the development of the common wine-

growing policy does not require stock declarations to be made before the harvest on a date fixed in accordance with the procedure laid down in Article 83, the harvest and stock declarations shall be made simultaneously not later than 31 December in each Member State.

3. This provision shall not affect the maintenance in certain Member States of two different dates, one for stock declarations and the other for harvest declarations, provided that the information collected is adjusted in such a way that it is useful at Community level.

4. Detailed rules for the application of this Article shall be adopted in accordance with the procedure laid down in Article 83.

Article 4

1. Where the annual wine production of a Member State exceeds 25 000 hectolitres, that Member State shall, in the cases provided for in Article 5, classify, according to their natural suitability for wine-growing, areas under vines cultivated for the production of wine and areas in respect of which a statement of intention to plant vines intended for wine production has been made in accordance with

Article 8.

2. Classification of the areas referred to in paragraph 1 shall be on the basis of three categories in accordance with paragraph 4.

3. The alcoholic strengths by volume referred to in paragraph 4 shall be understood as being the alcoholic strengths by volume obtained in an average year under traditional conditions of production, especially as regards vineyard layout, yield and vine varieties.

4. In the case of wine-growing zone A and the German section of wine-growing zone B:

(a)Category 1 shall comprise the areas which the Member States have recognized, or will recognize, as being suitable for the production of quality wines psr;

(b)Category 2 shall not comprise any area;

(c)Category 3 shall comprise areas other than those referred to in (a).

In the case of the French section of wine-growing zone B:

(a)Category 1 shall comprise those areas:

i(i)which France has recognized, or will recognize, as being suitable for the production of quality wines psr, or

(ii)situated

-in hill regions, hillside regions, or

-on shallow soil which is well-drained and contains a large proportion of coarse matter,

and suitable for the production of wine having an average natural alcoholic strength by volume of not less than 8,5 %;

(b)Category 2 shall comprise those areas:

i(i)situated in hill or hillside regions or on shallow soil meeting the geological, soil and topographical conditions of Category 1 but where the climate is such that the ripening necessary to ensure the required average natural alcoholic strength by volume referred to in (a) cannot be achieved,

or

(ii)not included in (a) or (c);

(c)Category 3 shall comprise those areas situated:

ii(i)on recent alluvial deposits,

or

i(ii)on deep soil containing little coarse matter,

or

(iii)on valley floors.

In the case of wine-growing zone C I:

(a)Category 1 shall comprise those areas:

i(i)which the Member States have recognized, or will recognize, as being suitable for the production of quality wines psr,

(ii)situated:

-in hill regions, hillside regions,

or

-on shallow soil which is well-drained or contains a large proportion of coarse matter,

and suitable for the production of wine having an average natural alcoholic strength by volume of not less than 9 %;

(b)Category 2 shall comprise those areas:

i(i)situated in hill or hillside regions or on shallow soil meeting the geological, soil and topographical conditions of Category 1 but where the climate is such that the ripening necessary to ensure the required average natural alcoholic strength by volume referred to in (a) cannot be achieved,

or

(ii)not included in (a) or (c);

(c)Category 3 shall comprise those areas:

ii(i)situated:

-on recent alluvial deposits,

or

-on deep soil containing little coarse matter,

or

-on valley floors,

or

i(ii)clearly unsuitable for wine-growing owing in particular to adverse natural soil conditions, unsuitable slopes, excessive humidity, adverse exposure, excessive altitude or unfavourable micro-climate, or

(iii)capable of yielding adequate harvests of crops other than the vine for which worthwhile marketing potential exists.

In the case of wine-growing zones C II, C III(a) and C III(b);

(a)Category 1 shall comprise those areas:

ii(i)which the Member States have recognized, or will recognize, as being suitable for the production of quality wines psr,

or

(ii)situated:

-in hill regions, hillside regions,

or

-on plains on an autochthonous substratum of calcareous rock, marl, sand in colluvium of morainic, glacial or volcanic origin, or of alluvial origin but coarse in composition,

and suitable for the production of wine having an average natural alcoholic strength by volume of not less than 10 % in wine-growing zone C III and 9,5 % in wine-growing zone C II;

(b)Category 2 shall comprise those areas:

i(i)situated on plains of recent alluvial origin with deep and fertile soil consisting for the most part of clay or alluvium,

or

(ii)meeting the geological, pedological and topographical conditions of Category 1 but where the climate is such that the ripening necessary to ensure the required average natural alcoholic strength by volume referred to in (a) cannot be achieved;

(c)Category 3 shall comprise those areas:

i(i)clearly unsuitable for wine-growing owing in particular to adverse natural soil conditions, unsuitable slopes, excessive humidity, adverse exposure, excessive altitude or unfavourable micro-climate,

or

(ii)situated on plains or valley floors and capable of yielding an adequate harvest of crops other than the vine for which worthwhile marketing potential exists.

5. All areas in regions not included in any wine-growing zone shall come under Category 3.

6. The Council, acting by a qualified majority on a proposal from the Commission, shall adopt general rules for the application of this Article.

Article 5

1. Where a wine-grower lodges an application for:

-authorization for new planting within the meaning of Annex V, in accordance with Community rules, on areas intended for wine production,

or

-an abandonment premium as provided for in Council Regulations of (EEC) No 456/80(8) or (EEC) No 777/85(9),

or

-restructuring measures under the common measure referred to in Council Regulation (EEC) No 458/80(10)

the competent authorities of the Member State shall, where necessary, classify the areas concerned before taking a decision on the application.

2. In the case of collective action aimed at benefiting from one or more of the provisions referred to in paragraph 1, the competent authorities of the Member State shall, where necessary, similarly classify all the areas concerned by such action.

3. The Council, acting by a qualified majority on a proposal from the Commission, shall adopt general rules for the application of this Article.

Article 6

1. All new planting of vines shall be prohibited until

31 August 1990.

However, authorizations for new planting may be granted by Member States in respect of areas intended for the production of quality wines psr production of which the Commission has recognized, because of their qualitative features, as being far below demand:

2. Notwithstanding paragraph 1, Member States may grant authorizations for new planting in respect of:

-areas intended for the cultivation of mother plantations,

-areas intended for new planting carried out under measures for the consolidation of holdings or measures concerning compulsory purchase in the public interest adopted under national legislation,

-in Member states whose production of quality wines psr during the 1975/76, 1976/77 and 1977/78 wine years was less than 60 % of total wine production, areas intended for new planting to be carried out under development plans meeting the conditions laid down in Council Directive 72/159/EEC(11),

-areas intended for wine-growing experiments.

3. Grapes obtained from vines planted in violation of Community or national provisions concerning new planting of vineyards within the meaning of Annex V may not be used for producing table wine. Products made from such grapes may be put into circulation only for the purposes of distillation. However, these products may not be used in the preparation of alcohol with an actual alcoholic strength by volume of 80 % vol or less.

4. The recognition referred to in the second subparagraph of paragraph 1 shall be decided on, at the request of a Member State, in accordance with the procedure laid down in Article 83.

Daetailed rules for the application of this Article shall be adopted in accordance with the same procedure.

Article 7

1. Replanting of vines shall be permitted only where a natural or legal person or group of persons has:

-a replanting right within the meaning of Annex V,

or

-a replanting right acquired on the basis of prior national legislation.

As a transitional measure, the producers in Member States whose national legislation made no provision for replanting rights as at 27 May 1976 and who have carried out since then grubbing operations duly substantiated and certified by the Member State concerned, may be authorized to plant vines, before 27 May 1984, on an area equivalent in terms of pure crop to the area grubbed, under the conditions laid down in this Regulation.

2. The replanting right as referred to in paragraph 1:

-may be exercised on the same holding; however, Member States may stipulate that this right may be exercised only on the areas where the grubbing was carried out,

-may be transferred, in whole or in part, only in cases where part of the holding concerned goes to another holding; in this case, such right may be exercised on an area on the latter holding no greater than the area transferred.

-however, the replanting right may be transferred, in whole or in part, under conditions laid down by the Member State concerned, to areas intended for the production of quality wines psr on another holding.

3. Wherever the replanting right is not exercised on the area where grubbing was carried out, replanting may, on areas classified in accordance with Articles 4 and 5, take place only on an area classified in the same category as, or in a higher category than, that where the grubbing was carried out.

4. Grapes obtained from vines planted in violation of Community or national provisions concerning replanting of vineyards within the meaning of Annex V may not be used for producing table wine. Products made from such grapes may be put into circulation only for the purpose of distillation, However, these products may not be used in the preparation of alcohol with an actual alcoholic strength by volume of 80 % vol or less.

5. Before 1 January 1986 the Council, acting by a qualified majority on a proposal from the Commission, shall adopt provisions relating to those restrictions on the exercise of replanting rights which are necessary to adapt the wine-growing potential to market requirements.

6. Detailed rules for the application of this Article shall be adopted in accordance with the procedure laid down in Article 83.

Article 8

1. Any natural or legal person or group of persons intending to carry out new planting of vines, as referred to in Article 6 or in the third subparagraph of Article 9 (2), shall apply in writing for authorization to the competent bodies appointed by the Member States by a date to be determined by those bodies.

2. In order to enable the competent bodies to organize inspections, Member States may require that any natural or legal person or group of persons intending to grub or replant vines or to plant new vines where an authorization has been obtained shall so inform the competent body in writing within a time limit to be laid down by the latter.

Any natural or legal person or group of persons having grubbed, replanted or newly planted vines shall so inform in writing the competent body of the Member State on whose territory the operation was carried out within a time limit to be laid down by that body.

3. The authorized new planting of vines may be carried out until the end of the second wine year following that in which the authorization was granted.

Article 9

1. By 1 September of each year, the Member States, taking into account in particular:

-the information referred to in the second subparagraph of Article 8 (2),

and

-the statistical surveys of areas under vines provided for in Regulation (EEC) No 357/79(12)

shall forward a communication to the Commission concerning the development of wine-growing potential, which shall include a statement of the areas under vines on their territory.

The abovementioned statement:

(a)shall be drawn up for the following geographical units:

-in Germany: the wine-growing regions defined in accordance with Article 3 of Regulation (EEC)

No 338/79,

-in France: the departments,

-in Italy: the provinces,

-in Greece: the 'nomoi',

-in Spain: the provinces and regions,

-in Portugal: the regions,

-in the other Member States concerned: their entire national territory;

(b)shall be broken down as specified in Article 2 (2) (B) of Regulation (EEC) No 357/79.

2. By 1 December of each year, the Commission, taking into account the communications from the Member States referred to in paragraph 1, shall submit a report to the Council on the development of wine-growing potential.

That report shall assess the relationship between production potential and use and shall forecast foreseeable trends in this relationship.

On the basis of that report, the Council, acting by a qualified majority on a proposal from the Commission, may, by way of derogation from Article 6, decide insofar as this is justified by the market trend for table wines that the Member States may grant authorizations for new planting in respect of Category 1 areas intended for the production of table wines. At the same time and in accordance with the same procedure, the Council shall lay down the conditions under which such authorizations may be granted.

Article 10

The Council, acting in accordance with the procedure laid down in Article 43 (2) of the Treaty, shall adopt, by

1 October 1986, the measures necessary to ensure that wine-growing potential is in balance with market requirements, taking into account in particular the suitability for wine-growing of, and the existence of economically viable alternatives in terms of agricultural crops for the various areas as they appear in the classification drawn up in accordance with Article 4.

Article 11

1. Articles 6 to 9 shall not apply in Member States where wine production does not exceed 25 000 hectolitres per wine year.

2. This Title shall not prevent Member States from:

-adopting more restrictive national rules in respect of the new planting or replanting of vines,

-requiring that the applications and information provided for in this Title shall be supplemented by other information necessary for monitoring the development of wine-growing potential.

Article 12

Notwithstanding Article 6 (1) and 8 (3), rights for new vine planting on areas intended for the production of quality wines psr acquired by 1 May 1984 in the Community of Ten and by 31 December 1985 in Spain may be exercised:

-until 31 August 1984, and in Spain until 31 August 1986, without restriction;

-from 1 September 1984, and in Spain from 1 September 1986, subject to confirmation from the Member State concerned. Such confirmation may concern only quality wines psr for which an authorization has been granted by the Commission according to the procedure provided for in Article 83.

Article 13

1. The Council acting by a qualified majority on a proposal from the Commission, shall adopt general rules for the classification of vine varieties:

These rules shall in particular provide for:

-the classification of such vine varieties, by administrative unit or part thereof, into recommended varieties, authorized varieties and temporarily authorized varieties,

-the possibility for a Member State to derogate from the provisions of paragraph 2 with a view to investigating the suitability of a vine variety for cultiviation or to undertaking scientific research, selection and crossing or the production of material for the vegetative propagation of the vine which is intended for export.

2. Without prejudice to any more restrictive Community provisions, only recommended varieties and authorized varieties may be used for new planting, replanting or grafting in the Community.

3. The withdrawal from cultivation of areas planted with:

(a)vine varieties classified, on 31 December 1976, as temporarily authorized varieties, must be completed:

-by 31 December 1979 for varieties obtained from interspecific crossings (direct producer hybrids),

-by 31 December 1983 for other varieties;

The dates given above shall be postponed, for Greece until 31 December 1984, and, for Spain, until 31 December 1990 and 31 December 1992 respectively;

(b)vine varieties classified as temporarily authorized after 31 December 1976 must be completed within 25 vears of the date on which the variety was thus classified.

Continued cultivation of vine varieties which are not classified shall be prohibited.

4. Except where otherwise decided by the Council, acting by a qualified majority on a proposal from the Commission:

-fresh grapes,

-grape must,

-grape must in fermentation,

-new wines still in fermentation,

-and wine,

from vine varieties not included in the classification may be put into circulation only for the purposes of distillation or vinegar making. These products may also be used for consumption in the families of wine-growers.

5. The classification of vine varieties and other detailed rules for the application of this Article shall be adopted in accordance with the procedure laid down in Article 83.

Article 14

The granting of national aid for the planting of Category 3 areas cultivated for the production of table wine shall be prohibited.

TITLE II

Rules governing oenological practices and processes

Article 15

1. Only oenological practices and processes referred to in this Title, in Annex VI or in other Community rules applicable to the wine sector shall be authorized for the products defined in points 1 to 7, 10 to 13 and 15 of Annex I and for concentrated grape musts, rectified concentrated grape musts and sparkling wines defined pursuant to the second subparagraph of Article 1 (4).

2. Notwithstanding paragraph 1, Member States may, in respect of the oenological practices and processes referred to in Annex VI, impose stricter conditions to ensure the preservation of the essential characteristics of quality wines psr and table wines designated pursuant to Article 72 (2), produced in their territory.

Member States shall notify the Commission of the provisions adopted pursuant to the first subparagraph.

The Commission shall take the necessary steps to bring such provisions to the attention of the other Member States.

3. The purity and identification specifications for the oenological substances referred to in Annex VI shall be those laid down by the relevant provisions of Community law or, failing this, those specifications which are in conformity with national laws.

4. Except where otherwise decided by the Council acting by a qualified majority on an proposal from the Commission, the addition of water to the products referred to in Article 1 shall be prohibited. However, the dissolving of certain oenological substances in water shall be tolerated if it is an essential condition of their use.

5. The Council, acting by a qualified majority on a proposal from the Commission, may restrict or prohibit the use of the oenological practices and processes referred to in Annex VI in respect of the products referred to in paragraph 1.

6. The following shall be adopted in accordance with the procedure laid down in Article 83:

-detailed rules on the comparability of certain oenological practices and processes employed in third countries with those specified in Annex VI,

-the conditions under which Member States may permit in respect of wine produced on their territory the use, until a date to be fixed, of malic acid for acidification purposes,

-other detailed rules for the application of this Article.

Article 16

1. The practices and processes referred to in Article 15 (1) may be applied only for the purpose of ensuring proper vinification or proper preservation of the products concerned; in particular, blending and coupage shall be prohibited:

-of table wines with each other, or

-of wines suitable for producing table wines with each other or with table wines, or

-of quality wines psr with each other, or

-of imported wines with each other,

if any one of the ingredients does not comply with the requirements of this Regulation or with those adopted pursuant to this Regulation.

2. Except by way of derogation decided by the Council, acting by a qualified majority on a proposal from the Commission, the mixing of fresh grapes, grape must, grape must in fermentation or new wines still in fermentation, not possessing the characteristics prescribed for making wine suitable for yielding table wine or for making table wine, with products suitable for yielding such wines or with table wine may not furnish wine suitable for yielding table wine or table wine.

3. Where coupage takes place, and subject to the provisions of the following paragraphs, only products resulting from coupage between table wines or from coupage of table wines with wines suitable for yielding table wines shall be considered as table wines, provided that the wines suitable for yielding table wines have a total natural alcoholic strength by volume not exceeding 17 % vol.

4. Without prejudice to Article 67 (5), coupage of a wine suitable for yielding a table wine with:

(a)a table wine, may yield a table wine only if that process takes place in the wine-growing zone where the wine suitable for yielding a table wine was produced;

(b)another wine suitable for yielding a table wine, may yield a table wine only if:

-the second wine suitable for yielding a table wine was produced in the same wine-growing zone,

and

-the process takes place in the same wine-

growing zone.

5. Coupage of a wine suitable for yielding a white table wine or of a white table wine with a wine suitable for yielding a red table wine or with a red table wine may not yield a table wine.

However, this provision shall not prevent, in certain cases to be determined, the coupage of a wine suitable for yielding a white table wine or of a white table wine with a wine suitable for yielding a red table wine or with a red table wine, provided that the resultant product has the characteristics of a red table wine.

6. Coupage of a graphe must or a table wine which has been subjected to the oenological practice referred to in point 1 (n) of Annex VI with a grape must or a wine which has not been subjected to that oenological practice shall be prohibited.

7. Except where otherwise decided by the Council, acting by a qualified majority on a proposal from the Commission, coupage of a wine originating in a third country with a Community wine and coupage in the geographical territory of the Community between wines originating in third countries shall be prohibited.

However, coupage of the type referred to in the first subparagraph shall be permitted in free zones, provided that the resultant wine is intended for consignment to a third country.

The Council, acting by a qualified majority on a proposal from the Commission, shall adopt provisions for the application of the second subparagraph, in particular as regards the description of the wine concerned and the avoidance of any confusion with a Community wine.

8. Should difficulties arise in certain wine-growing regions of the Community as a result of the application of paragraphs 3 to 7, the Member States concerned may inform the Commission, which shall take all appropriate measures; such measures may not, however, restrict application of the rules laid down in this Article on the subject of coupage.

9. Detailed rules for the application of this Article, in particular as regards the use of wines suitable for yielding table wines, shall be adopted, as necessary, in accordance with the procedure laid down in Article 83.

Article 17

1. Member States may authorize the use, as referred to in point 3 (w) of Annex VI, of copper sulphate for the purpose of eliminating defects in the taste or smell of wine in production regions where copper sulphate has not been used for the treatment of the vines.

2. In the case of the processes referred to in point 3 (p) of Annex VI, Member States may decide that calcium phytate is to be used instead of potassium ferrocyanide in all red wines produced in their territory.

The use of sodium alginate, as referred to in point 3 (t) of Annex VI, in the manufacture of certain sparkling wines shall be permitted until 31 August 1990.

3. The use of calcium tartrate or tartaric acid, as

referred to in points 1 (m) and 3 (l) of Annex VI, for deacidification purposes shall be permitted until 31 August 1990 and, with regard to tartaric acid, solely in the case of products:

-made from vine varieties which yield relatively acidic grapes,

-made from grapes harvested in certain wine-growing regions, to be defined, in the northern part of wine-

growing zone A.

The use of Aleppo pine resin, as referred to in point 1 (n) of Annex VI, shall be allowed only for the purpose of obtaining a 'retsina' table wine. This oenological practice may be carried out only:

-in the geographical territory of Greece,

-on a grape must produced from grapes for which the varieties, the production area and the wine-making area have been determined by the Greek provisions in force on 31 December 1980,

-by adding a quantity of resin equal to or less than 1 000 grams per hectolitre of the product used,

-before fermentation or, provided that the actual alcoholic strength by volume does not exceed one third of the total alcoholic strength by volume, during fermentation.

If Greece intends to amend, after 31 December 1980, the provisions referred to in the second subparagraph, second indent, it shall inform the Commission accordingly. In this case it may be decided, in accordance with the procedure laid down in Article 83, to change that date.

4. Detailed rules for the application of this Article shall be adopted, as necessary, in accordance with the procedure laid down in Article 83.

Article 18

1. Where climatic conditions so require in certain wine-growing zones of the Community, the Member States concerned may permit an increase in the natural alcoholic strength by volume (actual or potential) of fresh grapes, grape must, grape must in fermentation, and new wine still in fermentation, obtained from the vine varieties referred to in Article 69, as well as of wine suitable for yielding table wine and table wine.

An increase in natural alcoholic strength by volume may not be authorized in respect of the products referred to in the first subparagraph unless their minimum natural alcoholic strength by volume is as follows:

-in wine-growing zone A: 5 % vol,

-in wine-growing zone B: 6 % vol,

-in wine-growing zone C I (a): 7,5 % vol,

-in wine-growing zone C I (b): 8 % vol,

-in wine-growing zone C II: 8,5 % vol,

-in wine-growing zones C III: 9 % vol.

The increase in minimum natural alcoholic strength by volume shall be achieved by means of the oenological practices referred to in Article 19 and may not exceed the following limits:

-in wine-growing zone A: 3,5 % vol,

-in wine-growing zone B: 2,5 % vol,

-in wine-growing zone C: 2 % vol.

2. In years when climatic conditions have been exceptionally unfavourable, the limits on increases in the alcoholic strength by volume provided for in the third subparagraph of paragraph 1 may be raised to the following levels:

-wine-growing zone A: 4,5 % vol,

-wine-growing zone B: 3,5 % vol.

3. The wine-growing zones referred to in this Article shall be as set out in Annex IV.

4. Detailed rules for the application of this Article, and in particular the decisions authorizing the increases provided for in paragraph 2, shall be adopted in accordance with the procedure laid down in Article 83.

Article 19

1. The increase in natural alcoholic strength by volume provided for in Article 18 may only be effected:

(a)in respect of fresh grapes, grape must in fermentation or new wine still in fermentation, by adding sucrose, concentrated grape must or rectified concentrated grape must;

(b)in respect of grape must, by adding sucrose or concentrated grape must or retified concentrated grape must or by partial concentration;

(c)in respect of wine suitable for yielding table wine and table wine, by partial concentration through cooling.

2. The processes mentioned in paragraph 1 shall be mutually exclusive.

3. The addition of sucrose provided for in paragraph 1 (a) and (b) may only be performed by dry sugaring and only in wine-growing regions in which it is traditionally or exceptionally practised in accordance with legislation in force on 8 May 1970.

4. The addition of concentrated grape must or rectified concentrated grape must shall not have the effect of increasing the initial volume of fresh crushed grapes, grape must, grape must in fermentation or new wine still in fermentation by more than 11 % in wine-growing zone A, 8 % in wine-growing zone B and 6,5 % in wine-growing zones C.

If Article 18 (2) is applied, the limits on increases in volume shall be raised to 15 % in wine-growing zone A and to 11 % in wine-growing zone B.

5. The concentration of grape must, of wine suitable for yielding table wine or of table wine subjected to this process, shall not have the effect of reducing the initial volume of these products by more than 20 % and in no case shall it increase by more than 2 % vol their natural alcoholic strength by volume.

6. In no case shall the abovementioned processes have the effect of raising to more than 11,5 % vol in wine-growing zone A, 12 % vol in wine-growing zone B, 12,5 % vol in wine-growing zones C I (a) and C I (b), 13 % vol in wine-growing zones C II and 13,5 % vol in wine-growing zones C III the total alcoholic strength by volume of the fresh grapes, grape must, grape must in fermentation, new wine still in fermentation, wine suitable for yielding table wine or table wine subjected to those processes.

However, for red wine, the total alcoholic strength by volume of the products mentioned in the first subparagraph may be raised to 12 % vol in wine-growing zone A and 12,5 % vol in wine-growing zone B.

7. Wine suitable for yielding table wine and table wine may not be concentrated when the products from which they were obtained have themselves been subjected to the processes mentioned in paragraph 1 (a) and (b).

8. Detailed rules for the application of this Article shall be adopted in accordance with the procedure laid down in Article 83.

Article 20

1. The Commission shall make a thorough study of the possibilities for using concentrated grape must, whether rectified or not, and sugar for enrichment. The study shall cover in particular the oenological aspects of the various permitted methods, the economic aspects of the use of sucrose or concentrated grape must, whether rectified or not, and the methods for monitoring such use.

2. In 1990 the Commission shall present to the Council a report on the conclusions of the study referred to in paragraph 1, together with any appropriate proposals. The Council shall then decide on the measures to be taken with regard to the increase of the natural alcoholic strength by volume of the products referred to in Article 18 (1).

3. Implementation of the study referred to in paragraph 1 shall be financed by the Community. The appropriation relating to it shall be fixed under the budget procedure. The cost is estimated at 2 million ECU.

Article 21

1. Fresh grapes, grape must, grape must in fermentation, new wine still in fermentation and wine may be subject to:

-partial deacidification in wine-growing zones A, B, C1 (a) and C1 (b),

-acidification and deacidification in wine-growing zones C II and C III (a), without prejudice to paragraph 3,

-acidification in wine-growing zone C III (b).

Acidification of the products, other than wine, referred

to in the first subparagraph may be carried out only up

to a limit of 1,50 g/l expressed as tartaric acid, or

20 milliequivalents per litre.

Acidification of wines may be acrried out only up to a limit of 2,50 g/l expressed as tartaric acid, or 33,3 milli-

equivalents per litre.

Deacidification of wines may be carried out only up to a limit of 1 g/l expressed as tartaric acid, or 13,3 milli-

equivalents per litre.

Moreover, grape must intended for concentration may be the subject of partial deacidification.

2. In years when climatic conditions have been exceptional. Member States may authorize acidification of the products referred to in paragraph 1 in wine-growing zones C I (a) and C I (b), under the conditions referred to in paragraph 1 as regards zones C II, C III (a) and C III (b).

3. Acidification and enrichment, except by way of derogation to be decided on case by case, and acidification and deacidification of one and the same product shall be mutually exclusive processes.

4. The derogations referred to in paragraph 3 and other detailed rules for the application of this Article shall be adopted in accordance with the procedure laid down in Article 83.

Article 22

1. The sweetening of table wine shall be authorized only:

(a)with grape must which has at most the same total alcoholic strength by volume as the table wine in question, if the fresh grapes, grape must, grape must in fermentation, new wine still in fermentation or wine suitable for yielding table wine, or the table wine itself, have undergone one of the processes mentioned in Article 19 (1);

(b)with concentrated grape must, or rectified concentrated grape must or grape must, provided that the total alcoholic strength by volume of the table wine in question is not raised by more than 2 % vol, if the products mentioned under (a) have not undergone one of the processes mentioned in Article 19 (1).

2. The sweetening of imported wines intended for direct human consumption and beating a geographical ascription shall be forbidden within the territory of the Community.

The sweetening of imported wines other than those referred to in the first subparagraph shall be subject to rules to be determined.

3. Detailed rules for the application of this Article shall be adopted in accordance with the procedure laid down in Article 83.

Article 23

1. None of the processes referred to in Articles 19 and 21, with the exception of the acidification and deacidification of wines, shall be authorized unless carried out as a single operation at the time when the fresh grapes, grape must, grape must in fermentation or new wine still in fermentation are being turned into wine suitable for yielding table wine, into table wine, or into any other beverage intended for direct human consumption referred in Article 1 (2) other than sparkling wine or serated sparkling wine in the wine-growing zone where the fresh grapes used were harvested.

The same shall apply to the concentration, acidification and deacidification of wine suitable for yielding table wines.

The concentration of table wines must take place in the wine-growing zone where the fresh grapes used were harvested.

Acidification and deacidification of wines may take place only in the wine making undertaking and in the wine-growing zone where the grapes used to produce the wine in question were harvested.

2. Each of the processes referred to in paragraph 1 must be notified to the competent authorities. The same shall apply in respect of the quantities of surcose, concentrated grape must or rectified concentrated grape must held in the excercise of their profession by natural or legal persons or groups of persons, in particular producers, bottlers, processors and merchants to be determined, at the same time and in the same place as fresh grapes must in fermentation or wine in bulk. The notification of these quantities may, however, be replaced by entry in a goods inwards and stock utilization register.

Each of the processes referred to in Article 21 must be recorded on the document referred to in Article 71 (1) under cover of which the products having undergone the processes are put into circulation.

3. Those processes may, subject to derogations justified by exceptional climatic conditions, only be carried out:

-before 1 January, in wine-growing zones C,

-before 16 March, in wine-growing zones A and B,

and only for products of the wine harvest immediately preceding those dates.

However, concentration by cooling and acidification and deacidification of wines may be practised throughout the year.

4. Detailed rules for the application of this Article, and in particular the exceptions to the obligation referred to in the first subparagraph of paragraph 2 and the derogations from the time limits set in the first subparagraph of paragraph 3, shall be adopted in accordance with the procedure laid down in Article 83.

Article 24

The application of Articles 18, 19, 21, 22 and 23 to products harvested in Community regions not included within the wine-growing zones specified in Annex IV shall be determined in accordance with the procedure laid down in Article 83.

Article 25

1. With the exception of the products defined in points 5, 14 and 23 of Annex I, the addition of alcohol to the products listed in Article 1 (2) shall be prohibited.

2. The Council, acting by a qualified majority on a proposal from the Commission, shall decide on derogations from the provisions of paragraph 1, in particular in respect of special uses or in respect of products intended for export.

3. Detailed rules for the application of this Article shall be adopted in accordance with the procedure laid down in Article 83.

Article 26

1. For experimental purposes, each Member State may authorize, for a maximum period of three years, the use of certain oenological practices or processes not provided for in this Regulation, on condition that:

-the quantities to which any practices or processes apply do not exceed a maximum of 50 000 hectolitres per annum for any one experiment,

-the products obtained are not sent outside the Member State on whose territory the experiment was conducted.

2. Before the expiry of the period referred to in para-

graph 1, the Member State concerned shall forward to the Commission a report on the experiment authorized. The Commission shall notify the other Member States of the results of the experiment. Depending on these results, the Member State concerned may submit to the Commission a request for authorization to continue the experiment, possibly with a larger quantity than in the initial experiment, for a further maximum period of three years. The Member State concerned shall forward the appropriate documentation in support of its request.

3. The Commission, acting in accordance with the procedure laid down in Article 83, shall take a decision on the request referred to in paragraph 2. At the same time it may decide that the experiment may be carried out under the same conditions in other Member States.

4. After gathering all the information on the experiment, the Commission may, at the end of the period referred to in paragraph 1 and, where applicable, at the end of the period referred to in paragraph 2, submit to the Council a proposal for definitive authorization of the oenological practice or process covered by the experiment. In that case the Council shall act by a qualified majority.

5. Detailed rules for the application of this Article shall, if necessary, be adopted in accordance with the procedure laid down in Article 83.

TITLE III

Price system and rules governing intervention and other measures to improve market conditions

Article 27

1. The definition of each of the types of table wine representative of Community production is given in

Annex III.

The lists of vine varieties appearing in point 1 (c) and point 2 (b) and (c) of Annex III shall be adopted in accordance with the procedure laid down in Article 83.

2. For each of the types of table wine referred to in paragraph 1, a guide price shall be fixed before 1 August for each marketing year.

3. The guide price shall be fixed on the basis of the average of prices recorded for the type of wine in question during the two marketing years preceding the date of fixing and on the basis of price trends during the current marketing year.

Prices shall be recorded at the production stage on the markets in Community wine-growing regions which market a substantial proportion of the regions' table wine production.

4. The guide price shall be fixed at the production stage and shall be expressed, according to the type of wine, either in ECU per % vol/hl or in ECU per hl.

5. The guide prices and the types of wine to which they apply shall be determined in accordance with the procedure laid down in Article 43 (2) of the Treaty.

Article 28

A threshold price activating the intervention system hereinafter called 'activating' price', shall apply for each wine year to each type of wine for which a guide price is fixed. It shall be valid at the same stage as the guide price. For each type of table wine it shall be 92 % of the guide price.

Article 29

The aim of the set of measures referred to in this Title shall be to ensure balance on the market in table wines and a minimum guaranteed price on the market for such wines equal to at least 82 % of the guide price.

The minimum guaranteed price referred to in the first subparagraph shall be ensured to producers subject to the obligations referred to in Article 47 (1) only in so far as they have met those obligations in accordance with the aforesaid provision.

Article 30

1. For each type of wine for which a guide price is fixed, the Commission shall, on the basis of all the facts available to it, establish each week and publish in the 'C' series of the Official Journal of the European Communities:

(a)an average producer price (hereinafter called 'average price') for each representative market for the relevant type of table wine;

(b)for table wines of types R III, A II and A III, a representative Community price (hereinafter called 'representative price'), corresponding to the weighted average of all the average prices established;

(c)for table wines of types R I, R II and A I, a representative Community price (hereinafter called 'representative price') corresponding to the weighted average of half the average prices established. This half shall be constituted by the lowest average prices. Where the number of average prices to be used is not a whole number, it shall be rounded up to the nearest whole number.

Where the application of these rules results in the number of average prices to be used being less than eight in the case of table wine of type R I, less than seven in the case of wine of type R II and less than eight in the case of wine of

type A I, the eight, seven and eight lowest prices respectively shall be used. However, if the total number of average prices established is lower than the said figures, all the average prices established shall be used.

The weighted averages referred to in (b) and (c) shall be calculated on the basis of the volumes to which the average prices used refer.

2. Member States shall supply the Commission with all relevant information for establishing the prices referred to in paragraph 1, and in particular the producer prices recorded on the representative markets for each type of table wine and the quantities to which they relate.

3. Detailed rules for the application of this Article, and in particular the list of representative markets and the methods for recording prices, shall be adopted in accordance with the procedure laid down in Article 83.

Article 31

1. A forward estimate shall be drawn up before

10 December of each year for the purpose of determining the Community's resources and estimating its needs, including foreseeable imports from and exports to third countries.

2. The forward estimate of the Community's wine resources and needs shall show the proportion of table wines and quality wines par, respectively.

3. For each wine year, the Commission shall provide the Council with a final statement of Community resources and utilization in the preceding wine year.

4. Detailed rules for the application of this Article shall be adopted in accordance with the procedure laid down in Article 83.

Article 32

1. A system of aid is hereby instituted for the private storage of:

-table wine,

-grape must, concentrated grape must and rectified concentrated grape must.

2. The aid referred to in paragraph 1 shall be granted subject to the conclusion with intervention agencies, between 16 December and 15 February of the following year and on conditions to be determined, of a long-term storage contract.

3. Long-term storage contracts for table wine shall be concluded for a period of nine months.

Long-term storage contracts for grape must, concentrated grape must and rectified concentrated grape must shall be concluded for a period ending on 15 September following their conclusion.

4. Long-term forward storage contracts may be concluded if the forward estimate for a wine-growing year shows that the quantity of table wine available at the beginning of that year exceeds by more than four months' supply the normal utilization for that year.

It may be decided that:

(a)long-term storage contracts for table wine may be concluded only for table wines to be determined;

(b)grape must covered by a long-term storage contract may be processed, wholly or in part, into concentrated grape must or rectified concentrated grape must during the period of validity of the contract;

(c)grape must and concentrated grape must intended for the manufacture of grape juice may not be the subject of long-term storage contracts.

5. Decisions to permit the conclusion of long-term storage contracts shall be taken in accordance with the procedure laid down in Article 83. In accordance with the same procedure:

(a)it shall be decided, if the market situation and in particular the rate at which contracts are concluded justify it, to discontinue even before 15 February, the possibility of concluding long-term storage contracts;

(b)other rules for the application of this Article shall be adopted.

Article 33

1. As soon as private storage aid measures take effect, the intervention agencies designated by Member States shall conclude, with producers who so request, storage contracts for the wines and musts covered by such measures.

2. The conclusion of storage contracts shall be subject to conditions relating in particular to the quality of the products in question.

3. For table wines, storage contracts may contain provision for the termination of aid payments and of the producer's corresponding obligation in respect of all or part of the quantities stored if, for two consecutive weeks, the representative price for the type of table wine concerned is equal to or above the guide price for that type of table wine.

4. The amount of private storage aid may cover only technical storage costs and interest charges, both of which shall be fixed at a standard rate.

For concentrated grape musts, this amount may be adjusted by a coefficient corresponding to the degree of concentration.

5. Detailed rules for the application of this Article shall be adopted in accordance with the procedure laid down in Article 83.

Article 34

1. Where the foreseeable level of stocks held by producers at the end of the marketing year and the prospects for the following harvest indicate that difficulties may arise in storing that harvest, it may be decided to grant aid for the re-storage of table wines which are the subject of long-term storage contracts.

2. Detailed rules for the application of paragraph 1, in particular as regards the period of applications, the amount of aid and the conditions of re-storage, shall be adopted in accordance with the procedure laid down in Article 83.

pe of table wine=ART> Article 35

1. The overpressing of grapes, whether or not crushed, and the pressing of wine lees shall be prohibited. The refermentation of grape marc for purposes other than distillation shall also be prohibited.

Filtering and centrifuging of wine lees shall not be considered as pressing where, firstly, the products obtained are of sound, genuine and merchantable quality, and, secondly, the lees are not reduced to the dry state.

Notwithstanding the first subparagraph, in the Greek and Italian islands (other than Sicily and Sardinia), in wine-growing regions C III during the marketing yIars 1982/83 to 1986/87, the overpressing of grapes, whether or not crushed, and the pressing of wine lees may be permitted. In this event, products obtained from the pressing of marc and wine lees shall be wholly and exclusively delivered for distillation.

2. Any natural or legal person or group of persons, with the exception of the persons and groups referred to in paragraph 4, having made wine, shall be required to deliver for distillation all the by-products of the winemaking and, if necessary, wine from their own production.

The quantity of alcohol contained in the products delivered for distillation shall be at least equal to a percentage to be determined of the volume of alcohol contained in the wine produced. The assessment of that volume shall be made on the basis of a standard minimum natural alcoholic strength by volume laid down for each wine year in each wine-growing zone.

The percentage mentioned in the second subparagraph may not be more than:

-8 % if the wine has been obtained by direct vinification of grapes,

-3 % if the wine has been obtained by vinification of grape must, grape must in fermentation or new wine still in fermentation.

Derogations may be made from this paragraph for categories of producers to be determined, for certain production regions and for wines subject to the distillation referred to in Article 36.

3. Any natural or legal person or group of persons, with the exception of the persons and groups referred to in paragraph 4, who holds by-products of any processing of grapes other than vinification shall required to deliver them for distillation.

Grape marc and wine lees deivered for distillation must meet certain minimum standards to be determined. Where the standards are not met, the marc and lees shall, by way of derogation from the first subparagraph, be disposed of by delivery to a processing establishment other than a distillery or by destruction under supervision.

4. Any natural or legal person or group of persons who processes grapes harvested in wine-growing zone A or in the German part of wine-growing zone B shall be required to withdraw the by-products of such processing under supervision and subject to conditions to be determined.

5. Those subject to the obligation referred to in

paragraph 2 or to that referred to in paragraph 3 may discharge that obligation by the withdrawal of the by-products of vinification under supervision and subject to conditions to be determined.

6. In connection with distillation as referred to in this Article, the distiller may

-either receive aid in respect of the product to be distilled, provided that the product obtained by distillation has an alcoholic strength of at least 52 % vol,

-or deliver the product obtained by distillation to the intervention agency, provided that it has an alcoholic strength of at least 92 % vol.

However,

-the Member States may stipulate that their intervention agencies shall not buy in the product referred to in the second indent of the first subparagraph,

-if wine has been processed into wine fortified for distillation before delivery to the distiller, the aid referred to in the first indent of the first subparagraph shall be paid to the manufacturer of the fortified wine and the product of the distillation may not be delivered to the intervention agency.

A buying-in price shall be fixed for neutral alcohol with quality characteristics to be determined.

The buying-in price of the other products of distillation which can be taken over by the intervention agency shall be fixed on the basis of the buying-in price referred to in the third subparagraph and varied to take account, in particular, of the cost entailed in processing the relevant product into neutral alcohol.

7. The Council, acting by a qualified majority on a proposal from the Commission, shall adopt general rules for the application of this Article.

These rules shall include:

-the conditions under which distillation is to be carried out,

-the criteria for fixing the price to be paid, according to their alcoholic content, for marc and lees and, if appropriate, for wine delivered for distillation,

-the derogations mentioned in paragraphs 1 and 2,

-the conditions under which withdrawal under supervision as referred to in paragraph 4 and

paragraph 5 may be carried out,

-the criteria for fixing the amount of aid which will enable the products obtained to be disposed of,

-the criteria for establishing the proportion of the intervention agencies' expenditure to be financed from the Guarantee Section of the European Agricultural Guidance and Guarantee Fund,

-the criteria for fixing the prices of the products of distillation which can be taken over by the intervention agencies.

8. The amount of and the prices and the proportion of expenditure referred to in paragraph 7 shall be fixed in accordance with the procedure laid down in Article 83.

Detailed rules for the application of this Article, the standard natural alcoholic strength by volume referred to in paragraph 2 and the minimum standards to be met by marc and lees referred to in paragraph 3 shall be adopted in accordance with the same procedure.

Article 36

1. Wine made from grapes belonging to varieties not listed as wine grape varieties in the classification of vine varieties for the administrative unit where they were harvested, and which is not exported, shall be distilled before the end of the wine year in which it was produced. Except by derogation, it may not be moved except to a distillery.

2. Where wine is produced from a grape variety listed in the classification for the administrative unit as both a wine grape variety and a variety for use for another purpose, any wine which is produced in excess of the normal quantity and which is not exported shall be distilled before the end of the wine year in which it was produced. Except by derogation, it may not be moved except to a distillery.

The quantity of wine normally produced shall be determined from:

-the quantities produced during a reference period to be determined antedating the 1980/81 wine year or, for Spain, antedating the 1984/85 wine year,

-the quantities of wine put to traditional uses.

3. The buying-in price for wine delivered for distillation under paragraphs 1 and 2 shall be 50 % of the guide price for table wine of type A 1 fixed for the marketing year in question.

The price paid by the distiller may not be lower than the buying-in price.

4. In connection with distillation as referred to in this Article, the distiller may:

-either receive aid in respect of the product to be distilled, provided that the product obtained by distillation has an alcoholic strength of at least 52 % vol,

-or deliver the product obtained by distillation to the intervention agency, provided that it has an alcoholic strength of at least 92 % vol.

However:

-the Member States may stipulate that their intervention agencies shall not buy in the product referred to in the second indent of the first subparagraph,

-if wine has been processed into wine fortified for distillation before delivery to the distiller, the aid referred to in the first indent of the first subparagraph shall be paid to the manufacturer of the fortified wine and the products of the distillation may not be delivered to the intervention agency.

A buying-in price shall be fixed for neutral alcohol with quality characteristics to be determined.

The buying-in price of the other products of distillation which can be taken over by the intervention agency shall be fixed on the basis of the buying-in price referred to in the third subparagraph varied to take account, in particular, of the necessary costs entailed in processing the products into neutral alcohol.

5. The Council, acting by a qualified majority on a proposal from the Commission, shall adopt general rules for the application of this Article.

These rules shall include:

-the conditions under which distillation is to be carried out,

-the criteria for fixing the amount of aid which will enable the products obtained to be disposed of,

-the criteria for establishing the proportion of the intervention agencies expenditure to be financed from the Guarantee Section of the European Agricultural Guidance and Guarantee Fund.

-the criteria for fixing the buying-in prices of the products of distillation which can be taken over by the intervention agencies.

6. The amount of aid, the buying-in prices and the proportion of expenditure referred to in paragraph 5 shall be fixed in accordance with the procedure laid down in Article 83. Detailed rules for the application of this Article, in particular the quantities of wine normally produced as mentioned in paragraph 2 and the derogations mentioned in paragraphs 1 and 2, shall be adopted in accordance with the same procedure.

Article 37

1. Disposal of the products