ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(76)343
Vol.1976/0102

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COMMISSION OFTHEEUROPEAN COMMUNITIES
; S■
I
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COM(76)343 final
Brussels,2July1976
I : '' <'
.^ '-
!Proposalfora
COUNCILREGULATION (EEC)
layingdowngeneralrules:nrespectofthe
distillation ofwinesprovidedforinArticles
6b,6c,24aand24bofRegulation (EEC)No816/70
(submittedtotheCouncilbytheCommission)
*.
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C0M(76)343final/

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/

EXPLANATORY MEMDRAfflJUH
AmendmentstoRegulation(EEC)N°816/70introducedvariousdistillation
measures.Therefore,additionalprovisionsonthesubjectmustbelaiddown.
Thegeneralrulesregardingthedistillation oftablevinesprovidedforinArticles6b,6c,24aand24bofRegulation (EEC)N°8I6/7Omust
providethatdistillation maytakeplaceonlyifadistillation contract
hasbeenconcludedbetweenproducersanddistillers.
Itisfurthernecessarytoprovideforamethodofpaymentofthe
purchasepricetotheproducerandforaidtocoverthedifferencebetreen
thepurchasepriceofwinesontheonehandandthepriceofalcoholonthe
Communitymarketontheother.

Draftproposalfor
COUNCILREGULATION (EEC)No/76
layingdowngeneralrulesinrespectofthe
distillation ofwinesunderArticles6b,6c,
24a.and.24b,,o_f_,Regulation .(EECj-Ns-SI6/7^–^
THECOUNCILOFTHEEUROPEANCOMMUNITIES,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
HavingregardtoCouncilRegulation (EEC)No816/70of28April1970laying
downadditionalprovisionsforthecommonorganization ofthemarketin
wine(1),aslastamendedbyRegulation (EEC)No1167/76(2),andin
particularArticles6b(3),6c(3),24a(5)and24b(3)thereof,
HavingregardtotheproposalfromtheCommission,
Whereastheconditionsshouldbelaiddowngoverningdistillation operations
underArticles6b,6c,24aand24bofthesaidRegulation;
Whereasthenaturalalcoholicstrengthofcertainwinesmaybeincreased
bytheadditionofsucrose;whereasthesamepricewouldbepaidon
distillation forthenaturalalcoholcontentasforthealcoholobtained
fromtheaddedsucrose;whereasinordertoavoidthisanomalythesewines
shouldbeexcludedfromdistillation underthesaidArticles6b,6c,24$
and24b;
Whereasthevariouspricesforwinesfordistillation laiddowninthe
saidArticlesnormallyrenderitimpossibletomarkettheproductsof
distillation atmarketprices;whereasanamountofaidmusttherefore
bepaidwhichwillenabletheproductsobtainedtobemarketed;,
Whereastheminimumpriceguaranteedtotheproducershouldbepaidto
himwithinatimelimitwhichwillensurethatheobtainsaprofit
comparabletothatwhichhewouldhaveobtainedunderacommercialsale;
(1)0JNoL99,5.5.1970,p.1
(2)0JNoL135,24.5.1976,pi42

-2-
Whereastheproducershouldbeinaposition,ifthemarketsituation
improves,togiveuptheoptionaldistillation operationsunderthesaid
Articles6band6c;
Whereasproducersshouldbeabletoconcludecontractswithdistillers
subjecttoapprovalbytheintervention agency,inordertofacilitatethe
controlofthesequenceofoperationsandoftheobservanceoftheobligations
onbothparties;whereasthissystemwouldhavetheaddedadvantageof
makingiteasiertofollowthequantitativeeffectspfdistillation on
themarket;
Whereasitshouldberememberedthatthedistillation ofwinesunderthe
saidArticles6b,6c,24aand24bareinterventions withinthemeaningof
Article3(1)ofCouncilRegulation (EEC)No729/70of21April1970on
thefinancingofthecommonagricultural policy(3),aslastamendedby
Regulation (EEC)No2788/72(4),
HASADOPTEDTHISREGULATION :
Article 1
1.Producersundertakingthedistillation ofwineunderArticles6b,6c,
24aand24bofRegulation (EEC)No816/70shallconcludecontracts
forthedeliveryofwinewithdistillersoftheirchoicebeforea
datetobefixed.
Thesecontractsshallnotbevalidunlessapprovedbytheintervention
agencybeforeadatetobefixed.
2.Thesecontractsshallcover:
(a)thepurchasebythedistillerofthequantityofwineenteredin
thecontract;
,(b)theobligationonthedistillertoprocessthewineintoa
productofastrengthof86degreesormore,orinsofarasitis
sodecided,intoaproductofastrengthof85degreesorlessand
topayforitatleastthepricereferredtoinArticle6b(2),6c
(2)24a(3)or24b(2)ofthesaidRegulation,asappropriate,
suchpricebeingapplicabletounpackedgoodsexproducer's
premises.
3.Thedistillation underthesaidArticles6b,6c,24aand24bshallnot
takeplaceinthecaseofwinesthenaturalalcoholicstrengthof
whichhasbeenincreasedbytheadditionofsucrose.
Article2
1.Foreachhectolitreofwinedistilledtheintervention agencyshall
bayanaid.
I
2.Theamountoftheaid,whichmaybeextendedtoincludepotablespirits,
phallbefixedonthebasisoftheminimumpurchasepricereferredto
inArticle1(2)Cb),thestandardprocessingcostsandthepriceof
productsobtainedbydistillation ontheCommunitymarket.
3.Whereitisdecidedtograntanaidforproductsofastrengthof
85degreesorlesstheamountofaidshallvarydependingonwhether
theproductsofdistillation haveanalcoholicstrenghtof
r86degreesormore,or
r85degreesorless.
(3)ÇJNoL94,28.4.1970,p.13
(4)0JNoL295,30.12.1972,p.1

ν
-3-
Artiç_le_3
1.Within15daysofapprovalofthecontracttheintervention agencyshall
paytheproduceranamountequalto30%oftheminimumpurchaseprice
referredtoinArticle1(2)(b)asanadvanceontheaidprovidedfor
inArticle2.
2.Whenthetotalquantityofwineinthecontractisdeliveredtothe
distillery,thedistillershallpaytheproduceratleastthe
differencebetweentheminimumpurchasepricereferredtoinArticle
1<2)(b)andtheaidprovidedforinArticle2.
3.Whenproofissuppliedthatthetotalquantityofwineinthecontract,
withtheexceptionoftheamount(ifany)coveredbyapartialcancel­
lationunderArticle4,hasbeendistilledtheintervention agency
shallpaytheproducerthedifferencebetweentheaidprovidedfor
inArticle2andtheamountreferredtoinparagraph 1.
4.MemberStatesmayprovidethattheamountreferredtoinparagraph 1
shallbepaidbythedistiller.Insuchcasetheintervention agency
shallreimbursethisamounttothedistillerwhentheproofreferred
toinparagraph3issupplied.
5.Wheredistillation takeplaceinaMemberStateotherthantheMember
Statewheretheproducerislocated,theminimumpurchasepricereferred
toinArticle1(2)(b)shallbepaidbythedistiller.
Artieie4
1.Inconnectionwiththedistillation operationsprovidedforin
Articles6band6cofRegulation (EEC)No816/70,itmaybedecided
thatthecontractsprovidedforinArticle1shouldbetotallyor
partiallycancelledonapplication bytheproducerinrespectofthe
quantityofwinethathasnotyetbeendeliveredtothedistillery
iftheweightedaveragepriceoftablewineoftypeA1isover90%
oftherelevantactivatingprice.
2.Whereadecisionasreferredtoinparagraph 1istaken,interested
producersshallsubmittheirapplications totheintervention agency.
3.Theintervention agencyshallapprovetheapplications submitted
afterensuringthattheamountreferredtoinArticle3(1)has
beenreimbursed.
Article5
Distillation operationsshalltakeplaceduringperiodstobefixed.
Article6
1.MemberStatesshallappointanintervention agencytooverseethe
implementation ofthisRegulation.
2.Theintervention agencyresponsibleshallineverycasebethat
locatedontheterritorywheredistillation takesplace.

Article7
ThisRegulationshallenterintoforceonthedayofitspublication
intheOfficialJournaloftheEuropeanCommunities.
ThisRegulationshallhe"bindinginitsentiretyanddirectlyapplicable
inallMemberStates,
DoneatBrussels. FortheCouncil,
ThePresident

FINANCIAL STATEMENT
DATE I7.6.1976
l.BUKBT LINKcoiictnwED iArticle 692 (other expenditure wine )
2*ACTION TPropo^O .forHCouncil Regulation on ,thedistillation ofthe
by-products ofwine-making .
3.LECAL BASIS JArticle ofCouncil Regulation (EEC)No816/70.
A.OBJECTIVES JAdjustment ofthegeneral rules forthedistillation ofthe
by-products of .wine-makin »tothenewprovisions decided on
bytheCouncil within theframework ofthelatest amendments
toRegulation (EEC )No8l6/70.
5.FINANCIAL CONSEQUENCE
5.0K,xr~:mruHE
-CilAnriiD TOTHE ECBUDGET
(P.mjlJ 16/1NTSRVENTI OiJS)
-CHAHGED TONATIONAL ADMINISTR .
-CHARGED TOOTHER NATIONAL CROUPS
5.1REFXIPTS
-OV.'N R'SOIMCIS OFTÎ!E EC
\I.EV1in/CU3T0l-2 DUTIES )
–NATIONAL ' 'FOR THE KARKETIHO YEAR
9»?mu.a.CURRENT FINANCIAL TEAR
2.75 mu.a .FOLLOWING FINANCIAL YEAR
(II )
11.0 mu.a .
YEAR ..J.Q7&
5.0.1 PLURI A.VNUAL PATTERN OFEXPENDITURE 9o2.mU.a .
5.1.1 PLURI ANNUAL PATTERlf OFRECEIPTSYEAR ....197.9 . TEAR ...A9.°9 ..*...
9.2 mu.a . 9.2 mu.a .
5.2KETIIOD OFCALCULATION #00OOOhl ofalcohol x0.12 u.a.//hi
(1)foradistillation at9f>° =9.2mu.a.per
'marketing year
+double rate effect (300000 hi
inItaly ) ='1.8 mu.a .
11.0 mu.a .
A.->regards the19?^financial year thefinancing relates t«V12 of
'!mu.*>.
<6.0FITAiJCINO PC"SIBLE.K1TH CREDITS INSCRIBED INRELEVANT CHAPTER OFCURRENT BUDGET ?
o7TTIWJ!«WlG_tfi.33IBIi ;BYTRANSFER BiJTKEHH CHAPTERS OPCURRENT BUDCET ? ÏS/M I
TES/NO S 30.2NEC:-r»3ITY FOiASUPPLEMENTARY BUDG
0.3CR3H ToTOb",WRirTEK INV0 FUTURE BUDGETS ? YES/X&
COMMENTS i(1)Amount rvitimated onthebasis ofthecurrent market situation .
Ti->e definitive amount ofthe EAGGF contribution will befixed
wh«n theCouncil hasestablished theprice tobepaid bythe
intervention agencies tothedistillers .,This amount depends
onthe price laid down bythe Council .