10.8.83 Official Journal of the European Communities No C 214/7 
II 
(Preparatory Acts) 
COMMISSION 
Amendment to the proposal for a Council Regulation on the common organization of the 
market in ethyl alcohol of agricultural origin 
(Submitted by the Commission to the Council pursuant to Article 149 (2) of the EEC Treaty 
on 25 July 1983) 
THE COUNCIL OF THE EUROPEAN 
COMMUNITIES, 
Having regard to the Treaty establishing the 
European Economic Community, and in particular 
Articles 42, 43 and 235 thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Par­
liament, 
Having regard to the opinion of the Economic and 
Social Committee, 
Whereas the operation and development of the 
common market in agricultural products must be 
accompanied by the establishment of a common agri­
cultural policy, including a common organization of 
agricultural markets which may take various forms 
depending on the product; 
Whereas the conversion of certain agricultural raw 
materials into ethyl alcohol of agricultural origin is 
closely linked with the economy of those raw 
materials since it largely contributes to the realization 
of their value; whereas this process may be of 
particular economic and social importance for the 
economy of certain regions of the Community, or it 
may be a major source of income for producers of 
certain agricultural raw materials; whereas in other 
cases it enables products of unsatisfactory quality to 
be disposed of, and also the short-term or permanent 
surpluses of certain products which cause serious 
economic problems; whereas, lastly, in the case of 
certain products it is the only means of realizing their 
value; 
Whereas the aim of the common agricultural policy is 
to achieve the objectives specified in Article 39 of the 
Treaty; whereas the situation of the market in ethyl 
alcohol of agricultural origin is characterized in particular by the fact that overall production is in 
excess of Community consumption; whereas it is 
necessary to maintain prices on this market at a level 
which is competitive with world prices; whereas, 
therefore, measures should be adopted to stabilize the 
market and ensure a fair income for the producers 
concerned; 
Whereas, to this end, it is necessary for measures to 
be taken to facilitate the adaptation of supply to 
market requirements and for a subsidy to be granted 
to replace all national forms of production aid; 
whereas, in view of the factors characterizing the 
production of ethyl alcohol of agricultural origin, 
provision should be made for this subsidy to be 
granted at a fixed rate per hectolitre; 
Whereas provision should be made to allow the 
production of ethyl alcohol of agricultural origin to 
be maintained at a level which corresponds to agri­
cultural, economic and social requirements; whereas 
excess production of this alcohol which would run 
counter to the establishment of a balance between 
production and possible uses should be prohibited; 
whereas the amount of production subsidized should 
therefore be limited; whereas this amount should be 
adapted in the light of the abovementioned 
requirements and of the possibilities for use; 
Whereas, so that Community producers and users of 
alcohol may make at least medium-term forecasts, the 
limited quantity for which a market is guaranteed 
should be programmed; whereas, for that purpose, 
this quantity should first of all be apportioned among 
the different alcohol-producing agricultural products 
and then among the Community producer under­
takings; whereas provision should be made for these 
mechanisms to be applied with a certain degree of 
flexibility, especially as regards alcohol obtained in 
connection with the intervention measures laid down 
No C 214/8 Official Journal of the European Communities 10.8.83 
in the Regulations on the common organization of 
the market in wine and on the common organization 
of the market in fruit and vegetables; 
Whereas, to the extent required by the situation on 
the Community market, provision should be made for 
prohibiting recourse to inward processing 
arrangements; 
Whereas the effectiveness of all the measures 
governing the common organization of the market in 
ethyl alcohol of agricultural origin would be 
jeopardized by the granting of certain kinds of aid by 
certain Member States; whereas 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 applicable to ethyl alcohol of agricultural 
origin; 
Whereas certain transitional measures may prove 
necessary to facilitate the transition from the present 
arrangements to the system arising from this Regu­
lation and the transition from one marketing year to 
the next; whereas provision should therefore be made 
for the adoption of such measures; 
Whereas the Treaty does not specifically provide the 
powers necessary to enable the measures concerning 
the reservation of sectors of utilization to be taken 
within the same legal framework as that on which the 
common oganization of the market in ethyl alcohol 
of agricultural origin is based; whereas those 
measures must consequently be taken on the basis of 
Article 235 of the Treaty; 
Whereas the common organization of the market in 
ethyl alcohol of agricultural origin must take appro­
priate and simultaneous account of the objectives set 
out in Articles 39 and 110 of the Treaty; 
Whereas, in order to facilitate implementation of the 
proposed measures, a procedure should be provided 
for establishing close cooperation between Member 
States and the Commission within a Management 
Committee; 
Whereas it should be laid down that financial 
responsiblity for the expenditure incurred by Member 
States as a result of their obligations under this Regu­
lation should be borne by the Community, in 
accordance with the regulations governing the 
financing of the common agricultural policy, HAS ADOPTED THIS REGULATION: 
Article 1 
Products covered 
1. This Regulation shall apply to the following 
products: 
CCT heading 
No 
22.08 A I 
22.08 B I 
22.09 A I Description 
Denatured ethyl alcohol of any strength, of 
agricultural origin 
Undenatured ethyl alcohol of a strength of 
80° or higher, of agricultural origin 
Undenatured ethyl alcohol of a strength of 
less than 80°, of agricultural origin 
2. This Regulation establishes in respect of the 
products specified in paragraph 1: 
— a common organization of the market in ethyl 
alcohol of agricultural origin, 
— rules supplementing the provisions applicable to 
some of these products in connection with the 
respective common organizations of the market in 
fruit and vegetables and in wine. 
3. For the purposes of this Regulation, 'ethyl 
alcohol of agricultural origin' means the liquid 
obtained by distillation, after alcoholic fermentation, 
from alcohol-producing agricultural products, 
excluding spirituous beverages as defined in Regu­
lation (EEC) No ... O-
4. For the purposes of this Regulation, 'alcohol-
producing agricultural products' means the products 
falling within Chapters 7, 8, 10, 11, 12, and 23 and 
headings Nos 17.01, 17.02, 17.03, 17.05, 22.04, 22.05 
and 22.07 of the Common Customs Tariff. 
The Council, acting by a qualified majority on a 
proposal from the Commission, may alter the list of 
chapters and headings of the Common Customs 
Tariff referred to in the preceding subparagraph, 
subject to the limits laid down in Annex II to the 
Treaty. 
Article 2 
The marketing year for ethyl alcohol of agricultural 
origin shall begin on 1 July each year and end on 
30 June of the following year. 
Article 3 
1. Under the conditions laid down in paragraph 4, 
a fixed-rate subsidy shall be granted for the 
production of the products specified in Article 1 (1) 
(') See the proposal from the Commission to the Council on 
the definition of spirituous beverages (COM(82) 328 
final — OJ No C 189, 23. 7. 1982, p. 7). 
10.8.83 Official Journal of the European Communities No C 214/9 
and obtained from the following alcohol-producing 
agricultural products harvested in the Community: 
sugar beet 
cereals 
potatoes 
fruit 
sugar cane. 
2. The amount of the subsidy shall be fixed per 
hectolitre of ethyl alcohol at 100 % vol in such a way 
as to guarantee a fair income for the agricultural 
producer, taking into account the present situation 
and foreseeable trends on the market. 
3. The amount of the subsidy shall be varied on 
the basis of the alcohol-producing agricultural 
product used. The amount of the subsidy shall be 
uniform for each of these alcohol-producing agri­
cultural products throughout the Community. It may 
be varied on the basis of the quality of the alcohol 
obtained and of the size of the distillery. 
4. The amount of the subsidy shall be fixed in 
accordance with the procedure laid down in Article 
43 (2) of the Treaty. It shall be fixed before 1 July 
each year for the following crop year. The Council 
shall ensure that the subsidy thus fixed does not result 
in unacceptable distortions of competition as between 
the different agricultural alcohols produced in the 
Community. 
5. The Council, acting by a qualified majority on a 
proposal from the Commission, shall adopt general 
rules for the application of this Article. 
6. Detailed rules for the application of this Article 
shall be adopted in accordance with the procedure 
laid down in Article 35. 
Article 4 
1. For each of the alcohol-producing raw materials 
specified in Article lb 1), the subsidy shall be granted 
for a limited quantity of ethyl alcohol of agricultural 
origin. 
2. The quantities referred to in the preceding 
paragraph shall be determined by reference to: 
— average production during the last five known 
marketing years, and 
— possible production outlets. 
To this end, the Commission shall each year submit a 
report to the Council to enable it to assess these 
factors and likely trends. 
3. The quantities referred to in paragraph 1 shall 
be fixed in accordance with the procedure laid down 
in Article 43 (2) of the Treaty. 4. Detailed rules for the application of this Article 
shall be adopted in accordance with the procedure 
laid down in Article 35. 
Article 5 
Apportionment among distillers 
1. The quantities referred to in Article lc (1) shall 
be apportioned among Community distillers. 
2. The apportionment among Community distillers 
shall be done before 1 November each year for the 
following marketing year in accordance with the 
procedure laid down in Article 35, taking account of 
the distillers' average production during the last five 
marketing years. 
3. The Council, acting by a qualified majority on a 
proposal from the Commission, shall adopt general 
rules concerning the apportionment among 
Community distillers, taking into account 
— the need to reserve a share of production for new 
distillers, and 
— the possibility of transferring all or part of the 
production of one distiller to another or from one 
marketing year to another. 
4. Detailed rules for the application of this Article 
shall be adopted in accordance with the procedure 
laid down in Article 35. 
Article 6 
The Council, acting by a qualified majority on a 
proposal from the Commission, shall adopt general 
rules to which Community distillers must conform in 
their relations with producers of alcohol-producing 
agricultural products. 
Article 7 
Measures to safeguard molasses alcohol 
1. If the molasses alcohol market in the 
Community is disrupted or threatened with disruption 
by competition from other types of alcohol, parti­
cularly non-agricultural alcohols, suitable measures, 
including temporary aid, may be applied to this 
alcohol until the disruption or threat of disruption is 
no longer present. 
2. Detailed rules for the application of this Article 
shall be decided upon in accordance with the 
procedure laid down in Article 35. 
No C 214/10 Official Journal of the European Communities 10.8.83 
Article 8 
Amendment of the Common Customs Tariff 
The Common Customs Tariff is amended in 
accordance with the Annex. 
Article 9 
Application of the Common Customs Tariff 
1. The general rules for the interpretation of the 
Common Customs Tariff and its special rules for its 
application shall apply to the tariff classification of 
the products specified in Article 1 (1); the tariff 
nomenclature resulting from the application of this 
Regulation to these products shall be incorporated in 
the Common Customs Tariff. 
2. Save as otherwise provided in this Regulation or 
by the Council acting by a qualified majority on a 
proposal from the Commission, the following shall be 
prohibited in trade with third countries in the 
products referred to in Article 1 (1): 
— the levying of any charge having effect equivalent 
to a customs duty, 
— the application of any quantitative restriction or 
measure having equivalent effect. 
Article 10 
Prohibition of inward processing arrangements 
To the extent necessary for the proper working of the 
common organization of the market in ethyl alcohol 
of agricultural origin, the Council, acting by a 
qualified majority on a proposal from the 
Commission, may prohibit in whole or in part the 
application of inward processing arrangements in 
respect of all or some of the products specified in 
Article 1 (1). 
Article 11 
1. If the Community market in the products 
specified in Article 1 (1) experiences or is threatened, 
by reason of imports or exports of those products, 
with serious disturbances which may endanger the 
objectives set out in Article 39 of the Treaty, appro­
priate measures may be applied to those products in 
trade with third countries until such disturbance or 
threat of disturbance has ceased. 
The Council, acting by a qualified majority on a 
proposal from the Commission, shall adopt rules for 
the application of this paragraph and define the cases 
in which and the limits within which the Member 
States may take interim protective measures. 2. If the situation mentioned in paragraph 1 arises, 
the Commission shall, at the request of a Member 
State or on its own initiative, decide upon the 
necessary measures; the measures shall be notified to 
the Member States and shall be immediately 
applicable. If the Commission receives a request from 
a Member State, it shall take a decision thereon 
within 24 hours following receipt of the request. 
3. The Commission Decision may be referred to 
the Council by any Member State within three 
working days following the day on which it was 
communicated. The Council shall meet without delay. 
It may, acting by a qualified majority, amend or 
repeal the measure in question. 
Article 12 
Aid 
Save as otherwise provided in this Regulation, 
Articles 92 to 94 of the Treaty shall apply to the 
production of and trade in ethyl alcohol of agri­
cultural origin. 
Article 13 
The regulations governing the financing of the 
common agricultural policy shall apply to the market 
for the products specified in Article 1(1). 
Article 14 
Exclusive rights 
Provisions which grant to certain natural or legal 
persons or which restrict to nationals of one Member 
State the exclusive right to produce, package, 
transport, store, refine, import, export, purchase, sell 
or otherwise market ethyl alcohol of agricultural 
origin shall be incompatible with this Regulation. 
Article U 
Establishment of a Management Committee 
1. A Management Committee for Ethyl Alcohol of 
Agricultural Origin (hereinafter called 'the 
Committee') shall be established, consisting of repres­
entatives of Member States and presided over by a 
representative of the Commission. 
2. Within the Committee, the votes of Member 
States shall be weighted in accordance with Article 
148 (2) of the Treaty. The chairman shall not vote. 
10.8.83 Official Journal of the European Communities No C 214/11 
Article 16 
Procedure of the Management Committee 
1. Where reference is made to the procedure laid 
down in this Article, the chairman shall refer the 
matter to the Committee either on his own initiative 
or at the request of the represenatative of a Member 
State. 
2. The representative of the Commission shall 
submit a draft of the measures to be taken. The 
Committee shall deliver its opinion on such measures 
within a time limit to be set by the chairman 
according to the urgency of the questions under 
consideration. Opinions shall be adopted by a 
majority of 45 votes. 
3. The Commission shall adopt measures which 
shall apply immediately. However, if these measures 
are not in accordance with the opinion of the 
Committee, they shall forthwith be communicated by 
the Commission to the Council. In that event the 
Commission may defer application of the measures 
which it has adopted for not more than one month 
from the date of such communication. 
The Council, acting by a qualified majority, may take 
a different decision within one month. 
Article 17 
Other tasks of the Management Committee 
The Committee may consider any other question 
referred to it by its chairman either on his own 
initiative or at the request of the representative of a 
Member State. 
Article 18 
Communication and information 
Member States and the Commission shall 
communciate to each other the information necessary 
for applying this Regulation. Detailed rules for the 
communication and distribution of such information 
shall be adopted in accordance with the procedure 
laid down in Article 35. 
Article 19 
Research 
The necessary measures to encourage the search for 
new outlets for ethyl alcohol of agricultural origin 
shall be taken in accordance with the procedure laid 
down in Article 43 (2) of the Treaty. Article 20 
Objectives 
This Regulation shall be so applied that appropriate 
and simultaneous account is taken of the objectives 
set out in Articles 39 and 110 of the Treaty. 
Article 21 
Transitional measures 
Should transitional measures be necessary to facilitate 
the transition from the existing system to the system 
established by this Regulation, in particular if the 
introduction of the new system on the date provided 
for would give rise to substantial difficulties in respect 
of certain products, such measures shall be adopted in 
accordance with the procedure laid down in Article 
35. 
They shall be applicable until 30 June 1985 at the 
latest. 
Article 22 
Before the end of the third marketing year for which 
this Regulation is in operation, the Commission shall 
put a report before the Council analyzing the 
production structure for agricultural alcohol in the 
Community. This report shall also cover the 
application of this Regulation. On the basis of that 
report, the Council may adopt, in accordance with 
the procedure laid down in Article 43 (2) of the 
Treaty, a plan for structural reorganization in this 
sector. 
If necessary, the Council shall also adopt the 
amendments to this Regulation required to take 
account of the experience gained and of changing 
economic conditions in this sector, and in particular 
the production pattern in agricultural alcohol 
qualifying for Community aid and the pattern of 
utilization in the two reserved sectors. 
Article 23 
Entry into force 
This Regulation shall enter into force on 1 January 
1984. 
It shall take effect on 1 July 1984. 
This Regulation shall be binding in its entirety and 
directly applicable in all Member States.