COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 22.07.1996 
COM(96)368 final 
Proposal for a 
COUNCIL REGULATION (EC) 
amending Regulation (EEC) No 2046/89 laying down general rules 
for distillation operations involving wine and the by-products of winemaking 
(presented by the Commission) 

EXPLANATORY MEMORANDUM 
The purpose of this Regulation is to: 
1. make permanent the provision whereby associations of winegrowers' cooperatives can be 
treated as producers for the purposes of distillation covered by Article 1 of Regulation 
(EEC) No 2046/89. Experience since 1990 has shown that this can simplify administrative 
procedures without reducing the effectiveness of the distillation measures. Under the 
provisions in force the Council has always renewed the provision for each wine year as part 
of the prices package; 
2. enable distillers to cover themselves in part against the risk of recovery following 
retrospective verification of their aid applications. Under Article 22 of Regulation (EEC) 
No 2046/89 aid unduly paid can be recovered only from the distiller. Checks sometimes 
reveal errors or imprécisions on the part of vintagers or vinifiers. To prevent the entire 
burden being borne by the distiller in such cases it should be possible for the security, 
normally given by the distiller, to be lodged with assistance from the producer or vinifier 
who delivered the raw material to be distilled, provided that he has received the minimum 
price for his delivery; 
3. authorise distillers under certain conditions to receive the differentiated prices. Member 
States can choose between applying the standard price and the differentiated prices for 
payment for alcohol delivered to intervention under Article 35(6) of Regulation (EEC) 
No 822/87. Some however automatically apply the standard price although the possibility 
exists of applying in some regions prices for the alcohol delivered to the intervention 
agency that are differentiated according to the raw material used. 
To eliminate any discrimination between distillers in the same production region of a 
Member State it should therefore be specified that where the standard price is selected for 
administrative or accounting reasons the intervention agency is to apply the differentiated 
prices in line with the by-product volumes distilled in the case of distillers who exceed a 
certain percentage of one of the by-products distilled. 
* 
Proposal for a 
Council Regulation (EC) No 
of 
r 
amending Regulation (EEC) No 2046/89 laying down general rules 
for distillation operations involving wine and the by-products of winemaking 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, 
Having regard to Council Regulation (EEC) No 822/87 of 16 March 1987 on the common 
organization of the market in wine1, as last amended by Regulation (EC) No 1544/952, and in 
particular Articles 35(7), 36(5), 38(4), 39(8), 41(8) and 42(4) thereof, 
Having regard to the proposal from the Commission3, 
Whereas under Article 2(3) of Council Regulation (EEC) No 2046/894, as last amended by 
Regulation (EEC) No 1546/955, Member States may treat associations of winegrowers" 
cooperatives as producers for the purposes of compulsory distillation; whereas paragraph 4 of the 
said Article requires the Commission to submit a report on this matter; whereas in the light of 
the report this possibility should be made permanent; 
Whereas for operational effectiveness Member States should no longer be able to choose to apply 
the standard prices only but distillers should be allowed subject to certain conditions to benefit 
from variations in the alcohol selling price according to raw material distilled; 
Whereas retrospective checks on aid applications from distillers sometimes bring to light errors 
or imprécisions on the part of the harvesters of the grapes or producers of the wine; whereas the 
liabilities arising therefrom should therefore be assumed by these; whereas to this end it should 
be possible for the security to be financed in part by the wine producer, 
OJNoL84, 27.3.1987, p. 1. 
OJNoL 148, 30.6.1995, p.31. 
O J No C 
OJNo L 202, 14.7.1989, p.14. 
OJNo L 148, 30.6.1995, p.34. 
HAS ADOPTED THIS REGULATION: 
Article 1 
Regulation (EEC) No 2046/89 is hereby amended as follows: 
1. Article 2(4) is deleted. 
2. The following subparagraph is added after the first subparagraph of Article 4(2): 
"Contracts shall contain a clause whereby the producer assumes liability to the distiller for 
errors and omissions in the information he has transmitted to him that fall within his 
responsibility." 
3. The following sentence is added to the first subparagraph of Article 8(1): 
"The security may be partly financed by the producer." 
4. The last subparagraph of Article 18(3) is replaced by: 
"Member States 
may decide to apply differentiated prices if application of the standard price would or 
could make it impossible in certain regions to have one or more winemaking by­
products distilled 
must in all cases grant them to distillers who in the course of a wine year have distilled 
one or other raw material to a percentage exceeding 60% of their total distillation." 
Article 2 
This Regulation shall enter into force on the seventh day following its publication in the Official 
Journal of the European Communities. 
It shall apply from 1 September 1996. 
This Regulation shall be binding in its entirety and directly applicable in all Member States. 
Done at For. the Council 
HEPQRT 
Subject: Treatment of associations of winegrowers' cooperatives as producers for the purposes 
of distillation operations 
1. Council Regulation (EEC) No 2046/89 sets general rules for distillation of wine and by­
products of winemaking. It provides that for a limited period Member States could authorise 
these associations to replace their member cooperatives for the purposes of conclusion of 
contracts, delivery of wine to distillers and exercise and discharge of each cooperative's 
rights and obligations under Community rules. 
The purpose was to facilitate handling of the conclusion of contracts and actual delivery of 
wine for the distillation specified. 
Under Article 2(4) of that Regulation the Commission submits the report in question with 
the national provisions adopted by certain Member States and a proposal to make the option 
a permanent one. 
2. Italy is the only Member State that has taken up the option. She has informed us that only 
two associations of cooperatives have been granted the status in question. These associations 
sent the following quantities of table wine for Community distillation: 
Compulsory distillation 1992/93: 723 233 hi 
" 1993/94 
Preventive distillation 1994/95 
" 1995/96 1 341 922 hi 
659 214 hi 
137 220 hi 
These represented the following proportions of total volume distilled: 
('000 hi) 
Country: 
Italy 
Marketing 
year 
1992/1993 
1993/1994 
1994/1995 
1995/1996 Article 381 
Total volume 
distilled 
EC 
16 464 
9 667 
5 658 
1 898 Italy 
7 046 
4 415 
3 304 
8002 "AWGC" 
distillation as % 
of total volume 
EC 
-
-
11.5 
7.2 Italy 
-
-
19.9 
17.1 Article 391 
Total volume 
distilled 
EC 
8 492 
6 854 
-
-Italy 
4 702 
5 598 
-
-"AWGC" 
distillation as % 
of total volume 
EC 
8.5 
19.6 
-
-Italy 
15.4 
22.5 
-
-
Recognition of associations as producers has been granted each year by the authorities on the 
basis of Ministerial Decree No 451 of 15 June 1989 (see Annex). 
This has enabled Italy to concentrate supply from different cooperatives and at the same time 
reduce the administrative documentation needed to manage the Community measures and has 
enabled the associations to adjust supply more effectively to market requirements by targeting 
towards one or other distillation wine that at a given moment presented major disposal 
difficulties compared with other types of table wine available. 
The Commission, given the positive experience described above for the Community and for 
Italy, suggests to the Council that the provision be made permanent. 
Reg. (EEC) No 822/87. 
Volume of wine for preventive distillation on basis of contracts subscribed. 
C 
FINANCIAL STATEMENT DATE: 20.6.96 
1. BUDGET HEADING: 
Bl - 1611 and 1612 APPROPRIATIONS: 
ECU 312 m and 68 m 
TITLE: 
Proposal for a Council Regulation amending Regulation (EEC) No 2046/89 laying down general rules for distillation 
operations involving wine and the by-products of winemaking 
LEGAL BASIS: Regulation (EEC) No 2046/89 
AIMS OF PROJECT: 
(a) Make permanent the provision whereby associations of winegrowers' cooperatives can be treated as producers for 
the purposes of distillation measures 
(b) Allow the security given by the distiller to be financed in part by the producer or vinifier 
(c) Make it possible for intervention agencies to apply prices differentiated according to the by-products distilled. 
FINANCIAL IMPLICATIONS PERIOD OF 
12 MONTHS 
million ecu CURRENT 
FINANCIAL 
YEAR (96) 
million ecu FOLLOWING 
FINANCIAL 
YEAR (97) 
million ecu 
5.0. EXPENDITURE 
- CHARGED TO THE EC BUDGET 
(REFUNDS/INTERVENTION) 
- NATIONAL ADMINISTRATION 
-OTHER 
5.1. REVENUE 
- OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS DUTIES) 
- NATIONAL 
5.0.1. ESTIMATED EXPENDITURE 
5.1.1. ESTIMATED REVENUE 1998 1999 2000 2001 
5.2. METHOD OF CALCULATION: 
6.0. CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT 
CHAPTER OF THE CURRENT BUDGET? YES 
6.1. CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT 
BUDGET? YES 
6.2. IS A SUPPLEMENTARY BUDGET NECESSARY? NO 
6.3. WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? NO 
OBSERVATIONS: No financial implications 

ISSN 0254-1475 
COM(96) 368 final 
DOCUMENTS 
EN 03 
Catalogue number : CB-CO-96-369-EN-C 
ISBN 92-78-07226-5 
Office for Officiai Publications of the European Communities 
L-2985 Luxembourg