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Vol.1982/0254

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(82)831 final .
Brussels ,14December 1982
A "„•>"
/WV*v\
AyC3A ^
Proposal for a
COUNCIL REGULATION (EEC )
laying down general rules fordistillation operations involving wine and
theby-products ofwine-making
(submitted tothe Council bytheCommission )
C0M(82 )831 final

EXPLANATORY MEMORANDUM
In1977 (l)andagain in1980 (2)theCommission presented totheCouncil
proposals toimprove and consolidate thegeneral rules relating tocertain
distillation operations .Noagreement has yet been reached within theCouncil .
TheCouncil has since adopted far-reaching amendments tothebasic Regulation ,
particularly inrespect ofdistillation (3).
This being the case ,theCommission isputting forward anewproposal for a
regulation laying down thegeneral rules relating tocertain distillation
operations involving wine and theby-products ofwine-making ;this new
regulation will replace current Regulations No343/79andNo349/79*
Atthesame time the Commission iswithdrawing theproposal which itput
forawrd in1980 andwhich hasbecome irrelevant (2).
Theadoption ofthis proposal foraregulation does notentail anyfinancial
consequences fortheCommunity budget .
(1)COM (77)667final of13December 1977
(2)COM (80)232final of8May1980 .
(3)Regulation No2144 /82of17July 1982 ,OJNoL227of3.8.1982 .

-2-
PROPOSAL FOR
COUNCIL REGULATION (EEC )
laying down thegeneral rules forcertain distillation operations
involving wine and theby-products ofwine-making .
THE COUNCIL OPTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ,
Having regard toCouncil Regulation No337/79of5February 1979 onthecommon
organization ofthemarket inwine (l),aslast amended byRegulation (EEC)
No3082 /82(2),andinparticular Articles ll(3 ),12a(4 ),15(8 ),39(7 ),40(5 )
and41(6 )thereof ,
Having regard tothe proposal from theCommission ,
Whereas Council Regulation (EEC)No343/79of5February 1979 laying down
general rules governing certain distillation operations inthewine sector
(3)»aslast amended byRegulation (EEC )No2008 /82 (4)»andCouncil
Regulation (EEC )No349/79of5February 1979 onthedistillation ofthe
by-products ofwine-making (5)laid down theconditions inwhich certain
distillation operations referred toinRegulation (EEC )No337/79were tobe
carried out ;whereas account being taken ,onthe onehand ,oftheamendments
which have been made tothelatter Regulation since theadoption ofthe
abovementioned Regulations and ,onthe other hand ,oftheexperience gained ,
itisnecessary toamend these general rules and tobring them together ina
single regulation ;
(1)OJNoL54,
(2)OJNoL326 ,
(3)OJNoL54,
(4)OJNoL216 ,
(5)OJNoL54,5.3.1979 ,p.l
23.11.1982 ,p.l
5.3.1979 ,p.64
24.7.1982 ,p.2
5.3-1979 ,p.84

-3-
Whereas it13necessary todetermine theproducts which maybeobtained by
distillation ;
1
Whereas itisnecessary toforesee thequantitative effects which distillation
operations will have onthemarket ;whereas ,forthis purpose ,itwould seem
appropriate torequire that producers wishing todeliver wine foroneofthe
distillation operations provided forinArticles 11,12aand 15ofRegulation
(EEC )No337/79should submit adeclaration ofdelivery forapproval bythe
intervention agency ;
Whereas Article 6ofRegulation (EEC)No337/79makes recourse tothe
distillation operations provided forinArticles 11,12aand 15ofthat
Regulation conditional ontheproducer 'scompliance with certain obligations ;
whereas therefore ,provision should bemade i£or both thedistiller andthe
intervention agency toreceive proof that theproducer hasmetthese
obligations ;whereas thenecessary provisions should beadopted toensure
that nofinancial contribution ispayable bytheCommunity incases where
producers have notmet theabovementioned obligations ;

-3a-
whereas theprices set forwines fordistillation inArticles 11,12aand 15
ofRegulation (EEC)No337/79areusually such that theproducts obtained by
distillation cannot bedisposed ofunder market conditions ;whereas ,
therefore ,criteria should beadopted for fixing theamount ofthe aid soas
tomake possible thedisposal oftheproducts obtained ;
Whereas provision should bemade that theminimum price guaranteed to
producers should bepaid tothe latter bythedistiller ,asageneral rule ,
within aperiod which enables producers tomake aprofit comparable tothat
which they would have made from acommercial sale ;whereas ,asregards the
payment ofaid todistillers bytheintervention agencies ,itisnecessary to
set time limits which take account both ofthe need toavoid creating
financial problems for distillers and ofthe time needed for the
completion oftheadministrative and supervisory tasks entrusted tothe
intervention agencies ;whereas provision should bemade for advance
payment ofaid tothedistiller ;whereas ,toensure that theintervention
agency isnotexposed tounjustified risks ,itisnecessary toprovide for a
svstem ofcontracts and securities ;

-4-
Whereas thequantities ofwine which maybedelivered fordistillation as
referred toinArticle 15(l )or(2)ofRegulation (EEC)No337/79are
limited ;whereas ,therefore ,theCommission should beregularly supplied with
particulars ofthequantities ofwine intended fordistillation ,sothat it
candecide ,atshort notice ifrequired ,tohalt thesubmission of
declarations andprevent theprescribed quantities from being exceeded ;
Whereas experience hasshown that ,where compulsory distillation isconcerned ,
itisnotalways easy forproducers tocalculate exactly thequantities of
products which they have todeliver inorder tomeet their obligation ;
whereas provision should bemade toensure that theexpiry ofthe period
fordelivery does not entail ,forproducers who have delivered almost all the
quantities required andhave only tomake some adjustments ,consequences which
are outofproportion totheinfringement committed ,particularly asregards
theapplication ofArticle 6(1)ofRegulation (EEC )No337/79;whereas ,to
this end ,itwould seem advisable toconsider that such producers have
fulfilled their obligations within the time limits ,provided that the
intervention agencies authorize them todeliver thequantities outstanding ,in
accordance with procedures laid down bytheagencies ;whereas ,however ,in
such cases nofinancial contribution should bepayable bytheEuropean
Agicultural Guidance andGuarantee Fund (EAGGF )inrespect ofthequantities
delivered after "the time limit ;
Whereas ,asaconsequence ofthederogation provided forinthesecond
subparagraph ofArticle 39(l )ofRegulation (EEC)No337/79»itispossible to
obtain and torelease tothemarket products forwhich theCommunity
accompanying document forwine products cannot beused ;whereas ,toprevent
anyfraudulent useoftheproducts inquestion ,theMember States concerned
should beobliged tointroduce arrangements tocontrol themovement ofsuch
products ;
Whereas theobligation todistil represents aconsiderable constraint forthe
isolated producer whomakes only asmall quantity ofwine ;whereas ,asa
result ofthat obligation ,hewould incur transport costs forhisgrape marc
andwine lees which would beoutofallproportion tothereturn which he
could hope toobtain onthealcohol distilled therefrom ;whereas such
producers should therefore beexempted from theobligation todistil ;

-5-
Whereas ,tosimplify administration and toensure fairness oftreatment ,the
quantities ofwine covered bytheobligations todistil referred toin
Articles 40and 41ofRegulation (EEC )No337/79should notbeincluded inthe
calculation ofthequantities ofwine tobedelivered forcompulsory
distillation ;
Whereas producers whodeliver their marc for themanufacture ofoenocyanin
generally supply non-fermented grape marc ;whereas thetreatment which such
marc undergoes for theextraction ofoenocyanin makes itunsuitable for
fermentation anddistillation thereafter ;whereas those producers should
therefore beexempted inproportion totheir production ofgrape marc ;
Whereas ,inaccordance with Article ll(l )ofCouncil Regulation (EEC)No
338/79of5February 1979 laying down special provisions relating toquality
wines produced inspecified regions (6),aslast amended byRegulation (EEC)
No2145 /82 (7j,ayield perhectare isfixed foreach quality wine
psr ,which facilitates observance oftheprohibition against thepressing of
wine lees andoverpressing ofgrapes ;whereas ,moreover ,themarcs and lees
ofwhite quality wines psrcontain little alcohol ;whereas ,therefore ,areduced
rate should beapplied tothese products ;
Whereas ,ifthewine tobedelivered fordistillation isused for the
manufacture ofwine vinegar ,thevolume ofalcohol delivered to
intervention agencies islikely tobereduced ;whereas ,therefore ,producers
should beallowed todischarge their obligation todistil bydelivering tothe
vinegar industry thewine which would otherwise benecessary tomake upthe
quantity forcompulsory distillation ;
Whereas ,where theby-products ofwine-making arewithdrawn under supervision
inaccordance with Article 39(4 )and (5)ofRegulation (EEC )No337/79,itis
important toensure that allby-products oftheprocessing ofgrapes have been
withdrawn bytheendofthewine year inwhich they were produced ;whereas ,
forthis purpose ,provision should bemade foranappropriate monitoring
system ;
(6)OJNoL54,5.3.1979 ,p.48
(7)OJNoL227,3.8.1982 ,p.10

-6-
Whereas ,theproof required that mar,lees orwine have been delivered toadistiller
should differ according towhether thedistiller isestablished inthesame
Member State astheproducer orinanother Member State ;
Whereas distillers may ,inaccordance with Article 39(6 ),Article 40(4 )or
Article 41(5)ofRegulation (EEC)No337/79,either qualify foraidinrespect
oftheproduct tobedistilled ordeliver totheintervention agency the
product obtained bydistillation ;whereas theamount oftheaid should be
fixed inthelight ofthemarket price forthevarious products which may be
obtained bydistillation ;
Whereas ,toqualify for theaid ,theparties concerned must lodge an
application accompanied byanumber ofsupporting documents ;whereas ,to
ensure that thesystem operates uniformly inallMember States ,time limits
for thelodging ofapplications and for thepayment ofaid todistillers
should belaid down ;whereas itisalso advisable tomake proportional
allowance fordistillers who ,although they have met their principal
obligations ,are late infurnishing proof thereof ;
Whereas theprice tobepaid bytheintervention agencies fortheproducts
delivered tothem should befixed inthelight oftheaverage cost oftransport
anddistillation ofthe theproduct inquestion ;whereas ,toavoid any
discrimination between operators because ofthedistance between their
premises andthevarious warehouses oftheintervention agencies ,provision
should bemade foradjustments tothebuying-in price for products tobe
delivered ;
Whereas asingle standard price should befixed for products delivered to
intervention agencies inconnection with thedistillation operation
referred toinArticle 39ofRegulation (EEC)No337/79,irrespective ofthe
origin oftheproducts ;

-7-
Whereas ,incertain regions oftheCommunity ,therelation between the
quantities ofmarc and those ofwine and lees issuch that theaverage
distillation costs differ from those used tocalculate thestandard price ; >
whereas ,asaresult ofthis situation ,itis,orisliable tobe,
economically impossible incertain ofthese regions toachieve theobjective
oftheobligation todistil theby-products ofwine-making ;whereas itis
therefore necessary tofix ,atthesame time ,both astandard price andprices
differentiated according totheorigin ofthealcohol ,while leaving ittothe
Member States todecide whether such differentiated prices should beapplied
inregions where 'application ofthestandard price would lead tothe
difficulties referred toabove ;
Whereas recourse tothis option must notincrease theexpenditure incurred by
theintervention agency and ,hence ,bythe%AGGF ;
whereas itistherefore necessary tocorrelate theprices
differentiated according totheorigin ofthealcohol and thestandard price ;
whereas this correlation must besuch that theweighted average oftheprices
differentiated according totheorigin ofthealcohol does notexceed the
standard price ;
Whereas ,toavoid therisk ofanydisturbance ofthemarket inspirituous
beverages ,itshould bepossible tostipulate that only neutral alcohol maybe
produced bythedistillation ofwines suitable fortheproduction ofcertain
spirituous beverages with aregistered designation oforigin ;whereas ,inthe
case ofproducers whohave distillation facilities anddistil their own
product ,provision should bemade for-'supervi sion by anofficial body and
for analysis ofcertain characteristics oftheproducts tobedistilled ;
Whereas ,intheabsence ofanorganized Community market inethyl alcohol ,the
intervention agencies responsible formarketing thealcohol which they are
obliged totake over following thedistillation operations referred toin
Articles 39and40ofRegulation (EEC)^ 337/79have tore-sell itatless
than thebuying-in price ;whereas provisions should bemade forthe
difference between thebuying-in price andtheselling price forsuch alcohol
tobeborne ,atastandard rate ,bytheGuarantee Section oftheEAGGF ;

-8-
Whereas ,forthepurposes ofthepayment oftheaid ,thecalculation ofthe
quantities ofproducts which may bedelivered totheintervention agencies and
theverification ofcompliance with theobligations regarding distillation ,it
isnecessary toknow thecharacteristics oftheproducts delivered for
distillation ;whereas ,therefore ,asystem ofchecks should beintroduced ,
based asageneral rule onverification that thecharacteristics ofthewine
delivered are asindicated ontheaccompanying document ;
Whereas steps should betaken tocover unforeseeable circumstances orforce
majeure which mayprevent distillation from taking place asplanned ;
Whereas ,totake account oftheactual situation onthemarket inwine for
distillation ,both distillers and •makers should beauthorized to
fortify such wine fordistillation andthenecessary adjustments should be
made tothe overall arrangements ;
Whereas Member States should beable torestrict theplaces atwhich wine may
befortified fordistillation inorder toensure themost appropriate form of
supervision ;
Whereas theaddition ofanindicator towine fordistillation isaneffective
method ofsupervision ;whereas itshould bestipulated that thepresence of
such anindicator shall benobartofree movement ofsuch wine orofthe
products obtained therefrom ,
HAS ADOPTED THIS REGULATION :

_9_
Article 1
This Regulation lays down :
(a)inTitle I,thegeneral rules forthedistillation operations provided
forinArticlesll ,12aand15ofRegulation (EEC )No537/79;
(b)InTitle II,thegeneral rules forthedistillation operations provided
forinArticles 39»40and41ofRegulation (EEC)No337/79;
(c)inTitle III ,thegeneral rules applicable toallthedistillation
operations covered byTitles Iand II.
Article 2
1.For thepurposes ofthis Regulation :
(a)producer means anynatural orlegal person orgroup ofpersons whomake
wine orany natural orlegal person subject totheobligations referred
toinArticle 39ofRegulation (EEC)No337/79«
(b)distiller means anynatural orlegal person orgroup ofpersons who
-distil ,either ontheir own behalf oronbehalf ofothers ,wine or
fortified wine ortheby-products ofwinemaking orofanyother form
ofprocessing ofgrapes ,and
-have been approved bythecompetent authorities intheMember State on
whose territory thedistillation plant islocated ;
(c)competent intervention agency means :
-where thereception andapproval ofdeclarations relating tothe
delivery ofwine fordistillation orfortification areconcerned ,the
intervention agency designated bytheMember State onwhose territory
the wine islocated atthe time when the declaration issubmitted ;
-inallother cases ,theintervention agency designated bytheMember
State onwhose territory thedistillation orfortification ofwine is
carried out .

_io.
2.Forthepurposes ofapplying Title I,anynatural orlegal person ,other
than theprocessor fortifying wine fordistillation ,who :
-buys wine inorder tohave itdistilled byadistiller ,and
-pays totheproducer ,for wine bought from thelatter ,notless
than theprice specified /inArticle
11(2 ),Article 12a(3 )orArticle 15(5 )ofRegulation (EEC)No337/79,
asthe case may be,where theprice inquestion applies tobulk merchandise
exproducer 'spremises ,
shall beconsidered asaproducer .
Article 3
1.Only thefollowing maybeobtained bythedistillation operations referred
toinArticle 1:
(a)neutral alcohol with analcoholic strength ofatleast 96$vol ,or
(b)wine spirit ormarc spirit meeting thequalitative requirements laid
down intheCommunity rules or,where nosuch rules apply ,bythe
national provisions applicable thereto ,or
(c)rawalcohol with analcoholic strength ofatleast 52$vol .
Where theproduct specified atpoint (c)inthefirst subparagraph is
obtained ,itmay beused only :
(i)fortheproduction ofanalcoholic beverage under official supervision ;
(ii)forprocessing into oneoftheproducts specified atpoint (a)and
(b),under official supervision ,
(iii )forindustrial purposes subject toconditions tobelaid down .
Member States shall take thenecessary measures toensure compliance
with theobligation laid down inthesecond subparagraph .
2.Ifwine suitable for production ofcertain spirituous beverages witharegistered
designation oforigin isdelivered toundergo oneofthedistillation
operations specified inArticle 1,itmay bedecided that only aproduct as
specified atpoint (a)inthefirst subparagraph ofparagraph 1maybeobtained
bythedistillation ofsuch wine .

_11.
TITLE I
General rules relating tothevoluntary distillation ofwine .
Article 4
1.Anyproducer intending todeliver wine ofhis ownproduction forone ofthe
distillation operations specified inArticle l(a )forwhich hesatisfies
the conditions laid down inthe Community rules shall submit tothe
competent intervention agency ,byadate tobespecified ,awritten
declaration relating tothedelivery ofthewine fordistillation ,
hereinafter referred toasthe "declaration ".
2.Thedeclaration referred toinparagraph 1shall specify atleast the
quantity ,thecolour and theactual alcoholic strength byvolume ofthe
wine .Theproducer may notdeliver thewine fordistillation unless the
declaration has been approved bythecompetent intervention agency bya
date tobespecified .
3.Except inthecase ofthedistillation referred toinArticle 12aof
Regulation (EEC )No337/79,thequantity ofwine delivered fordistillation
must benot less than aminimum quantity tobedetermined ,andinno
circumstances less than 10hi.
4.Thedistiller shall pay totheproducer for thewine delivered tohim at
least theprice specified ,inArticle 11(2 ),Article 12a (3)orArticle
15(5 )ofRegulation (EEC )No337/79,asthe case may be,such prices to
apply tobulk merchandise exproducer 'spremises .
5«Theminimum buying-in price referred toinparagraph 4shall bepaid bythe
distiller totheproducer within three months ofeach consignment ofwine
entering thedistillery .

-12-
Article 5
1.Producers subject totheobligations referred toinArticle 6(l)of
Regulation (EEC)No337/79shall provide thedistiller towhom theydeliver
wine toundergo oneofthedistillation operations specified inArticle
l(a)with proof that they have satisfied thesaid obligations during the
reference period fixed inaccordance with Article 6(3 )ofthesaid
Regulation .
2.Foreach producer from whom hehasreceived deliveries ofwine ,the
distiller shall forward tothecompetent intervention agency ,within aper­
iod getbythelatter ,afile containing :
(a)theproof referred toinparagraph 1;
(b)foreach delivery ,astatement ofthequantity ,colour andactual
alcoholic strength byvolume ofthewine ,together with thenumber of
thedocument provided forinArticle 53(l )ofRegulation (EEC )No337/79
andused forthetransport ofthewine tothedistiller 'spremises .
Thedistiller shall submit totheintervention agency ,byadate tobe
fixed ,anaid application either forall thewine delivered bytheproducer
orforeach delivery ofwine from thesame producer andshall provide proof
that thecorresponding quantities ofwine have been distilled .
3«If distillation iscarried out bytheproducer himself inhiscapacity
asanapproved distiller ,thefile , aidapplication and proof of
distillation referred toinparagraph 2shall besubmitted tothecompetent
intervention agency bytheproducer .
4.Where thedistiller isestablished inaMember State other than that where
theproducer 'swinery islocated ,theintervention agency oftheMember
State inwhich distillation takes place shall forward acopy ofthe
file referred tointhefirst subparagraph ofparagraph 2tothe
intervention agency oftheMember State onwhose territory theproducer s
winery islocated .Thelatter agency shall make thenecessary checks and
shall communicate the result ofthese checks tothe former agency .
5.Theintervention agency shall paythedistiller theaidspecified forthe
distillation inquestion within twomonths ofthesubmission oftheproof
referred tointhesecond subparagraph ofparagraph 2.

13
6.Should theverification ofthefile and theapplication reveal that ,in
respect ofallorpart ofthewine delivered ,theproducer does not satisfy'
theconditions laid down bythe Community rules for thedistillation in
question ,thecompetent intervention agency shall inform thedistiller and
theproducer accordingly .Insuch cases ,theminimum buying-in price
referred toinArticle 4(4)shall bereduced inrespect ofallorpart of
thewine delivered ,byanamount equal tothat ofthe aid .
Article 6
1.The aid tobepaid tothe distiller for the wine which has
undergone one ofthedistillation operations provided forinArticles 11,
12aand15ofRegulation (EEC)No337/79shall befixed per%vol .of
alcohol and perhectolitre oftheproduct ofdistillation onthebasis of
theminimum buying-in price fixed for thedistillation inquestion ,the
standard transport andprocessing costs ,thetechnical losses and the
market price for theproducts ofdistillation .
2.The aidgranted inrespect ofwine spirits ^.may notexceed
the aid granted inrespect ofneutral wine alcohol .
The aidgranted inrespect ofrawwine alcohol maynotexceed theaid
granted inrespect ofwine spirits .
Article 7
1.Thedistiller may request that anamount equal totheaid referred toin
Article 6beadvanced tohim oncondition that :
-hehas submitted tothe intervention agency forapproval ,before a
date tobefixed ,adelivery contract concluded with aproducer ;
-hehas lodged ,onbehalf oftheintervention agency ,asecurity equal
to12(# oftheaid .
The security referred tointhe second indent ofthefirst subparagraph
shall beprovided inthe form ofaguarantee given byanestablishment
meeting thecriteria laid down bytheMember State towhich the
intervention agency belongs .

-14.
Theintervention agency shall inform theinterested parties ,within a
period tobespecified ,of'theoutcome oftheapproval procedure .
Advances maybepaid only after thedate onwhich thedelivery contract
was approved .
2.Subject to Article 20,thesecurity referred toin
paragraph 1shall bereleased only if,within periods tobespecified ,
proof has been supplied that :
-aquantity ofwine representing notless than 90%andnotmore than
110$ ofthequantity stated inthecontract hasbeen distilled ;
-theminimum buying-in price hasbeen paid totheproducer within the
stipulated period .
Forwine delivered todistilleries ,atolerance of0.5$ vol .inthe
actual alcoholic strength stated inthedelivery contract shall be
permi tted .
3-Atthetime when thesecurity isreleased ,theintervention agency shall
make thenecessary adjustments totake account ofthetolerances specified
inparagraph 2.
Article 8
1.Inthecase ofthedistillation referred toinArticle 15(l )and (2)of
Regulation (EEC )No337/79.theproducer maynotdeliver fordistillation a
quantity oftable wine greater than thequantity specified inthe
declaration .
2.During thedistillation referred toinparagraph 1,the
Member States shall periodically communicate totheCommission particulars
ofthequantities oftable wine specified inthedeclarations submitted to
the intervention agency .
3'Once thecommunications referred toinparagraph 2indicate that the
quantities specified inthedeclarations have exceeded aquantity tobe
determined under theimplementing rules ,theCommission shall decide to
halt the submission ofdeclarations .

-15-
4.Should thetotal quantity oftable wine stated inthedeclarations
submitted totheintervention agencies exceed thequantity determined in ,
accordance with paragraph 3fitmay bedecided under theimplementing rules
that only the latter quantity should undergo distillation .Insuch cases ,
the quantities which have been entered inthedeclarations andmay be
delivered fordistillation shall bereduced proportionally .
TITLE II
General rules relating tocompulsory distillation .
Article 9
1.Producers subject toanobligation todistil under Articles 39,40or41of
Regulation (EEC)No337/79shall discharge their obligation bydelivering
toadistiller ,before adate tobefixed ,thequantities ofproduct tobe
distilled asdetermined inaccordance with the foregoing Articles and with
themeasures taken inimplementation thereof .
2.Thecompetent intervention agency mayallow producers whoare subject to
one oftheobligations referred toinparagraph 1,and who have delivered
bythedate fixed inaccordance with paragraph 1atleast 90%ofthe
quantity ofproducts which they areobliged todeliver ,todischarge their
obligation bydelivering the remaining quality before adate tobefixed by
thecompetent national authority .
Insuch cases :
thebuying-in price fortheremaining quantities referred tointhefirst
subparagraph and theprice for thealcohol produced therefrom anddelivered
totheintervention agency shall bereduced byanamount equal totheaid
fixed ,inrespect ofthedistillation operation inquestion ,forneutral
alcohol inaccordance with theprovisions ofArticle 14;
foralcohol delivered totheintervention agency inaccordance with the
second indent ofthefirst subparagraph ofArticle 39(6 )andthesecond
indent ofthefirst subparagraph ofArticle 40(4 )ofRegulation (EEC)No
337/79,there shall benoEAGGF contribution to expenditure bythe
intervention agency ;
-noaidshall bepaid forproducts ofdistillation notdelivered to
intervention agencies ;
theobligation shall beconsidered tohave been discharged bythe time
limit set inaccordance with paragraph 1.

-16-
Where useismade ofthis provision ,theMember State concerned shall
inform theCommission of 'theimplementing provisions which ithasadopted .
Article 10
1.Theprice tobepaid bythedistiller totheproducer fortheproducts
delivered totheformer fordistillation under Article 39ofRegulation
(EEC)No337/79must notbelower than thebuying-in price fixed annually
by1August forthefollowing wine year .
This price shall befixed per%volperhectolitre ofalcohol contained in
theproducts inquestion .Itshall benot less than 3C$ ;£)rmore than 40X
ofthe guide price for table wine oftype AIapplicable asfrom 16December
thereafter .
2.Thebuying-in price referred toinparagraph 1andtheprices referred to
inArticle 40(3 )andArticle 41(4 )ofRegulation (EEC )No337/79shall
apply tobulk merchandise exproducer 'spremises .
Article 11
1.Pursuant tothesecond subparagraph ofArticle 39(l )ofRegulation (EEC)
No337/79,andinrespect ofthewine years 1983/84to1986 /87,producers
intheGreek and Italian islands ,except Sicily andSardinia ,located in
wine-growing zones CIIIa)and CIIIb);
-shall beauthorized tooverpress grapes and topress wine lees ,
-may bereleased from their obligation bydelivering toadistiller the
liquid product obtained bytheoperation referred tointhefirst
indent .
TheMember States concerned shall introduce asystem formonitoring the
production andmovement oftheproduct referred tointhe second indent of
the first subparagraph and shall inform theCommission thereof .This
system shall provide atleast for adocument for themovement ofthe said
product todistilleries andmay involve :
-anobligation upon theproducer tonotify thecompetent authority in
advance ifheintends tocarry out theoperation referred tointhe
first indent ofthe second subparagraph ,

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-theaddition ofanindicator tothe product obtained :
-theuseofthedocument referred toinArticle 53(l)of Regulation (EEC)
No337/79forthetransport oftheproducts obtained tothe
distillery ,subject toanyadaptations necessary .
Theobligations referred toinArticle 39ofRegulation (EEC )No337/79
shall not apply to:
-producers who have notmade wine orprocessed grapes inanyother
manner oncooperative premises and who ,during thewine year in
question ,produced notmore than 10hectolitres ofwine ormust ;
-wine producers subject totheobligations laid down inArticle 40(l )
or (2)orArticle 41,inrespect ofthat part oftheir harvest which
iscovered bysuch obligations ;
-producers whowithdraw wine under supervision inaccordance with
Article 12(1 )ofthis Regulation .
Itmay bedecided that theexemption referred tointhe first indent of
the first sub-paragraph shall apply ,subject toconditions tobedetei–
mined ,toproducers who have notmade wine orprocessed grapes inany
other manner oncooperative premises and who,during the wine year in
question ,produce more than 10hectolitres but potmore than 25hecto -
litres ofwine ormust .
Thepercentage mentioned inthesecond subparagraph ofArticle 39(2 )shall be
reduced inthe case of:
)producers whodeliver marc forthemanufacture ofoenocyanin ,
)producers ofquality wines psr ,inrespect ofthepart oftheharvest
which qualifies for this description .
Inthecase ofproducers whodeliver wine oftheir ownproduction tothe
vinegar industry ,thequantity ofalcohol ,expressed interms ofpure
alcohol , contained inthewine delivered tothevinegar factory
shall bededucted from thequantity ofalcohol ,expressed interms ofpure
alcohol , contained inthewine tobedelivered under Article 39(2 )
ofRegulation (EEC )No337/79.

18
Article 12
1.Only those producers whose vineyards are located inwine-growing areas
where distillation represents adisproportionate burden may exercise the
option mentioned inArticle 39(5 )ofRegulation (EEC )No337/79*
Alist ofthewine-growing areas concerned shall bedrawn upbythe
competent authorities oftheMember States .The latter shall inform the
Commission ofthis list .
2.Forthepurposes ofimplementing Article 39(4 )and (5)ofRegulation (EEC )
No337/79
-thequantity ofmarc and lees tobewithdrawn inrelation tothe
quantity ofgrapes used ,and
-thequantity ofalcohol contained inthemarc and lees tobewithdrawn
shall befixed foreach wine-growing year bydetailed implementing rules
or,failing this ,byprovisions which theMember States concerned shall
adopt and notify tothe Commission .
Bymeans ofthedetailed rules orprovisions referred tointhefirst
subparagraph asystem shall beintroduced formonitoring withdrawals ofthe
by-products oftheprocessing ofgrapes ,asreferred toinArticle 39(4 )
and (5)ofRegulation (EEC)No337/79,forthepurpose ofensuring that all
the said by-products have been withdrawn bythe endofthewine-growing
year inwhich they were produced .
Themonitoring system referred tointhe second subparagraph shall involve
atthe least theweighing oftheproducts withdrawn .This may bedone by
the sampling ofrepresentative lots .
Article 13
1.Thedistiller shall provide theproducer ,asproof ofdelivery ,with a
certificate stating atleast thenature ,thequantity and thealcoholic
strength byvolume oftheproduct delivered ,together with thedate of
delivery .
However ,ifaproducer delivers
theproducts which heistohave distilled toadistillery located ina
Member State other than that inwhich the said products were obtained ,

-18a _
thedistiller shall require theintervention agency oftheMember State in
which distillation takes place tocertify ,ontheofficial document
covering transport oftheproducts ,that the latter have been taken
over bythedistillery .The distiILersha 11forward totheproducer acopy ofthe

-19-
said document ,thus certified ,within onemonth ofreception oftheproducts tobe
distilled .
P.Theminimum buying-in price laid down forthedistillation operation in
question shall bepaid bythedistiller totheproducer within chree
months ofeach consignment ofproducts entering thedistillery .
Article 14
1.The aid tobepaid tothedistiller forproducts which have
undergone oneofthedistillation operations referred toinArticl® '39,40
and41ofRegulation (EEC )No337/79shall befixed per% ■volofalcohol and
perhectolitre oftheproduct ofdistillation onthebasis oftheminimum
buying-in price fixed for thedistillation inquestion ,thestandard
transport andprocessing costs ,thetechnical losses and themarket price
for theproducts ofdistillation .
2.The aidgranted inrespect ofspirituous beverages maynotexceed theamount
oftheaidgranted inrespect ofneutral alcohol .
The aidgranted inrespect ofrawalcohol maynotexceed that oftheaid
granted inrespect ofspirituous beverages .
Article 15
Inorder toqualify fortheaidreferred to,asthecase maybe,in
Article 39(6 ),Article 40(4 )orArticle 4l(5 ),>1Regulation (EEC)No337/79,
thedistiller shall submit anapplication totheintervention aqency before a
date tobefixed andshall provide proof ofdistillation .
Theintervention agency shall paythedistiller theaidfixed forthe
distillation operation inquestion within .twomonths of
submission oftheproof ofdistillation .
Thedistiller must provide theintervention agency ,before adate tobefixed ,
with proof that hehaspaid theproducer theminimum buying-in price forthe
product tobedistilled within theperiod specified .

Ifsuch proof isnotprovided before thedate fixed inaccordance with the
first subparagraph ,theaidpaid shall berecovered bytheintervention
agency .If,however ,theproof isprovided after the 'time limit
but by another time limit tobesetandifthedelay isnotdue toserious
negligence bythedistiller ,theintervention agency shall recover 2QfjLofthe
aid paid .
Inthe circumstances referred tointhe first sentence ofthesecond subparagraph ,
the intervention agency shall ,byadate tobefixed ,pay theproducer asumequal
tothe aid .
Article 16
1.Distillers whodonot qualify foraidmaydeliver totheintervention
agency products with analcoholic strength of92??ormore .
Theoperations necessary toobtain theproduct referred tointhefirst
subparagraph may becarried outeither atthepremises ofthedistiller who
delivers the said product totheintervention agency oratthepremises of
ajobbing distiller .
2.Thebuying-in prices referred tointhe third and fourth subparagraphs of
Article 39(6 ),thethird andfourth subparagraphs ofArticle 40(4 )andth
third andfourth subparagraphs ofArticle 41(5 )ofRegulation (EEC)No
337/79shall befixed per hectolitre andper %vol ofpure alcohol .
They shall apply tobulk merchandise free atthewarehouse ofthe
intervention agency .They shall befixed onthebasis oftheminimum
buying-in price fortheproducts 'for thedistillation operation inquest­
ionstandard transport costs for theproducts tobedistilled and for the
products ofdistillation , processing costs and technical losses .

-21 -
3-Atthesame time aathe ,standard price fixed inaccordance with
paragraph 2,differentiated prices may befixed forproducts delivered to
theintervention agency under thethird subparagraph ofArticle 39(6 )i.of
Regulation (EEC )No337/79,depending onwhether theproduct hasbeen dis­
tilled from grape marc ,wine lees orwine ,sothat account istaken ,where
appropriate ,ofthediffering costs and losses .
TheMember States may decide toapply differentiated prices where the
application ofthe standard price would make itimpossible ,orcould make
itimpossible ,tohave oneormore oftheby-products ofwine-making
distilled incertain regions oftheCommunity .Thelevel of prices
fixed for theproducts distilled from thevarious by-products •must be
such that theweighted average ofthese prices does not exceed thestandard
price .
Article 17
The amount ofthe contribution from the EAGGF toexpenditure incurred
by intervention agencies intaking over theproducts ofthedistillation
operations referred toinArticles 39and40ofRegulation (EEC )No337/79
shall befixed atastandard rate perhectolitre andper%volofalcohol on
thebasis ofthebuying-in price forneutral alcohol taken into intervention
and the price for such alcohol ontheCommunity market .
TITLE III
Common provisions
Article 18
Thedistillation operations referred tointhis Regulation may becarried out
only during periods tobedetermined .
Article 19
1.Thecharacteristics oftheproducts delivered fordistillation ,andin
particular thequantity ,thecolour andthealcoholic strength ,shall be
checked when theproducts enter thedistillery onthebasis oftheofficial
document covering thetransport ofthesaid products .
TheMember States mayprovide forsuch checks tobemade bysampling .

-22-
If,inaccordance with theCommunity provisions inforce ,anaccompanying
document has not been made out ,theproduct tobedistilled shall be
checked under arrangements that theMember States shall establish and
communicate tothe Commission .These arrangements must guarantee the same
degree ofeffectiveness asthose provided forinthefirst subparagraph .
2.Ifthedistillation iscarried outbytheproducer himself inhiscapacity
asanapproved distiller ,asample oftheproduct fordistillation shall be
taken under thesupervision ofanofficial body oftheMember State on
whose territory theproducer 'swinery islocated ,sothat anofficial
laboratory may establish byanalysis theactual alcoholic strength by
volume ,thevolatile acidity ...and thesulphur dioxide content .
Theresult ofthis analysis ,endorsed byanofficial body ,shall be
forwarded bytheproducer totheintervention agency oftheMember State
where thedistillation takes place .
Arepresentative ofanofficial body shall check thequantity ofproduct
distilled and the date ofdistillation .
Article 20
1.Where ,owing tounforseeable circumstances orforreasons offorce
majeure allorpart oftheproduct tobedistilled cannot undergo
distillation :
-theproducer ,iftheunforeseeable circumstances orforce majeure
affected theproduct tobedistilled while thelatter was legally at
hisdisposal ,shall without delay inform theintervention agency of
theMember State inwhich hiswinery islocated ;
-thedistiller ,inallother cases ,shall without delay inform the
intervention agency oftheMember State inwhich thedistillery is
located .
2.Inthe circumstances referred toinparagraph 1,the intervention agency ,once
informed ,shall decide onthemeasures which itconsiders necessary .
Inparticular -itmaydefer the time limits .

-23-
Inthe circumstances referred tointhefirst indent ofparagraph 1/aridwhere
theproducer 'swinery andthedistillery arelocated intwodifferent
Member States ,the .intervention agencies ofthe twoMember States concerned
shall cooperate ,bythedirect exchange ofinformation ,forthepurpose of
implementing paragraphs 1and 2.
Inthecircumstances referred tointhesecond indent ofparagraph 1,the
intervention agency ,once informed ,mayalso authorize thedistiller ,
subject totheagreement oftheproducer inthecase ofajobbing
distiller ,totransfer toanother distiller his rights andobligations in
respect ofthequantity ofproducts notyetdistilled .
3»TheMember States shall inform theCommission ofcases inwhich paragraph 1
isapplied and oftheaction taken inresponse torequests that the clauses
relating tounforeseeable circumstances and force majeure should beinvoked .
Article 21
1.Alist ofthedistillers approved toperform thedistillation operations
referred tointhis Regulation shall bedrawn upbythecompetent
authorities oftheMember States .These authorities may not include onthe
list approved distillers whoare unable toobtain ,bymeans ofthe
distillation operations referred toinTitle II,product
alcoholic strength ofatleast 92%vol .
Member States shall forward tothe Commission ,on31December 1983 at
the latest ,the list drawn upinaccordance with thefirst sub-paragraph
andshall notify theCommission ofanysubsequent amendments .The
Commission shall publish that list andanyamendments thereto inthe
Official Journal ofthe European Communities .
2.Thecompetent authority maywithdraw approval from adistiller ,either
temporarily orpermanently ,ifthelatter does notmeet hisobligation
under theCommunity rules .

-24-
Article 22
1.Wine which istoundergo oneofthedistillation operations referred toin
this Regulation may befortified fordistillation .Insuch cases ,the
product ofdistillation ofsuch fortified wine must beoneofthe
products specified atpoint (b)ofthefirst subparagraph ofArticle 3'(l ).
2.Wine shall befortified fordistillation only under official supervision .
For this purpose :
-thedocument(s )andr ;ister(s ).required under Article 53of
Regulation (EEC)No3 ;'~9shall show the ^increase inactual alcoholic
strength byvolume ,expressed in%volbyindicating thestrangth before and
after addition ofthedistillate tothewine ;
-asample ofthewine shall betaken under official supervision before
itisfortified inorder that theactual alcoholic strength byvolume
may bedetermined analytically byanofficial laboratory ora
laboratory working under official supervision :
-twocopies oftheanalysis report referred tointhesecond indent
shall besent totheprocessor fortifying thewine and theprocessor
shall transmit one ofthese copies totheintervention agency ofthe
Member State inwhich the wine isfortified .
3«Wine shall befortified fordistillation during the same period asthat
laid down inaccordance with Article 18for thedistillation operation in
question .Article 23shall apply ,subject toany necessary adjustments .
4.Wine fortified for distillation shall bedistilled inaccordance with
detailed rules tobelaid down .Such distillation shall take place within
aperiod set.
5«Member States may restrict thenumber oflocations atwhich wine may be
fortified fordistillation ,should this benecessary toensure that the
most suitable method ofsupervision can beused .

-25-
Article 23
1.When theoption mentioned inArticle 22(l )isexercised andwhere thewine
isnotfortified fordistillation bythedistilleror onhisbehalf ,the
producer shall submit tothecompetent intervention agency ,forapproval
before adate tobefixed ,awritten declaration tothe effect that the
wine has been delivered for fortification .
Wine may befortified fordistillation only byanoperator approved bythe
competent authorities oftheMember State onwhose territory theoperation
iscarried out .
2.Thedeclaration referred toinparagraph 1shall begoverned bythe
provisions ofArticle 4,subject tothenecessary adjustments .
3.Theprocessor fortifying thewine fordistillation shall pay theproducer ,
for thewine delivered ,atleast theprice referred to,asthe case may be,
inArticle ll(2 ),Article 12a(3 ),Article 15(5 ),Article 39(6 ),Article
40(3 )orArticle 41(2 )ofRegulation (EEC)No337/79;these prices shall
apply tobulk merchandise exproducer 'spremises .
Subject tothenecessary adjustments ,theprocessor fortifying thewine for
distillation shall besubject tothesame obligations asthedistiller
under Articles 4,5,9,13and 15«
The aid tobepaid totheprocessor fortifying wine forthe
various distillation operations shall befixed per%volofactual alcoholic
strength andper hectolitre ofwine before fortification ,onthebasis ofthe
minimum buying-in price forthedistillation operation inquestion ,
standard transport andprocessing costs and themarket price forthe
product ofdistillation .
A.Theaidshall bepaid bythecompetent intervention agency totheprocessor
fortifying wine fordistillation oncondition that heprovides asecurity
equal to120$ oftheaidtobereceived .
Where theprocessor fortifies wine forthedistillation operations governed
byvarious provisions ofRegulation (EEC)No337/79,asingle security
shall beprovided ;itshall beequal to120^ofalltheaidtobepaid to
theprocessor inrespect ofthesaid distillation operations .
Thesecurities referred tointhefirst and second subparagraphs shall be
provided inacc dance with thesecond subparagraph ofArticle 7(l).

_26_
Subject totheprovisions ofArticle 20,thesecurity shall hereleased
only if,within periods tobeset ,proof hasbeen furnished that the
fortified wine hasbeen distilled ;thesecurity shall bereleased in
proportion tothequantities inrespect ofwhich such proof hasbeen
furnished .
Article 24
1.The States shall take thenecessary measures toensure that the
provisions ofthis Regulation areapplied ,and inparticular measures
toprevent products delivered todistilleries from being diverted toother
uses .
The States may ,for this purpose ,require that anindicator beused ,
subject toconditions tobelaid down byimplementing rules or,failing
this ,bynational provisions . Member States may not ,ontheground of
thepresence ofanindicator ,prevent movement within their territory
ofproducts intended fordistillation orofdistilled products obtained
from the latter .
2.Member States which exercise theoption set out inthesecond paragraph
ofparagraph 1shall inform theCommission accordingly andshall notify the
Commission oftheprovisions which they have adopted forthis purpose .The
Commission shall inform the other Member States .
Article 25
Intheabsence ofanyprovisions tothecontrary ,anyperiods ,"dates ortime .Limits
referred tointhis Regulation orfixed pursuant thereto shall belaid down in
C8)accordance with Regulation (EEC ,Euratom )No1182 /71•
Article 26
Regulations (EEC )No343/79and (EEC )No349/79arehereby repealed .
Article 27
This Regulation shall enter into force on1September 1983 .
This Regulation shall bebinding initsentirety anddirectly applicable in
all Member States .
Done at
(8)OJNoL124,8.6.1971 ,p.1For the Counci I
The President