ARCHIVESHISTORIQUES
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DOCUMENTS "COM"
COM(80)436
Vol.1980/0153

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(80)436 final
Brussels,17thJuly1980
PROPOSAL FORACOUNCIL
LAYINGDOWNGENERALRULESFORTHEAPPLICATION
OFTHEMINIMUMPRICE-FORTABLE .WINE
I-I"! >
\
V>\ ASV\w ,.^/V-/ .V. V
(presentedbytheCommissiontotheCouncil)
C0M(80)436final

EXPLANATORY MEMORANDUM
On18February 1980 theCouncil added aprovision tothe "basic wine Regula­
tion whereby aminimum price may "befixed when themarket price fortable
wines falls below aoertain level ,together with enforcement measures ;the
provision also makes itpossible torestrict marketing ofthetype oftable
wine inquestion*The provision states that ,iftheCouncil decides tofix
aminimum price ,itshall atthesame time authorize distillation ofthe
wine inquestion atthesame minimum price level .
This provision which isapplicable until 30June 1984 ,when thestructural
measures forestablishing abalance onthemarket should have hadtheir
effect ;however ,general rules arenecessary foritsimplementation .
Theregulation nowproposed lays down therules fortheapplication ofthese
provisions ofArticle 15aofRegulation (EEC)NO337/79*Itprovides forthe
following s
-exemption from theobligation toobserve theminimum price forwines for
export andforwines oovered byacontract ofsale conoluded before the
minimum price wasfixed ,
-theobligation toregister delivery contracts forwine ofthetype for
which aminimum price hasbeen fixed during theperiod ofapplication of
this price ,
-thewithholding oftheaccompanying document forconsignments ofwine
where thecontract shows that they donotobserve theminimum prioe ,
-therules fordistillation andfixing EAGGP contributions towards inter­
vention agencies expenditure ontaking inthealcohol soobtained ,
-thecriteria forceasing toapply theminimum price andtherights and
obligations attaching toit. « '

PROPOSAL FOR A
COUNCIL REGULATION (EEC )
laying down general rules for theapplication of
the minimum price for table wine
THECOUNCIL OPTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ,
Having regard toCouncil Regulation (EEC)No337/79of5February 1979 on "the
common organization ofthemarket inwine"' ",aslastamended byRegulation
2
(EEC )No459/80 iand i-nparticular Article 15a (4)thereof ,
Whereas general rules should belaid down forapplication oftheminimum
price introduced byArticle 15aofRegulation (EEC)No337/79;
Whereas exports ofwine help toreduce market –surpluses oftable wine ;where­
as,soastoavoid hindering exports ,theminimum prioe obligation should
notbeapplied towines for export |
Whereas ,inproviding foradjustment oftheminimum price for certain regions
referred toinparagraph 1ofthesaid Article 15a ,i"tisessential totake
account oftheregions whioh arefurthest from themain consumer areas ;
whereas incalculating thi.tadjustment account mustbetaken ofthecost of
bringing wines from thefurthest regions tothe same marketing Btage as
wines from other regions :
./•
rojNoL54,5.3.1979 ,p.1
0JNoL57,29.2.1980 ,p.32

Whereas provision must bemade forchecks to ensure observance -ofthe
minimum price }whereas ,tothis end ,asystem should beintroduced for
registering contracts oonoluded when thewines arefirst placed onthemarket ;
Whereas theconclusion ofshort –term storage oontracts fortable wine during
theperiod when theminimum price isapplicable reduces pressure onthe
market }whereas that operation should accordingly beencouraged byproviding
that ,assoon astheminimum price ceases toapply ,holders ofsuch contracts
maywithdraw from them without losing their entitlement toaid;
Whereas theCouncil maydecide torestrict marketing ofthetype oftable
wine inquestion where itdoes notreach theminimum price }whereas it
should bemade clear what constitutes marketing andwhat marketing stage the
pricetobetaken into account relates to;whereas ,inorder toensure obser­
vance ofsuch arestriction ,itshould beprovided that accompanying docu­
ments maybeissued only inrespeot ofconsignments whioh observe theminimum
price }
Whereas therestriction onmarketing applies only toconsignments which are
traded after thedate when the Regulation fixing theminimum prioe enters
into force ;whereas ,inorder toprevent abuse itisessen­
tial toprovide that exemption from theobservance ofthis restriction should
besubject toprovision ofproof that thecontraot fortheconsignment in
question wasmade before thedate inquestion ;
I
Whereas itshould bestipulated that producers whointend todeliver wine
fordistillation asreferred toinArtiole 15aofRegulation (EEC)NO337/79
should conolude contracts with distillers and submit them forapproval to
theintervention agenoy ,sothat thedistillation operation andtheobser­
vance oftheobligations towhich thetwoparties aresubject maybe
checked ;whereas this will also enable aolearer picture tobeobtained
oftheeffect ofthedistillation operations onthequantity available onthe
market }whereas ,ifaproducer intends todistil hisownwine ortohave it
distilled forhim,thecontract maybereplaced byadeclaration permitting
equally effective checking ; '

Whereas ,,toenable intervention agencies toapprove contracts andtocheck
distillation operations thoparties concerned must place certain information
at .theintervention agencies'disposal ;
Whereas itshould "belaid down that theminimum price guaranteed tothe
producer should "bepaid tohimwithin time limits comparable tothose which
areusual incommercial •transactions ;
Whereas atolerance must beallowed for thequantity ofwine stated inthe
delivery contracts ;whereas experience suggests that this toleranoe should
befixed at10
Whereas therespective obligations of "thedistillers andthe intervention
agencies asregards thebuying-in oftheproduct obtained bydistillation
should also bedetermined ;
Whereas ,having regard tothe fixedpricepayable totheproducer bythedisti Iler,
provision must bemade toensure that intervention agencies purchase thevinous
alcohot resulting from distillation ataprice which takes account ofthe
cost ofprocessing thetable wine inquestion ;
Whereas ,intheabsence ofanorganization ofthemarket inethyl alcohol at
Community level ,theintervention agencies responsible formarketing the
vinous alcohol maybeobliged todispose ofitataprice lower than the
buying-in prioe ;whereas provision should bemade ,inthese circumstances ,
forth9d.""lerence between thebuying-in price andthe selling price ofthe
subi ect
said alcohol tobecovered , .toamaximum figure ,bytheGuarantee Section
oftheEuropean Agricultural Guidance andGuarantee Fund ,thecontribution
bytheFund ,however ,nottoexceed the said difference ;
Whereas before application oftheminimum price canbeterminated therepre­
sentative price needs tohave risen high enough toeliminate anyserious
difficulty onthemarket ;whereas ,soastoensure that theincrease inthe
representative price isnotatemporary phenomenon ,:asufficiently long
reference period ehpuld beprovided for ;

-4-
HASADOPTED THIS REGULATION S
Article 1
;'
1.Theminimum price fortable wine ofagiven type *asfixed bytheCouncil
pursuant toArticle 15aofRegulation (EEC)NO337/79»nrustbeobserved
forallwines ofthat type ,with theexception ofthose intended for
export .
2.Thesaid minimum price shall "bereduced by0.22 ECUper%vol per
hectolitre forwines produced inzone CIII ,with theexception ofthe
part ofthat zone lying within continental France ..
Artiole 2
«
1.With effeot from thedate ofentry into force oftheminimum price for
table wines ofagiven type ,allcontracts fordelivery ofwine ofthat
type ,orofawine inolose economic relationship with that type ,made
between aproducer orproduoers'assooiation andapurchaser other than a
retailer oraprivate oonsumer shall beregistered bytheagencies desig­
nated forthis purpose jbyeach producer Member State .Forthis purpose ,
producers shall submit acopy ofthecontract totheagency .
During theperiod forwhich theminimum price applies ,noaccompanying
document maybeissued fortheconsignment inquestion unti Itheexpiry
ofseven days from ■submission ofthecontract andthen only ifthe
agency hasnot ,within that period ,prohibited itpursuant tothefollo­
wing subparagraph . -
Whereas therestriction onmarketing referred toinArtiole 3applies ,if
study ofthecontract reveals that theminimum price has notbeen complied
with ,thedocument relating tothecontract inquestion shall notbeissued .
2.Short-term storage contracts concluded after theminimum price hascome _
into effect ,shall ,onapplication bytheparty ooncerned ,beterminated
with effect from thetime when thesaid prioe oeases toapply .
entitlement
Inthis case ,the toaidforshort-term storage shall subsist in
respeot oftheperiod during which thewine wassubject tosuoh aoontract .
./•

Article 3
Ifthe Council decides torestrict marketing under the first
subparagraph ofArticle 15a(l )ofRegulation (EEC )NO337/79*theproducer
may not .during theperiod within which theminimum price applies fortable
sell .
wine ofagiven type ,putupforsale ,1deliver ormarket inanywaytable
wine ofthesaid type ataprioe lower than theminimum price inforoe .
Theprice to "betaken ,forthepurposes ofcheoking compliance with this
provision ,shall bethat for bulk goods ,ex-producer 'sestablishment .
However ,theprovisions ofthe foregoing paragraphs shall notapply todelive­
ries ofconsignments inrespeot ofwhich proof isfurnished that thecontract
ofsale was concluded before theentry into force ofthe Regulation fixing
theminimum price .
Article 4
Only producers oftable wines ofthetype forwhich aminimum price isfixed
, x-x.x, tobenefit undershall beeligible ,inrespeot ofthe said wines , .distillation provi­
sions decided upon pursuant toArticle 15aofRegulation (EEC)NO337/79*
Article 5
Forthepurp sesofthis Régulation s
-white tsM -wines with anactual alcoholio strength notexceeding 15%vol
andwhich are not oftype AIIortype AIII shall beconsidered asbeing
inclose economic relationship with table wines oftype AI;
-redtable wines with anactual alcoholic strength notexceeding 12.5 $V°1
andwhich arenot oftype RIII shall beconsidered asbeing inolose
economic relationship with table wines oftype RI;
-redtable wines with anactual alcoholic strength exceeding 12„5%volbut
notexceeding 15$volandwhich arenotoftype RIIIshall bsconsidered
asbeing inclose economic relationship with table wines oftype RII.

Article 6
1.Aproducer whointends todeliver wine from hisownproduction for
distillation asreferred toinArticle Ashall conclude 3
delivery contract ,hereinafter referred toasa"contract ",with anappro­
veddistiller andshall submit itforapproval ,before adate tobefixed ,
tothecompetent intervention agency .
2.Thecontract shall include theparticulars necessary toidentify the
wine tobedistilled andshall state therespective obligations ofthe
parties tothecontract .
-1 ' » •
3,Thecontraot shall bevalid only ifitisapproved bythe competent inter­
vention agenoy before adate tobefixed .
»
Iftheproducer ^winery isinadifferent Member State from thedistiller 's
plant |acopy ofthecontract approved bythecompetent intervention agency .
shall besent totheintervention agency oftheMember State onwhose terri -
.tory distillation istobecarried out .
i
4*Iftheoontraot iscancelled ,theparties tothecontract shall without
!
delay soinform theintervention agenoy which approved the oontract .
I ■ _ -
Artide 7
1.Aproducer who
–possesses adistillation plant andisanapproved distiller andintends
toundertake thedistillation referred toinArticle 4inrespect ofall
orpart ofthewine from hisownproduction ,or
-intends tohave distillation oarried outonhisbehalf inanapproved
distiller 'splant .
m
shall submit adeclaration ofdelivery fordistillation ,hereinafter refei >-
redtoasa"declaration ",totheintervention agency oftheMember State
onwhose territory hiswinery issituated .Thedeclaration shall include
theparticulars necessary foridentifying thewine tobedistilled .Ifthe
distillation plant issituated inanother Member State ,theproduoer shall
send acopy ofthedeclaration totheintervention agency ofthat Member
State forinformation purposes . /

2.Prod -cars whohave submitted adeclaration Bhall beobliged todistil
thswins covered "bythedeclaration ,ortohave itdistilled .
3,For thepurposes ofthis Regulation ,theoontract referred toinArticle
5(l)shall bereplaoed :
-inthecircumstanoes referred tointhefirst indent ofparagraph 1,by
thedeclaration ,
-inthecircumstances referred tointhe seoond indent ofparagraph 1,
\
"bythedeclaration together with acontract ofdelivery fordistillation
concluded between theproducer andthedistiller .
Article 8
Thecharacteristics ofthewine covered "bythe contract ,andmparticular
thequantity andalcoholio strength byvolume 'thereof ,shall bechecked .
Additional checks maybeprescribed forthewine covered bythedeclara­
tion referred toinArticle 7•
Article 9
1®Thedistiller shall pay theproducer notless than thepurchase prioe
fixed bytheCouncil forthewine delivered }thesaid price shall relate
to bulk goods ,ex–produoer 'sestablishment .
2.Thedistiller shall paytheagreed purchase price totheproducer for
eaoh delivery ofwine,within thirty days from entry ofthewine into
hisdistillery orstorage premises .
Artide 10
Thequantity ofwine actually supplied tothedistillery mayvary bynotmore
than 10%from thequantity indicated inthecontracts referred toinArti­
cles 6and 7orinthe declaration referred toinArtiole 7*

Artide 11
Thedistiller shall ,within seven days ,communicate thefollowing tothe
oompetent intervention agency :
(a)thedate "bywhioh allthewine stipulated inthecontract entered
hisdistillery orstorage premises ,bysubmitting :
–where allthewine wascovered byasingle delivery ,acopy oftheaccompanying
document provided for inArticle-53 ofRegulation (EEC)No337/79,
_where delivery wasbyinstalments , anaocount stating ,inrespect
ofeach delivery ,theoonsignor ,thequantity ofwine ,thecolour
ofthewine ,theaotual alooholio strength "byvolume andthenumber
oftheaccompanying document provided forinArticle 53ofRegulation
(EEC)No337/79.
»
(b)thedate onwhich distillation ofthewine referred toin(a)wascompleted ,
stating thequantity andactual alcoholio strength "byvolume oftheproduct so
obtained *
Furthermore ,thedistiller shall provide thecompetent intervention agency
with proof ofthepayment referred toinArticle 8(2).
The distiller shall s . .
-process thewine which hasentered thedistillery into neutral vinous alco­
holwith analcoholic strength ofatleast 96$vol ,
-deliver thealcohol soobtained tothecompetent intervention agency . ■
Theintervention agenoy shall bebound tobuy-in thesaid alcohol ,subjeot
tothevariations referred toinArtiole 10.
Article 12
Theprice payable bythecompetent intervention agency tothedistiller for
buying _in-thealcohol obtained bythedistillation referred toinArtiole 4
shall befixed ,atthesame time astheminimum price ,bytheGounoil ,acting
byaqualified majority onaproposal from theCommission .
Itshall befixed perhectolitre andper%volofpure alcohol ,taking acoount
oftheprice payable totheproducer ,asreferred toinArticle 8,offlat-rate
transport andprocessing costs andoflosses during manufacture .
Itshall apply tobulk ,goods ,free attheoompetent intervention agency 's
storage premises , /

Article 13
1.Themaximum amount ofthe contribution from theGuarantee Section ofthe
EAGGF towards theexpenditure incurred bytheintervention agenoies in .
respect ofdisti llation asprovided forinArticle 6shall befixed atthe
same time astheminimum price .This amount shall "befixed perhectolitre
per iovolofpure alcohol .
\
\
2.Thecontribution from theGuarantee Section oftheEAGGP shall bepaid t
subject tothe maximum amount referred toinparagraph 1,only where ,during
agiven "budgetary year ,theoverall expenditure ofanintervention agency
onbuying-in theproduots obtained bythedistillation provided forin
this Regulation exceeds theproceeds ofsale ofthesaid products onthe
market .
Theintervention agencies' accounts must clearly distinguish between the
quantities andpricesofproducts bought-in andsold under thedistillation
provided forbythis Regulation andanyproducts taken inunder other
distillation operations .
Ifthedifference referred tointhefirst subparagraph isless' than the
maximum amount multiplied bythenumber ofhectolitres oftheproduct sold ,
expressed aspure alcohol ,thecontribution shall beequal tothat difference .
3«Articles 4axid -5ofRegulation (EEC)NO729/70Bhall apply totheEAGGP
contribution referred tointhis Article .
Article 14
\
Theminimum prioe ,.theobligation toobserve theminimum price andtheright
ofproducers toconclude bhedelivery contracts referred toinArticle 5shall
beterminated when therepresentative price fortable wine ofthetype in
question exceeds $0$oftheguide prioe forthree consecutive weeks .
Thedecision toterminate fehall betaken bytheCommission .

-10-
Arxicle15
ThisRegulationshallenterintoforceonthedayofitspublicationinthe
OfficialJournaloftheEuropeanCommunities .
ι
i
ThisRegulationshallhe"bindinginitsentiretyanddirectlyapplicablein
allMemberStates.
DoneatBrussels, FortheCounoil
ThePresident