ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(82)107
Vol.1982/0038

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(82)107 final
Brussels-10March1982
/^.v1*tov\yA^/o■–11v-A
f-lrjOg-r~'ypoj\||!IR!>M
V\Ci AO/
Proposalfora
COUNCILREGULATION (EEC)
layingdowngeneralrulesonthedistillation oftablewinesasprovided
forinArticle15ofRegulation (EEC)No337/79
(submittedtotheCouncilbytheCommission )
C0M(82)107final

EXPLANATORY MEMORANDUM
Aftertwoyearsofavailability ofexceptional quantities ofwineasa
resultofarecordharvestfollowedbyaverylargeone,theoutlookfor
equilibrium ontheCommunity marketwasapparently morereassuring when
the1981/82wineyearopened.Anexamination ofthetrendofproduction
inthetwomainwine-producing countries andofpricesatthevariousmarket­
inglocations shows,however,thattheequilibrium thatwasexpectedat
thebeginningofthemarketingyearcannotbeattainedbythenormal
management measuresalone.Thelasttwoharvestshaveengendered avery
seriousimbalancebetweenavailablesuppliesinItalyandthoseinFrance.
In1980,Frenchproduction at69millionhiwasaverage,whereasthe84
millionhiproducedinItalywasnotfarfromtherecord.In1981,French
production,at57millionhi,wasverylowwhiletheItalianharvestof
70millionhiwasofaveragesize.InItalypriceshavedroppedsharply,
particularly inanumberofmarketinglocations wherewinenotentering
intointernational tradeissold,whereasinFrancepriceshaveremained
fairlysatisfactory .Thusactiontorelievethemarket(particularly last
year'sexceptionaldistillation anddistillation underspecialprice-
1supportguaranteearrangements )hardlyoperatedatallinFrance,where
marketpricesmatchedorexceededtheintervention prices.Atthesame
time,inItalythevolumewithdrawnfromthemarketwaslimitedbythe
restriction imposedbytheCommunityregulations onthequantityofeach
producer'swinethatcanbedistilled .ThelackofinterestinFranceand
thelimitation imposedbytheregulations inItalymeantthatthe
quantitative resultsanticipated couldnotbeattained.
Thusthedistillation underspecialprice-support guaranteearrangements ,
whichshouldintheoryaccountfor12millionhiofwine,willinpractice
onlyaccountforroughly5millionhi,asFrenchproducerswillbesending
verylittleoftheirwinefordistillation .
1)'Garantie debonnefin"

-2-
Theapparentoverallbalancehowevermasksdifferingpicturesfordifferent
typesofwine.Therelatively modestproductionofwhitetablewineand
increasedconsumerdemandforithasresultedinpricesconsideredsatis­
factorybytheproducers.Forredwine,however,thequantitiesavailable
areverymuchinexcessofdemandandaveragepricesinItalyhavenever
exceeded70%oftheguidepriceappliedsince16December1981.Thislevel
isquiteinadequateandthereisariskofserioustensionarising.The
Commissionfeelsthatthepresentunbalancedmarketsituationjustifies,
forredtablewine,useoftheexceptionaldistillation measuresprovided
forinArticle15ofRegulation (EEC)No337/79.Asformethodstobeused,
theCommissionconsidersthatatthepresenttimealimitation ofthevolume
distilledbyfixingamaximumpercentageofeachproducer'sharvest,the
methodusedforthelastexceptionaldistillation,isunlikelytorelieve
themarketatpointswherereliefismostneeded.Thecommissionproposes
thereforethatthevolumetobedistilledshouldbelimitedbyfixinga
relativelyshortperiod,adjustedtothepurposeinview,forthesigning
ofcontractsandbyprovidingthatthe'quantitiesspecifiedincontracts
maybereducedifnecessary.
Thequantityofredtablewinethatwillhavetobedistilledifadurable
rationalization ofthemarketistobeobtainedisabout7millionhi.The
pricethattheCommissionproposesisthatadoptedforthedistillation
underspecialprice-support guaranteearrangements agreedinSeptember1981,
i.e.83%oftheguideprice.
Giventhesituationonthemarketindistillates,amixedsystemisproposed
forthedistilledproducts.Fordistillates of85%alcoholbyvolumeorless,
whichitwillbepossibleforthedistillerstodisposeofdirectly,a
marketingaidwillbegiven.Distillates withanalcoholcontentof86%by
volumeormorewillbeshippedtotheintervention agencies,whichwillbe
reimbursed bytheEAGGFGuaranteeSection.

Proposalfora
COUNCILREGULATION (EEC)
layingdowngeneralrulesonthedistillationoftablewinesasprovidedforin
ArticleISofRegulation (EEC)No337/79
IMFCOUNCILOFTHFF.UKOI'EAN
COMMUNI'l lES.
HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity ,
HavingregardtoCouncilRegulation(EEC)No
337/79of5February1979onthecommonorganiza­
tionofthemarketinwine('),aslastamendedby
Regulation(EEC)No,5577/8l(2).andinparticular
Article15(I)thereof,
HavingregardlotheproposalfromtheCommission ,
WhereasArticle15ofRegulation (EEC)No337/79
providesthatprovisionsconcerningthedistillationoi
tablewinesmaybeadoptedwhereapplicationofthe
marketsupportmeasuresprovidedforinthatRegula­
tionisunlikelytobeeffectiveinrestoringprice
levels:
Whereasthisisthecaseatpresentinr«spectofredtablewines
inviewofthefactthat,despitealowharvestinthecurrentyear,
thestocksfrompreviousyearshavecreatedsupplieswhichconsiderably
exceedthenormalrequirements forthepresentyear;whereas,moreover,
thesupportmeasuresalreadytakenhavenotsucceededinrestoring
reasonablepricelevelsorreducingthesurplusbyasufficientamounts
(1)OJNoL5^,5.3.1979,p.1
(2)OJNoL359,15.12.1981,p.'

-2-
Whereastheconditionsunderwhichthesedistillation
operationsmaytakeplaceshouldbelaiddowrt;
whereas,inparticular,thepriceofthewinesgoingfor
distillationshouldnotbesuchastoencouragethe
productionof.wineprincipallyfordistillation,
althoughitshouldbesufficientlyattractiveforthe
operationtobeeffective;
WhereasArticle67ofthe1979ActofAccession
providesthatinfixingthelevelofthevarious
amountslaiddownwillimthecommonagricultural
policy,accountshallbetaken,lorGreece,oftheacces­
sioncompensatory amount,totheextentnecessaryfor
theproperfunctioningofthecommonagricultural
policy;whereasthepresentsituationonthemarket
forredtablewinesissuchthataminimumbuying-in
price,lesstheaccessioncompensatoryamount,should
notbefixedfordistillationoperationscarriedoutin
Greece;whereasanyriskofdeflectionoftradeseems
ruledoutbythefactthatthedistillationcapacityin
Greeceislimitedandthatnowineissenttothat
countryfordistillation ;
Whereasacompleterationalization ofthemarketmustbebrought
about while ensuring that the quantity needed toachieve this isnot
exceeded :
Whereas,inorder,toensureappropriatesupervisionof
distillationoperations,distillersshouldbesubjecttoa
systemofapproval;
Whereasprovisionshouldbemadeforproducersto
concludedeliverycontrailswithdistillerssubjectto
approvalbytheinterventionagency,inordertofacili­
tatemonitoringofthepioguvstilopet.ituinsandof
theobservanceoftheobligationsofbothparties;
whereasthissystemwouldhavetheaddedadvantage
ofmakingiteasiertomonitorthequantitativeeffects
ofdistillationonthemarketand,wherenecessary,to
limitthevolumeofwineswhichmaybedistilled;

-i-
Whereas,however,thecontractssystemmustbe
adaptedinordertotakeintoaccountthefactthat
thereareproducerswhointendtohavetheirwine
distilledontheirbehalfandproducerswhothem­
selvespossessdistillationplants;whereas,inthe
caseofthelatterproducers,theabsenceofacontrac­
tualobligationnecessitates anofficialanalysisof
certaincharacteristics ofthewinetobedistilled;
Whereasprovisionshouldbemadefortheminimum
priceguaranteedtotheproducertobepaidtohim.
withinaperiodcomparable tothatnormally
applicableincommercial sales;
Whereasthepriceof wineintendedfordistillation isnot
suchastoenabletheproductsobtainedfromthis
operationtobemarketednormally;whereasdirectmarketing bydistillers
ispossibleinthecaseofdistilled wineof85%volorlessbutnotinthatof
aproductof86%volormore;whereas,therefore,inthecaseofwineintendedfor
processingintotheinitialproduct,anaidshouldbefixedtoenableittobemarketed
and provision should bemade for the distilled wine ,once ithas been
processedintoaproductof86%volormore,tobedeliveredtoan
intervention agency and for fixing the price atwhich itistobe
accepted ;whereasthis operation should befinanced bytheEuropean
Agricultural Guidance and Guarantee Fund ;
Whereasprovisionshouldbemadeforproducerswho
haveconcluded adeliverycontracttoterminateit
wherethemarketsituationwouldenablethemto
disposeofthewinemoreprofitably ;•
Whereas,onthebasisofexperiencegained,acertain
marginshouldbeallowedforthequantityofwine
specifiedinthedeliverycontracts;whereas,moreover,
provisionshouldbemade,intheeventofchance
circumstiiiH e«.orfontiini/tim,foraidtobepaidin
respectof(Jicqiunhtyofwinewhichhasactually
beendistilled :

-k-
Wluie.is,inonlcrtoallowthedistillationmeasureto
achieveitsfullpurposeandinordertotakeaccount
oftherealityofthemarketofwinesintendedfordistil­
lation,itappearsappropriatetoallowthesewinesto
beprocessedintowinefortifiedfordistillationboth
bydistillersandbymanufacturers ;
Whereasthein.inutaitureofwinefortifiedfordistilla­
tionmusttakeplaceinthevicinityoftheplacewhere
thetablewineisheld,inordertolimittransportcosts
todistilleriesalongdistanceaway;whereasauthoriza­
tionofthemanufacture ofwinefortifiedfordistilla­
tioninaMemberStateotherthanthatinwhichthe
producer'swineryislocatedisnotjustifiedeconomi­
callyandislikelytocreateseriousmonitoring
problems;whereasitseemsappropriate ,therefore,to
stipulatethatthemanufacture ofwinefortifiedfor
distillationmaytakeplaceonlyinthecountrywhere
thetablewinehasbeenproduced;whereasitis
furtherappropriatethatMemberStatesshouldbeable
torestricttheplacesatwhichwinefortifiedfordistilla­
tionmaybeprocessedinordertoensurethemost
appropriatelormofsupervision ;
Whereas,ineachMemberStateconcerned,abody
shouldbemaderesponsibleforimplementing the
provisionsinquestion;
Whereastheadditionofanindicatortothewinetobe
distilledisanefficientmonitoringmethod;whereasit
shouldbestatedthatthepresence *ofsuchanindi­
catormustnotpreventthemovementofthesewines
oroftheproductsobtainedtherefrom.
I

-5-
HAS ADOPTED THIS REGULATION :
Article 1
1.Producers wishing todistil red table wines produced bythem ,
pursuant toArticle 15ofRegulation (EEC )No337/79ishall
conclude contracts for the delivery oftable wines ,hereinafter
referred toas"contracts ",with anapproved distiller and shall
submit them toanintervention agency by31March 1982 atthe Latest .
2.Member States shall inform the Commission each day ofthe
quantities oftable wine covered bythe contracts presented on
the previous day tointervention agencies .
3.Ifthe information referred toinparagraph 2shows that the
contracts submitted tointervention agencies account for a
quantity ofLess than 7miLLion hectoLitres bythedate referred
toinparagraph 1,the Commission may decide toextend the deadline
under theprocedure provided forinArticle 67ofRegulation (EEC )
No337/79.
k.Iftheinformation referred toinparagraph 2shows that ,before
the final date for submission ofcontracts tointervention agencies ,
the contracts submitted account for aquantity greater than 7
million hectolitres ,the Commission shall decide toterminate the
submission ofcontracts .
5«Where the total quantity oftable wines covered bythecontracts
submitted tothe intervention agencies exceeds 7million
hectolitres ,the Commission may decide under the procedure provided
forinArticle 67ofRegulation (EEC )No337/79that distillation
shall beconfined tothat quantity .Inthat case ,the quantity
covered byeach contract shall bereduced proportionately .
6.For thepurposes ofthis Regulation ,each producer maysend not
less than 50hectolitres oftable wine for distillation .

-6-
Artnie2
I-Deliverycontr.titsshallnotbevalidunder
thisHerniationunlessapproved.before16April1982
bytheinterventionngenrvoftheMemberStatein
whichthewineISheldwhenthecontractis
concluded .Thesecontractsshallinclude:
(a)theobligationforthedistillertopurchasethe
quantityoftablewineenteredinthecontract.
(b)–cithertheobligation (orthedistillertoprocess
thewineintoaproductwithanalcoholic
strengthbyvolumeof8f%ormore,
–ortheobligationforbinitoprocessthewine
intoaproductwithanalcoholicstrengthby
volumeof85%orless.
2.WheredistillationtakesplaceinaMemberState
otherthanthatinwhichthecontractisapproved,the
interventionagencywhichapprovedthecontractshall
forwardacopyofittotheinterventionagencyofthe
firstMemberState.
Artide3
1.Producers :
–whothemselvespossessdistillationplantsand
whointendtocarryoutthedistillationreferredto
inArticleI,or
–whointendtohavetheirwinedistilledontheir
behalfinanapproveddistiller'splant.
Shallsoinform,before3-]March1982,.theintervention
agencyoftheMemberStateinwhoseterritorytheir
wineryislocatedbymeansofadeclarationofdelivery
fordistillation,hereinaftercalled'declaration' .Ifthe
distillingplantislocatedinanotherMemberState,
theyshallalsoinformtheinterventionagencyofthat
MemberStatebymeansofacopyofthedeclaration .
2.ForthepurposesofthisRegulation,thecontract
referredtoinArticleI(1)shallbereplaced:
–inthecasespecifiedinthefirstindentofpara­
graphI,bythedeclaration,
–inthecasespecifiedinthesecondindentofpara­
graph1,bythedeclarationaccompanied bya
contractfordeliveryfordistillationoilthe
producer'sbehalfconcludedbetweentheproducer
andthedistiller.
3.Thedeclarationreferredtoinparagraph1shall
noibevaUciunderchu»Régulationunlcssapproved
In-fore16AprilJ982bytheintervention agencyofthe
MemberStateonwhoseterritorytheproducer's
wineryislocated.

-7-
Thisdeclarationshallcomprise :
–eithertheobligationforthedistillertoprocessthe
wineintoaproductwithanalcoholicstrengthby
volumeofX6%ormore,
–ortheobligationforthedistillertoprocessthe
wineintoaproductwithanalcoholicstrengthby
volumeof85%orless.
4.Inthecasereferredtointhefirstindentofpara­
graphI,asampleofthewinetobedistilledshalllie
t.iken,underthesupervisionofanofficialbodyofthe
MemberStateonwhoseterritorytheproducer's
wineryissituated,foranalysis,byanofficiallabora­
tory,ofitsactualalcoholicstrengthbyvolume,total
acidity,volatileacidityandsulphurdioxidecontent.
Theproducershallforwardtheresultsofthis,analysis,
certifiedbyanofficialbody,totheintervention
agencyoftheMemberStatewherethedistillation
tookplace.
VArepresentative ofanofficialbodyshallcheck
ihetjuantityofwinedistilledandthedateofdistilla­
tion.
6.Producerswhohavelodgedadeclarationshallbe
obligedtodistil,ortoarrangeforthedistillationof^
thewinecoveredbythatdeclaration .
Artide4
1.Theminimumbuying-inpricefortablewines
fordistillationshallbefixedat2.^+5ECUper
hectolitre per%vol .
Thesewinesmusthaveanactualalcoholicstrengthby
volumeofmorethan9-5%.
2.Thepricesreferredtoinparagraph 1shallapply
tobulkmerchandiseexproducer'spremises.

-8-
Article 5
1.The intervention agency ofthe Member State inwhich the
distillation hastaken place shall pay anaid forthewine distilled
where it hasbeen processed into aproduct with analcoholic
strength of85%vol orless .
2.The aid ishereby fixed at1.80 ECUperhectolitre per%vol .
3.Distillation products with analcoholic strength of86%vol or
more shall bedelivered bythe distiller toanintervention agency .
k.When making adelivery asreferred toinparagraph 5,thedistiller
shall furnish proof that hehas paid the producer ,asaminimum ,
the price referred toinArticle within thirty days atthe latest
following entry into thedistillery ofthetotal quantity ofwine
covered bythe contract .
5.Theintervention agency isobliged topurchase theproducts offered toit
bythe distiller .
Inthecase ofproducts with analcoholic strength of36%vol or
more and meeting theanalysis requirements laid down bytheMember
State concerned ,the price paid bythe intervention agency shall
be2.90 ECU per hectolitre per vol .
Inthe case ofproducts with analcoholic strength ofless than 96% vol
butnotless than &b%vol ,theprice referred toinsubparagraph 2
shall bereduced by0.17 ECUperhectolitre per%vol .
These prices shall apply tobulk merchandise free atthestorage
facility ofthe intervention agency .

-9-
6.Financing bytheEuropean Agricultural Guidance andGuarantee Fund ,
Guarantee Section ,ofintervention agencies' costs arising from products
accepted ishereby fixed at2.15 ECUper hectolitre per %vol .
7.Regulation (EEC)No729/70shall apply totheEAGGF financing referred
toinparagraph 6.
Article 6
1.When the purpose ofdistillation istoobtain aproduct ofan
alcoholic strength of85$vol orless ,payment oftheminimum
buying-in price referred toinArticle kand oftheaidreferred to
inArticle 5shall begoverned bythis Article .
2. When thetotal quantity ofwine covered bythecontract
entersthedistillery,thedistillershallpaythe
produceratleastthedifferencebetweentheminimum
liuying-inpricereferredtoinArticle4andtheaid
referredtoinArtuleS.
3.Byway ofderogation from paragraph 2,the distiller shall pay to
theproducer theminimum buying-in price referred toinArticle k
when the total quantity ofwine covered bythe contract enters the
distillery incases where distillation takes nlace inaMember State
other than that ofthe intervention agency which approved the
contract orwhere aclause tothis effect has been incJuded inthe
delivery contract .
Whenproofissuppliedthatthetotalquantityof
wineappearinginthecontracthasbeendistilled,the
interventionagencyshallpaytotheproduceror,in<■
tlucasereferredtoinpaiagiaph .3,tothedistiller,the
amountreferredtoinArticle5(2).
Wheretheamountispaidtothedistiller,theUtter
shallsupplyproofthathehaspaidtotheproducer
theminimumbuying-inpricereferredtoinArticle4.

-10-
9-Ihoproduceror,inthecasereferiedtoinpara­
graph3,thedistiller,ni.iyasklortheamountof;ud
referredtoinAM.titS(2)tobepaidtohmiin
advanceonconditionthathehaslodgedasecurity
equaltollU",'.oftheamountinthenameofthe
interventionagency.Ihissecurityshallbegivenin
theformofaguaranteebyanestablishmentmeeting
the*criterialaiddownbytheMemberStatetowhich
theinterventionagencyisresponsible .
Theadvancepaymenttotheproducermaynotbe
madeuntilaltertbedateottheapprovalprovidedfor
inAnnie2(I)orArticleI(I).
Theadvancepaymenttothedistillermaynotbe
madeunlessproofissuppliedthatthewholeofthe
minimumpricehasbeenpaidtotheproduceratthe
latestM)daysfollowingthedateonwhichthetotal
quantityofwineappearinginthecontractenteredthe
distillery.
SubjecttoArticle1JLthesecurityprovidedforinthe
firstsubparagraphshallnotbereleasedunless,within
aspecifiedperiod,evidenceisprovidedthatthetotal
quantityofwineappearinginthecontracthasbeen
distilled .
Whenthesecurityisreleased,theinterventionagency
shallmaketheadjustmentsrequiredtotakeaccount
ofthemarginsprovidedforinArticle 11.
Article 7
Bywayofderogation from Article 6,Member States maymake provision
fortheminimum buying-in price referred toinArticle ^tobepaid
totheproducer bytheintervention agency inasingle instalment and
within aprescribed period after distillation ofthe total quantity
ofwine covered bythe contract .
Insuch cases
-the distiller shall owe tothe intervention agency the difference
between theminimum buying-in price referred toinArticle and the
aid referred toinArticle 5|
-theproducer mayask fortheminimum buying-in price referred toin
Article ^tobeadvanced tohim inaccordance with the terms of
Article 6(b)*
Articleo
1.When thepurpose ofdistillation istoobtain aproduct ofan
alcoholic strength of86%volormore ,payment oftheminimum
buying-in price referred toinArticle andpayment fortheproducts
delivered tointervention agencies shall begoverned bythis Article .

-11-
2.Theminimum buying-in price referredtoinArticle kshall bepaid
bythedistillertotheproducer within thirty days atthelatest
followingthedateofentryintothedistillery ofthetotalquantity
ofwine covered bythe contract .
3.Thebuying-in price fortheproducts referred toinArticle 5(3 )«
ondelivery bythedistiller totheintervention agfency ,shall be
paid bytheintervention agency tothedistiller within sixty days
atthe latest following delivery ofthemerchandise ,provided that
proof isfurnished that theminimum buying-in price hasbeen paid
totheproducer within theperiod referred toinparagraph ?..
Artuh9
Distillationoperation *,maynottakeplaceafter
31August 1982 .
Ärtiile10»
Shouldtlu-averageprice*,tornotlessthanSO%of
thequantitiesquotedotatypeoftablewine,exceed
90%ottheactivatingpricelorthattypeofwine,it
maybedecidedthatdeliverycontractsforwinesof
thistypem.iybeterminatedwhollyorinpartatthe
requestoftheproducer .
Terminationofthecontractshallbepermittedonlyin
caseswheretheamountspaidbytheintervention
agencyarerefunded.
Artiih11
Amarginof10%moreorlessthanthequantityof
wineindicatedinthecontractsreferredtoinArticleI,
subjecttothe amount
providedforinArticleI(6).shallbepermittedforthe
quantityofwineactuallydeliveredtothedistillery .
'1heinterventionagencyshallpaytheaidprovidedfor
inArticle5forthequantityotwinewhichhas
actuallybeendistilled,withinthemarginreferredto
inthefirstsubparagraph .

-12-
Attiiic12
Where,owingtochanceciriumstainesorfinu
.illorsomeottin-wmecoveted1>v.iconli.Kt
referredto111ArticleIcannotIn-distilled,(In-distiller
or(Ik-proilin.trshallimmediately somlurni:
–thrintervention <i;>riuyottheMemberStatein
whoseterritorytin-distillationplantisloiated,and
–ifthepioduccr'swinervislocatedinanother
MemberState,theinterventionagencyotthat
MemberState.
Inthecasesreferredtointhefirstparagraph,theinter­
ventionagencyshallpaytheaidreferredtoinArticle
5inrespectotthatquantityofwinewhichhasactu­
allybeendistilled
A,lnl,13
Ihcwineintendedtordr>hi).ilJOii<«sprovidedforhi
AifuleI(I)m.iyheprocessedintoounitortihedtor
ciisfill.ifK)iibythedislilk'ioiby.inapprovedmanufai *
tiucrotherthantheproducer .
Iftheoperationistarriedourbyamanufacturer ,Articles
1,2,4,5,6,9,10.11and12shallapplysubjectto
theprovisionsofthefo'lowingArticles.
A,li,h1H
IInthecasejctcrredtointhesecondsubpara­
graphotArticle13»thecontractsprovidedtorin
Article Ishallbeconcludedbetweenaproduceranda
manufacturer .
2.Thesecontractsshallinvolvethemanufacturer
intheobligation :
(a)topurchasethequantityotwineappearingtherein
andtoprocessallotitintowinefortifiedfordistil­
lation;
(b)todeliverthewinefortifiedfor(.listillationtoall
approveddistiller;
(c)topaytotheproducernotlessthanthepricespeci­
fiedinArticle4.
Artille15
I.Inthecasereferredtointhesecondj>uhpara-
graphofArticleIj^winefortifiedfordistillationmay
beproducedonlyintheterritoryoftheMember State-
wheretheproducer'swineryislocatedandwithina
specifiedperiodoftime.

-13-
2.Themanufacture ofwinefortifiedfordistillation ,
asrelerrc.ltoinparagraphI.shallbesubjectto
officialsupervision .Forthispurpose:
–thedocuments )andtlu-registers)providedforin
Article55ofRegulation(IiLC)No.1.17/79shall
statetheincreasemactualalcoholicstrengthby
volume,expressedas%vol,givingthestrength
beforearidaftertheadditionofthedistillatetothe
wine;
–beforethewineisprocessedintowinefortifiedfor
instillation ,asampleshallbetakenunderthe
supervisionofanofficialbodyforanalysisbyan
officialIil"oratory,orbyalaboratoryoperating
ujidc'iofficialsupervision ,oftheactualalcoholic
:r<_-ribyvolume.Twocopiesoftheresultsof
i!u..iri.i!vsisnIi.i!!beseattothemanufacturer of
thewinetornlicdfe<rdistillation ,whoshall
foi'A'.irdonecopytotheinterventionagencyofthe
MiinberStalewherethewinefortifiedfordistilla­
tionwasproduced
VMemberStatesmayrestricttheplacesatwhich
winefortifiedfordistillationmaybeprocessedtothe
extentthatsuchrestrictionisnecessarytoensurethe
mostappropriateformofsupervision .
ΑιΙα/ι-ι6
Inthecaserefericdtointhesecondsubparagraph ol
Altaic13»thcpinespecifiedinArticle4shallbe
p.iidbythemanulactuier whenthetotalquantityol
wineappearinginthecontracthasenteredhisinstalla­
tions.
ArtiJ<17
Inthecasereferredtointhesecondsubparagraph of
Annie13»winefortifiedfordistillation .shallbe
distilledbeforeaspecifieddate.Theproductobtained
tiomthedistillationofwinefortifiedforthatpurpose
shallhaveanalcoholicstiengthbyvolumeof85%or
less.
Attnh18
1.IlieinterventionagencyoftheMemberState
wherethewinefortifiedfordistillation hasbeen
manufactured shallpaytothemanufacturer the
amountreferredto
-InArticle 5(2 )inaccordance with
Article 6(10or (5)asthe case may be .
2.Theaidshallbecalculatedbyhectolitreandby
%voloftheactualalcoholicstrengthofthewine
beforeitisfortifiedfordistillation .
.1.Themargin"providedforinArticle11sha|
applytothequantitiesoftablewinedeliveredtothj
manufacturer 'sinstallations .

-1*t-
Iheantsh.illbepaidfor
thequantityoftablewinewhich,afterbeingfortified
fordistillation ,hasactuallybeendistilled.
ArtnU19
f-orthepurposesofthisRegulation ,'anapproved
distiller'shallmeanadistillerincludedonalisttohe
compiledbyhecompetentauthoritiesoftheMember
States.
Ap'T'.ononwhosebeh.iltdistillationiscarriedout
shallbetreatedinthesamewayasadistillerwithin
themeaningofthefirstp.uai'.i.iph .
Suchdistillationmustbecarriedoutbyanapproved
distiller .
ForthepurposesofthisRegulation'anapproved
manufacturer' shallmeanamanufacturer includedon
alisttobecompiledbytheMemlwrStates.
Approvalofadistillerorofamanufacturer maybe
withdrawnbvthecompetentauthorityifhedoesnot
satisfytheobligationsincumbentuponhim,pursuant
toCommunityprovisions .
Aftnli20
1.Ilieinterventionagenciesresponsibleforimple­
mentingthisRegulationshallbethoseappointedby
theMemberStatesmaccordance withArticle8of
Regulation (TIC)No
2.WithoutpiejudicetoArticle1(1),Article^(})
andArticle1$(l),thecompetentinterventionagency
shallbethatoftheMemberStatesinwhoseterritory
distillationtakesplace.
Artide21
MemberStatesshalltakethemeasuresnecessaryto
ensurethatthisRegulationand,inparticular ,ihecks
topreventthedeflectionottablewinefromits
end-useotdistillation ,areimplemented .Tothisend
MemberStatesmaystipulatethatanindicatormaybe
used.
MemberStatesmaynotpreventthemovementwithin
theirterritoryofatablewineintendedfordistillation
orofdistilledproductsobtainedfromsuchwine,
becauseofthepresenceofanindicator.
At/idv22
ThisRegulationshallenterintoforceonthedayofits
publicationintheOf/icijlJournalofthelum>[>eun
Cnmmiinitus .

-15-
This Regulation shall bebinding initsentirety and directly
applicable inall Member States .
Done atBrussels ,

FINANCIAL STATEMENT
Date : .25February 19c2
1.BUOGET HEADING : 11Distillation ofwine APPROPRIATIONS :1982 :220tnECU
2.TITLE :Draft Council Kep;ulati onlayinp ;down gonersl rules onthe
distillation oftable wines asprovided for inRegulation (fcftC )
iio337/79,Article 15
3.LÉGAL BASIS :Article 15of l<ovulation 3.57/79
H.AIMS OFPROJECT :
Tomeet the serious crisis onthe red wine market
byrecourse toextra distillation
5.FINANCIAL IMPLICATIONS
5.0 EXPENDITURE
-CHARGED TOTHE ECBUDGET
(REFUNDS /INTERVENTIONS )
-NATIONAL ADMINISTRATION
-OTHER
5.1 RECEIPTS
-OWN RESOURCES OFTHE EC
VLEVIES /CUSTOMS DUTIES )
-NATIONALPERIOD OF12MONTHS
138 M!ECU
(maxi mum )CURRENT FINANCIAL YEAR
(ft?1
130 mECU
(maxi mum )FOLLOWING FINANCIAL YEAR
< )
toi'.on entry
Λ9Μ .
5.0.1 ESTIMATED EXPENDITURE
5.1.1 ESTIMATED RECEIPTSMeasure a...1ÇLS5 ....
ffectc one....3.986 .
marketing ybar only
5.2 METHOD OFCALCULATION
Total amounts ofwine tobedistilled :amaximum of7million hectolitres
ofredwine (10°),half (3«5 mhi)fordistillation towine spirits and
half toalcohol ofover 86° .
Expond !ture :wine spirits 3-5 mhix10°x1.8 ()ECU/hl-63mECU
alcohol 3-5 mhix10° x2.15 ECU/hl=75mECU
138 mECU (max )
6.0CAN THEPROJECT BEFINANCED FROM APPROPR IATIONS ENTERE DINTHERELEVANT CHAPTER OFTHECURRENT BUDGET ?
YES/FC%
6.1 &iatfx9WÖ k£5c* ÄUc iftc kü5c
6.2 WILL ASUPPLEMENTARY BUDGET BENECESSARY ?*»/ N0
6.3 WILL 'FUTURE BUDGET APPROPR IATIONS OENECESSARY ?
XBDC /N0
OBSERVATION :1220 million ECU for all distillation and anestimated 120 millio
ECU for extra distillation .Ifthe maximum quantity is
distilled ,thedifference (i.e. 138 -128 =10million ECU )
could bemet from savings onother distillation operations .