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
Date: 1996-07-22
Institutions: European Commission
Subjects: agricultural by-product, distillation, vinification, viticulture, wine

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: 

"  1993/94 

Preventive distillation  1994/95 

" 

1995/96 

723 233 hi 

1 341  922 hi 

659 214 hi 

137 220 hi 

These represented the following  proportions of total volume distilled: 

Article  381 

Article 391 

('000 hi) 

Country: 

Italy 

Marketing 

Total volume 

"AWGC" 

Total  volume 

"AWGC" 

year 

distilled 

distillation as % 

distilled 

of total volume 

distillation  as % 

of total  volume 

EC 

Italy 

EC 

Italy 

EC 

Italy 

EC 

Italy 

1992/1993 

16 464 

7  046 

1993/1994 

9  667 

4 415 

-

-

-

-

8 492 

4  702 

8.5 

15.4 

6  854 

5  598 

19.6 

22.5 

1994/1995 

5 658 

3 304 

11.5 

19.9 

1995/1996 

1 898 

8002 

7.2 

17.1 

-

-

-

-

-

-

-

-

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 

1. 

BUDGET HEADING: 
Bl  -  1611  and  1612 

TITLE: 

DATE: 20.6.96 

APPROPRIATIONS: 
ECU 312 m and 68 m 

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. 

5.1. 

EXPENDITURE 
-  CHARGED TO THE EC BUDGET 

(REFUNDS/INTERVENTION) 
- NATIONAL  ADMINISTRATION 
-OTHER 

REVENUE 
-  OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS  DUTIES) 

- NATIONAL 

5.0.1. 
5.1.1. 

ESTIMATED  EXPENDITURE 
ESTIMATED REVENUE 

5.2. 

METHOD OF CALCULATION: 

1998 

1999 

2000 

2001 

6.0. 

6.1. 

6.2. 

6.3. 

CAN THE PROJECT BE FINANCED  FROM APPROPRIATIONS ENTERED IN THE RELEVANT 
CHAPTER OF THE CURRENT BUDGET? 

CAN THE PROJECT BE FINANCED BY TRANSFER  BETWEEN CHAPTERS OF THE CURRENT 
BUDGET? 

IS A SUPPLEMENTARY  BUDGET NECESSARY? 

WILL FUTURE BUDGET APPROPRIATIONS  BE NECESSARY? 

YES 

YES 

NO 

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 

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