Commission Regulation (EC) No 1055/98 of 20 May 1998 amending Regulation (EC) No 2020/97 introducing preventive distillation as provided for in Article 38 of Council Regulation (EEC) No 822/87 for the 1997/98 wine year
Date: 1998-05-20
Institutions: European Commission
Subjects: EU production, agricultural quota, agricultural region, distillation, quantitative restriction, table wine

21. 5. 98

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Official Journal of the European Communities

L 151/21

COMMISSION REGULATION (EC) No 1055/98

of 20 May 1998

amending Regulation (EC) No 2020/97 introducing preventive distillation as
provided for in Article 38 of Council Regulation (EEC) No 822/87 for the 1997/98
wine year

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Whereas the distillation contracts or declarations had to
be signed by 29 January 1998 at the latest;

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 organisation of
the
market in wine (1), as last amended by Regulation (EC) No
2087/97 (2), and in particular Article 38(5) thereof,

Whereas Commission Regulation (EC) No 2020/97 (3)
introduces preventive distillation as provided for
in
Article 38 of Regulation (EEC) No 822/87; whereas
Article 1(4) of that Regulation allows the Member States
to approve contracts or declarations as soon as they are
submitted,
the
for a quantity not exceeding half of
quantity specified in each contract or declaration;

Whereas under Article 8(1) of Council Regulation (EEC)
No 2046/89 (4), as last amended by Regulation (EC) No
2468/96 (5), distillers may apply for an advance payment
equal to the amount of the aid provided they have lodged
a security; whereas the possibility of distilling not more
than half the total quantity of wine specified in contracts
and declarations immediately after approval as referred to
in Article 1(4) of Regulation (EC) No 2020/97, introduced
to speed up preventive distillation for the current wine
year, may engender financial difficulties for distillers, who
are unable to reclaim the security until the contracts have
been fully performed; whereas, therefore, the provision
introduced to facilitate preventive distillation could
jeopardise the proper functioning of distillation opera-
tions because the money for the security, which would
normally be released on performance of a contract and
which could then be used to perform other contracts, can
be tied up throughout the period of performance of the
contracts,
thereby requiring distillers to invest consid-
erably larger sums; whereas this situation should be rem-
edied by separating the parts of the contracts and declara-
tions approved under Articles 1(4) and 1(6) of Regulation
(EC) No 2020/97, respectively, with a view to applying the
provisions on the advance of the aid and the security;

(1) OJ L 84, 27. 3. 1987, p. 1.
(2) OJ L 292, 25. 10. 1997, p. 1.
(3) OJ L 284, 16. 10. 1997, p. 39.
(4) OJ L 202, 14. 7. 1989, p. 14.
(5) OJ L 335, 24. 12. 1996, p. 7.

Whereas the preventive distillation as introduced, while
having significant results, has nevertheless missed some
wines that are unsuitable for the market and which ad-
versely affect it; whereas, under the circumstances, these
wines should be withdrawn from the market by reintrodu-
cing preventive distillation for a limited volume restricted
to table wine with a view to improving in this manner the
quality of the wines that should remain on the market;
whereas distillation should be reintroduced only in those
regions which have not distilled the quality allocated to
them;

Whereas, in the interests of efficiency, preventive distilla-
tion should be reintroduced only for wine producers who
have already signed distillation contracts or declarations;
whereas in addition, in certain regions distillation should
be reintroduced only for wine producers who have signed
such contracts for a substantial part of the maximum
quantity provided for in Article 1(1) of Regulation (EC)
No 2020/97 and who wish to distil additional quantities;

Whereas, where the overall quantity applied for by region
exceeds the quantities provided for, the Member States
must apply a single rate of reduction for all new contracts
submitted;

Whereas, with a view to the sound management of the
quantities in question, it is necessary to derogate from
certain provisions of Commission Regulation (EEC) No
2721/88 of 31 August 1998 laying down detailed rules for
voluntary distillation as provided for in Articles 38, 41
and 42 of Regulation (EEC) No 822/87 (6), as
last
amended by Regulation (EEC) No 2181/91 (7), and to
provide that the quantities applied for in the contracts
and declarations may be reduced;

Whereas, to improve the effectiveness of the measure,
distillation should take place over a short time scale, and
the Member States should be permitted to impose more
restrictive measures, in particular the introduction of a
security to accompany the submission of the contract or
declaration;

(6) OJ L 241, 1. 9. 1988, p. 88.
(7) OJ L 202, 25. 7. 1991, p. 16.

L 151/22

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Official Journal of the European Communities

21. 5. 98

Whereas the measures provided for in this Regulation are
in accordance with the opinion of
the Management
Committee for Wine,

(a) the surname, forename and address of the appli-

cant;

(b) the quantity of wine he has produced and wants to
distil in accordance with the Community rules on
the quality of the products to be delivered for distil-
lation;

HAS ADOPTED THIS REGULATION:

(c) the name and address or company name of the

Article 1

Regulation (EC) No 2020/97 is amended as follows:

1. The following paragraph is added to Article 1:

For

‘10.
the purposes of applying Article 8 of
Council Regulation (EEC) No 2046/89 (*) and Article
9(2) of Regulation (EEC) No 2721/88, Member States
may decide that the two partial approvals of contracts
and declarations referred to, respectively, in Article 1(4)
and Article 1(6) of this Regulation are to be treated as
separate contracts and declarations.

(*) OJ L 202, 14.7.1989, p. 14’.

2. The following Article is inserted after Article 1:

‘Article 1a

Preventive distillation of

1.
table wine and wine
suitable for yielding table wine as referred to in Article
38 of Regulation (EEC) No 822/87 is hereby reintro-
duced for the 1997/98 wine year in those regions
which have not distilled the full volume allocated to
them.

The quantity of table wine or wine suitable for yielding
table wine that the producers can have distilled in
accordance with Regulation (EEC) No 2721/88 shall be
no more than 685 000 hl. This quantity shall be
broken down by production region as referred to in
Article 4 of Commission Regulation (EEC) No
441/88 (*) as follows:

— region 2 (France):

50 000 hectolitres

— region 4 (Italy):

575 000 hectolitres

— region 5 (Greece):

60 000 hectolitres.

2.
All producers who have produced table wine or
wine suitable for yielding table wine and who have
signed a preventive distillation contract or declaration
as referred to in Article 1(3) of this Regulation for a
quantity equal to or greater than 18 hl/ha, may, at the
latest by 29 May 1998, sign a preventive distillation
contract or declaration with the competent authorities
of the Member State, specifying in particular:

distillery.

However, in regions 2 and 5 all producers who have
signed a preventive distillation contract or declaration
as referred to in Article 1(3) of this Regulation may
sign contracts or declarations.

The distillation contract or declaration shall be accom-
the production declaration
panied by a copy of
submitted to the competent authorities for the 1997/98
wine year.

Applicants shall also provide proof that they hold the
wine in question. The Member States may limit the
number of distillation contracts that a producer can
sign under this Article.

The producer Member States shall establish the
3.
reduction rate to be applied to the above contracts and
declarations if the total quantity of the contracts and
declarations exceeds the quantity stipulated for each
region. The Member States shall take the adminis-
trative measures necessary to approve the above
contracts and declarations not later than 25 June 1998,
indicating the reduction rate applied and the quantity
of wine accepted per contract or declaration. The
Member States shall notify the Commission of
the
quantities contracted for before 15 June 1998.

The deliveries to the distilleries must be made

4.
before 24 July 1998.

5.
the
The Member States may stipulate that
contract or declaration be accompanied by proof that a
security has been lodged as provided for in Article 1(3).

Regulation (EEC) No 2721/88 shall apply, except

6.
for Article 6(1) and (4).

(*) OJ L 45, 18.2.1988, p. 15.’

Article 2

This Regulation shall enter into force on the third day
following its publication in the Official Journal of the
European Communities.

At the request of distillers, Article 1(1) of this Regulation
may be applied to contracts and declarations submitted as
from the entry into force of Regulation (EC) No 2020/97.

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Official Journal of the European Communities

L 151/23

This Regulation shall be binding in its entirety and directly applicable in all Member
States.

Done at Brussels, 20 May 1998.

For the Commission

Franz FISCHLER

Member of the Commission