Commission Regulation (EC) No 1648/98 of 27 July 1998 fixing the buying-in prices, aids and certain other amounts applicable for the 1998/99 wine year to intervention measures in the wine sector
Date: 1998-07-27
Institutions: European Commission
Subjects: aid to agriculture, distillation, market intervention, marketing year, purchase price, viticulture

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COMMISSION REGULATION (EC) No 1648/98

of 27 July 1998

fixing the buying-in prices, aids and certain other amounts applicable for the
1998/99 wine year to intervention measures in the wine sector

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

growing zone C; whereas, in the light of experience the
derogations in force for ‘vinho verde’ should be extended;

Having regard to the Treaty establishing the European
Community,

Having regard to the Act of Accession of Austria, Finland
and Sweden, and in particular Article 149(1) thereof,

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 Articles 35(8), 36(6),
38(5), 41(10), 44, 45(9) and 46(5) thereof,

Whereas Article 4 of Commission Regulation (EC) No
3299/94 of 21 December 1994 on transitional measures
applicable in Austria in the wine-growing sector (3), as
amended by Regulation (EC) No 670/95 (4), provides for
Title III of Regulation (EEC) No 822/87 to apply in its
entirety in Austria from the 1995/96 wine year; whereas,
however, Austria should, in the interests of administrative
clarity, be considered to form part of the wine-growing
zone B provided for in Annex IV to Regulation (EEC)
No 822/87;

Whereas Council Regulation (EC) No 1628/98 (5) fixes the
guide prices for wine for the 1998/99 wine year; whereas
the prices, aids and other amounts for the various inter-
vention measures to be adopted for that wine year should
accordingly be fixed on that basis;

Whereas the aid for the use in wine-making of concen-
trated grape must and rectified concentrated grape must
as provided for in Article 45(1) of Regulation (EEC)
No 822/87 must be fixed taking into account the dif-
ference between the cost of enrichment achieved using
concentrated grape must and using sucrose; whereas, in
the light of the data available to the Commission, the
amount of the aid should be varied with the product used
for enrichment;

Whereas distillers may, in accordance with Articles 35(6)
and 36(4) of Regulation (EEC) No 822/87, either receive
aid for the product to be distilled or deliver the product
obtained from distillation to the intervention agency;
whereas the amount of the aid must be fixed on the basis
of the criteria laid down in Article 16 of Council Regula-
tion (EEC) No 2046/89 (6), as last amended by Regulation
(EC) No 2468/96 (7);

Whereas the price of wine to be distilled under Articles
38 and 41 of Regulation (EEC) No 822/87 does not
normally allow the marketing at market prices of products
obtained from distillation; whereas provision must there-
fore be made for aid, the amount of which is to be fixed
on the basis of the criteria laid down in Article 8 of Regu-
lation (EEC) No 2046/89, account also being taken of the
present uncertainty of prices on the market for distillation
products;

Whereas this Regulation applies to Austria and Portugal;
whereas, however, since wine-growing zones have not
been delimited in those countries, the oenological prac-
tices authorized in accordance with the rules laid down
under Title II of Regulation (EEC) No 822/87 should be
defined for the 1998/99 wine year pending the adoption
of definitive rules;

Whereas some wine delivered for one of the distillation
operations may be processed into wine fortified for distil-
lation; whereas the amounts applicable to distillation in
accordance with the rules laid down in Article 26 of
adjusted
Regulation (EEC) No 2046/89 should be
accordingly;

Whereas, since enrichment is an exceptional practice, the
same reduction in the buying-in price for wine provided
for in Article 44 of Regulation (EEC) No 822/87 and laid
down in Annex VIII should be applied as in wine-

(1) OJ L 84, 27. 3. 1987, p. 1.
(2) OJ L 292, 25. 10. 1997, p. 1.
(3) OJ L 341, 30. 12. 1994, p. 37.
(4) OJ L 70, 30. 3. 1995, p. 1.
(5) See page 10 of this Official Journal.

Whereas experience gained in sales by invitation to
tender of alcohol held by intervention agencies shows that
the difference between prices which may be obtained for
neutral spirits and raw alcohol does not justify the take-
over of
the former; whereas, moreover, quantities of
neutral spirits currently available are sufficient to satisfy,

(6) OJ L 202, 14. 7. 1989, p. 14.
(7) OJ L 335, 24. 12. 1996, p. 7.

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28. 7. 98

at least for one wine year, any demand for that product;
whereas under
the possibility
provided for in Articles 35, 36 and 39 of Regulation (EEC)
No 822/87 should be used by producing for the buying in
of all alcohol at the price for raw alcohol;

circumstances

these

as

last

Whereas Article 4 of Commission Regulation (EEC) No
3105/88 (1),
by Regulation (EC)
amended
No 194/98 (2), laying down detailed rules for the applica-
tion of compulsory distillation as provided for in Articles
35 and 36 of Regulation (EEC) No 822/87 sets a standard
natural alcohol strength by volume to be applied in the
various wine-growing zones for the purpose of determin-
ing the volume of alcohol to be delivered for distillation
under Article 35 of Regulation (EEC) No 822/87; whereas
it has not been possible to fix this standard natural alco-
holic strength in Portugal because the wine-growing
zones in that country have not yet been delimited;
whereas, therefore, a provisional standard natural alcohol
strength should be fixed;

Whereas Article 46(3) of Regulation (EEC) No 822/87 lays
down criteria for fixing the aid provided for in that
Article; whereas, as regards the aid for the use of grapes,
grape must and concentrated grape must for the manufac-
ture of grape juice, paragraph 4 of that Article stipulates
that a part of the aid should be set aside for the organisa-
tion of campaigns to promote the consumption of grape
juice; whereas the aid may be increased to that end;
whereas, having regard to the criteria laid down and of the
need to finance those campaigns, the aid should be fixed
at a level permitting sufficient quantities to be obtained
for the effective promotion of the product;

Whereas the reduction in the buying-in price for wine
provided for in Article 44 of Regulation (EEC) No 822/87
depends on the average increase in the natural alcoholic
strength in each wine-growing zone; whereas experience
shows that that increase corresponds on average to half
the maximum increase authorized; whereas the reduction
in the buying-in price must accordingly correspond to the
added alcoholic strength as a percentage of the alcoholic
strength of wine delivered for distillation;

as

Whereas Commission Regulation (EEC) No 3800/81 of
16 December 1981 determining the classification of vine
varieties (3),
by Regulation (EC)
amended
No 1231/98 (4), establishes the list of vine varieties recom-
mended and authorized in Portugal; whereas, in assessing
the production of wine in Portugal, reference should be
made to those vine varieties;

last

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

(1) OJ L 277, 8. 10. 1988, p. 21.
(2) OJ L 20, 27. 1. 1998, p. 19.
(3) OJ L 381, 31. 12. 1981, p. 1.
(4) OJ L 168, 13. 6. 1998, p. 24.

HAS ADOPTED THIS REGULATION:

Article 1

This Regulation fixes the buying-in prices, the aids and
certain other amounts applicable for the 1998/99 wine
year to intervention measures in the wine sector in the
Community. As regards the measures provided for in
Articles 38 and 41 of Regulation (EEC) No 822/87, those
amounts shall be fixed subject to a subsequent decision
on the activating of those measures.

Article 2

The buying-in prices of the products and of wine
1.
delivered during the 1998/99 wine year for compulsory
distillation as provided for in Articles 35 and 36 of Regu-
lation (EEC) No 822/87 and, for those products:

— aid to distillers,

— aid to fortifiers of wine of distillation,

— the buying-in prices of alcohol obtained, delivered to

an intervention agency,

— the contribution from the European Agricultural
Guidance and Guarantee Fund towards the taking
over of that alcohol,

shall be as set out in Annexes I and II hereto.

2.
In accordance with the second subparagraph of
Article 35(6), the second subparagraph of Article 36(4) and
the second subparagraph of Article 39(7), the intervention
agency shall pay the raw alcohol price for the alcohol
delivered to it.

Article 3

The buying-in prices
for wine delivered during the
1998/99 wine year for voluntary distillation as provided
for in Articles 38 and 41 of Regulation (EEC) No 822/87
and, for those products:

— aid to distillers,

— aid to fortifiers of wine for distillation,

shall be as set out respectively in Annexes III and IV.

Article 4

The aid for utilization during the 1998/99 wine year of
concentrated grape must and rectified concentrated grape
must as provided for in Article 45(1) and in the first
subparagraph of Article 46(1) of Regulation (EEC)
No 822/87 shall be as set out respectively in Annexes V,
VI and VII hereto.

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Article 5

The reductions provided for in Article 44 of Regulation
(EEC) No 822/87 applicable to the buying-in prices for
wine delivered during the 1998/99 wine year for distilla-
tion as provided for in Article 36, 38, 39 or 41 of that
Regulation and, for that wine:

— to the aid to the distiller,
— to the buying-in prices of alcohol obtained, delivered

to an intervention agency,

— to the contribution from the European Agricultural
Guidance and Guarantee Fund to the taking over of
that alcohol,

shall be as set out in Annex VIII hereto.

For the purposes of this Article, Portugal shall be con-
sidered to form part of wine-growing zone C, and Austria
of wine-growing zone B.

Article 6

For the application of the rules governing oenological
practices and processes laid down in Title II of Regulation
(EEC) No 822/87, Austria shall be considered to form part
of wine-growing zone B for the 1998/99 wine year.

Article 7

The

rules governing oenological practices

1.
and
processes laid down in Title II of Regulation (EEC)
No 822/87 shall apply to Portugal during the 1998/99
wine year subject to the following conditions:

(a) increase in alcoholic strength shall be limited to 2 %
vol. Products eligible under this measure shall have a
natural alcoholic strength by volume of at least 7,5 %
vol, before enrichment and total alcoholic strength by
volume of not more than 13 % after enrichment.

However, products upstream of table wine originating
in the ‘Vinho verde’ region must have an alcoholic
strength by volume of at least 7 % before enrichment.

The addition of concentrated grape must or rectified
concentrated grape must shall not have the effect of
increasing the initial volume of fresh crushed grapes,
grape must, grape must in fermentation or new wine
still in fermentation by more than 6,5 %;

(b) fresh grapes, grape must, grape must in fermentation,
new wine still in fermentation and wine may be the
subject of acidification or deacidification.

The wine varieties which may be used to produce
2.
table wine shall be those listed in the Annex to Regula-
tion (EEC) No 3800/81.

‘Vinho verde’ may:

— be marketed with a minimum total alcoholic strength
by volume of 8,5 % for wines which have not been
subject to enrichment,

— possess a total context of sulphine dioxide no greater
than 300 milligrams per litre for white ‘Vinho verde’
wines with a residual sugar content not less than 5 g/l.

3.
The quantity of alcohol which producers of table
wine in Portugal must deliver for distillation in accord-
ance with Article 35 of Regulation (EEC) No 822/87 shall
be calculated on the basis of a standard natural alcoholic
strength, to be taken into consideration for the assessment
of the volume of alcohol contained in the wine produced,
equal to 9 % by volume, with the exception of wines
produced in the delimited ‘Vinho verde’ region, for which
the alcoholic strength to be taken into consideration shall
be 8,5 %.

Article 8

This Regulation shall enter into force on 1 September
1998.

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

Done at Brussels, 27 July 1998.

For the Commission

Franz FISCHLER

Member of the Commission

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ANNEX I

DISTILLATION AS PROVIDED FOR IN ARTICLE 35 OF REGULATION (EEC) No 822/87

1998/99 WINE YEAR

1. Buying-in price to be paid to the producer by the distiller

(ECU/% vol/hl)

0,9902

2. Aid:

(a) for distillation:

1. neutral spirits:

— flat-rate
— of marc
— of wine and lees

2. spirits distilled from marc

3. spirits distilled from wine

4. raw spirits:

— flat-rate
— of marc
— of wine and lees

(b) for the fortification of wine for distillation

3. Prices of raw spirits delivered (1):

— flat-rate

— spirits distilled from marc

— spirits distilled from wine and lees

4. EAGGF contribution for spirits (2)

0,6279
0,8453
0,4106

0,3985

0,2777

0,4951
0,7124
0,2777

0,2657

1,654

1,872

1,437

0,4951

(1) If the distiller has received the aid under 2, these prices are to be reduced by an amount equal to the aid (third subpara-

graph of Article 18(2) of Regulation (EEC) No 2046/89).

(2) For quantities of alcohol delivered to the intervention agency in respect of which aid has been paid to the distiller, this

contribution is to be reduced by the amount of the flat-rate aid paid.

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ANNEX II

DISTILLATION AS PROVIDED FOR IN ARTICLE 36 OF REGULATION (EEC) No 822/87

1998/99 WINE YEAR

1. Buying-in price to be paid to the producer by the distiller

2. Aid:

(a) for distillation:

1. neutral spirits

2. spirits distilled from wine and raw spirits

(b) for the fortification of wine for distillation

3. Prices of raw spirits delivered (1)

4. EAGGF contribution for spirits (2)

(ECU/% vol/hl)

1,340

0,7728

0,6401

0,6158

1,799

0,6401

(1) If the distiller has received the aid under 2, these prices are to be reduced by an amount equal to the aid (third subpara-

graph of Article 18(2) of Regulation (EEC) No 2046/89).

(2) For quantities of alcohol delivered to the intervention agency in respect of which aid has been paid to the distiller, this

contribution is to be reduced by the amount of the flat-rate aid paid.

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DISTILLATION AS PROVIDED FOR IN ARTICLE 38 OF REGULATION (EEC) No 822/87

ANNEX III

1998/99 WINE YEAR

(ECU/% vol/hl)

1. Buying-in price to be paid to the producer by the distiller:

— type A I, R I and R II (1)
— type A II
— type A III
— type R III

2. Aid:

(a) for distillation:

1. neutral spirits:

— type A I, R I and R II
— type A II
— type A III
— type R III

2. spirits distilled from wine and raw spirits:

— type A I, R I and R II
— type A II
— type A III
— type R III

(b) for the fortification of wine for distillation:

— type A I, R I and R II
— type A II
— type A III
— type R III

2,487
5,385
6,146
3,852

1,884
4,818
5,603
3,272

1,751
4,685
5,470
3,140

1,715
4,613
5,373
3,079

(1) And table wine in a close economic relationship with these types of table wine, or wines suitable for yielding table wine.

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ANNEX IV

DISTILLATION AS PROVIDED FOR IN ARTICLE 41 OF REGULATION (EEC) No 822/87

1998/99 WINE YEAR

(ECU/% vol/hl)

1. Buying-in price to be paid to the producer by the distiller:

— type A I, R I and R II (1)
— type A II
— type A III
— type R III

2. Aid:

(a) for distillation:

1. neutral spirits:

— type A I, R I and R II
— type A II
— type A III
— type R III

2. spirits distilled from wine and raw spirits:

— type A I, R I and R II
— type A II
— type A III
— type R III

(b) for the fortification of wine for distillation:

— type A I, R I and R II
— type A II
— type A III
— type R III

(1) And table wine in a close economic relationship with these types of table wine.

3,140
6,798
7,752
4,854

2,548
6,255
7,233
4,287

2,415
6,122
7,100
4,154

2,367
6,025
6,979
4,081

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ANNEX V

AID FOR THE USE IN WINE-MAKING OF CONCENTRATED GRAPE MUST AND
RECTIFIED CONCENTRATED GRAPE MUST (ARTICLE 45(1) OF REGULATION (EEC)
No 822/87)

1998/99 WINE YEAR

Amount of the aid:

(a) concentrated grape must:

— wine-growing zones C III(a) and C III(b)
— others, including Portugal

(b) rectified concentrated grape must:

— wine-growing zones C III(a) and C III(b)
— others, if production commenced before 30 June 1982 (EUR 10) or before 1 January

1986 (Spain)

— others, including Portugal

(ECU/% vol/hl)

1,699
1,446

2,206

2,206
1,953

ANNEX VI

AID FOR THE USE OF GRAPE MUST AND CONCENTRATED GRAPE MUST FOR THE
PURPOSE OF MANUFACTURING CERTAIN PRODUCTS IN THE UNITED KINGDOM
AND IN IRELAND (SECOND AND THIRD INDENTS OF ARTICLE 46(1) OF REGULATION
(EEC) No 822/87)

1998/99 WINE YEAR

Flat-rate amount of the aid:

1. Products referred to in the second indent of Article 46(1) of Regulation (EEC) No 822/87

2. Products referred to in the third indent of Article 46(1) of Regulation (EEC) No 822/87

(ECU/kg)

0,2379

0,3103

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ANNEX VII

AID FOR THE USE OF GRAPES, GRAPE MUST AND CONCENTRATED GRAPE MUST FOR
THE PURPOSE OF MANUFACTURING GRAPE JUICE (FIRST INDENT OF ARTICLE 46(1)
OF REGULATION (EEC) No 822/87)

1998/99 WINE YEAR

Flat-rate amount of the aid:

(a) grapes (per 100 kg)

(b) grape must (per hl)

(c) concentrated grape must (per hl)

Percentage of the amount of the aid withheld for the financing of the
promotion campaign

(ECU)

6,603

8,257

28,873

25

ANNEX VIII

REDUCTION IN THE BUYING-IN PRICE OF WINE AS PROVIDED FOR IN ARTICLE 44 OF
REGULATION (EEC) No 822/87

1998/99 WINE YEAR

Zone A

0,3623

Zone B

0,3019

(ECU/% vol/hl)

Zone C
and Portugal

0,1811