Commission regulation (EC) No 1623/2000 of 25 July 2000 laying down detailed rules for implementing Regulation (EC) No 1493/1999 on the common organisation of the market in wine with regard to market mechanisms
Date: 2000-07-25
Institutions: European Commission
Subjects: application of EU law, common organisation of markets, vinification, viticulture

31.7.2000

EN

Official Journal of the European Communities

L 194/45

COMMISSION REGULATION (EC) No 1623/2000

of 25 July 2000

laying down detailed rules for implementing Regulation (EC) No 1493/1999 on the common
organisation of the market in wine with regard to market mechanisms

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Com-
munity,

Having regard to Council Regulation (EC) No 1493/1999 on
the common organisation of the market in wine (1), and in
particular Articles 24, 25, 26, 33, 34, 35, 36 and 80 thereof,

Whereas:

(1)

(2)

(3)

(4)

Title III of Regulation (EC) No 1493/1999 lays down
general rules on market mechanisms and refers for the
rest to detailed implementing rules to be adopted by the
Commission.

Until now, those rules have been contained in a large
number of Community regulations. In the interests of
both economic operators in the Community and the
authorities responsible for applying Community rules,
all these provisions should be brought together in a
single Regulation.

This Regulation must include the current rules and adapt
them to the new requirements of Regulation (EC)
No 1493/1999. They must also be simplified and made
more coherent and certain gaps must be filled in to
the Community rules in this area are
ensure that
complete. In addition, some rules should be made more
specific to ensure greater legal certainty when they are
applied.

Article 35(1)(a) of Regulation (EC) No 1493/1999 intro-
duces an aid scheme for the use of grape must and
concentrated grape must made from grapes produced in
the Community for the purpose of manufacturing grape
juice or other comestible products made with this juice.

(5)

Such other comestible products should be specified.

(6)

The economic aim of the aid scheme is to encourage the
use of raw materials of Community origin rather than
imported raw materials in the manufacture of grape

(1) OJ L 179, 14.7.1999, p. 1.

juice or other comestible products made with this juice.
The aid should accordingly be granted to the users of
the raw materials, i.e. the processors.

It should be stipulated that the aid is granted only for
raw materials with the quality characteristics required
for processing into grape juice. It should accordingly be
specified in particular that the grapes and grape must
covered by a statement must have a density at 20 °C of
between 1.055 and 1.100 grams per cubic centimetre.

Application of the aid scheme calls for an administrative
system to monitor both the origin of products eligible
for the aid and their intended use.

To ensure that the aid scheme and the checks operate
properly, the processors concerned should be required to
submit a written statement containing the information
needed to enable the operations to be monitored.

(7)

(8)

(9)

(10) However, to avoid excessive administration for both the
processors and the authorities concerned, no prior
written statement should be required from processors
using only a small quantity of grapes or grape must each
wine year. That quantity should be fixed. The processors
concerned must nevertheless inform the competent
authorities of their Member State at the beginning of
each wine year of their intention to process a certain
quantity of grapes or grape must.

(11) When the processor is not the user of the product
concerned, particularly where the inspecting authority
concerned is in a different Member State than the
processor, it is not always easy for that authority to
know whether a statement relates to grape must which
has not received aid under this Regulation or to grape
juice for which an aid application has already been
submitted. The transport document accompanying the
product concerned should therefore indicate whether an
aid application has been submitted.

L 194/46

EN

Official Journal of the European Communities

31.7.2000

(12)

In order for the aid scheme to significantly increase the
use of Community raw materials, it should be stipulated
that aid applications must be submitted for a fixed
minimum quantity for each product.

(20) Article 34 of Regulation (EC) No 1493/1999 introduces
an aid scheme for concentrated must and rectified
concentrated must produced in the Community and
used to increase the alcoholic strength of wines.

(13) Under Article 35(5) of Regulation (EC) No 1493/1999,
part of the aid is to be used to organise campaigns to
promote the consumption of grape juice. The percentage
of the aid earmarked for this purpose should be sufficient
to generate adequate funds to finance effective pro-
motion campaigns.

(14) Processing is carried out by both occasional processors
and undertakings working continuously. The detailed
rules for applying the aid scheme must take account of
that difference in structures.

(15)

In order to allow the competent authorities of the
Member States to conduct the necessary checks, the
obligations of processors as regards stock accounts
should be specified.

(16)

In order to avoid unwarranted expenditure and facilitate
checks, a maximum ratio should be specified between
the raw materials used and the grape juice obtained,
based on normal processing techniques.

(17)

For commercial reasons, some operators store the grape
juice obtained for a long time before putting it up for
consumption. This being the case, a system of advances
should be introduced so that the aid can be paid in
advance to operators against a suitable security to
protect the competent authorities against the risk of
undue payment. The time limit for the payment of
advances should therefore be specified, together with
detailed rules for the release of securities.

(18) To qualify for the aid, the parties concerned must
submit an application together with certain supporting
documents. To ensure that the system operates in the
same way in all the Member States, time limits should
be laid down for the submission of applications and for
payment of the aid to processors.

(19) Under Article 44(5) of Regulation (EC) No 1493/1999,
grape juice may not be turned into wine or added to
wine. In order to ensure compliance with that provision,
the obligations and special checks devolving on pro-
cessors and bottlers of grape juice should be specified.

(21) Under Article 36 of Regulation (EC) No 1493/1999,
detailed rules may be laid down, in particular to stipulate
the conditions for granting the aid. On that basis, rules
should be laid down for applying the measure in the
case of small producers. It should also be stipulated that
only producers who have fulfilled their Community
obligations during a specified period are to be eligible
under this measure.

(22) The competent authorities must be informed of enrich-
ment operations involving the addition of concentrated
grape must and rectified concentrated grape must and
of the quantities of those products which are held. Since
the quantities of those products which are or have been
used for enrichment must be recorded in the registers
provided for
in Article 70(2) of Regulation (EC)
No 1493/1999, there is no need to require additional
documents to be presented in order for the aid to be
received.

(23) To ensure uniform application of

the aid scheme
concerned, the method for establishing the potential
alcoholic strength of musts should be harmonised at
Community level.

(24) The cost price of grape must used to produce concen-
trated grape must and rectified concentrated grape must
depends on its potential natural alcoholic strength. To
take account of this fact and to avoid disrupting the
existing pattern of trade, the aid should be differentiated
so that a higher amount can be granted for concentrated
grape must and rectified concentrated grape must from
the southernmost regions of the Community, which
traditionally produce must with the highest potential
natural alcoholic strength.

(25) Article 35(1)(b)

of

and

Regulation

(EC)
(c)
No 1493/1999 introduces an aid scheme for the use of
grape musts and concentrated grape musts produced in
wine-growing zones C III (a) and C III (b) to prepare
certain products falling within CN code 2206 00 in
the United Kingdom and Ireland and for the use of
concentrated grape musts produced in the Community
to manufacture certain products marketed in the United
Kingdom and in Ireland with instructions for using them
to obtain a beverage in imitation of wine.

31.7.2000

EN

Official Journal of the European Communities

L 194/47

(26) Products falling within CN code 2206 00 as referred to
in Article 35(1)(c) of Regulation (EC) No 1493/1999 are
currently produced exclusively from concentrated grape
must. At this stage, therefore, aid should be fixed for the
use of concentrated grape must alone.

(35) The term ‘producer’ should be defined and, in view of
the obligations imposed upon such persons, it should
be stipulated that producers must be the owners of the
products covered by the storage contract.

(27) Application of the aid scheme calls for an administrative
system to monitor both the origin of products eligible
for the aid and their intended use.

(28) To ensure that the aid scheme and the checks operate
properly, the operators concerned should be required
to submit written applications giving the information
needed to identify the product and enable the operations
to be checked.

(29)

In order for the aid scheme to significantly increase the
use of Community products, it should be stipulated that
applications must be submitted for a fixed minimum
quantity.

(30) Aid is to be granted only for products having the
minimum quality characteristics required for use for the
purposes referred to in Article 35(1)(b) and (c) of
Regulation (EC) No 1493/1999.

(31)

In order to enable the competent authorities of the
Member States to conduct the necessary checks, the
obligations of processors as regards stock accounts
should be specified.

(32) Entitlement to aid is acquired when the processing
operations are completed. To allow for technical losses,
the quantity actually used should be allowed to be up to
10 % less than the quantity stated in the application.

(33)

For technical reasons, operators lay in their stocks a long
time before manufacturing the marketed products. This
being the case, a system of advances should be intro-
duced so that the aid can be paid in advance to operators
against a suitable security to protect the competent
authorities against the risk of undue payment. The time
limit for the payment of advances should therefore be
specified, together with detailed rules for the release of
securities.

(36) An effective check must be kept on the products covered
by storage contracts. To that end, the intervention
agency of a Member State should be allowed to conclude
contracts only for quantities stored on the territory of
that Member State, and it should be informed of any
change in the product or the place of storage.

(37)

For the sake of uniformity, contracts should be con-
cluded on the same terms throughout the Community
and be sufficiently precise to enable the product con-
cerned to be identified.

(38) Experience of the various schemes for the private storage
of agricultural products has shown that it is necessary to
specify the extent to which Council Regulation (EEC,
Euratom) No 1182/71 is applicable for determining
periods, dates and time limits relating to those schemes,
and that the dates on which contractual storage periods
begin and end should be stated precisely.

(39) Under Article 3(4) of Regulation (EEC, Euratom)
No 1182/71, where the last day of a period is a public
holiday, Sunday or Saturday, the period expires at the
end of the last hour of the following working day. It
may not be in the interest of operators for this provision
to be applied in the case of storage contracts, since it
could result in unequal treatment where the last days of
storage are carried over. A derogation must therefore be
provided for when the final day of storage under contract
is determined.

(40)

In order to ensure that the system of contracts has an
effect on market prices, contracts should be concluded
only for significant quantities.

(34) Under Chapter

I of Title III of Regulation (EC)
No 1493/1999, private storage aid may be granted for
table wine, grape must, concentrated grape must and
rectified concentrated grape must. opened segment
Under Article 24(2) of that Regulation, the grant of aid
is subject to the conclusion of storage contracts. Detailed
rules should be laid down covering the conclusion,
content, period of validity and effects of such contracts.

(41) Storage aid should be restricted to products which have
an effect on market prices. Accordingly, only products
in bulk should qualify for aid. For the same reason,
contracts should cover only products of sufficiently high
quality. In the case of table wine, contracts should relate
to wines at an advanced stage of preparation, but it must
be possible during the contract period to carry out any
oenological processes needed to ensure the preservation
of the product.

L 194/48

EN

Official Journal of the European Communities

31.7.2000

(42) To encourage improvement in quality, the minimum
alcoholic strength of wine and must eligible for storage
measures should be fixed. To the same end, it should be
possible to lay down more stringent conditions for table
wine covered by storage contracts, based on the quality
of the harvest.

Article 25(4) of Regulation (EC) No 1493/1999, the
amount of aid for concentrated grape must should be
1,5 times higher than for grape must. However, the
amounts fixed in this Regulation may be amended to
take account of substantial fluctuations in market prices
or interest rates.

(43)

In order to avoid abuse of the system, table wines which
have been stored under contract may not subsequently
be recognised as quality wines psr.

(44)

In order to prevent products covered by a contract from
affecting the market situation, marketing and certain
actions preparatory thereto should be prohibited during
the contractual storage period.

(45) Under the third indent of Article 26(1) of Regulation
(EC) No 1493/1999, rules may be adopted allowing
grape must covered by a long-term contract to be
processed into concentrated grape must or rectified
concentrated grape must during the period of validity of
the contract. Since such processing is a normal oper-
ation, it should be permitted permanently.

(46)

Intervention agencies should be notified whenever grape
must is processed while under a storage contract, so that
they may carry out the necessary checks.

(47) The processing of grape must into concentrated grape
must and rectified concentrated grape must reduces the
volume of product in storage and consequently brings
down storage costs. However, since the product obtained
has a higher value, the reduction in storage costs is offset
by the rise in interest. It is therefore justified, in cases
where the product is processed during storage, for the
aid to remain at the level calculated on the basis of the
quantity of grape must under contract prior to pro-
cessing throughout the period of validity of the contract.
Moreover, the products obtained must have the charac-
teristics required by the Community rules.

(48) The amount of private storage aid should take into
account technical storage costs and interest. Technical
storage costs can differ according to the type of product,
while the amount of the interest depends on the value
of the product. Accordingly, for ease of administration,
the amount of aid per hectolitre per day should be fixed
for separate groups of table wines and musts. Under

(49)

It must also be possible to shorten the storage period in
cases where the products are intended for export once
removed from storage. Proof that the products have
been exported should be supplied in the same way as
for refunds, in accordance with Commission Regulation
(EC) No 800/1999 of 15 April 1999 laying down com-
mon detailed rules for the application of the system of
export refunds on agricultural products (1).

(50) To ensure that this system is effective while at the same
time taking into account the administrative requirements
of the intervention agencies, a time limit should be laid
down for payment of the aid. However, in the case of
long-term contracts, in order to help meet the cash-flow
requirements of the producers concerned, the Member
States should be authorised to introduce an advance
payment scheme involving the lodging of adequate
securities.

(51) When a storage contract for table wine expires, pro-
ducers may, on request, conclude a new contract using
simplified formalities provided the conditions for the
conclusion of a new contract for the same product are
satisfied.

(52) The market for must and concentrated must for grape
juice production is expanding and, in order to promote
the use of vine products for purposes other than wine-
making, permission should be granted for must and
concentrated must covered by storage contracts and
intended for grape-juice production to be sold from
the fifth month of the contract onwards on simple
notification by the producer to the intervention agency.
This same possibility should apply to promote export of
these products.

(53) The products which may be obtained by distillation
should be specified, and in particular the minimum
quality requirements for neutral alcohol should be
laid down. In setting these requirements, technological
progress should be taken into account, as should the
need to ensure that the alcohol produced can be sold
normally on the markets for the different uses.

(54) The checks on products intended for distillation should

be intensified.

(1) OJ L 102, 17.4.1999, p. 11.

31.7.2000

EN

Official Journal of the European Communities

L 194/49

(55)

In the case of voluntary distillation under Articles 29
and 30 of Regulation (EC) No 1493/1999, producers
should be required to conclude delivery contracts with
distillers, to be approved by the intervention agency, so
that operations can be supervised and both parties’
compliance with their obligations can be checked. Under
such a system the quantitative effects of distillation
operations on the market could be more closely moni-
tored. However,
the contracts system needs to be
adjusted to take account of the fact that some producers
wish to entrust distillation to a jobbing distiller while
others have distillation plant themselves.

(56) Specific rules are needed to ensure that wine delivered
for one of the optional distillation operations comes
from the producers’ own production. To that end, such
producers should be required to provide proof that they
have actually produced and hold the wine to be delivered.
Rules are also needed to ensure that
the essential
elements of distillation contracts are adequately checked.

actually deliver the required quantities for distillation. In
some cases exclusion from intervention measures has
not been a sufficient incentive to ensure that persons
subject to compulsory distillation fulfil their obligations.
Additional Community measures are therefore needed
for producers who fail to fulfil their obligations within
the time allowed but who do fulfil them before another
date to be specified.

(61) The various wine distillation operations may yield
neutral alcohol as defined in the Annex to this Regu-
lation, on the basis of criteria relating to its composition.
Community methods of analysis should be adopted to
ensure that these criteria are complied with.

(62) These methods must be compulsory for all commercial
transactions and verification procedures.
In view of
the trade’s limited facilities, a small number of usual
procedures should be allowed so that
the requisite
factors can be determined rapidly and with reasonable
accuracy.

(57) Experience shows that a certain tolerance should be
allowed in the quantity and actual alcoholic strength by
volume of the wine covered by delivery contracts.

(63) The Community methods of analysis should be generally

recognised methods and should be uniformly applied.

(58) Time limits should be set for payment of aid to distillers
by the intervention agencies. It should also be possible
for the aid to be paid to distillers in advance. A system
of securities is needed to ensure that the intervention
agency is not exposed to unjustified risks.

(59)

In the case of distillation under Articles 27 and 28 of
Regulation (EC) No 1493/1999, experience has shown
that it is not always easy for producers to calculate
exactly the quantities of products they are required to
deliver to meet their obligation. Where producers have
delivered almost all the quantities required by the expiry
of the period for delivery and have only to make some
minor adjustments, the penalty imposed should not be
out of proportion to the infringement committed. Such
producers should therefore be deemed to have fulfilled
their obligations within the time limits, provided they
deliver the quantities outstanding in due course.

(64)

In order to ensure that the results obtained by applying
the analytical methods referred to in Regulation (EC)
No 1493/1999 are comparable, the terms relating to the
repeatability and reproducibility of results obtained
using these methods should be defined.

(65) The buying-in price of wine deliveries should apply ex
distiller’s premises. In certain cases, transport is provided
by the distiller for practical reasons. In order not to
the
disturb this practice, which is often necessary,
transport costs should be deducted from the buying-in
price in such cases.

(66) The obligation to distil represents a considerable con-
straint for isolated producers who make only a small
quantity of wine. The costs such producers would incur
in transporting their grape marc and wine lees for
distillation would be out of all proportion to the return
which they could hope to obtain on the alcohol distilled
from them. They should therefore be permitted not to
make delivery.

(60) Distillation under Articles 27 and 28 of Regulation (EC)
No 1493/1999 plays a vital role in achieving balance on
the market in table wine and indirectly helps to adjust
wine-growing potential to requirements. Compulsory
distillation must therefore be enforced very strictly and
all persons subject to the obligation to distil must

(67)

For that part of their wine production actually delivered
for distillation under Article 28 of Regulation (EC)
No 1493/1999, producers should be required to deliver
only by-products of wine-making for distillation under
Article 27 of that Regulation.

L 194/50

EN

Official Journal of the European Communities

31.7.2000

(68) The obligation to distil by-products is a disproportionate
constraint for some producers of small quantities in
certain wine-growing areas. At the request of their
Member State, such producers should be allowed to
have their by-products withdrawn under supervision
instead of delivering them for distillation.

(69) Producers who deliver their marc for the manufacture of
oenocyanin generally supply unfermented grape marc.
The process by which oenocyanin is extracted from such
marc makes the marc unsuitable for fermentation and
distillation thereafter. Those producers should therefore
be exempted from the obligation to distil in proportion
to the quantity of grape marc they supply for such
manufacture.

within time limits to be laid down. Some proportional
allowance should be made for distillers who, although
they have met their principal obligations, are late in
furnishing proof thereof.

(75) When fixing the price to be paid by the intervention
agencies for the products delivered to them, account
should be taken of the average cost of transporting and
distilling the products concerned.

(76) A single standard price should be fixed for products
delivered to intervention agencies in connection with
distillation under Article 27 of Regulation (EC)
irrespective of the origin of the raw
No 1493/1999,
materials.

(70) When wine delivered for distillation is used to manufac-
ture wine vinegar, the volume of alcohol delivered to
intervention agencies is likely to be reduced. Producers
should therefore be released from their obligation to
distil where they deliver to the vinegar industry the wine
which would otherwise be necessary to make up the
quantity for compulsory distillation.

(77)

(71) Where the by-products of wine-making are withdrawn
under supervision under Article 27(7) and (8) of Regu-
lation (EC) No 1493/1999, all such by-products must
have been withdrawn by the end of the wine year in
which they were produced. To this end, an appropriate
monitoring system is needed, which will not result in
disproportionately high administrative costs, particularly
in Member States whose wine production is very low.

(72) Administration of the proof that marc, wine lees and
wine have been delivered to a distiller should distinguish
between whether the distiller is established in the same
Member State as the producer or in another Member
State.

(73) Under Article 27(11) and Article 28(5) of Regulation
(EC) No 1493/1999, distillers may opt either to receive
aid for the product to be distilled or to deliver the
product obtained by distillation to the intervention
agency. The amount of aid should be fixed on the basis
of the market price for the various products which may
be obtained by distillation.

In some regions of the Community, the relation between
the quantities of marc and those of wine and wine lees
is such that the average distillation costs differ from
those used to calculate the standard price. This situation
makes it, or can make it, economically impossible in
some of these regions to achieve the objective sought
through the compulsory distillation of the by-products
of wine-making. Prices differentiated according to the
raw material of the product obtained by distillation
should therefore be fixed at
the same time as the
standard price, while leaving it to the Member States to
decide whether such differentiated prices should be
applied in regions where application of the standard
price would lead to the difficulties referred to above.

(78) Recourse to this option must not increase the expendi-
ture incurred by the intervention agency and, hence, by
the EAGGF. The prices differentiated according to the
origin of the alcohol should therefore be correlated with
the standard price in such a way that the weighted
average of the former does not exceed the standard
price.

(79)

In the absence of an organised Community market in
ethyl alcohol, the intervention agencies responsible for
marketing the alcohol which they are obliged to take
over following distillation under Articles 27 and 28 of
Regulation (EC) No 1493/1999 must resell it at less than
the buying-in price. The difference between the buying-
in price and the selling price for such alcohol should be
borne, at a standard rate, by the European Agricultural
Guidance and Guarantee Fund (EAGGF) Guarantee Sec-
tion.

(74)

To qualify for the aid, the parties concerned must
submit an application together with certain supporting
documents. The type and number of documents required
must reflect the differences between wine and wine lees
on the one hand and grape marc on the other. To ensure
that the system operates uniformly in all Member States,
applications should be lodged and aid paid to distillers

(80) Article 29 of Regulation (EC) No 1493/1999 provides
for distillation to support the wine market and, as a
consequence, to facilitate the continuation of supplies of
wine distillate to parts of the potable alcohol sector. To
take end-of-the-year surpluses into account, the measure
should come into effect from 1 September each market-
ing year.

31.7.2000

EN

Official Journal of the European Communities

L 194/51

(81) Since the Commission is responsible for organising the
sale of certain wine alcohols, it needs more detailed
knowledge of the transactions carried out on the alcohol
market. The information that the Member States send the
Commission about alcohol from compulsory distillation
should therefore be extended to cover alcohol from
voluntary distillation held by the intervention agencies.

(92)

In the case provided for in Article 32 of Regulation (EC)
No 1493/1999, for some types of distillation the buying-
in price for wine should be reduced where producers
have increased the alcoholic strength by adding sucrose
or concentrated grape must for which they have either
received or applied for aid under Article 34 of that
Regulation.

(82) The required characteristics of products that may be
delivered for distillation should be specified in greater
detail.

(93)

(83) Products entering distilleries

should be physically
checked using procedures that ensure adequate represen-
tativeness.

(84) The consequences to be incurred by producers who fail
to comply with their obligations must be specified.
However, the Commission should adopt rules on the
entitlement to aid of distillers who fail to comply with
certain administrative time limits, in particular to take
account of the proportionality principle.

(85) Rules are needed to cover cases of force majeure which

may prevent distillation from taking place as planned.

(86) To ensure that distillation operations are adequately
supervised, distillers should be subject to a system of
approval.

(87) To take account of the actual situation on the market in
wine for distillation, both distillers and makers of
fortified wine should be allowed to fortify such wine for
distillation and the overall arrangements should be
adjusted accordingly.

(88) Member States should be able to restrict the places at
which wine may be fortified for distillation so as to
ensure the most appropriate form of supervision.

(89) Detailed rules are needed for payment of the buying-in
price for the wine, payment of aid to makers of fortified
wine, payment of the aid in advance, and the lodging
and release of securities.

(90) Since the addition of an indicator to wine for distillation
is an effective method of supervision,
it should be
stipulated that the presence of such an indicator may
not prevent free movement of such wine or of products
obtained therefrom.

(91) To take account of the way in which products are
transported to distilleries in some Member States, par-
ticularly where small quantities are involved, Member
States should be authorised to allow them to be trans-
ported in bulk.

It is very difficult to link the increase in alcoholic
strength obtained by each producer to the wine delivered
for distillation. Determining exactly the economic advan-
tage accruing to each producer would therefore require
an excessive amount of administrative work liable to
delay payment of the aid and affect the whole inter-
vention system. The buying-in price should therefore be
reduced on the basis of the average increase in the
natural alcoholic strength in each wine-growing zone.
To avoid the excessive amount of administrative work
needed to verify the increase in alcoholic strength
for each producer, the buying-in price for such wine
delivered for distillation should be reduced by a fixed
amount for each zone or zone division.

(94)

It is only fair that producers should receive the full price
if they have not increased the alcoholic strength of any
part of their table wine by adding either sucrose or
concentrated grape must for which they have received
aid under Article 34 of Regulation (EC) No 1493/1999.
Moreover, producers who have increased the alcoholic
strength of less of their production than they deliver for
distillation should be paid the full price for the difference
between the quantity enriched and the quantity deliv-
ered.

(95) The aid for the product obtained by distillation and the
price of the products taken over by the intervention
agency in connection with distillation under Article 28
of Regulation (EC) No 1493/1999 must be adjusted to
take account of the reduction in the buying-in price for
the wine.

(96) One feature of the Community market for alcohol is the
existence of stocks resulting from intervention under
(EC)
28
Articles
No 1493/1999 (1).

of Regulation

and 30

27,

(97) Specific detailed rules are needed for such tendering
procedures to ensure that all purchasers are treated
equally.

(98) These stocks of alcohol may be disposed of by three
different types of tendering procedure, depending on the
use and destination for which the alcohol is intended
and the quantities of alcohol at 100 % vol. to be disposed
of.

(1) Recitals 98 to 124: see the recitals of Regulation (EEC) No 377/93.

L 194/52

EN

Official Journal of the European Communities

31.7.2000

(99) Since the aim of tendering procedures is to obtain the
most favourable price, where the Commission decides
to sell following a tendering procedure the sale must be
awarded to the tenderer offering the highest price. Rules
are also needed for cases where several tenders for the
same lot offer the same price.

(107) Regular tendering procedures should be held for export
of the alcohol awarded to the countries of the Caribbean
area for final use in the fuel sector so as to give these
countries greater continuity of supply. Experience shows
that this outlet is most unlikely to disrupt the market
and affords a major market opportunity.

(100) Tenders for up to 5 000 hectolitres should be admissible,
on certain conditions, so that new uses devised for
alcohol can be tested at intermediate industrial scale,
thereby helping to develop outlets in the longer term for
significant quantities of Community alcohol without
disrupting the market in spirit drinks.

(108) The size of the lots put up for sale by tender for export
to the Caribbean countries should be linked to normal
sea transport capacity, thereby reducing the cost to the
traders concerned of providing performance guarantees.
The time limits laid down for removing the alcohol
awarded should be adjusted accordingly.

(101) It is necessary to determine which forms of processing
into goods exported under inward processing arrange-
ments may be considered equivalent to real industrial
uses.

(102) In order to ensure that alcohol sold under such tendering
procedures is actually used for purposes not likely to
disrupt the market in alcohol, tenders must give a precise
indication of the intended use.

(103) Tenderers should be allowed to submit only one tender
per type of alcohol, type of end use and tendering
procedure. The legal consequences for tenderers who
submit more than one tender should also be specified.

(104) In order not to affect competition with products which
the alcohol may replace, the Commission should be free
to award no quantities on the basis of tenders received.

(105) So that sales can be awarded in response to the
greatest possible number of tenders submitted where
the proposed prices are deemed satisfactory and the
proposed end uses are suitable for developing new
industrial outlets for the product, it should be possible,
within certain limits, for tenderers who have submitted
such tenders to be awarded a replacement lot. Such a
procedure is likely to increase sales of Community
alcohol and thus reduce stocks which must otherwise be
managed at a high cost to the budget.

(109) Public sales of wine alcohol for use as fuel within the
Community should be subject to certain conditions so
as to provide undertakings with supplies to some extent
and take account of the cost of the investment in
processing plant needed for that particular use, without,
however, preventing the alcohol put up for sale from
being physically moved.

(110) It should be specified that public sales of this type should
involve several lots of alcohol where large quantities are
set aside for such public sales and that the alcohol in the
vats concerned can no longer be physically moved until
a removal order has been issued for it.

(111) In the case of sale by tender or public sale for use as fuel,
since physical removal and processing of the alcohol
must take place over a period of several years, the price
per hectolitre of alcohol at 100 % vol. offered by
the successful tenderer should be adjusted every three
indicated in the
months by applying a coefficient
relevant notice of invitation to tender, so that the prices
to be paid for the alcohol awarded more closely follow
the fluctuation of fuel prices on international markets.

(112) In view of the size of some of the vats in which part of
the alcohol obtained by compulsory distillation is stored
and the considerable length of time that some of this
alcohol remains in storage, it is impossible in practice to
know exactly what quantity of marketable alcohol is
contained in certain storage vats.

(106) Irrespective of the margin of tolerance on the overall
quantity of alcohol put up for sale by tender, the price
to be paid before a removal order is issued should be
calculated on the basis of a quantity of alcohol at 100 %
vol., determined to the nearest hectolitre.

(113) This being the case, any tendering procedure ultimately
found to relate to a quantity of marketed alcohol
amounting to between 99 and 101 % of the quantity of
alcohol originally put up for sale should be deemed to
have been executed.

31.7.2000

EN

Official Journal of the European Communities

L 194/53

(114) Tenderers’ statements waiving all claims in respect of
the quality and characteristics of the alcohol awarded to
them should not extend to hidden defects that by their
nature could not be detected by them beforehand and
that make the alcohol unfit for the use intended.

(115) Alcohol reserved for certain sales by tender should be
denatured where appropriate to prevent it from being
used for other purposes. The quantity of alcohol awarded
in such cases should be denatured by adding petrol.

(116) A system of securities should be introduced to ensure
that tendering procedures are properly conducted and
that the alcohol is in fact used for the purpose specified
in the relevant invitation to tender. Securities should be
set at a level which will prevent any utilisation contrary
to the objectives of the tendering procedure that might
cause a disturbance on the market in alcohol and spirit
drinks produced in the Community in accordance with
Article 31 of Regulation (EC) No 1493/1999. The rules
laid down in Commission Regulation (EEC) No 2220/85
of 22 July 1985 laying down common detailed rules for
the application of the system of securities for agricultural
products, which also covers wine, should be taken into
account. The primary requirements of the obligations
subject to a security should therefore be specified.

the performance guarantee covering the cost price of
the alcohol delivered to the intervention agency in
connection with distillation under Articles 27, 28 and
30 of Regulation (EC) No 1493/1999. Part of
the
performance guarantee should be released only after the
successful tenderer has produced evidence concerning
all the losses relating to the tender concerned so that the
amount of guarantee available is sufficient to penalise
such illegal losses of alcohol.

(120) Some end uses intended for alcohol covered by a
tendering procedure require all or some of the alcohol
awarded to be processed into rectified alcohol. Some of
the intended uses for the alcohol sold require prior
rectification or dehydration that also produces foul-
tasting alcohol unsuitable for the uses initially intended
for these tendering procedures. This being the case, the
conditions on which performance guarantees can be
released should be amended.

(121) The checks made to verify whether the alcohol is used
for the purposes specified in the relevant invitations to
tender should include at least checks equivalent to those
applied to the monitoring of Community-produced
alcohol. For the purposes of checks on certain uses or
destinations, an international surveillance firm may be
used to verify whether the contract awarded is duly
fulfilled. In line with the strengthening and development
of
the internal market, physical checks should be
conducted at the place of departure or destination of
alcohol transport operations.

(117) Losses may occur when alcohol is being transported by
land and sea and processed prior to final use. Account
should be taken of the relevant technical standards to
evaluate changes in the volume of alcohol recorded on
loading and unloading and a specific tolerance limit
should be set for each category of loss.

(122) The measures provided for in this Regulation are in
accordance with the opinion of the Management Com-
mittee for Wine,

HAS ADOPTED THIS REGULATION:

(118) An overall tolerance limit should be set for losses of
alcohol due to multiple land and sea transport operations
in connection with a tendering procedure for the export
of alcohol to be processed in the third countries covered
by this Regulation. A higher tolerance limit should also
be set for alcohol losses due to processing operations
in such third countries by comparison with similar
operations in the Community to take account of oper-
ational, climatic and other conditions and the fact that
some equipment is less efficient in some third countries.

Article 1

Purpose

Title III of Regulation (EC) No 1493/1999 and this Regulation
lay down the Community rules applicable to market mechan-
isms in the wine sector.

(119) Penalties should be applied for losses exceeding the set
tolerance limits by withholding a standard amount of

This Regulation lays down the detailed rules for applying
Regulation (EC) No 1493/1999 in particular regarding aid for
the use of grapes, grape must and concentrated grape must
(Title I), private storage aid (Title II) and distillation (Title III).

L 194/54

EN

Official Journal of the European Communities

31.7.2000

Article 2

General provisions

At the time it is used to manufacture comestible products,
comply with Council Directive

juice must

2.
the grape
93/77/EEC.

1. Member States may rule that operators starting up their
activities for the first time during a given wine year are entitled
to aid under this Regulation only for products resulting from
the processing of their own grape production.

2. Without prejudice to Article 30 of
this Regulation,
operators who were subject to the obligations laid down in
Articles 27 and 28 of Regulation (EC) No 1493/1999 during
the previous wine year shall be eligible for the measures
provided for in this Regulation only where they provide
evidence that they fulfilled their obligations regarding delivery
or withdrawal under supervision during the wine year con-
cerned.

Article 4

Amount of the aid

Aid for the use of grapes, grape must and concentrated grape
must under Article 35 of Regulation (EC) No 1493/1999 shall
be fixed at the following rates:

(a) Grapes (per 100 kilograms): EUR 4.952

(b) Grape must (per hectolitre): EUR 6.193

(c) Concentrated grape must (per hectolitre): EUR 21.655

TITLE I

Article 5

AID FOR THE USE OF GRAPES, GRAPE MUST, CON-
CENTRATED GRAPE MUST OR RECTIFIED CONCEN-
TRATED GRAPE MUST

CHAPTER I

MANUFACTURE OF GRAPE JUICE

Article 3

Purpose of the aid

This Chapter lays down the detailed rules for applying
1.
the aid scheme introduced by Article 35(1)(a) of Regulation
(EC) No 1493/1999. The aid shall be granted to processors:

(a) who are themselves producers or groups of producers
and who process or have processed on their behalf
the grapes they have harvested, and grape must and
concentrated grape must obtained entirely from their
own grape crop, into grape juice or other comestible
products manufactured from such grape juice, or

(b) who purchase from producers or groups of producers,
either directly or indirectly, grapes produced in the
Community and grape must or concentrated grape must,
for the purpose of processing them into grape juice or
other comestible products manufactured from such grape
juice.

Technical requirements for processing

The products referred to in Article 4(1) of this Regulation must
be of sound and fair merchantable quality and suitable for
processing into grape juice. The grape must and the must
obtained from the grapes used must have a density at 20 °C of
between 1.055 and 1.100 grams per cubic centimetre.

Article 6

Administrative rules applicable to processors

Processors who undertake processing operations
1.
throughout the wine year and who wish to receive aid under
Article 35(1)(a) of Regulation (EC) No 1493/1999 shall submit
a schedule to the competent authority of the Member State in
which processing takes place before the beginning of the wine
year or, where they are manufacturing grape juice for the first
time, before beginning such manufacture. The schedule shall
include at least the following information:

(a)

their name or trade name and address;

(b)

the following technical information:

(i)

(ii)

the type of raw materials (grapes, grape must or
concentrated grape must),

the place where the grape must and concentrated
grape must intended for processing is stored,

The raw materials used must have been obtained exclusively
from grapes produced in the Community.

(iii)

the place where processing is to be carried out.

31.7.2000

EN

Official Journal of the European Communities

L 194/55

The Member States may require quarterly statements and
further information for inspection purposes.

(b)

the quantities and density of raw materials used each day,

Processors who carry out processing operations on
2.
specified dates
aid under
and who wish to receive
Article 35(1)(a) of Regulation (EC) No 1493/1999 shall submit
a written statement to the competent authority, at least three
working days before the beginning of
those operations,
containing in particular:

(a)

(b)

the information required under (a) and (b) in paragraph 1
of this Article,

the wine-growing zone in which the raw materials were
obtained, in accordance with the classification in Annex
III to Regulation (EC) No 1493/1999,

(c)

the following technical information:

(i)

(ii)

the quantity (in 100 kilograms of grapes or hecto-
litres of grape must or concentrated grape must),

the density, in the case of grape must and concen-
trated grape must,

(iii)

the date of commencement and the probable dur-
ation of processing operations.

The statement shall relate to a minimum quantity of:

(a) 1 300 kg for grapes,

(b) 10 hectolitres for grape must,

(c)

3 hectolitres for concentrated must.

The Member States may require further information with a
view to identifying the product.

3.
Processors who use no more than 50 tonnes of grapes,
800 hl of grape must or 150 hl of concentrated grape must
each wine year to produce grape juice shall submit a statement
to the competent authorities at the beginning of the wine year
containing the information required under (a) and (b) of
paragraph 1 of this Article. They shall not be required to
submit the other statements referred to in paragraphs 1 and 2
of this Article.

4.
The statements and schedules referred to in paragraphs
1, 2 and 3 shall be submitted in at least two copies, at least
one of which shall be returned, duly stamped by the competent
authority, to the processor.

Processors shall keep stock accounts showing in particu-
5.
lar the following information taken from accompanying
documents or the registers referred to in Article 70 of Regu-
lation (EC) No 1493/1999:

(a)

the quantities, density and wine-growing zone of origin
of the raw materials entering their premises each day and,
where applicable, the name and address of the seller(s),

(c)

(d)

the quantities of grape juice obtained each day after
processing,

the quantities of grape juice leaving their premises each
day and the name and address of the consignee(s).

Where processors themselves carry out one of the operations
referred to in Article 7(1) of this Regulation in their juice-
manufacturing premises, possibly mixing the juice with other
products, the information referred to in (d) in the preceding
subparagraph shall not be required. In such cases, the stock
accounts shall show in addition the quantities of grape juice
packaged each day.

6.
The supporting documents relating to the stock accounts
referred to in paragraph 5 shall be made available to the
inspection authorities on the occasion of any checks.

Article 7

Administrative rules applicable to users

1.
For the purposes of this Article, ‘user’ means all operators
other than grape-juice processors who carry out any of
the following operations: bottling, packaging or presenting,
preparing comestible products by mixing grape juices with
other products or storing with a view to sale to one or more
undertakings responsible for carrying out
the operations
referred to above.

themselves carry out

2. Where processors do not
the
operations referred to in paragraph 1, they shall indicate in
the accompanying document referred to in Article 70(1) of
Regulation (EC) No 1493/1999 whether they have already
submitted or intend to submit an application for aid to
manufacture grape juice under this Regulation.

3. Where processors dispatch the grape juice to a user
within the Community intending to store it prior to bottling
or use in the manufacture of other comestible products,

(a)

(b)

send the document
the storage undertaking shall
accompanying the grape juice to the competent authority
at the place of unloading not later than 15 days after
receiving the product,

the competent authority shall stamp the accompanying
document referred to in point (a) only after verifying that
a quantity at least equivalent to that of the consignment
concerned has been dispatched, with an appropriate
accompanying document, to a bottler or an undertaking
manufacturing comestible products covered by this Regu-
lation, and has been received by that user.

L 194/56

EN

Official Journal of the European Communities

31.7.2000

If the requirements set out in point (b) have been fulfilled and
once the accompanying document has been received, the
competent authority at the place of unloading shall return the
copy of the accompanying document referred to in point (a),
duly stamped, to the processor/consignor of the grape juice
concerned.

4. Where processors dispatch the grape juice to a user
within the Community intending to bottle it, the latter shall
forward a copy of
to the
competent authority of the place of unloading not later than
15 days after receiving the product.

the accompanying document

Not
the
later than 30 days after receiving the copy of
accompanying document, the competent authority at the
place of unloading shall return it, duly stamped, to the
processor/consignor of the grape juice concerned.

However, where processors or users intending to bottle the
juice so request,
the competent authority or authorised
department at the place of unloading shall return the copy of
the accompanying document, duly stamped, direct to them.

5. Where processors dispatch the grape juice to a user
within the Community manufacturing other comestible prod-
ucts made with this juice,

(a)

(b)

the manufacturer of these products shall send the docu-
ment accompanying the grape juice to the competent
authority not
later than 15 days after receiving the
product,

the competent authority shall stamp the accompanying
document referred to in point (a) only if it has sufficient
assurance that the grape juice is actually intended for the
manufacture of the comestible products concerned.

Provided such assurance exists, the competent authority at the
place of unloading shall return the copy of the accompanying
document referred to in this paragraph, duly stamped, to the
processor/consignor of the grape juice concerned not later
than 30 days after receiving it.

In the cases covered by this Article, users shall keep stock

6.
accounts showing in particular:

(a)

(b)

(c)

the quantities of unpackaged grape juice entering their
premises each day and the name and address of the
consignor/processor,

the quantities of unpackaged grape juice leaving their
premises each day and the name and address of the
consignee(s).

the quantities of grape juice and/or grape juice mixed
with other products packaged each day, indicating the
quantity of grape juice used to manufacture the products
concerned.

7.
The supporting documents relating to the stock accounts
referred to in paragraph 7 of this Article shall be made
available to the inspection authorities on the occasion of any
checks.

Article 8

Aid applications

In order to qualify for the aid, processors covered by
1.
Article 6(1) of this Regulation shall submit one or more
applications for aid to the competent authority, no more than
six months after the end of the wine year, together with:

(a)

(b)

a copy of the annual or quarterly statements in their
possession or a summary thereof,

a copy or summary of the stock accounts referred to in
Article 6(5) of this Regulation. The Member States may
require such copies and summaries to be stamped by an
authority responsible for inspections.

In order to qualify for the aid, processors covered by
2.
Article 6(2) of this Regulation shall submit an application for
aid to the competent authority no more than six months after
completing the processing operations, together with:

(a)

a copy of the statement in their possession,

(b)

(c)

a copy or summary of the stock accounts referred to in
Article 6(5). The Member States may require such copies
and summaries to be stamped by an authority responsible
for inspections,

a copy of the document accompanying the transport of
the raw materials to the processor’s premises, or a
summary thereof. The Member States may require such
copies and summaries to be stamped by an authority
responsible for inspections.

Aid applications shall state the quantity of raw materials
actually processed and the day on which the processing
operations were completed.

In addition, within six months of the date on which the
3.
stamp provided for in Article 7 of this Regulation is affixed or
the date of export of the grape juice, the processors concerned
shall submit, as the case may be:

(a)

(b)

the copy of the accompanying document stamped by the
competent authority provided for in Article 7,

a copy of the accompanying document bearing a customs
stamp certifying export.

4.
All the documents required in order to qualify for the
aid must be submitted no more than six months after
submission of the aid application. If they are submitted during
the six months following that deadline, the aid shall be reduced
by 30 %. Beyond that date, no aid shall be paid.

31.7.2000

EN

Official Journal of the European Communities

L 194/57

Article 9

Conditions for granting the aid

1.
Except in cases of force majeure, the aid shall be due only
for the quantity of raw materials actually used, not exceeding
the following ratio between the product used and the grape
juice obtained:

(a) 1.3 for grapes, in 100 kg per hectolitre,

(b) 1.05 for must, in hectolitres per hectolitre,

(c)

0.30 for concentrated must, in hectolitres per hectolitre.

Where the product obtained is concentrated grape juice, those
ratios shall be multiplied by 5.

Except in cases of force majeure, if processors fail to fulfil
2.
one of the obligations devolving on them under this Regulation
other than the obligation to process the raw materials covered
by their aid applications into grape juice, the aid to be paid
fixed by the competent
shall be reduced by an amount
authority depending on the seriousness of the infringement.

3.
In cases of force majeure, the competent authority shall
determine the measures which it considers necessary having
regard to the circumstances invoked.

Article 10

Payment of the aid

The competent authority shall pay the aid for the quantity of
raw materials actually processed no more than three months
after receiving all the supporting documents referred to in
Article 8, except:

— in cases of force majeure,

— where administrative inquiries have been initiated con-
cerning entitlement to the aid. In such cases, payment
shall be made only when the applicant has been recog-
nised as entitled to the aid.

Article 11

Advance payments

Processors may request that an amount equal to the aid
1.
calculated for the raw materials be paid to them in advance
provided that they provide evidence that the raw materials
have entered their premises and they have lodged a security in
favour of the intervention agency. That security shall be equal
to 120 % of the said amount. In such cases, the supporting
documents referred to in Article 8 need not be submitted at
this stage.

Where processors make several applications for aid under
this Regulation, the competent authority or the department
authorised for the purpose may allow them to lodge a single
security. In such cases, the security shall correspond to 120 %
of all the amounts calculated in accordance with the first
subparagraph.

2.
Advances as referred to in paragraph 1 shall be paid
within three months of the presentation of proof that the
security has been lodged. However, no advances shall be paid
before 1 January of the wine year concerned.

3.
After the competent authority or authorised department
has checked all the documents referred to in Article 8 of this
Regulation, the security referred to in paragraph 1 shall be
released in whole or in part, as the case may be, in accordance
with the procedure laid down in Article 19 of Commission
Regulation (EEC) No 2220/85. Except in cases of force majeure,
the security shall be forfeit where the quantity used is less than
95 % of the quantity for which the advance was paid.

Where the quantity used is less than 95 % of the quantity for
which the advance was paid, the processor shall continue to
be entitled to aid for the quantity actually processed.

Where the quantity used is between 95 and 99,9 % of the
quantity for which the advance was paid, the security shall be
forfeit only for the quantity not processed during the wine
year.

CHAPTER II

AID FOR MUST USED TO INCREASE THE ALCOHOLIC
STRENGTH OF WINE PRODUCTS

Article 12

Purpose of the aid

1.
Aid as referred to in Article 34(1) of Regulation (EC)
No 1493/1999 shall be granted to producers of table wines or
quality wines produced in specified regions (quality wines psr)
who use concentrated grape must and rectified concentrated
grape must produced in the Community to increase the natural
alcoholic strength by volume of the products referred to in
Annex V(C) to Regulation (EC) No 1493/1999.

2.
Notwithstanding paragraph 1, in the case of quantities
of ten hectolitres or less per wine year, the Member States may
decide to grant the aid to producers of concentrated grape must
and rectified concentrated grape must when the purchasers are
individual winegrowers using the product exclusively for
enriching their own production.

L 194/58

EN

Official Journal of the European Communities

31.7.2000

The Member States shall adopt detailed rules for applying this
measure and notify the Commission thereof.

Article 15

Conditions for granting the aid

Article 13

Amount of the aid

1.
The amount of the aid referred to in Article 34(1) of
Regulation (EC) No 1493/1999 shall be fixed as follows, by
potential alcoholic strength by volume (% vol.) per hectolitre,
for the following categories of products:

(a) Concentrated grape must from grapes harvested:

1.
Except in cases of force majeure, no aid shall be payable if
the producer does not carry out the operation referred to in
Article 34(1) of Regulation (EC) No 1493/1999 in accordance
with Annex V(C) and (D) to that Regulation.

2.
Except in cases of force majeure, where producers fail to
comply with any of the requirements of this Regulation other
than that referred to in paragraph 1, the aid payable shall be
reduced by an amount to be fixed by the competent authority
depending on the seriousness of the infringement.

— in wine-growing zones C III (a) and C III EUR 1.699/

% vol./hl

3.
In cases of force majeure, the competent authority shall
determine the measures which it deems necessary in view of
the circumstances invoked.

— elsewhere EUR 1.466/% vol./hl

(b) Rectified concentrated grape must from grapes harvested:

— in wine-growing zones C III (a) and C III EUR 2.206/

% vol./hl

— elsewhere EUR 1.955/% vol./hl

However, for wine years 2000/01, 2001/2002 and 2002/03
for rectified concentrated musts obtained from grapes harvest-
ed elsewhere than in wine-growing zones C III (a) and C III (b)
and produced in establishments that began production of
rectified concentrated musts before 1 January 1986 in Spain
or before 30 June 1982 elsewhere, the amount shall be that
laid down for products of wine-growing zones C III.

2.
The potential alcoholic strength of the products listed in
paragraph 1 shall be determined by applying the figures in the
table of equivalence in Annex I hereto to the readings at 20 °C
from a refractometer used in accordance with the method
laid down in Annex XVIII to Regulation (EC) No ..../2000
establishing a Community code of oenological practices and
processes.

Article 14

Aid applications

Producers wishing to receive the aid provided for
in
Article 34(1) of Regulation (EC) No 1493/1999 shall submit
an application to the competent intervention agency covering
all operations to increase alcoholic strength to which that
Article applies. Applications must reach the intervention
agency within two months of the date on which the last
operation was carried out.

Applications shall be accompanied by the documents relating
to the operations for which aid is requested.

Article 16

Payment of the aid

The intervention agency shall pay the aid to producers before
31 August following the end of the wine year concerned,
except:

(a)

in cases of force majeure,

(b) where administrative inquiries have been initiated con-
cerning entitlement to the aid. In such cases, payment
shall be made only when the applicant has been recog-
nised as entitled to the aid.

Article 17

Advance payments

1.
From 1 January of the wine year concerned, producers
may request that an amount equal to the aid calculated for the
products used to increase alcoholic strength be paid to them
in advance provided that they have lodged a security in favour
of the intervention agency. The security shall be equal to
120 % of the aid applied for.

Applications shall be accompanied by such of the documents
referred to in the second paragraph of Article 14 as are
available. The remaining documents shall be submitted before
the end of the wine year.

2.
The intervention agency shall pay advances within three
months of presentation of proof that the security has been
lodged.

3.
After the competent authority or the authorised depart-
ment has checked all the documents, and taking account of
the amount to be paid, the security shall be released in whole
or in part, as the case may be, in accordance with the procedure
laid down in Article 19 of Commission Regulation (EEC)
No 2220/85.

31.7.2000

EN

Official Journal of the European Communities

L 194/59

CHAPTER III

Aid applications shall cover a minimum quantity of

2.
50 kilograms of concentrated grape must.

AID FOR THE MANUFACTURE OF CERTAIN PRODUCTS IN
THE UNITED KINGDOM AND IN IRELAND

Article 18

Purpose and amount of the aid

3.

(a)

(b)

Aid applications shall show, in particular:

the name or business name and the address of the
manufacturer or operator;

the wine-growing zone from which the concentrated
grape must originates, as defined in Annex III to Regu-
lation (EC) No 1493/1999;

(c)

the following technical information:

Aid as referred to in Article 35(1)(b) and (c) of Regulation

1.
(EC) No 1493/1999 shall be granted:

(i)

the place of storage,

(a)

(b)

to manufacturers who use concentrated grape must
obtained entirely from grapes produced within wine-
growing zones C III (a) and C III (b) for the manufacture
in the United Kingdom and Ireland of products falling
within CN code 2206 00 for which the use of a composite
name including the word ‘wine’ may be allowed by these
Member States under Annex VII(C)(3) to Regulation (EC)
No 1493/1999, hereinafter called ‘manufacturers’. The
amount of the aid shall be EUR 0.2379 per kilogram;

to operators who use concentrated grape must obtained
entirely from grapes produced in the Community as the
main component in a set of products which they market
in the United Kingdom and Ireland, with clear instructions
enabling the consumer to obtain therefrom a beverage in
imitation of wine, hereinafter called ‘operators’. The
amount of the aid shall be EUR 0.3103 per kilogram.

2.
To be eligible for aid, concentrated grape must shall be
of sound, fair and merchantable quality and suitable for use
for the purposes referred to in Article 35(1)(b) or (c) of
Regulation (EC) No 1493/1999.

(ii)

the quantity (in kilograms or, if the concentrated
grape must referred to in Article 35(1)(c) of Regu-
lation (EC) No 1493/1999 is put up in containers
with contents not exceeding 5 kilograms, the num-
ber of containers),

(iii)

the density,

(iv)

the prices paid,

(v)

the place where the operations referred to in
Article 35(1)(b)
(EC)
(c)
No 1493/1999 are carried out.

of Regulation

and

The Member States may require additional information for the
purpose of identifying the concentrated grape must.

4.
A copy of the accompanying document(s) covering
transport of the concentrated grape must to the manufacturer’s
or operator’s premises, drawn up by the competent authority
of the Member State, shall be attached to the aid application.

Column 8 of the document shall indicate the wine-growing
zone where the fresh grapes used were harvested.

Article 19

Aid applications

Article 20

Conditions for granting the aid

1. Manufacturers and operators wishing to receive aid as
provided for in Article 35(1)(b) or (c) of Regulation (EC)
No 1493/1999 shall submit a written application, between
1 August and 31 July of the wine year concerned, to the
competent authority of
the Member State in which the
concentrated grape must is used.

Applications must be made at least seven working days before
the manufacturing operations begin.

However, the period of seven working days may be shortened
where the competent authority so authorises in writing.

1. Manufacturers and operators shall be bound to use the
full quantity of concentrated grape must covered by an aid
application for the purposes referred to in Article 35(1)(b) and
(c) of Regulation (EC) No 1493/1999. A shortfall of 10 % of
the quantity of concentrated grape must stated in the appli-
cation shall be tolerated.

2. Manufacturers and operators shall keep stock accounts
showing in particular:

(a)

the consignments of concentrated grape must purchased
and brought each day into their premises, together with
the information indicated in Article 19(2)(b) and (c) of
this Regulation and the name and address of the seller(s),

L 194/60

EN

Official Journal of the European Communities

31.7.2000

(b)

(c)

the quantities of concentrated grape must used each day
for the purposes referred to in Article 35(1)(b) and (c) of
Regulation (EC) No 1493/1999,

the consignments of finished products mentioned in
Article 35(1)(b) and (c) of Regulation (EC) No 1493/1999
produced and dispatched each day from their premises,
together with the name and address of the consignee(s).

3.
After the competent authority has received the infor-
mation referred to in Article 20(3) of this Regulation, and
taking account of the amount of aid to be paid, the security
referred to in paragraph 1 shall be released in whole or in part,
as the case may be,
in accordance with the procedure
laid down in Article 19 of Commission Regulation (EEC)
No 2220/85.

3. Manufacturers and operators shall inform the competent
authority in writing, within one month, of the date when all
the concentrated grape must covered by an aid application has
been used for the purposes referred to in Article 35(1)(b) and
(c) of Regulation (EC) No 1493/1999, allowing for the shortfall
provided for in paragraph 1 of this Article.

4.
Except in cases of force majeure, no aid shall be payable
where manufacturers or operators fail to fulfil the requirement
set out in paragraph 1 of this Article.

5.
Except in cases of force majeure, where manufacturers or
operators fail to comply with any of the requirements of this
Regulation other than that referred to in paragraph 1 of this
Article, the aid payable shall be reduced by an amount to be
fixed by the competent authority depending on the seriousness
of the infringement.

6.
In cases of force majeure, the competent authority shall
determine the measures which it deems necessary in view of
the circumstances invoked.

Article 21

Payment of the aid

The competent authority shall pay aid for the quantity of
concentrated grape must actually used not later than three
months after
receiving the information referred to in
Article 20(3) of this Regulation.

Article 22

Advance payments

1. Manufacturers and operators as referred to in Article 18
of this Regulation may apply for an amount equal to the aid
to be paid in advance provided they have lodged a security for
120 % of the said amount in favour of the competent authority.

2.
Advance payments as referred to in paragraph 1 shall be
paid within three months of presentation of proof that the
security has been lodged, provided that evidence is supplied
that the concentrated grape must has been paid for.

TITLE II

PRIVATE STORAGE AID

Article 23

Purpose

This Title lays down the detailed rules for applying the storage
aid scheme referred to in Chapter I of Title III of Regulation
(EC) No 1493/1999.

Article 24

Definitions

For the purposes of this Title, ‘products’ means grape must,
concentrated grape must, rectified concentrated grape must
and table wines, irrespective of the wine year in which they
were produced.

Article 25

Amount of the aid

Storage aid shall be payable throughout the Community at the
following standard rates per hectolitre per day:

(a)

EUR 0.01837 for grape must;

(b)

EUR 0.06152 for concentrated grape must;

(c)

EUR 0.06152 for rectified concentrated grape must;

(d)

EUR 0.01544 for table wines.

Article 26

Rules applicable to beneficiaries

Intervention agencies shall conclude private storage

1.
contracts only with producers.

31.7.2000

EN

Official Journal of the European Communities

L 194/61

For the purposes of this Title, ‘producer’ means any natural or
legal person or group of such persons which carries out, or
has carried out on their behalf, any of the following operations:

(a)

the processing of fresh grapes into grape must,

(b)

(c)

the processing of grape must into concentrated grape
must or rectified concentrated grape must,

the processing of fresh grapes, grape must or grape must
in fermentation into table wine.

The organisations referred to in Article 39 of Regulation (EC)
No 1493/1999 shall be treated as producers for the quantities
obtained by their members. The individual members delivering
wine covered by a private storage contract shall be responsible
for fulfilling the obligations referred to in Article 2 of this
Regulation.

2.

Producers may conclude contracts only for products:

— produced by them, or

— produced on their responsibility and which they own, or

— in the case of producer organisations as referred to in the
third subparagraph of paragraph 1, produced on the
responsibility of their members.

3.
The intervention agency of a Member State may conclude
contracts only for products stored on the territory of that
Member State.

4.
Products may not simultaneously be the subject of both
a private storage contract and the arrangements referred to in
Article 5(1) of Council Regulation (EEC) No 565/80.

Article 27

Characteristics of products eligible for aid

When contracts are concluded:

(a)

the grape musts concerned must have been obtained
exclusively from varieties classified as wine grapes in
accordance with Article 19
(EC)
No 1493/1999 and may not have a natural alcoholic
strength by volume lower than the minimum natural
alcoholic strength laid down for the wine-growing zone
in which they originate,

of Regulation

(b)

table wines:

(ii) must have a reducing sugar content not greater than
two grams per litre, except in the case of table wines
from Portugal, which must have a reducing sugar
content not greater than four grams per litre;

(iii) must display a satisfactory 24-hour exposure to air,

(iv) must be free of bad tastes.

(c) The radioactivity levels of the products referred to in
this Regulation may not exceed the
Article 24 of
maximum levels permitted under Community rules.
However, the level of radioactive contamination of prod-
ucts shall be monitored only if the situation so requires
and only during the period necessary.

Article 28

Quantities eligible for aid

The total quantity of products for which producers
1.
conclude storage contracts may not exceed the quantity stated
in their production declaration for the wine year concerned,
submitted in accordance with Article 18(1) of Regulation (EC)
No 1493/1999, plus any quantities they obtained after the
date on which their declaration was submitted and recorded in
the registers referred to in Article 70 of Regulation (EC)
No 1493/1999.

2.
Contracts shall cover a minimum quantity of 50 hecto-
litres in the case of table wine, 30 hectolitres in the case of
grape must and 10 hectolitres in the case of concentrated
grape must and rectified concentrated grape must.

Article 29

Conclusion of contracts

1.
Producers may conclude contracts provided they supply
the following information for each container in which the
product concerned is stored:

(a)

details enabling the product to be identified,

(b)

the following analysis data:

(i)

the colour,

(ii)

the sulphur dioxide content,

(i) must comply with the minimum quality require-
ments fixed in Annex II to this Regulation for the
category for which the contract is concluded;

(iii)

the absence of hybrids, in the case of red products, as
demonstrated by analysis for malvidol diglucoside.

L 194/62

EN

Official Journal of the European Communities

31.7.2000

For grape must, concentrated grape must and rectified concen-
trated grape must, the following information shall also be
provided:

(c)

the reading obtained at a temperature of 20 °C with a
refractometer used in accordance with the method
referred to in the Annex to Commission Regulation (EEC)
No 558/93. A disparity of 0.2 shall be tolerated when the
reading is checked by the authorities.

For table wine, the following analysis data shall also be
provided:

(c)

the type of product, classified as indicated in Article 25
of this Regulation,

(d)

the quantity,

(e)

the place of storage,

(f)

the first day of the storage period,

(g)

the amount of aid in euros.

For table wine, contracts shall also include:

(d)

the total alcoholic strength by volume,

(h)

a statement that the first racking has taken place,

(e)

the actual alcoholic strength by volume,

(i)

(f)

(g)

the total acidity, expressed in grams of tartaric acid per
litre or in milliequivalents per litre; however, Member
States may waive this requirement for white wines,

the volatile acid content, expressed in grams of acetic acid
per litre or in milliequivalents per litre; however, Member
States may waive this requirement for white wines,

a clause to the effect that the volume may be reduced by
a percentage to be determined by the Commission in
accordance with the procedure laid down in Article 75 of
Regulation (EC) No 1493/1999 should the total volume
covered by contracts significantly exceed the average
three wine years; such
volumes covered in the last
reduction may not reduce the quantities in storage below
the minimum levels referred to in Article 28(2). Where
this clause is applied, the full amount of the aid due for
the period prior to the reduction shall remain payable.

(h)

the reducing sugar content,

(i)

(j)

behaviour in air over 24 hours,

the absence of bad tastes.

The above analysis data shall be established by an official
laboratory as referred to in Article 72 of Regulation (EC)
No 1493/1999 within 30 days before the contract is con-
cluded.

The Member States may limit the number of contracts

2.
that a producer can sign each wine year.

Contracts for table wines may not be concluded before

3.
the date of the first racking of the wine concerned.

4.
Producers wishing to conclude storage contracts for table
wines shall, when submitting their applications, advise the
intervention agency of the total quantity of table wine they
have produced during the current wine year.

To that end, they shall submit a copy of the production
declaration(s) provided for in Article 18(2) of Regulation (EC)
No 1493/1999 and, where applicable, of the registers referred
to in Article 29 of
In cases where the
this Regulation.
declaration is not yet available, a provisional attestation may
be produced.

5. Without prejudice to Article 25(2) of Regulation (EC)
No 1493/1999, contracts shall contain at least:

(a)

the name and address of the producers concerned,

(b)

the name and address of the intervention agency,

The Member States may require further information with

6.
a view to identifying the product concerned.

Article 30

Derogation from Article 2 of this Regulation

The Member States may authorise the conclusion of contracts
before producers have supplied the evidence referred to in
Article 2 of this Regulation provided such contracts include a
statement by producers certifying that they have met the
obligations referred to in that Article or fulfil the requirement
referred to in Article 58 of Title III of this Regulation and that
they undertake to deliver the remaining quantities needed to
comply fully with their obligations within the time limit laid
down by the competent national authority.

The evidence referred to in the first paragraph shall be supplied
before 31 August of the wine year concerned.

Article 31

Beginning of the storage period

The first day of the storage period shall be the day

1.
following the date on which the contract is concluded.

However,

2.
if a contract relates to a storage period
beginning after the day following that on which it is concluded,
the first day of the storage period may not be later than
16 February.

31.7.2000

EN

Official Journal of the European Communities

L 194/63

Article 32

Article 34

End of the storage period

Detailed implementing rules relating to storage

Storage contracts for grape musts, concentrated grape
1.
musts and rectified concentrated grape musts shall expire
between 1 August and 30 November following the date of
conclusion.

2.
Storage contracts for table wines shall expire between
1 September and 30 November following the date of con-
clusion.

3.
To determine the expiry date, producers shall send the
intervention agency a statement specifying the last day of
validity of the contract. The Member States shall lay down the
requirements for presenting these statements.

In the absence of a statement, contracts shall expire on
30 November.

Producers who have not applied for an advance under
4.
Article 38 of this Regulation may sell the grape must or
concentrated grape must for exportation or manufacture of
grape juice from the first day of the fifth month of storage.

In such cases, producers shall inform the intervention agency
in accordance with paragraph 3.

The intervention agencies shall ensure that the products are
actually used for the purpose stated.

Article 33

Early termination of the contract at the request of the
producer

Producers who have not applied for an advance under
1.
Article 38 of this Regulation may terminate storage contracts
as of 1 June provided the Commission so authorises in the
light of market trends, information on stocks and harvest
forecasts.

covered

In addition, where the Commission decides to reduce the
2.
quantities
in accordance with
contracts
Article 29(5)(i) of this Regulation, producers may unilaterally
terminate their contract wholly or in part in the month
following the publication of that decision.

by

Throughout the storage period and until the last day of

1.
validity of the contract, products in storage:

(a) must comply with the relevant definitions in Annex I to

Regulation (EC) No 1493/1999,

(b) must retain at least the minimum alcoholic strength
required for the category of table wine concerned at the
time of conclusion of the contract,

(c) may not be kept in containers of less than 50 litres

capacity,

(d) must remain in bulk, and

(e)

in the case of wine, must remain fit for offer or supply
for direct human consumption at the end of the storage
period.

2. Without prejudice to Article 6, products under contract
may undergo only such oenological treatments and processes
as are necessary for their preservation. Any variation in volume
may not exceed 2 % of the volume entered in the contract in
the case of wine and 3 % in the case of grape must. When
there has been a change of vat, these percentages are increased
by 1 point. Where these percentages are not exceeded for the
contract as a whole, the full amount of the aid shall remain
payable. Otherwise no aid shall be due.

3. Without prejudice to Article 33 of
this Regulation,
producers may not sell or in any other way market the product
under contract during the period of validity of the contract.

Notwithstanding the first subparagraph, producers may under-
take, while a contract is still valid, to send table wine covered
by it for distillation under Title III of this Regulation on expiry
of the contract.

Producers shall

4.
inform the intervention agency in
advance, within a period to be laid down by the Member State
concerned, of any change during the contract period:

(a)

in the place of storage, or

(b)

in the manner in which the product is put up. In such
cases, they shall
indicate the containers in which the
product is to be definitively stored.

5. Where producers intend to transport the product under
contract to a place of storage located elsewhere or to premises
not belonging to them, the product may be transported only
once the intervention agency, informed pursuant to paragraph
4, has authorised it.

L 194/64

EN

Official Journal of the European Communities

31.7.2000

6.
Producers who have concluded private storage contracts
for grape must may process all or part of that must into
concentrated grape must or rectified concentrated grape must
during the period of validity of their contract.

intervention agency shall
for the
quantity concerned with effect from the date of the analysis
report.

terminate the contract

Producers who have concluded private storage contracts for
concentrated grape must may process all or part of that must
into rectified concentrated grape must during the period of
validity of their contract.

Producers may have the processing operations referred to in
the previous two subparagraphs carried out by a third party
provided that the said producers own the products obtained
after processing and that they have presented a prior declar-
ation. The Member State concerned shall check these oper-
ations.

7.
The producers concerned shall inform the intervention
agency in writing of the date when the processing referred to
in paragraph 6 of this Article is to commence, the place of
storage and how the product is put up.

Such notification must reach the intervention agency at least
15 days before the date of commencement of the processing
operations.

Within one month of the day of completion of the processing
operations, producers shall send the intervention agency an
analysis report concerning the product thus obtained, includ-
ing as a minimum the data required for the product concerned
under Article 29 of this Regulation.

2.
Should a check carried out by the intervention agency or
any other inspecting agency reveal that all or part of the
product under contract has ceased to satisfy the conditions
laid down in Article 34(1) of this Regulation during the period
of validity of the contract,
the intervention agency shall
terminate the contract for the quantity concerned on the date
that it determines.

Article 36

Conditions for granting the aid

1.

Except in cases of force majeure,

(a) where producers fail to fulfil their obligations under
Article 34(1) to (5) and (7) of this Regulation or refuse to
submit to checks, no aid shall be payable;

(b) where producers fail to fulfil one of their obligations
under this Regulation or under the contract, other than
those referred to in (a) above, the aid shall be reduced by
an amount determined by the competent authority
depending on the seriousness of the infringement.

8. Where the processing referred to in paragraph 6 is
carried out, the amount of storage aid for the product under
contract shall be equal to:

2.
In cases where force majeure is recognised, the intervention
agency shall take such action as it considers necessary having
regard to the circumstances involved.

(a)

(b)

the amount referred to in Article 25(a) of this Regulation
for the processing referred to in the first subparagraph of
paragraph 6,

the amount referred to in Article 25(b) of this Regulation
for the processing referred to in the second subparagraph
of paragraph 6.

The aid shall be calculated, for the entire storage period, on
the basis of the quantity of product covered by the contract
before processing.

Article 37

Payment of the aid

The aid shall be paid not later than three months after

1.
the expiry date of a contract, except:

(a)

in cases of force majeure,

Article 35

Changes in the product during storage

(b) where administrative inquiries have been initiated con-
cerning entitlement to the aid. In such cases, payment
shall be made only when the applicant has been recog-
nised as entitled to the aid.

1.
Should all or part of the product under contract cease to
satisfy the requirements of Article 34(1) of this Regulation
during the period of validity of the contract, the producer
shall
inform the intervention agency without delay. Such
notification shall be supported by an analysis report. The

2.
In cases where a contract has been terminated in
accordance with Articles 33 or 36 of this Regulation, the aid
payable shall be in proportion to the actual duration of the
contract. The aid shall be paid not later than three months
after the day on which the contract is terminated.

31.7.2000

EN

Official Journal of the European Communities

L 194/65

Article 38

Advance payments

Producers who have concluded long-term storage con-
1.
tracts may request that an amount equal to the aid calculated
when the contract is drawn up be paid to them in advance
provided that they have lodged a security for 120 % of the said
amount in favour of the intervention agency.

The advance shall be paid not later than three months after the
date of submission of proof that the security has been lodged.

The remaining balance shall be paid not later than three
months after the date of expiry of the contract.

2.
Securities as referred to in paragraph 1 shall be lodged in
the form of a guarantee given by an institution meeting criteria
laid down by the Member State to which the intervention
agency belongs.

Securities shall be released once the balance of aid has been
paid.

Where entitlement to the aid is lost in accordance with
Article 36(1)(a) of this Regulation, the whole security shall be
forfeit.

Where the application of Article 36(1)(b) of this Regulation
results in an aid amount that is lower than the sum already
paid, the security shall be reduced by 120 % of the amount
paid in excess of the aid due. Securities reduced in this way
shall be released not later than three months after the date of
expiry of the contract.

The Member States shall make the necessary adjustments

3.
where Article 29(5)(i) is applied.

Article 39

Quality wines

A table wine which has been the subject of a storage contract
may not subsequently be recognised as a quality wine psr or
used in making a quality wine psr, a quality sparkling wine
psr, a quality liqueur wine psr or a quality semi-sparkling
wine psr as defined in Article 54(1) of Regulation (EC)
No 1493/1999.

TITLE III

DISTILLATION

I n t r o d u c t i o n

Article 40

Purpose

This Title lays down the detailed rules applicable to distillation
as referred to in Chapter II of Title III of Regulation (EC)
No 1493/1999.

Article 41

Definitions

1.

For the purposes of this Title:

(a)

‘producer’ means:

(i)

(ii)

for the purposes of Chapter I of this Title: any
natural or legal person or group of such persons
having produced wine from fresh grapes, grape must
or partially fermented grape must or from new
wine still in fermentation, obtained personally or
purchased, or any natural or legal person or group
of such persons subject to the obligations referred
to in Article 27 of Regulation (EC) No 1493/1999;

for the purposes of Chapters II and III of this Title:
any natural or legal person or group of such persons
having produced wine from fresh grapes, grape
must or partially fermented grape must, obtained
personally or purchased;

(b)

‘distiller’ means any natural or legal person or group of
such persons:

(i)

(ii)

distilling wine, wine fortified for distillation or the
by-products of wine-making or of any other form
of processing grapes, and

approved by the competent authorities in the Mem-
ber State in whose territory the distillation premises
are located;

(c)

‘maker of wine fortified for distillation’ means any natural
or legal person or group of such persons, other than
distillers:

(i)

(ii)

processing wine into wine fortified for distillation,
and

approved by the competent authorities in the Mem-
ber State in whose territory the premises are located;

L 194/66

EN

Official Journal of the European Communities

31.7.2000

(d)

‘competent intervention agency’ means:

(i)

for the purposes of receiving and approving con-
tracts or declarations relating to the delivery of
wine for distillation and receiving and approving
contracts relating to the delivery of wine for fortifi-
cation, the intervention agency designated by the
Member State in whose territory the wine is located
at the time when the contract or declaration is
submitted,

(ii)

for the purposes of paying aid to makers of wine
fortified for distillation under Article 69, the inter-
vention agency designated by the Member State in
whose territory the wine is fortified,

(iii)

in all other cases, the intervention agency designated
by the Member State in whose territory distillation
takes place.

For the purposes of this Title, natural or legal persons or
2.
groups of such persons other than makers of wine fortified for
distillation shall be deemed to be distillers if they:

(a)

are approved by the competent authorities in the Member
State in which they are established;

(b) buy from a producer as defined in paragraph 1(a) wine
or the by-products of wine-making or of any other form
of processing of grapes with a view to having them
distilled on their own account by an approved distiller,
and

(c)

pay the producer not less for the products purchased
than the minimum buying-in price for the distilled
product in question.

Persons or groups deemed to be distillers shall be subject to
the same obligations and enjoy the same rights as distillers.

3. Member States may stipulate, in accordance with rules
which they determine, that for the purposes of concluding
contracts and delivering wine for distillation, associations of
wine-growers’ cooperatives may on request be deemed to be
producers for those quantities of wine produced and handed
over by member cooperatives. The latter shall in any case
continue to hold the rights and be bound by the obligations
laid down in Community rules.

Should an association intend to carry out a distillation
operation under this Title in agreement with the wine-growers’
cooperatives concerned during a specified wine year, it shall
inform the intervention agency thereof in writing. In such
cases:

(a) member cooperatives may not individually sign distil-
lation contracts or make deliveries for the distillation
concerned,

(b)

the quantities of wine delivered for distillation by the said
association shall be booked to the member cooperatives
on whose behalf the delivery is made.

For the purposes of Article 2 of this Regulation, should one or
more member cooperatives fail to comply with the obligations
laid down therein, irrespective of the consequences for the
latter, the association shall be excluded from deliveries for the
distillation concerned, up to the limit of the quantities of wine
delivered on behalf of the wine-growers’ cooperatives which
committed the infringement.

Member States availing themselves of the option provided for
in this paragraph shall inform the Commission thereof and
shall notify it of the provisions they have adopted for this
inform the other Member
purpose. The Commission shall
States.

Article 42

Approval of distillers

1.
The competent authorities of the Member States shall
approve the distillers established in their territory who intend
to perform distillation operations under this Title and shall
draw up a list of the approved distillers. However, these
authorities may decide not to include on the list approved
distillers who are unable to obtain products of an alcoholic
strength of at least 92 % vol. by means of distillation under
Chapter I of this Title.

The competent authorities shall be responsible for updating
the said list, and the Member States shall
forward any
subsequent amendments to it to the Commission. The Com-
mission shall publish that list and any amendments to it.

2.
The competent authority may withdraw approval, either
temporarily or permanently, from distillers failing to meet
their obligations under the Community rules.

Article 43

Alcohol obtained by distillation

Only the following products may be obtained by distillation
under this Title:

(a)

(b)

neutral alcohol complying with the definition in Annex
III to this Regulation, or

spirits distilled from wine or from grape marc, complying
with the definitions in Article 1(4)(d) or (f) of Council
Regulation (EEC) No 1576/89 of 29 May 1989 laying
down general rules on the definition, description and
presentation of spirit drinks (1), or

(c)

a distillate or raw alcohol with an alcoholic strength of at
least 52 % by volume.

(1) OJ L 160, 27.6.1989, p. 1. Last amended by Regulation (EC)

No 3378/94 (OJ L 366, 31.12.1994, p. 1).

31.7.2000

EN

Official Journal of the European Communities

L 194/67

Where the product specified in point (c) in the first subpara-
graph is obtained, it may be used only under official super-
vision for:

(i)

the production of an alcoholic beverage,

(ii) processing into one of the products referred to in (a) or
(b) above, with the exception of spirits distilled from
grape marc,

(iii)

the production of alcohol for industrial purposes.

Member States shall take the necessary measures to ensure
compliance with the obligation laid down in the second
subparagraph.

Article 44

Analysis method for neutral alcohol

Annex V to this Regulation sets out the Community methods
for the analysis of neutral alcohol as defined in Annex IV
hereto.

making use of the possibility provided for in Article 27(8) of
Regulation (EC) No 1493/1999 provided they have made wine
or processed grapes in any other manner using a quantity
corresponding to more than 25 hectolitres but not more than
40 hectolitres of wine.

Article 46

Requirements for by-products delivered for distillation

1.
Notwithstanding Article 27(4) of Regulation (EC)
No 1493/1999, the amount of alcohol contained in products
delivered for distillation by producers delivering marc for the
manufacture of oenocyanin shall be at least 5 % of the amount
of alcohol contained in the wine; or at least 7 % for white
quality wines psr.

2.
For the purpose of determining the amount of alcohol
to be delivered for distillation in the form of the products
specified in Article 48 of this Regulation, the standard natural
alcoholic strengths by volume to be applied in the different
wine-growing zones shall be:

CHAPTER I

COMPULSORY DISTILLATION

(a) 8.5 % for zone B,

(b) 9.0 % for zone C I,

Section I: Distillation of by-products of wine-making

(c)

9.5 % for zone C II,

Article 45

(d) 10.0 % for zone C III,

Obligation to deliver by-products for distillation

1.
Producers required to distil under Article 27 of Regu-
lation (EC) No 1493/1999 shall discharge their obligations by
delivering for distillation, not later than 15 July of the wine
year concerned:

(a)

all of their marc and wine lees to an approved distiller,
and

(b) where applicable, any wine to an approved distiller or

approved maker of wine fortified for distillation.

Where producers make deliveries to a distiller whose approval
has been withdrawn, the quantities supplied may be counted
but there shall be no entitlement to Community assistance.

Producers who have not made wine or processed grapes
2.
in any other way on cooperative premises and who do not
produce more than 25 hectolitres of wine or must during the
wine year in question shall be free not to deliver any quantities.

In the Italian part of wine-growing zones C and the Portuguese
wine-growing zone, persons subject to the obligation referred
to in paragraph 1 may be released from that obligation by

3.
To keep distillation costs within acceptable limits, the
minimum average requirements that wine-making by-products
must meet on delivery to the distillery shall be the following:

(a)

grape marc:

(i)

(ii)

in wine-growing zone B: two litres of pure alco-
hol/100 kilograms,

in wine-growing zone C: two litres of pure alco-
hol/100 kilograms where it is obtained from varieti-
es listed in the classification of vine varieties for the
administrative unit concerned as varieties other than
wine-grape varieties; 2.8 litres of pure alcohol/100
kilograms where it is obtained from varieties listed
in the classification for the administrative unit
concerned solely as wine-grape varieties;

(b) wine lees:

(i)

(ii)

in wine-growing zone B: three litres of pure alco-
hol/100 kilograms, 45 % moisture content,

in wine-growing zone C: four litres of pure alco-
hol/100 kilograms, 45 % moisture content,

L 194/68

EN

Official Journal of the European Communities

31.7.2000

4.
In the case of producers who deliver wine of their own
production to the vinegar industry, the amount of alcohol,
expressed as pure alcohol, contained in the wine delivered
shall be deducted from the amount of alcohol, expressed as
pure alcohol, contained in the wine to be delivered for
distillation to discharge
the obligation referred to in
Article 27(3) of Regulation (EC) No 1493/1999.

In the case of producers who deliver wine and by-products of
their own production for supervised experiments conducted
by the Member States, the provisions on buying-in prices
referred to in Article 47 shall apply, and aid shall be paid to
the distiller at a rate of EUR 0.277/% vol./hl.

In the case of experiments,
the Member State may not
exceed 100 tonnes of marc and 100 tonnes of wine lees per
experiment.

Article 47

Buying-in price

1.
The buying-in price referred to in Article 27(9) of
Regulation (EC) No 1493/1999 shall apply to bulk merchan-
dise ex distiller’s premises.

(b)

Spirits distilled from grape marc EUR 0.3985

and a distillate or raw alcohol with an alcoholic strength
of at least 52 % by volume

(c) Wine spirits EUR 0.2777

(d) Raw alcohol from wine and wine lees EUR 0.2777

Where the distiller provides evidence that the distillate or raw
alcohol obtained by distillation of marc was used otherwise
than as spirits distilled from marc, a further amount of
EUR 0.3139/% vol./hl may be paid.

Differentiated aid for alcohol distilled from marc or from

2.
wine and wine lees as referred to in paragraph 1(a):

(a) may be decided on by the Member States where appli-
cation of the flat-rate aid referred to at (i) makes it or
could make it impossible to have one or more of the by-
products of wine-making distilled in certain regions of
the Community,

2.
Distillers shall pay the buying-in price as referred to in
paragraph 1 to producers within three months of the day on
which the quantity concerned is delivered to the distillery.

(b) must be paid to distillers where one of these raw materials
accounts for more than 60 % of the total quantities they
have distilled during a given wine year.

However, unless the producer objects, distillers may:

(a)

pay the producer on account 80 % of the buying-in price,
no more than three months after delivery of the products,
or

(b) make the payment on account referred in (a) following
delivery of the products and no later that one month after
presentation of the invoice to be drawn up for them
before 31 August following the close of the wine year
concerned.

Distillers shall pay the balance to producers no later than the
following 31 October.

Article 48

Aid to be paid to distillers

1.
The aid to be paid to distillers for products distilled
under Article 27 of Regulation (EC) No 1493/1999 shall be
fixed, per % vol. of alcohol and per hectolitre of product
obtained by distillation, as follows:

(a)

neutral alcohol:

(i)

flat-rate aid EUR 0.6279

(ii)

aid for marc EUR 0.8453

(iii)

(aid for wine and wine lees EUR 0.4106

3.
No aid shall be due for quantities of wine delivered for
distillation exceeding the producer’s obligation as provided for
in Article 45(1) of this Regulation by more than 2 %.

Article 49

Exceptions to the obligation to deliver for distillation

The obligations laid down in Article 27 of Regulation

1.
(EC) No 1493/1999 shall not apply to:

(a)

producers who withdraw by-products of wine-making
under supervision under Article 50(1) of this Regulation,

(b) producers of quality sparkling wines of the aromatic type
and quality sparkling wines and semi-sparkling wines of
the aromatic type produced in specified regions who
have prepared such wines from grape must or partially
fermented grape must which has been purchased and
stabilised to eliminate the wine lees.

2.
Producers who have not made wine or processed grapes
in any other way on cooperative premises and who do not
produce more than 25 hectolitres of wine or must during the
wine year in question shall be free not to deliver any quantities.

31.7.2000

EN

Official Journal of the European Communities

L 194/69

3.
For that part of their wine production actually delivered
to a distillery for distillation under Article 28 of Regulation
(EC) No 1493/1999, producers shall be required to deliver
only by-products of wine-making for distillation under
Article 27(3) of that Regulation.

(a)

grape marc:

(i)

2.1 litres/100 kilograms in the case of quality white
wines psr,

(ii) 3 litres/100 kilograms in other cases.

Article 50

Withdrawals

1.
Only the following producers may avail themselves of
the option referred to in Article 27(8) of Regulation (EC)
No 1493/1999:

(a)

(b)

those established in production areas where distillation is
a disproportionate constraint. A list of the production
areas concerned shall be drawn up by the competent
authorities of the Member States, who shall inform the
Commission thereof;

those who have not made wine or processed grapes in
any other way on cooperative premises and who have
disproportionate distillation costs on account of their low
volume of production or the special characteristics of
production and the location of the distilleries.

For the purposes of Article 27(7) and (8) of Regulation
2.
(EC) No 1493/1999,
the by-products shall be withdrawn
without delay and no later than the end of the wine year in
which they were obtained. Withdrawal, together with an
indication of the estimated quantities, shall be either entered
in the registers kept in accordance with Article 70 of Regu-
lation (EC) No 1493/1999 or certified by the competent
authority.

The withdrawal of the wine lees in question shall be regarded
as having taken place once the lees have been denatured to
make their use in winemaking impossible and where the
delivery of the denatured lees to third parties has been entered
in the registers referred to in the first subparagraph. The
Member States shall take the measures necessary to ensure that
such transactions are checked.

Member States whose wine production exceeds 25 000 hecto-
litres per year shall check by sampling at least whether the
average minimum alcoholic strength referred to in Article 51
has been complied with and whether all the by-products have
been withdrawn within the time limits set.

Article 51

Requirements for by-products withdrawn

The minimum pure alcoholic strength of the by-products of
wine-making withdrawn under supervision under Article 27(7)
and (8) of Regulation (EC) No 1493/1999 shall be as follows:

(b) wine lees:

(i)

3.5 litres/100 kilograms in the case of quality white
wines psr,

(ii) 5 litres/100 kilograms in other cases.

Section II: Distillation of wine from dual-purpose grapes

Article 52

Obligation to deliver wine for distillation

Producers required to distil under Article 28 of Regulation
(EEC) No 1493/1999 shall discharge their obligation by
delivering their wine to an approved distillery not later than
15 July of the wine year concerned.

In cases covered by Article 71 of this Regulation, the obligation
shall be discharged by delivering the wine to an approved
maker of wine fortified for distillation not later than 15 June
of the wine year concerned.

Article 53

Quantity of wine to be delivered

1.
In the case of wine covered by Article 28 of Regulation
(EC) No 1493/1999, producers shall be required to deliver a
quantity equal to the quantity which they have produced
minus:

(a)

(b)

the quantity corresponding to that normally produced,
calculated as specified in paragraph 2 of this Article,

any quantity which they can prove has been exported not
later than 15 July of the wine year concerned.

Producers may also deduct a quantity not exceeding 10 hecto-
litres from the quantity to be delivered.

2.
In the case of wine obtained from grapes of varieties
classified as both wine-grape varieties and varieties for other
uses, the total quantity of wine normally produced shall for
each administrative unit be the average quantity produced
during the wine years:

— 1974/75 to 1979/80 in the Community of Ten,

L 194/70

EN

Official Journal of the European Communities

31.7.2000

— 1978/79 to 1983/84 in Spain and Portugal,

— 1988/89 to 1993/94 in Austria.

Article 55

Buying-in price

However, in the case of wine obtained from grapes of varieties
classified in a given administrative unit as both wine-grape
varieties and varieties for the production of wine spirits,
quantities distilled for purposes other than the production of
wine spirits with a registered designation of origin shall be
deducted from that quantity.

As regards wine as referred to in the first subparagraph, the
quantity normally produced per hectare shall be fixed by the
Member States concerned by establishing the proportion of
wine obtained during the same reference period referred to in
that subparagraph from grapes of varieties classified in a given
administrative unit as both wine-grape varieties and varieties
for other purposes.

3.
The total quantity produced by each producer shall be
the aggregate of the quantities of wine covered by Article 53
paragraph 1 and stated in the production declaration referred
to in Article 18 of Regulation (EC) No 1493/1999 and the
quantities entered in the register provided for in Article 70 of
that Regulation and obtained by the producer after the date of
submission of the production declaration from grapes, or must
produced from grapes, of the varieties referred to in Article 28
of that Regulation and appearing in that declaration.

From the 1998/99 wine year, notwithstanding the
4.
preceding paragraph, as regards wine obtained from grapes of
varieties classified in a given administrative unit as both wine-
grape varieties and varieties for the production of wine spirits,
the Member States shall be authorised to allow producers who
have received premiums from the 1997/98 wine year for the
permanent abandonment of part of their vine-growing areas
as provided for in Article 8 of Regulation (EC) No 1493/1999
to maintain, for the five wine years following grubbing, the
quantity normally produced at the level it stood at before
grubbing.

Article 54

Exceptions to the obligation to deliver for distillation

Where a derogation is granted under Article 28(1) of Regu-
lation (EC) No 1493/1999, the wine covered by that Article
may be moved:

1.
Distillers shall pay the buying-in price specified in
Article 28(3) of Regulation (EC) No 1493/1999 to producers
for the quantity delivered within three months of the date of
delivery to the distillery. This price shall apply to bulk
merchandise ex producer’s premises.

of Regulation

In the case of wine as referred to in Article 53 second
2.
sub-paragraph, the buying-in price may, in accordance with
Article 28(3)
be
apportioned by France among those subject to the distillation
obligation on the basis of the yield per hectare. The provisions
adopted by that Member State shall ensure that the average
price actually paid for all wine distilled is EUR 1.34/% vol./hl.

(EC) No 1493/1999,

Article 56

Aid to be paid to distillers

The amount of the aid referred to in Article 28(5)(a) of
Regulation (EC) No 1493/1999 shall be fixed as follows, per
% vol. of alcohol and per hectolitre of product obtained from
distillation:

(a)

neutral alcohol EUR 0.7728

(b) Wine

spirits,

raw alcohol

and a wine distillate

EUR 0.6401

Article 57

Requirements for alcohol obtained by certain distillation
operations

Only a product with an alcoholic strength of 92 % vol. or
more may be obtained by the direct distillation of wines
obtained from grapes of varieties classified for the same
administrative unit as both wine-grape varieties and varieties
intended for the production of wine spirits.

Section III: Common provisions applicable to Sections I and
II of this Chapter

Article 58

Partial deliveries

(a)

to a customs office for completion of customs export
formalities followed by removal from the customs terri-
tory of the Community, or

(b)

to the premises of an approved maker of wine fortified
for distillation with a view to fortification.

Producers subject to one of the obligations referred to in
Articles 45 and 52 of this Regulation who have delivered at
least 90 % of the quantity of product which they are obliged
to deliver before 15 July of the current wine year may discharge
their obligation by delivering the remaining quantity before a
date, to be fixed by the competent national authority, which
may not be after 31 August of the following wine year.

31.7.2000

EN

Official Journal of the European Communities

L 194/71

In such cases:

(a)

the buying-in price for the remaining quantities referred
to in the first subparagraph and the price for the alcohol
produced therefrom and delivered to the intervention
agency shall be reduced by an amount equal to the aid
for neutral alcohol fixed for the distillation operation
in question in accordance with Article 48(1)(a)(i) and
Article 56(a) of this Regulation,

(b) no aid shall be paid for products of distillation not

delivered to intervention agencies,

(c)

(d)

the obligation shall be deemed to have been discharged by
the date fixed in accordance with the first subparagraph,

the time limits for distillation, submission of proof of
payment of the price referred to at (a) and delivery of the
alcohol to the intervention agency shall be adjusted by
the competent authority to take account of the extended
time limit for delivery.

Article 59

Proof of delivery

of

Regulation

— the number of the document provided for in
Article 70(1)
(EC)
No 1493/1999, where such a document is
required for transport of the products to the
distiller’s premises or, otherwise, the reference
number of the transport document used under
national rules;

(ii)

in the case of grape marc, a list of the names of the
producers who have delivered marc and the quantity
of alcohol contained in the marc delivered for
distillation under Article 27 of Regulation (EC)
No 1493/1999;

(b)

a declaration, stamped by the competent authority desig-
nated by the Member State, stating at least:

(i)

the quantity of products obtained by distillation,
broken down by category as indicated in Article 43
of this Regulation,

(ii)

the date on which these products were obtained;

(c)

proof that they have paid the producer the minimum
buying-in price laid down for the distillation operation
concerned within the time allowed.

As proof of delivery, distillers shall provide producers, before
31 August of the following wine year, with a certificate stating
at least the type, quantity and alcoholic strength by volume of
the products delivered, as well as the dates of delivery.

However, Member States may provide for simplified arrange-
ments for presenting evidence of the payment of the minimum
buying-in price for distillation of the by-products of wine-
making after obtaining the agreement of the Commission to
such arrangements.

However, where producers deliver the products which they are
to have distilled to a distillery located in a Member State other
than that in which the products were obtained, the distiller
shall require the intervention agency of the Member State of
distillation to certify that the distillery has taken over the
products in question on the official document provided for in
Article 70 of Regulation (EC) No 1493/1999 covering trans-
port of the products. The distiller shall forward a copy of the
duly certified document to the producer within one month of
receiving the products to be distilled.

Article 60

Proofs to be supplied by distillers to intervention agencies

2. Where producers carry out the distillation themselves,
the documents referred to in paragraph 1 shall be replaced by
a declaration, stamped by the competent authority of the
Member State, stating at least:

(a)

(b)

the type, quantity, colour and alcoholic strength by
volume of the product to be distilled,

the quantity of products obtained from distillation,
broken down by category as indicated in Article 43 of
this Regulation,

(c)

the dates on which these products were obtained.

1.
In order to qualify for aid, distillers shall submit an
application to the intervention agency, no later than 30 No-
vember following the wine year concerned, enclosing for the
quantities covered by their application:

3.
Proof that the minimum price has been paid may be
replaced by proof that a security has been lodged in favour of
the intervention agency. The security shall be equal to 120 %
of the aid applied for.

a)

(i)

in the case of wine and wine lees, a summary of the
deliveries made by each producer, stating at least:

— the

type, quantity,
strength by volume,

colour and alcoholic

that

In such cases, proof
the distiller has paid the full
buying-in price referred to in Article 27(9) or Article 28(3) of
Regulation (EC) No 1493/1999 shall be supplied to the
intervention agency no later than the last day of February
following the wine year concerned.

L 194/72

EN

Official Journal of the European Communities

31.7.2000

4.
In cases as referred to in the second subparagraph of
Article 47(2) of this Regulation, proof that the buying-in price
has been paid shall be replaced by proof that the payment on
account has been made.

2.
The price to be paid to distillers for raw alcohol delivered
to the intervention agency shall be fixed in % vol./hl as follows:

(a)

distillation
No 1493/1999:

under Article 27

of Regulation

(EC)

5.
The intervention agency shall pay the aid to the distiller
or, in cases as referred to in paragraph 2, the producer no
more than three months after submission of the application
together with the requisite documents.

(i)

standard price: EUR 1.654

(ii) marc alcohol: EUR 1.872

6.
If it is found that the distiller has not paid the buying-in
price to the producer, the intervention agency shall pay the
producer an amount equal to the aid before 1 June following
the wine year concerned, where appropriate through the
intervention agency of the producer’s Member State.

Article 61

Dates of distillation operations

Any wine delivered to meet the obligation laid down in
1.
Article 27 of Regulation (EC) No 1493/1999 may not be
distilled before 1 January of the wine year concerned.

2.
Not later than the 10th of each month, distillers shall
send the intervention agency a statement of the quantities of
products distilled and products obtained during the previous
month, the latter being broken down by category as indicated
in Article 43 of this Regulation.

(iii) alcohol distilled from wine and wine lees: EUR 1.437

(b) distillation

under Article 28

of Regulation

(EC)

No 1493/1999:

— price EUR 1.799

Where alcohol is stored on the premises where it has been
produced, the above prices shall be reduced by EUR 0.5/%
vol./hl of alcohol.

3.
Differentiated prices for marc alcohol, wine alcohol and
alcohol distilled from wine lees as referred to in paragraph
2(a):

(a) may be decided on by the Member States where appli-
cation of the standard price makes it or could make it
impossible to have one or more of the by-products of
wine-making distilled in certain regions of the Com-
munity,

(b) must be paid to distillers where one of these raw materials
accounts for more than 60 % of the total quantities they
have distilled during a given wine year.

Distillation may not take place after 31 July of the wine

3.
year concerned.

4.
In the case of distillers who have received aid under
Articles 48 and 56 of this Regulation, the prices referred to in
paragraph 2 shall be reduced by an amount equal to the aid.

Article 62

Delivery of alcohol to the intervention agency

5.
The intervention agency shall pay distillers no more than
three months after the day on which the alcohol is delivered,
provided the documents and evidence referred to in Article 60
have been presented.

1. Without prejudice to the application of Articles 27(12)
and 28(6) of Regulation (EC) No 1493/1999, distillers may
deliver products with an alcoholic strength of at least 92 % vol.
to the intervention agency until 30 November following the
wine year concerned at the latest.

The operations necessary to obtain the product referred to in
the first subparagraph may be carried out either at the premises
of the distiller delivering the said product to the intervention
agency or at the premises of a jobbing distiller.

CHAPTER II

OPTIONAL DISTILLATION

Article 63

Opening of distillation as provided for in Article 29 of
Regulation (EC) No 1493/1999

Except where the second subparagraph of paragraph 2 of this
Article is applied, distillers delivering to the intervention
agency may not physically keep the delivered alcohol on their
premises;
it must be stored on premises managed by the
intervention agency.

1.
The distillation of table wine and wine suitable for
yielding table wine referred to in Article 29 of Regulation (EC)
No 1493/1999 shall be opened on 1 September each wine
year.

31.7.2000

EN

Official Journal of the European Communities

L 194/73

2.
The volume of table wine and wine suitable for yielding
table wine that each producer may have distilled shall be
limited to 40 % of the highest volume of such wine produced
and declared in the previous three wine years, including the
current year if production has already been declared. Where
the above percentage is applied, the quantity of table wine
produced shall be that given as wine in the column headed
‘Table wines’ of the declaration of quantities produced as
referred to in Article 18(1) of Regulation (EC) No 1493/1999.

Each producer who has produced table wine or wine
3.
suitable for yielding table wine may conclude a contract or
make a declaration as referred to in Article 65 of
this
Regulation. The contract shall be accompanied by evidence of
the lodging of security of EUR 5 per hectolitre. Such contracts
may not be transferred.

The Member States shall notify the Commission on the
4.
5th and the 20th days of each month or on the first working
day thereafter of the total quantities covered by contracts
concluded for such distillation in the periods running from the
16th to the 31st days of the previous month and from the 1st
to the 15th day of the current month respectively.

5.
The Member States may approve such contracts once
ten working days have elapsed after notifying the Commission
pursuant to paragraph 4, unless the Commission has taken
special measures in the meantime. By the date of the following
notification in accordance with paragraph 4, the Member
States shall notify the Commission of the total volume of
contracts approved.

6.
If the quantities for which contracts have been concluded,
notified to the Commission on the day determined in accord-
ance with paragraph 4, exceed or may exceed the quantities
corresponding to available budget resources or are or may be
substantially in excess of the absorption capacity of the potable
alcohol sector, the Commission shall set a percentage figure
for acceptance of the quantities covered by the contracts
concerned and/or shall suspend notification of new contracts.
In this case, the security referred to in paragraph 3 shall be
released for the quantities concluded but not accepted.

The Commission may also set a percentage for acceptance of
contracts concluded or suspend notification of new contracts
in cases of abnormal development of new contracts or where
there is a serious risk that the continuity of traditional supply
of products of distillation will be distorted.

Contracts concluded and not notified to the Commission

7.
in accordance with paragraph 4 may not be approved.

The security referred to in paragraph 3 shall be released
8.
in proportion to the quantities supplied when the producer
provides evidence of delivery to a distillery.

9.
The amounts to be supplied under contract shall be
delivered to a distillery by 30 June of the same wine year at the
latest.

Article 64

Amount of aid

The aid to be paid to distillers or, in the cases referred to
1.
in Article 65(3) of this Regulation, to producers, for wine
distilled to produce potable alcohol under this Chapter shall
be fixed per % vol. of alcohol and per hectolitre of product
obtained by distillation as follows:

(a)

primary aid under Article 29(4) of Regulation (EC)
No 1493/1999:

— EUR 1.751 per %/vol. and per hectolitre for raw

alcohol and spirits distilled from wine,

— EUR 1.884/ % vol./hl for neutral alcohol.

(b)

secondary aid under Article 29(6) of Regulation (EC)
No 1493/1999: EUR 0.0336/hl per day.

2.
Distillers wishing to receive secondary aid shall notify
the intervention agency of the quantity and characteristics of
the product they wish to store and the date when storage is
scheduled to commence. Such notification must be made at
least 30 days before storage commences.

Unless the intervention agency objects within the above 30-
day time limit, the date when storage is scheduled to com-
mence shall be deemed to be the actual commencement date.

Secondary aid as referred to in (b) of paragraph 1 may

3.
be paid only:

— for at least 100 hl of alcohol stored in containers of a

capacity of at least 100 hl.

— for at most 12 months from 1 December,

— for at least six months.

Distillers may terminate storage of alcohol as of 1 June
provided the Commission so authorises in the light of the
situation in the sector.

In the case of primary aid, the intervention agency shall
4.
pay distillers or,
in the cases referred to in Article 65(2),
producers, the aid calculated in accordance with paragraph 1
of this Article no more than three months after submission of
the proof referred to in Article 65(10) of this Regulation.

L 194/74

EN

Official Journal of the European Communities

31.7.2000

The intervention agency shall pay the secondary aid no more
than three months after the end of the storage period.

5.
Alcohol for which aid is paid under this Article may not
subsequently be bought in by the public authorities. Should
distillers nevertheless wish to sell their alcohol to the public
first reimburse the aid they have
authorities,
received.

they must

Notwithstanding paragraph 5, that paragraph shall not
6.
apply to public authorities who have a programme for the sale
of alcohol that does not interfere with traditional uses, such as
an agri-environmental programme for the sale of alcohol to
the fuel sector, as regards quantities of alcohol sold under such
programmes.

CHAPTER III

PROVISIONS COMMON TO CHAPTERS I AND II

Section I: General

Article 65

Delivery contracts

1.
All producers intending to deliver wine of their own
production for distillation under Articles 29 and 30 of
Regulation (EC) No 1493/1999 shall conclude one or more
delivery contracts, hereinafter referred to as ‘contracts’, with
one or more distillers. Distillers shall present such contracts to
the competent intervention agency for approval before a date
to be specified, in accordance with arrangements established
by the Member States.

Along with the contract, evidence shall be presented to the
intervention agency to prove that producers have actually
produced and hold the quantity of wine to be delivered. Such
evidence may not be required in the Member States where the
authorities already hold relevant such proof under other
arrangements.

Producers subject to the obligations laid down in Articles 27
and 28 of Regulation (EC) No 1493/1999 shall also provide
distillers with proof that they have fulfilled those obligations
during the period set in Article 2(2) of this Regulation.

Contracts shall include at least the following information

2.
about the wine they cover:

(a)

the quantity, which may not be less than 10 hectolitres,

(b)

the various characteristics, and in particular colour.

Producers may not deliver the wine for distillation unless their
contract has been approved by the competent intervention
agency. The competent authority may limit the number of
contracts that a producer can conclude.

Where distillation is carried out in a Member State other than
that in which the contract is approved, the intervention agency
which approved the contract shall forward a copy thereof to
the intervention agency of the Member State of distillation.

3.

Producers as referred to in paragraph 1 of this Article:

a) who themselves possess distillation facilities and who
the distillation covered by this

intend to carry out
Chapter, or

b) who intend to have their wine distilled on their behalf in
the plant of an approved distiller working under contract,
shall submit a declaration of delivery for distillation,
hereinafter referred to as the ‘declaration’, to the com-
petent intervention agency for approval before a date to
be specified.

Producers subject to the obligations referred to in Articles 27
and 28 of Regulation (EC) No 1493/1999 shall also provide
the competent intervention agency with proof that they have
fulfilled those obligations during the reference period set in
Article 2(2) of this Regulation.

For the purposes of paragraph 3, the contract shall be

4.
replaced

(a)

(b)

in the case referred to in (a) in the first subparagraph of
paragraph 3, by the declaration,

in the case referred to in (b) in the first subparagraph of
paragraph 3, by the declaration accompanied by a
contract for delivery for distillation on the producer’s
behalf concluded between the producer and the distiller.

5.
The characteristics of the wine delivered for distillation
must be the same as those indicated in the contract or
declaration covered by this Article.

No aid shall be due:

(a)

(b)

(c)

if the quantity of wine actually delivered for distillation is
less than 95 % of that stated in the contract or declaration;

for any quantity of wine in excess of 105 % of that stated
in the contract or declaration;

for any quantity of wine over and above the maximum
quantity to be complied with for the distillation operation
in question.

6.
Distillers shall pay producers the prices fixed per % vol.
of alcohol and per hectolitre under Article 29 or 30 of
Regulation (EC) No 1493/1999 for the wine delivered to them,
such prices applying to bulk merchandise ex producer’s
premises.

31.7.2000

EN

Official Journal of the European Communities

L 194/75

7.
Distillers shall pay producers the minimum purchase
price referred to in paragraph 6 within three months of
delivery of the wine, provided the producers have supplied the
competent authority with the proof referred to in the third
subparagraph of paragraph 1 of this Article within two months
of delivery. If the said proof is provided more than two months
after delivery, distillers shall pay within one month.

Distillers shall forward to the intervention agency, within

8.
time limits laid down:

(a)

details of
the quantity, colour and actual alcoholic
strength by volume of the wine in each delivery from
each producer from whom they have received deliveries
of wine, together with the number of the document
provided
(EC)
No 1493/1999 used for the transport of the wine to the
distiller’s premises,

of Regulation

in Article 70

for

(b) proof that the total quantity of wine stipulated in the
contract or declaration has been distilled within the time
allowed,

(c)

proof that they have paid the producer the purchase price
referred to in paragraph 7 of this Article within the time
allowed.

In the case referred to in paragraph 9, producers shall be
required to supply only the proof referred to in (b) above.

Not later than the 10th of each month, distillers shall send the
intervention agency a statement of the quantities of products
distilled and products obtained during the previous month,
the latter being broken down by category as indicated in
Article 43 of this Regulation.

9.
If distillation is carried out by producers themselves in
their capacity as distillers or by distillers acting on the
producer’s behalf, the information required under paragraph 8
shall be submitted to the competent intervention agency by
the producer.

10. Member States shall carry out representative spot
checks on the wine covered by contracts and shall check in
particular:

that the producer has actually produced and holds the
quantity of wine to be delivered,

(a)

(b)

Article 66

Advance payments

1.
Distillers or, in the case referred to in Article 65(3) of
this Regulation, producers, may request that an amount equal
to the aid fixed for the distillation operation concerned be paid
them in advance, provided that they have lodged a security in
favour of the intervention agency. That security shall be equal
to 120 % of the said amount.

The amount referred to in the first subparagraph shall be
calculated per % vol. of alcohol indicated for the wine covered
by the contract or delivery declaration and per hectolitre of
that wine, or by hectolitre of pure alcohol in the case of the
secondary aid referred to in Article 64(1)(b) of this Regulation.
The intervention agency shall pay advances no more than
three months after presentation of proof that the security has
been lodged, provided the contract has been approved.

2.
The security shall be released by the intervention agency
once the proof referred to in Article 65(8) is presented within
the time allowed.

Article 67

EAGGF contribution to the cost of distillation operations

1.
The EAGGF Guarantee Section shall finance part of the
expenditure incurred by intervention agencies in taking alcohol
over.

The financial contribution shall be equal to the aid fixed under
Articles 48 and 56 and Article 68(a) of this Regulation and
pursuant to Article 3 of Regulation (EC) No 1493/1999.

Articles 4 and 6 of Regulation (EC) No 1258/1999 (1)

2.
shall apply to the contribution.

Section II: Fortified wine

Article 68

that the wine entered in the contract belongs to the
category for which distillation has been opened.

Processing into fortified wine

the contract up to the date it

The check may be made at any time from date of presentation
of
is approved and the
wine enters the distillery. Member States with more effective
arrangements for checking point (a) in the first subparagraph
of this paragraph need carry out checks only as products enter
the distillery.

1. Wine to be distilled under this Regulation may be
fortified.
In such cases, the only product which may be
obtained by distilling such fortified wine shall be wine spirits.

(1) OJ L 160, 26.6.1999, p. 103.

L 194/76

EN

Official Journal of the European Communities

31.7.2000

2. Wine shall be fortified for distillation only under official
supervision.

(b)

ex producer’s premises in other cases.

For this purpose:

(a)

(b)

(c)

the document(s) and register(s) required under Article 70
of Regulation (EC) No 1493/1999 shall show the increase
in actual alcoholic strength by volume, expressed
in % vol., by indicating the strength before and after
addition of the distillate to the wine,

the wine shall be taken under official
a sample of
supervision before it
the actual
alcoholic strength by volume may be determined by an
official laboratory or a laboratory working under official
supervision,

is fortified so that

two copies of the report on the analysis referred to in (b)
shall be sent to the manufacturer of the fortified wine,
who shall transmit one copy to the intervention agency
of the Member State in which the wine is fortified.

3. Wine shall be fortified for distillation during the period
laid down for the distillation operation in question.

4. Member States may restrict the number of locations at
which wine may be fortified for distillation, should this be
necessary to ensure that the most effective method of super-
vision can be used.

Article 69

Preparation of fortified wine

1.
In cases where the option referred to in Article 68(1) is
exercised and where the wine is not fortified by or on behalf
of a distiller, producers shall conclude a delivery contract with
an approved maker of fortified wine and shall submit it for
approval to the competent intervention agency.

However, in the case of producers who are approved as makers
of fortified wine and who intend to fortify the wine for
distillation themselves, the contract referred to in the first
subparagraph shall be replaced by a declaration of delivery.

Contracts and declarations as referred to in paragraph 1

2.
shall be covered by rules adopted by the Member States.

3. Makers of fortified wine shall pay producers at least the
minimum buying-in price fixed for distillations as provided
for in Articles 27 to 30 of Regulation (EC) No 1493/1999 for
the wine delivered. That price shall apply to bulk merchandise:

(a)

free at maker’s premises in the case of distillation under
Article 27(9) of Regulation (EC) No 1493/1999,

Subject to the necessary adjustments, makers of fortified wine
for distillation shall be subject to the same obligations as
distillers under this Title.

The aid to be paid to makers of fortified wine shall be fixed
per % vol. of actual alcoholic strength and per hectolitre of
wine as follows:

— EUR 0.2657 for distillation as provided for in Article 27

of Regulation (EC) No 1493/1999;

— EUR 0.6158 for distillation as provided for in Article 28

of Regulation (EC) No 1493/1999;

— EUR 0.1715 for distillation as provided for in Article 29

of Regulation (EC) No 1493/1999.

The competent intervention agency shall pay the aid to makers
of fortified wine on condition that they lodge a security equal
to 120 % of the aid to be received. However, no security shall
be required where all the requirements for payment of the aid
have already been met.

Where makers fortify wine in connection with various distil-
lation operations governed by different provisions of Regu-
lation (EC) No 1493/1999, they may lodge a single security.
In such cases, the security shall be equal to 120 % of all the aid
to be paid for fortification in connection with the said
distillation operations.

The intervention agency shall release the security following
presentation, within the time allowed:

(a)

of proof that the total quantity of wine fortified for
distillation indicated in the contract or declaration has
been distilled within the time allowed, and

(b) of proof that the minimum purchase price referred to
in Articles 27, 28, 29 and 30 of Regulation (EC)
No 1493/1999 has been paid within the time allowed.

In cases covered by the second subparagraph of paragraph 1,
the producer shall be required to supply the intervention
agency only with the proof referred to in (a) above.

Article 70

Distillation in another Member State

1.
Notwithstanding Article 69(4) of this Regulation, where
fortified wine is distilled in a Member State other than that in
which the contract or declaration was approved, the aid
payable for the various distillation operations may be paid to
distillers provided that they submit an application no more
than two months after the deadline specified for carrying out
the distillation operation concerned, to the intervention agency
of the Member State in whose territory the distillation has
taken place.

31.7.2000

EN

Official Journal of the European Communities

L 194/77

Applications as referred to in paragraph 1 shall be

2.
accompanied by the following:

(a)

a document, endorsed by the competent authorities of
the Member State in whose territory the wine was
fortified, transferring entitlement to the aid from the
maker of the fortified wine to the distiller and showing
the quantities of fortified wine concerned and the amount
of the corresponding aid,

(b)

a copy of the contract or declaration referred to in
Article 69(1), approved by the competent intervention
agency,

(c)

a copy of the analysis report referred to in Article 68,

(d) proof that the minimum purchase price of the wine has

been paid to the producer,

(e)

the document required under Article 70 of Regulation
(EC) No 1493/1999 for the transport of fortified wine to
the distillery, showing the increase in actual alcoholic
strength by volume, expressed in % vol., by indicating the
strength before and after addition of the distillate to the
wine,

(f)

proof that the fortified wine concerned has been distilled.

3.
In cases covered by paragraph 1, makers of fortified wine
shall not be required to lodge the security provided for in
Article 69(4).

4.
The intervention agency shall pay the aid not later than
three months after the application and the documents listed in
paragraph 2 have been submitted.

Article 71

Special rules

1.
In cases covered by Article 69(1) of this Regulation,
the contract or declaration of delivery for fortification for
distillation shall be submitted to the competent intervention
agency for approval not later than 31 December of the wine
year concerned. The intervention agency shall notify the
producer of the outcome of the approval procedure within 15
days of the date on which the contract or declaration is
submitted.

2.
In cases of distillation under Article 27 of Regulation
(EC) No 1493/1999, no wine may be fortified before 1 January
of the wine year concerned or before the relevant contract or
declaration has been approved.

3.
No later than the 10th of each month, makers of fortified
wine for distillation shall send the intervention agency a
statement of the quantities of wine delivered to them during
the previous month.

4.
To qualify for the aid, makers of fortified wine shall
submit an application to the competent intervention agency,
not later than 30 November following the end of the wine
year concerned, enclosing proof that the security referred to in
Article 69(4) has been lodged.

The aid shall be paid not later than three months after the date
of submission of proof that the security referred to in the
previous subparagraph has been lodged. It may not be paid
until the contract or declaration has been approved.

5.
Subject to Article 69(4) of this Regulation, the security
shall be released only if the documents referred to in that
Article have been supplied to the competent intervention
agency within 12 months of submission of the application.

6.
If it is found that a maker of fortified wine has not paid
the purchase price to the producer, the intervention agency
shall pay the producer an amount equal to the aid, before
1 June of the wine year following that in which the wine was
delivered, where appropriate through the intervention agency
of the producer’s Member State.

Section III: Administrative provisions

Article 72

Force majeure

1. Where for reasons of force majeure all or part of the
product to be distilled cannot undergo distillation:

(a)

(b)

if the force majeure affected the product to be distilled
while it was legally at the disposal of the producer, the
latter shall inform the intervention agency of the Member
State in which the winery is located without delay,

in all other cases, the distiller shall inform the intervention
agency of the Member State in which the distillery is
located without delay.

In the circumstances referred to in the first subparagraph, as
soon as the intervention agency has been informed, it shall
decide on the measures which it considers necessary in view
of the circumstances invoked. In particular, it may defer the
time limits.

In the circumstances referred to at

2.
in the first
subparagraph of paragraph 1, and where the producer’s winery
and the distillery are located in two different Member States,
the intervention agencies of the two Member States concerned
shall cooperate by directly exchanging information in order to
implement paragraph 1.

(a)

In the circumstances referred to at (b) in the first subparagraph
of paragraph 1, as soon as the intervention agency has
been informed, it may also authorise distillers, provided the
producer agrees in the case of a jobbing distiller, to transfer
their rights and obligations to another distiller for the quantity
of products not yet distilled.

L 194/78

EN

Official Journal of the European Communities

31.7.2000

Article 73

Article 74

Supervision of distillation operations

Infringements of this Title

1.
The characteristics of products delivered for distillation,
in particular quantity, colour and alcoholic strength, shall be
checked against:

(a)

(b)

the document provided for in Article 70 of Regulation
(EC) No 1493/1999 under cover of which the products
are transported,

an analysis of samples collected under the supervision of
an official body of the Member State in which the
distillery is located when the product enters the distillery.
Sampling may take the form of representative spot
checks,

(c) where appropriate, the contracts concluded under this

Title.

The analyses shall be performed by approved laboratories as
referred to in Article 72 of Regulation (EC) No 1493/1999,
which shall forward the results to the intervention agency of
the Member State where distillation takes place.

If, under Community rules, no document as referred to in (a)
has been drawn up, the characteristics of the product intended
for distillation shall be checked against the analyses referred to
in (b).

1.
Should verification of a file reveal that a producer does
not meet the requirements laid down by the Community rules
for the distillation operation in question, for all or part of the
products delivered, the competent intervention agency shall
inform the distiller and producer concerned accordingly.

2.
The distiller concerned shall not be required to pay the
price referred to, respectively, in Articles 27, 28, 29 and 30 of
Regulation (EC) No 1493/1999 for the quantities of products
referred to in paragraph 1.

3. Without prejudice to Article 2 of this Regulation, should
a producer or distiller fail to meet the requirements laid down
by the Community rules for the distillation operation in
question, for all or part of the products delivered for distillation:

(a)

no aid shall be due for the quantities concerned,

(b)

the distiller may not deliver the products obtained by
distilling the quantities concerned to the intervention
agency.

If the aid has already been paid, the intervention agency shall
recover it from the distiller.

A representative of an official body shall check the quantity of
product distilled, the date of distillation and the quantity and
characteristics of the products obtained.

If the products obtained by distillation have already been
delivered, the intervention agency shall recover an amount
equal to the aid specified for the operation concerned from the
distiller.

The results of the analysis of part of the wine covered by

2.
a contract shall be valid for the full quantity.

However, where the various time limits laid down by this
Regulation have not been met, it may be decided to reduce the
aid.

3. Member States may also require that an indicator be
used. They may not prevent the movement within their
territory of products intended for distillation or distilled
products obtained therefrom on the ground that an indicator
is present.

In cases where products covered by this Regulation are
delivered for distillation by more than one producer, Member
States may provide that such products are to be transported in
In such cases, checks on the characteristics of the
bulk.
products as referred to in Article 65 shall be carried out in
accordance with the detailed rules adopted by the Member
State concerned.

4. Member States availing themselves of the option pro-
vided for in paragraph 3 shall inform the Commission thereof
and shall notify it of the provisions they have adopted for this
purpose. In the cases referred to in the first subparagraph of
that paragraph,
inform the other
the Commission shall
Member States.

4.
The intervention agency shall recover from the producer
an amount equal to the aid paid to the distiller in cases where
a producer does not meet the requirements laid down by the
Community rules for the distillation operation in question, for
one of the following reasons:

(a)

failure to present the harvest, production or stock declar-
ation within the time allowed;

(b) presentation of a harvest, production or stock declaration
found by the competent authority of the Member State
to be incomplete or inaccurate, where the missing or
incorrect data are essential for application of the measure
concerned;

(c)

failure to meet the obligations laid down in Article 37 of
Regulation (EC) No 1493/1999, where the infringement
is detected or notified to the distiller after the latter has
paid the minimum price on the basis of previous
declarations.

31.7.2000

EN

Official Journal of the European Communities

L 194/79

Article 75

Penalties

1.

Except in cases of force majeure,

(a) where producers fail to fulfil their obligations under this
Title or refuse to submit to checks, no aid shall be
payable;

(b) where distillers fail to fulfil one of their obligations other
than those referred to in (a) above, the aid shall be
reduced by an amount determined by the competent
authority depending on the seriousness of the infringe-
ment.

2.
In cases of recognised force majeure, the intervention
agency shall take such action as it considers necessary having
regard to the circumstances involved.

In cases where a distiller fails to fulfil an obligation

3.
within the time allowed, the aid shall be reduced as follows:

(a)

in the case of payment of the purchase price to the
producer under Articles 47(2), 55 and 65(7), the aid shall
be reduced by 1 % per day of delay for one month. After
one month, no aid shall be paid;

(b)

in the case of:

(i)

(ii)

presentation of proof that the minimum purchase
price has been paid under Articles 60(1) and 65(8),

submission of the aid application and the proof
of payment under Articles 60(1) and the second
subparagraph of Article 64(2) and Article 65(8),

(iii) delivery of the alcohol under Article 62(1),

(iv)

submission of a statement of
the quantities of
products distilled and products obtained under
Article 61(2),

(v)

submission of a statement of the quantities delivered
for fortification under Article 71(3),

the aid shall be reduced by 0.5 % per day of delay for two
months.

After two months, no aid shall be paid.

Where an advance on aid has been paid, the corresponding
security shall be released in proportion to the aid actually due.
Where no aid is due, the security shall be forfeit.

4. Member States shall notify the Commission of cases
where they have applied paragraph 1 and of the action taken
where force majeure has been invoked.

Section IV: Reduction of the buying-in price for wine
provided for in Article 32 of Regulation (EC) No 1493/1999

Article 76

Reduction of the buying-in price for certain enriched
wines

1.
The buying-in price for wine delivered for distillation
under Articles 29 and 30 of Regulation (EC) No 1493/1999
shall be reduced by:

— EUR 0.3626 in Zone A,

— EUR 0.3019 in Zone B,

— EUR 0.1811 in Zone C.

The reduction referred to in the first subparagraph shall not
apply to:

(a) wine delivered by producers located in regions where
alcoholic strength may be increased only by the addition
of must who forego all aid made available under
Article 34 of Regulation (EEC) No 1493/1999 for the
wine year concerned. These producers shall present to
the distiller a copy of a statement waiving entitlement to
the aid concerned, stamped by the competent authority
designated by the Member State;

(b) wine taken into a distillery after the dates laid down for
the various wine-growing zones in Annex V(G)(7) to
Regulation (EC) No 1493/1999 and delivered by pro-
ducers who provide the competent authorities with
satisfactory evidence that during the wine year they have
neither increased the alcoholic strength of their table
wine by adding sucrose nor lodged an application for aid
under Article 34 of that Regulation for their production;

(c) wine and categories of wine for which the Member States
do not authorise or have not authorised an increase in
alcoholic strength for the wine year concerned.

2.
An amount equal to the reduction referred to in para-
graph 1 shall be paid for the quantity of wine delivered for
distillation as referred to in that paragraph to producers who
apply to the competent authority before 1 August, either
directly or through a distiller, and who have neither increased
the alcoholic strength of their table wine production by adding
sucrose nor applied for aid under Article 34 of Regulation (EC)
No 1493/1999 for their production during the wine year
concerned.

Producers who apply before 1 August and who have increased
alcoholic strength by adding sucrose or have applied for the
said aid during the wine year, but for less of their table wine
production than the quantity delivered for all the relevant
distillation operations during the wine year shall receive the
amount indicated in the first subparagraph for the difference
between the quantity of table wine of which they increased
the alcoholic strength and the quantity they delivered for
distillation.

L 194/80

EN

Official Journal of the European Communities

31.7.2000

The competent authorities of the Member States may require
such producers to supply any evidence needed to demonstrate
the validity of their application.

Subsection I: Disposal of alcohol for new industrial uses

Article 79

Article 77

Definition of new industrial uses

Reduction of the aid referred to in Article 81

Where wine is delivered for distillation as referred to in
Article 76 of this Regulation and where the reduction has been
applied to such wine,

(a)

the aid to be paid to the distiller,

(b)

(c)

the price to be paid to the distiller for delivery to the
intervention agency under Article 30 of Regulation (EC)
No 1493/1999 and

the EAGGF contribution to expenditure incurred by
the intervention agency in taking over alcohol under
Article 30 of Regulation (EC) No 1493/1999

shall be reduced by an amount equal to the reduction indicated
in Article 76.

CHAPTER IV

DISPOSAL OF ALCOHOL OBTAINED BY DISTILLATION
UNDER CHAPTER I OF THIS TITLE AND, WHERE APPLI-
CABLE, ARTICLE 30 OF REGULATION (EC) No 1493/1999

Article 78

Purpose and definitions

1.
This section lays down detailed rules for disposing of
alcohol obtained by distillation under Articles 27, 28 and 30
of Regulation (EC) No 1493/1999, hereinafter referred to as
‘alcohol’.

Alcohol may be disposed of either for use in new industrial
uses (subsection I), for use in third countries in the fuel sector
only (subsection II), or for use as bio-ethanol in the Community
(subsection III).

Without prejudice
to Article 31(2) of Regulation (EC)
No 1493/1999, the Commission may issue invitations to
tender for the implementation within the Community of small-
scale projects relating to new industrial end uses such as:

(a)

the heating of glasshouses,

(b)

the drying of feedingstuffs,

(c)

the fuelling of heating systems, including those at cement
works,

and processing into goods exported for industrial purposes
inward processing
by operators who have made use of
arrangements at least once in the previous two years, other
than processing consisting solely of redistillation, rectification,
dehydration, purification or denaturing of the alcohol.

If the intended use of the alcohol is export to third countries
in the form of manufactured goods, proof must be provided
that authorisation was granted during the previous two years
to use alcohol from third countries to manufacture under
inward processing arrangements the same goods as those
exported.

Article 80

Opening tendering procedures

The Commission, acting in accordance with the procedure laid
down in Article 75 of Regulation (EC) No 1493/1999, shall
issue an invitation to tender for the disposal of alcohol
obtained by distillation under Articles 27, 28 and 30 of that
Regulation for new industrial uses. The quantities of alcohol
awarded under such tendering procedures shall not exceed
400 000 hectolitres of alcohol at 100 % vol. per year.

Article 81

Notice of invitation to tender

Notices issuing invitations to tender shall be published in the
Official Journal of the European Communities.

Such notices shall specify:

2.
For the purposes of this Section, ‘tendering procedure’
shall mean the organisation of a competition among interested
parties in the form of an invitation to tender or similar
procedure, the contract being awarded to the party submitting
the most advantageous tender complying with the rules laid
down in this Regulation.

(a)

the special rules applicable to the tendering procedure
and the names and addresses of the intervention agencies
concerned,

(b)

the quantity of alcohol, expressed in hectolitres of alcohol
at 100 % vol., covered by the tendering procedure,

31.7.2000

EN

Official Journal of the European Communities

L 194/81

(c)

(d)

(e)

one or more vats constituting a lot in a given Member
State,

the minimum price which may be offered, differentiated
where appropriate according to the end uses,

the amount of the tendering security required under
Article 82(5) and the performance guarantee required
under Article 84(3)(b).

Article 82

Rules applicable to tenders

Apart from the information specified in Article 97 of

1.
this Regulation, tenders shall indicate:

(a)

(b)

the quantity of alcohol to which they relate, broken
down by vat and expressed in hectolitres of alcohol at
100 % vol.,

the number(s) of the vat(s) in which the alcohol concerned
is stored, the vats all being situated in the same Member
State,

(c)

the precise industrial use of the alcohol,

(d)

the type of goods to be exported if the alcohol is intended
for export to third countries in the form of manufactured
goods.

Tenders may indicate that they are to be considered only
2.
if the quantity to be awarded corresponds to the full quantity
indicated in the tender.

Tenderers may submit only one tender for each type of
3.
alcohol, end use and tendering procedure. If a tenderer submits
more than one tender per type of alcohol, end use or tendering
procedure, none of those tenders shall be admissible.

4.
the
Tenders must reach the intervention agency of
Member State concerned not later than 12 noon Brussels time
on the closing date set for the submission of tenders in the
notice of invitation to tender. That date must fall between the
15th and the 25th day after the date of publication of the
notice of invitation to tender.

Tenders shall be valid only if proof is provided before
5.
the closing date for the submission of tenders that a tendering
security has been lodged with the intervention agency con-
cerned.

6.
Not more than two working days after the closing date
for submission of tenders, the intervention agency concerned
shall communicate to the Commission a list of the names of
the tenderers whose tenders are eligible for consideration
under Article 97 of this Regulation, the prices offered, the
quantities requested, the locations and the types of alcohol
concerned and the precise uses to be made of the alcohol.

Article 83

Award of contracts

1.
The Commission, acting in accordance with Article 75
of Regulation (EC) No 1493/1999, shall decide whether or not
to award contracts in the light of the tenders submitted and,
where appropriate, depending on the type of end use for which
the alcohol is intended.

2.
The Commission shall draw up a list of the tenders
accepted, listing the prices offered in decreasing order until the
contracts awarded cover the entire quantity of alcohol specified
in the notice of invitation to tender.

3. Where several admissible tenders relate fully or in part
to the same vats, the Commission shall allocate the quantity of
alcohol concerned to the tenderer submitting the tender with
the highest absolute value.

When making its decision under paragraph 1 of this Article in
cases referred to in the first subparagraph where some tenders
cannot be met, the Commission may propose to the tenderers
concerned that their tenders be accepted for a replacement
quantity of alcohol of the same type. In such cases, the relevant
tenders shall be deemed to have been accepted provided that
the tenderers in question do not express their objection to
such transfer in writing to the intervention agency concerned
within 10 working days from the date of notification of the
Commission decisions referred to in (a) in paragraph 5 of this
Article.

To that end, the Commission decision shall indicate the vat in
which the replacement quantity of alcohol
in
agreement with the intervention agency concerned.

is stored,

4.
Should several tenders propose the same price so that
the quantity of alcohol tendered for exceeds the quantity
covered by the tendering procedure, the intervention agency
concerned shall award the quantity in question:

(a)

either in proportion to the quantities specified in the
tenders concerned,

(b) or by dividing that quantity among the tenderers by

agreement with them,

(c)

or by drawing lots.

5.

(a)

The Commission shall:

notify the decisions taken under this Article only to those
Member States and intervention agencies holding alcohol
for which tenders have been accepted,

(b) publish the results of the tendering procedure in a
Journal of the European

simplified form in the Official
Communities.

L 194/82

EN

Official Journal of the European Communities

31.7.2000

Article 84

Statement of award

1.
The intervention agency shall notify tenderers in writing,
without delay against a receipt, of the decision taken on their
tenders.

2.
The intervention agency shall hold a statement of award
at the disposal of each successful tenderer certifying that their
tender has been accepted.

the Commission proposes

Where
substitution under
Article 83(3) and the tenderer does not object, the intervention
agency concerned shall issue the statement of award referred
to in the first subparagraph on the working day following the
expiry of the time limit specified in the last sentence of the
second subparagraph of Article 83(3).

3. Within two weeks following the date of receipt of the
notification of award referred to in paragraph 1 of this Article
and, where the second subparagraph of paragraph 2 is applied,
within the two weeks following the date of issue of the
statement of award, each successful tenderer shall:

(a)

obtain the statement of award referred to in paragraph 2
from the intervention agency,

(b) provide the intervention agency concerned with proof
that a performance security has been lodged to ensure
in question is in fact used for the
that the alcohol
purposes specified in the tender.

Article 85

Removal of the alcohol

The alcohol may be removed on presentation of a
1.
removal order issued by the intervention agency once the
quantity to be removed has been paid for. That quantity shall
be determined to the nearest hectolitre of alcohol at 100 % vol.

2.
Ownership of the alcohol covered by a removal order
shall be transferred on the date indicated in the order, which
may not be more than five days after its date of issue, and the
quantities concerned shall be deemed to have been removed
on that date. From then on, the purchaser shall be responsible
for any theft, loss or destruction and for the storage costs of
any alcohol awaiting removal.

3.
The removal order shall state the date by which the
alcohol must be physically removed from the storehouse of
the intervention agency concerned.

The alcohol must be fully used within two years from

5.
the date of first removal.

Subsection II: Disposal of alcohol for use in third countries
in the fuel sector only

Article 86

Rules applicable to tendering procedures covered by this
subsection

The Commission, acting in accordance with the procedure laid
down in Article 75 of Regulation (EC) No 1493/1999, shall
issue several invitations to tender every quarter, each relating
to quantities of at least 50 000 hectolitres of wine alcohol and,
taken together, relating to not more than 600 000 hectolitres
of alcohol at 100 % vol., for export to certain third countries
for final use in the fuel sector only.

The alcohol concerned must:

1)

be imported into and dehydrated in one of the following
third countries:

(a) Costa Rica

(b) Guatemala

(c) Honduras, including the Swan Islands

(d)

El Salvador

(e) Nicaragua

(f)

Saint Kitts and Nevis

(g) Bahamas

(h) Dominican Republic

(i) Antigua and Barbuda

(j) Dominica

(k) British Virgin Islands and Montserrat

(l)

Jamaica

(m) Saint Lucia

(n)

Saint Vincent, including the North Grenadines

(o) Barbados

(p) Trinidad and Tobago

(q) Belize

All the alcohol must have been removed four months

4.
after the date of receipt of the notification of award.

(r) Grenada, including the South Grenadines

31.7.2000

EN

Official Journal of the European Communities

L 194/83

(s) Aruba

(t) Netherlands Antilles (Curaçao, Bonaire, Saint Eusta-
tius, Saba and the southern part of Saint Martin)

(u) Guyana

(v) United States Virgin Islands

(w) Haiti

2)

be used exclusively in the fuel sector in a third country.

Article 87

Notice of invitation to tender

3.
Tenders must also include proof, dated after the notice
of invitation to tender, that the tenderer has binding commit-
ments to an operator in the fuel sector in one of the third
countries listed in Article 86 of this Regulation who undertakes
to dehydrate the awarded alcohol in one of those countries
and to export it exclusively for use in the fuel sector.

4.
Tenders must reach the competent Commission depart-
ment no later than 12 noon Brussels time on the closing date
set for the submission of tenders in the notice of invitation to
tender.

5.
Tenders shall be valid only if proof has been provided,
before the closing date for the submission of tenders, that a
tendering security has been lodged with each intervention
agency concerned.

Notices issuing invitations to tender shall be published

1.
in the Official Journal of the European Communities.

The tendering security, amounting to EUR 4 per hectolitre of
alcohol at 100 % vol., shall be lodged for the entire quantity
put up for sale.

Such notices shall specify:

(a)

the formalities for the submission of tenders,

(b)

the final use and/or destination for which the alcohol is
intended,

(c)

the minimum price which may be offered,

(d)

(e)

the Commission department to which tenders should be
sent,

the time limit for removal of the alcohol stipulated in
Article 91(10) of this Regulation,

(f)

the formalities for obtaining samples,

(g)

the payment terms,

(h) whether the alcohol is to be denatured.

2.
Each notice of invitation to tender shall relate to a single
lot, although the alcohol constituting the lot may be located in
several Member States.

Notices of invitation to tender may rule out some of the

3.
destinations listed in point 1 of Article 86.

Article 88

Tenders

1.
Tenderers may submit only one tender in response to
each invitation to tender under this subsection; if a tenderer
submits more than one, none of
those tenders shall be
admissible.

For the purposes of paragraph 5,

6.
agencies concerned:

the intervention

(a)

(b)

shall immediately issue tenderers with a statement certify-
ing that
the tendering security has been lodged for
the quantities for which each intervention agency is
responsible,

shall forward a list of the tendering securities checked
and accepted to the Commission not more than two
working days after the closing date for submission of
tenders.

7.
For the purposes of the tendering security, the primary
requirements within the meaning of Article 20 of Commission
Regulation (EEC) No 2220/85 shall be that tenders not be
withdrawn after the closing date for their submission and that
a security to ensure export and/or a performance guarantee be
lodged.

Article 89

Award of contracts

The Commission, acting in accordance with the pro-
1.
cedure
laid down in Article 75 of Regulation (EC)
No 1493/1999, shall decide as quickly as possible whether or
not to award contracts in the light of the tenders submitted.

2.
Should a contract be awarded, the Commission shall
accept the most favourable tender. If two or more tenders
quote the same price, the Commission shall make the award
by drawing lots.

To be eligible for consideration, tenders must indicate
2.
the final destination of the alcohol awarded and contain an
undertaking by the tenderer to comply with that destination.

3.

(a)

The Commission shall:

inform tenderers in writing against a receipt if their
tenders have not been accepted,

L 194/84

EN

Official Journal of the European Communities

31.7.2000

(b) notify the Member States holding the alcohol and the

successful tenderer of its decision to award the alcohol,

(c)

publish the results of the tendering procedure in a
simplified form in the Official
Journal of the European
Communities.

4.
The tendering securities required under Article 88(5) of
this Regulation shall be released where tenders are not accepted
and once the successful tenderer has lodged in full both
the export security and the performance guarantee for the
tendering procedure concerned.

Article 90

Statement of award

The intervention agency shall hold a statement of award at the
disposal of successful tenderers certifying that their tender has
been accepted.

Statements must be issued no more than 20 days after receipt
of
the notification from the Commission referred to in
Article 89(3) of this Regulation.

Article 91

Removal of the alcohol

The intervention agency holding the alcohol and the
1.
successful tenderer shall agree on a provisional timetable for
the removal of the alcohol.

2.
Before any alcohol is removed and no later than the day
on which the removal order is issued, successful tenderers shall
lodge two securities with the intervention agency: one to
ensure that the alcohol is exported within the time allowed
and the other by way of a performance guarantee.

The performance guarantee shall amount to EUR 30 per

3.
hectolitre of alcohol at 100 % vol.

4.
The export security shall amount to EUR 3 per hectolitre
of alcohol at 100 % vol. and shall be lodged for each quantity
of alcohol covered by a removal order.

If the final result of the analyses of this sample reveals a
discrepancy between the alcoholic strength by volume of the
alcohol to be removed and the minimum alcoholic strength
by volume of the alcohol specified in the notice of invitation
to tender, the following rules shall apply:

(a)

the intervention agency shall inform the Commission,
the storer and the successful tenderer thereof on the same
day;

(b)

the successful tenderer may:

(i)

either agree to take over the lot with the character-
istics determined by the analysis, provided the
Commission so agrees,

(ii) or refuse to take over the lot concerned.

In either case, the successful tenderer shall inform the inter-
vention agency and the Commission on the same day, in the
manner specified in Annex V to this Regulation.

Once this requirement has been met, successful tenderers who
refuse to take over the lot concerned shall be immediately
released from all obligations relating to that lot.

6. Where a successful tenderer refuses the merchandise,
in accordance with paragraph 5, the intervention agency
concerned shall supply another quantity of alcohol of the
required quality at no additional cost within no more than
eight days.

The alcohol may be removed on presentation of a
7.
removal order issued by the intervention agency holding the
alcohol once the quantity to be removed has been paid for.
That quantity shall be determined to the nearest hectolitre of
alcohol at 100 % vol.

Each removal order shall cover a quantity of at least 2 500 hec-
tolitres, except in the case of the last removal in each Member
State.

The removal order shall state the date by which the alcohol
must be physically removed from the storehouse of the
intervention agency concerned. That date may be no more
than five days later.

8.
Ownership of the alcohol covered by a removal order
shall be transferred on the date indicated in the order, which
may be no more than five days later, and the corresponding
quantities shall be deemed to have been removed on that date.
From then on, the purchaser shall be responsible for any theft,
loss or destruction and for the storage costs of any alcohol
awaiting removal.

5.
Before the awarded alcohol is removed, the intervention
agency and the successful tenderer shall take a reference
sample and analyse it to verify the alcoholic strength of the
alcohol, expressed in % vol.

9.
If, by the fault of the intervention agency, the alcohol
cannot be physical removed until more than five working days
after the date on which the successful tenderer agreed to
remove the lot, the Member State shall be required to bear any
losses sustained.

31.7.2000

EN

Official Journal of the European Communities

L 194/85

10.
All the alcohol must have been physically removed
from the storehouses of each intervention agency concerned
within six months.

— a copy of the plans of the plant for producing bio-ethanol
for the fuel sector, and an indication of production
capacity and type,

The alcohol must be fully used within two years from

11.
the date of first removal.

12.
The intervention agency concerned shall release the
export security for each quantity of alcohol for which it
receives proof of export within the time allowed. Notwith-
standing Article 23 of Regulation (EEC) No 2220/85, except
in cases of force majeure, when the time limit for export is
exceeded, the following percentages of the export security of
EUR 5 per hectolitre of alcohol at 100 % vol. shall be forfeit:

(a) 15 % in all cases,

(b) 0.33 % of the amount remaining after deduction of the
15 % per day of delay after the export deadline concerned.

The performance guarantee shall be released in accord-

13.
ance with Article 100(3)(b) of this Regulation.

Subsection III: Disposal for use as bio-ethanol

in the

Community

Article 92

— a copy of the authorisation from the national authorities

to operate the plant,

— certificates from the national authorities attesting that the
plant uses only alcohol as bio-ethanol, and that the bio-
ethanol is used only in the fuel sector,

— the location of the administrative offices of the refining
companies authorised to distribute fuel up to the con-
sumption stage, unless the approved firm deals with
distribution itself.

The Commission shall assess the eligibility of the firm on the
basis of the documents and shall inform the applicant firms of
the outcome of this assessment.

Article 93

Public sale

Notices of public sale of alcohol shall be published in the

1.
Official Journal of the European Communities.

Such notices shall specify:

(a)

the volume of alcohol offered for sale,

Rules applicable to disposal covered by this subsection

(b)

the vats and their location,

this Regulation,

1. Within three months of the decision referred to in
Article 89 of
the Commission, acting in
accordance with the procedure laid down in Article 75 of
Regulation (EC) No 1493/1999, may start public sales with a
view to disposing of the alcohol.

(c)

the sale price,

(d)

the amount of the performance guarantee; however, firms
may choose to lodge a standing guarantee instead of a
guarantee for each sale,

(e)

the formalities for obtaining samples,

The alcohol shall be awarded to firms established in the

2.
European Community and must be used in the fuel sector.

(f)

the payment terms.

3.
A list of firms approved for such purposes shall be drawn
up. The list shall be published in the ‘C’ series of the Official
Journal of the European Communities and updated regularly.

The Member States shall notify the Commission of the names
of the firms they deem eligible, and which have presented an
application with the following supporting documents:

— a declaration by the firm stating that it is capable of using

at least 50 000 hl of alcohol a year,

— the location of the firm’s administrative offices and the

plant where the alcohol is processed,

2.
The quantity of alcohol offered for sale shall be split into
lots of equal size. The Commission shall determine the
the lots. Unless the Commission decides
composition of
otherwise in accordance with the procedure laid down in
Article 75 of Regulation (EC) No 1493/1999, a lot shall be
made for each firm on the approved list and each firm on the
list shall be allocated a lot. Should a firm not accept the alcohol
offered for sale,
it must notify the Commission and the
intervention agency thereof no more than 30 days after the
date of publication of the notice of public sale of alcohol.
Alcohol which has not been accepted shall be released from
the prohibition on physical movement under Article 95(2) of
this Regulation from the date on which the refusal was notified
and may be sold during a subsequent sale.

L 194/86

EN

Official Journal of the European Communities

31.7.2000

3.
The alcohol shall be sold at the highest price awarded
during the most recent tendering procedure as referred to in
subsection II of Chapter III, plus an amount per hectolitre fixed
in accordance with the procedure laid down in Article 75 of
Regulation (EC) No 14933/1999.

2.
Once the information referred to in the second subpara-
graph of paragraph 1 has been forwarded to the Commission,
the alcohol in the vats concerned may not be moved until a
removal order covering it has been issued.

The Commission shall notify the Member States holding
4.
the alcohol and the firms concerned of the award of the
alcohol.

5.
Except where they have lodged a standing security,
within 30 days of the date of the notification referred to in
paragraph 2, purchasing firms shall supply proof that they
have lodged a performance guarantee with the intervention
agency concerned to ensure that the alcohol is used as bio-
ethanol in the fuel sector.

This prohibition shall not relate to alcohol in vats not covered
by the notices of invitation to tender or public sale concerned
and not specified in the Commission decision referred to in
Articles 83 to 89 of this Regulation.

For logistic reasons in particular, the intervention agencies
holding the vats of alcohol indicated in the communication
from the Member States referred to in paragraph 1 of this
Article may replace the alcohol concerned with other alcohol
of the same type, provided the Commission agrees, or mix it
with other alcohol delivered to the intervention agency, until
a removal order is issued for the alcohol concerned.

6.
All the alcohol must be removed no more than three
months after the date of notification of the Commission’s
decision to award the sale.

3.
Each month the Member States holding alcohol covered
by a tendering procedure or a public sale shall inform the
Commission of the progress made with the physical removal
of the alcohol concerned.

Article 94

Removal of the alcohol

Article 96

Rules applicable to lots

Article 91(1), (7), (8) and (11) of this Regulation shall apply to
public sales.

1.

The alcohol shall be sold in lots.

Subsection IV: General provisions and control arrangements

Article 95

Rules applicable to alcohol

1. With a view to drawing up notices of invitation to tender
and public sale, the Commission shall request each Member
State concerned to inform it of:

(a)

the quantity of alcohol, expressed in hectolitres of alcohol
at 100 % vol., that may be offered for sale,

(b)

the type of alcohol concerned,

(c)

the quality of the lots of alcohol, laying down maximum
and minimum values for the characteristics referred to in
Article 96(4)(d)(i) and (ii) of this Regulation.

No more than 12 days after receiving this request, the Member
States concerned shall inform the Commission of the exact
location and references of the various vats of alcohol meeting
the quality requirements and containing a total quantity of
alcohol not less than that referred to in (a)
in the first
subparagraph of this paragraph.

A lot shall consist of a quantity of alcohol of sufficiently
2.
uniform quality, which may be contained in several vats and
kept at several locations and in several Member States.

Each lot shall be numbered. The letters ‘EC’ shall precede

3.
the numbers of the lots.

Each lot shall be described. At

4.
information shall be given:

least

the following

(a)

(b)

(c)

(d)

the location of the lot, including a reference identifying
each vat containing the alcohol, and the quantity of
alcohol in each vat;

the total quantity, expressed in hectolitres of alcohol at
100 % vol. The quantity may vary up to 1 %;

the minimum alcoholic strength of the alcohol in each
vat, expressed in % vol.;

if possible, the quality of the lot, specifying upper and
lower limits for the following:

(i)

(ii)

the acidity, expressed in grams of acetic acid per
hectolitre of alcohol at 100 % vol.,

the methanol content, expressed in grams per
hectolitre of alcohol at 100 % vol.;

31.7.2000

EN

Official Journal of the European Communities

L 194/87

(e)

reference to the intervention measure which gave rise to
the production of the alcohol, specifying the relevant
Article of Regulation (EC) No 1493/1999.

5. Where a tendering procedure concerns more than two
lots, only the first lot or the first two lots, of one million
hectolitres of alcohol at 100 % vol., shall be described in
accordance with paragraph 4.

the alcohol offered for sale, against payment of EUR 2 per
litre. The quantity made available to each interested party must
not exceed five litres per vat. For disposal as referred to in
subsection III, the sample may be obtained, for the same
consideration, within 30 days of the notice of public sale.

2.

After the closing date for the submission of tenders:

Article 97

(a)

the tenderer or the approved firm referred to in Article 92
may obtain samples of the alcohol awarded,

General rules applicable to tenders

To be eligible for consideration, tenders must be submit-
1.
ted in writing and must include, in addition to the specific
information referred to in subsections I or II:

(a)

the reference number of the notice of invitation to tender,

(b)

the name and address of the tenderer,

(c)

(d)

the price proposed, expressed in euros per hectolitre of
alcohol at 100 % vol.,

an undertaking from tenderers to comply with all the
rules applicable to the tendering procedure concerned,

(e)

a statement by tenderers to the effect that:

(i)

(ii)

(iii)

they waive all claims in respect of the quality and
characteristics of the alcohol awarded to them,

they agree to submit to any checks made on the
destination and use of the alcohol,

they accept that it is their responsibility to provide
evidence that the alcohol is used as specified in the
notice of invitation to tender.

2.

Tenders shall be valid only if:

(a)

the tenderer is established in the Community,

(b)

they relate to the entire lot.

3.

Tenders eligible for consideration may not be withdrawn.

4.
Tenders may be rejected if tenderers do not provide
all the necessary guarantees that they will carry out their
obligations.

Article 98

Samples

On publication of a notice of invitation to tender and
1.
until the closing date for the submission of tenders in response
to such invitation, all interested parties may obtain samples of

(b)

tenderers or approved firms referred to in Article 92 to
whom a substitution is proposed under Article 83(3) of
this Regulation may obtain samples of the replacement
alcohol proposed.

Such samples may be obtained from the intervention agency
against payment of EUR 10 per litre, quantities not exceeding
five litres per vat.

3.
The intervention agency of the Member State in whose
territory the alcohol is held shall take the necessary steps to
enable interested parties to avail themselves of the right
referred to in paragraph 2.

4.
If a successful tenderer or approved firm finds, before
the date set in Article 92, Article 85, Article 91 or Article 94
of this Regulation for removal of the lot of alcohol concerned,
that a quantity of alcohol awarded is unsuitable for the uses
planned owing to hidden defects that by their nature could not
be discovered at the time when it was possible for a check to
be made before the alcohol was awarded, the Commission
may indicate a replacement quantity, in agreement with the
relevant intervention agency, provided the latter confirms the
tenderer’s finding. The vat in which the replacement quantity is
stored shall be determined in agreement with the intervention
agency concerned. Where tenderers do not object to the
transfer by writing to the intervention agency concerned
within ten working days of the date of notification of the
Commission’s decision indicating the replacement quantity,
they shall be deemed to have agreed to the substitution.

Article 99

Requirements applicable to denaturing and/or marking

1.
If alcohol is to be denatured, the operation must take
place under the supervision of the Member States concerned
between the time when the removal order is handed over and
the time when the alcohol is physically removed. The cost of
such denaturing shall be borne by the successful tenderer.

L 194/88

EN

Official Journal of the European Communities

31.7.2000

Denaturing shall involve adding petrol, in the ratio of

2.
1:100, to the quantity of alcohol at 100 % vol.

Denaturing may be carried out in a vat provided for this

3.
purpose.

Article 100

Requirements applicable to securities

For the purposes of this Regulation:

1)

(a)

the tendering security,

for the purposes of
the
primary requirements within the meaning of
Article 20 of Regulation (EEC) No 2220/85 shall be
that tenders not be withdrawn after the closing
date for their submission and that a performance
guarantee be lodged;

(b)

for the purposes of the performance guarantee,
the primary requirements within the meaning of
Article 20 of Regulation (EEC) No 2220/85 shall be
that the alcohol removed be actually used for the
tendering
purposes specified under the relevant
procedure and that the entire quantity of alcohol
be physically removed from the stores of each
intervention agency concerned within the time
allowed.

2)

(a) The alcohol awarded must be used entirely for
the purposes specified in the invitation to tender
concerned, allowing for any losses of alcohol during
the transport or processing operations required for
the final use of the alcohol.

Each individual loss of alcohol shall be accepted
only if it has been checked at the final destination
and, in the case of alcohol for export, at the place
where it left the customs territory of the Community,
and certified by the competent inspection authority
and/or international surveillance firm where such a
firm has been appointed under Article 102, provided
that such losses are within the limits specified in
point (b) below.

(b) Where alcohol losses during the operations referred
to below exceed the following limits, EUR 96 per
hectolitre shall be withheld from the performance
guarantee, except in cases of force majeure:

(i)

0.05 % of the quantities of alcohol stored per
month in the case of an alcohol loss due to
evaporation,

(ii) 0.4 % of the quantities of alcohol removed
from storage in the case of an alcohol loss due
to one or more land transport operations,

(iii) 1 % of the quantities of alcohol removed from
storage in the case of alcohol losses due to one
or more land transport operations combined
with one or more sea or inland waterway
transport operations,

(iv) 2 % of the quantities of alcohol removed from
storage in the case of alcohol losses due to land
and sea transport required in connection with
a tendering procedure for export of alcohol to
one of the third countries listed in Article 86
of this Regulation,

(v) 0.9 % of the quantities of alcohol rectified in
the case of an alcohol loss due to rectification
in the Community,

(vi) 0.9 % of the quantities of alcohol dehydrated
in the case of an alcohol loss due to dehydration
in the Community,

(vii) 1.2 % of the quantities of alcohol rectified in
the case of an alcohol loss due to rectification
in one of the third countries listed in Article 86
to this Regulation,

(viii) 1.2 % of the quantities of alcohol dehydrated
in the case of an alcohol loss due to dehydration
in one of the third countries listed in Article 86
to this Regulation.

The fourth and/or fifth percentage may be added to
the first two percentages.

The sixth and/or seventh percentage may be added
to the third percentage.

When applying the abovementioned percentages,
the quantities of alcohol shall be determined on the
basis of tonnage certificates or similar documents
issued by the competent inspection authorities.

(c)

In the case of alcohol awarded for a new industrial
use which must be rectified prior to the final use
intended, the alcohol removed shall be deemed to
have been used entirely for the specified purpose
where at least 90 % of the total quantities of alcohol
removed under a tendering procedure is used for
those purposes; the successful tenderer shall inform
the Commission of the quantity, destination and use
of the products rectified. However, losses may not
exceed the limits specified in point (b).

3)

(a) The tendering security shall be released immediately
if
the
the tender has not been accepted or if
successful tenderer has met the requirements laid
down in paragraph 1(a).

(b) The performance guarantee

shall be

released
immediately by each of the intervention agencies
holding alcohol once the successful tenderer pro-
vides them each with the proof required in points 2
and 3 and in Title V of Regulation (EEC)
No 2220/85, for the relevant quantity removed.

31.7.2000

EN

Official Journal of the European Communities

L 194/89

(c) Notwithstanding Article 27 of Regulation (EEC)
No 2220/85, 10 % of the performance guarantee
shall be withheld until the successful tenderer pro-
vides each intervention agency concerned with proof
that the relevant quantity of alcohol removed has
been used,
in
connection with the tendering procedure concerned.
If such proof is not produced within 12 months
after the date specified for the final use of the
alcohol, EUR 96 per hectolitre shall be withheld on
the quantities of alcohol lost over and above the
limits specified in paragraph 2.

indicating any losses of alcohol

Article 102

Use of surveillance firms

The notice of
invitation to tender may stipulate that an
international surveillance firm is to be used to check on the
proper conduct of the tendering procedure, particularly the
final destination and/or end use of the alcohol. The cost of
such services shall be borne by the successful tenderer, as shall
the cost of analysis and verification pursuant to Article 99 of
this Regulation.

Article 101

Control arrangements

TITLE IV

FINAL PROVISIONS

Article 103

The Member States concerned shall take the necessary
1.
steps to facilitate operations under this Chapter and to ensure
that the applicable Community rules are complied with. They
shall designate one or more bodies to be responsible for
checking compliance with those rules.

The checks shall be at least equivalent to those used to monitor
home-produced alcohol but must include:

Notifications to the Commission

The Member States shall communicate to the Com-

1.
mission:

(a)

for distillation under Article 29 of Regulation (EC)
No 1493/1999, every month:

(i)

the quantities of wine distilled,

(a)

physical checks on the quantity of alcohol transported,

(ii)

the quantities of alcohol concerned by secondary
aid

(b)

verification of the use made of the alcohol, by frequent
spot checks at least once per month,

(b)

every two months, for each type of distillation under
Articles 27, 28 and 30 of Regulation (EC) No 1493/1999:

(c)

verification of accounts, records, utilisation procedures
and stocks.

If the alcohol has been denatured checks shall be made at least
every two months.

2.
The Member States shall determine which documents,
records and other supporting evidence or information must be
supplied by the successful tenderer. They shall
inform the
Commission of the checks they introduce to apply paragraph
1. The Commission shall send the Member State concerned
any comments required to ensure that checks are effective.

The measures taken by the Member States shall be

3.
notified to the Commission before the checks start.

(i)

(ii)

the quantities of wine, wine lees and fortified wine
distilled,

distinguishing where applicable between neutral
alcohol, raw alcohol and spirits:

— quantities produced during the previous period,

— quantities taken over by their intervention
agencies under Community or national rules
during the previous period,

— quantities disposed of by those intervention

agencies during the previous period,

— quantities held by those intervention agencies

at the end of the previous period.

In the case of quantities disposed of by the intervention
agencies, the Member States concerned shall also com-
municate the selling prices charged and indicate whether
the products have been consigned within the Community
or exported;

L 194/90

EN

Official Journal of the European Communities

31.7.2000

(c)

ten days before the end of every quarter, the outcome of
applications invoking force majeure and the steps taken in
those instances by the competent authorities in the cases
referred to in:

(i) Article 9,

(ii) Article 10,

(iii) Article 11(3),

(iv) Article 15,

(v) Article 16,

(vi) Article 20(4), (5) and (6),

(vii) Article 36,

(viii) Article 37,

(ix) Article 72,

(x) Article 75(1),

(xi) Article 100(2)(b);

(d) not later than 31 December of the current wine year, for
private storage aid under Chapter I of Title III of
Regulation (EC) No 1493/1999 and Title II of
this
Regulation:

— the quantities of grape must processed into concen-
trated grape must or rectified concentrated grape
must during the period of validity of the contract,
and the quantities obtained thereby;

(e)

not later than 5 March of the current wine year:

— for private storage aid under Chapter I of Title III of
Regulation (EC) No 1493/1999 and Title II of this
Regulation:

— the quantities of products under contract on

16 February;

— for

aid under Article 34 of Regulation (EC)
No 1493/1999 and Chapter II of Title I of this
Regulation:

— the number of producers who have received

aid,

— the quantities of wine enriched,

— the quantities of concentrated grape must and
rectified concentrated grape must used for
enrichment expressed in degrees of potential
alcoholic strength by vol. per hectolitre;

(f)

for the previous wine year, not later than 30 April:

(i)

for aid under Article 35(1)(a) of Regulation (EC)
No 1493/1999 and Chapter I of Title I of this
Regulation:

— the quantities of raw materials covered by aid
applications, broken down by type of raw
material and by wine-growing zone of origin;

— the quantities of raw materials for which aid
has been granted, broken down by type of raw
material and by wine-growing zone of origin;

(ii)

in the case of aid as referred to in Article 35(1)(b)
and (c) of Regulation (EC) No 1493/1999 and
Chapter II of Title I of this Regulation:

— the quantities of grape must and concentrated
grape must covered by aid applications, broken
down by wine-growing zone of origin;

— the quantities of grape must and concentrated
grape must in receipt of aid, broken down by
wine-growing zone of origin;

— the prices paid by manufacturers and operators
for the grape must and concentrated grape
must;

(iii) cases where distillers or fortifiers of wine for distil-
lation have not fulfilled their obligations and the
action taken in consequence.

Article 104

Dates and time limits

The periods, dates and time limits referred to in this Regulation
shall be determined in accordance with Regulation (EEC,
Euratom) No 1182/71. However, Article 3(4) of that Regu-
lation shall not apply when determining the duration of
storage periods under Title II of this Regulation.

Article 105

Repeal

Regulations (EEC) No 2682/77, No 1059/83, No 3461/85,
No 2641/88,
No 441/88,
No 2721/88, No 2728/88, No 3105/88, No 1238/92,
No 377/93 and No 2192/93 are hereby repealed.

No 2640/88,

No 2598/88,

31.7.2000

EN

Official Journal of the European Communities

L 194/91

Article 106

Entry into force

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

It shall apply from 1 August 2000.

However, the following Regulations shall continue to apply
until 31 August 2000 to products from the 1999/2000 wine
year:

— Regulation (EEC) No 1059/83,

— Regulation (EEC) No 2640/88,

— Regulation (EEC) No 2641/88,

— Regulation (EEC) No 2721/88,

— Regulation (EEC) No 2728/88,

— Regulation (EEC) No 3105/88.

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

Done at Brussels, 25 July 2000.

For the Commission

Franz FISCHLER

Member of the Commission

L 194/92

EN

Official Journal of the European Communities

31.7.2000

ANNEX I

Table of equivalence between the potential alcoholic strength and the readings at 20 °C from a refractometer
used in accordance with the method laid down in Annex XVIII to Regulation (EC) No 1622/2000 establishing
a Community code of oenological practices and processes

(Article 13 of this Regulation)

Refractomete, reading
% (p/p)

Potential alcoholic strenghth
(% vol)

Concentrated must

Rectified
concentrated must

Refractomete, reading
% (p/p)

Potential alcoholic strenghth
(% vol)

Concentrated must

Rectified
concentrated must

50,9

51,0

51,1

51,2

51,3

51,4

51,5

51,6

51,7

51,8

51,9

52,0

52,1

52,2

52,3

52,4

52,5

52,6

52,7

52,8

52,9

53,0

53,1

53,2

53,3

53,4

53,5

53,6

53,7

53,8

53,9

54,0

54,1

54,2

54,3

54,4

54,5

54,6

54,7

34,62

34,69

34,76

34,82

34,89

34,96

35,06

35,16

35,25

35,35

35,45

35,55

35,63

35,70

35,77

35,85

35,95

36,05

36,14

36,23

36,32

36,41

36,49

36,56

36,63

36,71

36,81

36,91

37,01

37,11

37,20

37,30

37,38

37,45

37,53

37,60

37,69

37,78

37,87

39,07

39,17

39,26

39,35

39,45

39,54

39,63

39,73

39,83

39,93

40,02

40,12

40,22

40,30

40,40

40,50

40,59

40,69

40,79

40,89

40,99

41,09

41,18

41,28

41,37

41,47

41,56

41,66

41,76

54,8

54,9

55,0

55,1

55,2

55,3

55,4

55,5

55,6

55,7

55,8

55,9

56,0

56,1

56,2

56,3

56,4

56,5

56,6

56,7

56,8

56,9

57,0

57,1

57,2

57,3

57,4

57,5

57,6

57,7

57,8

57,9

58,0

58,1

58,2

58,3

58,4

58,5

58,6

37,94

38,02

38,09

38,16

38,26

38,36

38,46

38,56

38,66

38,76

38,86

38,95

39,06

39,12

39,19

39,26

39,32

39,42

39,52

39,62

39,72

39,82

39,92

39,99

40,07

40,14

40,21

40,31

40,41

40,51

40,60

40,69

40,78

40,85

40,93

40,99

41,08

41,17

41,27

41,86

41,95

42,04

42,14

42,23

42,33

42,44

42,54

42,64

42,74

42,83

42.93

43.04

43.13

43.23

43.32

43.42

43.52

43.62

43.72

43.81

43.92

44.02

44.12

44.22

44.31

44.41

44.51

44.61

44.71

44.81

44.91

45.01

45.11

45.21

45.30

45.40

45.50

45.61

31.7.2000

EN

Official Journal of the European Communities

L 194/93

Refractomete, reading
% (p/p)

Potential alcoholic strenghth
(% vol)

Concentrated must

Rectified
concentrated must

Refractomete, reading
% (p/p)

Potential alcoholic strenghth
(% vol)

Concentrated must

Rectified
concentrated must

58,7

58,8

58,9

59,0

59,1

59,2

59,3

59,4

59,5

59,6

59,7

59,8

59,9

60,0

60,1

60,2

60,3

60,4

60,5

60,6

60,7

60,8

60,9

61,0

61,1

61,2

61,3

61,4

61,5

61,6

61,7

61,8

61,9

62,0

62,1

62,2

62,3

62,4

62,5

62,6

62,7

62,8

62,9

63,0

63,1

63,2

63,3

41,37

41,47

41,57

41,67

41,77

41,87

41,97

42,06

42,14

42,23

42,31

42,38

42,46

42,53

42,63

42,73

42,83

42,93

43,03

43,12

43,20

43,27

43,35

43,42

43,51

43,60

43,69

43,79

43,89

43,99

44,08

44,18

44,28

44,38

44,48

44,58

44,65

44,73

44,80

44,88

44,97

45,05

45,14

45,24

45,34

45,44

45,54

45.71

45.80

45.91

46,01

46.11

46.22

46.32

46,43

46.53

46.64

46.74

46.83

46.93

47.03

47.12

47.23

47.34

47.44

47.55

47.65

47.75

47.85

47,94

48,04

48,14

48,25

48,36

48,46

48,57

48,67

48,79

48,89

48,99

49,10

49,20

49,30

49,40

49,50

49,60

49,71

49,81

49,91

50,02

50,12

50,23

50,34

50,45

63,4

63,5

63,6

63,7

63,8

63,9

64,0

64,1

64,2

64,3

64,4

64,5

64,6

64,7

64,8

64,9

65,0

65,1

65,2

65,3

65,4

65,5

65,6

65,7

65,8

65,9

66,0

66,1

66,2

66,3

66,4

66,5

66,6

66,7

66,8

66,9

67,0

67,1

67,2

67,3

67,4

67,5

67,6

67,7

67,8

67,9

68,0

45,64

45,74

45,84

45,94

46,03

46,11

46,18

46,26

46,33

46,42

46,51

46,60

46,70

46,80

46,90

46,99

47,09

47,21

47,31

47,41

47,51

47,61

47,71

47,82

47,92

48,02

48,12

48,21

48,30

48,40

48,49

48,58

48,67

48,76

48,86

48,95

49,04

49,14

49,23

49,33

49,42

49,52

49,61

49,71

49,81

49,90

50,00

50,56

50,67

50,77

50,88

50,99

51,08

51,18

51,29

51,39

51,49

51,60

51,71

51,81

51,92

52,03

52,14

52,25

52,36

52,46

52,57

52,68

52,79

52,90

53,01

53,12

53,22

53,34

53,44

53,54

53,64

53,75

53,86

53,96

54,08

54,18

54,29

54,40

54,51

54,62

54,73

54,83

54,95

55,06

55,17

55,28

55,40

55,50

L 194/94

EN

Official Journal of the European Communities

31.7.2000

Refractomete, reading
% (p/p)

Potential alcoholic strenghth
(% vol)

Concentrated must

Rectified
concentrated must

Refractomete, reading
% (p/p)

Potential alcoholic strenghth
(% vol)

Concentrated must

Rectified
concentrated must

68,1

68,2

68,3

68,4

68,5

68,6

68,7

68,8

68,9

69,0

69,1

69,2

69,3

69,4

69,5

69,6

69,7

69,8

69,9

70,0

70,1

70,2

70,3

70,4

70,5

70,6

70,7

70,8

70,9

71,0

71,1

71,2

71,3

71,4

71,5

71,6

71,7

71,8

71,9

72,0

72,1

72,2

72,3

72,4

72,5

72,6

72,7

50,10

50,20

50,30

50,40

50,50

50,60

50,70

50,80

50,90

50,99

51,09

51,19

51,28

51,38

51,47

51,57

51,66

51,76

51,86

51,95

52,05

52,14

52,24

52,33

52,43

52,53

52,62

52,72

52,81

57,91

53,01

53,11

53,21

53,31

53,41

53,51

53,61

53,71

53,81

53,91

54,00

54,10

54,20

54,30

54,40

54,50

54,60

55,61

55,72

55,83

55,94

56,06

56,16

56,28

56,38

56,50

56,61

56,72

56,83

56,94

57,06

57,17

57,28

57,39

57,51

57,62

57,72

57,84

57,95

58,07

58,18

58,29

58,41

58,52

58,63

58,74

58,86

58,97

59,09

59,20

59,31

59,42

59,53

59,65

59,76

59,88

59,99

60,11

60,22

60,33

60,45

60.56

60.68

60.79

72,8

72,9

73,0

73,1

73,2

73,3

73,4

73,5

73,6

73,7

73,8

73,9

74,0

74,1

74,2

74,3

74,4

74,5

74,6

74,7

74,8

74,9

75,0

75,1

75,2

75,3

75,4

75,5

75,6

75,7

75,8

75,9

76,0

76,1

76,2

76,3

76,4

76,5

76,6

76,7

76,8

76,9

77,0

77,1

77,2

77,3

77,4

54,70

54,80

54,90

55,00

55,10

55,20

55,30

55,40

55,50

55,60

55,70

55,80

55,90

56,00

56,09

56,19

56,29

56,39

56,49

56,59

56,69

56,79

56,89

60.91

61.02

61.14

61.25

61.37

61.48

61.60

61.72

61.83

61.94

62.06

62.18

62.28

62.41

62.52

62.64

62.76

62.87

62,99

63.10

63,23

63.33

63.46

63.58

63.69

63.81

63.93

64.05

64.16

64.28

64.41

64.54

64.66

64.78

64.89

65,02

65,13

65,25

65,37

65,49

65,61

65,74

65,87

65,99

66,09

66,21

66,31

31.7.2000

EN

Official Journal of the European Communities

L 194/95

Refractomete, reading
% (p/p)

Potential alcoholic strenghth
(% vol)

Concentrated must

Rectified
concentrated must

Refractomete, reading
% (p/p)

Potential alcoholic strenghth
(% vol)

Concentrated must

Rectified
concentrated must

77,5

77,6

77,7

77,8

77,9

78,0

78,1

78,2

78,3

78,4

78,5

78,6

66,45

66,58

66,71

66,82

66,94

67,06

67,19

67,29

67,41

67,52

67,65

67,77

78,7
78,8
78,9
79,0
79,1
79,2
79,3
79,4
79,5
79,6
79,7
79,8
79,9

67,89
68,02
68,14
68,26
68,38
68,51
68,62
68,75
68,87
69,00
69,12
69,24
69,35

L 194/96

EN

Official Journal of the European Communities

31.7.2000

Minimum quality requirements for table wines provided for in Article 27(b)(i) of this Regulation

ANNEX II

I. White wines

(a) Minimum actual alcoholic strength: 10.5 % vol.

(b) Maximum volatile acidity: 9 milliequivalents per litre

(c) Maximum sulphur dioxide content: 155 milligrams per litre

II. Red wines

(a) Minimum actual alcoholic strength: 10.5 % vol.

(b) Maximum volatile acidity: 11 milliequivalents per litre

(c) Maximum sulphur dioxide content: 115 milligrams per litre

Rosé wines must comply with the requirements laid down above for red wines, except as regards their sulphur dioxide content,
which must comply with the maximum levels fixed for white wines.

However, red table wines from the Portugieser vine varieties and white table wines from the Sylvaner, Müller-Thurgau and Riesling
vine varieties shall not be required to comply with points (a) and (c) above.

31.7.2000

EN

Official Journal of the European Communities

L 194/97

ANNEX III

Definition of neutral alcohol referred to in Article 43 of this Regulation

1.

Organoleptic characteristics

No extraneous flavour detectable
in the raw material

2. Minimum alcoholic strength by volume:

96 % vol.

3. Maximum values of residue elements:

— Total acidity

expressed in g of acetic acid per hl of alcohol at 100 % vol.

— Esters

expressed in g of ethyl acetate per hl of alcohol at 100 % vol.

— Aldehydes

expressed in g of acetaldehyde per hl of alcohol at 100 % vol.

— Higher alcohols

expressed in g of 2-methylpropanol-1 per hl of alcohol at 100 % vol.

— Methanol

expressed in g per hl of alcohol at 100 % vol.

— Dry extract

expressed in g per hl of alcohol at 100 % vol.

— Volatile bases containing nitrogen

expressed in g of nitrogen per hl of alcohol at 100 % vol.

1.5

1.3

0.5

0.5

50

1.5

0.1

— Furfural

Not detectable

L 194/98

EN

Official Journal of the European Communities

31.7.2000

ANNEX IV

Community analysis method for neutral alcohol

For the purposes of this Annex:

(a)

(b)

the repeatability limit is the value below which the absolute difference between two single test results obtained
under the same conditions (same operator, same apparatus, same laboratory and a short interval of time) may
be expected to lie with a specified probability;

the reproducibility limit is the value below which the absolute difference between two single test results
obtained under different conditions (different operators, different apparatus and/or different laboratories and/or
different time) may be expected to lie with a specified probability.

The term ‘single test result’ means the value obtained when the standardised test method is applied fully once to a
single sample. Unless otherwise stated, the probability shall be 95 %.

31.7.2000

EN

Official Journal of the European Communities

L 194/99

ANNEX V

Notification of refusal or acceptance of lots in connection with tendering procedures for the export of wine
alcohol

— Name of successful tenderer:

— Date of award:

— Date of refusal or acceptance of the lot by the successful tenderer:

Lot number

Quantity in hectolitres

Location of the alcohol

Reason for refusing or
accepting to take over the lot