Commission Regulation (EC) No 2859/2000 of 27 December 2000 opening crisis distillation as provided for in Article 30 of Regulation (EC) No 1493/1999 for certain wines in Italy
Date: 2000-12-27
Institutions: European Commission
Subjects: Italy, common organisation of markets, distillation, wine

28.12.2000

EN

Official Journal of the European Communities

L 332/61

COMMISSION REGULATION (EC) No 2859/2000

of 27 December 2000

opening crisis distillation as provided for in Article 30 of Regulation (EC) No 1493/1999 for certain
wines in Italy

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European
Community,

Having regard to Council Regulation (EC) No 1493/1999 of 17
May 1999 on the common organisation of the market in
wine (1), and in particular Articles 30 and 33 thereof,

(7)

Whereas:

(1)

(2)

(3)

(4)

(5)

(6)

Article 30 of Regulation (EC) No 1493/1999 provides
for the possibility of opening crisis distillation in the
event of exceptional market disturbance caused by major
surpluses. Such measures may be limited to certain cate-
gories of wine and/or certain areas of production and
may apply to quality wines psr at the request of the
Member State.

By letter of 15 November 2000 the Italian Government
requested that crisis distillation be triggered for wines
produced by the fermentation of products suitable for
producing Moscato d'Asti and Asti

in Italy.

Around 600 000 hectolitres (80 million bottles) of wine
produced by the fermentation of products suitable for
producing Moscato d'Asti and Asti were produced in
1999,
compared with around 700 000 hectolitres
produced in 1997. Stocks amounted to around 415 000
hectolitres at the beginning of the 2000/01 marketing
year, against less than 105 500 hectolitres in 1995. Sales
have fallen from around 650 000 hectolitres in the first
half of the 1990s to around 580 000 hectolitres in the
second part of that decade. Between the first quarter of
1999 and the first quarter of 2000, exports fell by 5
million bottles, from 19,2 million to 14,35 million.

In view of the substantial surpluses of unsold must in
refrigerated silos, these capacities are not available for
the new harvest. There are no outlets for this surplus
production.

Regional producers have taken structural measures to
redirect production towards high-quality products. These
are backed by promotional measures funded by para-
fiscal charges, a reduction in per-hectare yields and the
waiver of new planting rights and replanting rights.

Since the conditions laid down in Article 30(5) of Regu-
lation (EC) No 1493/1999 are satisfied, crisis distillation
covering a maximum of 120 000 million hectolitres
should be triggered in this Italian wine-growing region

for a limited period with a view to maximum effective-
ness. No ceiling should be set on the quantity that
individual producers can have distilled because stocks
may vary substantially from one producer to another
and depend on sales to a greater extent than on the
individual producer's annual output.

The mechanism to be introduced is provided for in
Commission Regulation (EC) No 1623/2000 of 25 July
2000 laying down detailed rules for implementing Regu-
lation (EC) No 1493/1999 on the common organisation
of the market in wine with regard to market mecha-
nisms (2), as amended by Regulation (EC) No 2409/
2000 (3). As well as the Articles of this Regulation which
refer to the distillation measures provided for in Article
30 of Regulation (EC) No 1493/1999, other provisions
of Regulation (EC) No 1623/2000 shall apply, in partic-
ular those concerning the delivery of alcohol to inter-
vention agencies and the payment of an advance.

The buying-in price to be paid by the distiller to the
producer should provide a solution to the problems
while allowing producers to take advantage of the poss-
ibility afforded by this measure. That price should not,
however, be such that it adversely affects the application
of distillation as provided for in Article 29 of Regulation
(EC) No 1493/1999.

The product of crisis distillation must be raw alcohol or
neutral alcohol for compulsory delivery to the interven-
tion agency in order to avoid disturbing the market for
potable alcohol, which is supplied largely by distillation
under Article 29 of Regulation (EC) No 1493/1999.

(8)

(9)

(10)

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

HAS ADOPTED THIS REGULATION:

Article 1

Crisis distillation as provided for in Article 30 of Regulation
(EC) No 1493/1999 is hereby opened for a maximum of
120 000 hectolitres of wines produced by the fermentation of
products suitable for producing Moscato d'Asti and Asti
in
Italy.

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

(2) OJ L 194, 31.7.2000, p. 45.
(3) OJ L 278, 31.10.2000, p. 3.

L 332/62

EN

Official Journal of the European Communities

28.12.2000

Article 2

As well as the provisions of Regulation (EC) No 1623/2000
which refer to Article 30 of Regulation (EC) No 1493/1999,
the following provisions of Regulation (EC) No 1623/2000
shall also apply to the measure provided for herein:

— Article 62(5) with respect to the payment by the interven-
tion agency of the price referred to in Article 6(2) of this
Regulation,

— Articles 66 and 67 with respect to the advance referred to

in Article 6(2) of this Regulation.

Article 3

Producers may conclude contracts as provided for in Article 65
of Regulation (EC) No 1623/2000 from 16 January 2001 to 28
February 2001. Such contracts shall entail the lodging of a
security equal to EUR 5 per hectolitre. Such contracts may not
be transferred.

Article 4

1.
The Member State shall determine the rate of reduction to
be applied to the abovementioned contracts where the overall
quantity covered by contracts presented exceeds that laid down
in Article 1.

2.
The Member State shall adopt the administrative provi-
sions needed to approve the abovementioned contracts by 15
March 2001, shall specify the rate of reduction applied and the
quantity of wine accepted per contract and shall stipulate that
the producer can cancel the contract where the quantity to be
distilled is reduced. The Member State shall notify the Commis-
sion before 20 March 2001 of the quantities of such wine
covered by contracts approved.

3.
The wine shall be delivered to the distilleries by 30 June
2001 at the latest. The alcohol obtained may be delivered to
the intervention agency by 30 November 2001 at the latest.

Securities shall be released in proportion to the quantities
4.
delivered where the producer provides proof of delivery to the
distillery.

The security shall be forfeit where no delivery is made

5.
within the time limit laid down.

6.
The Member State may limit the number of contracts that
individual producers can conclude under the distillation opera-
tion in question.

Article 5

The minimum buying-in price for wine delivered for distillation
under this Regulation shall be EUR 1,914 per % vol. per hecto-
litre.

Article 6

1.
Distillers shall deliver the product obtained from distilla-
tion to the intervention agency. That product shall be of an
alcoholic strength of at least 92 % vol.

The price to be paid to the distiller by the intervention
2.
agency for raw alcohol delivered shall be EUR 2,2812 per %
vol. per hectolitre. The distiller may receive an advance on that
amount in the form of aid amounting to EUR 1,1222 per %
vol. per hectolitre. The aid shall in that case be deducted from
the price actually paid.

Article 7

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

It shall apply from 16 January 2001.

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

Done at Brussels, 27 December 2000.

For the Commission

Franz FISCHLER

Member of the Commission