Commission Regulation (EC) No 442/2001 of 2 March 2001 opening crisis distillation as provided for in Article 30 of Council Regulation (EC) No 1493/1999 for table wines in Portugal
Date: 2001-03-02
Institutions: European Commission
Subjects: Portugal, contract, distillation, intervention agency, purchase price, table wine

L 63/52

EN

Official Journal of the European Communities

3.3.2001

COMMISSION REGULATION (EC) No 442/2001

of 2 March 2001

opening crisis distillation as provided for in Article 30 of Council Regulation (EC) No 1493/1999
for table wines in Portugal

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), as last amended by Regulation (EC) No 2826/2000 (2),
and in particular Articles 30 and 33 thereof,

Whereas:

(1)

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.

(2)

The Portuguese Government has requested that crisis
distillation be triggered for table wines produced on its
territory.

(3) Wine production in Portugal was 6,1 million hectolitres
in 1997/98 and 3,8 million hectolitres in 1998/99. It
stood at 7,8 million hectolitres in 1999/2000 and 5,6
million hectolitres in 2000/01.

(4)

(5)

Stocks of table wine at the start of the marketing year
were 3,614 million hectolitres in 1998 and 3,437
million hectolitres in 1999,
falling to 3,026 million
hectolitres in 2000. In 2001, they have risen sharply to
4,039 million hectolitres, an increase of around 33 %.
This has had a negative impact on prices, which have
fallen by around 11 % over the current wine year
compared with the same period last year.

Since the conditions laid down in Article 30(5) of Regu-
lation (EC) No 1493/1999 are satisfied, crisis distillation
covering a maximum of 450 000 hectolitres of table
wine should be triggered. That volume should make it
possible to reduce stocks of table wine to an acceptable
level. The measure applies for a limited period with a
view to maximum effectiveness. 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.

(6)

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 (3), as last amended by Regulation (EC) No 2786/
2000 (4). 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 apply, in particular
those concerning the delivery of alcohol to intervention
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.

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

(7)

(8)

(9)

HAS ADOPTED THIS REGULATION:

Article 1

Crisis distillation as provided for in Article 30 of Regulation
(EC) No 1493/1999 is opened for a maximum of 450 000
hectolitres of table wines in Portugal.

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.

(1) OJ L 179, 14.7.1999, p. 1.
(2) OJ L 328, 23.12.2000, p. 2.

(3) OJ L 194, 31.7.2000, p. 45.
(4) OJ L 323, 20.12.2000, p. 4.

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Official Journal of the European Communities

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Article 3

Producers may conclude contracts as provided for in Article 65
of Regulation (EC) No 1623/2000 from 5 March 2001 to 12
April 2001. Such contracts shall entail the lodging of a security
equal to EUR 5 per hectolitre. Such contracts may not be
transferred.

Article 4

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

The Member State shall adopt the administrative provi-
2.
sions needed to approve the above contracts by 27 April 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 Commission before
4 May 2001 of
the quantities of such wine covered by
contracts approved.

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

4.
Securities shall be released in proportion to the quantities
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

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

2.
The price to be paid to the distiller by the intervention
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

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

It shall apply from 5 March 2001.

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

Done at Brussels, 2 March 2001.

For the Commission

Franz FISCHLER

Member of the Commission