Commission Regulation (EC) No 1232/2001 of 22 June 2001 opening crisis distillation as provided for in Article 30 of Council Regulation (EC) No 1493/1999 for table wine in Italy
Date: 2001-06-22
Institutions: European Commission
Subjects: Italy, distillation, intervention agency, table wine

23.6.2001

EN

Official Journal of the European Communities

L 168/9

COMMISSION REGULATION (EC) No 1232/2001

of 22 June 2001

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

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

(7)

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)

(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.

The Italian Government has requested that crisis distilla-
tion be opened for table wine produced in Italy.

Large stocks of table wine have built up following high
output of table wine in Italy during the 1998/99 and
1999/2000 wine years (44 million hl and 45 million hl
respectively). Stocks stood at 16,7 million hl at the start
of the 1998/99 wine year and climbed to 19,5 million
hl

in early 2000/01.

In addition to this factor there are changes in external
trade. Imports of table wine have risen as a result of
bumper harvests in certain other Member States during
the current wine year.

This situation has had a negative impact on prices,
which have fallen by about 2 % to 8 % on average
during the current wine year as compared with the same
period of the previous year. In addition the price varia-
tion is unevenly spread over the regions, and in some
regions prices are below the average.

Since the conditions laid down in Article 30(5) of Regu-
lation (EC) No 1493/1999 are still satisfied, a further
crisis distillation measure should be opened for a
maximum of 2 million hl of table wine. The measure
should apply for a limited period with a view to
maximum effectiveness. No ceiling should be set on the
quantity that
individual producers can have distilled
stocks may vary substantially from one
because
producer to another and depend more on sales than on
the individual producer's annual output.

The mechanism to be introduced is that 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 545/
2001 (4). In addition to the Articles of that Regulation
referring to the distillation measure 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 advances.

(8)

(9)

The price distillers must pay producers should be set at a
level that permits the problems faced to be solved by
allowing producers to take advantage of possibilities
afforded by this measure. That price should not,
however, be such that it adversely affects the application
of the distillation measure provided for in Article 29 of
Regulation (EC) No 1493/1999.

The product of crisis distillation must be raw or neutral
for compulsory delivery to the intervention
alcohol
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.

(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 1,2
million hectolitres of table wine in Italy.

Article 2

In addition to the provisions of Regulation (EC) No 1623/2000
referring to Article 30 of Regulation (EC) No 1493/1999, the
following provisions of Regulation (EC) No 1623/2000 shall
apply to the measure provided for in this Regulation:

— Article 62(5) as regards payment by the intervention agency
of the price as referred to in Article 6(2) of this Regulation,

— Articles 66 and 67 as regards advances as provided for 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 81, 21.3.2001, p. 21.

L 168/10

EN

Official Journal of the European Communities

23.6.2001

Article 3

Producers may conclude contracts as provided for in Article 65
of Regulation (EC) No 1623/2000 from 25 June 2001 to 12
July 2001. Contracts shall be accompanied by proof that a
to EUR 5 per hectolitre has been lodged.
security equal
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

take the administrative steps
2.
necessary to approve the above contracts by 27 July 2001 at
the latest, shall specify the rate of reduction applied and the
quantity of wine accepted per contract and shall stipulate that
the producer may cancel the contract where the quantity to be
distilled is reduced. The Member State shall notify the Commis-
sion before 1 September 2001 of the quantities of such wine
covered by approved contracts.

3.
The wine must be delivered to the distilleries by 15
October 2001 at the latest. The alcohol obtained must be
delivered to the intervention agency by 31 January 2002 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.

The Member State may limit the number of contracts that
the distillation

6.
individual producers may conclude under
measure.

Article 5

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

Article 7

This Regulation shall enter into force on the day of its publica-
tion in the Official Journal of the European Communities.

It shall apply from 25 June 2001.

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

Done at Brussels, 22 June 2001.

For the Commission

Franz FISCHLER

Member of the Commission