Commission Regulation (EC) No 762/2005 of 19 May 2005 opening crisis distillation as provided for in Article 30 of Council Regulation (EC) No 1493/1999 for table wine in Spain
Date: 2005-05-19
Institutions: European Commission
Subjects: Spain, aid system, distillation, intervention agency, table wine, viticulture

L 127/8

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Official Journal of the European Union

20.5.2005

COMMISSION REGULATION (EC) No 762/2005

of 19 May 2005

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

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

(5)

Having regard to the Treaty
Community,

establishing the European

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 Article 33(1)(f) thereof,

Whereas:

(1)

(2)

(3)

Article 30 of Regulation (EC) No 1493/1999 provides
for the possibility of a crisis distillation measure in the
event of exceptional market disturbance due to 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 concerned.

By letter of 8 March 2005, the Spanish Government
table
requested that crisis distillation be opened for
wine produced in its territory.

Considerable surpluses have been recorded on the table
wine market in Spain, which are reflected in a fall
in
prices and a worrying rise in stocks towards the end of
the current marketing year.
In order to reverse this
negative trend, and so remedy the difficult market
situation, stocks of table wine should be reduced to a
level that can be regarded as normal in terms of covering
market requirements.

The crisis distillation opened by this Regulation must
comply with the conditions laid down by 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 (2)
as
in
Article 30 of Regulation (EC) No 1493/1999. Other
provisions of Regulation (EC) No 1623/2000 must also
in particular those concerning the delivery of
apply,
alcohol
to intervention agencies and the payment of
advances.

the distillation measure provided for

regards

(6)

(7)

The price distillers must pay producers should be set at a
level that permits the market disturbance to be dealt with
by allowing producers to take advantage of the possi-
bility afforded by this measure.

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

(8)

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

(4)

Since the conditions laid down in Article 30(5) of Regu-
lation (EC) No 1493/1999 are satisfied, a crisis distil-
lation measure should be opened for a maximum of 4
million hectolitres of table wine.

Crisis distillation as provided for in Article 30 of Regulation
(EC) No 1493/1999 is hereby opened for a maximum of 4
million hectolitres of table wine in Spain, in accordance with
the provisions of Regulation (EC) No 1623/2000 concerning
this type of distillation.

(1) OJ L 179, 14.7.1999, p. 1. Regulation last amended by the 2003

(2) OJ L 194, 31.7.2000, p. 45. Regulation last amended by Regulation

Act of Accession.

(EC) No 616/2005 (OJ L 103, 22.4.2005, p. 15).

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Official Journal of the European Union

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Article 2

Producers may conclude contracts as provided for in Article 65
of Regulation (EC) No 1623/2000 (hereinafter referred to as ‘the
contract’) from 23 May to 15 June 2005.

The security shall be released for the quantities delivered

2.
when the producer presents proof of delivery to a distillery.

The security shall be forfeit where no delivery is made within
the time limit laid down in paragraph 1.

Contracts shall be accompanied by proof that a security equal
to EUR 5 per hectolitre has been lodged.

Article 5

Contracts may not be transferred.

Article 3

The minimum price paid for wine delivered for distillation
under this Regulation shall be EUR 1,914/% vol/hl.

Article 6

1.
If the total quantity covered by the contracts submitted to
the intervention agency exceeds the quantity laid down in
Article 1, Spain shall determine the rate of reduction to be
applied to the above contracts.

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

Spain shall

2.
take the administrative steps necessary to
approve the above contracts by 18 July 2005 at the latest.
The approval shall specify any 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.

2.
The price the intervention agency must pay distillers for
raw alcohol delivered shall be EUR 2,281/% vol/hl. The
payment shall be made in accordance with Article 62(5) of
Regulation (EC) No 1623/2000. However, payment may be
made only from 16 October 2005.

Spain shall notify the Commission before 1 August 2005 of the
quantities of wine covered by approved contracts.

Spain may limit the number of contracts that individual

3.
producers may conclude under this Regulation.

Article 4

1.
The quantities of wine covered by approved contracts
shall be delivered to the distilleries by 15 October 2005 at
the latest. The alcohol obtained must be delivered to the inter-
vention agency in accordance with Article 6(1) by 15 March
2006 at the latest.

Distillers may receive an advance of EUR 1,122/% vol/hl on
that amount. In that case the advance shall be deducted from
the price actually paid. Articles 66 and 67 of Regulation (EC)
No 1623/2000 shall apply. However, payment of the advance
may be made only from 16 October 2005.

Article 7

This Regulation shall enter into force on the third day following
the European
that of
Union.

its publication in the Official

Journal of

It shall apply from 23 May 2005.

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

Done at Brussels, 19 May 2005.

For the Commission

Mariann FISCHER BOEL
Member of the Commission