Commission Regulation (EC) No 938/2006 of  23 June 2006  opening crisis distillation as provided for in Article 30 of Council Regulation (EC) No 1493/1999 for certain wine in France
Date: 2006-06-23
Institutions: European Commission
Subjects: France, agricultural surplus, distillation, market intervention, table wine, viticulture

24.6.2006

EN

Official Journal of the European Union

L 172/11

COMMISSION REGULATION (EC) No 938/2006

of 23 June 2006

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

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:

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 produced in specified regions
(quality wines psr) at the request of the Member State
concerned.

By letter of 8 March 2006,
requested that crisis distillation be opened for
wine produced in France and for quality wines psr.

the French Government
table

Considerable surpluses have been recorded on the market
in table wine and quality wines psr in France, 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
stocks of French wine should be
market
reduced to a level that can be regarded as normal
in
terms of covering market requirements.

situation,

(1)

(2)

(3)

(4)

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 regards
the distillation measure provided for in Article 30 of
Regulation (EC) No 1493/1999. Other provisions of
Regulation (EC) No 1623/2000 must also apply,
in
particular those concerning the delivery of alcohol to
intervention agencies and the payment of advances.

(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

Crisis distillation as provided for in Article 30 of Regulation
(EC) No 1493/1999 is hereby opened for a maximum of 1,5
million hectolitres of table wine and 1,5 million hectolitres of
quality wines produced in specified regions (quality wines psr)
in France, in accordance with the provisions of Regulation (EC)
No 1623/2000 concerning this type of distillation.

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
1,5 million hectolitres of table wine and 1,5 million
hectolitres of quality wines produced in specified
regions (quality wines psr).

Article 2

Producers may conclude contracts as provided for in Article 65
of Regulation (EC) No 1623/2000 (hereinafter referred to as
contracts) from 29 June to 28 July 2006.

(1) OJ L 179, 14.7.1999, p. 1. Regulation as last amended by Regu-

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

lation (EC) No 2165/2005 (OJ L 345, 28.12.2005, p. 1).

lation (EC) No 1820/2005 (OJ L 293, 9.11.2005, p. 8).

L 172/12

EN

Official Journal of the European Union

24.6.2006

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

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

Contracts may not be transferred.

Article 5

Article 3

1.
If the total quantities covered by the contracts submitted
to the intervention agency exceed the quantities laid down in
Article 1, France shall determine the rates of reduction to be
applied to those contracts.

France shall

take the administrative steps necessary to
2.
approve the contracts not later than 22 August 2006. 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.

France shall notify the Commission before 29 August 2006 of
the quantities of wine covered by approved contracts.

France 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 not later than 28 February
2007. The alcohol obtained shall be delivered to the inter-
vention agency in accordance with Article 6(1) not later than
31 May 2007.

The minimum price paid for wine delivered for distillation
under this Regulation shall be EUR 1,914/% vol/hl for table
wine and EUR 3,000/% vol/hl for quality wines psr.

Article 6

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.

for

the

raw

The price to be paid to the distiller by the intervention
2.
be
alcohol
agency
EUR 2,281/% vol/hl where it
is produced from table wine
and EUR 3,367/% vol/hl where it is produced from quality
wines psr. The payment shall be made in accordance with
Article 62(5) of Regulation (EC) No 1623/2000.

delivered

shall

Distillers may receive an advance on those amounts of
in the case of alcohol produced from
EUR 1,122/% vol/hl
table wine and EUR 2,208/% vol/hl
in the case of alcohol
In that case the advances
produced from quality wines psr.
shall be deducted from the prices actually paid. Articles 66
and 67 of Regulation (EC) No 1623/2000 shall apply.

Article 7

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

The security shall be released in proportion to the quan-
2.
tities delivered when the producer presents proof of delivery to
a distillery.

It shall apply from 29 June 2006.

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

Done at Brussels, 23 June 2006.

For the Commission

Mariann FISCHER BOEL
Member of the Commission