Commission Regulation (EC) No 1089/2006 of  14 July 2006  opening crisis distillation as provided for in Article 30 of Council Regulation (EC) No 1493/1999 for certain wines in Spain
Date: 2006-07-14
Institutions: European Commission
Subjects: Spain, common organisation of markets, distillation, purchase price, wine of superior quality

15.7.2006

EN

Official Journal of the European Union

L 195/5

COMMISSION REGULATION (EC) No 1089/2006

of 14 July 2006

opening crisis distillation as provided for in Article 30 of Council Regulation (EC) No 1493/1999 for
certain wines 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
in
May 1999 on the common organisation of
wine (1), and in particular Article 33(1)(f) thereof,

the market

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.

The Spanish Government has requested that crisis distil-
lation be opened for quality red and rosé wines produced
in specified regions (psr) of its territory and in particular
produced in the wine-growing region of Navarre.

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
while 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:

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

Article 1

Crisis distillation as provided for in Article 30 of Regulation
(EC) No 1493/1999 is hereby opened for a maximum of
300 000 hectolitres of quality red and rosé wines produced in
the specified region (psr) of Navarre,
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
300 000 hectolitres of quality red and rosé wines
produced in the specified region of Navarre.

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 18 July to 31 August 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).

(1)

(2)

(3)

(4)

L 195/6

EN

Official Journal of the European Union

15.7.2006

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

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

Contracts may not be transferred.

Article 3

If the total quantity covered by the contracts submitted to
1.
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.

Spain shall

2.
take the administrative steps necessary to
approve the contracts not later than 15 September 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.

Spain shall notify the Commission before 20 September 2006
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.

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

Article 5

The minimum price paid for wine delivered for distillation
under this Regulation shall be EUR 3,00/% vol/hl.

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.

2.
The price the intervention agency must pay distillers for
raw alcohol delivered shall be EUR 3,367/% vol/hl. The payment
shall be made in accordance with Article 62(5) of Regulation
(EC) No 1623/2000.

Distillers may receive an advance of EUR 2,208/% 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.

Article 4

Article 7

The quantities of wine covered by approved contracts
1.
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.

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

It shall apply from 18 July 2006.

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

Done at Brussels, 14 July 2006.

For the Commission

Mariann FISCHER BOEL
Member of the Commission