Commission Regulation (EC) No 1517/2006 of 12 October 2006 opening crisis distillation as provided for in Article 30 of Council Regulation (EC) No 1493/1999 for certain wines in Spain
Date: 2006-10-12
Institutions: European Commission
Subjects: Spain, common organisation of markets, delivery, distillation, purchase price, quantitative restriction, wine of superior quality

13.10.2006

EN

Official Journal of the European Union

L 282/13

COMMISSION REGULATION (EC) No 1517/2006

of 12 October 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,

(4)

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
in
wine (1), and in particular point (f) in the second subparagraph
of Article 33(1) thereof,

the market

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.

Spain has requested that crisis distillation be opened for
quality red wines produced in specified regions (psr) of
its territory. In particular, this concerns quality red wines
produced in the specified region of Jumilla and quality
red wines produced in the specified regions of Conca de
Barberà, Costers del Segre, Empordà, Penedès, Tarragona
and Terra Alta. Considerable
surpluses have been
recorded on the market in quality red wines psr, which
in prices and a worrying rise in
are reflected in a fall
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.

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
100 000 hectolitres of quality red wines produced in
Jumilla and for a maximum of 85 000 hectolitres of
quality red wines produced in the specified regions of
Conca de Barberà, Costers del Segre, Empordà, Penedès,
Tarragona and Terra Alta.

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.

(5)

(6)

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.

(7)

The measures provided for in this Regulation are in
the Management
accordance with the opinion of
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
100 000 hectolitres of quality red wines produced in the
Jumilla and of 85 000 hectolitres of
specified region of
quality red wines produced in the specified regions of Conca
de Barberà, Costers del Segre, Empordà, Penedès, Tarragona and
Terra Alta, in accordance with the provisions of Regulation (EC)
No 1623/2000 concerning this type of distillation.

Article 2

Producers may conclude contracts as provided for in Article 65
of Regulation (EC) No 1623/2000 (hereinafter referred to as the
contracts) from 16 October to 17 November 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 1221/2006 (OJ L 221, 12.8.2006, p. 3).

L 282/14

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Official Journal of the European Union

13.10.2006

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

The security shall be released for the quantities delivered

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

Contracts may not be transferred.

Article 3

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.

Spain shall

2.
take the administrative steps necessary to
approve the contracts by 1 December 2006 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.

Spain shall notify the Commission before 12 December 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.

Article 4

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/ % 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 7

The quantities of wine covered by approved contracts
1.
shall be delivered to the distilleries not
later than 11 May
2007. The alcohol obtained shall be delivered to the inter-
vention agency in accordance with Article 6(1) not later than
31 July 2007.

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

It shall apply from 16 October 2006.

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

Done at Brussels, 12 October 2006.

For the Commission

Mariann FISCHER BOEL
Member of the Commission