Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EC) No 110/2008 as regards nominal quantities for placing on the Union market of single distilled shochu produced by pot still and bottled in Japan
Date: 2018-04-18
Institutions: Directorate-General for Agriculture and Rural Development, European Commission
Subjects: Japan, consumer information, derogation from EU law, designation of origin, distillation, labelling, market approval, packaging product, product designation, spirits

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   EUROPEAN COMMISSION  Brussels, 18.4.2018 COM(2018) 199 final 2018/0097 (COD)  Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EC) No 110/2008 as regards nominal quantities for placing on the Union market of single distilled shochu produced by pot still and bottled in Japan  
 
 
EXPLANATORY MEMORANDUM 

1. 

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CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

On 29 November 2012, the Council authorised the Commission to enter into negotiations for 
a Free Trade Agreement (FTA) with Japan.  

On  the  basis  of  the  negotiating  directives  adopted  by  the  Council  in  20121  the  Commission 
has negotiated with Japan an ambitious and comprehensive Economic Partnership Agreement 
(EPA) with a view to creating new opportunities and legal certainty for trade and investment 
between both partners to develop. The agreed texts after the end of the negotiations have been 
made public and can be found on the following link: 

http://trade.ec.europa.eu/doclib/press/index.cfm?id=1684 

This proposal is made in parallel with the following proposals:  

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- 

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Proposal for a Council Decision on the signing, on behalf of the European Union, of 
the Economic Partnership Agreement between the European Union and Japan; 

Proposal  for  a  Council  Decision  on  the  conclusion  of  the  Economic  Partnership 
Agreement between the European Union and Japan;  

Proposal  for  a  safeguard  regulation  that  will  cover  safeguards  foreseen  in  the  EU-
Japan EPA.  

This Commission proposal aims at implementing provisions of the EU-Japan EPA as regards 
the export from Japan into the Union of single distilled shochu, a spirit drink produced by pot 
still and bottled in Japan, which is to be exported into the Union in traditional bottles of four 
go（合）or one sho（升)2. 

• 

Consistency with existing policy provisions in the policy area 

The  EU-Japan  EPA  is  fully  consistent  with  Union  policies  and  will  not  require  the  EU  to 
amend its rules, regulations or standards in any regulated area (e.g. technical rules and product 
standards,  sanitary  or  phytosanitary  rules,  regulations  on  food  and  safety,  health  and  safety 
standards,  rules  on  GMO’s,  environmental  protection,  consumer  protection,  etc.)  with  the 
exception  of  the  need  for  the  introduction  of  a  derogation  to  facilitate  Japanese  exports  of 
single distilled shochu, a spirit drink produced by pot still and bottled in Japan, which Japan 
exports in traditional bottles of four go（合） or one sho（升). 

This  Commission  proposal  aims  at  introducing  a  derogation  from  Union  rules  concerning 
bottle sizes, for single distilled shochu, a spirit drink produced by pot still and bottled in Japan 
that is traditionally sold in bottles of sizes of four go（合）or one sho（升) that correspond 
to nominal quantities of 720 ml (one go corresponds to 180 ml) and 1800 ml, respectively, 
and  that  are  currently  not  among  the  nominal  quantities  permitted  in  the  Union  under 
Directive 2007/45/EC laying down rules on nominal quantities of prepacked products.  

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the  negotiation  of  a  Free  Trade  Agreement  with  Japan  are  available  at 

Directives  for 
http://trade.ec.europa.eu/doclib/docs/2017/september/tradoc_156051.en12.pdf  
1 sho (升） is equal to 1800ml and 1 go（合） is equal to 180ml. 

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• 

Consistency with other Union policies 

The  EU-Japan  EPA  is  fully  consistent  with  Union  policies  and  will  not  require  the  EU  to 
amend its rules, regulations or standards in any regulated area (e.g. technical rules and product 
standards,  sanitary  or  phytosanitary  rules,  regulations  on  food  and  safety,  health  and  safety 
standards, rules on GMO’s, environmental protection, consumer protection, etc.).  

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

Article 114(1) of the Treaty on the Functioning of the European Union, as this proposal is an 
amendment to Regulation (EC) No 110/2008 of the European Parliament and of the Council 
of 15 January 2008 on the definition, description, presentation, labelling and the protection of 
geographical indications of spirit drinks and repealing Council Regulation (EEC) No 1576/89 
(OJ L39, 13.2.2008, p.16).   

• 

Subsidiarity (for non-exclusive competence)  

In accordance with Article 3 of the TFEU, the common commercial policy, under which EU-
Japan EPA is to be signed, is an exclusive Union competence.  

This  proposal  implements  a  provision  of  the  EU-Japan  EPA,  consisting  of  derogation  for 
single distilled shochu from the current Union rules on nominal quantities of spirit drinks that 
can be placed on the market (Directive 2007/45/EC). Such derogation can only be introduced 
by Union legislation.   

• 

Proportionality 

The EU-Japan EPA is in line with the vision of the Europe 2020 strategy and contributes to 
the EU’s trade and development objectives. This proposal aims at implementing a provision 
of the EU-Japan EPA in the Union legal order.   

• 

Choice of the instrument 

The derogation that is proposed to implement the EU-Japan EPA can only be introduced by 
means of a  Regulation as  it needs  to apply in  all Member States  simultaneously upon entry 
into force of the EU-Japan EPA.  

3. 

• 

• 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Stakeholder consultations 

Collection and use of expertise 

Impact assessment 

Stakeholder  consultations  and  evaluations  were  done  as  a  part  of  the  process  leading  to  the 
conclusion  of  the  EU-Japan  EPA.  The  details  about  those  consultations  and  evaluations  are 
provided in the Commission proposal for a Council Decision on the signing on behalf of the 
European Union, of the Economic Partnership Agreement between the European Union and 
Japan. 

A Trade Sustainability Impact Assessment of the EPA between the EU and Japan was carried 
out  by  the  external  contractor  “London  School  of  Economics  Enterprises”.  The  details  of  it 
are provided in Commission proposal for a Council Decision on the signing on behalf of the 

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European Union, of the Economic Partnership Agreement between the European Union and 
Japan. 

The EU-Japan EPA is not subject to REFIT procedures. This proposal is also not subject to 
REFIT procedures.  

• 

Fundamental rights 

The proposal does not affect the protection of fundamental rights in the Union. 

4. 

BUDGETARY IMPLICATIONS 

This proposal will have no budgetary implications for the Union.  

The  EU-Japan  EPA  will  have  a  financial  impact  on  the  EU  budget  on  the  side  of  the 
revenues. It is estimated that foregone duties could reach an amount of €1.6 billion upon full 
implementation of the agreement.  

5. 

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OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

No specific implementation plans and reporting arrangements are foreseen for this proposal.  

• 

Explanatory documents (for directives) 

Not relevant.  

• 

Detailed explanation of the specific provisions of the proposal 

The proposal introduces a specific derogation from the nominal quantities for spirit drinks set 
out  in  Article  3  and  Section  1  of  the  Annex  to  Directive  2007/45/EC  for  single  distilled 
shochu, a spirit drink produced by pot still and bottled in Japan, so that it can be placed on the 
market  in  the  Union  in  traditional  bottle  sizes  of  four  go（合）  and  one  sho（升), 
corresponding  to  nominal  quantities  of  720  ml  and  1  800  ml,  respectively,  provided  that  it 
meets other Union requirements for such spirit drinks.  

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2018/0097 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Regulation (EC) No 110/2008 as regards nominal quantities for placing on the 
Union market of single distilled shochu produced by pot still and bottled in Japan 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 114(1) thereof,  

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national parliaments, 
Having regard to the opinion of the European Economic and Social Committee3,  

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

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By Decision adopted on 29 November 2012 the Council authorised the Commission to 
open negotiations with Japan for a free trade agreement.  

The  negotiations  for  an  Economic  Partnership  Agreement  between  the  European 
Union and Japan (hereinafter “the Agreement”) have been successfully concluded.  

Annex  2-D  to  the  Agreement  provides  that  single  distilled  shochu,  as  defined  in 
subparagraph  10  of  Article  3  of  Liquor  Tax  Law  (Law  No  6  of  1953)  of  Japan, 
produced by pot still and bottled in Japan, shall be allowed to be placed on the market 
of the European Union in traditional bottles of sizes of four go（合)and one sho (升）, 
corresponding to nominal quantities of 720 ml and of 1800 ml, respectively, provided 
that other applicable legal requirements of the European Union are fulfilled. 
Article  3  of  Directive  2007/45/EC  of  the  European  Parliament  and  of  the  Council4 
provides  that  spirit  drinks  put  up  in  pre-packages  may  only  be  placed  on  the  Union 
market if they are prepacked in the nominal quantities listed in section 1 of the Annex 
to  that  Directive.  For  spirit  drinks,  section  1  of  the  Annex  to  Directive  2007/45/EC 
refers  to  nine  nominal  quantities  on  the  interval  from  100  ml  to  2000  ml.  These 
nominal quantities do not include 720 ml and 1800 ml, the nominal quantities in which 
single distilled shochu produced by pot still is bottled and marketed in Japan.  

A  derogation  from  the  nominal  quantities  set  out  in  the  Annex  to  Directive 
2007/45/EC  for  spirit  drinks  is  therefore  necessary  to  ensure  that  single  distilled 
shochu produced by pot still and bottled in Japan may be placed on the Union market, 
as set out in the Agreement, in traditional bottle sizes in nominal quantities of 720 ml 

OJ C , , p. . 
Directive 2007/45/EC of the European Parliament and of the Council of 5 September 2007 laying down 
rules  on  nominal  quantities  for  prepacked  products,  repealing  Council  Directives  75/106/EEC  and 
80/232/EEC, and amending Council Directive 76/211/EEC (OJ L 247, 21.9.2007, p. 17). 

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(6) 

(7) 

(8) 

and of 1800 ml that correspond to Japanese bottle sizes four go（合) and one sho (升）
, respectively.  

This  derogation  needs  to  be  introduced  by  an  amendment  to  Regulation  (EC)  No 
110/2008 of the European Parliament and of the Council5 to ensure that single distilled 
shochu produced by pot still and bottled in Japan may be placed on the market in all 
Member States simultaneously upon the entry into force of the Agreement.  

Regulation (EC) No 110/2008 should therefore be amended. 

To  ensure  implementation  of  the  Agreement  as  regards  the  placing  on  the  Union 
market  of  the  single  distilled  shochu  produced  by  pot  still  and  bottled  in  Japan,  this 
Regulation should apply from the day of entry into force of the Agreement, 

HAVE ADOPTED THIS REGULATION: 

Regulation (EC) No 110/2008 is amended as follows:  

In Chapter IV, the following Article 24a is inserted:  

Article 1 

'Article 24a 

Derogation from Directive 2007/45/EC  

By way of derogation from Article 3 of Directive 2007/45/EC of the European Parliament and 
of  the  Council*  and  from  the  sixth  row  of  section  1  of  the  Annex  to  that  Directive,  single 
distilled  shochu**  produced  by  pot  still  and  bottled  in  Japan,  may  be  placed  on  the  Union 
market in nominal quantities of 720 ml and 1800 ml. 

---------------------------- 
* 
Directive 2007/45/EC of the European Parliament and of the Council of 5 September 
2007  laying  down  rules  on  nominal  quantities  for  prepacked  products,  repealing  Council 
Directives 75/106/EEC and 80/232/EEC, and amending Council Directive 76/211/EEC (OJ L 
247, 21.9.2007, p. 17). 

As  referred  to  in  Annex  2-D  to  the  Economic  Partnership  Agreement  between  the 

** 
European Union and Japan.’ 

Article 2 

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

It  shall  apply  from  the  day  of  entry  into  force  of  the  Economic  Partnership  Agreement 
between the European Union and Japan.  

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Regulation (EC) No 110/2008 of the European Parliament and of the Council of 15 January 2008 
on the definition, description, presentation, labelling and the protection of geographical indications of 
spirit drinks and repealing Council Regulation (EEC) No 1576/89 (OJ L 39, 13.2.2008, p. 16). 

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

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

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