CELEX: 51980PC0436
Language: en
Date: 1980-07-17
Title: PROPOSAL FOR A COUNCIL REGULATION (EEC) LAYING DOWN GENERAL RULES FOR THE APPLICATION OF THE MINIMUM PRICE FOR TABLE WINE (presented by the Commission to the Council)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (80) 436
Vol. 1980/0153
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
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In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
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Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                               COM(80)436 final
                                               Brussels , 17th July 1980
                   PROPOSAL FOR A COUNCIL
               LAYING DOWN GENERAL RULES     FOR THE APPLICATION
                     OF THE MINIMUM PRICE- FOR TABLE. WINE
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                 ( presented by the Commission to the Council )
 C0M(80 ) 436 final
 ---pagebreak---                             EXPLANATORY MEMORANDUM
On 18 February 1980 the Council added a provision to the "basic wine Regula­
tion whereby a minimum price may "be fixed when the market price for table
wines falls below a oertain level , together with enforcement measures ; the
provision also makes it possible to restrict marketing of the type of table
wine in question*The provision states that , if the Council decides to fix
a minimum price , it shall at the same time authorize distillation of the
wine in question at the same minimum price level .
This provision which is applicable until 30 June 1984 , when the structural
measures for establishing a balance on the market should have had their
effect ; however , general rules are necessary for its implementation .
The regulation now proposed lays down the rules for the application of these
provisions of Article 15a of Regulation (EEC ) NO 337/79 * It provides for the
following s
- exemption from the obligation to observe the minimum price for wines for
  export and for wines oovered by a contract of sale conoluded before the
  minimum price was fixed,
- the obligation to register delivery contracts for wine of the type for
  which a minimum price has been fixed during the period of application of
  this price ,
- the withholding of the accompanying document for consignments of wine
  where the contract shows that they do not observe the minimum prioe ,
- the rules for distillation and fixing EAGGP contributions towards inter­
  vention agencies expenditure on taking in the alcohol so obtained,
- the criteria for ceasing to apply the minimum price and the rights and
  obligations attaching to it .       « '
 ---pagebreak---                                    PROPOSAL FOR A
                               COUNCIL REGULATION (EEC )
                 laying down general rules for the application of
                 the minimum price for table wine
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
Having regard to Council Regulation (EEC ) No 337/79 of 5 February 1979 on "the
common organization of the market in wine"'", as last amended by Regulation
                 2
(EEC ) No 459/ 80 i and i-n particular Article 15a ( 4 ) thereof ,
Whereas general rules should be laid down for application of the minimum
price introduced by Article 15a of Regulation (EEC ) N o 337/79 ;
Whereas exports of wine help to reduce market–surpluses of table wine ; where­
as , so as to avoid hindering exports , the minimum prioe obligation should
not be applied to wines for export |
Whereas , in providing for adjustment of the minimum price for certain regions
referred to in paragraph 1 of the said Article 15a , i"t is essential to take
account of the regions whioh are furthest from the main consumer areas ;
whereas in calculating thi.t adjustment account must be taken of the cost of
bringing wines from the furthest regions to the same marketing Btage as
wines from other regions :
                                                                       ./•
roj No L 54 ,   5.3.1979 , p .  1
 0J No L 57 , 29.2.1980 , p . 32
 ---pagebreak--- Whereas provision must be made for checks to             ensure observance - of the
minimum price } whereas , to this end, a system should be introduced for
registering contracts oonoluded when the wines are first placed on the market ;
Whereas the conclusion of short–term storage oontracts for table wine during
the period when the minimum price is applicable reduces pressure on the
market } whereas that operation should accordingly be encouraged by providing
that , as soon as the minimum price ceases to apply , holders of such contracts
may withdraw from them without losing their entitlement to aid ;
Whereas the Council may decide to restrict marketing of the type of table
wine in question where it does not reach the minimum price } whereas it
should be made clear what constitutes marketing and what marketing stage the
pri ce to be taken into account relates to ; whereas , in order to ensure obser­
vance of such a restriction , it should be provided that accompanying docu­
ments may be issued only in respeot of consignments whioh observe the minimum
price }
Whereas the restriction on marketing applies only to consignments which are
traded after the date when the Regulation fixing the minimum prioe enters
into force ; whereas , in order to prevent abuse                    it is essen­
tial to provide that exemption from the observance of this restriction should
be subject to provision of proof that the contraot for the consignment in
question was made before the date in question ;
                            I
Whereas it should be stipulated that producers who intend to deliver wine
for distillation as referred to in Artiole 15a of Regulation (EEC ) NO 337/79
should conolude contracts with distillers and submit them for approval to
the intervention agenoy, so that the distillation operation and the obser­
vance of the obligations to which the two parties are subject may be
  checked ;   whereas this will also enable a olearer picture to be obtained
of the effect of the distillation operations on the quantity available on the
market } whereas , if a producer intends to distil his own wine or to have it
distilled for him , the contract may be replaced by a declaration permitting
equally effective checking ;                '
 ---pagebreak--- Whereas,, to enable intervention agencies to approve contracts and to check
distillation operations tho parties concerned must place certain information
at. the intervention agencies'disposal ;
Whereas it should "be laid down that the minimum price guaranteed to the
producer should "be paid to him within time limits comparable to those which
are usual in commercial •transactions ;
Whereas a tolerance must be allowed for the quantity of wine stated in the
delivery contracts ; whereas experience suggests that this toleranoe should
be fixed at 10
Whereas the respective obligations of "the distillers and the intervention
agencies as regards the buying-in of the product obtained by distillation
should also be determined ;
Whereas , having regard to the f i xed pri ce payable to the producer by the di sti I ler ,
provision must be made to ensure that intervention agencies purchase the vinous
alcohot resulting from distillation at a price which takes account of the
cost of processing the table wine in question ;
Whereas , in the absence of an organization of the market in ethyl alcohol at
Community level , the intervention agencies responsible for marketing the
vinous alcohol may be obliged to dispose of it at a price lower than the
buying-in prioe ; whereas provision should be made , in these circumstances ,
for th9 d ." "lerence between the buying-in price and the selling price of the
                            subi ect
said alcohol to be covered , . to a maximum figure , by the Guarantee Section
of the European Agricultural Guidance and Guarantee Fund , the contribution
by the Fund , however , not to exceed the said difference ;
Whereas before application of the minimum price can be terminated the repre­
sentative price needs to have risen high enough to eliminate any serious
difficulty on the market ; whereas , so as to ensure that the increase in the
representative price is not a temporary phenomenon , : a sufficiently long
reference period ehpuld be provided for ;
 ---pagebreak---                                          - 4 -
HAS ADOPTED THIS REGULATION S
                                      Article 1
                                                                ;'
1 . The minimum price for table wine of a given type * as fixed by the Council
    pursuant to Article 15a of Regulation (EEC ) NO 337/79 » nrust be observed
    for all wines of that type , with the exception of those intended for
    export .
2 . The said minimum price shall "be reduced by 0.22 ECU per % vol        per
    hectolitre for wines produced in zone C III , with the exception of the
    part of that zone lying      within continental France . .
                                       Artiole 2
                                                   «
1 . With effeot from the date of entry into force of the minimum price for
    table wines of a given type , all contracts for delivery of wine of that
    type , or of a wine in olose economic relationship with that type , made
    between a producer or produoers'assooiation and a purchaser other than a
    retailer or a private oonsumer shall be registered by the agencies desig­
    nated for this purpose jby each producer Member State . For this purpose ,
    producers shall submit a copy of the contract to the agency.
    During the period for which the minimum price applies , no accompanying
     document may be issued for the consignment in question unti I the expi ry
     of seven days from    ■ submission of the contract and then only if the
    agency has not , within that period, prohibited it pursuant to the follo­
    wing subparagraph .                                                      -
    Whereas the restriction on marketing referred to in Artiole 3 applies , if
    study of the contract reveals that the minimum price has not been complied
   with , the document relating to the contract in question shall not be issued.
2 . Short-term storage contracts concluded after the minimum price has come _
    into effect , shall , on application by the party ooncerned, be terminated
    with effect from the time when the said prioe oeases to apply.
                       entitlement
    In this case , the         to aid for short-term storage shall subsist in
    respeot of the period during which the wine was subject to suoh a oontract .
                                                                           ./•
 ---pagebreak---                                       Article 3
If the Council decides to restrict marketing under the first
subparagraph of Article 15a(l ) of Regulation (EEC ) NO 337/79 * the producer
may not . during the period within which the minimum price applies for table
                                        sell .
wine of a given type , put up for sale , 1 deliver or market in any way table
wine of the said type at a prioe lower than the minimum price in foroe .
The price to "be taken , for the purposes of cheoking compliance with this
provision, shall be that for bulk          goods , ex-producer's establishment .
However , the provisions of the foregoing paragraphs shall not apply to delive­
ries of consignments in respeot of which proof is furnished that the contract
of sale was concluded before the entry into force of the Regulation fixing
the minimum price .
                                      Article 4
Only producers of table wines of the type for which a minimum price is fixed
                    ,        x -x. x,          to benefit under
shall be eligible , in respeot of the said wines ,           . distillation provi­
sions decided upon pursuant to Article 15a of Regulation (EEC ) NO 337/79 *
                                      Article 5
For the purp ses of this Régulation s
- white tsM - wines with an actual alcoholio strength not exceeding 15 % vol
  and which are not of type A II or type A III shall be considered as being
  in close economic relationship with table wines of type A I ;
- red table wines with an actual alcoholic strength not exceeding 12.5 $ V°1
  and which are not of type R III shall be considered as being in olose
  economic relationship with table wines of type R I ;
- red table wines with an actual alcoholic strength exceeding 12 „5 % vol but
  not exceeding 15 $ vol and which are not of type R III shall bs considered
  as being in close economic relationship with table wines of type R II .
 ---pagebreak---                                        Article 6
1 . A producer who intends to deliver wine from his own production for
      distillation as referred to in Article A shall conclude 3
      delivery contract , hereinafter referred to as a "contract", with an appro­
      ved distiller and shall submit it for approval , before a date to be fixed ,
      to the competent intervention agency.
2 . The contract shall include the particulars necessary to identify the
      wine to be distilled and shall state the respective obligations of the
      parties to the contract .
   -1                              ' »           •
3 , The contraot shall be valid only if it is approved by the competent inter­
      vention agenoy before a date to be fixed.
                                                   »
      If the producer^ winery is in a different Member State from the distiller 's
      plant | a copy of the contract approved by the competent intervention agency .
      shall be sent to the intervention agency of the Member State on whose terri-
  . tory distillation is to be carried out .
                                 i
4* If the oontraot is cancelled , the parties to the contract shall without
                                        !
      delay so inform the intervention agenoy which approved the oontract .
                               I          ■              _              -
                                       Artide 7
1 . A producer who
      – possesses a distillation plant and is an approved distiller and intends
        to undertake the distillation referred to in Article 4 in respect of all
        or part of the wine from his own production , or
      - intends to have distillation oarried out on his behalf in an approved
        distiller 's plant .
                                                                                     m
      shall submit a declaration of delivery for distillation , hereinafter refei>-
      red to as a "declaration", to the intervention agency of the Member State
      on whose territory his winery is situated. The declaration shall include
      the particulars necessary for identifying the wine to be distilled. If the
      distillation plant is situated in another Member State , the produoer shall
      send a copy of the declaration to the intervention agency of that Member
      State for information purposes .                                      /
 ---pagebreak--- 2 . Prod- cars who have submitted a declaration Bhall be obliged to distil
    ths wins covered "by the declaration , or to have it distilled .
3 , For the purposes of this Regulation , the oontract referred to in Article
    5(l ) shall be replaoed :
    - in the circumstanoes referred to in the first indent of paragraph 1 , by
       the declaration ,
    - in the circumstances referred to in the seoond indent of paragraph 1 ,
           \
      "by the declaration together with a contract of delivery for distillation
       concluded between the producer and the distiller .
                                       Article 8
The characteristics of the wine covered "by the contract , and m particular
the quantity and alcoholio strength by volume 'thereof , shall be checked .
Additional    checks     may be prescribed for the wine covered by the declara­
tion referred to in Article     7 •
                                       Article 9
1® The distiller shall pay the producer not less than the purchase prioe
    fixed by the Council for the wine delivered } the said price shall relate
    to   bulk    goods , ex–produoer ' s establishment .
2 . The distiller shall pay the agreed purchase price to the producer for
    eaoh delivery of wine,within thirty days from entry of the wine into
    his distillery or storage premises .
                                    Artide 10
The quantity of wine actually supplied to the distillery may vary by not more
than 10 % from the quantity indicated in the contracts referred to in Arti­
cles 6 and 7 or in the declaration referred to in Artiole 7 *
 ---pagebreak---                                             Artide 11
    The distiller shall , within seven days , communicate the following to the
    oompetent intervention agency :
    ( a ) the date "by whioh all the wine stipulated in the contract           entered
          his distillery or storage premises , by submitting :
          – where all the wine was covered by a single delivery , a copy of the accompanying
            document provided for in Article-53 of Regulation ( EEC ) No 337 / 79 ,
          _ where delivery was by instalments ,        an aocount stating, in respect
             of each delivery , the oonsignor , the quantity of wine , the colour
             of the wine , the aotual alooholio strength "by volume and the number
             of the accompanying document provided for in Article 53 of Regulation
             (EEC ) No 337/79 .
                                                         »
    (b ) the date on which distillation of the wine referred to in ( a ) was completed ,
stating the quantity and actual alcoholio strength "by volume of the product so
          obtained*
    Furthermore , the distiller shall provide the competent intervention agency
    with proof of the payment referred to in Article 8(2 ).
    The distiller shall s                                                      .      .
    - process the wine which has entered the distillery into neutral vinous alco­
       hol with an alcoholic strength of at least 96 $ vol ,
    - deliver the alcohol so obtained to the competent intervention agency. ■
    The intervention agenoy shall be bound to buy-in the said alcohol , subjeot
    to the variations referred to in Artiole 10 .
                                           Article 12
    The price payable by the competent intervention agency to the distiller for
   buying _in -the alcohol obtained by the distillation referred to in Artiole 4
    shall be fixed, at the same time as the minimum price , by the Gounoil , acting
    by a qualified majority on a proposal from the Commission.
    It shall be fixed per hectolitre and per % vol of pure alcohol , taking acoount
    of the price payable to the producer , as referred to in Article 8 , of f lat-rate
    transport and processing costs and of losses during manufacture .
    It shall apply to bulk        , goods , free at the oompetent intervention agency's
     storage premises ,                                                          /
 ---pagebreak---                                       Article 13
1 . The maximum amount of the contribution from the Guarantee Section of the
    EAGGF towards the expenditure incurred by the intervention agenoies in .
    respect of disti llation as provided for in Article 6 shall be fixed at the
    same time as the minimum price . This amount shall "be fixed per hectolitre
    per io vol of pure alcohol .
                               \
                                \
2 . The contribution from the Guarantee Section of the EAGGP shall be paidt
 subject tothe maximum amount referred to in paragraph 1 , only where , during
    a given "budgetary year , the overall expenditure of an intervention agency
    on buying-in the produots obtained by the distillation provided for in
    this Regulation exceeds the proceeds of sale of the said products on the
    market .
    The intervention agencies' accounts must clearly distinguish between the
    quantities and pri ces of products bought-in and sold under the distillation
    provided for by this Regulation and any products taken in under other
    distillation operations .
    If the difference referred to in the first subparagraph is less' than the
    maximum amount multiplied by the number of hectolitres of the product sold ,
    expressed as pure alcohol , the contribution shall be equal to that difference .
3 « Articles 4 axid- 5 of Regulation (EEC ) NO 729/70 Bhall apply to the EAGGP
    contribution referred to in this Article .
                                     Article 14
                       \
The minimum prioe ,. the obligation to observe the minimum price and the right
of producers to conclude bhe delivery contracts referred to in Article 5 shall
be terminated when the representative price for table wine of the type in
question exceeds $0 $ of the guide prioe for three consecutive weeks .
The decision to terminate fehall be taken by the Commission.
 ---pagebreak---                                      - 10 -
                                   Arxicle 15
This Regulation shall enter into force on the day of its publication in the
Official Journal of the European Communities .
                           ι
                           i
This Regulation shall he "binding in its entirety and directly applicable in
all Member States .
Done at Brussels ,                             For the Counoil
                                                The President