CELEX: 51989PC0155
Language: en
Date: 1989-04-07
Title: Proposal for a COUNCIL REGULATION (EEC) laying down general rules for distillation operations involving wine and the by-products of wine-making (presented by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (89) 155
Vol. 1989/0044
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 concerning
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In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1. Februar
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                                      ) 155 final
                                                         Brussels , 7 April 1989
                                       Proposal for a
                              COUNCIL REGULATION ( EEC )
      laying down general rules for distillation operations involving
                  wine and the by-products of wine-making
                         ( presented by the Commission )
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 ---pagebreak---                              EXPLANATORY MEMORANDUM
On 1 April 1987 the Commission instructed its departments " to produce
a formal consolidated version of legislative instruments no later
than after their tenth amendment " ( C0M(87 ) Min 868 ).   The Commission
was responding to repeated urgings from Parliament and other quarters
that Community law should be made clearer and more accessible to the
ordinary citizen and recognizing the need for consolidation and
simplification of Community legislation in the various fields it covers .
This proposal , which would provide a consolidated version of Council
 Regulation ( EEC ) No 2179 / 83 of 25 July 1983 laying down general rules
for distillation operations involving wine and by-products of
wine-making , forms art of a broader programme of consolidation of the
wine regulations ; although Regulation No 2179 / 83 has not been amended
frequently , it is referred to daily by those concerned with the
management of the wine market , and the most recent amendments , made
by Regulation 2505 / 88 , have changed its original structure to the
point where a consolidated text would be useful .
The proposal aims at legislative consolidation : the existing regulations
would be replaced by one new one , which would leave their substance
untouched but would assemble them into a single text , with only the
 formal amendments required by the operation itself .
 In the text attached improvements and corrections have been entered
 on a photocopy of the original text , so as to make them immediately
 identifiable .
 ---pagebreak---                 COUNCIL REGULATION ( EEC ) No 2179/ 83
                           of 25 July 1983
laying down general rules for distillation operations Involving
             wine and the by-products of wlne-maklng
              ( OJ No L 106 of 3 August 1983 , p. 1 )
            amended by Commission Régulations ( EEC ) :
           2687 / 84    ( OJ No L 255 Of 25 . 9.84,p . 1 )
         corr Igendum   ( 0J No L 280 Of 24 . 10 . 84 , p. 15 )
         corr Igendum   ( 0J No L 315 of 5 . 12 . 84 , p. 30 )
           3805 / 85    ( 0J No L 367 Of 31 . 12.85 , p. 39 )
           2505 / 88    ( 0J No L 225 Of 26 . 7 . 88 , p. 14 )
 ---pagebreak---                                                                      Proposai for a
                                            ^                 COUNCIL REGULATION (EEC)
                                           laying down general rules for distillation operations involving wine and the by-products
                                                                                    of wine-making    '
               ‘ ” THE COUNCIL OF THE EUROPEAN
           !': v*       COMMUNITIES,
                     .   '    f
                    , Having regard to the Treaty establishing the Euro¬
                         pean Economic Community,
                               ,                                     *
                       Having regard to Council Regulation (EEC) No 822,/ 87 of
                       1 6 March 2 987 on the common organization of the market
         r*            m wine (>), as last amended by Regulation (EEC)
                       No ^5°/88 (*), and in particular Articles 3S (7), 36 (5), 38(4), 39
                       (S ), 41 (8 ), 42 (4) and 79 ( 2 ) thereof, '
                                          '•J                                . . 6, •
       (-       M '’ •    ' '   i­
       !'■               Having regard to the proposal from the Commis-
       •                 sion,
                           Whereas the general rutes for distillation operations
                           involving wine and the by-products of wine-making ,
                           laid down by Council Regulation ( EEC ) No 2179 /83,(3 )
                           as last amended by Regulation ( EEC ) No 2505 / 88,(4 )
                         have been subs tan t i ,i I I y amended ; whereas it is appropriate,
                          for reasons of clarity , to consolidate the said
                          Regulation ;
                           Whereas trade in new wines still in fermentation is
                           of negligible importance ; whereas it is desirable to                 2.8 2179 / 83
                           ensure that such trade is not used by certain opera¬
                           tors solely to secure access to voluntary distillation
                           operations and that wine marketed at this stage of
                         production cannot in this way elude compulsory
                         distillation ; whereas, in the same concern to prevent
                          abuse of intervention measures it is desirable to lay
                          down special exemptions to deal with the possibility
                           of speculative movements in the trade in wine
                           products ;
                        Whereas, where wine-growers’ cooperatives have formed
                        themselves into associations , ihe administrative and material
                        operations for the delivery of wine for distillation may be
                        facilitated if the associations in question are allowed to carry        1 .  2505 / 88
                        out such operations ; whereas it therefore seems advisable to
                        allow, for a limited period at the end of which the results will
                        be assessed , Member States, under certain conditions , to
                        authorize the associations to substitute themselves for the
                        wine-growers’ cooperatives party thereto for the purposes of
                        the conclusion of contracts and the delivery of wine; whereas
                        it must be stipulated that the same guarantees offered by
                        the norma) procedure with regard to compliance with
                        obligations and the limitation of advantages for the
                        producers must be ensured ;
(U    0J        No        84 ,     27 . 3.1987 ,  p.  1
(2)   0J        No     373 ,       31.12.1988 ,  p.  55
(3)   0J       No      212 ,        3 . 8.1983 , p.   1
( '*) 0J       No      225 ,       26 . 7.1988 , p.  H
                                                                                                                                    Ц-
 ---pagebreak---   Whereas' it is necessary to determine the products
  which may be obtained by distillation, and in parti¬                  2179 / 83
  cular to define minimum qualitative characteristics
  for neutral alcohol ; whereas, in fixing these charac¬
  teristics , account must be taken of present technol ¬
  ogical developments and of the need to ensure the
  production ol alcohol which can be sold normally
  on the markets for the various uses ;
Whereas the checks on products intended for distillation             . 2505 / 88
should be reinforced ;
 Whereas, as regards voluntary distillation it should
be laid down that producers must conclude delivery                   . 2179 / 83
 contracts with distillers which are subject to
approval by the intervention agency, in order to
allow supervision of the operations and a check on
the compliance of both parties with their obliga¬
 tions ; whereas this system also makes it possible to
 follow more clearly the quantitative effects of distil ¬
 lation operations on the market ; whereas, however,
 adjustment of the contracts system is needed to take
 account of the existence both of producers who wish
 to entrust distillation to a jobbing distiller and of
 producers who have distillation plant themselves ;
Whereas it is particularly important to lay down specific rules     3.   2505 / 88
to ensure that wine delivered for one of the optional
distillation operations comes from the producers’ own
production; whereas, to that end , provision should be made
that such producer must furnish proof that he has actually
produced and that he holds the wine to be delivered ; whereas
rules should also be drawn up ensuring a sufficient check on
the essential elements of the distillation contracts ;
Whereas Article 47of Regulation ( EEC) No 822 / 87                  6.   2179 / 83
makes recourse to the distillation operations prov¬
ided for in Articles 3& 41 and 42 of that Regulation
conditional on the producer’s compliance with cer¬
 tain obligations ; whereas, therefore, provision               1
 should be made for the intervention agency to                  |
  receive proof that the producer has met these obliga-         £
  tions ; whereas the necessary provisions should be
  adopted to ensure that no financial contribution is           i
  payable by the Community in cases where . prod¬
  ucers have not met the abovementioned obligations ;
  Whereas, on the basis of experience gained, it is                 5J   2179 / 83
  desirable to allow a certain tolerance in the quantity
  and actual alcoholic strength by volume of the wine
  in the delivery contract ;                                      !
  Whereas the prices set for wines for distillation in          |   7.1 2179 / 83
  Articles 3 S. U      and 42 of Regulation ( EEC )
  No 822 / 87 are usually such that the products
  obtained by distillation cannot be disposed of under
  market      conditions ;  whereas ,  therefore ,  criteria
  should be adopted for fixing the amount of the aid
  so as to make possible the disposal of the products             1
  obtained ;                                                    f
 ---pagebreak---          Whereas it is necessary to set          time limits
        as regards the payment of aid to distillers         by            I
        the intervention agencies; whereas provision should
also be made for advance payment of aid to the distiller ;
        whereas, to ensure that the intervention agency is
        not exposed to unjustified risks, it is necessary to
        provide for a system of securities ;                            I
        Whereas the quantities of wine which may be I
       delivered for distillation as referred to in Article 41 j
       (!) or (2) of Regulation ( EEC) No 822/87 are {
        limited ; whereas, therefore, the Commission should j
       be regularly supplied with particulars of the quanti- I
       ties of wine intended for distillation, so that it can j
       decide, at short notice if required , to halt the sub- §
       mission of contracts and declarations anij prevent f
       the prescribed quantities from being exceeded ;                 |
      Whereas experience has shown that, where compul ¬
      sory distillation is concerned , it is not always easy
     /for producers to calculate exactly the quantities of
      products which they have to deliver in order to meet
      their obligation ; whereas provision should be made
      to ensure that the expiry of the period for delivery
      does not entail , for producers who have delivered '
      almost all the quantities required and have only to
      make some adjustments, consequences which are
      out of proportion to the infringement committed,
      particularly as regards the application of Article U7
      (!) of Regulation ( EEC) No 02276 ? whereas, to this
      end , it would seem advisable to consider that such
      producers have fulfilled their obligations within the
      time limits, provided that in due course they deliver
      the quantities outstanding ; whereas , however, in
      such cases an adjustment should be made to the
    ^ financial contribution payable by the European                  I
       Agricultural Guidance and Guarantee Fund
      ( EAGGF) in respect of the quantities delivered after
       expiry of the time limit ;
   Whereas    compulsory distillation isVvitaT factor in achieving ■ |
   balance on the marker in table wineaod an indirect; factor
   the structural adjustment of Wine-growing potential tb'i
   requirements; whereas it is therefore Vital. 'that' compulsory^ |
   distillation be enforced very strictly and that all persons
   subject to the obligation to distil actually deliver for
   distillation the quantities corresponding to their obligation;
   whereas exclusion from intervention measures under Article |
   47 of Regulation (EEC) No 822 / 87'has proved insufficient |
   in certain cases to ensure that obligations are met by persons
i
   subject thereto; whereas provision must therefore be made |
   for additional Community . measures to 'he adopted for
   producers who do not fulfill their obligations before the fixed •* j
   time-limit but who do fulfil them before another daw to Ho.; |
   specified ;                                     ....      ,  /:
   Whereas the buying-in price of wine deliver¬
   ies should apply ex distiller’s premises ; whereas
   in certain cases, transport is ensured by the distiller on
   practical grounds ; whereas in order not to disturb this
   practice which is often necessary, it should be speci¬
   fied that in such cases the transport costs will be ;
   deducted from the buying-in price ;
 ---pagebreak---         Whereas the obligation to distil represents a con- !
       siderable constraint for the isolated producer who ,
       makes only a small quantity of wine ; whereas , as a ,
       result of that obligation, he would incur transport                          1 2   2179 / 83
       i osts for his grape marc and wine lees which would                                ( adapted )
       be out of all proportion to the return which he could .
       hope to obtain on the alcohol distilled therefrom ;/
       whereas such producers should                 therefore         be-
       allowed not to make delivery ;
                                                    ■".ir-
     Whereas it should be stipulated thaYjin respect of thajparr’of «
     their wine production actually delivered for distillation under '
     Articles 36 and 39 of Regulation (EEC) No 822 / 87 , ;
     producers are required to deliver only by-products of                          9.    2505 / 88
     wine-making for distillation as provided for in Article 35 of -
     that Regulation.         yr /•        ‘                    . i -;
     Whereas in certain ^wine-growing areas, .distillation . of .v’
     by-products represents, for certain 'producers of -small .-'j
     quantities    subject -to ' the  obligatidn . ro i 'distil ,           a' :i
     disproportionate burden; they should therefore be granted , ■: 1               10    2505 / 88
     at the request of the Member State fromwhieh they come,' tho
     option of freeing themselves from their obligation by
   ; withdrawal under control; /’.-V           1   -‘'t ■ , ■ ■
     Whereas, in accordance with Article 11 ( I ) of Coun - ; ]
     cil Regulation ( EEC ) N0823 / 87 of 16 March 1987 '                           15    2179 / 83
     laying down special provisions relating to quality '
     wines produced in specified regions (’ ),                           ’ >/
     yield per hectare is fixed for each, quality wine psr,                 •!
     which facilitates observance of the prohibition
     against the pressing of wine lees and overpressing of
     g»apes ; whereas, moreover, the marcs and lees of C
     white quality wines psr contain little alcohol ; /
     whereas, therefore, it is desirable’ for a reduced ^
     rate to be applied to these products ;          •.                     ^
                            > •* -           '   . s/                    ‘C
     Whereas producers who deliver their niarc for the //                                 2179 / 83
     manufacture of oenocyanin generally supply non- ,
     fermented grape marc ; whereas the treatment which ?-
     such marc undergoes for the extraction- of oenocy¬
     anin makes it unsuitable for fermentation and distil¬
     lation thereafter ; whereas those producers should
     therefore be exempted in proportion to their produc-
     tion of grape marc ;                                                '
     Whereas , if the wine to be delivered for distillation
i is used for the manufacture of wine vinegar, the vol ¬
                                                                               i!
     ume of alcohol delivered to intervention agencies is                         1 6 .   2179 / 83
V likely to be reduced ; whereas, therefore, producers
(/ should be allowed to discharge their obligation to
' /distil by delivering to the vinegar industry the wine
7/ : which would otherwise be necessary to make up the
  ‘ quantity for compulsory distillation ;
     Whereas, where the by-products of wine-making are
  - withdrawn under supervision in accordance with
     Article 35(4) and (5) of Regulation ( EEC) No822 / 87
         , it is important to ensure that all by-products of                      1 7 .   2179 / 83
     the processing of grapes have been wijgidrawn by
     the end of the wine year in Which they were prod ¬
     uced ; whereas, for this purpose , provision should be
     made for an appropriate monitoring system , without
     this giving rise to disproportionately high adminis¬
     trative costs , especially in Member Stales whose
      wine production is very low ;                                                     1
 ---pagebreak---   , Whereas, the proof required that marc, lees or wine
 : have been delivered to a distiller should differ
     according to whether the distiller is established in                    2179 / 83
     the same Member State as the producer or in
     another Member State ;
     Whereas distillers may, in accordance with Article                      2179 / 83
     35 (6), Article 3 6 (4) or Article 39 (5) of Regulation
     ( EEC) No 8?2 /8 7 » either qualify for aid in respect of
     the product to be distilled or deliver to the interven­
     tion agency the product obtained by distillation ;
     whereas the amount of the aid should be fixed in the
     light of the market price for the various products
     which may be obtained by distillation ;
     Whereas, to qualify for the aid, the parties con­
   ' cerned must lodge an application accompanied by a                 2 0 . 7179 / 83 .
^ number of supporting documents ; whereas the                      .        ( ad » p t ed )
    nature and number of the documents demanded must
    reflect the differences existing between wine and
    wine lees on the one hand , and grap e marcs on
   ^he_ _, °*h.er l _ __                  ■    _ whereas, to
'Fensttre' tKat' -th©' system operates "uniformly in all
^ Member. States, time liihtts for the lodging of appli- •
 ideations and f©r.<tbe payment,, of aid to distillers
 r - should be laid down ; whereas it is also advisuble to
 ,yvmake proportional allowance for distillers who,
j . although they have met their principal obligations,
j are late in furnishing proof thereof ;
            '>      ,       ”    .     ■ -  •     .             •    ,
       Whereas the price to be paid by the intervention
       agencies for the products delivered to them should              2 l , 2179 / 83
       be fixed in the light of the average cost of transport
       and distillation of the product in question ;
       Whereas a single standard price should be fixed for
       products delivered to intervention agencies in con­
       nection with the distillation operation referred to in          22 .    2179 / 83
       Article 35of Regulation ( EEC) No822 / 87 , irrespec­
       tive of the origin of the products ;
        Whereas, in certain regions of the Community, the
        relation between the quantities of marc and those of             23 . 2179 / 83
        wine and lees is such that the average distillation
        costs differ from those used to calculate the start- ;
        dard price ; whereas, as a result of this situation, it is,
        or is liable to be, economically impossible in certain '
        of ihese regions to achieve the objective of the obli­
        gation to distil the by-products of wine-making ;
         whereas it is therefore necessary to fix , at the same
         time, both a standard price and prices differentiated
         according to the origin ol the product obtained from
         the distillation , while leaving it to the Member
         States to decide whether such differentiated prices
         should be applied in regions where application of
         the standard price would lead to the difficulties
         referred to above ;
 ---pagebreak---          Whereas recourse to this option must not increase
                                                                           24 .       2179 / 83
         the expenditure incurred by the intervention agency
         and, hence, by the EAGGF ; whereas it is necessary
         to correlate the prices differentiated according to the
         origin of the alcohol and the standard price ;
         whereas this correlation must be such that the
         weighted average of the prices differentiated accord¬
         ing to the origin of the alcohol does not exceed the
         standard price ;
                                                                                       2179 / 83
                                                                                  !
         Whereas , in the absence of an organized Com ¬
         munity market in ethyl alcohol , the intervention
         agencies responsible for marketing the alcohol
         which they are obliged to take over following the
         distillation operations referred to in Articles 35 and
          36of Regulation ( EEC) No822 / 87 have to re-sell it
         at less than the buying-in price ; whereas provision
         should be made for the difference between the buy¬
         ing-in price and the selling price for such alcohol to
         be borne , at the standard rate , by the Guarantee Sec¬
         tion of the EAGGF ;
                                            • - f ■' . " ■***'?#
                                                                            1 1 .      2505 / 88
      Whereas , since the Communityis responsible for the disposal . ■:**,
      of certain wine alcohols, it is incumbent upon it to obtain a •' ^
      better insight into the transactions carried out on rhe alcohol' ’?V
      market ; whereas for this reason , the information that thet -
      Member States communicated to the Commission on the ^
      subject of alcohol deriving from compulsory distillation
      should he extended to alcohol deriving from voluntary fJ
      distillation , held by the intervention agencies;             ;   v
£ » Wherc6* ;the characteristics which products that could be                12 .       2505 / 88
! delivered for distillation must present should be better
   , defined ;       1   j ,
 .. Whereas the physical checks on . products entering for                   13 .       2505 / 88
      distillation should be carried out under procedures ensuring
; adequate xepiesentativity;
 f Whereas the consequences of rhe producer’s non-compliance                 14 .       2505 / 88
                                                                                    !
 /. with his obligations must be set out; however, provision
 j*'; should be made for the Commission to adopt rules to be
 ^Applied, in Aspect df rights tri aid , to distillers who do not
 It comply with certain administrative. time-limits, in particular
 ?■ to take into account the proportionality principle ;
      Whereas steps should be taken to cover unforesee¬                      28 .       2179 / 83
      able circumstances or force maieure which may
      prevent distillation from taking place as planned ;
                                                                             32 .       2179 / 83
       Whereas, in order to ensure appropriate supervision
  ■ of distillation operations, distillers should be subject
       to a system of approval ;
      Whereas, to take account of the actual situation on                    29 .     ! 2179 / 83
      the market in wine for distillation , both distillers
      and makers of fortified wine should be permitted to
      fortify such wine for distillation and the necessary
      adjustment should be made to the overall arrange¬
      ments ;
 ---pagebreak---         Where.!.'. Member S' .ires should be able to restrict      |          2179 / 83
       Ihe places at which wine may be fortified for distil-       jp
        latiun in order to ensure the most appropriate form        3
       of supervision ;                                            f
       Whereas conditions should be stipulated for the |
       payment of the price for the wine , for the payment ?
       of aid to makers of fortified wine , for advance f
       payment of such aid , and for the provision and              |
       release of a security ;
       Whereas the addition of an indicator to wine for dis¬               1
       tillation is an effective method of supervision ;
       whereas it should be stipulated that the presence of
                                                                     13 1  I 2179 / 83
       such an indicator shall be no bar to free movement
       of such wine or of the products obtained therefrom ;
      Whereas to take into account certain practices existing in
    , ‘pertain Member States with regard to the transport of         Il 5   ? 2505 / 88
 ^products tothe distillery, in partiallarwhere small 'quantities
gjri are involved,.'Member States should be authorized to allow
(.•'.them to be transported in bulk ;
^'•.'Whereas certain . definitions , and administrative procedures
                                                                      *     5
tv should be laid dowrq                                               !     S
                                                                      J16 .|   2505 / 88
             HAS ADOPTED THIS REGULATION :
 ---pagebreak---                                              .   - г4 . V ••.
                                               ■олгу        .
       r                      •?    (
       • ;fr                        < • ••;        \      .'
    This Regulation lays down: . : ■                             2505 /88
■ (a) -'.^in,. Title I,, the general rules for the. distillation
>* i' ,j operations provided for m Articles 38 , 41 and 42
          inf Reg- station (EEC ) No 822 / 87;          '
4 .^(b)..in Title II , the general rules for the distillation
>.   . • operations provided for in Articles 35 , 36 and 39
       . , of Régulation (EEC) No 822 / 87;
    (c) in Title III, the general rules applicable to -all
           the distillation operations covered by Titles 1
           ana.ll ..
                                                                          M
 ---pagebreak---                                  Article 2                                               2179 / 83
I. For the purposes of this Regulation the follow¬
ing definitions shall apply :
   (a) “producer” :
         – for the purposes of Title I : any natural or
               legal person or group of such persons                                     2687 / 84
               having produced wine from fresh grapes,
               grape must or partially fermentejl grape
               must, obtainad personally or purchased,
             jJrfcthe■ ptisposss.dl 1 xds Ss«ay natural or legal
                        or , group ' of 'such persons having
                                                                                         2505 / 88
              produced wine from fresh grapes , grape must
              or partially fermented grape must or from new
              wine still in fermentation , obtained personally
              or purchased , or any natural or legal person or.
             group of such persons subject to the obligations
              referred to in Article 35 of Regulation ( EEC )
              No 822 / 87 ;
     (b) “distiller” : any natural or legal person or
         gioup of such persons :
         – distilling wine, fortified               wine or the                          2687 / 84
                by-products of wine-making or of any
                other form of processing grapes, and
         – approved by the competent authorities in
                the Member State in the territory of which
                the distillation plant is located ;
                                  '  ''                              ' ■ ■■
    (c) “maker of fortified wine" ; any natural or legal
         person or group of such persons other . than a.Cj
         distiller :           s    • '         • '       - V •• '
          .                . .            ,          >             ,          .
                 * '■                   ;        •:    ’   •     1
         – engaged in- processing wine into 'fortified
               wme, and
         – approved by the competent authorities in
               the Member State in the territory of which                       .
               the processing plant is located ;               -                  y
    (d) “competent intervention agency” :
         – where the reception and approval of
               contracts or. declarations relating to the                          .. j
               delivery of wine for distillation and recep¬
               tion and approval of contracts relating to ' “
               the delivery of wine for fortification arc                          L
               concerned, the intervention agency desig-
               hated by4 the Member‘State on the territory                           :
               of which the wine is located at the time
               when' the 'contract or declaration 1 ' is
            . submîfceed,:-;;';                          r     vf •
       ' – for the purposes or paying the aid’ to the ' : t
              makcr of fortified wine as provided for in''"'7 ;;',
              Article - 26 (d), tbe intervention agency
              des!gttsfid'.;fcy. the ' Member State -un
              territory'ot"whfch fortification of the
               takes place,'.'              •.?              • ■            . .■»'
         – in all other , cases, the intervention agency                               j
               designated by the Member State in the                                   j
               territory of which distillation takes place. 1
 ---pagebreak---   ,y '        ^withstanding the first indent of the                       2179 / 83
  '/        first subparagraph (a), it may be decided under the
    ■ 1     implementing rules that for one or more of the wine­
  * /       growing zones or parts ofzones, the status of ‘prod-
  ." Vucers’ be confined to those producers satisfying cri­
            teria to be specified, in cases where, in the said
   • ’ wine-growing kones or pans of zones, trade - in the
            products used for making wines delivered for distil-
  *L- v lation might encourage abuse of the system .
            2. For the purposes of this Regulation^ distillers
            shall be deemed to be naturaj or legal persons or
^ groups of such persons'! other than makers of fortified
            wine if they :
                                                                        * 2687 / 84
            -T- 'are approved by the competent authorities of
                  the Member State in which they are established,
            – buy from a producer as defined in para­
                  graph 1 (a) wine or the by-products of wine-
                  making or of any other form of processing of
          •.      grapes with a view to having them distilled for
                  their own account by an approved distiller, and
            – pay the producer for the product purchased, not
                  less than the minimum buying-in price for the
                  distilled product in question .                    J
               Persons or groups deemed to be distillers shall ^
              be subject to the same obligations and enjoy"-;'//
              the same rights as distillers. "                   ' ’  I
                                                                           2687 / 84
              3.    Member States may, in accordance with
            rules which they determine, lay down that, for the
            purposes of the conclusion of contracts and the
            delivery of wine for distillation , associations of
            wine-growers’ cooperatives shall on request be                 2505 / 88
            regarded as producers in respect of those quantities
        ‘-“'1
            of wine produced and handed over by member
            Cooperatives. The latter shall in any case continue
            to hold the rights and be bound by the obligations
         ■ laid down in Community regulations.
 ---pagebreak---      Should aa association intend during a specified
     wine year to carry out, in agreement ' with ■
     the wine-growers’ cooperatives concerned , a
     distillation operation referred to in Article 1 ( a ), it
     shall inform the intervention agency in writing. In
     that case :
     – member cooperatives may not individually
          sign distillation contracts or make deliveries
          for the distillation in question ;
     – the quantities of wine delivered for distillation
          by the said association shall be booked to the
          member cooperatives on whose behalf the
          delivery is made.
     ■With regard to the application of Article 47 of
 ’'- Regulation ( EEC ) No 822 / 87, failure to comply
.. with the obligations laid down therein by one
      or more member cooperatives shall mean ,
      irrespective of the consequences for the latter, that
      the association is excluded from deliveries for the
      distillation in question , within the limit of the
      quantities of wine to be delivered on behalf of the
      wine-growers’ cooperatives which committed the
      infringement .
      Member States which exercise the option set out in
      this paragraph shall inform the Commission
      accordingly and shall notify it of the provisions .
      which they have adopted for this purpose. The
      Commission shall inform the other Member
      States .
      4.      Paragraph 3 shall apply until 31 August
       1992 .
        By . 31 March 1992, the Commission shall
      submit to the Council a report on application
       of the said ' paragraph , accompanied , if
       necessary by an appropriate proposal . The
      Council shall then act on any measures to apply as
       from 1 September 1992 .
 ---pagebreak---                                   Article 3
                                                                    2179 / 83
'* ?. 1 . -Only the following may be obtained by the dis­
      tillation operations.referred to ift Article 1 :
       (a) neutral alcohol as defined in Annex 1/ or
       (b) wine spirit or marc spirit meeting the qualitative
               requirements laid down in Community rules or,
               where no such rules exist, by the national provi­
               sions applicable thereto , or
       ( c ) a distillate or raw alcohol with an alcoholic
               strength of at least 52 % by volume .
       Where the product specified in point (c) in the first
       subparagraph is obtained , it may be used only under
       official supervision for :
          (i ) the production of an alcoholic beverage,
         (ii) processing into one of the products specified at
               point (a) and (b),
       (iii ) the production of alcohol for industrial pur­
               poses .
        Member States shall take the necessary measures to
       ensure compliance with the obligation laid down in
       the second subparagraph .
          2.      If wine suitable for production of ’ ,HCertam',P?
         spirituous beverages with a registered designation .
         of origin is delivered to undergo one of the distil­
                                                                    2687 / 84
         lation operations specified in Article 1 , it may be ,,~
         decided that only a product with an alcoholic
        strength of at least 92% by volume may be,-;,'
         obtained by the direct distillation of such wine.
          3. Before 1 September 1988 the Council, acting by
          a qualified majority on a proposal from the Com­
          mission, shall decide on a reduction by 30 grams per      2179 / 83
          hectolitre or less in the maximum methanol content
          mentioned in the definition of neutral alcohol set
          out in Annex I , in so far as this reduction is com­
          patible with technological progress.
 ---pagebreak---                               TITLE I
General rales relating to the voluntary distillation of wine
           Article 4
           1.    Any producer intending to deliver a wine of his
          own production for one of the distillation operations
          specified in Article I (a ) for which he satisfies the
          conditions ;ajd down for each wine year and each
          distillation rn the Community rules shall conclude a
          delivery contract , hereinafter referred to as the
          “contract”, with a distiller and submit it to the
          competent intervention agency for approval , by a date
          to be Specified,
          At the same time he shall provide proof that he has
          actually produced, and that he holds, the quantity of
          wine to be delivered .
          Producers subject to the obligations referred to in
          Article 47 (1 ) of Regulation ( EEC) No 822 / 87 shall
          also provide the competent intervention agency with
          proof that rhey have fulfilled those obligations during
         the reference period set in accordance with the said
         Article.
         2.      The contract shall specify for the wine concerned
         at least :
    . fa) the quantity ;
         (b) the various characteristics, in particular:
      .        – oolour ,                                          ,
                    actual alcoholic strength by volume.
                                              uy  v v : tuiiv- ,
          The producer may not deliver the wine for distillation
   ’ unlessthe contract has been approved by the competent
         intervention agency by a date to be specified /         '
         Where distillation is carried out in a Member State
         other chan that in v/hich the contract is approved , the
         intervention agency which approved the contract shall
         forward a copy thereof to the intervention agency of the
         first Member State .
         Incase of distillation pursuant to Article 41 ( 1 ) or ( 2 ) of
     : Regulation (EEC) No 822 / 87 , it may be decided that a
         contract submitted by a producer who , during the same
         wine year, has obtained approval for a contract relating
 \ ’ to a delivery for distillation pursuant to Article 38 of
       ' that Regulation shall not be approved unless he
       "provides proof that at least a quantitiy to be specified of
         the twine to which the contract approved under Article
         33 refers has been delivered to a distiller or a maker of
         fortified v/ine .
 ---pagebreak--- Where die option provided for in Article 41(3 ) of
Regulation ( EEC) No 822 / 87 is exercised , submission
of proof as referred to in the fourth subparagraph of this
paragraph shall be required .
 3.       The distiller shall pay to the producer for the wine 1 '
 delivered tohim at least the price specified in Artide'3/C
 ( 2 ), 41 (6), or 42'(3f of Regulation (EEC) No 822/87*- t
 as the case may be, such prices ’to apply to “bulky
 merchandise o; producer’s premises . • '                 "              ’ ; l!
                               ■, .i       •            ■  • .    y.t           if
 4.       The minimum buying-in price ’ referred tovitK ' j
 paragraph 3 shall be paid by the distiller to the producer V
 within a period to be' determined . ' ‘ r ' ' , ^ ./'•C                        \
                                    r .    •      ' ' V. . : V.; ,         ;- V';
 5.       Member States 'shall carry out, ‘by means W ' ^
 representative spot checks,’ physical checks on ar least - .?
 the following elements: "                   .’       ■                    -v*?'
                                        ;       '
 – aaual production and holding by the producer of
       the quantity of wine intended for delivery;
       colour of wine . entered in the contract ;
 – actual alcoholic strength by volume entered in the ,
       contract; however, a variation of 0,8 % volume is \
       permitted between the actual alcoholic , strength” ^
       determined at the time of checking. ' ;                   - > ,!/   ri; y
 The checks shall be carried out at any rimebetween-the 'V
 submission of the contract for approval and the entry of y :
 the wine into rite distillery, ; f              *./. . ' V y ; > , • ?
 Detailed rtdes .concerting' th$Jrepresentativeness of the . i-
 spot checks referred- to in the first subparagraph ;otyy $
paragraph l.ahall'bsyadopted tinder the procedcrclaictJ j
down in’ Article' 83 of.- 'Regulation (EEC) No
 8 22 / 87 .■ > , ' .                    ,,
 ---pagebreak---                                     Article 5
                                                                             2179 / 83
    1.      Producers referred to in Article 4 ( I ):
    – who themselves possess distillation plants and
            who intend to carry out the distillation referred
            to in Article I ( a ), or
    –        who intend to have their wine distilled on their
             behalf in the plant of an approved distiller
             working under contract ,
    shall submit for approval to the competent interven­
    tion agency, before a date to be specified, a declara­
    tion of delivery for distillation , hereinafter referred
    to as the ‘declaration’ .
• -p-j Y r;,: »tvw»5sal?-v
     Proüucers'æib'jacî totfee-obü^îîOîîs>^ïerr^:Wç£.'5' l*
    Article 47 (1 ) of Régulation (BEC)
    shall also • ‘provide** 'Th^eotnpcTcnrtinrrrvcTitiORV;'^;
    agency with proof that’ they hav^^fulfdted' tbose ^* -                   2505 / 88
    obligations1 ‘during- 'the- reference period ‘see.
    accordance' - with ” Article ' ■ 47 ‘ {3 ) ‘
    Regularioniv'-
   2 . For the purposes of this Regulation, the contract
   shall be replaced :                              1                f '     2179|/ 83
                                                              *    ; '.V.
   –      in
          in     the case specified in the first indent of the' ••
           first subparagraph of paragraph 1 , by the depla-“*
          rafir&n                                               M ' -t
                                                                       '.S 1
   – , in the case specified in the second indent of the’
           first subparagraph of paragraph l , by the decla- r
           ration accompanied by a contract for delivery ■
           for distillation on the producer’s behalf con- V
           eluded between the producer and the distiller.                 '
                                                                     • J
    Article 4 sKaüi
   being deerned ‘als© tolder tQ'-rhc’ declarøuon ,
                           ■ ‘V.i- ' C.S.., . L’, ;«« •V’KV*!                 2505 / 88
 ---pagebreak---               Artide 6
             1.      For each -producer from whom he has received'J!         2505 / 88
             deliveries of wine, the distiller shall , in respect of cadiSt
             delivery , communicate to the competent intervention^
             agency the quality , colour and actual alcoholic strength 3
             liy volume of the wine , together with the number of the
             document provided for in Article 71 ( 1 ) of Regulation^
             ti l ( ) No 822 / 87 and used for the transport of the ,-|
             wine to the distiller’s premises .                            *
              2.       If distillation is carried out by the producer
1'            himself in his capacity as a distiller or by a distiller
          .. acting on the producer’s behalf, the information
              referred to in paragraph 1 shall be submitted to the
N no* competent intervention agency by the producer.
«•$*» .*,. 3.        '.The distilled shall provide the intervention
g^agenen within a time-limit to be specified , with :
                   proof that the total quantity of wine stipulated in
V-' ..             the contract or declaration has been distilled within
       7.
                   the time-limit laid down;
                   proof thatVe has paid the producer the minimum
                   purchase price referred to in Article 4(3 ), within the
                   time-limit laid down .
              In the case referred to in paragraph 2 , only the proof
              referred to in the first indent shall be supplied by the
              producer to the intervention agency .
                                                                                       M
 ---pagebreak---            Article 7
  i. ui> The aid to be paid to the distiller or , in the cases
tZ'
                                                                         2505 / 88
 ,.       referred to. in Article 6 ( 2), to the producer , for wine
          which has undergone one of the distillation operations
          provided for in Articles 38 , 41 and 42 of Regulation
          (EEC) No 822 / 87 shall be fixed , per % volume of
 j$'      alcohol and per hectolitre of the product of distillation ,
 &').'• ' on the basisof the minimum purchase price fixed for the
 K.*i,v ;idistil3at30rij‘ operation in question , the standard
          transport and processing costs, the technical losses and
               marldst'fwice fbrthe products of distillation .
  $’ . A ' ■' : ' / V . '
  *' Aid granted where neutral spirits are obtained from
  ?i ! , wine-may cot be less than aid granted where the other
  v’      products referred to in Article 3(1 ) are obtained .
       O'         The intervention agency shall pay the distiller or ,
          in tfiecases referred to in " Article 6(2), the producer^
           the aid calculated in accordance with para- j
           graph 1 within three months of submission of j
           the proof referred to in Article 6(3).                      j
                                                                                   ъ
 ---pagebreak---                                     II
 Article 9
 1.      The distiller or , in the case referred to in Article 6 2505 / 88
( 2 ), the producer , may request that an amount equal to
the lowest aid fixed for the destination operation in
question be advanced to him , on condition that he has
lodged a security in favour of ihe intervention agency.
That guarantee shall be equal to I 10 "/., of the said
amount in request of all distillation operations , with the
exception of the distillation operation provided for in
Article 38 of Regulation ( EEC ) No 822 / 87 , for which
the security shall be equal to 120% of the said
amount .
The amount referred to in the first subparagraph shall
be calculated per % volume ol alcohol indicated in
respect of the wine referred to in the contract or delivery
declaration and per hectolitre of that wine . -
The amount may only be paid if the contract or delivery
declaration has been approved .
2.       The security shall be released by the
intervention agency after submission , within the
time-limit laid down , of the proof referred to in Article
6 ( 3 ) and , where appropriate , in accordance with
detailed rules to be adopted under the procedure
provided for in Article 83 of Regulation ( EEC )
No 822 / 87 .
                                                                           J\
 ---pagebreak---            Article 8
         1.      The characteristics of the wine delivered for
        distillation may not differ from those indicated in the        I 2505 / 88
        contract or in the declaration , pursuant to Article 4
        ( 2 ).
      . However , as regards the alcoholic strength , a
'       discrepancy of 0,8% volume shall be permitted
        between the actual alcoholic strength by volume as set
I’,!, out in the contract or declaration and the actual
V- - alcoholic strength by volume as determined when the
 tpfi- wine enters the distillery.
  6^''^. v . •         -, ; •
        2.       No aid shall be due :
        <•
  i'    –. where the quantity of wine actually delivered for
               distillation is less than 95 % of that shown in the
               contract or declaration .
        – for that quantity of wine exceeding 105% of the
               quantities shown in the contract or declaration .
        – for that quantity of wine exceeding the maximum
               quantity laid down lor rhe distillation operation in
               question .
        i.       Except in the case of distillation as provided for in
        Article 42 of Regulation ( EEC ) No 822 / 87 , the
        quantity of wine delivered for distillation must not be
        less than a minimum quantity to be determined .
                                                                                   2
 ---pagebreak---                           Article II)
  1.    In the case of the distillation operations referred
 to in Article 41 ( 1 ) and ( 2 ) of Regulation ( EEC ) No
 822 / 87 , the producer may benefit from the measure
only in respect of a quantity of table wine no greater
 than the quantity specified in the contract or
 declaration.’
2 . During the distillation operations referred to in
paragraph 1 , the Member States shall periodically
communicate to the Commission particulars of the
quantities of table wine specified in the contracts
and     declarations    submitted     to  the  intervention
agency .
3.    Once the communications in paragraph 2 indi ¬
cate that the quantities specified in the contracts
and declarations have exceeded a quantity to be
delerm/ned under the implementing rules the Com ¬
mission shall decide to halt the submission of con ¬
tracts and declarations .
4.    Should the total quantity of table wine stated in
the contracts and declarations submitted to the
intervention agencies exceed the quantity deter¬
mined in accordance with paragraph 3, it may be
decided under the implementing rules that only the
latter quantity should undergo distillation. In such
cases , the quantities which have been entered in the
contracts and declarations and which may be
delivered for- distillation shall be reduced propor¬
tionately.                                               - vv
 ---pagebreak---                                           I -1
                                   TITLE It
              General rules relating <o compuisory distillation
A rticle 1 1
 1.     Producers subject to an obligation to distil under
Articles 35 , 36 and 39 of Regulation (EEC) No 322 / 87         2505 / 88
shall discharge their obligations by delivering to a
distiller, before a date to be specified , the quantities of
product to be distilled as determined in accordance with
the abovesnentioned Articles and with the measures
taken in implementation thereof.
 2.     Producers subject to one of the obligations
referred to in paragraph 1 who have delivered , by the
date fixed in accordance with paragraph 1 , at least
90 % of the quantity of product which they are obliged
to deliver may discharge that obligation by delivering
the remaining quantity before a date to be fixed by the
competent national authority .
In such cases :
– the purchase price for the remaining quantities
     referred to in the first subparagraph and the price
     forthe alcohol produced therefrom and delivered to
     the intervention agency shall be reduced by an
     amount equal to the aid fixed , in respect of the
     distillation operation in question , for neutral spirits
     in accordance with Article 16 ;
– for alcohol delivered to the intervention agency in
     accordance with the second indent of the first
     subparagraph of Article 35 ( 6 ) and the second
     indent of the first subparagraph of Article 36 ( 4 ) of
     Regulation ( EEC ) No 822 / 87 , the EAGGF
     contribution to expenditure by the intervention
     agency determined in accordance with Articles 35
     and 36 of the said Regulation shall he adjusted ;
 – no aid shall be paid for products of distillation not
  j delivered to intervention agencies;
 – the obligation shall be considered to have been
     discharged by the time-limit set in accordance with
  t- paragraph 1 ;
 – the time-limit for distillation , the time-limit for
      submission of proof of payment of the price referred
      to in the first indent and the time-limit for delivery
     of the alcohol to the intervention agency shall be
      adjusted by the competent authority to the
      extension of the time-limit for delivery .
 3 . The measures applicable to producers who have
 not discharged their obligations by the date referred to
 in paragraph 1 bur by another date to the specified shall
 be adopted in accordance with the procedure provided
 for in Article 83 of Regulation ( EEC) No 822 / 87 .
 ---pagebreak---                 I p
 Article 12
1.     The buying-in price referred to in Article 35 ( 5a )
of Regulation ( EEC ) No 822 / 87 shall apply to bulk
merchandise ex distiller's premises .                       2505 / 88
However , where the transport costs payable by the
producer are borne by the distiller , the amount of these
costs shall be deducted from the buying-in price to be
paid by the distiller .
2.     The buying-in price referred to in Articles 36 ( 3 )
and 39 ( 6 ) of Regulation ( EEC ) No 822 / 87 shall apply
to bulk merchandise ex producer’s premises .
                                                                      Λ
 ---pagebreak---                                            Чз
                Article 13
                1.       The obligations provided for in Article 35 of
               Regulation ( EEC ) No 822 / 87 shall not apply to :
                - producers who withdraw by-products of^
                   wine-making uride'r supervision in accordance
                   Article 14 ( 1 )* • •• . .                     : -r * .•“'A'.Jsht                    2505 / 88
                                                                              ,     V? .              i
                - producers of quality sparkling winesof the aromatic '.T                             !
                   type and of quality sparkling wines of the aromatic .7;
                   type produced in specified regions as referred to in,                              i
                   tiie first subparagraph of Article 18 ( 1 ), ofc ;>                                I
                  Council Regulation ( EEC ) (to 358/79 ( 1 ), who'-tfave
                  prepared such wines from grape must or partially
                  fermented grape must which has been purchased, j
                  and has undergone stabilizing procedures ta -efli -j
                  minate the lees .                                          ,■                      !
             Producers who have not made wine or processed grapes-V*:
             in any other manner on cooperative premises and who ,l'-,wt
             during the wine year in question , do not produce more<s:‘ ;
             than 25 hectolitres of wine or must shall be free not to - T*
            deliver any quantities .              .                                         •
             h may be decided that the second subparagraph shall
             apply , subject to conditions to be determined , to
             producers who have not made wine ot processed grapes , ?,%
             in any other manner or. cooperative premises and whos,. dv:>
             during the wine year in question , produce more than i T
             25 hectolitres but not more than 40 hectolitres of winey*-’.$
             or must .
             For that pan of their production of wine acTually )/"/*
             delivered to a distillery under one of the distillation'''-' *;
             operations provided for irs Articles 36 and 39- of Tf?
             P-egularion ( EEC) No 822 / 87 , producers, shall
             required to deliver, under the distillation' operation :‘ \
             provided for in Article 35 (2) of that Regulation , only ,‘i
            the by-products of wine-making..                               ....      .i'Vfey
                                           =, * '   - - ,/• , v     '=,’' !>■/ .t-.
             2.        The percentage . mentioned in the second ‘ f
             subparagraph of Artide 35 (2) of Regulation^ (EECli'ilsH
             No 822 / 87 shall be reduced in the case oft
             ( a ) producers who deliver marc for the manufacture of ,'* '
                                                                             r        i • f"VSP
                     oenocyamn ;                                                              . j
             ( b ) producersof whire quality wines par, in respect of . .. < Y
                     the part of their production which qualifies for this '
                     description .
             3.        In rhe case qf producers who deliver wine of their                       ,
             own produaion to the vinegar industry , the quantity of ‘ .V
             alcohol, expressed in terms of pure alcohol , contained ’"f-
             in the wine delivered to the vinegar factory shall be fd*
             deducted from the quantity of alcohol , expressed in 4V ><
             terms of pure alcohol , contained in the wine to be
             delivered for distillation to discharge the obligation ; '?/
             referred to in Article 35 (2) of Regulation, ( EEC)
             No 822 / 87 .         -   •                        '     - i;
                                                                                                  -J
'0J No L 54 , 5.3.1979 , p.130 .
                                                                                                                  H
 ---pagebreak---                Article 14
                                                          •       Ул              ;
              1.        Only the following producers may exercise the'- 1"
             option mentioned in Article 35 ( 5 ) of Regulation ( EEC)''-1       '
             No 822 / 87:                                                        |
                - those established in wine-growing areas where *               j
                   distillation represents a disproportionate burden . A        i   2505 / 88
                    list of the wine-growing areas concerned shall be          j
                    drawn up by the competent authorities of the
                    Member        States . The   latter shall inform the
                    Commission of this list;                                  !
 If v –            those who have not. carried out vinification or any
   f-     - .
*v                 Other processing of grapes in cooperative plants and
                   who have disproportionate distillation costs on
*,,Ч:          ,   account .pf their low volume of production and the
                   location ofthe distilleries . The implementing rules
                   governing this provision shall be adopted , at
                   the request of the Member State concerned , in
fc* • c.»          accordance with the procedure laid down in Article
rr ": -          *
                   83 of Regulation (EEC) No 822/ 87.
k, • •       2.        For the purposes of implementing Article 35 (4 )
Ф • and (5 ) of Regulation ( EEC) No 822 / 87 , the average
ί„· . minimum alcoholic strength of the by-products of
             wine-making to be withdrawn shall be laid down in
             accordance with the procedure laid down in Article 83
             of Regulation (EEC) No 822 / 87 .
              The by-products shall be withdrawn without delay and          j
 ■           no later than the end ofthe wine year in which they were       j
             obtained. Withdrawal , together with an indication of          j
        i the estimated quantities, shall either be entered in the         {
             registers kept in accordance with Article 71 ( 2 ) of          ,
              Regulation ( EEC ) No 822 / 87 or be certified by the
             competent authority .                                         j
              Member States whose wine production exceeds 25 000
              hectolitres a year shall , by means of sampling, check at
             least whether the average minimum alcoholic strength
              referred to in the first paragraph has been complied
 .            with and whether the by-products have been
 ?v withdrawn In full and within the time limits set .
                   ■ .'-.■L'yj - Jk' .         ;
 ---pagebreak---                                  Article 15
          1.     The distiller shall provide the producer , as proof
  >' , of delivery , with a certificate stating at least the nature ,
   J.-s the quantity and the alcoholic strength by volume of the
   i;v product delivered , together with the date of delivery .       2 505 488
        However, if a producer delivers the products which he
 Sri'sifto have distilled to a distillery located in a Member
 W; .State other than that in which the said products were
  j^liobtaiced,- the distiller shall require the intervention
 ',r‘J Agency of tbcMembcr State in which distillation takes
‘•^’’^place to certify, oh the official document provided for in
 £ ;/. Article 71 (l).of Regulation ( EEC ) No 822 / 87 ,
 » covering transport of the products , that the latter have
     a been taken over by the distillery . The distiller shall
         forward to the producer a copy of the said document ,
         thus certified , within one month of receipt of the
         products to be distilled .
 0    .
          2.   The minimum buying-in price laid down for the
          distillation operation in question shall be paid by
          the distiller to the producer within time limits to be      2179 / 83
          determined .
 ---pagebreak---                          v ,-- &
^‘•^Thc aid' .to be paid to the distiller for products which    2505 / 88
t-v5.have- undergone one , of the distillation operations
    provided for in Articles 35 , 36 and 39 of Regulation
    (EEC ) No 822 / 87 shall be fixed , per % vol       alcohol
    and per hectolitre of the product of distillation, on the
     basis of the minimum purchase price fixed for the
    distillation operation in question , the standard
    transport costs where they are to be taken into account ,
    the standard processing costs , the technical losses and
    the market price for the products of distillation .
    The aid granted in respect of neutral alcohol may not be
     less than the aid granted in respect of the other products
     listed in Article 3 ( 1 ).
     No aid shall be due for quantities of wine delivered for
     distillation exceeding the obligation of the producer as
     provided for in Article 11 ( 1 ) by more than 2% .
             /
 ---pagebreak---  Article 17
1.        In order to qualify for aid , die distiller shall
submit an application to the intervention agency , by a
date to be fixed , enclosing , in respect of the quantities
tor which the aid is requested :
(a)     ( i ) with regard to wine and wine lees , a list of the
               deliveries made by each producer, indicating
               at least :
               – the nature , quantity , colour and alcoholic
                   strength by volume ,
               – the number of the document provided for
                   in Article 71 (1 ) of Regulation (EEC ) No
                    822 / 87 where that document is required
                    for the transport of the products to the
                   distiller’s premises or , where, it is not
                   required , the reference to the document
                   used      in  accordance   with    national
                    provisions ;
      ( ii) with regard to grape marc, a list of the names
               of the producers who have delivered marc to
               him and the quantities of alcohol contained in
               the marc delivered under the distillation
               operation provided for in Article 35 of
               Regulation (EEC ) No 822 / 87 , duly endorsed
               by the supervisory authority responsible for
               keeping accompanying documents relating to
               deliveries made :
( b ) a declaration , endorsed by the competent
       authority designated by the Member State ,
       indicating at least :
       – the quantities of products obtained from
              distillation , broken down into tfye categories
              specified in Article 3(1 )
       – the dates on which the products were
              obtained ;
(c) evidence that he has paid the producer , within the
       time-limit laid down , the minimum purchase price
       stipulated         tor the distillation operation in
       question .
 2.        Where distillation is carried out by the producer
 himself, the documents referred to in paragraph 1 shall
 be replaced by a declaration , endorsed by the
 competent authority of the Member State, indicating at
 least :
 – the nature , quantity , colour and alcoholic strength
      by volume of the produce to be distilled;
 –■ the quantities of the products obtained from
      distillation , broken down into the categories
      specified in Article 3 ( 3 );
  – the dates on which the products were obtained .
  3 . The intervention, agency shall pay the distiller or ,
  in the cases referred to in paragraph 2 , the producer the
  aid calculated in accordance with Article 16 within
  three months of submission of the application together
  with the requisite documents .
 ---pagebreak---   Article 18                                                       "I
 1.     Distillers may deliver to the intervention agency ,
 within a rime-limit to be determined , products with an              2505 / 88
 alcoholic strength of 92 7o volume or more .
 The operations necessary to obtain the product referred
 to in the first subparagraph may be carried oat either ar
 the premises of the distiller who delivers the said
 product to the intervention agency or at the premises of
 a jobbing distiller .
 2.      I'hc buying-in prices referred to in the third and
 fourth subparagraphs of Article 35 ( 6 ), the third and
 fourth subparagraphs ol Article 36 ( 4 ) and the third and
 fourth subparagraphs of Article 39 ( 7 ) of Regulation
 ( EEC ) No 822 / 87 shall be fixed per hectolitre and per
 % volume of pure alcohol .
 They shall apply to bulk merchandise free at the
 warehouse of the intervention agency . They shall be
 fixed on the basis of the minimum buying-in price for
 the products for the distillation operation in question ,
 standard transport costs for the products to be distilled
 where these are to be taken into account , standard
 transport costs for the products of distillation , standard
 processing costs and technical losses .
 If the distiller has qualified for aid under the conditions
 laid down in Article 17 , the prices referred to in the first
 subparagraph shall be reduced by an amount equal to
 the amount of the aid .
3.      At the same time as the standard price fixed in; * 3
accordance with paragraph 2, differentiated prices shaD^J
be fixed for products delivered to the intervention J ?
agency under the third subparagraph of Article 35 (6)of ;a".
Regulation (EEC) No 822 / 87 , depending on whether
the product has been distilled from grape marc, wine             ,
lees or wine, so that account is taken , 'where'' v’jj
appropriate, of the differing costs and losses. '
The Member States may decide to apply differentiated'^'
prices where the application .of- the standard price-'*
would or could make it impossible to have.one or more ' “
of the by-products of wine-making distilled in certain'-#
regions of the Community. The level of prices fixed for1' )
the product distilled from the various’by-products'must-jf’
be such that the weighted average of these prices docs \
not exceed the standard price.                      ' "V '-'IV /
 ---pagebreak---  Anide 19        ,
              ■ '· ■■.:■■:■ 'r <··:.ϊ!#Λ, ■··' v-íírtV^Vr^yírí^^V;
The amount Of the contribution feom the EÀGGF,''- y
Guarantee Section, to expenditure ' ' incurred by 'if?
intervention agendes in taking over the products of tbte&fe
distillation operations referred to in Artides 35 and 36*·“;        2505 / 88
of Regulation (EEC) No. 822/87 shall be fixed;' atra!??
standard rate per hectolitre and per % voi                     of^
alcohol on the basis of the buying-in price for neutral·!;
alcohol taken into intervention and the price charged
for such alcohol on the Community market .                 ■ , v*rt
                                                            -Jèà
                                                                              12
 ---pagebreak---                           TITLE III
                    Common provisions
 Article 20
                                                             i       . -,
                                                      ..    ••   ifyl .
For each of the distillation operations referred to in*-,' .
Articles 35 , 36 , 38 , 39 , 41 and 42 of Regulation ( EEC).
No 822 / 87 ,       Member States shall communicate the •
following information to the Commission every two                           2505 / 88
mdhths , distinguishing between neutral alcohol , raw'p
alcohol and potable spirits:                          "        ;-V-
– quantities produced during the previous                niodtVi^P
                                                          ■ Y'VS-îiîi
– quantities taken over by their intervention agencies   lgena»k. 1
    on the basis of Community oV national rales during1?-:;
    the previous period; :                 ' ' • ■+'
– quantities disposed of by those Intervention:.,/ •
    agencies during the previous period;                       vf&c*';,
                                                   ,,,,
– quantities held by those intervention agencies af mef.
    end of the previous period .                                  ;-*.A
In respect of quantities disposed of by these intervention,, ... ,
agencies , they shall also communicate the selling prices:?;
charged , and shall state that the products have been^,.;
consigned within the Community or exported , as the'',',
case may be.                                 , .... .                     I
 ---pagebreak---    %' 'Article 21
             1.          The distillation operations referred to in this
             Regulation may be carried out only during periods to be
             determined .                                                   2505 / 88
             2.         The characteristics which products delivered for
                                                                           1505 1%
 jl^iidistiUaEiofla must present, in particular as regards
        **Volarils*ckuty Jevel, shall be determined in accordance
 .&> ..ywith the procedure laid down in Article 83 of
 P ,.; ' Regulation ( EEC) No 822/ 87.
 'fy* .cyjit/ - ;■ . i' : . >   ‘                      •
                        The1 characteristics of the products delivered for
             desdllatioh, and in particular quantity , cqJour and
 $        (alcoholic.strength, shall be checked using aft’ a basis:
 tes^i-^- 'the document provided for in Article 71 ( 1 ) of
 iq             ■ Regulation ( EEC ) No 822 / 87 under cover of which
  ^. .              firansport is carried out ;
             – an analysis performed on samples collected when
                    the product enters the distillery, under the
                    supervision of an official body of the Member State
                    in which the distillery is located . This procedure
                    may take the form of representative spot checks ;
  *          – the contract concluded pursuant to Article 4 .
 S.        .
  t6f4»;'Tae analyses shall be performed by approved
  £ C laboratories, which shall forward the results to the
  Ijy intervention agency of the Member States where
  gv >yidisti]iation takes place.
  js«g»\ !n atoirdence -with the procedure laid down in Article
  £$■ «; ■ ,83'of Ref.ttlflticsn (EEC) No 822 / 87 detailed rules shall
  *jksy i!Wa<iofW«i coccenungs ' * •'
                 (■    ■ •
  A.         – application of the result of the analysis referred to in
              ' V the second indent of the first subparagraph to the
                  , entire quantity convered by the contract cr
        S*si I delivered, with particular reference to compliance
$*!*»'• * -‘with thekprinciple of proportionality;
r.l? –: the representativeness of the spot checks referred to
Sj. ■-'t Tin the second indent of the first subparagraph .
             4.           If, in accordance with the Community provisions
             in force, the document referred to in the first indent of
• i ■ paragraph 3 has not been made out , the characteristics
             of the product intended for distillation shall be checked
             using as a basis the analyses referred to in the second
   ./ ‘ 1 indent of that paragraph .
             A representative of an official body shall check the
              quantity ol product distilled and the date of
              distillation .
 ---pagebreak--- p,'i,,tv.i^bo«li.<vsri£v3^a of^e file reveal that, in
|*e^«:«rf^7er-part of the- products delivered , the
 producer does not satisfy the conditions laid, down by.. -       Л
 Community rules for the distillation operation ire .,                  2505 / 88
 question , the competent intervention agency shall
 inform the distiller and the producer accordingly. ' ,> •
 2        For the quantities of products referred to in - -r
 paragraph 1 , the distiller shall not be required to keep to      ']
 die price referred to in Article 4 ( 3 ) or Article 12.
 3.       Without prejudice to Article 8 or Article 16 ( 3 ),
 should the producer or the distiller not satisfy, in
 respect of all or part of the products delivered , for
 distillation , the conditions laid down by Community -
 rules for the distillation pperation in question.*; £ . jh* * i ’’
 – aid shaJ! not bc duc for the quanritics in
       question ;
 – the distiller may not deliver the products obtained           ' .
       from distillation of the quantities in question to the         ;
       intervention agency .
 If thp aid has already been paid , the intervention agency -
 shall recover it from the distiller .                              >
                                                              ; M
  If the products of distillation have already been,
 delivered , the intervention agency shall recover an
 amount equal to the aid specified for the distillation
 operation in question from the distiller.
 However, where the various time-limits laid down by .
 this Regulation have not been met , a reduction of the
 aid may be decided upon . Detailed rules for the,
 application of this subparagraph shall be adopted in :
 accordance with the procedure laid down in Article 83
  of Regulation ( EEC ) No 822 / 87 .
 ---pagebreak---                          Article 23
 1.    Where, owing to unforeseeable circumstances
or for'reasons of force majeure, all or part of the
product to be distilled cannot undergo distillation :
– the producer, if the unforeseeable circumstances
      or force majeure affected the product to be dis­
    ' tilled while it was legally at his disposal, shall
      without delay inform the intervention agency of
      the Member State in which his winery is
      located ,
– the distiller, in all other cases, shall without
      delay inform the intervention agency of the
       Member State in which the distillery is located.
In the circumstances referred to in the first subpara­
graph, the intervention agency, once informed, shall
decide on the measures which it considers neces­
sary. In particular, it may defer the time limits.
2.     In the circumstances referred to in the first
indent of the first subparagraph of paragraph 1 , and
where the producer's winery and the distillery are
located in two different Member States , the inter­
vention agencies of the two Member States con­
cerned shall cooperate, by the direct exchange of
information , for the purpose of implementing para­
graph I.
In the circumstances referred to in the second
indent of the first subparagraph of paragraph 1 , the
intervention agency, once informed, may also
authorize the distiller, subject to the agreement of
the producer in the case of a jobbing distiller, to
transfer to another distiller his rights and obligations
 in respect of the quantity of products not yet dis­
tilled .
3.     The Member States shall inform the Commis­
sion of cases in which paragraph I is applied and of
the action taken in response to requests that the
clauses relating to unforeseeable circumstances and
force majeure should be invoked .
 ---pagebreak---                         Article 24
I.   The competent authorities of the Member States
shall approve the distillers established in their terri­  2179/83
tory who intend to perform the distillation opera­
tions referred to in this Regulation and shall draw
up a list of the approved distillers. However, these
authorities may decide not to include on the list
approved distillers who are unable to obtain, by
means of the distillation operations referred to in
Title II , products of an alcoholic strength of at least
92 % vol .
The competent authorities shall be
responsible for the updating of the said
 list , and the         Member States shall forward
    to the Commission          any subsequent amendments
to it - The Commission shall publish that list and
any amendments thereto in the Official Journal of
the European Communities.
Portugal      shall forward the list drawn up in
accordance with the firs                  r ®^^he°second
CüMission on                             1               3805/85
       at the latest .
2. The competent authority may withdraw
approval from a distiller, either temporarily or per­
manently, if the latter does not meet his obligations
under the Community rules.                               2179/83
 ---pagebreak---  Article 25
 1.     Wine which is to undergo one of the distillation
operations referred to in this Regulation may be              2505 / 88
 fortified for distillation . In such cases, the product of
distillation of such fortified wine must be one of the
 products specified at point ( b ) of the first subparagraph
of Article 3(1 ).
 2.     Wine shall be fortified for distillation only under
official supervision .
 For this purpose :
 – the doairnent(s ) and register(s ) required under
     Article 71 of Regulation ( EEC ) No 822 / 87 shall
     show the increase til actual alcoholic strength by
     volume , expressed in % volume , by indicating the
     strength before and after addition of the distillate to
     the wine ;
 – a sample of the wine shall be taken tinder official
      supervision before it is fortified in tfrder that the
     actual alcoholic strength by volume may be
     determined analytically by an official laboratory or
     a laboratory working under official supervision ;
– two copies of the report on the analysis referred to in
     the second indent shall be sent to the manufacturer
     of the fortified wine and the manufacturer shall
     transmit one of these copies to the intervention
     agency of the Member State in which the wine is
     fortified .
3.      Wine shall be fortified for distillation during the
same period as that laid down in accordance with
Article 21(1 ) for the distillation operation in question.
However , in the case of wine fortified for the distillation
referred to in Article 36 of Regulation ( EEC ) No
 822 / 87 , a shorter period shall be set .
 Articles 22 and 23 shall apply , subject to any necessary
adjustments .
4.      Wine fortified for distillation shall be distilled in
accordance with detailed rules to be laid down . Such
distillation shall take place within a period to be set .
5 . Member States may restrict the number of
locations at which wine may be fortified for distillation ,
should this be necessary to ensure that the most suitable
method of supervision can be used .
                                                                        V
 ---pagebreak--- Article 26
1.       When the option referred to in Article 25 ( 1 ) is
exercised and where the wine is not fortified for
distillation by the distiller or on his behalf, the producer
                                                                                        i 2505 / 88
shall conclude a delivery contract with an approved
manufacturer and shall submit it for approval to the
competent intervention agency before a date to be
specified .
However , if the producer is approved as a manufacturer
of fortified wine and intends to fortify the* wine for
distillation himself, the contract referred to in the first
subparagraph shall be replaced by a declaration of
delivery.
2. •     The contracts and declarations referred to in
paragraph 1 shall be governed by Articles 4, 5 and 8 ,
subject to the necessary adjustments .
3.       The manufacturer of fortified wine shall pay the
producer , for the wine delivered , at least the price
referred to , as the case may be , in Articles 35 ( 5a ), 36
( 3 ), 38 ( 2 ), 39 (6 ), 41 ( 6 ) or 42 ( 3 ) of Regulation ( EEC )
No 822 / 87 ; these prices shall apply to bulk
merchandise ;
– free at distiller’s premises in the case of the
      distillation referred to in Article 35 of Regulation
      ( EEC ) No 822 / 87 ;
– ex producer’s premises in other cases.
Subject to the necessary adjustments, the manufactpJ*rVa|
of fortified wine shall be subject to the same obligations .
as the distiller under Articles 4, 6 , 12 , 15 and 17;.3* --vTy
                            •■ ■ ■  ■ - '  "         ' .•    ■•••>■    - '   ■ •     >
The aid to be paid to the manufacturer of fortified wine’ -
for the respective distillation operations shall be fixed'";’,*
|icr % volume of actual alcoholic strength and per '
hec tolitre of wine before fortification, on thebasis ofT'vf
the minimum buying-in price                                        ' distillation^/;
operation in question, standard transport costs,- whtrey^'!
these are to be taken into account, standard processmgr ; ^
costs and the market price ■ for the': products OCT'-*,
distillation .                   le '        •      *     -     .     . . , U'T'T TTMS:
                         . . . ; » ; •-        ;■   V'' ( "•/.          -y ,N
4.       The aid'' ''s&aff*1>e ,? paid                             ■; bompeer.n€'*
 intervention ageaofJ»?sthi a«ij»»etaei«r ;'cf
wine on-con&kar^gfe ppdi>idarji>se’curi ty* equa 'Cv *4
 110% of thertitl to
                           .       ..  -■ -v . .. -v. : ) ' ' ;              \     v
Where the manufacturer fortifies wwe^or‘*di«»Datjcn'v>S:.
operations governed • 4»y ^"various .‘ /provisions
Regulation ( EEC) No 822 / 87, he may provide a single 'e*-
curity .         In such case the security shall be equate
 110% of a!! the aid to be paid to the manufacturer in’ •**,
respect of the said distillation operations . 1                        1 V   . »
                                                                                 '
                                                          ..               • '‘4
 ---pagebreak---  I he security referred to in the first and second ™?
subparagraphs shall be provided in accordance with thesis
second subparagraph of Article 9 ( 1 ).            »          ^
                                                        '·> ·'Λ ν '
The security shall be released by the intervention
agency after:                                          ,«t
                             .  / v
– proof of distillation, within the' time liasit 'latd;:^^
     down, of the total quantity of ’wine fortifie#fot^J
     distillation specified in the contract or declarationr/C 5
     and ,                     yr’v*,. , *      ? % y-
– proof of payment, within the time-limit laid dow^tl
     of the minimum purchase prico referred' W imt
     Articles 4 (3 ) and 15 (2);                  •        r
has been submitted within the time-limit laid down , and> Vr?/
where appropriate , in accordance with detailed rules to’1 VJ-*
be adopced in accordance with the procedure laid down'**'^
in Article S3 of Regulation ( EEC ) No 822 / 87 .           '
In cases covered by the second subparagraph of'
paragraph 1 , only the proof referred to in the first ^; t
indent shall be supplied by tHe ■ producer to the \ J
intervention agency .                                           7’v
 ---pagebreak---            Article 26a                                                   \ f
          1.        Where fortified wine is distilled in a Member' -^
          State other than that in which the contract ' or^ ■"               j 2505 / 88
          declaration was approved , the aid payable in respect of r
          distillation operations may, notwithstanding' ’■''3
          Anicle 26 (4), be paid to the distiller on condition thatj^»
          he submits an application within two months following
          the deadiine specified for carrying out the distillation
        t operation in question to the intervention agency of the
          Member State in whose territory the distillation has
          taken place .
          2.        The application referred to in paragraph 1 shall
          be accompanied by the following :
          – a document endorsed by the competent authorities
                 of the Member State in the territory of which the
                 wine was fortified , transferring entitlement to
"" ~'v ‘ the aid from the manufacturer of rhc fortified wine
       '*■ ’ to the distiller and showing the quantities of
                 fortified wine concerned and the amount of the
           ' ? 1 corresponding aid ;
*                       T    ...         •' ‘ •
                 sror»7 of the contract or dedaratioajeferred to in
^i~J-^Anid£.26ii)^psovtd by the relevant intervention
  nt                -copy of           analysis report referred to in
  •' " v'*"'"Artide 25;          '.
          – proof of payment of the minimum purchase price of
                 the wine to the producer ;
           – the document required under Article 71 of
                 Regulation ( EF.C ) No 822 / 87 for the transport of
                 fortified wine to the distillery , showing the increase
                 in actual alcoholic strength , by volume , expressed
                 in % volume , by indicating the strength before and
                 after addition of the distillate to the wine ;
           – proof of distillation of the fortified wine
                 concemed.
                    Incases covered by paragraph 1 the manufacturer
       «. of .fortified , wine shall not be required to lodge the
       T g,v tratitee referred to in Article 26 (4).
        V    *^*?-t‘*           v *- •
           4.        The aid shall be paid by the intervention agency
           not later than three months after the application and the
           documents referred to in paragraph 2 have been
           submitted .
 ---pagebreak---                 ■ ■; „        Article 27
, >
K
    1 . Member States shall take the necessary mea-
‘   seres to ensure that the provisions of this Regulation
    are applied , arsd in particular measures to prevent
    products delivered to distilleries from being diverted
    to other uses.
    Member States may, for this purpose, require that an
    indicator be used, subject to conditions to be laid
    down by implementing roles or, failing this, by
    national provisions . Member States may not , on the
    ground of the presence of an indicator, prevent the
    movement within their territory of products
    intended       for distillation    or distilled   products
    obtained therefrom .
       Member States may provide that, where products
      referred to in this Regulation s?g delivered for
      distillation by mere chan one producer, they shall
      be transported W bulk. In suds cases, the checking
      of the characteristics of the products referred to in j
      Article 21 shall he carried out in accordance with ;
      the detailed rules adopted by the Member States .
      concerned ,
       2.     Member States which exercise the option set
     out in the second and third subparagraphs of j
      paragraph 1 shall inform the Commission
      accordingly and shall notify the Commission of the
      provisions which they have adopted for this
      purpose . The Commission shall inform the other
      Member States in the case referred to in the second
      subparagraph of paragraph 1 .
 ---pagebreak---                                 Article 28
        In the absence of any provisions to the contrary, any
       periods, dates or time limits referred to in this Regu­
       lation or fixed pursuant thereto shall be laid down     2179 / 83
       in accordance with Regulation ( EEC, Euratom) fJo
        1182/71 (>)•                                   ,
( ' ) OJ No L 124,8.6. 1971 , p. 1 .
 ---pagebreak---                          Articlt Z3
 1.   Regulation (EEC) No.jM7S /$3 is hereby repealed. •;
 2. References to the Regulation repealed under para­
 graph 1 shall be construed as references to this Regula¬
 tion and.           should be read in accordance with ! ' *r
the corrélation table in      Anne*    ^
 ---pagebreak---                       Article 31
This Regulation shall enter into force on the day of
its publication in the Official Journal of the Euro¬
pean Communities.
 This Regulation shall be binding in its entirety and directly applicable in all
 States .
 Done at Brussels,
                                                               For the Council
                                                                The President
 ---pagebreak---                                              ANNEX J
   DEFINITION OF NEUTRAL ALCOHOL AS REFERRED TO IN ARTICLE 3(1 ),
                                 FIRST SUBPARAGRAPH, (a)
1. Organoleptic cliaraclerislics :                                    No extraneous
                                                                      flavour detect ¬
                                                                      able in the      2179 / 83
                                                                      raw material
2. Minimum alcoholic strength by volume :                             96 % vol
3. Maximum values of residue elements :
   –   Total acidity
       expressed in g of acetic acid per hi of aicohol at 100 % vol     1,5
   –   Esters
       expressed in g of ethyl acetate per hi of aicohol at 100 % vol   1,3
   –   Aldéhydes
       expressed in g of acetaldehyde per hi of alcohol at 100 % vol    0,5
   –   Higher alcohols
       expressed in g of methyl-2 propanoi-1 per hi of alcohol
       at 1 00% vol                                                     0,5
        Methanol
       expressed in g per ill of aicohol at ! 00% vol                  50
   –   Dry extrai t
       expressed in g per hi of alcohol at 100 % vol                    1,5
    –   Volatile bases containing nitrogen
       expressed in g of nitrogen per h! of alcohol
       al 100% voi                                                      0,1
    – Furfural                                                         Not
                                                                       détectable
 ---pagebreak---                                     ANNEX II
                                 CORRELATION TABLE
Régulation ( EEC ) Nô . 2179/ 83              Th I s Regu I at Ion
     Art Iole  1                             Artide     1
     Art Iole  2                             Artide 2
     Art Iole  3                             Art Icle 3
     Art Iole  4                             Art l c le 4
     Art le le 5                             Artide 5
     Article 6 . paragraph 1 ,2 & 3           Article 6 . paragraph 1,2 & 3
     Article 7                                Article 7 . paragraph 1
     Article 6 . paragraph 4                  Article 7 . paragraph 2
     Article   9                              Art Icle 8
     Art Icle  8                              Article 9
     Article   10                             Article   10
     Article   11                             Article   11
     Article   12                             Article   12
     Article   13                             Article   13
     Article   14                             Article 14
     Article   15                             Article 15
     Article   16                             Article 16
     Article   17                             Article   17
     Art icle  18                             Article   18
     Article   19                             Article   19
     Art Icle  20                             Article   20
     Article   21                             Art Icle  21
     Article   22                             Article   22
     Art Icle  23                             Article   23
     Article   24                             Article   24
     Article   25                             Article   25
     Article   26                             Article   26
     Article   26 a                           Article   27
     Article   27                             Article   28
     Article   28                             Article   29
     Article   29                             Article 30
     Article   30                             Art Icle -
     Article   31                             Article 31
                                                                            ЧЧ
 ---pagebreak--- COMPETITIVENESS AND EMPLOYMENT IMPACT STATEMENT
Consolidated version of Council Regulation ( EEC ) N° 2179 / 83 of 25 July
1983 , laying down general rules for distillation operations involving
wine and the by-products of wine-making .
This proposal from the Commission meets the wish expressed many times by
the Member States and the European Parliament that measures should be taken
to speed up the codifying and simplifying of Community law .     The proposal
contains no new provisions , and therefore has no particular impact on SMEs ;
but it should be noted because its aim , the transparency of Community law ,
is in the long-term interests of SMEs .