CELEX: 51977PC0667
Language: en
Date: 1977-12-13
Title: Proposal for a COUNCIL REGULATION (EEC) laying down general rules governing wine distillation measures introduced to rationalize the market in wine and repealing Regulation (EEC) N° 1931/76 (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (77) 667
Vol. 1977/0213
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                COM(77)667 final.
                                                Brussels , 13 December 1977
                              Proposal for a
                         COUNCIL REGULATION (EEC )
          laying down general rules governing wine distillation
          measures introduced to rationalize the market in wine
                 and repealing Regulation ( EEC ) N° 1931/76
              ( submitted to the Council by the Commission)
COH(77 ) 667 final
 ---pagebreak---                         EXPLANATORY MEMORANDUM
       Under the organization of the market in wine , intervention may
take the form of several distillation measures * The rules governing
most types of distillation are laid down in Regulation ( EEC ) No 1931/76 ,
but where distillation measures are implemented pursuant to Article 7
of Regulation ( EEC ) No 816/70 , the Council has so far preferred to adopt
separate rules for each individual case . Article 6d of the last-mentioned
Regulation , added recently by Regulation ( EEC ) No 1677/77 » deals
separately with a type of distillation measure which was previously
covered by Article 6c of Regulation (EEC ) No 816/70 . However , formal
implementing rules still need to be laid down . Furthermore , experience
acquired in applying Regulation ( EEC ) No 1931/76 has shown that distillation
could be more effective as an intervention measure if the administrative
procedure for its execution was changed .
       In view of this situation , Regulation ( EEC ) No 1931/76 should be
repealed and replaced by new distillation rules uniformly applicable to
all types of distillation , other than the obligatory distillation of the
by-products of wine-making . These new rules must also take account of
the need to simplify the administrative procedure governing distillation
measures .
       The adoption of this draft Regulation does not entail any
financial expenditure for the Community budget .
 ---pagebreak---                               PROPOSAL FOR A
                    COUNCIL REGULATION ( EEC )
         laying down general rules governing wine distillation
         measures introduced to rationalize the market in wine
         and repealing Regulation ( EEC ) No 1931/76
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
Having regard to Council Regulation (EEC ) No 816/70 of 28 April 1970
laying down additional provisions for the common organization of the
market in wine 1 , as -last. amended
                                   . . .
                                       by _Regulation
                                               ...
                                                      (, EEC v) _No 2211/77
                                                                         / 2
                                                                             » and
in particular Articles 6b(3 ), 6c(3 ), 6d(4 ), 7(l )» 24a(5 ) and 24"b(3 ) thereof ,
Having regard to the proposal from the Commission ^
Whereas provision is made for distillation operations in Articles 6b , 6c ,
6d , 7 , 24a and 24b of Regulation ( EEC ) No 816/70$ whereas the general
rules governing the distillation of wines provided for in Articles 6b , 6c ,
24a and 24b of Regulation ( EEC ) No 816/70 are laid down by Council
Regulation (EEC ) No 1931/76 of 20 July 1976^, as last amended by Regulation
(EEC ) No 1675/774?
     0J No L   99 , 5 . 5.1970 ,  p. 1
     OJ No L  256 , 7.10.1977 ,   p. 1
     OJ No L  211 , 5 . 8.1976 ,  p. 5
     OJ No L  187 , 27 . 7.1977 , P. 3
 ---pagebreak---                                     - 2 -
Whereas experience in this sphere ' shows    1 the need to adapt these
general rules , in particular so as to simplify the administrative procedure
and to ensure effective checks on the observance of these rules ;
whereas Regulation (EEC ) No 1931/76 should therefore be replaced by a new
Regulation governing all distillation operations , except those covered by
       Article 33a of Regulation (EEC ) No 816/70 , for which it was
            necessary to adopt Council Regulation ( EEC ) No 1933/75 of
22 July 1975 on general rules governing the special distillation of
table wines referred to in Article 33a of Regulation (EEC) No 816/70"' ;
Whereas provision must be made for the minimum price guaranteed to the
producer to be paid to him , as a general rule , within a period      which
will permit him to obtain a profit comparable to that which he would have
obtained from a commercial sale ;
Whereas the different prices for wines for distillation laid down in. the
aforementioned Articles normally render it impossible to market the products
                              M
of distillation .      .     at market prices ; whereas criteria must
therefore be determined for fixing the amount of aid so as to enable the
products obtained to be disposed of ;
Whereas it has proved useful , for the purpose of transporting over long
distances wines intended for distillation and preserving them in good
condition , to add distilled wine to them , thereby transforming them into
a fortified wine ; whereas , if the preparation of fortified wines is to
be supervised • so as to        prevent . practices forbidden by Community
provisions , such an operation should receive prior authorization from
the intervention agency of the Member State on whose territory the
producer 's winery is located, and whereas that agency must , where the
distiller has his premises in another Member State , inform the
intervention agency of that second Member State that an authorization
has been granted;
                                                                   • • •J• • •
5 OJ No L 198 , 29.7.1975, p. 20
 ---pagebreak---                                      - 3 -
Whereas it should be laid down -that where for reasons of force majeure
part of the wine which is the subject of a delivery contract cannot
be distilled , the aid should be made payable in respect of that quantity
of wine covered by the contract which has actually been distilled ;
Whereas , in order to facilitate normal distillation operations and
utilization of all available distillation capacity , an approved distiller
who has concluded a    delivery    contract with a producer should be
permitted to transfer his rights and obligations under this contract
to another approved distiller;
Whereas , in order to have a better check on the quantities of wine
to be distilled , it should be provided that such operations be allowed
only during a period to be fixed ; whereas , however , if the management
of the operation is to be more flexible , provisions should be made for
the completion date of the distillation operations to be brought forward
or put back ;
                             M
Whereas , to ensure uniform application of the distillation rules , the
terms "distiller", "approved distiller" and "producer" should be defined ;
Whereas , to ensure proper application of this Regulation, the Member States
should appoint an intervention agency responsible for applying it ;
whereas , moreover , it is indispensable that the checks to be carried out
by the appointed intervention agency should be specified ;
Whereas the Commission and the intervention agencies should be informed
of the progress of the different distillation operations and in particular
of the quantities of wines for which delivery contracts have been
concluded , the quantities of wines distilled and the quantities of
products obtained by distillation ;
                                                                      • • •/ • • •
 ---pagebreak---                                     - 4 -
Whereas , in order to deal with some cases of force majeure which
arose during the 1976/77 marketing year,                       Article 4(2 )
should be made to apply . to wine delivery contracts concluded pursuant
to Regulation (EEC ) No 1931/76 ,
HAS ADOPTED THIS REGULATION S
                                   Article 1
1 . Delivery contracts shall be concluded , before a date to be fixed ,
    between independent producers or producer groups and approved
    distillers , for the purpose of
    - the preventative distillation of wine , as provided for in Article 6b
      of Regulation (EEC ) No 816/70,
    - the distillation of table wines covered by storage contracts ,
      as provided for in Article 6c of Regulation ( EEC ) No 816/70 ,
    - the distillation of wines suitable for yielding certain potable
      wine spirits , as provided for in Article 6d of Regulation (EEC ) No 816/70 ,
    - special distillation measures for table wine , as decided by the Council
      pursuant to Article 7 of Regulation ( EEC ) No 816/70 ,
    - the distillation of wines which may be imposed on the producer pursuant
      to Article 24a of Regulation ( EEC ) No 816/70 by increasing the
      quantities of alcohol to be delivered to the intervention agency ,
    - the distillation of wines obtained from table grapes , as provided for
      in Article 24b of Regulation (EEC ) No 816/70 .
    A copy of the delivery contracts shall be transmitted forthwith to the
    intervention agency of the Member State on whose territory the
    producer 's winery is located . If the distiller 's premises are located
    in another Member State , a second copy shall be transmitted to the
    intervention agency of that State .
                                                                        • • • /• • •
 ---pagebreak--- The delivery contract shall be in respect of a minimum quantity of 100 hecto
litres of wine> provided that the measure is not compulsory distillation as
referred to in Articles 24a and 24b of Regulation ( EEC) No 816/70 .
The contract shall s
( a) specify the actual alcoholic strength;
( b ) save as otherwise provided in the detailed rules of application for
      certain .production areas , contain a statement from the producer to
      the effect that sucrose has not been added to the wine ;
( c ) oblige the distiller to purchase the quantity of wine entered in
      the delivery contract and to pay at least the price referred to
      in Articles 6b(2 ), 6c(2 ) t 6d(3 ), 24a(3 ) or 24b(2 ) of Regulation
      ( EEC ) No 816/70 , as appropriate , such price being applicable to
      unpacked goods , ex producer 's premises ;
( d) oblige the distiller to pay to the producer the buying-in price
      referred to under ( c.) in two instalments , namely :
      - at least 50% of the purchasing price no later than thirty days
         after the total quantity of wine covered by the delivery contract
         has entered the storage premises managed by the distillery ;
      - the remainder no later than fifteen days after receipt of the aid
         referred to in Article 2 ;
( e ) oblige the distiller to process the wine either into a product with
      an actual alcoholic strength of 86% or more by volume or into a product
      with an actual alcoholic strength of 85% or less by volume .
The delivery contract shall be accompanied by an analysis report on a
 sample taken after blending of the wines the subject of the delivery to
the distiller .
Where a delivery contract is terminated or not carried out for any other
 reason , the distiller shall immediately inform the intervention agency
 on whose territory his premises are located .
 ---pagebreak---                                     - 6 -
                                   Article 2
1 . The intervention agency shall pay aid calculated per hectolitre of
    wine distilled according to its actual alcoholic strength expressed
    as a percentage by volume .
2 . The amount of the aid shall be fixed on the basis of the minimum
    buying-in price referred to in Article l(2)(c ), the standard
    processing costs and the price of the products obtained by distillation .
3 - The amount of aid granted' shall vary depending on whether the products
    of distillation have an actual alcoholic Btrength of :
    - 86% or more by volume , or
    - 85% or less by volume »
    However, the amount of aid granted for products with an actual
    alcoholic strength of 85% or less by volume may not exceed the amount
    of aid granted for products with an actual alcoholic strength of
    86% or more by volume • ,
4 - A decision may be taken to the effect that distillation shall result
    in products with an actual alcoholic strength of 86% or more by volume .
                                   Article 3
1 . At the request of an approved distiller who has concluded a delivery
    contract , the intervention agency on whose territory the producer 's
    winery is located may authorize the addition of an unrectified product ,
    obtained by the distillation of wine and having a maximum actual
    alcoholic strength of 86% by volume , to the wine which is subject of that
    contract , for the purpose of obtaining a fortified wine .
2 . In such cases , the documents and records provided for in Article 29
    of Regulation ( EEC ) NO 816/70 shall show what increase in actual
    alcoholic strength, expressed as a percentage by volume , has resulted
    from this addition of alcohol .
    The aid shall be calculated per hectolitre according to its
    actual alcoholic strength after deduction of the quantity of alcohol
    added .
                                                                     • * • /• •
 ---pagebreak---                                    - 7 -
                                  Article 4
1 . The intervention agency shall pay to the distiller the aid referred to in
    Article 2 only after having carried out the checks referred to in
    Article 8 and after having "been notified by the distiller that the
    total quantity of wine covered "by a delivery contract has been
    distilled .
2 . Where for reasons of force majeure part of the wine covered by the
    delivery contract cannot be distilled , the distiller shall so inform
    the intervention agency of the Member State on whose territory his
    premises are located . That agency shall pay the aid only in respect
    of that quantity of the wine covered by the distillation contract
    which has been distilled .
                                  Article 5
        The intervention agenty may, at the  request of an approved distiller
who has concluded a delivery contract with   a producer, authorize him to
transfer to another approved distiller his   rights and obligations under
this contract in respect of all or part of   the             wine in question
where this is justified by a case of force   majeure .
        The agency shall pay to the distiller who has distilled the
transferred wine the appropriate amount of aid for the quantity distilled .
                                                                      « « •/• •
 ---pagebreak---                                        - 8 -
                                     Article 6
           The distillation operations referred to in the first , second ,
third and fourth indents of Article 1(1 ) shall take place "during periods
to be determined .
           However , a decision may be taken >
( a ) to bring forward the completion date            • of the distillation
       operations referred to in Articles 6b , 6c , 6d and 7 of Regulation
       ( EEC ) No 816/70 , where the economic) state of the market so requires ,
      in particular because of
       - the level of representative prices anc/or
       - market availabilities '
       of the types of wines to which the distillation measures in question
      apply;
( b) to put back the completion date            of the distillation operations ,
      where a case of force majeure has prevented distillation from being
       completed during the period laid down .
                                     Article 7
           For the purposes of this Regulation i
( a ) a distiller means any person who distills wine , wine lees , or grape marc
       on his own behalf or on behalf of others ;
( b ) an approved distiller means a distiller included on a list to be estab­
      lished       by the competent authorities of the Member States . Under
       conditions to be laid down as part of the detailed rules of application ,
       approval may be withdrawn by these authorities from distillers who do
      not fulfil their obligations under this Regulation ;
( c ) a producer means any natural or legal person who annually declares his
       harvest and wine stocks pursuant to Article 2(1) of Regulation No 24^.
   0J No L 30 , 20.4.1962 , p. 989/62
 ---pagebreak---                                  Article 8
The Member States concerned shall appoint        an intervention agency
responsible for applying this Regulation .
The intervention agency shall carry out the following checks :
 ( a) a check on whether the delivery contract complies in all respects
       with Article 1(2 );
 ( b ) a check on the quantities of wine distilled and the identification
       data given in the delivery contract , the entry and withdrawal records ,
       the accompanying documents and the commercial documents of the
       producer and of the distiller , in particular as regards the actual
       alcoholic strength;
 ( c ) a check on the authenticity of the accompanying documents ;
 ( d) a check on whether the distiller has fulfilled his obligations under
       the delivery contract , by ascertaining t
       - that all the quantities of wine specified in the delivery contract
         have been processed into corresponding quantities of a product
         with an actual alcoholic strength of 86% or more by volume or
         85% or less by volume , and
       - that the purchase price fixed has been paid to the producer .
Where distillation has taken place in a Member State other than that
 in which the producer is located, the intervention agencies of both
Member States concerned shall , by a direct exchange of information ,
 check the veracity of the statements in the entry and withdrawal records ,
 accompanying documents and invoices and shall inform each other about
the payment of the purchase price to the producer .
 ---pagebreak---                                       10 -
                                   Article 9
        Regulation ( EEC ) No 1931/76 is hereby repealed with effect from
 31 December 1977 *
                                   Article 10
        This Regulation shall enter into force on 1 January 197& «
                                        /
        However ,                 of Article 4(2 ) shall also apply to
wine delivery contracts concluded pursuant to Regulation (EEC ) No 1931/76 .
        This Regulation shall be binding in its entirety and directly
applicable in all Member States .
Done at Brussels .                                     For the Council
                                                        The President
 ---pagebreak---                     FINANCIAL              STATEMENT
                                                                                DATE .       16.11.1977
Ε      BUDGET LINS COIICLTWED :       6912
   2.  ACTION I Draft Proposal for a Council Regulation ( EEC ) No                          laying down general
                   rules governing wine distillation measures introduced to rationalize the
                   market in wine .
I 3.   LEGAL BASIS :                . ,     ,   . .          „
!                            Council Regulation ol6/70
   4. OBJECTIVES :           Harmonization of the rules governing different forms of wine
                             distillation
   5 . FINANCIAL CONSEQUENCE                  FOR THE MARKETING YEAH CURRENT FINANCIAL YEAH
   5.0 EXPENDITURE
                                                                                            FCLLOWINCJGNAJICIAL TEAR
        -CHARGED TO THE EC BUDGET
         (J£M4!*S3/INTERVENTI ONS ) 1 )
        –CHARGED TO NATIONAL ADMINISTR .
        -CHARGED TO OTHER NATIONAL CROUPS
   5.1 RECEIPTS
        -OVTO RESOURCES OF T!ÏE EC
         ( LEVI ES/CUSTOKS DUT1ES )
        NATIONAL
                                              I» ..J372              TEAR ... M°            TEA      A??.1.
  5.0.1 PLURIANNUAL PATTERN OF EXPENDITURE
  5.1.1 PLURI ANNUAL PATTERN OF RECEIPTS                ~                       ~                       ~
  5.2 METHOD OF CALCULATION
  xj®5JOj3MMMmxîQCWsox3CKXMiXi)ÊKXxxxxxxxxxo;xxxxmxxxxxxxm:xxxxxxxxxxx^y^
  COH>IWTS 1 1 ) The draft Regulation has no financial consequences for the Community
                     budget , since it only involves a harmonization of the rules governing
                     distillation measures .