CELEX: 51974PC1785
Language: en
Date: 1974-11-04
Title: Proposal for a REGULATION (EEC) OF THE COUNCIL amending Regulation (EEC) No 816/70 laying down additional provisions for the common organization of the market in wine, Regulation (EEC) No 817/70 laying down special provisions relating to quality wines produced in specified regions, Regulation (EEC) No 865/68 on the common organization of the market in products processed from fruit and vegetables and Regulation (EEC) No 950/68 on the Common Customs Tariff (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (74) 1785
Vol. 1974/0283
 ---pagebreak--- Disclaimer
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 ---pagebreak--- COMMISSION OF THE EUROÎEÂN COMMUNITIES
                                               COM(74)1785 final
                                               Brussels , 4 November 1974
                                  Proposal for a
                         REGULATION (EEC ) OP THE COUNCIL
           amending Regulation (EEC ) No 816/70 laying down additional
          provisions for the common organization of, the market in wine ,
            Regulation (EEC ) No 817/70 laying down special provisions
            relating to quality wines produced in specified regions ,
          Regulation (EEC ) NO 865/68 on the common organization of the
           market in products processed from fruit and vegetables and
             Regulation (EEC ) No 950/68 on the Common Customs Tariff
                   ( submitted to the Council by the Commission)
  C0M(74) 1785 final
 ---pagebreak---                              ÎZPÎ W'ATORY MEMORANDUM
Since the adoption in 1970 0 ? the basic Regulation on vine , various pro­
posals have been put forward for amending different points in the light of the
                                     (1
experience progressively acquired        . Some of the proposed provisions were
adopted by the Council , with the result that the basic Regulation has been
                                                          2
the subject of ten successive amending Regulations          ' ; other provisions
are still being discussed in the Council ; in the case of yet farther pro­
visions , it was agreed to incorporate' the substance in a new proposal which
would group together the amendments which it seems desirable to uakc to the
common organization of the market at its present stage of development .
Furthermore , it has been noted several times , particularly during the
1973/74 wine-growing year, that the intervention system does not always
enable the Council and Commission to act with sufficient flexibility and
rapidity in dealing with extremely varied market situations .         The Commission
had already informed the Council that it would propose the requisite adjust­
ments .
    See in particular OJ No 75 ? 26 July 1971 » P *       and
                       OJ No 106 , 23 October 1971 , p. 50 .
    Régulation  No 1253/70 ( OJ No  L 143 . 1 July 1970 )
    Régulation  No 2612/70 (OJ  No  L 281 , 27 December 1970 )
    Régulation No  1627/71 (OJ  No  L 170 , 29 July I571 )
    Régulation No  2312/71 ( OJ No  244, 30 October 1971 )
    Régulation  No 2504/71 (OJ  No  L 261 , 26 Novenber 197l )
    Régulation  No 2722/71 ( OJ No  L 282 , 23 December 1971 )
    Régulation  No 1651/72 (OJ  No  L 174, 1 August I972 )
    Régulation  No 2680/72 ( OJ No  L 289 , 27 December 1972 )
    Régulation No  2592/73 (OJ  No  L 269 , 26 September 1973 )
    Régulation  No 1532/74 ( OJ No  L 166 , 21 June 1974)
The object of this proposal for amending Regulations (EEC ) Nos 816/70 ( basic
Regulation) and 817/7O ( quality wines produced in specified regions ) is to
group together all those adjustments and amendments .
 ---pagebreak---                                         - 2 -
A® Adjustment to the prico and intervention system
1 . As announced, in it en 64 of the Memorandum on the Improvement of the
                                  / _ \
     Common Agricultural Policy          it is proposed to ostablish a system for
     the distillation of wine at the beginning of the wine-growing year in
     order to stabilize the market if circumstances so require . To that end
     the Council is fixing a withdrawal price for distillation at "between 50
     and 60 % of the guide price for whichever type of wine has the lowest
     such price (Art . 2 ).
     The circumstances in which wine may thus "be offered for distillation
     relate to the quantities in storage , the level of prices and the harvest
     forecast (Art . 7 )«
2 . A decision may "be taken at the beginning of a wine-growing year to make
     available a new type of special long-tern contraot which will enable
     storage to take place as a preventive measure if market conditions are
     difficult during the first months of such year . Aid may be granted in
     similar circumstances for the disposal of grape must intended for the
     preparation of grape juice and concentrated grapo must (Art . 5)*"~
3 . By fixing special higher withdrawal prices for distillation at the be­
     ginning of the wine-growing year, to be applicable in respect of the
     total quantity of wine for which - a producer has concluded long-term con­
     tracts , it is intended to encourage indirectly the conclusion of long--
     term contracts (Arts . 2 and 7 )»
4 . Adjustments are made to certain other points , such as the maximum level
     of the activating price (Art « 3 ), the Community weighted average price ,
     to be fixed weekly (Art . 4) and the maximum level of the price of wine
     delivered for distillation in accordance with provisions already in
     existence (Art . 8).
B. Tightening of requirements for the distillation of by-products of
     wine-making
     A new direction will be given to the arrangements for the distillation
of by-products in order to penalize extremely high yields per hectare , part­
icularly in cases of abundant harvests .
The normal percentage of alcohol for products delivered for distillation,
which applies at present in respect of 10 /o of the harvest , will be maintained.
However, in the case of very high yields exceeding a maximum to be set , an
additional percentage may be fixed (Art . 22 ).
( 3 ) Doc . R 2j27 of 8 November 1973
 ---pagebreak--- C « Provisions relating to imported products                   "
1 . Firstly , the system of reference prioes should "be adapted to certain new
     market conditions so that the market, in table wines may "be better protected.
     To that end special reference prices may "be fixed for imported "bottled wine ,
     grape must and concentrated grape must ( Art . 9 ) •
2 . Secondly, it now seems possible to 'delete the provision under which the
     countervailing charge need not "be levied on certain wines .    Experience has
     in fact shown that the offer prices for the wines in question have risen
     since 1970 to such an extent that there is no longer any difficulty in
     abiding by the reference price (Art » 9 ).
3 . The legal instalments at the disposal of the Communtiy authorities must be _      ,
     sufficiently flexible to deal with the special cases which arise frequently
     in relations with third countries .    These cases often involve vrines which hr.ve
     long been known in international trade but whose technical characteristics
     do not comply, with some particular point of the general legislation relating
     to imports *- It is proposed that in the case of certain wines marketed under
     a geographical indication derogations may be granted on the basis of lists
     to be drawn up (Arts . 14, 24 and 25 ).
4 * Finally , provision is made for the establishment of a legal basis on which ,
     within the framework of reciprocal undertakings , the Commission could protect
     and control certain quality wines imported into and -marketed in the Community­
     (Art . 26 ).                                                         '•
+) ParaGraph 2a            ' •' ''                           ,   r'v
   In order to remove certain ambiguities which have appeared in the. application
   of the import system of third country wines into certain Member States , it is
   desirable . to specif5' the customs duties to be applied to the franco-frontier
   offer price of the products in question .
   The provision envisaged for this purpose , however , does not impinge upon the
   system applicable for wines imported from Greece .
 ---pagebreak---                                           - 4 -
D. Aid for inproving wine–growing structures
1 . The Commission has , alreadyhad occasion, tp ,point out that wine-growing
     potential ( area and yield) . seens to be . increasing more rapidly than con­
     sumption. For this reason Community and national aids should he granted only
     for replanting and , more generally , for action intended solely to improve
     the quality of the vineyard (Art , 15 ) •                                    •
2 . For the same reason it is proposed to make provision at this stage for a
     planting system enabling the Council to take measures to limit, the expansion
     of wine-growing potential and production(Art . 17 ).
E. Measures to improve the quality of production
1 . The principle that products derived from wine varieties not included in the
     classification of wine varieties or from provisionally authorized varieties
     are to he gradually hut completely eliminated from the market is reaffirmed
     and will "be put into practice after a suitable period of grace the expiry
     date of which is , however, already fixed now (Arts * 16 , 18 and 24).
2 . The subdivision of wine-growing zone A into two zones A I and A II , makeB
     it possible to limit the authorization at certain wine-making processes to
     a smaller area (Arts . 19 * 21 and 32 ).
3 * It is desirable that certain technical provisions be improved , notably the
     methods of analysis , control measures and measures to combat fraud (Arts . 20
   ' and 33.).
4 , Experience has shown that certain amendments could well be made to Regulation
     (EEC) NO 817/TO on quality wines produced in specified regions . Those pro­
     posed relate in particular to an increasb in' the minimum natural alcoholic
     strength required for the various zones (Art * 34 ) and to the circumstances
     and manner in which such wines may be enriched (Art , 35 ) or sweetened
     Arts . 36 and 3?)•
 ---pagebreak---                                         - 5 -
F ». Further measures
     In view of the Resolution adopted lay the Council on 16 July 1974 in connec­
tion with relations with the Mediterranean countries , a provision has been
included tmder which special distillation night he permitted if at a time
when the market was disturbed imports from certain third countries exceeded
their normal volume (Art . 20 ).
Because of the extremely technical nature of the questions involved, this
explanatory memorandum does not mention all the minor arendments , which have
often been proposed in order to clarify the text from a legal point of view
and to make it more readily comprehensible .    It should however be noted that
this proposal
– transfers grape juice containing more than 30 % of added sugar and the
   relevant provisions reletting to trade to the Reflation on wine (Arts , 1 ,
   10, 11 and 12 ), as proposed during earlier discussions on that Regulation ;
– as a result of that transfer, alters the scope of the Regulation on processed
   fruit and vegetables and the Common Customs Tariff (Arts 33 and 4l )»
– alters the definitions of certain products covered by the Regulation (Art . 31)#
Finally , it would seen extremely useful , after the discussion of this proposal
has been completed , to prepare a consolidated version of the basic Regulation
on wine- to be put at the disposal - of Community users .
 ---pagebreak---                                Proposai for a
                   REOUliATION ( EEC ) •       OF THE C01PTCTL
       amending Regulation (ESC) No 816/7O laying down additional pro­
       visions for the conmon organization of the market in wine, Regula­
       tion (EEC) No 817/70 laying down special provisions relating to
       quality wines produced in specified regions , Regulation (EEC )
       No 865/68 on the common organization of the market in products
       processed from fruit and vegetables and Regulation (EEC) No 950/68
                         on the Common Customs Tariff
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community,
and in particular Articles 42 and 43 thereof ;
Having regard to the proposal from the Commission }
Having regard to the Opinion of the European Parliament ;
Whereas certain provisions of Council Regulation (ESC) No 816/7O ^ of
28 April 1970 laying down additional provisions for "the common organization
of the market in wine, as last amended by Regulation (EEC ) No 1532/74 2 »
should be amended in the light of experience gained in applying that     /
Régulation :
whereas the organization of the market in wine does not cover grape juice
or unfermented grape must with an added sugar content exceeding 30 $ by
weight , which up to now have been governed by Council Regulation (EEC ) No
865/68 3 of 28 June 1968 on the common organization of the market in pro­
ducts processed from fruit and vegetables , as last amended by Regulation
   Î        •••- • A
(EEC ) No 2429/72 J whereas without prejudice to the- applicability thereto
of Article 94 of the Act of Accession it has been found desirable to bring
the products in question within the ecope of Regulation (EEC ) No 8I6/7O
and, in particular, to transfer to that Regulation the provisions of
Regulation (EEC) No 865/68 concerning the charging of the levy and the
granting of the refund on the sugar added to such products 3
1 OJ No L 99 , 5 May 1970,- p. 1
2 OJ No L. 166, 21 June 1974, p» 1
3 OJ No L 153, 1 July 1968, p. 8
4 OJ No L 264, 23 November 1972 , p» 1
 ---pagebreak---                                      - 2 «
Whereas Article 7 of Regulation (EEC ) No 8I6/7O provides for the possibility
of adopting measures for distillation ; whereas experience, has shown that , if
they are to be effective , it must also be possible to adopt such measures at
the start of the wine–growing year ; whereas provision should therefore be
made for this possibility by providing for a withdrawal price for the
purpose of distillation to be fixed at the same time as the guide prices ;
Whereas comparison beti^een the market price and the activating price is the
determining factor fcr setting in motion or for terminating certain inter­
ventions measures which are intended to help prevent the market price from
diverging too far from the guide, price ; whereas a disparity between the
guide price and the activating price sufficiently large to ensure the proper
functioning of these measures should be provided for ;
Whereas Article 4 of Regulation ( EEC ) No 816/70 provides for the Commission
to fix each week an average producer price for each type of wine and for
each representative market ; whereas in certain cases this average price
may set in motion the intervention mechanisms ; whereas experience has shown
that , for the purpose of setting these mechanisms in motion , it is necessary
to take into account the quantities marketed on the various representative
markets ; whereas to this end it is necessa-iy to fix a Community weighted
average price for each type of wine ;
Whereas the private storage aid system provides in particular for the con­
clusion of short- and long-term storage contracts ; whereas experience has
shown that short-term contracts cannot alone solve the problems experienced
at the start of the marketing year ; whereas it is not possible to bring
forward the start of the period during which long-term contracts may be
concluded , since the forward estimates can not be made in time ; whereas ,
therefore , provision crust  be made for the possibility of deciding at the
start of the marketing year, if an exceptionally abundant harvest is fore­
cast and subject to certain other conditions , to permit the conclusion ,
from .1 September, of special long-term contracts ; whereas , moreover, the
possibility should exist that , in similar circumstances , a decision may
be taken to grant aids for the disposal of must intended for the manufacture
of grape juice and concentrated must in order to relieve the wine market
at a decisive juncture in the formation of producer prices ; whereas this
makes it necessary to extend to grape must the 'Community previsions con­
cerning trade with third countries and in particular to fix: a reference
price for it ;
 ---pagebreak--- Whereas the price of wine delivered for distillation as part of the distil­
lation operations at present provided" for should not be such as to encourage
the production of wine intended solely' for distillation; whereas restrictions
Eire at present placed oh the fixing of" reference prices for wine ; wherea3
experience has shown that it would "be desirable for such price to "be fixed
also in respect of wines in containers' holding 2 litres or less . <
Whereas , in order to ensure that the reference price is adhered to , it is
necessary to specify that the countervailing charge must be fixed "by reference
to the customs duties actually levied ; whereas experience has shown that it
is possible to do away with the possibility of exempting certain quality
wines from the countervailing charge without affecting their importation
into the Community ;
Whereas , in order to preserve a balance between the developecent of wine-
growing structures and the ability to dispose of the wine , aids should be
granted only to encourage replanting for the purpose of improving the
quality of the wine and not to encourage new planting ; whereas Community
criteria relating to the improvement of the quality of wine by replanting
should be laid down in order to ensure that the national aids in question
fit in with Community policy regarding the wine market and the development
of agricultural structures ;
Whereas , in order to avoid hardship , it is necessary to permit the cultiva­
tion of unclassified varieties for a transitional period ; whereas , moreover,
in order to ensure that table wines are of sufficiently high quality , the
definition of table wine and of the products used in its manufacture should
be adjusted, together with the provisions concerning the permitted uses of
the product of unclassified or provisionally authorized vine varieties ;
Whereas , in order to avoid imbalance on the market in wine , provision should
be made for the possible introduction of a Community planting system, and
the measures this might involve should be specified ;
 ---pagebreak--- Whereas , in a large part of wine-^Owing zone A, the addition of sucrose
in aqueous solution is either prohc-bited or authorized only during a
transitional period and practised^ v£3y occasionally, wh.ereas,.in order to
limit the possibility of altering in -this way the natural alcoholic strength
of table wines and quality wines p»s.r« -to those cases in which it is
strictly necessary , zone A should "be split into two parts , one where the
addition of sucrose in aqueous solution is permitted and one where this
operation is absolutely prohibited, for climatic reasons and because the
vine varieties produce grapes which ripen more quickly ;
Whereas Community rules on the sweetening of wines originating in the
Community have already been adopted ; whereas a legal basis should be laid
down to enable the sweetening of imported wines also to be regulated at
Community level ;
Whereas Article 24 of Regulation (EEC ) No 816/70 provides for the obligatory
distillation of marc and lees ; whereas , however, there . have been certain
practical difficulties in applying those provisions ; whereas it seems ,
reasonable to provide for the obligation to distil to be discharged not
only by processing the products in question into potable spirits but also
by processing them into vinegar ; whereas the fixing of a single definitive
percentage before the start of the wine-growing year does not appear      to be
the best solution ; whereas a basic percentage should be fixed before the
start of the wine-growing year to ensure that the desired quality is upheld
but provision should also be made for an additional percentage to be fixed
subsequently depending on the size and actual quality of the harvest ;
Whereas it should be specified that the coupage of a wine suitable for
yielding a table wine with a table wine may yield a table wine only if that
process takes place in the zone where the wine suitable for yielding a
table wifte was produced ; whereas the prohibition of the coupage of wine
origin?,ting in one third country with wine originating in another third
country applies to the whole of the Community including the free zones ;
 ---pagebreak--- Whereas practically the only difference "between aerated sparkling wines
and aerated semi-sparklinj wines is their carbon dioxide pressure in closed
containers ; whereas these two categories of wine should therefore "be grouped
together as " aerated wines "; whereas it has therefore "been necessaiy to
alter the text of the provisions relating to the said products ;
Whereas , in order to prevent fraud in the manufacture of wine , the alcoholic
fermentation of grape juice and concentrated grape juice , whether imported
or not , and if imported fresh grapes , grape must , concentrated grape must ,
grape must in fermentation and grape must with fermentation arrested by the
addition of alcohol should "be prohibited !
Whereas the Community market must not be deprived of certain wines origina­
ting in third countries , particularly those with a total alcoholic strength
exceeding 15 ° which do not correspond to the definition of liqueur wine ,
irrespective of whether their alcoholic strength is natural or is obtained
by the addition of alcohol ; whereas a legal basis should therefore be laid
down to enable provisions authorizing the importation of such wines to be
adopted ; whereas experience has shown the need to define must with fermenta­
tion atrested by the addition of alcohol and to alter the relevant pro­
visions accordingly ;
Whereas , bearing in mind the interests of consumers and the desirability
of obtaining equivalent treatment for quality wines p.s.r. in third countries ,
provision should be made , where reciprocal arrangements can be established ,
for the possibility that wines of superior quality designated by a geographical
indication imported from third countries and marketed in the Community may ,
in Certain . circumstances , be controlled and protected as provided in respect
of quality wines p.s.r , ;
Whereas , if the market experiences or is threatened with serious disturbances
at a time when an abnormal quantity of wine is being imported from third
countries whose wines receive preferential treatment on importation into
the Community , measures should be taken to maintain the income of producers ;
whereas to this end it may be necessary to decide that special distillation
of wine be carried out ;
 ---pagebreak---                                        - 6 -
Whereas it has been found, desirable , in order to facilitate intra-Community
trade and to supplement accordingly the common import arrangements , to
provide for the establishment not only of the methods of analysis required
for the implementation of Annexes I and II to Regulation ( EEC ) No 816/70
but also of all those required for the determination of the composition of
the products specified in Article 1 ;
Whereas fraud and     docoption must be punished effectively and speedily ;
whereas the growth iniatva-Comnunity trade makes the work of the special
departments of Member States more difficult ; whereas the foundations of a
better system for the suppression of fraud at Community level should be
laid by making provision for these departments to cooperate with one another
directly ; whereas such direct cooperation must enable the departments in
question to inform the corresponding departments of a Member State of any
infringement , discovered or suspected , in order that the latter may take
the appropriate steps without delay ;
Whereas Council Regulation (EEC ) No 8I7/7O ^ of 28 April 1970 laying
down special provisions relating to quality wines produced in specified
regions , as last amended by Regulation ( EEC ) No 2630/72      should be
amended in the light of experience gained on the market in quality wines
produced in specified regions ;
Whereas the natural alcoholic strength of grapes at the tine of harvest is
a factor in assessing their degree of ripeness ; whereas it appears necessary
to fix the minimum natural alcoholic strength of quality wines p.s.r ? i:i
the various wine-growing regions at a level such as to ensure , even in poor
years , that the grapes used in their manufacture had reached a satisfactory
degree of ripeness ; whereas such an adjustment also calls for the minimum
total alcoholic strength of quality wines p.s.r , to be changed ;
( 1 ) 0J No L 99 , 5 May 1570 , p . 20
( 2 ) 0J No L 289 , 27 Eecember 1972 , p. 1
 ---pagebreak---                                         - 7 -
Whereas it may prove necessary , in order to preserve the quality of quality
wines pes,r® , to permit the increase in alcoholic strength provided for in
exceptional circumstances in Article 18(2 ) of Regulation (EEC ) No 816/7O -
in respect only of table wines and not of quality wines p.s.r.; whereas
tablQ wines should therefore be dissociated " from (Juality wine's *p«s«r« as
regards the possibility of authorizing such exceptional increase in alcoholic
strength in any given wine-growing area ; whereas for tho same reason it is
desirable to limit the addition of sucrose in aqueous solution j
Whereas , in order to preserve as far as possible the specific character . be­
stowed by its origin on each quality wine p,s»r« and to simplify the work
of the inspection agencies , such wine may be sweetened only within the
specified region in question, by means of products originating in the same ,
region and in accordance with rules to be laid down within certain limits
by the Member States ;
Whereas , in order to ensure uniform application of the provisions relating
to quality wines p®s«r« t provision should be made for the possibility . of
establishing methods of analysis to deal with specific , cases ;
Whereas * in order to make Article 12(3 ) of Regulation (EEC ) No 8I7/7O as *
clear as possible , the phrase, "without prejudice to the provisions of
Article 30(2) and ( 3) of Regulation (EEC) No CI6/7O" should be deleted ;
whereas , however, in order to enable the Member States to comply gradually
with the principle laid down in that provision, ; they should be permitted \
in certain exceptional cases to depart from that principle during a transitional
period of five years ;
Whereas this opportunity should be taken to correct mistakes occurring in
Article 33(l ) of Regulation (EEC) 'No 816/70 and in Article 9(l ) and the
German text of Article 11 ( l ) of Regulation (EEC ) No 817/70 ;
Whereas , if aid is to be granted in respeot of Community grape must intended
for the preparation of grape juice , trade in all vine products must be made
subject to Community rules ; whereas for this purpose a precise distrinction
must be made between grape must and grape juice ; whereas such distinction must
be shown in the Common Customs Tariff, which will need to be altered accordingly r
HAS ADOPTEE THIS REGULATION Î
 ---pagebreak---                                     Article 1
Article 1 of Regulation (EEC ) Wo 8l6/70 is amended as follows :
1 » The text of . paragraph 2 is replaced by the following :
" It shall apply in respect of the following products :
                                                                   ■   1 1 1 11 t
    CCT heading No
                                     Description Of goods                       j
    ( a) 20.07 A I                  Grape must and grape juice
                A II                whether or not containing added
                B I                 sugar | "but unfermented and not con­
                B II                taining spirit .
                B III a) 1
                3 III h ) 1
    (h ) 22.04                      Grape must , in fermentation or
                                    with fermentation arrested other­
                                    wise than by the addition of
                                    alcohol
          22.05                     Wine of fresh grapes ; gl*ape must ^
                                    with fermentation arrested by
                                    the addition of alcohol
    ( 0 ) 08.04 A II                Fresh grapes other than tablé
                                    grapes
        . 22.10                     Wine vinegar
    (d) 22.07 A                     Piquette
          23.05 A                   Wine lees
          23.06 A I                 Grâpe marc
2 , Paragraph 4(b) is amended as follows :
In the first indent , the phrase " and diluted vious wine" is deleted .
The second indent is replaoed by the following :
    Community-produced grape must with fermentation arrested by the addition
    of alcohol , concentrated grape must , wine suitable for yielding table
    wine , table wine ,, liqueur wine , sparkling wine , semi-sparkling wine and
    aerated wine :"
 ---pagebreak---                                    Article 2
The following Article is inserted in Regulation (EEC ) No 8I6/7O:
"^ rti cle 2a
1 . A price shall be fixed annually , before 1 August , for the withdrawal of
    wine from the market for the purpose of distillation (hereinfafter called
    the "withdrawal price") and shall apply to new wine still in fermentation-;
    to viine suitable for yielding table wine and to table wine .
2 . The withdrawal price shall be valid from 15 September to 15 November
    of the year in which it is fixed .   It shall be expressed in units of
    account per degree per hectolitre *
3 . The level at which the withdrawal price is fixed shall be "between 50 and
    60 cjo of the guide price valid for the period in question ■ for whichever
    type of wine has the lowest such price and shall :
    – take account of the desirability of stabilizing the market with effect
       from the start of the wine-growing year if the harvest has been
       abundant , while at the same time ensuring a minimum return to the
       producer ; and
    - be such that the balance of the market in ethyl alcohol is not adverse!;"
       affected and that the production of wine of inadequate quality is not
       encouraged,               '
4 » There may be fixed , on the same basis , one or more special withdrawal
    pricen at a level higher than the withdrawal price but which may not
    exceed 10 % of the guide price for the corresponding type of table wine.
5 . The prices provided for in this Article shall be fixed in accordance with
    the procedure laid down in Article 43(2 ) of the Treaty ."
 ---pagebreak---                                 Article 3
The following subparagraph is added to Article 3(2 ) of Regulation
(EEC ) No 816/70:
"It may not , however, exceed 95 $ of "the corresponding guide price .
 ---pagebreak---                                  Article 4
The -text of Article 4 of Regulation (EEC ) No 816/7O is replaced by the
following :
"Article 4
1 . For each type of wine for which a guide price is fixed , the Commission
    shall , on the basis of all the data available to it , fix each week:
    - an average producer price (hereinafter called the "average price") for
      each representative market for the type of wine in question} and
    - a Community weighted average price , being for each type of wine the
      average of the weighted average prices for the quantities marketed on each
      representative market .
2 . Member States shall supply the Commission with all relevant information
    for fixing the prices provided for in paragraph 1 , and in particular
    the producer prices recorded on the representative markets for each type
    of wine and the quantities to which they relate .
3 . Detailed rules for the application of this Article and in particular
    relc.ting to the list of representative markets and to the methods for
    recording prices , shall be adopted in accordance with the procedure laid
    down in Article 7 of Regulation No 24-«".
 ---pagebreak---                                  Article 5
The text of Article 5 of Regulation (EEC ) No 816/70 is replaced "by the '
following:
"Article 5
1 . There is hereby instituted a system of aid for the private storage of
    table wine and the disposal of grape must .
2 . The granting of private storage aid shall he subject to the conclusion
    Kith the intervention agencies , on terms and conditions to be determined
    of one of the following types of storage contract :
    - contracts valid for a period of three months , hereinafter called
      " short-term contracts ";
    - contracts valid for a period of nine months , concluded between 16
      December and 15 February of the following year , hereinafter called
      " long-term contracts ";
    - contracts valid for a period of nine months , concluded between 1
      September and 15 December , hereinafter called " special long-term
      contracts ".
3 . Short-term contracts may be entered into in respect of any given type
    of table wine if during the wine-growing year the Community weighted
    average price for that type of wine remains for two consecutive week3
    less than the activating price .  They may no longer be entered into when
    for two consecutive weeks the weighted average price for that type of
    wine remains equal to or higher than the activating price .
    If the state of the market so requires , a decision may be taken to
    permit the conclusion of short-term contracts in respect of table wines
    of a type other than that referred to in the preceding subparagraph ,
    where such table wines stand in close economic relationship with the
    latter type .  Short-term contracts msy no longer be entered into in
    respect of theso wines when they msy no longer be entered into in respec
    of the type of table wine with which they stand in close economic
    relationship .
 ---pagebreak--- Article 5 page 2
4 . Independently of the provisions of paragraph 3 » short-term contracts
    may "be entered into in respect of a given wine-growing zone or part of
    a wine-growing zone if in such zone or part of zone , in particular owing
    to an exceptionally abundant harvest , an imbalance appears at the be­
    ginning of the vane-growing year between the quantities available and
    the quantities that can be sold .
5 . Long-term contracts may be entered into in respect of certain types of
    table wine to be specified if the forward estimates for a wine-growing
    year show that the quantity of such wines available at the beginning of
    that year exceeds total foreseeable requirements for that year by more
    than four months' consumption .
6 . Where, during the period from 1 September to 15 December, the following
    conditions are fulfulled
    - the Community weighted average prices for any three types of wine
      together representing more than half of Community production remain,
      for two consecutive weeks , at a level below 9.0 i° of their respective
      activating prices }
    - the quantity of table wine cf all types under storage contracts exceeds
      10 million hi at the time of the last statement of such contracts
      before the end of the two-week period referred to in the preceding
      indent ;
    - as a result of forecasts of . an exceptionally abundant harvest a clear
      imbalance between supply and demand is foreseeable ; .
      then a décision may be taken :
      ( a) to permit the conclusion of special long-term contracts in respect of
           certain types of table wine to be specified and/or
      (b ) to grant aid for the disposal of Comr.iunity-produced grape must
           intended for the preparation of grape juice, concentrated grape
           juice and concentrated must .
 ---pagebreak--- Article 5t pa^é 3
7 « The amount of the aid provided for in paragraph 6(b ) must be such as 'will
    improve the position of grape must in relation to competing products ,
    particularly as regards to the processes specified in Article 19 .
8 . Where and for such time as long-term contracts may be entered into under
    paragraph 5 or under paragraph 6:(a), no aid may be granted under paragraph
    3 or 4 .
9 . Decisions as to the possibility of entering into storage contracts as
    provided for in the second subparagraph of paragraph 3 and in paragraphs
    4f 5 and 6(a) and as to the granting of the aids provided for in paragraph
    6(b) shall be taken in accordance with the procedure laid down in Article 7
    of Regulation No 24 •
    The same procedure shall be followed
    ( a) for deciding, if justified by the development of the market situation
         and in particular by the rate of conclusion of storage contracts , that
         long-term contracts may no longer be entered into even before 15
         February and that special long-term contracts may no longer be entered
         into even, before 15 December ;
    (b) for adopting other detailed rules for the application of this Article .
      The Commission shall decide whether storage contracts may or msy no longer
      be entered into in the case provided for in the first subparagraph of
      paragraph 3 and whether they may no longer be entered into in the case
      provided for in the second subparagraph of paragraph 3 «
 ---pagebreak---                                       Article 6
Article 6 of Regulation (EEC ) No 816/ 70 is amended as follows :
1 , The text of paragraph 2 is replaced "by the following:
   . V.2 . The conclusion of storage contracts shall be subject to conditions
           relating in particular to the quality of the wine in question.
           It may "be provided that storage contracts are to contain a provision
           for the termination of aid payments and of the producer 's corresponding
           obligations in respect of all or part of the quantities stored if
           for two consecutive weeks the Community weighted average price for
           the type of wine in question remains equal to or higher than the guide
           price for that type of table wine .
2 , The text of the second subparagraph of paragraph . 3 is replaced by the
     following:
     "However, for long-term contracts and special long-term contracts , the
     amount thus determined may be increased by not more than 20 $ to take
     account of the risks inherent in such contracts .".
 ---pagebreak---                                    Article 7
The following Article is inserted in Regulation (EEC ) No 816/7O :
 "Article 6b
l s Where , during the period from 15 September to 15 November, the following
    conditions are fulfilled :
    - the Comnunity weighted average prices for any three types of wine
      together representing more than half of Comnunity production remain
      for two consecutive weeks at a level below 80 $ of their respective
      activating prices }
-   - the quantity of table wine of all types under storage contracts exceeds
      10 million hi at the time of the last statement of such contracts
      before the end of the two-week period referred to in the preceding indent j
    - as a result of forecasts of an exceptionally abundant harvest a clear
      imbalance between supply and demand is foreseeable ;
    then a decision may be taken to commence distillation of the products
    specified in Article 2a(l)a
2a The price of the products delivered for distillation shall not be less
    than :
    - the withdrawal price ;
    - the special withdrawal price for a quantity of wine produced by the
      producer equal to the quantity in respect of which he has concluded a
      long-term contract which expires during the period specified in para­
      graph 1 .            -
3 » The Council , acting in accordance with the voting procedure laid down in
    Article 43(2 ) of the Treaty on a proposal from the Commission, shall
    adopt provisions concerning the distillation of the products in question ,
    relating in particular to
    - the conditions under which distillation may be carried out ;
    - disposai of the distilled productsa .
4a The decision provided for in paragraph 1 and detailed rules for the
    application of this Article shall be adopted in accordance with the
    procedure laid down in Article 7 of Regulation No 23-," •
 ---pagebreak---                                      Article 8
The text of Article 7 °f Regulation (EEC ) No 816/7O is replaced "by the
following :
".Article 7
1 « Where the application of the intervention measures provided for in the
    preceding Articles is unl kely to "be effective in restoring price levels ,
    the Coiincil , acting in accordance with the voting procedure laid down in
    Article 43(2 ) of the Treaty on a proposal from the Commission, shall
    adopt measures for the distillation of table wine ,
2 . Such measures shall state under what ©onditions distillation may "be
    carried out .   These conditions , which may "be varied according to the
    wine-growing zone :
    ( a) shall be such as to ensure that the "balance of the market in ethyl
         alcohol is not adversely affected ;
    (b) shall not be such as to encourage production of wine of inadequate
         quality .
3 . The measures shall relate in particular to
    – the fixing of the price of wine delivered for distillation, which may
       not exceed 70    of "the guide price valid for the same period for the
       type of wine in question :
    – disposai of the distilled products »
4 . Detailed rules for the application of this Article shall be adopted in
    accordance with the procedure laid down in Article 7 of Regulation No 22V'
 ---pagebreak---                                     Article 9
Article 9        Regulation (EEC) No 816/70 is amended as follows :
1 , In paragraph 1
     (a) tiie text of the first subparagraph is replaced by the following:
           "There shall be fixed annually before 16 December a reference price
          for the following products presented in bulk:
          – red wine ,
          - white wine «"
     (b) the text of the third subparagraph is replaced by the following:
          "Referenoe prices shall also be fixed in respect of grape must ,
          concentrated grape must , grape must with fermentation arrested by
          the addition of alcohol , fortified wine and liqueur wine and wine
          in containers holding 2 litres or less#
          Special reference prices may be fixed in rospeot of tie products
          referred to in the first and third subparagraphs if they have special
                                                            II
          characteristics or are intended for special uses .   ,■ ; . .
    ( c ) the fifth subparagraph is deleted#
2 , The text of the first subparagraph of paragraph 2 is replaced by the
    following :
    ''In respect of each produot for which a reference price is fixed , a freo-
    at-frontier offer price for all imports shall be determined on the basis
    of all available information#'1
3# In paragraph 3
    ( a) the text of the first subparagraph is replaced by the following:
          "Where the free-at-frontier offer price for a product for which a
          reference price is fixed plus the customs duties actually charged
          is lower than the reference price for that product shall be levied
          on imports of that product a countervailing charge equal to the
          difference between the reference prioe and the free-at–frontier offer
          prioe plus the customs duties actually charged# "
 ---pagebreak---                              Article 9 , pj?ge 2
   (b) the thiyd subparagraph is deleted#
4* The text of paragraph 4 is replaced by the following:
   "If it is impossible to determine a free-at–frontier offer price for a
   product for which a reference price has been fixed , the countervailing
   change for the product in question shall be fixed by applying xo the
   charge on a product which stands in close economic relationship with
   the product in question a coefficient established by reference to the ratio
   existing on the Community market between the average prices of the products
   concerned *".
 ---pagebreak---                                  Article 10
The following Article is inserted in Regulation (EEC) No 816/ 70 :
 "Article 9a
1 . In addition to the customs duties and countervailing charge referred to
     in Article 9(3 )» a levy on added sugar content shall be charged on
     imports of the products specified in Article 1 (2 ) ( a) under Common
     Customs Tariff subheadings Nos 20„07 A II b ) 1 and B III b 1 aa, such
    levy to be as speoified in the following paragraphs#
2 . The levy per 100 kilograjnmes net weight of imported product shall be
     equal to the difference between :
     ( a) the average of the threshold prices for one kilogramme of white sugar
          fixed for each of the three months of the quarter for which the said
          difference is to be determined , and
     (b ) the average cif price for one kilogramme of white sugar as used for
          the purpose of fixing the levies on white sugar, such average being
          calculated for a period comprising the first fifteen days of the
          month immediately preceding the quarter for which the difference is
          to be determined and the two months immediately preceding that month ,
    that difference     being   multiplied by the figure shown in column 1
    of    Annex V for the product in question .
    If the amount specified in (b ) is higher than that specified in ( a),
    no levy shall be charged.
3 . The difference as specified in paragraph 2 shall be determined by the
    Commission for each quarter of the calendar year .
4 . If the threshold price referred to in paragraph 2(a) is altered during a
    quarter, the Council , acting in accordance with the voting procedure laid
    down in Article 43(2 ) of the Treaty on a proposal from the Commission ,
    shall decide whether the difference should be adjusted and , if so , shall
    presoribe the measures to be taken to that end .
5 . If on the 15th of the month preceding the quarter for which the difference
    as specified in paragraph 2 is to be determined , an item necessary for the
    calculation of that difference is not known , the Commission shall calculate
    the difference using in plaoe of the missing item the figure taken into
    consideration in calculating the difference for the current quarter.
                                                               /.
 ---pagebreak---     A corrected difference shall "be determined "by the Commission and shall
    "be operative from the sixteenth day at the latest following the day on
    which the missing item "becomes known*
     If , however, the item in question does not "become known until after the
    beginning of the last month of the quarter in question, the difference
     shall not "be corrected*
6 , If the added sugar content per 100 kilogrammes net weight of imported
    product , as determined in accordance with paragraph 8 , is less "by two
    kilogrammes or more than that content as expressed "by the figure shown
    in column 1 of Annex V for the product in question, then if the importer
     so requests , the levy shall "be calculated per 100 kilogrammes net weight
    of imported product "by multiplying the difference as specified in para­
    graph 2 "by a figure representing the added sugar content as defined in
    paragraph 8 »
7 « If the added sugar content per 100 kilogrammes net weight of imported
    product , as determined in accordance with paragraph 8 , is less "by three
    kilogrammes or mere than that content as expressed "by the figure shown
    in column 1 of Annex V for the product in question, then the levy shall
    "be calculated as provided in paragraph 6 ,
8 . The figure to "be regarded as respresenting the added sugar content shall
    "be the figure obtained by refractometry as described in Annex III to
     Council Regulation (EEC) No 865/68 of 28 June 1968 on the common organizar-
     tion of the market in products prooessed from fruit and vegetables, ^ as last
     amended by Regulation (ESC ) No 2429/72t     multiplied by the factor 0*95
     in the case of the grape juices specified in Annex V to this Regulation –
    minus the figure shown in column 2 of that Annex for the product in question,
9 » Such detailed rules as may be required for the application of paragraphs 1
     to 8 shall be adopted in accordance with the procedure laid down in Article
     7 of Regulation No 24 »
                                                                ./.
       OJ No L 153 , 1 July 1968, p. 8
(2) OJ No L 264, 23 November 1972 , p. 1
 ---pagebreak--- Article 10 , pape 3
10 , The Council , acting in accordance with the voting procedure laid down in
     Article 43(2 ) of the Treaty on a proposal from the Commission, may
     amend Annex
 ---pagebreak--- The following Article is inserted in Regulation (EEC) No 8I6/7O :
"Article 10a
1 . A refund shall he granted in respect of exports to third countries of
     sugars falling within heading No 17a 01 and of glucose and glucose syrup
     falling within heading No 17«02 , whether or not in the form of products
     falling within subheading No 17 <J 02 B I , incorporated in the products
     falling within subheadings Nos 20,07 A II b) 1 and B III b 1 aa)«
     The refund shall be granted on application by the party concerned.
2 . The refund to be granted per 100 kilogrammes net weight of exported
     product shall be equal :
     - in the case of raw sugar and white sugar, to the refund fixed per
       kilogramme of sucrose in accordance with Article 17 of Regulation
       No IOO9/67/EEC and the provisions adopted in implementation thereof
       for the products specified in Article 1 ( l ) (d) of that Regulation
       multiplied by a figure expressing the quantity of sucrose utilized
       per 100 kilogrammes net weight of finished product ;
     - in the case of glucose and glucose syrup , to the respective refunds
       fixed for those products in accordance with Article 16 of Regulation
       No 120/67/EEC and the provisions adopted in implementation thereof,
       multiplied by a figure expressing the quantity of glucose or glucose
   '   syrup utilized per 100 kilogrammes net weight of finished product .
       The figures expressing the quantities of sucrose , glucose or glucose
       syrup shall be determined on the basis of the information supplied
       under Article 4 of Regulation (EEC) No 865/68#
3 . The Council , acting in accordance with the voting procedure laid down in
     Article 43(2 ) of the Treaty on a proposal from the Commission, sha^l
     adopt general rules on the granting of refunds *
4 . Such detailed rules as may be required for the application of this
     Article shall be adopted in accordance with the procedure laid flowr in
     Artiole 7     Regulation No 24 »"«
 ---pagebreak---                                      Article 12
1 . The following Article is inserted in. Regulation ( EEC ) No 816/70 :
" Article 10 b .                                  ■  -
1 . The levy referred to in Article 9 a ( l ) and- "the refund referred to in'
    Article 10 a shall be those applicable on the day of importation or
    exportation .       •,
2 . To qualify for the refund referred to in Article 10 a the products listed
    in the seme Article must be accompanied by a declaration from the party
    concerned indicating the amounts of sucrose , glucose and glucose syrup
    incorporated therein .
3 . Where the provisions of Article 9 a ( 6 ) and ( 7 ) apply , the products listed
    in paragraph 1 of the same Article must be accompanied by a declaration
    from the importer indicating the added sugar content established by the
    method described in Article 9 a ( 8 ); however , where this condition is
    not fulfilled Article 9 a ( 6 ) shall not apply .
    The accuracy of the declaration referred to in the preceding paragraphs
    shall be subject to the. control by the competent authorities of the
    Member State concerned .
5 . Detailed rules for the application of this Article shall be adopted as
    necessary in accordance with the procedure laid down in Article 7 of
    Regulation No 24 ."
 ---pagebreak---                                       Article 13
The following Annex is inserted in Regulation ( EEC ) Eo 816/70 :
                                       atjex Y
Standard added sugar and natural sugar contents of grape juice and concentrated
grape juice   s
 CCT
                                                               Standard sugar contents
 Heading                      Description
                                                                         i
 H°                                                          Added sugar   lîatural sugar
                                                                 (1)             ( 2)
 22.07      Fruit juices ( including grape must )
            and vegetable juices , whether or not
            containing added sugar , but unfermen­
            ted and not containing spirit :
            A » Of a spécifie gravity exceedmg
                I.33 at 15°C :
                II . Grape juice
                     t ) Of a value not exceeding
                         2;2 UA per 100 kg net weight :
                         1 » Nith an added sugar con­
                              tent exceeding 30 $ by-
                              weight                             49              15
            £.  Of a specific gravity of 1.33 or
                less at 15°C s
                III . Grape , apple and pear juice ;
                      mixtures of apple and pear
                       juice :
                      b ) Of a value of 18 UA or les3
                          per 100 kg net weight :
                           1 . Grape juice :               j
                               aa ) With an added sugar
                                    content exceeding
                                    30 $ by weight . . . .       49              15
 ---pagebreak---                                  Article 14
rticle 13(l ) of Regulation ( EEC ) No 8I6/7O is replaced "by the following:
1 , Importation of the products listed in Article 1(2 ) to which alcohol
    has teen added, with the exception of those products originating in the
    Community to which alcohol may be added under Article 25 ( l ) e-nd (2 ) and
    the fortified wines referred to in the second subparagraph of Article 28
    shall be prohibited,"
 ---pagebreak---                                     Article 15
   Article 15 Regulation (EEC ) No 816/7O is replaced "by the following:
   "Article 15
   1 » All national aids for new vine planting and for replanting shall "be prohibited
       subject to paragraph 2 , '
  2 * (a) Member States may, pursuant to Council Directive No 72/159/E3C ^ of
             17 April 1972 on the modernization of farms , grant aids for replanting
             with a view to improving the quality of the wineso
             Provisions aimed at defining the criterion of improvement in quality
             may "be adopted in accordance with the procedure laid down in Article 7
             of Regulation No 24 «
       (b) For large–scale replanting to be carried out as part of an overall
             operation within the framework of a plan for improving the structures
             of the vineyard concerned , in particular for the purpose of land
             consolidation the aids referred to in ( a) may exceed those provided
             for in the first subparagraph of Article 8(2 ) and the first subpara­
             graph of Article 14(2 ) of Council Directive No 72/l59/'EEC » However,
             the percentage of the interest rate subsidy may not exceed by more
             than 1 fo the maximum percentage which may be granted under Article
             8(2 ) of Directive No 72/159 /EEC .
  3 . As long as the provisions of Part 2 of Regulation No I7/S4/2EC continue
                                                                                    2
       to apply pursuant to Article 6(4) of Council Regulation (EEC ) No 729/70
       of 21 April 1970 on the financing of the common agricultural policy , the
       operations referred to in paragraph 2(b ) msy receive assistance from the
   ELiQCrl? . under Regulation No I7/64/EEC , provided that no financial contribu­
       tion is granted under Article 19 of Directive No 72/159/SEC »"
  -1
      0J No L 96 , 23 Aprii 1972 , p . 1
  2 0J No L 94. 28 Aprii 1970, p. 13
V
 ---pagebreak---                                   Article 16
The following paragraph, is added to Article 16 of Regulation (EEC ) No 816/7O1
"3 » Notwithstanding paragraph 1 | the cultivation of vine varieties not in­
     cluded in the classification shall be permitted
     - for ten years after such varieties have "been removed from the classifi­
       cation , or
    - until 31 August 1983 at the latest in the oase of vines already growing
      on 31 December 1970 ,"
 ---pagebreak---                                   Article 17
The following paragraph is added to Article 17(5 )       Regulation (EEC )
No 816/70 î
11 These provisions may include in particular :
   (a) the introduction of a planting system whereby, inter ali^t
       each area newly planted or replanted must be offset "by the gruubing-up
       of a corresponding ai^ea ;
    (b) the limitation or prohibition of new planting, replanting or both
        during a period to be determined , either
        - tliroughout the Comnunity , or
        - in those production areas or parts thereof, where it has proved
           particularly difficult to market the winej
    £)  prtr;i sicca  stipulating that only certain varieties of vine to .
        be determined nay be replanted or newly -planted ,"
 ---pagebreak---                                  Article 18
The following Article is added to Title IV of Regulation (EEC ) No 8l6/70 :
"Article 17a
                             l                          t
 Only grapes from recommended or authorized vine varieties as referred to
 in Article 16 and products derived from such grapes may "be used within the
 Community for the preparation of :
 – grape must with fermentation arrested by the addition of'" alcohol ,
 – concentrated grape must ,
 - wine suitable for yielding table wine ,
 - table wine ,
 - quality wine p.s.r,,
 - liqueur wine .
 However, until 31 August 1983f grapes from vino varieties provisionally
 authorized shall also be regarded as statable for yielding the above product
 with the exception of quality wine p,s»r,"
 ---pagebreak---                                  Article 19
In Article l8(l ) and (2 ) of Regulation (EEC ) No 816/70, the words "wine-
growing zone A" are replaced "by the words "wino-growing zones A".
 ---pagebreak---                                   Article 20
Article' 19 of Regulation (EEC ) No 816/70 is amended as follows :
1 . The text of the second subparagraph of paragraph 3 is replaced by the
    following:
    "However, until 30 June 1979 » sucrose may be added in aqueous solution
    in certain wine-growing regions of zone A I , provided that the volume
    of the product to which the solution is added is not thereby increased
    by more than 15 $•"•
2 . In the first subparagraph of paragraph 6 the words "in wine-growing
    zone A" are replaced by the words " in wine-growing zones A"»
 ---pagebreak---                              Article 21
The following paragraph is added to Article 21 of Regulation (EEC)
No 816/70 :
"Without prejudice to the first subparagraph of Article 28 (2 ), the
sweetening of imported vanes shall be subject to conditions to be
determined*".
Paragraph 2 of Artiole 21 of Regulation (EEC ) No 8I6/7O becomes
paragraph 3 ,
 ---pagebreak---                                      Article 22
  Article 24 of Regulation (EEC ) No 8I6/7O is replaced 1)7 the following:
  "Article 24
  1 , The overpressing of grapes , whether or not crushed, and the pressing of
      wine lees , shall "be prohibited, as also the refermentation of grape marc
      for. purposes other than distillation.
  2 , E±oept "by way of derogation decided "by the Council , acting in accordance
      with the voting procedure laid down in Article 43 ( 2 ) of the Treaty on
      a proposal from the Commission, any natural or legal person who turns
      into wine fresh grapes , grape must , grape must in fermentation or new
      wine still in fermentation shall be required to distil the wine lees
      and grape marc which result from the process or, failing that , a correspond­
      ing quantity of wine ,
• 3 . The quantities of alcohol contained in products delivered for distillation
      pursuant to paragraph 2 shall not exceed 15 fo of the volume of alcohol
      contained naturally in the products used for the production of the wine .
      Assessment of that volume shall be made on the basis of a standard natural
      minimum alcoholic strength laid down for each wine-growing year in each
      wine-growing zone .
  4 » The obligation to distil referred to in paragraph 2 may under certain
      conditions be discharged by suing the lees , marcs or, where appropriate ,
      the wines in question either for the production of potable spirits , or
      – for the production of potable spirits , or
        for vinegar-making.
  5 . Subjeot to the provision that the total quantity of alcohol may not exceed
      the maximum percentage stipulated in paragraph 3 ,
      (a) a basic percentage shall be fixed annually before 1 August for the
           following wine-growing year ;
      (b) one or more additional percentages may be fixed before 1 January for
           the current wine-growing year.
 ---pagebreak--- Article 22 page 2
6 . An additional percentage may be fixed only if the forward estimates for
     the current wine-growing year show that the quantity of table wine
     available at the beginning of the year exceeds total foreseeable require­
  " "nents for that year by more than four months' consumption.     In fixing
     such percentage , account shall be taken of
     – the quality of the harvest ,
     – the need to avoid disturbing the market in ethyl alcohol or potable
       spirits .                                                           ; .
.      A decision may bo taken to apply the additional percentages only in
       respeot of producers with a yield per hectare which exceeds a certain
       amount which may not be the same in all cases .
7 . The Council , acting in accordance with the voting procedure laid down in
     Article 43(2 ) of the Treaty on a proposal from the Commission, shall
     adopt provisions concerning the distillation of the products, in question ,
     relating in particular to         1               ,     ,
     – tho price to be paid , according to their alcohol content , for marcs ,
       lees and , where appropriate , wines delivered for distillation, such
       price not to exceed a level corresponding to that of the withdrawal price
       as provided for in Article 2a }
    – that part of the expenditure incurred by the intervention agencies
       to be borne by the Guarantee Section of the European Agricultural
       Guidance and Guarantee Fund 5
    – detailed rules for the application of paragraph 4 }
     - disposai of the distilled products .
Acting in accordance with the same procedure, the Council may exempt certain
production regions from the obligation laid down in paragraph 2 ,
8 . Detailed rules for the application of this Article, relating in particular
     to the standard natural alcoholic strength referred to in paragraph 3 » the
     percentages provided for in paragraph 5 and the yields per hectare to
     be determined for the purpose of paragraph 6 , shall be adopted in accordance
     with the procedure laid down in Article 7 of Regulation No 24«".
 ---pagebreak---                                         Article 23
Article 26 of Regulation No 816/70 is amended as follows t
1 . The text of paragraph 2 is replaced "by the following:
     "2 ., The coupage of a wine suitable for yielding a table wine with:
           ( a) a table wine , may yield a table wine only if that prooess takes
                  place in the wine-growing zone where the wine suitable for
                  yielding a table wine was produced ;
           (b ) another wine suitable for yielding a table wine, may yield a
                  table wine only if
               - -. the . latter wine was produced in the same wine-growing zone ,
                ,   and
                  - the process takes place in the same wine-growing zone".
2 , The coupage of a wine originating in a third country with a Gommunity
     wine and the coupage on Community territory of wines originating in
   . third countries shall be prohibited except by way of derogation to be
     decided by the Council , acting in accordance with the voting procedure
     laid down in Article .43(2 ) of the Treaty on a proposal from the. Commission
 ---pagebreak---                                     Article 24
Article 27 of Regulation .(EEC ) No 81S/7O is amended as follows :
1 . The text of paragraph 2 'is replaced "by the following:
    "2 . Of the products falling within Common Customs Tariff heading No 22.05 ,
         only liqueur wines , sparkling wines , aerated wines , semi-sparkling
         wines, quality wines ,p.s.r., the wines specified in Article 23(l ) and
         tabic wines may he offered or disposed of for direct human consumption
         within the Community,"
2 * The seoud subparagraph of paragraph 3(a) is replaced "by the following:
    "However, in years when the climatic conditions have "been unfavourable,
    it may be decided that products from wine-growing zones A and B which
    do not possess the minimum natural alcoholic strength laid down for the;
    wine-growing zone in question may be used in the Community for the pro­
    duction of sparkling wines or earated wines ," provided that
    – such sparkling wines have an actual alcoholic strength of not less than
       8.5° .
    - such aerated wines have an actual alcoholio strength of not less than 9 •
    Where such decision is taken, the provisions of Article 18 shall apply,
    with the exception of those relating to minimum natural alcoholic strength."
3 * In paragraph 3, "the following subparagraphs are added after subparagraph (b):
    "(p) From 1 September 1983 , wines coming in whole or in part from provisionally
         authorized vine varieties may not be put on the market within the Community,"
         They may be used oniy for consumption in the families of individual wine­
         growers and may not be delivered to a co-operative . Wines coming in whole
         or in part from vine varieties previously but no longer recommended or
         authorised may be used only for consumption in the families of wine­
         growers or for distilling or viftegaiwnaking. 11 .
4* The text of the first subparagraph of paragraph 4 is replaced by the follow­
    ing:
    "Grape juice and concentrated grape juice originating in the Community may
    not be subjected to alcoholic fermentation turned into wine or added to
    wine . These products shall be subject to control with respect to their use ."«>
 ---pagebreak---                                     Article 25
Article 28 of Reflation ( EEC ) No 816/7O is amended as follows :
1 . The text of paragraph 1 is replaced by the following :
   "1 . Imported wines , except for liqueur wines and sparkling wines , may be
         released for direct human consumption only on condition that
         – they have an actual alcoholic strength of not less than 8*5° and a
           total alcoholic strength not exceeding 15° ,
         – they have a total acidity content expressed as tartaric acid of not
           less than 4*5 g/l » or 60 ail li equivalents per litre ,
         – they satisfy the additional requirements imposed or to be imposed by
           the Council , acting in accordance with the voting procedure laid
           down in Article 43(2 ) of the Treaty on a proposal from the Commission.
         However , in accordance with this procedure , certain imported wines
         not satisfying certain of the requirements laid down in the preceding
         subparagraph mry , if they are designated by a geographical indication
         nevertheless be delivered for direct human consumption .".
2 . The text of the first subparagraph of paragraph 2 is replaced by the
    following :
    "The following imported products may not be subjected to alcoholic
    fermentation , turned into wine or added to wine : fresh grapes , grape must ,
    grape must in fermentation , concentrated grape must , grape must with
    fermentation arrested by the addition of alcohol , grape juice , concentrated
    grape juice .",
3 . The text of paragraph 3 is replaced by the following:
    " 3 » The products specified in the first subparagraph of paragraph 2 shall
          be subject to control with respect to their use . The addition of an
          indicator to the following imported products may be made compulsory :
          grape must , grape must in fermentation, concentrated grape must ,
          grape must with fermentation arrested by the addition of alcohol ,
          grape juice , whether or not concentrated .".
 ---pagebreak---                                     Article 26
The following Article is inserted in Regulation (EEC ) No 8I6/7O:
"Article 28b
1 . For the purpose of marketing within the Community , imported Wine£ of
    superior quality designated by a "geographical indication shall , where
    reciprocal arrangements can be established , be controlled and protected
                                                    •••          * ■   ■' .
    as provided in Article 13 of Regulation (EEC ) No 817/70 in respect of
    quality wines p,s«r«
2 » The provisions of this ' article'aro implemented by agreements with the
    interested third oountries . The Commission is authorised "to open
    negociatioaao to this effect .
    J
3 . Detailed rules for the application of this Article shall be adopted in
    accordance with the procedure laid down in Article 7 °f Regulation No 24«"
                                         1
 ---pagebreak---                                    Årti ole 27
1 « Paragraph 2 of Article 31- of Regulation (EEC ) No 816/7C is deleted.
    Paragraph 3 of that Article becomes paragraph 2 * \         Vi. •>
2 , In Article 33(l)t the reference to "Article 1(2 ) (a)" is replaced by a
    reference to "Article 1(2 ) (b)".
3 » Articles 37 arid 40 are deleted.
 ---pagebreak---                                  Article 28
The following Article is inserted in Regulation (EEC ) No 816/7O :
"Article 33a
1# If the Community wine market experiences or is threatened with serious
    disturbances which may endanger the objectives set out in Article 39 of
    the Treaty and if in this situation the volume of imports from certain
    third countries is appreciably greater than usual , then without prejudice
    to the application of Article 1 4 special distillation nay be carried out
    by the producers' associations only .   Such distillation must have a3 its
    aim the attainment of an income equal to that which would have been
    obtained in the absence of the said imports .
2 * The Council , acting in accordance with the voting procedure laid down in
    Article 43(2 ) of the Treaty on a proposal from the Commission, shall
    decide whether the special distillation is to be carried out and shall
    adopt general rules for the application of this Article#
3 * Detailed rules for the application , of this Article shall be adopted in
    accordance with the procedure laid down in Article 7      Regulation No 24«"
 ---pagebreak---                                   Article 29
The text of Article 39 of Regulation (EEC ) No 816/70 is replaced by the
following:                             .
"Article 39
1 * The detailed provisions required for the application of Annexes I , II and
    Ha, . and in particular provisions as to the wine-growing areas referred
    to in item 10 of Annex II , shall be adopted in accordance with the pro­
    cedure laid down in Article 7 of Regulation No 24*   -
2 » The same procedure shall be used, in order to lay down .methods of analysis
... for determining the composition of the products specified in Article 1
    for the purpose of applying this Regulation and in particular to ensure
    the control of oenological practices ."
 ---pagebreak---                                     Article 30
The text of Article 39a of Regulation '(EEC ) No 816/70 is replaced by the
following:
"1 * Member States shall take all appropriate measure to ensure compliance
     with this Regulation and with Regulation (EEC) No 817/70# They shall
     to that end make arrangements for direct co-operation between i^heir .
     respective competent departments .
2. Without prejudice to the provisions of Regulation (ilEC) No 283/72 ^
     concerning irregularities and the recovery of sums wrongly paid in
     connection with the financing of the common agricultural policy* iand the
     organization of an information system in this field, the departments
     referred to in paragraph 1 shall directly inform the corresponding
     departments of other Member States affeoted.of any infringement ,, dis­
     covered or suspected, of this Regulation or of Regulation (EEC ) No 817/70#
3*   Every Kember State shall inform the Commission of the names and addresses
     of
     - the departments referred to in paragraph 1 ,
     – the laboratories responsible for carrying out official wine analyses .
     The Commission shall forward that information to the other Member States .
4.   The Council , acting in accordance with the voting procedure laid down in
     Article 43(2 ) of the Treaty on a proposal from the Commission, shall
     adopt measures to ensure uniform application of the provisions of this
     Regulation, particularly as regards controls .
5.   Detailed rules for the application of paragraphs 2 , 3 and 4 shall be
     adopted in aooordance with the procedure laid down in Article 7
     Regulation No 24 . 1' .
(l ) OJ No L 36 , 10 February 1972 * p. 1
 ---pagebreak---                                     Article 31
Annex II to Regulation (EEC) No 816/7O is amended as follows :
1 » In items 4 and 9 » the words "is derived exclusively from, vine varieties
    referred to in Article 16" are replaced by the words "is derived exclusively
    from vine varieties referred to in Article 17a"* In .item. 11 the words
    "derived from certain of the vine varieties referred to in Article 16"
    are replaced "by the words "derived exclusively from vine varieties
    referred to in Article 17a"«
2# In item 2 , the words "and which does not correspond to the definition
    in item 5" are added . .
    In item 4| the following fifth indent is added, " – does not correspond
    to the definition in item 6 ".
3 . The text of item 5 is replaced by the following:
    "5 Grape .juice : unfermented by fermentable grape must which has under­
    gone the appropriate treatment , in particular stabilization and clarifi­
    cation or filtration, rendering it fit for consumption as it is and
    having an actual alcoholic strength not exceeding 1° ".
4» The text of item 6 is replaced by the following:
    "6 Concentrated grape .juice : uncaramelized grape juice obtained by partial
    or total dehydration of grape juice carried out by any authorized method
    other than direct heat or a fire in such a way that its density at 20°C
    is not less than 1,240" #
5 « The text of item 10 is replaced by the following:
    " 10 Table wine : wine, other than quality wine p,s.r», which
         – is derived exclusiverly from vine varieties referred to in Article 17aj
         - is produced in the Coomunity :
         - has , following application, if any , of the prooesses specified in
           Article 1°, an actual alcoholic strength of not less than 8,5° and
           a total alcoholic strength of not more than 15® »
         – has , furthermore , a total acidity content expressed as tartaric acid
           of not less than 4»5 g/l »     60 milli equivalents per litre#
         However, in the case of wines from certain wine-growing .areas to be
         determined which have been produced without any enrichment and no
         longer contain any residual sugar, the upper limit for the total alcoholi
         strength may be raised to 17° «"
 ---pagebreak--- Article 31 Page 2
6 . Item 13 , "aerated sparkling wine", and 15 , "aerated semi-sparkling wine",
    are replaced by the following:             " *  ''                 ■ <
    "13 > Aerated wine ï  the product which
          - is obtained, subject to the provisions of Article 27(3 ), from
            table wines
          - is produced in the Comnunity :
          – contains carbon dioxyde , all or part of which may have been added }
            and
          - has an overpressure of not less than 3 atmosphere when kept at a
            temperature of 20d C in closed containers."#
 ---pagebreak---                                     Article 32
Annex III to Regulation (EEC) No 8I6/7O is replaced by the following:
                                "A N N E X  III
                            WINE-GROWING ZONES
1 , Wine-growing zone A I shall comprise :
    – in Luxembourg: the entire wine-growing region ;
    – in Germany: the vineyards of Land Nordheim-Westfalen, Land Hessen(except
                   those of the Hessische Bergstrasse region) and of Land
                   Rheinland-Pfalz ( excluding those of the Regierungsbezirk
                   Rheinhessen-Pfalz);
    – in the United Kingdom: the entire wine-growing region;
      in Belgium : the entire wine-growing region;
    – in the Netherlands : the entire wine-growing region.
    Wine-growing zone A II shall comprise :
    – in Germany : the vineyards of Land Bayern, of the Regierungsbezirke
                    Rheinhessen-Pfalz , Nordwttrttemberg and SMwurtt emberg and
                    of the Hessische Bergstrasse region.        :
2 , Wine-growing zone B shall comprise :
    – in Germany s the vineyards of the Regierungsbezirke Nordbaden and Sttdbaden ;
      in Prance : the vineyards of Alsace. Lorraine. Champagne, Jura, Savoy and
                   the Loire Valley#
3 « Wine-grov.dng zone C I shall comprise :
    - in France : the vineyards of the Centre-West and the Centre, including
                    the northern part of Ardeche , and the South-West , except those
                    coming under wine-growing zone B#
    Wine-growing zone (S II shall comprise :
    – in France : all southern vineyards , except those coming under wine-growing
                   zone C III ;
    - m Italy : all vineyards except those coming under wine-growing zone C III
    Wine-growing zone C III shall comprise :
    – in France : Corsica, certain vi»§yards of the Eastern Pyrenees and of the
                   Var ;
    – in Italy: certain vineyards situated south of Rome and in the islands#"#
 ---pagebreak---                                          Article 33
Regulation ( EEC ) ITo 865/68 is amended as follows :
1 . InArtigle 1 , Common Customs Tariff heading. Ho ex 20.07j .relating to grape
     juice ( including grape must ) not containing spirit , with an added sugar
     content exceeding 30 $ weight , is" deleted.'
2 . In Arrnex I , subheadings ITos 20.07 A I b ) land 20.07 E I b) 1 aa) are
     deleted .
3 . In Annex II , heading IIo 20.0.7 is replaced by the words " ex 20.07 ( excluding
 . grape must ' and . grape juice ).,"
   CCT
   Heading                              Description                  ( 1)      <2
   TTo
   20.07          Fruit juices ,( including grape must ) and
                  vegetable juices , whether or not con­
                  taining added sugar , but .unfermented and
                  not containing spirit :
                  A. Of a specific gravity exceeding 1.33
                      at 15°C :
                      III . ( the former II )
                       IV . ( the former III )
                  B. Of a specific gravity of 1.33 or les&
                      at 15°C :
                      III . Grape , apple and - pear juice-j
                            mixtTires of apple and pear juice :
                            b) Of a value of 18 UA or less
                                per 100 kg net weight :
                                2)
                                3)  ( unchanged)
                             . 4)      ' "          ; / .
                       17 . ( the former II )
 ---pagebreak---                                  Artide 34 '
The text of Article 6(2 ) of Regulation (EEC ) No 817/70 is replaced "by the
following:
"2 . Subject to any derogation granted in accordance with the prooedure
     laid down in Article 7 of Regulation No 24» the alcoholic strength
     provided for in paragraph 1 may not "be less than the following*
     7 0 in zone AI
     8 0 in zone A II
     8f 5 ® in zone B
   . 9 0 in zone CI
     9 *5 3 in sens G II
     10 • in sene C III
The zonos referred to a"bove are those defined as provided in Article 18(3 )
of Regulation (S3C 816/70.".
 ---pagebreak---                                      Article 35
Article 7, of Regulation . (EEC). No 817/70 is amended as follows:
1 * The text of the second and third subparagraphs of paragraph 2 is replaood
    "by the following:           .
     "This increase may not exceed, the limits laid, down in Article l8(l ) of
    Regulation (EEC) NO 816/70. In years when climatic conditions have "been
     excep bionaliy unfavourable, the increase in alcoholic strength provided
     for in the first subparagraph may , in accordance with the procedure laid
    down in Article ^ of Regulation No 24, attain the limits laid down in
    Article 18(2 ) of Regulation (EEC ) ITo 816/7O. Suoh authorization shall
    be independent of any similar authorization for table wines as provided
    for in tlir.t Article ,
    The inorepse provided for in this paragraph may be effected only aocording
     to the. E3thods 'and conditions mentioned in Article 19 of Regulation (EEC )
    No 82.6/YO, excluding the second subparagraph of paragraph 3 and paragraph
    6 ther^o !".
    However, until 30 June 1979 sucrose may be added in aqueous solution in
    wine~{£r07-D.ng zone A I , provided that the volume of the product to which
     the solution is added is not thereby increased by more than 10
2 * The te:;b of paragraph 3 is replaced by the following:
     "No wine with a total alcoholic strength of less than 10° may be considered
     a quality wine p.s.r.
    However, Member States may decide that in wine-growing zones other than C II
     and C III the total alcoholio strength for a quality wine p.s.r. is to be
    not lens than 9° » provided that such wine has undergone none of the processes
     specified in Article 19 (l) of Regulation (EEC) No 816/70."
 ---pagebreak---                                    Article 36
The text of Article 8(2 ) of Regulation (EEC ) No 817/70 is replaced by the
following:                                                     "
"2 . A quality wine p.s.r . may "be sweetened only
     – subject to the authorization of the producer Member State concerned ;
       such authorization may lay down stricter conditions than those con­
       tained in the second subparagraph*
     – within the specified region in whioh it was produced, and
     – by means of grape must , the natural alcoholic strength of which has
       not been increased, or concentrated grape must originating in the
       same specified region as the wine in question.
     The authorization to sweeten a quality wine p.s.r# must specify :
     – a maximum amount , not exceeding 2® , by which the total alcoholic
       strength may be increased,
     – if grape must is used, that the sweetening may not increase the
       volume of the wine in question by more than 10
 ---pagebreak---                                  Article 37
In the first paragraph of Article 9 if Regulation (EEX3) No 8l7/70» the
words "in Articles 7 and- 8" are replaced "by the words "in Articles 7 and 8(l )"«
 ---pagebreak---                                    Article 38
Article 11 of Regulation (EEC) No 817/70 is amended as follows :
1 » In the first subparagraph of paragraph 1 in the German text the expression
    "vorzunehmen" is replaced "by the expression "zu unterwerfen".
                                              é   .A
2 * The text of paragraph 3 is replaced "by the following:     .   >
    "3 * Where this Regulation requires for its operation the use of
         methods of analysis other than those referred to' in Article 39
         o^ Regulation (EEC ) No 8I6/7O, such methods shall be adopted
         in accordance with the procedure laid down in Article 7 of
      . Regulation No 24"»
 ---pagebreak---                                   Article 39
The text of Article 12(3) of Regulation (EEC ) No 817/70 is replaoed by the
following i                                  • -             *
"3« The name of a specified region may "be used to describe a wine onl£ if
     it is a quality wine j?»s«r»
     However, the Council , acting in accordance with the voting procedure
     laid down in Article 43(2 ) of the Treaty on a proposal from the Commission,
     mcy authorize, for a transitional period which expires on 31 August 1980,
     the use subject to conditions to be determined of the names of certain
     specified regions to describe table wines for which . such names were
     traditionally used on 1 June 1970 »"
 ---pagebreak---                                 Article 40
Article 17 of Regulation (ESC ) NO 817/7O is repealed.
 ---pagebreak---                                       Artide 41
 In Annex IV to Regulation (EEC ) No 8I6/70 the table relating to the tariff
 heading 20,07 is replaced by the additional notes and the following table :
                                        Chapter 20
 PREPARATIONS OP VEGETABLES , FRUIT OS OTHER PARTS OP PLANTS
 Notes
  (unchanged)
 The following note is added to the Additional Notes
"4, For the purposes of heading No 20.07 :
     A» Grape must ( subheading Nos 20.07 B II) shall be taken to mean the liquid
         product obtained naturally or by physical processes from fresh grapes
         and having an actual alcoholic strength not exceeding 1° ;
     B* Concentrated grape must ( subheadings Nos 20.07 A I , 20 ¥0f B i ) shall be
       ' taken to mean uncaramelized grape must obtained by partial dehydration
         of grape must and of a density at 20®C of not less than 1.240 ;
     C. Grape juice ( subheadings Nos 20.07 A II , 20.07 B III a) 1 , 20.07 B III b) 1
         shall be taken to mean unferrnented but fermentable grape must which has
       ! undergone the appropriate treatment , in particular clarification or
         filtration, rendering it fit for consiciptlai as it is and having an actual
         alcoholic strength not exceeding 1° :
     Headmg                       Description                         Rate of dut.v
     number                                                   Autonomous Conventional
                                                                 56            *
                                                              or Levy (L)
         1                            2                             3             4
    20.07               Fruit juices ( including grape must )
                        and vegetable juices , whether or
                        not containing added sugar, but
                        unferrnented and not containing
                        spirit*
                        A. Of a specific gravity exceeding
                           1.33 at 15°C :
                           I. Concentrated grape must              50 ( a)
 ( a) In certain conditions a countervailing tax is provided for in respect
      of certain products in addition to the customs duty .
 ---pagebreak---   Article 41 » page 2
      Headmg .            ..        , .     Description                   Paté of duty
      number                                                         Autonomous   Conventi
                                                                          %            1o
                                                                     or Levy
       1                                       2                       2               4
    20.07             II . Grape juice :
                             a) Of a value exceeding 22 UA
                                  per 100 kg net weight ••••••••       50
                             b) Of a value not exceeding 22 UA
                                  per 100 kg net weight :
                                  1 , with an added sugar content
                                        exceeding 30 % "by weight      50
                                                                      (+L)            mm
                                  2 » other •••••••••••«..»••••        50
                     III . (former II )
                      IV. (former III )
                 B. Of a specific gravity of 1.33 or less
                     at 15°C :
                       I. Concentrât ed grape nust                     28(a)         28
                      lié Grape nnxst                                  28 (a)        28
                     III . Grape , apple and pear juice ?
                             mixtures of apple and piear juice :
                             a) Of a value exceeding 18 UA
                                  per 100 kg net weight :
                                  1 . Grape juice
                                       aa) With an added sugar content
                                            exceeding 30 fo by weight 28             28
                                       bb) Other                       28            ("b)
                                  2 . Apple and pear juice :
                                        aa) Containing added sugar     25            24
                                                                   -                + ads
                                      bb) Other                        25            25
                                  3 . Mixtures of apple and
                                        pear juice                     25            –
                             b ) Of a value of 18 UA or less
                                  per 100 kg net weight :
                                  1 » Grape juice :
                   , -          -       aa) With an added sugar
                                            content exceeding ,30 %
                                            by weight                  28            28
                                                                      +( L)        + ads
( a) In certain conditions a countervailing tax is provided for in respect of
     certain products in addition to the customs duty .
(b) See Annex.                                                            /
 ---pagebreak--- Article 41 » pa/re 3
      Heading                           Description                   Rate of Duty
      number
                                                           Autonomous       Conventions
                                                              1o                %
                        ___           ■                    or Levy
        1               -                  2                  3                 4
20.07                     bb ) Other •••••••••••••••••••     23                 a
                     2 . Apple juice s
                          aa) With an added sugar content
                               exceeding 30 % by weight      25                24
                                                           + (L              + ads
                          bb ) With an added sugar content
                               of 30 % or less by weight   * 25                24
                                                                             + ads
                          cc ) Not containing added sugar    25                25
                     3 . Pear juice :
                          aa) With an added sugar content "
                               exceeding 30 % by weight •    25                24
                                                           + a               + ads
                          bb) With an added sugar content
                               of 30 % or less by weight     25                24
                                                                             + ads
                          cc ) Not containing added sugar    25                25
                     4 . Mixtures of apple and pear
                          juice :
                          aa) With an added sugar content
                               exceeding 30 % by weight      25
                                                           +  L
                          bb ) Other                         25
                 IV. ( former II )
( a) In certain conditions a countervailing tax is provided for in respect
     of certain products in addition to the customs duty .
 ---pagebreak--- Article 41 page 4
2 ) The following table replaces the ohe relating to the position 20 , 0? of t^o
    "Common customs Tariff" of Regulation («SC) 11° 950/63 of the Council , of
     28 Jur*e 1963, on the Common customs Tariff^          as last amended by Regulation
     (EEC) 1T°            ^ :
                                                                               i Rate of Duty
                                                                               1             «•
   ïïeading                               Description                            Conventional
   S0                                                                          1       4
                                                                                       r
        :    L
   20.07          Fruit juices ( including grape must ) and vegetable
                  juices , whether or not containing added sugar , but
                  unfermented and not containing spirit $
                  B. of a specific gravity of 1,33 at 15°C :
                     II . Grape musts              ..       .                i      28 ( a)
                i    III • a)  1. bb ) Grape juice of a value exceeding      |
                                       18 UA per 100 kg net weight ,
                                       other                    .            I      28 ( a)
                     III . b ) 1. bb ) Grape juice of a value of 18 UA
                                       or less per 100 kg net weight , ,
                                       other                                        28 ( a )
              1
                      IV . a ) 1. Orange juice of a value exceeding
                                  30 UA per 100 kg net weight .........             19 a)
                      IV . a)  2. Grapefruit juice of a value exceeding
                                  30 UA per 100 kg net weight                       15 (a
                      IV . b ) 1. bb ) Orange juice of a value of 30 UA
                                       or less per 100 kg net t^eight ,
                                       other                         . . . .        19 ( a )
                      IV . b ) 2. bb ) Grapefruit juice of a value of
                                       30 UA or less per 100 kg net
                                       weight , other                               15 ( a)
( a) In certain conditions a counter-vailing tax is provided for in
      addition to the custom duty
( 1 ) OJ no. C 172 of 22.7.1968 , p. 1
(2)
 ---pagebreak---                                   Article 42
This regulation shall enter into force on the sixtieth day following the
day of its publication in "the Official Journal of the European Communities .
This Regulation shall apply from the beginning of the wine-growing year
1975/76 , with the exception of .Articles 1 , 10 to 13 f 33 and 41 which shall
apply from 1 January 1975 »
This Regulation shall be binding in its entirety arid directly applicable
in all Member States .
                                                For the Council
Done at Brussels ,                              The Président
 ---pagebreak---                                  FI1TAÏTCIAL HOTE
This proposal for a Regulation amends several provisions , relating in par­
ticular to intervention measures , of the basic Regulation Ho 816/70 con­
cerning wine . The trend in expenditure since 1970 shows that , of the large
variations noted , the main factor was the size of the harvest since the
intervention measures remained pratically unchanged during that period .
Even though provision has been made for a new withdrawal mechanism - distil
lation at the "beginning of the wine-growing year - the operation of the
Regulation , as now amended, is of such a nature to check increases in EAGFF
e::penditutre in this sector , for the following reasons :
- distillation at the beginning of the wine-growing year , as provided for
  in Articles 2 and ^ of this proposal , would be carried out at withdrawal
  price levels ( 60 f, of guide prices ), which would involve only limited
  expenditure , which would in all cases be less than that incurred until
  now where distillation has been carried out at the end of the itfine-growir
  year at price levels approximating to or even eqr.al to the activating pri
- this type of distillation would be less expensive for the EAGGF and , by
  being carried out speedily and judiciously , could strengthen the market
  during it 's most susceptible phase , and reduce the burden of short-term
  storage aids which when applied automatically ha^e only a very limited
  impact on the stabilisation of the market ,
- furthermore , to enable the new arrangements to have true economic
  significance , the purchase price of any wine delivered for " exceptional"
  distillation ( Article 8 ) would be limited to 70 c'-> of the guide price and
  assistance from the EAGGF would be reduced proportionately .
 ---pagebreak--- - m the event oi an exceptionally abundant harvest very high yields could
  be penalized and supply reduced by fixing a supplementary rate for the
  deliveries of by-products of wine-making ( Article 21 ).
- At present Community aid for such measures is nil and the proposed measure:
  could usefully complete the wine distillation measures provided for withir.
  the framework cf this draft regulation .
The theoretical calculation example , which follows , shows that the totality
of those proposed provisions , and in particular the distillation with/iravaL
price levels , will result in a noticeable reduction in expenditure in the
event of an exceptionally abundant harvest . On the other hand , in cases
where the harvest levels would not require massive distillation the economic-
will be more modest . Thus , in conclusion , from the financial point of view ,
the proposed modifications will notably have the effect of reducing great
increases in expenditure in the event of an exceptionally abundant harvest .
It is true , as stressed before , that the trend in intervention expenditure
depends primarily on the state of equilibrium of the market . Leaving aside
the inevitable variations in production from one year to the next , there
is reason to fear that the current grovrth in production potential will not
be counter-balanced in due time by an equivalent growth in demand . For
this reason this proposal includes a .number of measiires restricting pro­
duction, both quantitatively and qualitatively .
They are in particular, the introduction of a plantation system ( Article 16 }
the limitation of aids to replantation ( Article 14), the progressive
grubbing-up of wine varieties not included in the classification ( Articles 1
and 17 ) and measures promoting a general improvement in the quality of the
products .
 ---pagebreak--- In conclusion , therefore , this draft regulation will lead to a reduction
of intervention expenditure notably in the event of an exceptionally
abundant harvest . As far as the use of Budget appropriations for 1974
and 1975 s.re concerned , the effect will be rather modest and difficult
to quantify . On the one hand there are the time lags for the adoption
of the draft regulation , and , on the other hand , for 1975 one must take
into consideration the quantities of wine carried over from the preceding
wine-growing year .                                                     ••
Wine sector ( Chapter 69 of the Budget of the European Communities ) -
Expenditure :                                 Appropriations ( rudgot 1974» dr\-'
1970        1971          1972   1     ' 1973        1974         ' 1975
16 m u,a .  28.2 m u,a .  55-4 m u.a .   8.7 m u.a . 70.1 m u.a .   93.2 m u.a .
As far as the multi-annual estimates are concerned ( 1976 : 65 m u.a . ,
1977 50 m u.a .), it is to be noted that the most up-to-date information
about the growth of production potential indicate the need to increase
the- amounts retained for 1976 and 1977 * However , in the event of the
adoption of the proposed measures ( especially the distillation withdrawal
price levels ) there could be certain resulting economies for the years
in question . Thus , a modification of the amounts retained for -1976 and
1977 does not seem adviseable at the moment taking account of these two
elements as well as the degree of uncertainty surrounding these estimates .
 ---pagebreak---                                         - fi  -
Theoretical erarnple_ of ^rarious measures Tvhinh may "be taken in respect of_ the
wine market
Working hypothesis
An exceptionally abundant harvest leaving the market with a quantity of 16
million hectolitres in excess of internal and external requirements ( 10 f )
after stocks have been replenished .
Wine prices fixed for the 1974/73 wine-growing year and aids at present in
force .
A « MGc           sible undor the présent rujLes
                                      Unit cost in          Million       Total
                                      m u.a . per 1          hl            cost
                                      rn hl             ( hypothetical )  m u.a .
    1 . Short-term storage contracts         0,6              30            18
    2 . Long-term storage contracts          2,2                8           18
    3 . Distillation at the
        activating price                 6 to 7                 8        48 to 56
    4 . Aid for restorage                    0,9u               4             4
                                                                         88 to 96
B. Measurcs             under the proposed rules
    0 . Distillation at the start of
        the wine-growing year            2 to 3                 6        12 to 18
    1 . Short-term storage                   0,6              15              9
    2 . Long-term storage                    2,2              10            22
    3 . Distillation at 70     of the
        guide pries                      3 to 4                 3         9 to 12
    4. Aid for rest orage                    0,85               5             5
                                                                         57 to 66
An analogous calculation for a quantity of 8 m hi above total requirements
shows that :
- the expenditure would be between 44 - 48 m u.a . for measures possible under
   the present rules ,
– the expenditure would be between 29 – 36 m u.a. for the measures possible
   under the proposed modifications .