CELEX: 51974PC0784
Language: en
Date: 1974-06-05
Title: PROPOSAL FOR A REGULATION (EEC) OF THE COUNCIL on the distillation of the by-products of winemaking (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (74) 784
Vol. 1974/0119
 ---pagebreak--- Disclaimer
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 ---pagebreak--- COMMISSION OF THE J3UKOÏEAN COMMUNITIES
                                                          COM(74)784 final
                                                          Brussels , 5 June 1974
                                 PROPOSAL FOR A
                        REGULATION (EEC ) OF THE COUNCIL
            on "the distillation of the "by-products of winemaking
                 ( submitted to the Council "by the Commission)
  COM(74) 784 final
 ---pagebreak---                               Incidence financière
          Le présent règlement prévoit , que dans le cas où les organismes
• d' intervention chargés de la commercialisation de l' alcool de la distillation
  des sous-produits de la vinification sont obligés de le revendre à un prix
  inférieur au prix d' achat , il est nécessaire de prendre en charge la différence
  entre le prix d' achat et le prix de vente dans le cadre du montant maximum ,
  par le Fonds européen d' orientation et de garantie agricole , section garantie ,
  sans que cette participation exède cette différence .
         Le montant maximum de la participation du FEOGA sera fixé forfaitairement
  et sera calculé sur la "base de la différence entre le prix d' achat et le
 prix de vente .
                                                             pour la campagne 1974/75
         EU égard à la situation actuelle de prix ce montant est estimé o/ comme
 le montant qui était fixé pour la campagne 1973/74 *
De ce fait on n' attend pas de dépenses pour l' exercice 1974 » L' article 692 , poote
 6920 , du "budget des Communautés européennes en tient compte .
                Budget                  Crédits                  Avances
                1973                  3.950.000                2.642.000
                1974                      P •!&#
 ---pagebreak---                              EXPLANATORY MEMORANDUM
        Council Regulation (EEC ) No 816/701 of 28 April 1970 laying down
additional provisions for the common organization of the market in wine
includes various provisions aimed at improving the quality of wines . One
of the most important of these is the one forbidding the ovei^-pressing of
maros and the pressing of lees . To achieve this , Article 24 of this Regula­
tion obliges producers to distil the by-products of winemaking.
        It is the task of the Council to fix the price to be paid by the inter­
vention agencies to the producers for the alcohol produced in this operation .
This price must guarantee the producer a return equal to that which he would
normally have obtained if there were no obligation to distil .     But the
resulting buying-in price may be too high to allow the existing intervention
agencies to market this alcohol without making a loss .   In principle , then ,
a contribution from the Guarantee Section of the European Agricultural
Guidance and Guarantee Fund , provided for in Article 24 , is necessary .
        Such a contribution from the Fund is all the more justified in that
this obligation reduces the quantity of wine available in the Community and
therefore diminishes the risk of intervention .   An estimate of the resulting
cost taking into account the present situation of the alcohol market is
annexed to this Draft Regulation .
        The aim of this Regulation is to lay down the general rules connected
with this obligation and to provide for derogations , be it for certain
categories of producers , or for producers of oenocyanine , or f° r wine-growing
regions where there are no distilleries or where the by-products of winemaking
have a very low alcohol content .
        The draft follows in principle the rules laid down in Regulation (ECC )
No 1171/71 which expires on 31 August 1974 * Experience has shown that it is
necessary to lay down more specific rules as regards the financing by the EAGGF .
That is why the draft provides only for the financing of the actual losses
made by the intervention agencies , up to a maximum amount to be laid down by
the Council .
  OJ No L 99 , 5 Fay 1970 , p.l
 ---pagebreak---                          PROPOSE . 'V03. A
                REGULATION (EEC ) ftp TIF COUNCIL            .
            on the distillation of the by-products of winemaking
THE COUNCIL OF THE EUROPEAN COIITUIIITIEfS ,
Having regard to the Treaty establj ching the European Economic Community,
Having regard to Council Regulation (FTJC ) No 816/70       of 28 April 1970
laying down additional provisions for the common organisation of the market
in wine, as last amended by Regulation (EEC) No 2592/73^, and in particular
Article 24 (2 ) thereof ;
Having regard to the proposal from the Commission ,
Whereas the fixing of the price to be paid for alcohol delivered to intervention
agencies for the distillation of tha by-products of winemaking and the maximum
amount of the contribution to be male by the Guarantee Section of the European
Agricultural Guidance and Guarantee F^nd to the costs borne by those agencies
are both closely linked to the fixing of the guide price ; whereas there should
therefore be the same interval and -time limit for both these operations ;
Whereas the intervention agencies designated by Member States must buy in
alcohol delivered to them for the distillation of the by-products of winemaking
at a price at which the producer subject to the obligation to distil is not
placed at a disadvantage in relation ,to the producer who is not subject to that
                  ?
obligation ;
Whereas , in the absence of any organised market in ethyl alcohol at Community
level , the intervention agencies responsible ., for marketing that alcohol risk
having to resell it at a price lower than the buying-in price ; whereas it is
necessary to provide that , in such cases , the difference between the buying-in
price and the selling price of that alcohol can be met , within the maximum
amount , by the Gurantee Section of the European Agricultural Guidance and
Guarantee Fund , provided that the contribution does not exceed the difference ;
                       .                                               • • •/ • • •
( 1 ) "O.J. No L 99 » 5 May 1970 , p. 1 ;
(2 ) O.J. No L269 , 26 September 1973» P » 1 *
 ---pagebreak--- Whereas the third, subparagraph of Article 24 ( 2 ) of Regulation (EEC ) NO 816/70
provides that the obligation to distil may "be discharged by the production of
potable spirits ; whereas the first subparagraph of Article 24 ( 2 ) of that
Regulation , moreover, permits the distillation of wine in the absence of grape
marc or wine lees ; whereas , under these conditions , it is logical to allow the
production of a potableospirit from wine as well as a potable spirit from
grape marc ;
Whereas the production of potable spirits must release the producer from the
obligation to deliver alcohol only in respect of the quantity of alcohol con­
tained in the potable spirit produced ;
Whereas , in order to prevent potable spirits of mediocre quality from being
produced , it is necessary , in the absence of any Community criteria on the
subject , to provide that the potable spirits produced should conform to
national provisions in force ; whereas , to ensure that these are observed ,
prevision should be made for inspection ;
Whereas the first subparagraph of Article 24 ( 3 ) of Regulation (EEC ) No 816/70
provides that certain production regions may be exempted from the obligation
to distil the by-products of winemaking ; whereas in Germany and Luxembourg
grape marc3 and wine lees generally contain little alcohol and the oosts
involved in extracting it would be too high ; under these conditions , provision
should be mc . de for producers in these regions to be exempted from the obligation
to distil their grape marcs and wine lees , while remaining subject neverthe­
less to the provisions of Article 24 ( l ) of that Regulation ;
Whereas the obligation under the first subparagraph of Article 24 ( 2 ) is a
heavy one for the independent producer who makes only a small quantity of wine ;
whereas such obligation would involve him in transport costs for his grape
marcs and wine lees out of all proportion to the return which he could expect
from the alcohol which might be extracted ; whereas such producers should there­
fore also be exempted from the obligation to distil but remain subject , never­
theless , to the provisions of Article 24 ( l ) of that Regulation ; whereas , how­
ever, some of these small-scale producers are already in the habit of distilling
their grape marcs and wine lees and whereas they should be allowed to continue
in this practice ; whereas they should therefore be allowed to forego exemption
and become thereby comparable in all respects to producers who are not exempt ;
wheraatj in order to prevent deliveries of alcohol to the intervention agencies
from beroni ig too irregular , an independent producer should , once he has fore­
gone exemption , undertake to continue to do so , for a period of at least three
years ;                                                          .../•••
 ---pagebreak---  Vhcreas produoers who deliver their grape marcs for the manufacture of oenocya-
  nine generally supply unfermented grape marcs ; whereas the processes to which
  these are subjected in order to extract the oenocyanine render them thereafter
 unsuitable for fermentation and distillation ; whereas such producer? chculr1 tr>
  exempt pro rata for their production of grape marcs ; whereas an c::~ct c-1 ul
  tion is not possible ; whereas , therefore , provision should be made for a fixed
  reduction in the general rate ;
 Whereas , in accordance with Article 10 (l ) of Council Regulation (EEC) No 817/70(l )
  of 28 April 1970 laying down special provisions for quality wines produced in
  specified regions , as last amended by Regulation No 2680/72 (2 ), a yield per
  hectare is fixed for each of the quality wines p.s.r. which facilitates obser­
  vance of the prohibition against the pressing of wine lees and over-pressing
  of grapes ; whereas , moreover, the marcs and lees of certain quality wines
  p.s.r. contain little alcohol and whereas it is useful to be able to apply a
  reduced rate to those products ;
 Whereas the obligation under the first subparagraph of Article 24 (2 ) is a heavy
  one for producers situated in small islands who do not have adequate transport
  links at their disposal ; whereas such obligation would involve them in transport •
  costs for products subject to the obligation to distil which would exceed the
  return on the aicohol obtained ; whereas , provision should therefore be made
  for producers situated in small islands to be exempted from the obligation to
  distil , while nevertheless remaining subject to the prohibitions contained in
  Article 24 ( l ) of that Regulation ;
 Whereas the provisions concerning the financing of intervention laid down in
  Council Regulation (EEC ) No 729/70 ( 3) of 21 April 1970 on the financing of
  the common agricultural policy should be extended to apply also to this measure ;
 Whereas the period of application of this Regulation should be limited so that
  future developments in this field may be taken into account ;
 HAS : AD0PTED THIS REGULATION ;
( 1 ) O.J. No L 99 , 5 May 1970 . p. 1 ;
(2 ) O.J. No L 289 , 27 December 1972 , p . 1 ;
( 3) O.J. No L 94, 28 April 1970, p. 13.
 ---pagebreak---                                           - 4 -
                                        Article 1
1 . The price to "be paid to producers for alcohol delivered to intervention
    agencies and the maximum amount of the contribution by the Guarantee Section
    of the European Agricultural Guidance and Guarantee Fund towards the costs
    devolving on these agencies shall be fixed annually before 1 August for the
    ?'..Llc–   vine-growing year .
2 . Tl.e price mentioned in the previous paragraph is hereinafter called the
    "buying-in price".
                                         Article 2
1 . The buying-in price shall be fixed at a level at which the producer distil­
    ling his by-products of winemaking, or having them distilled , can be assured
    of a return oomparable to that which he would have had if he had not been
    subject to the obligation to distil .
2 . The buying-in price shall be fixed per hectolitre of pure alcohol . It shall
    apply to goods , free-at-d.istillery, loaded into a means of transport chosen
    by the intervention agency .
    The actual alcoholic strength of the products obtained from the distillation
    of the by-products of winemaking and delivered to the intervention agency
    may not be less than 52 ° .
                                         Article 3
    The maximum amount of contribution from the Guarantee Section of the European
    Agricultural Guidance and Guarantee Fund shall be fixed per hi of pure alcohol .
                                         Article 4
1 . Contribution from the Guarantee Section of the European Agricultural Guidance
    and Guarantee Fund shall be paid , up to the maximum amount laid down in
    accordance with Article 1 , only where , during a given budgetary year, the
    overall expenditure of 'an intervention agency for the buying-in of alcohol is
    greater than the income from such sales .
2 . In the event that the difference referred to in paragraph 1 is less than the
    maximum amount multiplied by the quantities sold, the contribution of the
    EAGGF shall be equal to that difference .
                                          Article 5
1 . Producers may , in partial or total discharge of the obligation laid down in
    the first subparagraph of Article 24 (2 ) of Regulation (EEC ) NO 816/70 produce
    or have produced potable spirits of grape marcs or potable spirits of wine
    from their own products .
2 . The quantity of alcohol , expressed as pure alcohol , contained in the potable
    spirits shall be deducted from the quantity of alcohol which must be delivered
    pursuant to the first subparagraph of Article 24 (2 ) of Regulation (EEC ) No 8I6/7O .
3 . The production of potable spirits may have the effect mentioned in paragraph 1
    only if :
 ---pagebreak---                                     - 5 -
a) the quality of the spirit obtained conforms to national provisions on
    the subject ; the producer or distiller shall supply proof thereof to
    competent agency ;
b) it is carried out under the supervision of the canpetent authority ; the
    producer and the distiller are required to permit that supervision at
    any moment during distillation.
                                   Article 6
Producers whose wineyards are situated in wine-growing zone A or in the German
part of wine-growing zone B shall not be subject to the obligation laid down
in the first subparagraph of Article 24 (2 ) of Regulation (EEC ) No 816/70 .
                                   Article 7
1 . Independent producers who , during a wine-growing year, do not make more
    than 50 hectolitres of wine , shall not be subject to the obligation laid
    down in the first subparagraph of Article 24 ( 2 ) of Regulation (EEC ) No
    816/70 .
    However, such producers may forego this exemption .   Such action shall bind
    them for the period from the date on which such action is taken until the
    validity of this Regulation expires .
2 . Producers who deliver their grape marcs for the manufacture of oenocyanine';.
    may be subject to a reduced rate .
3 . Producers of certain quality wines p.s.r. may be subject to reduced rates
    in respect of that part of their harvest which can qualify for such des­
    cription .
                                    Article 8
Producers situated in the Italian islands except Sicily, Sardinia and Elba,
shall not be subject to the obligation laid down in the first subparagraph
of Article 24 (2 ) of Regulation (EEC ) No 8I6/7O.
 ---pagebreak---                                     - 6 -
                                   Article 9
Articles 4 and 5 of Regulation ( EEC ) No 729/70 shall apply mutatis mutandis
to contribution from the Guarantee Section of the European Agricultural
Guidance and Guarantee Fund , provided for in this Regulation .
                                   Article 10
The provisions of this Regulation shall apply to the 1974/1975 » 1975/76
and 1976/1977 wine-growing years .
                                   Article 11
This Regulation shall enter into force on the third day following its publi­
cation in the Official Journal of the European Communities .
This Regulation shall be binding in its entirety and directly applicable in
all Member States .
Done at Brussels ,                                For the Council
                                                  The Président