CELEX: 51980PC0232
Language: en
Date: 1980-05-08
Title: PROPOSAL FOR A COUNCIL REGULATION (EEC) LAYING DOWN GENERAL RULES ON CERTAIN DISTILLATION OPERATIONS FOR WINES AND THE BY-PRODUCTS OF WINEMAKING (presented by the Commission to the Council)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (80) 232
Vol. 1980/0073
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                            COM(80)232 final ,
                                            Brussels . 8th May 1980
                 PROPOSAL FOR A COUNCIL REGULATION      ( EEC )
    LAYING DOWN GENERAL RULES ON CERTAIN- -DISTILLATION OPERATIONS
                FOR WINES AND THE BY-PRODUCTS OF WINEMAKING
                                     V. .
                                          V
               (presented by the "Commission to the Council )
                                                 ,>y ^    "
                                ri           J  ^
                                 V'' :.
                                                     .ν
   COM ( 80 ) 232 final
 ---pagebreak---                            EXPLANATORY MEMORANDUM
Council Regulation (EEC ) NO 453/80 , amending Regulation (EEC ) NO 337/79 -
on the common organization of the market in wine , was adopted as part of
the package of wine measures on 18 February 1980 and had the effect of
amending some Articles of the basic Regulation concerning certain distil­
lation operations * The relevant general rules should therefore also be
amended *
It has still not been possible to reach agreement within the Council on
                                2
the Commission 's 1977 proposal   for improving the general rules for distil­
ling wines and replacing Regulation (EEC ) NO 1931/76 ( subsequently conso­
lidated as Regulation (EEC ) No 343/79 )* Certain amendments of the basic
Regulation were required to overcome the main difficulties encountered ,
and these amendments have now been introduced .
      ν                                  ·                 -                 ·■
Then , more recently, at the time when the Regulation introducing exceptional
distillation operations^ was adopted, the Special Committee 'on Agriculture
asked the Working Group on Wine , to recommence study of the proposal 'for a
regulation to amend Regulation (EEC ) NO 1931/76 , possibly on the basis of
new proposals from the Commission.
The Commission is accordingly putting forward a new proposal for a regulation
laying down general rules on distillation operations for wines and the by­
products of winemaking to replace the existing Regulations Nos 343/79 and
349/79 * At the same time it is withdrawing the 1977 proposal which has be–
                 2
come superfluous *
The adoptation of this proposal for a regulation does not involve any finan­
cial consequences for the Community budget *
                   ;                                                    ·Α
pOJ No L 57 , 29.2*1980 , p. 32
 COM(77 ) 667 final of 13 Deoember 1977
3R* 564/8O of 3*3.1980 -.0J No L 62 , 7*3.1980 , p* 1
 ---pagebreak---                                  PROPOSAL FOR A
                            COUNCIL REGULATION (EEC )
laying down general rules on certain distillation operations for wines
                    and the by-products of winemaking
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,        . .  •
Having regard to the Treaty establishing the European Eoonomic Community .
                         /
Having regard to Council Regulation (EEC ) No 337/79 of 5 February 1979 on
the common organization of the market in wine*'', as last amended by Regula­
tion (EEC) No 459/802 , and in particular Articles 11(3), 12(3), 13(3 ),
 39(2 ) and ( 6 ), 40(A ) and 41(3 ) thereof ,
Having regard to the proposal from the Commission,
Whereas Council Regulation (EEC ) No 343/79 of 5 February 1979 laying down
general rules governing certain distillation operations in the wine sector"^,
as amended by Regulation (EEC) NO 1709/79^,and Council Regulation (EEC )
No 349/79 of 5 February 1979 on the distillation of the by–products of
winemaking^, laid down the conditions under which the distillation operations
referred to in Artioles 11 , 12 , 13 , 39 t 40 and 41 of Regulation (EEC ) No
337/79 must take place ; whereas as a result of the amendments to the latter
Regulation which have been made since the Regulations referred to above were
adopted and of the . experi ence gained , it has become apparent that the said
general rules should be amended ; whereas the opportunity should be taken to
bring together the matters governed by Regulations ( EEC ) Nos 343 / 79 and
349 / 79 within a single text ;
pOJ No L 54, 5 . 3.1979 , P. 1
*OJ No L 57 , 29. 2.1980 , p. 32
•JOJ No L ' 54, 5. 3.1979 , P. 64
Joj No L 198, 4. 8.1979 , P. 3
^OJ No L 54, 5. 3.1979 , p. 84            •
 ---pagebreak--- Whereas the products which may "be obtained by means of the various distil­
lation operations should be speci fied ; whereas , however , in order to avoid
any serious disturbance on the market for certain of the said products , provi­
sion should be made for prohibiting the production of such products by the
said distillation operations , particularly as regards the disti LLation of
wine suitable for producing certain potable spirits of designated origin;
Whereas provision should be made for producers who intend to deliver wine
for distillation under the provisions of Articles 11 , 12 and 13 of Regu­
lation (EEC ) No 337/79 "to conclude contracts with distillers subject to
approval by the intervention agency, in order to facilitate supervision
of the operations and of compliance with       -the obligations of both parties }
whereas this system would have the added advantage of making it easier to
monitor the quantitative effects of distillation on the market ; whereas ,
where a producer intends to undertake distillation in his own plant or to
have distillation carried out on his behalf , the object of the contract
                                         \
may also be attained by means of a declaration which replaces the contract
and enables comparable supervision to be exero.ined ;
Whereas intervention agencies require powers of supervision and verification
if they are to approve contracts , to supervise distillation operations , to
                                                                          è
calculate the aid and pay it to the distiller| whereas to this end, provi­
sion must be made for the parties oonoerned to communicate certain infor­
mation to the intervention agency;
      ■  -V '             ' .              fl i M
Whereas provision should be made for the minimum prioe guaranteed to the
produoer to be paid to him within time limits comparable to those habitual
in respect of commercial sales ;
                                /
Whereas the prices for wines to be distilled, provided for in Articles 11 ,
12 and 13 of Regulation (EEC ) NO 337/79 » do not normally allow the products
obtained by distillation to be sold on the market ; whereas it is therefore
necessary to determine the criteria for fixing the amount of aid neoessary
to make it possible to dispose of the said products ;
                                                                         •/
 ---pagebreak---                                       - 3 -
 Whereas it is necessary "to allow a tolerance on the quantity of wine speci­
 fied in the delivery contracts ; whereas experience shows that the said tole­
 rance should generally be fixed at 5      "but that the intervention agencies
 should be empowered to grant exceptions if circumstances so justify :
                          / «
 Whereas it is necessary to determine the conditions under which producers
 must fulfil the obligation laid down in Articles 39(2 ), 40 and- 4l(l ) of
 Regulation (EEC ) NO 337/79 aM to determine the obligations of distillers ;
 Whereas it is necessary to set out the intervention agencies * obligations
 in respect of the buying-in of the products obtained by compulsory distil­
 lation ;                                                         \
 Whereas , the price to be paid to the producers for the alcohol contained in
the products subjected to compulsory distillation must be lower , account
being taken of the value of the by-products , ' than the price applicable in
respect of the distillation operations provided for in Articles 40 and 41
of Regulation ( EEC ) No 337/ 79 ;
 Whereas the fixing of a price to be paid by the distiller to the producer
 for the products subjected to compulsory disti llation makes it necessary that
 the intervention agencies buy in , the vinous' alcohol resulting from this
 distillation at a price which takes into account the costs of processing
 the products in question ; whereas, for products distilled under the distil­
 lation arrangements referred to in Article 39 of Regulation (EEC ) No
 337/79 t this price can be differentiated according to whether marc , lees
 or wine is distilled in order to take into account , where necessary, the
 differing costs and losses ;                  ,                            s
 Whereas in certain regions of the Community the relation between quantities
 of marc and those of wine and lees is such that the average distillation
 costs differ from those used to calculate the fixed price ; whereas this
 situation makes or is likely to make it economically impossible in certain
 of these regions to achieve the objeotive of the obligation to distil the
by-products of wxiemaking:
 ---pagebreak---                                          4
 Whereas it is therefore essential to make provision for a
 fixed price "be established at the same time as prices differentiated accor­
 ding to the< origin of the alcohol t while leaving it to the Member States to
 decide whether to apply the latter in regions where application of the
fioed price leads to the difficulties referred to above }
Whereas recourse to this option must not increase the expenditure incurred
"by the intervention agency and, hence } "by the European Agricultural Guidance
 and Guarantee Fund ; whereas it is therefore necessary to correlate the prices
 differentiated according to the origin of the aloohol and the fixed price }
whereas this correlation must be such that the weighted average of the
prices differentiated according to the origin of the alcohol ig not more than
the fixed price ;
                  '                              >                           •     .
                                                         ■      s         v
Whereas , in the absence of an organized Community market in ethyl alcohol ,
the intervention agencies responsible for marketing such alcohol may be
obliged to resell it at a price lower them the buying-in prioe ; whereas , i
provision should be made in such an event for the' difference between the
buying-in price and the selling price for     that alcoLol to be borne , subject to
a maximum amount t by the Guarantee Section of the European Agricultural Gui­
dance and Guarantee Fund , provided that the contribution does not exceed the
difference }
Whereas the buying-in price for alcohol from the different types of distil­
lation differs and, accordingly, the losses Liable -to be borne by the inter­
vention agenoies also differ according to the type of distillation ; whereas
provision should therefore be made for the intervention agencies'accounts
to show clearly the quantities and prices of "the products bought–in and
sold in respect of each type of compulsory distillation }     ,
Whereas the fixing of the buying-in price for, products subjected to the
distillation referred to in Article 39(2 ) of ^Regulation (EEC ) NO 337/79 and
for alcohol , and the maximum amount of the cpntribution from the Guarantee '
Section of the European Agricultural Guidance and Guarantee Fund towards the
expenditure incurred by the intervention agencies is closely linked to the       ,
fixing of the guide price } whereas the same timetable and the same deadlines
should therefore be adopted for such operations }
                                                                   •/•
 ---pagebreak---                                        - 5 –
 Whereas the provisions concerning the financing of intervention laid down
 in Council Regulation (EEC ) NO 729/70 of 21 April 1970 on the financing
 of the common agricultural policy**, as last amended "by Regulation (ESC )
 No 929/79^» must "be extended to cover the distillation referred to in Arti­
 cles 39 » 40 and 41 of Regulation (EEC ) No 337/79 ?
Whereas , in accordance with the first indent of Article 39(4 ) of Regulation
 (EEC ) NO 337/79 , the producer may free himself of the obligation to distil
"by producing potable spirits ; whereas paragraph 2 of the same Article re­
quires the distillation of wine in the absence of grape marc or wine lees ;
whereas , in these circumstances     it is logical to permit , where this option
 is exercised , the production of eith'er potable wine spirits or other potable
 spirits ; whereas , however , it should be ensured that potable wine spirits
are not produced by using the by–products of winemaking for the purposes ,
prohibited in Article 39(l ) of Regulation (EEC ) No 337/79 }
Whereas , where a rate additional to that laid down in Article 39 of Re gulac­
tion (EEC ) No 337/79 is fixed, it is logical to allow producers subject
to the requirement in Article 40 of the said Regulation to fulfil this
requirement by producing potable wine spirits ;
Whereas , in order to avoid production of pooivquality potable spirits , it     -
                                   \
should be laid down that the potable spirits produced should comply with
Community provisions or , in their absence , with national provisions on the
 subject ; whereas , in order to ensure compliance with the said provisions ,
 supervision arrangements must be provided fori
                                                ' 1 I '
                                                                     ./.
!l0J No L 94» 28. U1970 , p. 13
 'OJ No L 117 , 12 . 5.1979 , P. 4
 ---pagebreak---                                          - 6 -
  Whereas , pursuant "to the second indent of Article 39(4 ) of Regulation (EEC )
  No 337/79 a producer may "be released from the obligation to distil "by having
  the "by-products tff his winemaking withdrawn under official control ; whereas
  this is justified sinoe maro and lees oan only be stored in large quantities
  and tinder certain technical conditions , and the cost of transporting them
  could "be excessive for producers who are looated far from distilleries ;
  Whereas producers who deliver their grape marc . for the manufacture of oeno–
  cyanine generally supply non–fermented grape maro ; whereas the treatment
  which such marc undergoes for the extraction of oenocyanine makes it unsuita­
  ble for fermentation and distillation thereafter ; wV sreas those producers
  should therefore "be exempted in proportion to their production of grape marc ;
  whereas this exemption cannot "be calculated exactly ; whereas , this being the
  case , it is preferable to provide for a fix eel reduction in the general rate ; r
  Whereas , in accordance with Article ll(l ) of Council Regulation (EEC ) NO .
  338/79 of 5 February 1979 laying down special provisions relating to quality
                                       8
  wines produced in specified regions , as last amende • by Regulation (EEC ) -
  No 459/80? a yield per hectare is fixed for each of the quality wines p«s«r»,
  which facilitates observance of the prohibition againt the pressing of wine
                                                                  \
  lees and over-pressing of grapes ; whereas , moreover , the marcs and lees of
  quality white wines p.s.r» contain little alcohol ; whereaB , therefore , a
  reduced rate should be applied to these products ;
  Whereas a reduced rate , corresponding to the quantity of alcohol contained
- in the by-products , is justifies for produoers of wines made from table
  grapes sinoe such wines are distilled in any event ;
            ;                                                     ; ./.
  QOJ NO L 54, 5.3.1979 , P. 48               ■ ; ••
  *0J No L 57 , 29.2,1980 , p. 32
                             ] ■ :
 ---pagebreak---                                            - 7 -
 Whereas the use of wine delivered for wine vinegar manufacture in connection
 with compulsory distillation has the effect of reducing the quantity of
  alcohol delivered to intervention agencies and, thus , limits the agencies 1
   losses for which an EAGGF contribution is provided } whereas it therefore
   seems proper to allow producers to "be released from the requirement to distil
   any wine required to make up the compulsory deliveries if the said wine is
   employed for the vinegar industry}
  Whereas the obligation to distil represents a considerable "burden for the
   independent producer who makes only a small quantity of wine ? whereas , as a
   result of that obligation, he would incur transport costs for his grape marc
   and wine lees which would be out of all propor-tion to the return which he
   could hope to obtain on the alcohol distilled therefrom} whereas such produ­
   cers &ould therefore be exempted from the obligation to distil } whereas
   provision should be made for extending this exemption under conditions to
   be determined;
      «
   Whereas experience lias shown *tha*t coiflplxanc© with, "the obligation referred *
   to in Article 40 of Regulation (EEC ) NO 337/79 by independent producers
   for whom the additional rate referred to in the eai-d Article corresponds
   to a quantity of alcohol of 10 litres or less of pur© alcohol means that
   the said producers incur transport costs and the supervfisory authority incurs
   administrative expenditure out of all proportion to the quantity yielded
   by the measure ; whereas these producers should accordingly be released from
    the obligation referred to above ;              ■ >.           '
13                                     1 '
   Whereas the quantity of alcohol "bought–in "by intervention agencies should
    restricted as far as possible ; whereas it is therefore appropriate , in cases
    where the products obtained by distilling . wines made from table grapes can be
    marketed by the distillers in question, to make it economically possible for
    such sales to take plaoe ; whereas it is therefore necessary to provide that
    distillers may qualify for aid if they do not intend to offer products distil­
    led from wines made from table grapes to the intervention agency; whereas the
    amount of the sail aid should be known in good time and should therefore be
    fixed by the Coune 1 according to the same criteria as those employed for the
    optional distillation operations , at the same, time and for the same year as
    the "price for alcohol from wines made < from table grapes";
                                                                            •/ •
                                                         1
                                                    r,  I'
 ---pagebreak---                                       - 8 -
                                    /
Whereas , to enable "the distillation operations to take place tinder normal
conditions and in order to be able to make use of all available distilling
capacity, an approved distiller who has. concluded a distillation oontract
with a producer should be able to transfer his rights and obligations under
the said contraot to another approved distiller ;
Whereas , in order to ensure appropriate supervision of the distillation
operations referred to in this Regulation , distillers should be subject
to a system of approval ; L
Whereas it has been found useful in case of transport over long distances
in order to preserve wines intended for distillation in good condition , to
add a wine distillate to them, whereby they become fortified ; whereas it is
necessary to provide for supervision of this prooess , so that no practices
which are not permitted by the Community provisions take place ; whereas
the aid payable or , as appropriate , the EAGGF contribution should be
calculated in respect of the wine before it is so fortified;
Whereas the addition of an indicator to the wine to be distilled is an effi­
cient monitoring method ; whereas it should be stated that the presence of
such an indicator moist not prevent the movement of these wines or of the
products obtained therefrom ;
HAS ADOPTED THIS REGULATION *
                                                                        -/
 ---pagebreak---                                          Article 1
This Regulation lays down :
( a ) in Title I , general rules on the following distillation operations :
      - the preventive disti llation of wines provided for in Article 11 of
        Regulation ( EEC ) No 337 / 79,
      - the disti llation : of table wines under the additional measures provided
        for in Article 12 of Regulation ( EEC ) No 337 / 79,
      - the distillation of wine suitable for producing certain potable wine
        spirits provided for in Article 15 of Regulation ( EEC ) No 337/ 79,
( b ) in Title II , general rules concerning
      - the distillation, as provided for in Article 39 of Regulation ( EEC )
         No 337 / 79 , of grape marc and wine lees derived from winemaking , or ,
         failing that , wine ,
        the distillation , additional to that of grape marc and wine
        lees derived from winemaking, provided for in Article 40 of Regulation
        ( EEC ) No 337 / 79 and
      - the distillation of wines made from table grapes, provided for in
        Article 41 of Regulation ( EEC ) No 337 / 79,
( c ) in Title III , general provisions common to the distillation operations
      referred to in Titles I and II .
 ---pagebreak---                                           Article 2
For the purposes of this Regulation
( a ) " producer " means a natural or legal person or group of such persons
      engaging in wine making as defined in Article 3 of Commission Regulation
                            1
       ( EEC ) No 3282 / 73   in its version in force on 1 September 1980 ,
Cb ) " distiller " means a natural or legal person or group of such persons
      distilling wines , wine lees or grape marc on his own account or for the
      account of another person ,
( c ) " approved distiller " means a distiller approved by the competent
      authorities of the Member        State on whose territory his distillation plant
      is located ,              •
( d ) "competent intervention agency" means
      - for the purpose of approving delivery contracts and of supervising the
          production of wine fortified for distillation : the intervention agency
   •      designated by the Member State on whose territory the wine is located
           at the time the contracts are concluded ;
      - for all other purposes : the intervention agency designated by the        /
          Member State on whose territory distillation is carried out .
                                           Article 3
The distillation referred to in Article 1 shall produce only the following
products :
( a ) a neutral vinous alcohol of a strength of at least 96 X vol* or
(b ) a potable wine spirit of a quality complying with the Community provisions
      or , in the absence of such provisions , with national provisions, or
( c ) a raw vinous alcohol of an alcoholic strength of at least 52 % vol , which
      must
                                       ;
         i ) either be used under official supervision in order to produce an
             alcoholic beverage , or
       ii )     undergo , also under official supervision, operations intended to
             process it into one of the products listed under ( a ) or (b ).
OJ No L 337 , 6.12.1973 , p. 20 .
 ---pagebreak---                                          - 11 -
                                       Article A
1 . The distillation operations referred to in Article 1 may be restricted to
     production of one or two only of the products listed in Article 3 .
2 . A decision may be taken to restrict distillation of wine suitable for
     producing certain potable spi rits of designated origin to production of
     neutral vinous alcohol with an alcoholic strength of not less than 96 %
     vol .
                                       TITLE I
                  General rules on the optional distillation of wines
                                       Article 5
1 . Producers who intend to deliver their wine for distillation under one of
     the operations referred to in Article 1(a ) shall conclude a delivery
     contract , hereinafter called " contract ", with an approved distiller and
     shall submit it for approval , by a date to be fixed , to the competent
   • intervention agency .
2 . Such contract shall , except in respect of the distillation referred to in
     Article 12 of Regulation ( EEC ) No 337 / 79, cover a minimum quantity to be
     determined ,which shall 1n any event not be less than 10 hi . It shall Include
     the information necessary to identify the wine to be distilled and shall
     specify the respective obligations of the contracting parties .
3 . The contract shall be valid only if it is approved by the competent
     intervention agency before a date to be fixed .
     If . the producer 's winery is located in a different Member State from the
     distiller 's plant , a copy of the contract , approved by the competent
     intervention agency, shall be transmitted to the intervention agency of
     the Member State on whose territory distillation is carried out .
4 . If the contract is discharged prematurely , the parties shall without delay
     so inform the intervention agency which approved the contract .
                                                                           ./
 ---pagebreak---                                        Article 6
1 . Any producer
    - who is himself an approved distiller and has a distillation plant and
       intends to carry out distillation as referred to in Article 1(a ) of
       all or part of his wine , or            ■         J
    - who intends to have his wine distilled on his behalf in an approved
       distiller 's plant ,    ,
  - shall so inform the intervention agency of the Member State in whose
    territory his winery is located by means of a declaration of delivery for
    distillation , hereinafter called " declaration", which shall include the
    information necessary to identify the wine to be distilled . If the
    distilling plant is located in another Member State , he shall also inform
    the latter Member State 's intervention agency by sending it a copy of
    the declaration .
2 . Producers who have submitted a declaration shall be bound to distil
   'or have distilled the wine covered by the declaration .
3 . For the purposes of this Regulation , the contract referred to in Article
    5(1 ) shall be replaced ,
    - in the case specified in the first indent of paragraph 1 , by the declara­
       tion ,                                          '
    - in the case specified in the second indent of paragraph 1 , by the
    ,   declaration , together with a contract for delivery for disti llation on the
        producer 's behalf concluded between the'producer and the distiller .
                                                  : o'
                                       Article 7
The characteristics of the wine covered by the contract , and in particular the
                                                    I \
quantity and actual alcoholic strength by volume thereof , shall be checked at ,
the time the wine enters the distillery by authorities designated by the Member
States .
Additional checks may be laid down for wine covered by the declaration referred
to in Article 6 .
                                       Article 8
1 . The distiller shall pay to the producer , for the wine delivered , not less than
     the price referred to, as appropriate , in Articles 11(2 ), 12(2 ) or
              13(2 ) of Regulation ( EEC ) No 337/ 79, these prices to apply to bulk
     merchandise ex producer 's premises .
 ---pagebreak---                                           13 -
2 . The distiller shall pay the producer :
     - for each delivery of wine , at least the difference between the agreed
        purchase price and the aid referred to in Article 10, within t hi rty days
        following entry of the wine into the distillery or into his warehouse ,
     - the remainder , for the whole of the wine , within a period to be determi­
        ned following the final delivery of wine .
                                       Article 9
The distiller shall , within seven days , communicate in writing to the competent
intervention agency ;
( a ) the date when all the wine supplied pursuant to the contract entered the
       distillery or warehouse , by submitting
       - in the case of a single delivery, a copy of the accompanying document
         provided for in Article 53 of Regulation ( EEC ) No 337 / 79,
       - in the case of deliveries by instalments , an account stating in respect of each
         delivery the consignor , the quantity of wine , the colour of the wine ,
         the actual alcoholic strength by volume and the number of the accompany­
         ing document provided for in Article 53 of Regulation ( EEC ) No 337 / 79 .
( b ) the date on which all the wine referred to in a ) was distilled, stating
       the quantity and actual alcoholic strentjh    by volume of the resultant
       product .                                      v
Furthermore , the distiller shall provide the competent intervention agency
with proof of the payment referred to in the first indent of Article 8(2 ).
                                       Article 10
1 . The intervention agency ? hall effect any necessary checks and , except where
     an irregularity or breach of the provisions of this Regulation is found,
     shall pay the aid laid down for the distillation operation in question not
      later thanthirty days after receipt of all the communications and of the
     proof referred to in Article 9 .
 ---pagebreak---                                              : -X
 2 . The tmount cf th*                be i IA-6?I pa ? i«t< spoilt re of v1r»*_ «nd by -
       percentage volume of alcoholic strength on the basis of the minimum
       purchase price laid down for the type of distillation in question / of the
       flat - rate transDort and processing costs , of the losses during manufacture
       and of the price of the products so obtained .               .                    ;
      The aid may be differentiated according to the product obtained .
3 . The aid payable for potable wine spirits or raw vinous alcohol may not
       exceed the amount of aid payable for neutral wine spirits .
4 . Account shall be taken in fixing the amount of aid payable in the case of
      potable wine spirits or of raw vinous alcohol :
      - of the need to ensure that the aid should not have any significant or
                                                                  \
         lasting effect on the competitive relationship between spirituous
         beverages based on wine distillates and those obtained from other raw
         materials ,
      - of the estimated quantity of wine distillates available , so as to avoid
    *    any risk of disturbing the market for that product .
5 . For the quantity of wine actually delivered to the distiller under the
    . contract , a tolerance of 5 % of the quantity of wine stated in the contract
      shall be allowed.     Where the quantity of wine delivered is less than that
      contracted for, this tolerance may be extended to 10% ifthe intervention
      agency considers that this is justified in the circumstances .
6 . The aid to be paid to the disti ller shall be cal.culatedper hectolitre of
      wine and by percentage volume of actual alcoholic strength for the quantity
      of wine actually distilled, subject to the tolerances provided for in
   ' paragraph 5 .                                                                     "
       However ,       the aid for the distillation referred to in Article 12 of
      Regulation ( EEC ) No 337 / 79 shall be limited to the quantity
      stated in the contract .
7 . Where distillation takes place in a Member State other than that in which
      the producer 's winery is located, the competent intervention agencies of
      the two Member States concerned shall collaborate by means of a direct
      exchange of information in order to effect the checks referred to in
      paragraph 1 .
                                                      i .
                                                                  -    .  ' \      '       •
 ---pagebreak---                                           TITLE II
General rules on the compulsory distillation of the by-products of winemaking
           and on the distillation of wines obtained from table grapes
                                         Article 11
1 . Producers who are required
    -    in accordance with^Article 39(2 ) of Regulation ( EEC ) No 337 / 79 , to
         distil the grape marc ar\d wine lees they have obtained as by-products
         of wine-making or , failing that , a corresponding quantity of wine from
         their own production or
    -    in accordance with Article 40 of the said Regulation , to distil wine
         from their own production                          -
  Shall fulfil their obligation by delivering the said products by a date to be
        determined to an approved distiller* free at distillery .
        Producers who are required , in accordance with Article 41(1 ) of the
        -Regulation cited above , to'disti I wines made from table grapes , shall fulfi I the
        obligation by delivering the said wines to an approved distiller .
2 . The distiller shall :        .
     ( a)provide the producer with proof that he has delivered the products in
          question ,
     ( b)pay the producer not less than the price referred to in Article 12(c )
          for the product delivered ,
     ( c)distil    the products delivered to him by a date to be determined .
     Furthermore , in the case of the distillation operations referred to in
     the first subparagraph of paragraph 1 , and without prejudice to the
     provisions of Article 15 , the distiller shall
     ( a)process the product delivered into a product with an actual alcoholic
          strength of not less than 96 % vol or , in cases where he is not
          technically equipped to obtain such a product , deliver the product he
          has obtained to another approved distiller under the control of the
          intervention agency in order to obtain a product with an actual
          alcoholic strength of not Less than 96 % vol ,
 ---pagebreak---                                             - 16 -
      ( b ) deliver the product abused by di*tUl»tion to the Intervention • gency .
3 . The competent intervention agency shall purchase from the distiller the
     product he has obtained by means of one of the disti I lat ion operations
     referred to in the first subparagraph of paragrah 1 and shall pay him the price
     referred to in Article 13 .
     The distiller may also offer to the competent intervention agency the
     product obtained by the distillation operation referred to in the sepond
     subparagraph of paragraph 1 .      The agency shall be under an obligation to
     purchase such product / provided that this is a neutral vinous alcohol with
     an alcoholic strength of at least 96% vol .
                                          Article 12
The price payable by the distiller to the producer in rerpect of the distillation
referred to in title II of this Regulation shall             'not he less than :
(a ) for the distillation in accordance with Article 39(2 ) of Regulation ( EEC )
       No 337 / 79 of grape marc , wine lees ancj, as the case may be , wine , the pri ce
     % fixed annually before 1 August for the following marketing year by the
       Council acting by a qualified majority on a proposed from the Commission ,
       This price shall be fixed according to the actual alcoholic strength by
       volume of the product in question . It shall not be less than 30 X of the
       guide price for table wine of type A I applicable with effect from the following
       16 December nor shall it exceed 40 % of the said price . It is hereinafter
       referred to as the "price of products for compulsory disti llstion".
( b ) "for the distillation of wine carried out in accordance with Article 40(1 )
       of Regulation ( EEC ) No 337 / 79, the prices referred to in Article 40(3 )
       of that Regulation .
( c ) for the distillation of wine made from table grapes referred to in
       Article 41(1 ) of Regulation ( EEC ) No 337 / 79, the price referred to in
       Article 41(2 ) of that Regulation .
                                                                                     /
 ---pagebreak---                                            - 17 -
                                         Article 13
1 . The prices payable hy the competent intervention agency to          the distiller
    when buying-in the product obtained from the distillation referred to in
    Title II                           shall be fixed annually by the Council , acting
    by a qualified majority on a proposal from the Commission , at the same time
    and for the same wine-growing year as the price paid for the by-products
    of winemaking intended for compulsory distillation .
                                \                                                      •
    They shall be fixed per hectolitre and by X volume of pure alcohol , on the
    basis of the prices payable to the producer , as referred to in Article 12 ,
    the flat-rate transport and processing costs and nanufacturing losses .
    They shall apply to bulk merchandise free at the competent intervention
    agency 's warehouse . They are hereinafter referred to as follows :
    ( a)for the disti llation" in accordance with Article 39(2 ) of Regulation
         ( EEC ) No 337 / 79 of grape marc , wine lees and , as the case may be , wine ,
         "price for alcohol from compulsory distillation"
    ( b)for the distillation of wine referred to in Article 40(1 ) of Regulation
  «
         ( EEC ) No 337 / 79 " price for alcohol from additional compulsory
         distillation "
     ( c)for the distillation of wine referred to in Article 40(1 ) of Regulation
         ( EEC ) No 337/ 79 under the provisions of the first indent of paragraph 2
         of the same Article , " special price for alcohol from additional
             compulsory distillation "
     ( d)for the distillation of wine made from table grapes referred to in
         Article 41(1 ) of Regulation ( EEC ) No 337/ 79, "price for alcohol from
         wine made from table grapes ".            ,f
2 . The price for alcohol from compulsory distillation shall be fixed at a
    standard rate . However , it may be differentiated according to whether
    marc , lees or wine are distilled, in order to take account , where
                        *
    necessary, of the differing costs and losses .
 ---pagebreak---     The c' ; * forest its . sd prices in * LI be fixed at the same Time as xhe standard
    price . The Memfcer States may decide to apply the differentiated prices when
    application of the standard price would or might render it impossible to
    have one or more by-products of winemaking distilled in certain Community
    regions . The level of the prices fixed for the product of distillation of
    the various by-products must be such that their weighted average does not
    exceed the price for alcohol from compulsory disti llation referred to in
    the first subparagraph Hereof .
                                            Article 14             '              ~
1 . The maximum level of the EAGGF Guarantee Section 's contribution to expen­
    diture incurred by intervention agencies for each of the distillation
    operations referred to in Title II of this Regulation shall be fixed
    annually , at the same time and for the same marketing year as the
     price of products for compulsory disti llation . This amount shall
     be fixed per hectolitre and by percentage volume of pure alcohol .
2 . The contribution from the Guarantee Section of the EAGGF shall be paid , sub­
    ject tothe maximum level referred to in paragraph 1 , only where , during
    the financial year in question , an intervention agency 's expenditure
    on buying-in the product of each' type of distillation referred to in this
    Title is greater than the income from sales of the said products on the
    market . The intervention agencies *           accounts must clearly show the
    quantities and prices of the products bought and sold in respect of each            -
    type of distillation referred to in this Titlej,                 .
    If the difference referred to in the first subparagraph is less than the
    maximum amount multiplied by the number of hectolitres of product sold ,
    expressed as pure alcohol , the contribution shall be equal to that
    difference .
3 . Articles 4 and 5 of Regulation ( EEC ) No 729/ 70 shall apply to the EAGGF
    contribution referred to in this Article ...
 ---pagebreak---                                        - 19 -
                                    Artici® 15
1 . Producers shall be released from the obligations laid down in Article 39(2 )
    and in Article 40(1 ) of Regulation ( EEC ) No 337 / 79 if an approved distiller
    manufactures from those producers' own products :
    - potable spirits obtained from grape marc with or without addition of wine
        lees , or ,                             '
    - potable spirits obtained directly from wine .       '
                                                             /
2 . For each administrative unit whose , wine production customarily goes for
    processing into potable wine spirits, the Member States shall determine
    what minimum percentage of potable spirits other than wine spirits must be
    produced where the option provided for in paragraph . lis exercised .
    That percentage shall correspond to the average quantity of pure alsohol
    contained in the marc and lees produced in the administrative unit concerned .
3 . The quantity of alcohol , expressed as pure alcohol , contained in the by*
    products of winemaking or wine used for the production                    -
   'of potable spirits pursuant to paragraph 1 shall be deducted from the
    quantity of alcohol which is required to be delivered pursuant to Article
    39(2 ) of Regulation (EEC ) No 337/ 79 . .
4 . Where the option provided for in paragraph 1 is exercised, the distiller
    shall be under an obligation :
     ( a)to furnish the producer with proof that the latter has delivered the
          products concerned,
     ( b)to pay the producervat least the prices referred to in Article 12(a ) and
          ( b );
     ( c)to inform the intervention agency of the total quantities of potable
          spirits produced in accordance with this Article , broken down into
          potable    , spirits of wine and other potable spirits .
                                                                        ./.
 ---pagebreak---                                                 -       _U *"
5 . Production of pot-ible spirits may have the effect mentioned 1n paragraph 1
   , only if :                                                                         v
     ( a)the quality of the potable spirits obtained complies with Community
           provisions or , in the absence of such provisions , with the relevant
           national provisions / the distiller being required to provide proof
            thereof to the competent agency ,
     ( b ) it is carried out under the supervision of the competent intervention
          agency , the distiller being           . required to permit such supervision
          at any time during distillation .
                                           Article 16
1 . Producers shall be freed from the obligation laid down in Article 39(2 )
     of Regulation ( EEC ) No 337 / 79 if the by-products of winemaking are
     withdrawn under supervision .                                   -
2 . The quantity and the quality of marc and lees withdrawn must be in a
     ratio , to be determined by the Member States , with the quantity of wine
     produced in respect of which the obligation to distil marc and lees is
     not fulf i I led .
3 . Only those producers whose vir^ards are situated in wine-growing areas
     where distillation represents a disproportionate financial burden may
     exercise the option referred to in paragraph 1 . The list of the areas
     concerned shall be drawn up by the competent authorities of the Member
     States , who shall communicate it to the Commission .
                                           Article 17
                   -■           y          ■■■ ■! • II»  -  II IIIIM
1 . The following shall be paid at a reduced rate :
     ( a ) producers who deliver their marc for the manufacture of oertocyanine ,
     ( b ) producers of white quality wines p.s.r . for the proportion of their
           harvest which would qualify for that designation ,
     ( c)producers of wines made from table grapes for the proportion of their
           production which, is distilled in accordance with Article 41(1 ) of
           Regulation ( EEC ) No 337/ 79 .
2 . For producers who deliver wine of their own production to the vinegar
     industry, the quantity of alcohol , expressed as pure alcohol , contained
     in the wines intended for vinegar production shall be deducted from the
     quantity of alcohol to be delivered pursuant to Article 39(2 ) of
     Regulation ( EEC ) No 337 / 79 .
 ---pagebreak---                                      - 21 -
3 . The obligation laid down in Article 39(2 ) of Regulation ( EEC ) No 337 / 79
     shall not apply to independent producers who, during the wine-growing year
     in question, do not make more than 10 hectolitres of wine .
     However , it may be decided that the exemption in the above subparagraph
     shall apply, under conditions to be determined, to independent producers
     who, during the wine-growing year in question, make between 10 and 25
     hectolitres of wine .
4 . The obligation laid down in Article 40(1 ) of Regulation ( EEC ) No 337/ 79
     shall not apply to independent producers for whom the additional rate
 . referred to in that Article corresponds to a quantity of alcohol not
     exceeding 10 litres of pure alcohol .
                                   Article 18
1 . Distillers who do not intend to offer the product obtained by distilling
     wines made from table grapes to the competent intervention agency, in
   ^ accordance with the provisions of the second subparagraph of Article 11(3 ),
     shall qualify for aid .
2 . The amount of this aid shall be fixed by the Council , acting by a
     qualified majority on a proposal from the Commission, at the same time and
     for the same wine-growing year as the price for alcohol from wine made
                                                                         *
     from table grapes , in accordance with the provisions of Article 10(2 ),
     ( 3 ) and (4 ).
3 . Distillers who intend to qualify for the aid referred to in paragraph 1
     shall so inform the competent agency by means of a declaration . The
     declaration shall include the information necessary to identify the wine
     to be disti lied .
4 . The check on the characteristics of the wine covered by the declaration
     and in particular of its actual alcoholic strength by volume shall be
     effected at the time of its entry into the distillery by authorities
     designated by the Member States .
 ---pagebreak---  5 . The distiller shall coiri.iturn cate to the competent intervention agency in
       writing and within seven days , the information referred to in the first
       subparagraph of Article 9 .
 6 . The aid shall be paid by the comptent intervention agency in accordance
      with the provisions of Article 10(1 ); it shall be calculated per hectolitre
      of wine and by percentage volume of actual alcoholi c strength for the quantity
      of wine actual ly di sti I led .
7 . Where distilling       takes place in a Member State other than that in which
      the producer 's premises are located , the competent intervention agencies
      of the two Member States in question shall collaborate by means of a
      direct exchange of information in order to effect the checks required by
      this Article .                                                        ' . _
                                        TITLE III
                                   C0MM0N PROVISIONS.
    «                                  Article 19
The distillation operations referred to in this Regulation must take place
during periods to be determined .
                            -    .             V
                                       Article 20
1 . Where , owing to unforeseen circumstances or for rea jons of force majeure , -
      all orpart of the product to be .distilled cannot be so distilled
      the distiller or the producer shall , without delay ,, inform :
      - the intervention agency of the Member State on whose territory the
         distillation plant is located
         and
      - if the producer 's winery is located in another Member State , the
         intervention agency of this second Member State .
                                                   .
2 . If the product which cannot be distilled has already entered into the
      distillery or warehouses operated by the distiller , the competent
      intervention agency may, on application by the distiller , authorize him
      to transfer to another approved distiller his rights and obligations in
       respect of the quantity of product not yet distilled .
 ---pagebreak---                                         - 23
3 . If , owing to unforeseen circumstances or force majeure , the producer or
    the distiller cannot comply with the time limits fixed the competent
    intervention agency may grant him extra time .
4 . In the circumstances referred to in paragraph 1 , the intervention agency
    shall pay the aid laid down for the quantity of wine which has actually
    been disti lied .
                                     Article 21
1 . A list of approved distillers shall be drawn up by the comptent authorities
                                  7
    of the Member States . The said authorities shall transmit it to the
    Commission      by 31 December 1980 and shall communicate any subsequent'
    alterations to the Commission .
    The Commission shall publish the said communications in
        the Official Journal of the European Communities .
2 . Approval of a distiller may be withdrawn by the competent authority if the
    distiller does not comply with his obligations under the Community provi­
    sions .
                                    Article 22
1 . Wine intended for distillation may be fortified for distillation .
                             \
2 . In the circumstances referred to in paragraph 1 , any  documents and records
    provided for under Article 53 of Regulation ( EEC ) No 337/ 79 shall show the
    increase in the actual alcoholic strength , expressed  in % volume , by stating
    the corresponding strength before and after addition   of the distillate
    to the wine .      ,
3 . The aid payable or, as appropriate, the contribution by the EAGGF shall be
    calculated per hectolitre and by % volume actual alcohptic strength of the
    wine before it is fortified for distillation .
    For this purpose a sample shall be taken by a representative of an official
    body so that the actual alcoholic strength may be determined by analysis
    in an official laboratory or a laboratory operating under official control .
    Two copies of the report on this analysis shall be transmitted to the distiller,
    who shall send one of these to the competent intervention agency .
4 . Such wine shall be fortified for distillation under official control .
 ---pagebreak---                                          - 24 ~
                                       Article 23
 1 . The Member States shatl take the measures necessary to ensure that this
       Regulation is applied,  and in particular measures to ensure that
       wine delivered to a distillery is not deflected from its end-use of
      distillation . To this end the Member States may stipulate that an indicator
      be used .
                          \       .            '                ,        '  . " •   -
      The Member States may not prevent the movement within their territory of a
      table Wine intended for distillation or of distilled products obtained from
     this wine because of the presence of an indicator .
2 . The Member States which stipulate the use of an indicator as provided for in
     the first subparagraph of paragraph 1 shall so inform the Commission and
     shall communicate the raeasures they have taken for the purpose . The Commission
     shall inform the othsr Member States accordingly . ,
                                       Article 24
Regulations ( EEC ) Nos 343/ 79     and 349/ 79 are hereby repealed .
     «                                                                            \
                                       Article 25
This Regulation shall enter into force on 1 September 1980 .
This Regulation shall be binding in its entirety and directly applicabie in
all Member States .
                                             \      1                  .
Done at Brussels ,                                     For the Council
                                                       The President