CELEX: 51976PC0343
Language: en
Date: 1976-07-02
Title: Proposal for a COUNCIL REGULATION (EEC) laying down general rules in respect of the distillation of wines provided for in Articles 6b, 6c, 24a and 24b of Regulation (EEC) No 816/70 (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (76) 343
Vol. 1976/0102
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
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                                       COM(76)343 final
                                       Brussels , 2 July 1976
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                            !   Proposal for a
                           COUNCIL REGULATION ( EEC )
              laying down general rules :n respect of the
              distillation of wines provided for in Articles
              6b, 6c , 24a and 24b of Regulation ( EEC ) No 816/ 70
                ( submitted to the Council by the Commission )
                                           * .
                                            \
                                                                 /
   C0M(76 ) 343 final
 ---pagebreak---     \
  /
/
 ---pagebreak---                             EXPLANATORY MEMDRAfflJUH
     Amendments to Regulation (EEC ) N° 816/70 introduced various distillation
measures . Therefore , additional provisions on the subject must be laid down .
     The general rules regarding the distillation of table vines provided
for in Articles 6b , 6 c , 24a and 24 b of Regulation (EEC ) N° 8I6/7O must
provide that distillation may take place only if a distillation contract
has been concluded between producers and distillers .
     It is further necessary to provide for a method of payment of the
purchase price to the producer and for aid to cover the difference bet re en
the purchase price of wines on the one hand and the price of alcohol on the
Community market on the other .
 ---pagebreak---                                       Draft proposal for
                          COUNCIL REGULATION ( EEC ) No                 / 76
                    laying down general rules in respect of the
                   distillation of wines under Articles 6b , 6c ,
                   24a.and . 24b ,, o_f _,Regulation . ( EECj - Ns- SI 6/ 7^–^
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
Having regard to Council Regulation ( EEC ) No 816/ 70 of 28 April 1970 laying
down additional provisions for the common organization of the market in
wine ( 1 ), as last amended by Regulation ( EEC ) No 1167 / 76 ( 2 ), and in
particular Articles 6b ( 3 ), 6c ( 3 ), 24a ( 5 ) and 24b ( 3 ) thereof ,
Having regard to the proposal from the Commission ,
Whereas the conditions should be laid down governing distillation operations
under Articles 6b , 6c , 24a and 24b of the said Regulation ;
Whereas the natural alcoholic strength of certain wines may be increased
by the addition of sucrose ; whereas the same price would be paid on
distillation for the natural alcohol content as for the alcohol obtained
from the added sucrose ; whereas in order to avoid this anomaly these wines
should be excluded from distillation under the said Articles 6b, 6c , 24$
and 24b ;
Whereas the various prices for wines for distillation laid down in the
said Articles normally render it impossible to market the products of
distillation at market prices ; whereas an amount of aid must therefore
be paid which will enable the products obtained to be marketed; ,
Whereas the minimum price guaranteed to the producer should be paid to
him within a time limit which will ensure that he obtains a profit
comparable to that which he would have obtained under a commercial sale ;
( 1 ) 0J No L 99 , 5.5.1970, p. 1
( 2 ) 0J No L 135 , 24.5.1976 , pi 42
 ---pagebreak---                                             - 2 -
Whereas the producer should be in a position , if the market situation
improves , to give up the optional distillation operations under the said
Articles 6b and 6c ;
Whereas producers should be able to conclude contracts with distillers
subject to approval by the intervention agency, in order to facilitate the
control of the sequence of operations and of the observance of the obligations
on both parties ; whereas this system would have the added advantage of
making it easier to follow the quantitative effects pf distillation on
the market ;
Whereas it should be remembered that the distillation of wines under the
said Articles 6b, 6c , 24a and 24b are interventions within the meaning of
Article 3(1 ) of Council Regulation ( EEC ) No 729 / 70 of 21 April 1970 on
the financing of the common agricultural policy ( 3 ), as last amended by
Regulation ( EEC ) No 2788/ 72 ( 4 ),
HAS ADOPTED THIS REGULATION :
                                           Article 1
1.    Producers undertaking the distillation of wine under Articles 6b, 6c ,
      24a and 24b of Regulation ( EEC ) No 816 / 70 shall conclude contracts
      for the delivery of wine with distillers of their choice before a
      date to be fixed .
      These contracts shall not be valid unless approved by the intervention
      agency before a date to be fixed .
2.    These contracts shall cover :
      ( a ) the purchase by the distiller of the quantity of wine entered in
            the contract ;
    , ( b ) the obligation on the distiller to process the wine into a
            product of a strength of 86 degrees or more , or in so far as it is
            so decided , into a product of a strength of 85 degrees or less and
            to pay for it at least the price referred to in Article 6b ( 2 ), 6c
            ( 2 ) 24a ( 3 ) or 24b ( 2 ) of the said Regulation , as appropriate ,
            such price being applicable to unpacked goods ex producer 's
            premises .
3.    The distillation under the said Articles 6b , 6c , 24a and 24b shall not
      take place in the case of wines the natural alcoholic strength of
      which has been increased by the addition of sucrose .
                                           Article 2
1.    For each hectolitre of wine distilled the intervention agency shall
      bay an aid .
      I
2.    The amount of the aid , which may be extended to include potable spirits ,
      phall be fixed on the basis of the minimum purchase price referred to
      in Article 1(2 ) Cb ), the standard processing costs and the price of
      products obtained by distillation on the Community market .
3.    Where it is decided to grant an aid for products of a strength of
      85 degrees or less the amount of aid shall vary depending on whether
      the products of distillation have an alcoholic strenght of
      r 86 degrees or more , or
      r 85 degrees or less .
( 3 ) ÇJ No L      94, 28.4.1970, p. 13
( 4 ) 0J No L 295 , 30.12.1972 , p. 1
 ---pagebreak---     ν
                                   - 3 -
                                Art iç_le_3
1. Within 15 days of approval of the contract the intervention agency shall
   pay the producer an amount equal to 30% of the minimum purchase price
   referred to in Article 1(2)(b ) as an advance on the aid provided for
    in Article 2 .
2. When the total quantity of wine in the contract is delivered to the
   distillery , the distiller shall pay the producer at least the
   difference between the minimum purchase price referred to in Article
   1<2)(b ) and the aid provided for in Article 2 .
3. When proof is supplied that the total quantity of wine in the contract ,
   with the exception of the amount ( if any ) covered by a partial cancel­
    lation under Article 4, has been distilled the intervention agency
   shall pay the producer the difference between the aid provided for
   in Article 2 and the amount referred to in paragraph 1 .
4. Member States may provide that the amount referred to in paragraph 1
   shall be paid by the distiller . In such case the intervention agency
   shall reimburse this amount to the distiller when the proof referred
   to in paragraph 3 is supplied .
5. Where distillation take place in a Member State other than the Member
   State where the producer is located , the minimum purchase price referred
   to in Article 1(2)(b ) shall be paid by the distiller .
                                 Arti eie 4
1. In connection with the distillation operations provided for in
   Articles 6b and 6c of Regulation ( EEC ) No 816 / 70, it may be decided
   that the contracts provided for in Article 1 should be totally or
   partially cancelled on application by the producer in respect of the
   quantity of wine that has not yet been delivered to the distillery
   if the weighted average price of table wine of type A 1 is over 90%
   of the relevant activating price .
2. Where a decision as referred to in paragraph 1 is taken , interested
   producers shall submit their applications to the intervention agency .
3. The intervention agency shall approve the applications submitted
   after ensuring that the amount referred to in Article 3(1 ) has
   been reimbursed .
                                 Article 5
   Distillation operations shall take place during periods to be fixed .
                                 Article 6
1. Member States shall appoint an intervention agency to oversee the
   implementation of this Regulation .
2. The intervention agency responsible shall in every case be that
   located on the territory where distillation takes place .
 ---pagebreak---                                   Article 7
     This Regulation shall enter into force on the day of its publication
in the Official Journal of the European Communities .
     This Regulation shall he "binding in its entirety and directly applicable
in all Member States ,
Done at Brussels .                                        For the Council ,
                                                           The President
 ---pagebreak---                        FINANCIAL                  STATEMENT
                                                                                       DATE I 7.6.1976
    l. BUKBT LINK coiictnwED i Article 692 ( other expenditure wine )
    2* ACTION T Propo^O. for H Council Regulation on , the distillation of the
                     by-products of wine-making .
    3. LECAL BASIS J Article                   of Council Regulation ( EEC ) No 816/70.
    A. OBJECTIVES J Adjustment of the general rules for the distillation of the
                           by-products of . wine-makin» to the new provisions decided on
                           by the Council within the framework of the latest amendments
                           to Regulation ( EEC ) No 8l6/70.
    5 . FINANCIAL CONSEQUENCE                       FOR THE KARKETIHO YEAR
   5.0 K,xr~:mruHE
                                                                           CURRENT FINANCIAL TEAR   FOLLOWING FINANCIAL YEAR
                                                                                                           ( II )
         -CilAnriiD TO THE EC BUDGET
           ( P.mjlJ 16/1 NTSRVENTI OiJS )                9 »? m u . a .          2.75 m u.a .           11.0 m u.a .
         -CHAHGED TO NATIONAL ADMINISTR.
         -CHARGED TO OTHER NATIONAL CROUPS
   5.1 REFXIPTS
         -OV.'N R'SOIMCIS OF TÎ!E EC
           \ I.EV1 in/CU3T0l-2 DUTIES )
         –NATIONAL                         ' '
                                                    YEAR .. J.Q7&          YEAR .... 197.9.        TEAR ... A9.°9..*...
   5.0.1 PLURI A.VNUAL PATTERN OF EXPENDITURE            9o2 .m U.a .             9.2 m u.a .            9.2 m u.a .
   5.1.1 PLURI ANNUAL PATTERlf OF RECEIPTS
   5.2 KETIIOD OF CALCULATION             #00 OOOhl of alcohol x 0.12 u.a ./ /hi
                                          ( 1 ) for a distillation at 9f>°                     = 9.2 m u.a . per
                                                                                                      ' marketing year
                                            + double rate effect ( 300 000 hi
                                                                            in Italy )         = ' 1.8 m u.a .
                                                                                                  11.0 m u.a .
          A.-> regards the 19?^ financial year the financing relates t « V12 of
          ' ! m u .*>.
< 6.0 FITAiJCINO PC"SIBLE.K1TH CREDITS INSCRIBED IN RELEVANT CHAPTER OF CURRENT BUDGET ?
  o7TTIWJ!«WlG_tfi.33IBIi; BY TRANSFER BiJTKEHH CHAPTERS OP CURRENT BUDCET ?
3 0.2 NEC:-r»3ITY FOi A SUPPLEMENTARY BUDG
                                                                                                               ÏS/M I
                                                                                                              TES/NO         S
  0 .3 CR3H To TO b ", WRirTEK INV0 FUTURE BUDGETS ?                                                          YES/X&
  COMMENTS i ( 1 ) Amount rvitimated on the basis of the current market situation .
                           Ti->e definitive amount of the EAGGF contribution will be fixed
                          wh«n the Council has established the price to be paid by the
                           intervention agencies to the distillers ., This amount depends
                           on the price laid down by the Council .