CELEX: 51982PC0107
Language: en
Date: 1982-03-10
Title: Proposal for a COUNCIL REGULATION (EEC) laying down general rules on the distillation of table wines as provided for in Article 15 of Regulation (EEC) No 337/79 (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (82) 107
Vol. 1982/0038
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                         COM(82)107 final
                                                         Brussels - 10 March 1982
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                    ^ /          o   ■–11    v -A
                   f- lrj     O g- r~' y      p oj\
                   || ! I R !> M
                    V \         Ci            AO /
                                    Proposal for a
                              COUNCIL REGULATION ( EEC )
laying down general rules on the distillation of table wines as provided
             for in Article 15 of Regulation ( EEC ) No 337/ 79
              ( submitted to the Council by the Commission )
C0M(82 ) 107 final
 ---pagebreak---                                  EXPLANATORY MEMORANDUM
After two years of availability of exceptional quantities of wine as a
result of a record harvest followed by a very large one , the outlook for
equilibrium on the Community market was apparently more reassuring when
the 1981 / 82 wine year opened . An examination of the trend of production
in the two main wine-producing countries and of prices at the various market­
ing locations shows , however , that the equilibrium that was expected at
the beginning of the marketing year cannot be attained by the normal
management measures alone . The last two harvests have engendered a very
serious imbalance between available supplies in Italy and those in France .
In 1980 , French production at 69 million hi was average , whereas the 84
million hi produced in Italy was not far from the record . In 1981 , French
production , at 57 million hi , was very low while the Italian harvest of
70 million hi was of average size . In Italy prices have dropped sharply ,
particularly in a number of marketing locations where wine not entering
into international trade is sold , whereas in France prices have remained
fairly satisfactory . Thus action to relieve the market ( particularly last
year 's exceptional distillation and distillation under special price-
                                 1
support guarantee arrangements ) hardly operated at all in France , where
market prices matched or exceeded the intervention prices . At the same
time , in Italy the volume withdrawn from the market was limited by the
restriction imposed by the Community regulations on the quantity of each
producer 's wine that can be distilled . The lack of interest in France and
the limitation imposed by the regulations in Italy meant that the
quantitative results anticipated could not be attained .
Thus the distillation under special price-support guarantee arrangements ,
which should in theory account for 12 million hi of wine , will in practice
only account for roughly 5 million hi , as French producers will be sending
very little of their wine for distillation .
1 ) 'Garantie de bonne fin "
 ---pagebreak---                                     - 2 -
The apparent overall balance however masks differing pictures for different
types of wine . The relatively modest production of white table wine and
increased consumer demand for it has resulted in prices considered satis­
factory by the producers . For red wine , however , the quantities available
are very much in excess of demand and average prices in Italy have never
exceeded 70% of the guide price applied since 16 December 1981 . This level
is quite inadequate and there is a risk of serious tension arising . The
Commission feels that the present unbalanced market situation justifies ,
for red table wine , use of the exceptional distillation measures provided
for in Article 15 of Regulation ( EEC ) No 337/ 79 . As for methods to be used ,
the Commission considers that at the present time a limitation      of the volume
distilled by fixing a maximum percentage of each producer 's harvest , the
method used for the last exceptional distillation , is unlikely to relieve
the market at points where relief is most needed . The commission proposes
therefore that the volume to be distilled should be limited by fixing a
relatively short period , adjusted to the purpose in view , for the signing
of contracts and by providing that the' quantities specified in contracts
may be reduced if necessary .
The quantity of red table wine that will have to be distilled if a durable
rationalization of the market is to be obtained is about 7 million hi . The
price that the Commission proposes is that adopted for the distillation
under special price-support guarantee arrangements agreed in September 1981 ,
 i.e. 83% of the guide price .
Given the situation on the market in distillates , a mixed system is proposed
for the distilled products . For distillates of 85% alcohol by volume or less ,
which it will be possible for the distillers to dispose of directly , a
marketing aid will be given . Distillates with an alcohol content of 86% by
volume or more will be shipped to the intervention agencies , which will be
 reimbursed by the EAGGF Guarantee Section .
 ---pagebreak---                                          Proposal for a
                               COUNCIL REGULATION ( EEC)
              laying down general rules on the distillation of table wines as provided for in
                                  Article IS of Regulation ( EEC) No 337 / 79
I MF COUNCIL OF THF F.UKOI'EAN
COMMUNI'l lES .
Having regard to the Treaty establishing the European
Economic Community,
Having regard to Council Regulation (EEC) No
337/79 of 5 February 1979 on the common organiza­
tion of the market in wine(' ), as last amended by
Regulation (EEC) No ,5577/8l(2). and in particular
Article 15 ( I ) thereof,
 Having regard lo the proposal from the Commission ,
Whereas Article 15 of Regulation ( EEC) No 337/79
provides that provisions concerning the distillation oi
table wines may be adopted where application of the
 market support measures provided for in that Regula­
 tion is unlikely to be effective in restoring price
 levels :
 Whereas this is the case at present in r«spect of red table wines
 in view of the fact that , despite a low harvest in the current year ,
 the stocks from previous years have created supplies which considerably
 exceed the normal requirements for the present year ; whereas , moreover ,
 the support measures already taken have not succeeded in restoring
 reasonable price levels or reducing the surplus by a sufficient amounts
 ( 1 ) OJ No L 5^, 5.3.1979 , p. 1
 ( 2 ) OJ No L 359 , 15.12.1981 , p. '
 ---pagebreak---                                           - 2 -
                  Whereas the conditions under which these distillation
                  operations may take place should be laid dowrt ;
                  whereas, in particular, the price of the wines going for
                  distillation should not be such as to encourage the
                   production of . wine principally for distillation,
                   although it should be sufficiently attractive for the
                   operation to be effective ;
                   Whereas Article 67 of the        1979 Act of Accession
                   provides that in fixing the level of the various
                  amounts laid down willim the common agricultural
                   policy, account shall be taken , lor Greece, of the acces­
                  sion compensatory amount, to the extent necessary for
                   the proper functioning of the common agricultural
                   policy ; whereas the present situation on the market
                   for red table wines is such that a minimum buying-in
                   price, less the accession compensatory amount, should
                   not be fixed for distillation operations carried out in
                   Greece ; whereas any risk of deflection of trade seems
                   ruled out by the fact that the distillation capacity in
                   Greece is limited and that no wine is sent to that
                   country for distillation ;
Whereas a complete rationalization of the market must be brought
about while ensuring that the quantity needed to achieve this is not
exceeded :
                  Whereas, in order, to ensure appropriate supervision of
                 distillation operations, distillers should be subject to a
                 system of approval ;
                  Whereas provision should be made for producers to
                 conclude delivery contrails with distillers subject to
                 approval by the intervention agency , in order to facili­
                  tate monitoring of the pioguvs til opet.ituins and of
                  the observance of 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 and, where necessary, to
                 limit the volume of wines which may be distilled ;
 ---pagebreak---                                                 - i -
          Whereas, however, the contracts system must be
          adapted in order to take into account the fact that
          there are producers who intend to have their wine
          distilled on their behalf and producers who them­
          selves possess distillation plants ; whereas, in the
          case of the latter producers, the absence of a contrac­
          tual obligation necessitates an official analysis of
          certain characteristics of the wine to be distilled ;
          Whereas provision should be made for the minimum
           price guaranteed to the producer to be paid to him .
          within a period comparable to that normally
          applicable in commercial sales ;
            Whereas thepriceof wine intended for distillation is not
            such as to enable the products obtained from this
           operation to be marketed normally ;
                                                           whereas direct marketing by distillers
is possible in the case of distilled wine of 85% vol or less but not in that of
a product of 86% vol or more ; whereas , therefore , in the case of wine intended for
processing into the initial product , an aid should be fixed to enable it to be marketed
and provision should be made for the distilled wine , once it has been
processed into a product of 86% vol or more , to be delivered to an
intervention agency and for fixing the price at which it is to be
accepted ; whereas this operation should be financed                          by   the European
Agricultural Guidance and Guarantee Fund ;
                Whereas provision should be made for producers who
                have concluded a delivery contract to terminate it
                where the     market situation     would enable them     to
                dispose of the wine more profitably ; •
                Whereas, on the basis of experience gained , a certain
                margin should be allowed for the quantity of wine
                specified in the delivery contracts ; whereas, moreover,
                 provision should be made , in the event of chance
                circumstiiiH e«. or font iini / tim , for aid to be paid in
                 respect of (Jic qiunhty of wine which has actually
                 been distilled :
 ---pagebreak---                          - k -
Wluie.is , in onlcr to allow the distillation measure to
achieve its full purpose and in order to take account
of the reality of the market of wines intended for distil­
lation , it appears appropriate to allow these wines to
be processed into wine fortified for distillation both
by distillers and by manufacturers ;
Whereas the in.inutai ture of wine fortified for distilla­
tion must take place in the vicinity of the place where
the table wine is held , in order to limit transport costs
to distilleries a long distance away ; whereas authoriza­
tion of the manufacture of wine fortified for distilla­
tion in a Member State other than that in which the
producer's winery is located is not justified economi­
cally and is likely to create serious monitoring
problems ; whereas it seems appropriate, therefore, to
stipulate that the manufacture of wine fortified for
distillation may take place only in the country where
the table wine has been produced ; whereas it is
 further appropriate that Member States should be able
 to restrict the places at which wine fortified for distilla­
 tion may be processed in order to ensure the most
 appropriate lorm of supervision ;
 Whereas, in each Member State concerned, a body
 should be made responsible for implementing the
 provisions in question ;
 Whereas the addition of an indicator to the wine to be
 distilled is an efficient monitoring method ; whereas it
 should be stated that the presence * of such an indi­
 cator must not prevent the movement of these wines
 or of the products obtained therefrom.
     I
 ---pagebreak---                                 - 5 -
HAS ADOPTED THIS REGULATION :
                            Article 1
1 . Producers wishing to distil red table wines produced by them ,
    pursuant to Article 15 of Regulation ( EEC ) No 337/79i shall
    conclude contracts for the delivery of table wines , hereinafter
    referred to as " contracts ", with an approved distiller and shall
    submit them to an intervention agency by 31 March 1982 at the Latest .
2 . Member States shall inform the Commission each day of the
    quantities of table wine covered by the contracts presented on
    the previous day to intervention agencies .
3 . If the information referred to in paragraph 2 shows that the
    contracts submitted to intervention agencies account for a
    quantity of Less than 7 miLLion hectoLitres by the date referred
    to in paragraph 1 , the Commission may decide to extend the deadline
    under the procedure provided for in Article 67 of Regulation ( EEC )
    No 337/79 .
k . If the information referred to in paragraph 2 shows that , before
    the final date for submission of contracts to intervention agencies ,
    the contracts submitted account for a quantity greater than        7
    million hectolitres , the Commission shall decide to terminate the
    submission of contracts .
5 « Where the total quantity of table wines covered by the contracts
    submitted   to the intervention agencies exceeds     7  million
    hectolitres , the Commission may decide under the procedure provided
    for in Article 67 of Regulation ( EEC ) No 337/79 that distillation
    shall be confined to that quantity . In that    case , the quantity
    covered by each contract shall be reduced proportionately .
6 . For the purposes of this Regulation , each producer may send not
    less than 50 hectolitres of table wine for distillation .
 ---pagebreak---                             - 6 -
                           Art nie 2
 I-    Delivery        contr.tits shall not be valid under
this Herniation unless approved. before 16 April 1982
by the intervention ngenrv of the Member State in
which the wine IS held                when the contract is
concluded . These contracts shall include :
(a) the obligation for the distiller to purchase the
      quantity of table wine entered in the contract .
(b) – cither the obligation (or the distiller to process
          the wine into a product with an alcoholic
          strength by volume of 8f % or more ,
      – or the obligation for bini to process the wine
          into a product with an alcoholic strength by
          volume of 85 % or less .
 2.     Where distillation takes place in a Member State
 other than that in which the contract is approved, the
 intervention agency which approved the contract shall
 forward a copy of it to the intervention agency of the
 first Member State .
                           Artide 3
 1.     Producers :
 – who themselves possess distillation plants and
      who intend to carry out the distillation referred to
      in Article I , or
 – who intend to have their wine distilled on their
      behalf in an approved distiller's plant.
  Shall so inform, before 3 -] M arc h 1 982 ,. the intervention
  agency of the Member State in whose territory their
  winery is located by means of a declaration of delivery
  for distillation , hereinafter called 'declaration' . If the
  distilling plant is located in another Member State,
  they shall also inform the intervention agency of that
  Member State by means of a copy of the declaration .
  2.     For the purposes of this Regulation, the contract
  referred to in Article I ( 1 ) shall be replaced :
  – in the case specified in the first indent of para­
       graph I , by the declaration,
  – in the case specified in the second indent of para­
       graph 1 , by the declaration accompanied by a
       contract for delivery for distillation oil the
       producer's behalf concluded between the producer
       and the distiller.
   3. The declaration referred to in paragraph 1 shall
   noi be vaUci under chu» Régulation unlcss approved
  In-fore 16 April J982 by the intervention agency of the
   Member State on whose territory the producer's
  winery is located.
 ---pagebreak---                        - 7 -
This declaration shall comprise :
– either the obligation for the distiller to process the
    wine into a product with an alcoholic strength by
     volume of X6 % or more ,
– or the obligation for the distiller to process the
     wine into a product with an alcoholic strength by
     volume of 85 % or less .
4.     In the case referred to in the first indent of para­
graph I , a sample of the wine to be distilled shall lie
t.iken , under the supervision of an official body of the
Member State on whose territory the producer's
winery is situated , for analysis, by an official labora­
tory, of its actual alcoholic strength by volume , total
acidity, volatile acidity and sulphur dioxide content.
The producer shall forward the results of this , analysis,
certified by an official body, to the intervention
agency of the Member State where the distillation
took place .
 V     A representative of an official body shall check
ihe tjuantity of wine distilled and the date of distilla­
tion .
6.     Producers who have lodged a declaration shall be
obliged to distil, or to arrange for the distillation of ^
the wine covered by that declaration .
                          Artide 4
 1.    The minimum buying-in price for table wines
for distillation shall be fixed at 2.^+5 ECU per
hectolitre per % vol .
These wines must have an actual alcoholic strength by
volume of more than 9-5 % .
 2.    The prices referred to in paragraph 1 shall apply
 to bulk merchandise ex producer's premises.
 ---pagebreak---                                    - 8 -
                       Article 5
1 . The intervention agency of the Member State in which the
    distillation has taken place shall pay an aid for the wine distilled
    where it has been processed into a product with an alcoholic
    strength of 85% vol or less .
2 . The       aid is hereby fixed at 1.80 ECU per hectolitre per % vol .
3 . Distillation products with an alcoholic strength of 86% vol or
    more shall be delivered by the distiller to an intervention agency .
k . When making a delivery as referred to in paragraph 5 , the distiller
    shall furnish proof that he has paid the producer , as a minimum ,
    the price referred to in Article       within thirty days at the latest
    following entry into the distillery of the total quantity of wine
    covered by the contract .
5 . The intervention agency is obliged to purchase the products offered to it
    by the distiller .
    In the case of products with an alcoholic strength of 36% vol or
    more and meeting the analysis requirements laid down by the Member
    State concerned , the price paid by the intervention agency shall
    be 2.90 ECU per hectolitre per       vol .
    In the case of products with an alcoholic strength of less than 96% vol
    but not less than &b% vol , the price referred to in subparagraph 2
    shall be reduced by 0.17 ECU per hectolitre per % vol .
    These prices shall apply to bulk merchandise free at the storage
    facility of the intervention agency .
 ---pagebreak---                                                  - 9 -
6.   Financing by the European Agricultural Guidance and Guarantee Fund ,
     Guarantee Section , of intervention agencies' costs arising from products
     accepted is hereby fixed at 2.15 ECU per hectolitre per % vol .
7.   Regulation ( EEC ) No 729/ 70 shall apply to the EAGGF financing referred
     to in paragraph 6 .
                                         Article 6
1 . When the purpose of distillation is to obtain a product of an
    alcoholic strength of 85$ vol or less , payment of the minimum
    buying-in price referred to in Article k and of the aid referred to
    in Article 5 shall be governed by this Article .
2.            When the total quantity of wine covered by the contract
       enters the distillery, the distiller shall pay the
       producer at least the difference between the minimum
       liuying-in price referred to in Article 4 and the aid
       referred to in Artule S.
3 . By way of derogation from paragraph 2 , the distiller shall pay to
    the producer the minimum buying-in price referred to in Article k
    when the total quantity of wine covered by the contract enters the
    distillery in cases where distillation takes nlace in a Member State
    other than that of the intervention agency which approved the
    contract or where a clause to this effect has been incJuded in the
    delivery contract .
               When proof is supplied that the total quantity of
         wine appearing in the contract has been distilled, the
         intervention agency shall pay to the producer or, in <■
         tlu case referred to in paiagiaph .3, to the distiller, the
         amount referred to in Article 5 ( 2).
         Where the amount is paid to the distiller, the Utter
         shall supply proof that he has paid to the producer
          the minimum buying-in price referred to in Article 4.
 ---pagebreak---                                           -   10 -
              9-     I ho producer or, in the case referied to in para­
              graph 3, the distiller, ni.iy ask lor the amount of ;ud
              referred to in AM . tit S ( 2) to be paid to hmi in
              advance on condition that he has lodged a security
              equal to llU",' . of the amount in the name of the
              intervention agency. I his security shall be given in
              the form of a guarantee by an establishment meeting
              the* criteria laid down by the Member State to which
              the intervention agency is responsible .
              The advance payment to the producer may not be
              made until alter tbe date ot the approval provided for
              in Annie 2 ( I ) or Article I ( I ).
              The advance payment to the distiller may not be
              made unless proof is supplied that the whole of the
              minimum price has been paid to the producer at the
              latest M) days following the date on which the total
              quantity of wine appearing in the contract entered the
              distillery .
              Subject to Article 1JL the security provided for in the
              first subparagraph shall not be released unless, within
              a specified period, evidence is provided that the total
              quantity of wine appearing in the contract has been
              distilled .
              When the security is released, the intervention agency
              shall make the adjustments required to take account
              of the margins provided for in Article 11 .
                                   Article 7
By way of derogation from Article 6 , Member States may make provision
for the minimum buying-in price referred to in Article ^ to be paid
to the producer by the intervention agency in a single instalment and
within a prescribed period                    after distillation of the total quantity
of wine covered by the contract .
In such cases
- the distiller shall owe to the intervention agency the difference
   between the minimum buying-in price referred to in Article                 and the
   aid referred to in Article 5 |
- the producer may ask for the minimum buying-in price referred to in
   Article ^ to be advanced to him in accordance with the terms of
   Article 6(b )*
                                   Article o
1 . When the purpose of distillation is to obtain a product of an
    alcoholic strength of 86% vol or more , payment of the minimum
    buying-in price referred to in Article and payment for the products
    delivered to intervention agencies shall be governed by this Article .
 ---pagebreak---                                         -   11    -
2 . The minimum buying-in price referred to in Article k shall be paid
    by the distiller to the producer within thirty days at the latest
    following the date of entry into the distillery of the total quantity
    of wine covered by the contract .
3 . The buying-in price for the products referred to in Article 5(3 ) «
    on delivery by the distiller to the intervention agfency , shall be
    paid by the intervention agency to the distiller within sixty days
    at the latest following delivery of the merchandise , provided that
    proof is furnished that the minimum buying-in price has been paid
    to the producer within the period                       referred to in paragraph ?..
                                           Art uh 9
                  Distillation operation *, may not take place after
                   31 August 1982 .
                                           Ärtiile 10    »
                  Should tlu- average price*, tor not less than SO % of
                  the quantities quoted ot a type of table wine, exceed
                  90% ot the activating price lor that type of wine, it
                  may be decided that delivery contracts for wines of
                  this type m.iy be terminated wholly or in part at the
                  request of the producer.
                  Termination of the contract shall be permitted only in
                  cases where the amounts paid by the intervention
                  agency are refunded .
                                          Artiih 11
                  A margin of 10 % more or less than the quantity of
                  wine indicated in the contracts referred to in Article I ,
                  subject to the                                  amount
                  provided for in Article I (6). shall be permitted for the
                  quantity of wine actually delivered to the distillery .
                  '1 he intervention agency shall pay the aid provided for
                  in Article 5 for the quantity ot wine which has
                  actually been distilled, within the margin referred to
                  in the first subparagraph .
 ---pagebreak---                                 -    12   -
                              Attiiic 12
Where , owing to chance ciri umstain es or finu
                .ill or some ot tin- wme coveted 1>v .i conli.Kt
referred to 111 Article I cannot In- distilled , ( In- distiller
or (Ik- proilin.t r shall immediately so mlurni :
– thr intervention <i;>riuy ot the Member State in
       whose territory tin- distillation plant is loiated , and
– if the pioduccr's winerv is located in another
       Member State , the intervention agency ot that
       Member State .
In the cases referred to in the first paragraph , the inter­
vention agency shall pay the aid referred to in Article
5 in respect ot that quantity of wine which has actu­
ally been distilled
                               A,lnl,      13
  Ihc wine intended tor dr>hi ). ilJOii <«s provided for hi
 Aifule I ( I ) m.iy he processed into ouni tortihed tor
 ciisf ill.if K)ii by the dislilk'i oi by .in approved manufai *
 tiucr other than the producer.
 If the operation is tarried our by a manufacturer, Articles
 1 , 2 , 4 , 5 , 6 , 9, 10 . 11 and 12 shall apply subject to
 the provisions of the fo'lowing Articles .
                               A , li , h  1H
  I        In the case jctcrred to in the second subpara­
 graph ot Article 1 3» the contracts provided tor in
 Article I shall be concluded between a producer and a
 manufacturer .
  2.       These contracts shall involve the manufacturer
  in the obligation :
 (a) to purchase the quantity ot wine appearing therein
        and to process all ot it into wine fortified for distil­
        lation ;
 (b ) to deliver the wine fortified for (.list illation to all
        approved distiller ;
 (c) to pay to the producer not less than the price speci­
        fied in Article 4.
                               Artille 15
    I.      In the case referred to in the second j>uhpara-
  graph of Article Ij^wine fortified for distillation may
  be produced only in the territory of the Member        -  Stae
  where the producer's winery is located and within a
   specified period of time.
 ---pagebreak---                                         - 13 -
 2.         The manufacture of wine fortified for distillation ,
 as relerrc.l to in paragraph I. shall be subject to
 official supervision . For this purpose :
 – the documents) and tlu- registers) provided for in
        Article 5 5 of Regulation (I iLC) No .1.17/ 79 shall
        state the increase m actual alcoholic strength by
        volume, expressed as % vol, giving the strength
        before arid after the addition of the distillate to the
        wine ;
 – before the wine is processed into wine fortified for
        instillation , a sample shall be taken under the
        supervision of an official body for analysis by an
        official I il "oratory , or by a laboratory operating
         ujidc'i official supervision , of the actual alcoholic
          : r<_- ri        by volume . Two copies of the results of
        i!u . .i r i .i ! v sis nIi.i !! be seat to the manufacturer of
        the          wine      tornlicd      fe<r   distillation , who  shall
        foi 'A'.ird one copy to the intervention agency of the
         Mi inber Stale where the wine fortified for distilla­
         tion was produced
  V         Member States may restrict the places at which
  wine fortified for distillation may be processed to the
  extent that such restriction is necessary to ensure the
  most appropriate form of supervision .
                                         Αι Ια /ι    -ι6
  In the case refericd to in the second subparagraph ol
  Altaic 13»thc pine specified in Article 4 shall be
  p. i id by the manulactuier when the total quantity ol
  wine appearing in the contract has entered his installa­
  tions .
                                         ArtiJ< 17
  In the case referred to in the second subparagraph of
  Annie 1 3 » wine fortified for distillation .shall be
  distilled before a specified date . The product obtained
  tiom the distillation of wine fortified for that purpose
  shall have an alcoholic stiength by volume of 85 % or
  less .
                                         At tnh 18
   1.         I lie intervention agency of the Member State
  where             the wine        fortified     for distillation  has been
   manufactured shall pay to the manufacturer the
  amount referred to
-In Article 5(2 ) in accordance with
 Article 6 ( 10 or ( 5 ) as the case may be .
   2.        The aid shall be calculated by hectolitre and by
   % vol of the actual alcoholic strength of the wine
   before it is fortified for distillation .
    .1 . The margin " provided for in Article 11 sha |
    apply to the quantities of table wine delivered to thj
    manufacturer's installations .
 ---pagebreak---                                  - 1*t -
                                   I he ant sh.ill be paid for
  the quantity of table wine which , after being fortified
  for distillation , has actually been distilled .
                           A rtn U 19
f-or the purposes of this Regulation , 'an approved
distiller' shall mean a distiller included on a list to he
compiled by he competent authorities of the Member
States .
A p'T'.on on whose beh.ilt distillation is carried out
shall be treated in the same way as a distiller within
the meaning of the first p.uai'.i.iph .
Such distillation must be carried out by an approved
distiller .
For the purposes of this Regulation 'an approved
manufacturer' shall mean a manufacturer included on
a list to be compiled by the Memlwr States.
Approval of a distiller or of a manufacturer may be
withdrawn bv the competent authority if he does not
satisfy the obligations incumbent upon him , pursuant
to Community provisions .
                           Aftnli    20
 1.      I lie intervention agencies responsible for imple­
 menting this Regulation shall be those appointed by
 the Member States m accordance with Article 8 of
 Regulation ( TIC ) No
 2.      Without piejudice to Article 1 ( 1 ), Article ^ (})
 and Article 1$(l ), the competent intervention agency
 shall be that of the Member States in whose territory
distillation takes place .
                           Artide 21
 Member States shall take the measures necessary to
 ensure that this Regulation and , in particular , ihecks
 to prevent the deflection ot table wine from its
 end-use ot distillation , are implemented . To this end
 Member States may stipulate that an indicator may be
 used .
 Member States may not prevent the movement within
 their territory of a table wine intended for distillation
 or of distilled products obtained from such wine,
 because of the presence of an indicator.
                           At / idv 22
 This Regulation shall enter into force on the day of its
  publication in the Of/icijl Journal of the lum>[>eun
  Cnmmiinitus.
 ---pagebreak---                          - 15 -
This Regulation shall be binding in its entirety and directly
applicable in all Member States .
Done at Brussels ,
 ---pagebreak---                      FINANCIAL              STATEMENT
                                                                                        Date :  .
                                                                                                25 February 19c2
   1 . BUOGET HEADING :           1 1 Distillation of wine                             APPROPRIATIONS : 1982 : 22 0 tnECU
   2. TITLE : Draft Council Kep;ulati on layinp; down gonersl rules on the
                    distillation of table wines as provided for in Regulation ( fcftC )
                    iio 337/79 , Article 15
   3 . LÉGAL BASIS :
                                Article 15 of l< ovulation 3.57/79
  H. AIMS OF PROJECT :
                                To meet the serious crisis on the red wine market
                                by recourse to extra distillation
  5 . FINANCIAL IMPLICATIONS                    PERIOD OF 12 MONTHS    CURRENT FINANCIAL YEAR      FOLLOWING FINANCIAL YEAR
 5.0 EXPENDITURE
                                                                              (  ft ?     1              <         )
        - CHARGED TO THE EC BUDGET
          ( RE FUNDS / INTERVENTIONS )
                                                   138 M! ECU           130 m ECU
       - NATIONAL ADMINISTRATION                 ( maxi mum )           ( maxi mum )                  toi'.on entry
       - OTHER
 5.1 RECEIPTS
       - OWN RESOURCES OF THE EC
          V LEVIES / CUSTOMS DUTIES )
       - NATIONAL
                                                   Λ9Μ.           .. .1ÇLS5....        .... 3.986 .
 5.0.1 ESTIMATED EXPENDITURE
 5.1.1 ESTIMATED RECEIPTS
                                                    Measure a ffectc o ne             marketing y bar only
 5.2 METHOD OF CALCULATION
       Total amounts of wine to be distilled : a maximum of 7 million hectolitres
       of red wine ( 10° ), half ( 3«5 m hi ) for distillation to wine spirits and
       half to alcohol of over 86° .
       Ex pond ! ture : wine spirits                3-5 m hi x 10° x 1.8 () ECU/hl - 63 m ECU
                                  alcohol           3-5 m hi x 10° x 2.15 ECU/hl =                         75 m ECU
                                                                                                         138 m ECU ( max )
6.0 CAN THE PROJECT BE FINANCED FROM APPROPR I AT IONS ENTERE D IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET ?
                                                                                                                       YES /FC%
6.1      & i atfx 9WÖ    k £ 5c *       ÄUc   iftc               k ü 5c
6.2 WILL A SUPPLEMENTARY BUDGET BE NECESSARY ?
                                                                                                                      *»/ N0
6.3 WILL 'FUTURE BUDGET APPROPR IAT IONS OE NECESSARY ?
                                                                                                                     XBDC/ N0
OBSERVATION : 1
                         220 million ECU         for all distillation and an estimated                          120 millio
                         ECU for extra distillation . If the maximum quantity is
                         distilled , the difference ( i.e. 138 - 128 = 10 million ECU )
                         could be met from savings on other distillation operations .