CELEX: 51982PC0831
Language: en
Date: 1982-12-14
Title: Proposal for a COUNCIL REGULATION (EEC) laying down general rules for distillation operations involving wine and the by-products of wine-making (submitted to the Council by the Commission)

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COM (82) 831
Vol. 1982/0254
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 ---pagebreak---   COMMISSION OF THE EUROPEAN COMMUNITIES
                                                 COM(82)831 final.
                                                 Brussels , 14 December 1982
                                               A " „•>"
                                             /W             V* v\
                                                  A
                                                    A     y^       C3
                                    Proposal for a
                                 COUNCIL REGULATION ( EEC )
           laying down general rules for distillation operations involving wine and
                              the by-products of wine-making
                        ( submitted to the Council by the Commission )
C0M(82 ) 831 final
 ---pagebreak---                                  EXPLANATORY MEMORANDUM
In 1977 ( l ) and again in 1980 ( 2 ) the Commission presented to the Council
proposals to improve and consolidate the general rules relating to certain
distillation operations .      No agreement has yet been reached within the Council .
The Council has since adopted far-reaching amendments to the basic Regulation ,
particularly in respect of distillation ( 3 ).
This being the case , the Commission is putting forward a new proposal for a
regulation laying down the general rules relating to certain distillation
operations involving wine and the by-products of wine-making ;      this new
regulation will replace current Regulations No 343/79 and No 349/79*
At the same time the Commission is withdrawing the proposal which it put
forawrd in 1980 and which has become irrelevant ( 2 ).
The adoption of this proposal for a regulation does not entail any financial
consequences for the Community budget .
 ( 1 ) COM ( 77 ) 667 final of 13 December 1977
 ( 2 ) COM ( 80 ) 232 final of 8 May 1980 .
 ( 3 ) Regulation No 2144/82 of 17 July 1982 , OJ No L 227 of 3.8.1982 .
 ---pagebreak---                                              - 2 -
                                         PROPOSAL FOR
                          COUNCIL REGULATION ( EEC )
          laying down the general rules for certain distillation operations
                  involving wine and the by-products of wine-making .
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
Having regard to Council Regulation No 337/79 of 5 February 1979 on the common
organization of the market in wine ( l ), as last amended by Regulation ( EEC )
No 3082 /82 ( 2 ), and in particular Articles ll(3 ), 12a(4 ), 15(8), 39(7 ), 40(5 )
and 41(6 ) 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
( 3 ) » as last amended by Regulation ( EEC ) No 2008/82 ( 4 )» and Council
Regulation ( EEC ) No 349/79 of 5 February 1979 on the distillation of the
by-products of wine-making ( 5 ) laid down the conditions in which certain
distillation operations referred to in Regulation ( EEC ) No 337/79 were to be
carried out ;     whereas account being taken , on the one hand , of the amendments
which have been made to the latter Regulation since the adoption of the
abovementioned Regulations and , on the other hand , of the experience gained ,
it is necessary to amend these general rules and to bring them together in a
single regulation ;
(1)    OJ  No L  54 , 5 . 3.1979 , p.l
( 2)   OJ  No L 326 , 23.11.1982 , p.l
(3)    OJ  No L  54 , 5 . 3.1979 , p. 64
(4)    OJ  No L 216 , 24 . 7.1982 , p. 2
 (5)   OJ  No L  54 , 5 . 3-1979 , p. 84
 ---pagebreak---                                        - 3 -
Whereas it 13 necessary to determine the products which may be obtained by
distillation ;               1
Whereas it is necessary to foresee the quantitative effects which distillation
operations will have on the market ; whereas , for this purpose , it would seem
appropriate to require that producers wishing to deliver wine for one of the
distillation operations provided for in Articles 11 , 12a and 15 of Regulation
( EEC ) No 337/79 should submit a declaration of delivery for approval by the
intervention agency ;
Whereas Article 6 of Regulation ( EEC ) No 337/79 makes recourse to the
distillation operations provided for in Articles 11 , 12a and 15 of that
Regulation conditional on the producer 's compliance with certain obligations ;
whereas therefore , provision should be made i£or     both the distiller and the
intervention agency to receive proof that the producer has met these
obligations ; whereas the necessary provisions should be adopted to ensure
that no financial contribution is payable by the Community in cases where
producers have not met the abovementioned obligations ;
 ---pagebreak---                                        - 3a -
whereas the prices set for wines for distillation in Articles 11 , 12a and 15
of Regulation ( EEC ) No 337 /79 are usually such that the products obtained by
distillation cannot be disposed of under market conditions ;      whereas ,
therefore , criteria should be adopted for fixing the amount of the aid so as
to make possible the disposal of the products obtained ;
Whereas provision should be made that the minimum price guaranteed to
producers should be paid to the latter by the distiller , as a general rule ,
within a period which enables      producers to make a profit comparable to that
which they would have made from a commercial sale ;     whereas , as regards the
payment of aid to distillers by the intervention agencies , it is necessary to
set time limits which take account both of the need to avoid creating
financial problems for        distillers and of the time needed for the
completion of the administrative and supervisory tasks entrusted to the
intervention agencies ; whereas provision should be made for          advance
payment of aid to the distiller ;    whereas , to ensure that the intervention
agency is not exposed to unjustified risks , it is necessary to provide for a
svstem of contracts and securities ;
 ---pagebreak---                                         - 4 -
Whereas the quantities of wine which may be delivered for distillation as
referred to in Article 15(l ) or ( 2 ) of Regulation ( EEC ) No 337/79 are
limited ; whereas , therefore , the Commission should be regularly supplied with
particulars of the quantities of wine intended for distillation , so that it
can decide , at short notice if required , to halt the submission of
declarations and prevent the prescribed quantities from being exceeded ;
Whereas experience has shown that , where compulsory distillation is concerned ,
it is not always easy for producers to calculate exactly the quantities of
products which they have to deliver in order to meet their obligation ;
whereas provision should be made to ensure that the expiry of the period
for delivery does not entail , for producers who have delivered almost all the
quantities required and have only to make some adjustments , consequences which
are out of proportion to the infringement committed , particularly as regards
the application of Article 6 ( 1 ) of Regulation ( EEC ) No 337/79 ; whereas , to
this end , it would seem advisable to consider that such producers have
fulfilled their obligations within the time limits , provided that the
intervention agencies authorize them to deliver the quantities outstanding , in
accordance with procedures laid down by the agencies ;      whereas , however , in
such cases no financial contribution should be payable by the European
Agicultural Guidance and Guarantee Fund ( EAGGF ) in respect of the quantities
delivered after           " the time limit ;
Whereas , as a consequence of the derogation provided for in the second
subparagraph of Article 39(l ) of Regulation ( EEC ) No 337/79 » it is possible to
obtain and to release to the market products for which the Community
accompanying document for wine products cannot be used ; whereas , to prevent
any fraudulent use of the products in question , the Member States concerned
should be obliged to introduce arrangements to control the movement of such
products ;
Whereas the obligation to distil represents a considerable constraint for the
 isolated 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 proportion to the return which he
 could hope to obtain on the alcohol distilled therefrom ; whereas such
 producers should therefore be exempted from the obligation to distil ;
 ---pagebreak---                                        - 5 -
Whereas , to simplify administration and to ensure fairness of treatment , the
quantities of wine covered by the obligations to distil referred to in
Articles 40 and 41 of Regulation ( EEC ) No 337/79 should not be included in the
calculation of the quantities of wine to be delivered for compulsory
distillation ;
Whereas producers who deliver their marc for the manufacture of oenocyanin
generally supply non-fermented grape marc ; whereas the treatment which such
marc undergoes for the extraction of oenocyanin makes it unsuitable for
fermentation and distillation thereafter ; whereas those producers should
therefore be exempted in proportion to their production of grape marc ;
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
wines produced in specified regions ( 6 ), as last amended by Regulation ( EEC )
No 2145 /82 ( 7j , a yield per hectare is fixed for each          quality wine
psr , which facilitates observance of the prohibition against the pressing of
wine lees and overpressing of grapes ; whereas , moreover , the marcs and lees
of white quality wines psr contain little alcohol ; whereas , therefore , a reduced
rate should be applied to these products ;
Whereas , if the wine to be delivered for distillation is used for the
manufacture of wine vinegar , the volume of alcohol delivered to
intervention agencies is likely to be reduced ; whereas , therefore , producers
should be allowed to discharge their obligation to distil by delivering to the
 vinegar industry the wine which would otherwise be necessary to make up the
 quantity for compulsory distillation ;
Whereas , where the by-products of wine-making are withdrawn under supervision
in accordance with Article 39(4 ) and ( 5 ) of Regulation ( EEC ) No 337/79 , it is
important to ensure that all by-products of the processing of grapes have been
withdrawn by the end of the wine year in which they were produced ; whereas ,
for this purpose , provision should be made for an appropriate monitoring
system ;
 ( 6 ) OJ No L 54 , 5.3.1979 , p. 48
 ( 7 ) OJ No L 227 , 3.8.1982 , p. 10
 ---pagebreak---                                           - 6 -
Whereas , the proof required that mar , lees or wine have been delivered to a distiller
should differ according to whether the distiller is established in the same
Member State as the producer or in another Member State ;
Whereas distillers may , in accordance with Article 39(6 ), Article 40(4 ) or
Article 41 ( 5 ) of Regulation ( EEC ) No 337 /79 , either qualify for aid in respect
of the product to be distilled or deliver to the intervention agency the
product obtained by distillation ;      whereas the amount of the aid should be
fixed in the light of the market price for the various products which may be
obtained by distillation ;
Whereas , to qualify for the aid , the parties concerned must lodge an
application accompanied by a number of supporting documents ; whereas , to
ensure that the system operates uniformly in all Member States , time limits
for the lodging of applications and for the payment of aid to distillers
should be laid down ;    whereas it is also advisable to make proportional
allowance for distillers who , although they have met their principal
obligations , are late in furnishing proof thereof ;
Whereas the price to be paid by the intervention agencies for the products
delivered to them should be fixed in the light of the average cost of transport
 and distillation of the the product in question ; whereas , to avoid any
discrimination between operators because of the distance between their
premises and the various warehouses of the intervention agencies , provision
should be made for adjustments to the buying-in price for            products to be
delivered ;
Whereas a single standard price should be fixed for            products delivered to
 intervention       agencies in connection with the distillation operation
 referred to in Article 39 of Regulation ( EEC ) No 337/79, irrespective of the
 origin of the products ;
 ---pagebreak---                                        - 7 -
Whereas , in certain regions of the Community , the relation between the
quantities of marc and those of wine and lees is such that the average
distillation costs differ from those used to calculate the standard price ; >
whereas , as a result of this situation , it is , or is liable to be ,
economically impossible in certain of these regions to achieve the objective
of the obligation to distil the by-products of wine-making ; whereas it is
therefore necessary to fix , at the same time , both a standard price and prices
differentiated according to the origin of the alcohol , while leaving it to the
Member States to decide whether such differentiated prices should be applied
in regions where '     application of the standard price would lead 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 %AGGF ;
 whereas it is therefore necessary to correlate the prices
differentiated according to the origin of the alcohol and the standard price ;
whereas this correlation must be such that the weighted average of the prices
differentiated according to the origin of the alcohol does not exceed the
 standard price ;
Whereas , to avoid the risk of any disturbance of the market in spirituous
 beverages , it should be possible to stipulate that only neutral alcohol may be
 produced by the distillation of wines suitable for the production of certain
 spirituous beverages with a registered designation of origin ; whereas , in the
 case of producers who have distillation facilities and distil their own
 product , provision should be made for-' supervi sion by     an official body and
 for      analysis of certain characteristics of the products to be distilled ;
 Whereas , in the absence of an organized Community market in ethyl alcohol , the
 intervention agencies responsible for marketing the alcohol which they are
 obliged to take over following the distillation operations referred to in
 Articles 39 and 40 of Regulation ( EEC )^ 337/79 have to re-sell it at less
 than the buying-in price ; whereas provisions should be made for the
 difference between the buying-in price and the selling price for such alcohol
 to be borne , at a standard rate , by the Guarantee Section of the EAGGF ;
 ---pagebreak---                                         - 8 -
Whereas , for the purposes of the payment of the aid , the calculation of the
quantities of products which may be delivered to the intervention agencies and
the verification of compliance with the obligations regarding distillation , it
is necessary to know the characteristics of the products delivered for
distillation ; whereas , therefore , a system of checks should be introduced ,
based as a general rule on verification that the characteristics of the wine
delivered are as indicated on the accompanying document ;
Whereas steps should be taken to cover unforeseeable circumstances or force
majeure which may prevent distillation from taking place as planned;
Whereas , to take account of the actual situation on the market in wine for
distillation , both distillers and • makers           should be authorized to
fortify such wine for distillation and the necessary adjustments should be
made to the overall arrangements ;
Whereas Member States should be able to restrict the places at which wine may
be fortified for distillation in order to ensure the most appropriate form of
 supervision ;
Whereas the addition of an indicator to wine for distillation is an effective
method of supervision ; whereas it should be stipulated that the presence of
 such an indicator shall be no bar to free movement of such wine or of the
 products obtained therefrom ,
 HAS ADOPTED THIS REGULATION :
 ---pagebreak---                                        _ 9 _
                                     Article 1
This Regulation lays down :
(a )   in Title I , the general rules for the distillation operations provided
       for in Articlesll , 12a and 15 of Regulation ( EEC ) No 537/79 ;
( b)   In Title II , the general rules for the distillation operations provided
       for in Articles 39 » 40 and 41 of Regulation ( EEC ) No 337/79 ;
(c)    in Title III , the general rules applicable to all the distillation
       operations covered by Titles I and II .
                                     Article 2
1 . For the purposes of this Regulation :
(a)    producer means any natural or legal person or group of persons who make
       wine or any natural or legal person subject to the obligations referred
       to in Article 39 of Regulation ( EEC ) No 337/79 «
(b)    distiller means any natural or legal person or group of persons who
       - distil , either on their own behalf or on behalf of others , wine or
         fortified wine or the by-products of winemaking or of any other form
         of processing of grapes , and
       - have been approved by the competent authorities in the Member State on
         whose territory the distillation     plant        is located ;
(c)    competent intervention agency means :
       - where the reception and approval of declarations relating to the
         delivery of wine for distillation or fortification are concerned , the
         intervention agency designated by the Member State on whose territory
         the wine is located at the time when the declaration is submitted ;
       - in all other cases , the intervention agency designated by the Member
         State on whose territory the distillation or fortification of wine is
         carried out .
 ---pagebreak---                                             _ io.
2 . For the purposes of applying Title I , any natural or legal person , other
      than the processor fortifying wine for distillation , who :
           - buys wine in order to have it distilled by a distiller , and
           - pays to the producer , for       wine bought from the latter , not less
             than the price specified    /in Article
             11(2 ), Article 12a(3 ) or Article 15(5 ) of Regulation ( EEC ) No 337/79 ,
             as the case may be , where the price in question applies to bulk merchandise
             ex producer 's premises ,
      shall be considered as a producer .
                                          Article 3
1 . Only the following may be obtained by the distillation operations referred
      to in Article 1 :
(a )       neutral alcohol with an alcoholic strength of at least 96$ vol , or
(b)        wine spirit or marc spirit meeting the qualitative requirements laid
           down in the Community rules or , where no such rules apply , by the
           national provisions applicable thereto , or
(c)        raw alcohol with an alcoholic strength of at least 52$ vol .
     Where the product specified at point ( c ) in the first subparagraph is
      obtained , it may be used only :
      ( i ) for the production of an alcoholic beverage under official supervision ;
    ( ii ) for processing into one of the products specified at point ( a ) and
             ( b ), under official supervision ,
  ( iii ) for industrial purposes subject to conditions to be laid down .
            Member States shall take the necessary measures to ensure compliance
      with the obligation laid down in the second subparagraph .
2 . If wine suitable for           production of certain spi ri tuous beverages wi th a regi stered
      designation of origin is delivered to undergo one of the distillation
      operations specified in Article 1 , it may be decided that only a product as
      specified at point ( a ) in the first subparagraph of paragraph 1 may be obtained
       by the distillation of such wine .
 ---pagebreak---                                           _ 11 .
                                        TITLE I
General rules relating to the voluntary distillation of wine .
                                       Article 4
1 . Any producer intending to deliver wine of his own production for one of the
    distillation operations specified in Article l(a ) for which he satisfies
    the conditions laid down in the Community rules shall submit to the
    competent intervention agency , by a date to be specified , a written
    declaration relating to the delivery of the wine for distillation ,
    hereinafter referred to as the " declaration ".
2 . The declaration referred to in paragraph 1 shall specify at least the
    quantity , the colour and the actual alcoholic strength by volume of the
    wine .  The producer may not deliver the wine for distillation unless the
    declaration has been approved by the competent intervention agency by a
    date to be specified .
3 . Except in the case of the distillation referred to in Article 12a of
    Regulation ( EEC ) No 337/79 , the quantity of wine delivered for distillation
    must be not less than a minimum quantity to be determined , and in no
    circumstances less than 10 hi .
4 . The distiller shall pay to the producer for the wine delivered to him at
    least the price specified , in Article 11(2 ), Article 12a ( 3 ) or Article
    15(5 ) of Regulation ( EEC ) No 337 / 79 , as the case may be , such prices to
    apply to bulk merchandise ex producer 's premises .
5 « The minimum buying-in price referred to in paragraph 4 shall be paid by the
    distiller to the producer within three months of each consignment of wine
    entering the distillery .
 ---pagebreak---                                          - 12 -
                                       Article 5
1 . Producers subject to the obligations referred to in Article 6(l ) of
     Regulation ( EEC ) No 337/79 shall provide the distiller to whom they deliver
     wine to undergo one of the distillation operations specified in Article
     l(a ) with proof that they have satisfied the said obligations during the
     reference period fixed in accordance with Article 6(3 ) of the said
     Regulation .
2 . For each producer from whom he has received deliveries of wine , the
     distiller shall forward to the competent intervention agency , within a per­
     iod    get by the latter , a file containing :
(a )     the proof referred to in paragraph 1 ;
(b)      for each delivery , a statement of the quantity , colour and actual
         alcoholic strength by volume of the wine , together with the number of
         the document provided for in Article 53(l ) of Regulation ( EEC ) No 337/79
         and used for the transport of the wine to the distiller 's premises .
     The distiller shall submit to the intervention agency , by a date to be
     fixed , an aid application either for all the wine delivered by the producer
     or for each delivery of wine from the same producer and shall provide proof
     that the corresponding quantities of wine have been distilled .
3 « If       distillation is carried out by the producer himself in his capacity
     as an approved distiller , the file ,      aid application and     proof of
     distillation referred to in paragraph 2 shall be submitted to the competent
     intervention agency by the producer .
4 . Where the distiller is established in a Member State other than that where
     the producer 's winery is located , the intervention agency of the Member
     State in which       distillation takes place shall forward a copy of the
     file referred to in the first subparagraph of paragraph 2 to the
     intervention agency of the Member State on whose territory the producer s
     winery is located . The latter agency shall make the necessary checks and
     shall communicate the result of these checks to the former agency .
5 . The intervention agency shall pay the distiller the aid specified for the
     distillation in question within two months of the submission of the proof
     referred to in the second subparagraph of paragraph 2 .
 ---pagebreak---                                           13
6 . Should the verification of the file and the application reveal that , in
    respect of all or part of the wine delivered , the producer does not satisfy'
    the conditions laid down by the Community rules for the distillation in
    question , the competent intervention agency shall inform the distiller and
    the producer accordingly .   In such cases , the minimum buying-in price
    referred to in Article 4(4 ) shall be reduced in respect of all or part of
    the wine delivered , by an amount equal to that of the aid .
                                      Article 6
1 . The                aid to be paid to the distiller for the wine which has
    undergone one of the distillation operations provided for in Articles 11 ,
    12a and 15 of Regulation ( EEC ) No 337/79 shall be fixed per % vol . of
    alcohol and per hectolitre of the product of distillation on the basis of
    the minimum buying-in price fixed for the distillation in question , the
    standard transport and processing costs , the technical losses and the
    market price for the products of distillation .
2 . The                aid granted in respect of wine spirits ^.may not exceed
    the aid granted in respect of neutral wine alcohol .
    The   aid granted in respect of raw wine alcohol may not exceed the aid
    granted in respect of wine spirits .
                                      Article 7
1 . The distiller may request that an amount equal to the aid referred to in
    Article 6 be advanced to him on condition that :
        - he has submitted to the intervention agency for approval , before a
          date to be fixed , a delivery contract concluded with a producer ;
        - he has lodged , on behalf of the intervention agency , a security equal
          to 12(# of the aid .
    The security referred to in the second indent of the first subparagraph
    shall be provided in the form of a guarantee given by an establishment
    meeting the criteria laid down by the Member State to which the
    intervention agency belongs .
 ---pagebreak---                                          - 14 .
    The intervention agency shall inform the interested parties , within a
    period to be specified , of' the outcome of the approval procedure .
    Advances may be paid only after the date on which the delivery contract
    was approved .
2 . Subject to                      Article 20, the security referred to in
    paragraph 1 shall be released only if , within periods to be specified ,
    proof has been supplied that :
       - a quantity of wine representing not less than 90% and not more than
          110$ of the quantity stated in the contract has been distilled ;
       - the minimum buying-in price has been paid to the producer within the
          stipulated period .
    For wine delivered to distilleries , a tolerance of 0.5$ vol . in the
    actual alcoholic strength stated in the delivery contract shall be
    permi tted .
3 - At the time when the security is released , the intervention agency shall
    make the necessary adjustments to take account of the tolerances specified
    in paragraph 2 .
                                       Article 8
1 . In the case of the distillation referred to in Article 15(l ) and ( 2 ) of
    Regulation ( EEC ) No 337/79 . the producer may not deliver for distillation a
    quantity of table wine greater than the quantity specified in the
    declaration .
2 . During the distillation referred to in paragraph 1 , the
    Member States shall periodically communicate to the Commission particulars
    of the quantities of table wine specified in the declarations submitted to
    the intervention agency .
3' Once the communications referred to in paragraph 2 indicate that the
    quantities specified in the declarations have exceeded a quantity to be
    determined under the implementing rules , the Commission shall decide to
    halt the submission of declarations .
 ---pagebreak---                                         - 15-
4 . Should the total quantity of table wine stated in the declarations
    submitted to the intervention agencies exceed the quantity determined in ,
    accordance with paragraph 3f it may be decided under the implementing rules
    that only the latter quantity should undergo distillation . In such cases ,
    the quantities which have been entered in the declarations and may be
    delivered for distillation shall be reduced proportionally .
                                      TITLE II
General rules relating to compulsory distillation .
                                      Article 9
1 . Producers subject to an obligation to distil under Articles 39 , 40 or 41 of
    Regulation ( EEC ) No 337/79 shall discharge their obligation by delivering
    to a distiller , before a date to be fixed , the quantities of product to be
    distilled as determined in accordance with the foregoing Articles and with
    the measures taken in implementation thereof .
2 . The competent intervention agency may allow producers who are subject to
    one of the obligations referred to in paragraph 1 , and who have delivered
    by the date fixed in accordance with paragraph 1 at least 90% of the
    quantity of products which they are obliged to deliver , to discharge their
    obligation by delivering the remaining quality before a date to be fixed by
    the competent national authority .
    In such cases :
    the buying-in price for the remaining quantities referred to in the first
    subparagraph and the price for the alcohol produced therefrom and delivered
    to the intervention agency shall be reduced by an amount equal to the aid
    fixed , in respect of the distillation operation in question , for neutral
    alcohol in accordance with the provisions of Article 14 ;
    for alcohol delivered to the intervention agency in accordance with the
    second indent of the first subparagraph of Article 39(6 ) and the second
    indent of the first subparagraph of Article 40(4 ) of Regulation ( EEC ) No
    337/79 , there shall be no EAGGF contribution to      expenditure by the
    intervention agency ;
-   no aid shall be paid for products of distillation not delivered to
    intervention agencies ;
    the obligation shall be considered to have been discharged by the time
    limit set in accordance with paragraph 1 .
 ---pagebreak---                                         - 16-
    Where use is made of this provision ,     the Member State concerned shall
    inform the Commission of ' the implementing provisions which it has adopted .
                                     Article 10
1 . The price to be paid by the distiller to the producer for the products
    delivered to the former for distillation under Article 39 of Regulation
    (EEC ) No 337/79 must not be lower than the buying-in price fixed annually
    by 1 August for the following wine year .
    This price shall be fixed per % vol per hectolitre of alcohol contained in
    the products in question .   It shall be not less than 3C$ ;£)r more than 40 X
    of the guide price for table wine of type A I applicable as from 16 December
    thereafter .
2 . The buying-in price referred to in paragraph 1 and the prices referred to
    in Article 40(3 ) and Article 41(4 ) of Regulation ( EEC ) No 337/79 shall
    apply to bulk merchandise ex producer 's premises .
                                     Article 11
1 . Pursuant to the second subparagraph of Article 39(l ) of Regulation ( EEC )
    No 337/79 , and in respect of the wine years 1983/84 to 1986 /87 , producers
    in the Greek and Italian islands , except Sicily and Sardinia , located in
    wine-growing zones C III a ) and C III b ) ;
       - shall be authorized to overpress grapes and to press wine lees ,
       - may be released from their obligation by delivering to a distiller the
          liquid product obtained by the operation referred to in the first
          indent .
    The Member States concerned shall introduce a system for monitoring the
    production and movement of the product referred to in the second indent of
    the first subparagraph and shall inform the Commission thereof .     This
    system shall provide at least for a document for the movement of the said
    product to distilleries and may involve :
       - an obligation upon the producer to notify the competent authority in
          advance if he intends to carry out the operation referred to in the
          first indent of the second subparagraph ,
 ---pagebreak---                                        - 17-
     - the addition of an indicator to the product obtained :
     - the use of the document referred to in Article 53(l)of Regulation ( EEC )
       No 337/79 for the transport of the products obtained to the
       distillery , subject to any adaptations necessary .
  The obligations referred to in Article 39 of Regulation ( EEC ) No 337/79
  shall not apply to :
     - producers who have not made wine or processed grapes in any other
       manner on cooperative premises and who , during the wine year in
       question , produced not more than 10 hectolitres of wine or must ;
     - wine producers subject to the obligations laid down in Article 40(l )
       or ( 2 ) or Article 41 , in respect of that part of their harvest which
       is covered by such obligations ;
     - producers who withdraw wine under supervision in accordance with
       Article 12(1 ) of this Regulation .
       It may be decided that the exemption referred to in the first indent of
       the first sub-paragraph shall apply , subject to conditions to be detei–
       mined , to producers who have not made wine or processed grapes in any
       other manner on cooperative premises and who , during the wine year in
       question , produce more than 10 hectolitres but pot more than 25 hecto-
        litres of wine or must .
  The percentage mentioned in the second subparagraph of Article 39(2 ) shall be
  reduced in the case of :
)    producers who deliver marc for the manufacture of oenocyanin ,
)    producers of quality wines psr , in respect of the part of the harvest
     which qualifies for this description .
  In the case of producers who deliver wine of their own production to the
  vinegar industry , the quantity of alcohol , expressed in terms of pure
  alcohol ,           contained in the wine delivered to the vinegar factory
  shall be deducted from the quantity of alcohol , expressed in terms of pure
  alcohol ,           contained in the wine to be delivered under Article 39(2 )
  of Regulation ( EEC ) No 337/79 .
 ---pagebreak---                                             18
                                       Article 12
1 . Only those producers whose vineyards are located in wine-growing areas
    where distillation represents a disproportionate burden may exercise the
    option mentioned in Article 39(5 ) of Regulation ( EEC ) No 337/79 *
    A list of the wine-growing areas concerned shall be drawn up by the
    competent authorities of the Member States .       The latter shall inform the
    Commission of this list .
2 . For the purposes of implementing Article 39(4 ) and ( 5 ) of Regulation ( EEC )
    No 337 /79
        - the quantity of marc and lees to be withdrawn in relation to the
          quantity of grapes used , and
        - the quantity of alcohol contained in the marc and lees to be withdrawn
    shall be fixed for each wine-growing year by detailed implementing rules
    or , failing this , by provisions which the Member States concerned shall
    adopt and notify to the Commission .
    By means of the detailed rules or provisions referred to in the first
    subparagraph a system shall be introduced for monitoring withdrawals of the
    by-products of the processing of grapes , as referred to in Article 39(4 )
    and ( 5 ) of Regulation ( EEC ) No 337 /79 , for the purpose of ensuring that all
    the said by-products have been withdrawn by the end of the wine-growing
    year in which they were produced .
    The monitoring system referred to in the second subparagraph shall involve
    at the least the weighing of the products withdrawn . This may be done by
    the sampling of representative lots .
                                       Article 13
1 . The distiller shall provide the producer , as proof of delivery , with a
    certificate stating at least the nature , the quantity and the alcoholic
    strength by volume of the product delivered , together with the date of
    delivery .
     However , if a producer delivers
    the products which he is to have distilled to a distillery located in a
    Member State other than that in which the said products were obtained ,
 ---pagebreak---                                  - 18a _
the distiller shall require the intervention agency of the Member State in
which distillation takes place to certify , on the official document
covering     transport of the products , that the latter have been taken
over by the distillery . The di st i I Ler sha 1 1 forward to the producer a copy of the
 ---pagebreak---                                        - 19 -
    said document , thus certified , within one month of reception of the products to be
    distilled .
P. The minimum buying-in price laid down for the distillation operation in
    question shall be paid by the distiller to the producer within chree
    months of each consignment of products entering the distillery .
                                     Article 14
1 . The aid to be paid to the distiller for products which have
    undergone one of the distillation operations referred to in Articl® '39 , 40
    and 41 of Regulation ( EEC ) No 337/79 shall be fixed per % ■ vol of alcohol and
    per hectolitre of the product of distillation on the basis of the minimum
    buying-in price fixed for the distillation in question , the standard
    transport and processing costs , the technical losses and the market price
    for the products of distillation .
2 . The aid granted in respect of spirituous beverages may not exceed the amount
     of the aid granted in respect of neutral alcohol .
    The aid granted in respect of raw alcohol may not exceed that of the aid
     granted in respect of spirituous beverages .
                                     Article 15
In order to qualify for the aid referred to , as the case may be , in
Article 39(6 ), Article 40(4 ) or Article 4l(5 ), >1 Regulation ( EEC ) No 337/ 79,
 the distiller shall submit an application to the intervention aqency before a
 date to be fixed and shall provide proof of distillation .
The intervention agency shall pay the distiller the aid fixed for the
distillation operation                  in question within . two months of
 submission of the proof of distillation .
 The distiller must provide the intervention agency , before a date to be fixed ,
with proof that he has paid the producer the minimum buying-in price for the
product to be distilled within the period specified .
 ---pagebreak--- If such proof is not provided before the date fixed in accordance with the
 first subparagraph , the aid paid shall be recovered by the intervention
agency . If , however , the proof is provided after the ' time limit
but by        another time limit to be set and if the delay is not due to serious
negligence by the distiller , the intervention agency shall recover 2QfjL of the
aid paid .
 In the circumstances referred to in the first sentence of the second subparagraph ,
 the intervention agency shall , by a date to be fixed , pay the producer a sum equal
  to the aid .
                                  Article 16
1 . Distillers who do not qualify for aid may deliver to the intervention
    agency products with an alcoholic strength of 92?? or more .
    The operations necessary to obtain the product referred to in the first
    subparagraph may be carried out either at the premises of the distiller who
    delivers the said product to the intervention agency or at the premises of
    a jobbing distiller .
2 . The buying-in prices referred to in the third and fourth subparagraphs of
    Article 39(6 ), the third and fourth subparagraphs of Article 40(4 ) and th
    third and fourth subparagraphs of Article 41(5 ) of Regulation ( EEC ) No
    337 / 79 shall be fixed per hectolitre and per % vol of pure alcohol .
    They shall apply to bulk merchandise free at the warehouse of the
    intervention agency .   They shall be fixed on the basis of the minimum
    buying-in price for the products 'for the distillation operation in quest­
     ion standard transport costs for the products to be distilled and for the
    products of distillation ,      processing costs and     technical losses .
 ---pagebreak---                                          - 21 -
3 - At the same time aa the , standard price fixed in accordance with
    paragraph 2 , differentiated prices may be fixed for products delivered to
    the intervention agency under the third subparagraph of Article 39(6 ) i. of
    Regulation ( EEC ) No 337 / 79, depending on whether the product has been dis­
    tilled from grape marc , wine lees or wine , so that account is taken , where
    appropriate , of the differing costs and losses .
    The Member States may decide to apply differentiated prices where the
    application of the standard price would make it impossible , or could make
    it impossible , to have one or more of the by-products of wine-making
    distilled in certain regions of the Community .     The level of     prices
    fixed for the products distilled from the various by-products • must     be
    such that the weighted average of these prices does not exceed the standard
    price .
                                       Article 17
    The amount of the contribution from the EAGGF to expenditure incurred
by      intervention agencies in taking over the products of the distillation
operations referred to in Articles 39 and 40 of Regulation ( EEC ) No 337/79
shall be fixed at a standard rate per hectolitre and per % vol of alcohol on
the basis of the buying-in price for neutral alcohol taken into intervention
and the price for such alcohol on the Community market .
                                       TITLE III
                                     Common provisions
                                       Article 18
The distillation operations referred to in this Regulation may be carried out
  only during periods to be determined .
                                       Article 19
1 . The characteristics of the products delivered for distillation , and in
    particular the quantity , the colour and the alcoholic strength , shall be
    checked when the products enter the distillery on the basis of the official
    document covering the transport of the said products .
    The Member States may provide for such checks to be made by sampling .
 ---pagebreak---                                         - 22 -
    If , in accordance with the Community provisions in force , an accompanying
    document has not been made out , the product to be distilled shall be
    checked under arrangements that the Member States shall establish and
    communicate to the Commission .    These arrangements must guarantee the same
    degree of effectiveness as those provided for in the first subparagraph .
2 . If the distillation is carried out by the producer himself in his capacity
    as an approved distiller , a sample of the product for distillation shall be
    taken under the supervision of an official body of the Member State on
    whose territory the producer 's winery is located , so that an official
    laboratory may establish by analysis the actual alcoholic strength by
    volume , the volatile   acidity  ... and the sulphur dioxide content .
    The result of this analysis , endorsed by an official body , shall be
    forwarded by the producer to the intervention agency of the Member State
    where the distillation takes place .
    A representative of an official body shall check the quantity of product
    distilled and the date of distillation .
                                     Article 20
1 . Where ,  owing to   unforseeable circumstances or for reasons of force
    majeure all or part of the product to be distilled cannot undergo
    distillation :
        - the producer , if the unforeseeable circumstances or force majeure
          affected the product to be distilled while the latter was legally at
          his disposal , shall without delay inform the intervention agency of
          the Member State in which his winery is located ;
        - the distiller , in all other cases , shall without delay inform the
          intervention agency of the Member State in which the distillery is
          located .
2 . In the circumstances referred to in paragraph 1 , the intervention agency , once
    informed , shall decide on the measures which it considers necessary .
    In particular - it may defer the time limits .
 ---pagebreak---                                        - 23 -
    In the circumstances referred to in the first indent of paragraph 1 / arid where
    the producer 's winery and the distillery are located in two different
    Member States , the. intervention agencies of the two Member States concerned
    shall cooperate , by the direct exchange of information , for the purpose of
    implementing paragraphs 1 and 2 .
    In the circumstances referred to in the second indent of paragraph 1 , the
    intervention agency , once informed , may also authorize the distiller ,
    subject to the agreement of the producer in the case of a jobbing
    distiller , to transfer to another distiller his rights and obligations in
    respect of the quantity of products not yet distilled .
3 » The Member States shall inform the Commission of cases in which paragraph 1
    is applied and of the action taken in response to requests that the clauses
    relating to unforeseeable circumstances and force majeure should be invoked .
                                     Article 21
1 . A list of the distillers approved to perform the distillation operations
    referred to in this Regulation shall be drawn up by the competent
    authorities of the Member States .   These authorities may not include on the
    list approved distillers who are unable to obtain , by means of the
    distillation operations referred to in Title II , product
    alcoholic strength of at least 92% vol .
        Member States shall forward to the Commission , on 31 December 1983 at
    the latest , the list drawn up in accordance with the first sub-paragraph
    and shall notify the Commission of any subsequent amendments . The
    Commission shall publish that list and any amendments thereto in the
    Official Journal of the European Communities .
2 . The competent authority may withdraw approval from a distiller , either
    temporarily or permanently , if the latter does not meet his obligation
    under the Community rules .
 ---pagebreak---                                         - 24 -
                                      Article 22
1 . Wine which is to undergo one of the distillation operations referred to in
    this Regulation may be fortified for distillation .     In such cases , the
    product of distillation of such       fortified wine must be one of the
    products specified at point ( b ) of the first subparagraph of Article 3'(l ) .
2 . Wine shall be fortified for distillation only under official supervision .
    For this purpose :
       - the document(s ) and r ;ister(s ) . required under Article 53 of
         Regulation ( EEC ) No 3 ; '~9 shall show the ^increase in actual alcoholic
          strength by volume , expressed in % vol by indicating the strangth before and
         after addition of the distillate to the wine ;
       - a sample of the wine shall be taken under official supervision before
         it is fortified in order that the actual alcoholic strength by volume
         may be determined analytically by an official laboratory or a
         laboratory working under official supervision :
       - two copies of the analysis report referred to in the second indent
         shall be sent to the processor fortifying the wine and the processor
         shall transmit one of these copies to the intervention agency of the
         Member State in which the wine is fortified .
3 « Wine shall be fortified for distillation during the same period as that
    laid down in accordance with Article 18 for the distillation operation in
    question .  Article 23 shall apply , subject to any necessary adjustments .
4 . Wine fortified for distillation shall be distilled in accordance with
    detailed rules to be laid down .    Such distillation shall take place within
    a period            se t .
5 « Member States may restrict the number of locations at which wine may be
    fortified for distillation , should this be necessary to ensure that the
    most suitable method of supervision can be used .
 ---pagebreak---                                         - 25 -
                                      Article 23
1 . When the option mentioned in Article 22(l ) is exercised and where the wine
    is not fortified for distillation by the distilleror on his behalf , the
    producer shall submit to the competent intervention agency , for approval
    before a date to be fixed , a written declaration to the effect that the
    wine has been delivered for fortification .
    Wine may be fortified for distillation only by an operator approved by the
    competent authorities of the Member State on whose territory the operation
    is carried out .
2 . The declaration referred to in paragraph 1 shall be governed by the
    provisions of Article 4 , subject to the necessary adjustments .
3 . The processor fortifying the wine for distillation shall pay the producer ,
    for the wine delivered , at least the price referred to , as the case may be ,
    in Article ll(2 ), Article 12a(3 ), Article 15(5 ), Article 39(6 ), Article
    40(3 ) or Article 41(2 ) of Regulation ( EEC ) No 337/79 ; these prices shall
    apply to bulk merchandise ex producer 's premises .
    Subject to the necessary adjustments , the processor fortifying the wine for
    distillation shall be subject to the same obligations as the distiller
    under Articles 4 , 5 , 9 , 13 and 15 «
    The     aid             to be paid to the processor fortifying wine for the
    various distillation operations shall be fixed per % vol of actual alcoholic
     strength and per hectolitre of wine before fortification , on the basis of the
    minimum buying-in price for the distillation operation in question ,
    standard transport and processing costs and the market price for the
    product of distillation .
A. The aid shall be paid by the competent intervention agency to the processor
     fortifying wine for distillation on condition that he provides a security
    equal to 120$ of the aid to be received .
    Where the processor fortifies wine for the distillation operations governed
    by various provisions of Regulation ( EEC ) No 337/79 , a single security
     shall be provided ; it shall be equal to 120^ of all the aid to be paid to
     the processor in respect of the said distillation operations .
    The securities referred to in the first and second subparagraphs shall be
     provided in acc dance with the second subparagraph of Article 7(l ).
 ---pagebreak---                                         _ 26 _
     Subject to the provisions of Article 20 , the security shall he released
     only if , within  periods     to be set , proof has been furnished that the
     fortified wine has been distilled ; the security shall be released in
     proportion to the quantities in respect of which such proof has been
     furnished .
                                      Article 24
1 . The          States shall take the necessary measures to ensure that the
     provisions of this Regulation are applied , and in particular           measures
     to prevent products delivered to distilleries from being diverted to other
     uses .
     The         States may , for this purpose , require that an indicator be used ,
     subject to conditions to be laid down by implementing rules or , failing
     this , by national provisions .       Member States may not , on the ground of
     the presence of an indicator , prevent        movement within their territory
     of products intended for distillation or of distilled products obtained
     from the latter .
2 . Member States which exercise the option set out         in the second paragraph
     of paragraph 1 shall inform the Commission accordingly and shall notify the
     Commission of the provisions which they have adopted for this purpose . The
     Commission shall inform the other Member States .
                                      Article 25
In the absence of any provisions to the contrary, any periods ," dates or time .Limits
referred to in this Regulation or fixed pursuant thereto shall be laid down in
accordance with Regulation ( EEC , Euratom ) No 1182/71 • C8 )
                                      Article 26
Regulations ( EEC ) No 343 /79 and ( EEC ) No 349 / 79 are hereby repealed .
                                      Article 27
This Regulation shall enter into force on 1 September 1983 .
This Regulation shall be binding in its entirety and directly applicable in
all Member States .
Done at                                                 For the Counci I
                                                        The President
( 8 ) OJ No L 124 , 8.6.1971 , p.1