CELEX: 51976PC0274
Language: en
Date: 1976-12-01
Title: AMENDED PROPOSAL FOR COUNCIL REGULATION ( EEC ) ON THE COMMON ORGANIZATION OF THE MARKET IN ETHYL ALCOHOL OF AGRICULTURAL ORIGIN AND LAYING DOWN ADDITIONAL PROVISIONS FOR CERTAIN PRODUCTS CONTAINING ETHYL ALCOHOL

No C 309/2                          Official Journal of the European Communities                               31. 12. 76
                                                           II
                                                   (Preparatory Acts)
                                              COMMISSION
              Amended proposal for a Council Regulation on the common organization of the market
              in ethyl alcohol of agricultural origin and laying down additional provisions for certain
                                           products containing ethyl alcohol
              (Submitted   by the Commission to the Council pursuant to the second            paragraph   of
                                 Article 149 of the EEC Treaty on 7 December 1976)
THE COUNCIL OF T H E EUROPEAN COMMUNITIES,                     Whereas provision should be made to guarantee
                                                               production of the quantity of ethyl alcohol of
Having regard to the Treaty establishing the                    agricultural origin which corresponds with agricul-
European Economic Community, and in particular                  tural, economic and social requirements and
Articles 28, 42, 43, 113, 227 and 235 thereof,                 whereas excess production of this alcohol which
                                                                would run counter to the establishment of a balance
Having regard to the proposal from the Commission,             between production and possible uses should be
                                                                prohibited; whereas a market should therefore be
Having regard to the opinion          of the European          guaranteed for only a limited quantity of agricultural
Parliament,                                                    alcohol and whereas this quantity should be adapted
                                                                in the light of the abovementioned requirements and
Having regard to the opinion of the Economic and               of the possibilities for use in the reserved sectors;
Social Committee,
Whereas the operation and development of the                   Whereas, so that Community producers and users of
common market in agricultural products must be                  alcohol may make at least medium-term forecasts,
accompanied by the establishment of a common                   the limited quantity for which a market is guaranteed
agricultural policy, including a common organization           should be programmed and whereas, for that
of agricultural markets which may take various forms            purpose, this quantity should first of all be
depending on the product;                                      apportioned among the different alcohol-producing
                                                                agricultural    products     and    then    among     the
Whereas the conversion of certain agricultural raw              Community        producer      undertakings;     whereas
materials into ethyl alcohol of agricultural origin is         provision should be made for these mechanisms to be
closely linked with the economy of those raw                    applied with a certain degree of flexibility, especially
materials since it largely contributes to the realization      as regards alcohol obtained in connection with the
of their value; whereas this process may be of par-             intervention measures laid down in the Regulations
ticular economic and social importance for the                  on the common organization of the market in wine
economy of certain regions of the Community, or it              and on the common organization of the market in
may be a major source of income for producers of                fruit and vegetables;
certain agricultural raw materials; whereas in other
cases it enables products of unsatisfactory quality to
be disposed of, and also the short-term or permanent            Whereas, in order to provide a guaranteed market for
surpluses of certain products which cause serious               such alcohol, seeing that ethyl alcohol of
economic problems; whereas, lastly in the case of               non-agricultural origin can always be substituted for
certain products it is the only means of realizing their        it and can usually be produced at lower cost, it is
value;                                                          necessary to require that ethyl alcohol of agricultural
 ---pagebreak--- 31. 12. 76                          Official Journal of the European Communities                           No C 309/3
origin be utilized in reserved sectors while enabling          apply as appropriate the measures provided for in
those quantities of such alcohol which cannot be               this Regulation; whereas to that end provision should
disposed of in those sectors to be utilized in others,         be made for the issuing of import and export licences
and also to require the intervention agencies to buy           coupled with the provision of security guaranteeing
in at a set price the alcohol which is offered to them;        that the operations in respect of which the licences
                                                               were applied for will be carried out;
Whereas, to enable the agricultural alcohol, within
the limits of the guaranteed quantity, to be disposed          Whereas the creation of a single Community market
of in the reserved sectors whatever the price of the           for ethyl alcohol of agricultural origin involves the
alcohol-producing product, it is necessary to bring            introduction of a single trading system at the external
into balance the prices of agricultural alcohol of             frontiers of the Community; whereas this system,
various origins by levying or paying out, as the case          combined with the intervention -system, must
may be, a sum which takes account of the cost of the           comprise a system of import levies and export
raw material used, distilling costs and, where                 refunds in order to stabilize the Community market,
appropriate, traditional production conditions and             in particular by preventing price fluctuations on the
also to ensure the progressive modernization and               world market from affecting prices ruling within the
rationalization of the Community production                    Community;
machinery;
                                                               Whereas in principle this aim can be achieved
Whereas prices should be balanced at a relatively low          through the imposition on imports from third
level, by reference to the price of grain spirits;             countries of levies which take account of the effect on
whereas certain spirituous beverages will thereby be           production costs of the difference between the prices
placed at a competitive disadvantage compared with             of alcohol-producing agricultural products in the
other spirituous beverages obtained from alcohol;              Community and on the world market and of the
whereas the price-balancing mechanisms provided for            need to protect the Community distilling industry;
in respect of alcohol should therefore be extended
to the spirituous beverages thus placed at a
disadvantage, in order to permit the marketing of a
specified quantity of such spirituous beverages;               Whereas provision for the granting on exports to
                                                                third countries of a refund equal to the difference
                                                               between the prices of ethyl alcohol of agricultural
                                                               origin within the Community and on the world
Whereas, however, molasses alcohol can compete                 market would serve to safeguard Community
 with synthetic alcohol; whereas it is therefore               participation in international trade in ethyl alcohol of
necessary to exclude molasses alcohol from the                 agricultural origin and in products containing such
 marketing guarantees accorded for other types of              alcohol;
agricultural alcohol; whereas this new competitive
situation may endanger certain undertakings and
whereas provision should therefore be made for
 measures to alleviate such difficulties in certain cases;     Whereas, however, by reason of the special market
                                                               situation of certain spirituous beverages obtained
                                                               from cereals and exported to third countries and, in
                                                                particular, of the need for the Community distilling
Whereas controls of the production, movement and
                                                                industry to maintain competitive prices on the world
 destination of alcohol and spirituous beverages will
                                                               market, it is necessary to ensure that the
be necessary as a means of ensuring the stability of
                                                                alcohol-producing agricultural products utilized by
the market and its observation;
                                                               that industry are made available to it at a price lower
                                                               than that resulting from the application of the system
                                                               of levies and common prices; whereas for that
 Whereas in order to protect producers against unfair           purpose provision should be made for a production
 competition and consumers from confusion and                  refund to be paid for the manufacture of such
 deception, rules are required as to the designation and       beverages;
 presentation of products;
                                                               Whereas, in addition to the system described above,
 Whereas the competent authorities must be able to              and to the extent required by the market situation,
 keep the movement of trade continuously under                  provision should be made for prohibiting recourse to
 review, in order to assess the market trend and to             inward processing arrangements;
 ---pagebreak--- No C 309/4                         Official Journal of the European Communities                             31.12. 76
Whereas, in addition, the Community should be                 French     overseas departments,        the provisions
enabled to take the necessary measures to mitigate            concerning the Guarantee Section of the European
the difficulties arising from any shortage of ethyl           Agricultural Guidance and Guarantee Fund and the
alcohol;                                                      provisions adopted in respect of the products
                                                              specified in Article 1 (1) (d) and (e) should be applied
                                                              to the said departments;
Whereas the measures referred to above make it
possible to dispense with all other protective
measures at the external frontiers of the Community;
                                                              Whereas in order to curb the production of ethyl
whereas, however, the mechanisms provided for
                                                              alcohol of agricultural origin and spirituous
may in exceptional circumstances prove defective;
                                                              beverages, and also in order to ensure some
whereas, so as not to leave the Community market
                                                              structural improvement of such production, these
without defence in such cases against disturbances
                                                              products should be subject to a levy based solely on
which may arise therefrom, the Community should
                                                              the alcohol content;
be enabled to take all necessary measures without
delay;
                                                              Whereas the common organization of the market in
Whereas the establishment of a single market based            ethyl alcohol of agricultural origin must take
on a common price system would be jeopardized by              appropriate and simultaneous account of the
the granting of certain kinds of aid; whereas the             objectives set out in Articles 39 and 110 of the
provisions of the Treaty which allow the assessment           Treaty;
of aid granted by Member States and the prohibition
of aid which is incompatible with the common
market should therefore be applicable to ethyl
alcohol of agricultural origin;                               Whereas the still, fermented beverages falling within
                                                              heading No 22.07 of the Common Customs Tariff of
                                                              an actual alcohol strength exceeding 15 0 should be
Whereas, moreover, provision should be made for                covered by the common organization of the market
taking appropriate measures in respect of ethyl               in ethyl alcohol and whereas these products should
alcohol and spirituous beverages obtained from sugar           therefore be withdrawn from the common
cane in order to maintain the level of employment of          organization of the market established by Council
sugar cane producers in the French overseas                    Regulation (EEC) No 827/68 of 28 June 1968 on the
departments and to guarantee a fair income to these            common organization of the market in certain
producers;                                                     products listed in Annex II of the Treaty (1), as last
                                                               amended by Regulation (EEC) No             ;
Whereas certain transitional measures may prove
necessary to facilitate the transition from the present
 arrangements to the system arising from this                  Whereas, in order to facilitate implementation of the
 Regulation and the transition from one marketing             proposed measures, a procedure should be provided
 year to the next, and whereas provision should                for establishing close cooperation between Member
 therefore be made for the adoption of such measures;          States and the Commission within a Management
                                                               Committee;
 Whereas the Treaty does not specifically provide the
 powers necessary to enable the measures concerning
the reservation of sectors of utilization and those            Whereas the expenditure incurred by Member States
 concerning intervention in respect of certain                  as a result of their obligations under this Regulation
 spirituous beverages to be taken within the same              is to be borne by the Community in accordance with
 legal framework as that on which the common                   Articles 2 and 3 of Council Regulation (EEC) N o
 organization of the market in ethyl alcohol of                729/70 of 21 April 1970 on the financing of the
 agricultural origin is based; whereas those measures          common agricultural policy (2), as last amended by
 must consequently be taken on the basis of Article            Regulation (EEC) No 2788/72 (3),
 235 of the Treaty;
 Whereas, in view of the special importance of the             (!) OJ N o L 151, 30. 6. 1968, p. 16.
 production of ethyl alcohol of agricultural origin and        (2) OJ N o L 94, 28. 4. 1970, p. 13.
 of spirituous beverages for the economy of the               (3) OJ N o L 295, 30. 12. 1972, p. 1.
 ---pagebreak--- 31.12. 76                               Official Journal of the European Communities                              No C 309/5
 HAS ADOPTED THIS REGULATION:                                      — under (c), rules supplementing the provisions
                                                                        applicable to these products in connection with
                                                                        the respective common organizations of the
                           Article 1
                                                                        market in fruit and vegetables and in wine,
                       Products covered                            — under (d), rules concerning conditions for release
                                                                        to the market and the possible introduction of an
                                                                        intervention and price system,
 1.     This Regulation shall apply to the following
products:                                                          — under (d) and (e), arrangements governing trade.
       CCT heading N o                   Description               3.      For the purposes of this Regulation 'ethyl
                                                                   alcohol of agricultural origin' means the liquid
(a) 22.08 A I                 Denatured ethyl alcohol of
                                                                   obtained by distillation, after alcoholic fermentation,
                              any strength, of agricultural        from       alcohol-producing      agricultural   products,
                              origin                               excluding:
     22.08 B I                Undenatured ethyl alcohol of
                              a strength of 80° or higher, of      (a) liquids obtained exclusively from the distillation,
                              agricultural origin                        whether      or     not  after fermentation, of
     22.09 A I                Undenatured ethyl alcohol of a             alcohol-producing agricultural products which
                              strength of less than 80°, of              give to the liquid organoleptic characteristics
                              agricultural origin                        discernible by the consumer and which have, on
                                                                         leaving the stills:
(b) 22.07 B II b)             Other fermented        beverages
                              (e. g., cider, perry and mead),            — either an alcoholic strength not exceeding
                              other, still, of an actual al-                 83 % vol,
                              coholic strength exceeding 15°
                                                                         —• or a volatile content (excluding ethyl alcohol)
                                                                             of not less than 90 g per hectolitre of pure
(c) 20.06 B I b)              Fruit otherwise prepared or pre-               alcohol;
                              served, other, containing added
                              spirit, with an acutal alcohol
                              content exceeding 15 1 of pure       (b) liquids intended for direct human consumption
                              alcohol per 100 kg                         and obtained from the distillation of fermented
     22.05 C IV a) 2 and      Wine fortified for distillation,           cereal must, whether or not together with fruit,
     22.05 C IV b) 3          within the meaning of Additio-             having organoleptic characteristics discernible by
                              nal Note 4 b to Chapter 22                 the consumer.
     22.05 C V                Wine of fresh grapes; grape
                              must with fermentation ar-
                              rested by the addition of al-        4.      For    the    purposes     of   this    Regulation
                              cohol, other, of an actual alco-     'alcohol-producing agricultural products' means the
                              holic strength exceeding 22°         products falling within Chapters 7, 8, 10, 11, 12 and
                                                                   23 and heading Nos 17.01, 17.02, 17.03, 17.05, 22.04,
(d) 22.09 B                   Compound alcoholic prepara-          22.05 and 22.07 of the Common Customs Tariff.
                              tions (known as 'concentrated
                              extracts') for the manufacture       The Council, acting by a qualified majority on a
                              of beverages
                                                                   proposal from the Commission, may alter the list of
     22.09 C                  Spirituous beverages                 chapters and headings of the Common Customs
                                                                   Tariff referred to in the preceding subparagraph,
 (e) 22.06 C                                                       subject to the limits laid down in Annex II to the
                              Vermouths, and other wines of
                              fresh grapes flavoured with aro-     T reaty.
                              matic extracts, of an actual
                              alcoholic strength exceeding         5.      The methods to be employed for measuring the
                              22°
                                                                    levels specified in paragraph 3 shall be adopted in
                                                                    accordance with the procedure laid down in Article
                                                                   35.
 2.     It establishes in respect of the products specified
 in paragraph 1:                                                    In accordance with the same procedure it may be
                                                                    decided to make the use, referred to in paragraph 3
 — under (a) and (b), a common organization of the                  (b), conditional on compliance with certain
      market in ethyl alcohol of agricultural origin,               requirements as to marketing.
 ---pagebreak--- N o C 309/6                                Official J o u r n a l of the E u r o p e a n Communities                               31. 12.76
                               TITLE I                                        — the target price for alcohol obtained f r o m wine
                                                                                     under the intervention measures in the wine
PRODUCTION, MARKETING AND PRICE SYSTEM                                              sector shall be fixed at the level of the selling
                                                                                    price for the oral consumption sector referred to
                                                                                    in Article 10 (2).
                               Article  2
                                                                              4.       Special target prices may be fixed by reference
                                                                              to the size of the distillery during an a d j u s t m e n t
                          Grouping into types                                 period in the course of which the exercise of such
                                                                              option shall be progressively reduced. This period
                                                                              may not exceed 10 years.
T h e kinds of ethyl alcohol of agricultural origin
specified in Article 1 (1) (a) may be grouped into
types according to the alcohol-producing agricultural                         5.       T h e s t a n d a r d qualities and the target prices
products used in accordance with the procedure laid                           shall be fixed annually before 1 J a n u a r y for the
d o w n in Article 43 (2) of the Treaty.                                      following marketing year. They shall be fixed in
                                                                              accordance with the procedure laid d o w n in Article
                                                                              43 (2) of the Treaty.
                               Article  3
                                                                                                              Article  4
                            Target prices
                                                                                                       Marketing guarantee
1.       A target price shall be fixed for each kind or
type of ethyl alcohol of agricultural origin. T h e target
prices shall be valid for unpackaged goods of a                               1.       A limited quantity of ethyl alcohol of
standard quality, ex-factory, loaded on the means of                          agricultural origin p r o d u c e d in the C o m m u n i t y shall
transport chosen by the purchaser. They shall be                              be guaranteed an outlet on the C o m m u n i t y m a r k e t in
fixed for one marketing year. ' M a r k e t i n g year' means                 accordance with the following provisions. H o w e v e r ,
the period running f r o m 1 July of one year to 30                           molasses alcohol shall be excluded f r o m this
June of the next.                                                             guarantee.
                                                                              2.       Every three years before 1 January preceding the
2.       T h e target prices shall be determined by
                                                                              end of the third marketing year and for the first time
reference to the price of the corresponding
                                                                              before 1 April 1978, a target quantity shall be fixed
alcohol-producing agricultural p r o d u c t and to fixed
                                                                              for some or all ethyl alcohol of agricultural origin
amounts,            valid    throughout     the      Community,
                                                                              other than molasses alcohol. It shall be valid for the
representing:
                                                                              whole of the period covering the five marketing years
                                                                              following the date on which it is fixed.
(a) the processing margin, established in the light of
        the need progressively to modernize and
                                                                              T h e target quantity shall be calculated on the basis of
       rationalize the C o m m u n i t y production potential;
                                                                              the quantities produced during the five preceding
                                                                              marketing years, and of the sales prospects in the
(b) the yield;
                                                                              reserved sectors over the five subsequent marketing
                                                                              years.
(c) the receipts of distillers f r o m the sale of the
       by-products of distillation.
                                                                              However, for alcohol-producing products other t h a n
                                                                              those in respect of which distillation measures have
For each alcohol-producing agricultural p r o d u c t                         been implemented under the relevant c o m m o n
which is covered by an intervention system under a                            market organization, the target quantity shall be
c o m m o n market organization, the price to be taken                       equal to the p r o d u c t i o n average for the five preceding
into consideration may not exceed the intervention,                           marketing years.
w i t h d r a w a l or activating price of the m i n i m u m price
applicable under that system.
                                                                             3.        A guaranteed quantity valid for the following
                                                                              marketing year shall be fixed annually before 1
3.       By way of derogation f r o m p a r a g r a p h 2:                   January for some or all types of ethyl alcohol of
                                                                              agricultural origin other than molasses alcohol.
— the target price for molasses alcohol shall be
      determined by reference to the price on the                             T h e guaranteed quantity must be established within
      C o m m u n i t y and world markets of synthetic ethyl                 the limits of the target quantity fixed for the
      alcohol,                                                               particular type of alcohol. It shall be determined by
 ---pagebreak--- 31. 12. 76                            Official Journal of the European Communities                           N o C 309/7
reference in particular to the quantities actually               4.    The Council, acting by a qualified majority on a
produced and sold during the marketing years                     proposal from the Commission, shall adopt general
preceding the period under consideration and to the              rules concerning the apportionment of the guaranteed
production and sales prospects in the current                    quantities among Community distillers, taking into
marketing year for the alcohol-producing agricultural            account the need to reserve a share of production for
product or products in question.                                 newly established distillers.
4.     The guaranteed quantities relating to those              5.     Detailed rules for the application of this Article,
alcohol-producing agricultural products in respect of           including the conditions under which the transfers
which distillation measures have been implemented               referred to in paragraph 3 may be effected, shall be
under the relevant common market organization may                adopted in accordance with the procedure laid down
 be adjusted at the end of the marketing year, within           in Article 35.
the limits of the target quantity.
5.     The target quantities and the guaranteed                                          Article 6
quantities shall be fixed in accordance with the
procedure laid down in Article 43 (2) of the Treaty.
                                                                                 Compulsory buying-in
6.     Detailed rules for the application of this Article,
including the adjustments referred to in paragraph 4,            1.    Throughout the marketing year the intervention
shall be adopted in accordance with the procedure                agencies designated by the Member States shall be
laid down in Article 35.                                        obliged, subject to conditions to be laid down, to buy
                                                                in ethyl alcohol of agricultural origin other than
                                                                 molasses alcohol offered to them by producers within
                          Article 5                             the limits of the guaranteed quota allotted to the
                                                                distiller in question for the current marketing year
                                                                and subject to the application of Article 13.
             Apportionment among distillers
                                                                2.     The intervention agencies shall buy in the ethyl
1.     The guaranteed quantities shall be apportioned           alcohol of agricultural origin offered to them at the
among Community distillers.                                     target price valid for the kind or type of agricultural
                                                                ethyl alcohol in question and, where appropriate, for
That portion of the guaranteed quantity allotted to a           the size of the undertaking.
distiller is hereinafter referred to as the 'guaranteed
quota'.                                                         If the quality of the alcohol offered differs from the
                                                                standard quality for which the target price has been
In the event of Article 4 (4) being applied, the                fixed, the latter shall be adjusted by applying
guaranteed quota shall be adjusted by reference to              increases or reductions.
the variations thus decided on.
                                                                3.     Detailed rules for the application of this Article,
2.     The      apportionment       among      Community        in particular as regards:
distillers shall be done before 1 May each year for the
following marketing year and in accordance with the             — the minimum quality and quantity required for
procedure laid down in Article 35. However, the                      intervention,
Council, acting by a qualified majority on a proposal
from the Commission, may decide that for a period               — the scale of increases and the scale of reduction,
which may not exceed five marketing years from the
date on which this Regulation takes effect                      — the procedures and conditions for taking over by
apportionment is to be done by the Member States.                    the intervention agencies,
In that case, the guaranteed quantities allocated to
each Member State shall be determined by reference              shall be adopted in accordance with the procedure
to the average actual output of alcohol of the type or          laid down in Article 35.
types concerned in the Member State in question over
the preceding five marketing years.
                                                                                         Article 7
3.     Provision may be made for any Community
distiller to transfer to another Community distiller all               Transitional measures for molasses alcohol
or part of the guaranteed quota allotted. Such
transfer shall alter, for the marketing year in
question, the guaranteed quotas allotted to the                 For a period which may not exceed seven marketing
distillers concerned.                                           years, provision may be made for a marketing
 ---pagebreak--- N o C 309/8                         Official Journal of the European Communities                               31. 12.76
premium calculated according to a sliding scale to be           2.    Paragraph 1 shall not apply to medicinal
granted, under certain conditions, to producers of              products which in the finished state no longer
 molasses alcohol to enable them to adapt to the new           contain ethyl alcohol.
conditions on the market in the said alcohol.
                                                               3.    However, for a transitional period of five
The conditions under which it is granted and the               marketing years from the date on which this
 amount of the marketing premium shall be fixed                Regulation takes effect, and for Member States who
annually before 1 January for the following                    so request, the alcohol requirements of users in the
marketing year, in accordance with the procedure               perfumery and cosmetics industries may be reserved
laid down in Article 35.                                       for ethyl alcohol of agricultural origin in respect of
                                                               products manufactured on the territory of those
                                                               Member States.
                        Article 8
                                                               4.    The precise limits of the reserved sectors shall
        Sale of alcohol by intervention agencies               be defined in accordance with the procedure laid
                                                               down in Article 35.
1.    The intervention agencies shall be responsible
for the storage and marketing, including exportation           Detailed rules for the application of this Article shall
where appropriate, of the ethyl alcohol of                     be adopted in accordance with the same procedure.
agricultural origin bought in. Provision may be made
for them to undertake in particular the rectifying and
denaturing of the alcohol they have bought in.                                         Article 10
2.    The intervention agencies may sell only alcohol               Fixing of the selling price for reserved sectors
of a strength of not less than 95 % vol and residual
or denatured alcohol.                                          1.    A selling price shall be fixed for agricultural
                                                               ethyl alcohol of all types and for each of the reserved
3.    Alcohol bought in by the intervention agencies           sectors.
shall be disposed of in the reserved sectors at the
prices referred to in Article 10. Where the disposal           2.    For the oral consumption sector the selling price
possibilities are insufficient, provision may be made          referred to in paragraph 1 shall be fixed by
for the intervention agencies to invite tenders in the         reference to the target price for ethyl alcohol
unreserved sectors.                                            obtained from cereals.
The invitations to tender shall be issued under
                                                               3.    The selling prices shall be fixed annually before
conditions which ensure equality of access and equal
treatment of purchasers and avoid any disturbance of           1 January for the following marketing year in
                                                               accordance with the procedure laid down in Article
the market in alcohol in these sectors.
                                                               43 (2) of the Treaty. The standard qualities to which
                                                               these prices relate shall be fixed in accordance with
4.    Detailed rules for the application of this Article,      the same procedure.
including the requirements in respect of storage,
marketing and invitations to tender, shall be adopted
                                                               4.    If the quality of the ethyl alcohol of agricultural
in accordance with the procedure laid down in
                                                               origin sold differs from the standard quality for
Article 35.
                                                               which the selling price has been fixed, the latter shall
                                                               be adjusted by applying increases or reductions.
                        Article 9
                                                               5.    Detailed rules for the application of this Article,
                     Reserved sectors                          including the scales of increases and reductions to be
                                                               applied to the selling prices of ethyl alcohol of
                                                               agricultural origin in the reserved sectors, shall be
1.    Ethyl alcohol used in the reserved sectors or for        adopted in accordance with the procedure laid down
the manufacture of products belonging to the                   in Article 35.
reserved sectors must be exclusively ethyl alcohol of
agricultural origin.
                                                                                       Article 11
'Reserved sectors' means the following:
— oral consumption,                                                                   Equalization
— vinegar-making,
                                                               1.    Where ethyl alcohol of agricultural origin of a
— the pharmaceutical industry.                                 particular type, whether or not imported, is sold to a
 ---pagebreak---  31.12. 76                         Official Journal of the European Communities                            No C 309/9
user in one of the reserved sectors and the target                                     Article 13
price for that alcohol is lower than the selling price
fixed for the reserved sector, the Member States shall
                                                                             Postponement of production
levy an equalization charge.
 The equalization charge shall be equal to the                1.     Each   distiller may postpone to the following
difference between the said target and selling prices.        marketing      year the production of part of the
                                                              guaranteed     quota allotted for the current marketing
                                                              year. The       quota guaranteed for the following
2.    Where ethyl alcohol of agricultural origin of a         marketing     year shall be increased by the quantity
particular type produced in the Community from                postponed.
alcohol-producing agricultural products obtained or
harvested in the Community is sold to a user in one
 of the reserved sectors and the target price for that        2.     An upper limit, which may vary according to
 alcohol exceeds the selling price fixed for the              the type of ethyl alcohol of agricultural origin
 reserved sector, the intervention agencies shall make        concerned, shall be fixed for transfers of production
a compensatory payment. This compensatory                     between marketing years resulting from underpro-
payment shall be equal to the difference between the          duction.
said target and intervention prices.
                                                              3.     Distillers may apply the provisions of paragraph
                                                              1 only if they have notified the intervention agency of
3.    The quantity of ethyl alcohol of agricultural           the Member State concerned before 1 June of the
origin in respect of which the compensatory payment           quantities to be transferred.
provided for in paragraph 2 is made may not for any
one distiller exceed the guaranteed quota allotted to
that distiller, less the quantities offered to                4.     Detailed rules for the application of this Article
intervention agencies.                                        shall be adopted in accordance with the procedure
                                                              laid down in Article 35.
4.    Detailed rules for the application of this Article,
including the conditions governing the levying of
equalization charges, shall be adopted in accordance                                   Article 14
with the procedure laid down in Article 35.
                                                              Quantitative restrictions on intervention measures for
                                                                              certain spirituous beverages
                        Article 12                            1.     Each year before 1 January a guaranteed
                                                              quantity shall be fixed for the following marketing
                                                              year, in accordance with the procedure laid down in
                         Penalties                            Article 43 (2) of the Treaty, for each spirituous
                                                              beverage:
 1.    In respect of the types of alcohol to which the
                                                              — obtained from an alcohol-producing agricultural
 marketing guarantee referred to in Article 4 applies,
                                                                  product obtained or harvested in the Community,
 the distiller must sell in the unreserved sectors any
                                                                  and
 quantity of ethyl alcohol of agricultural origin which
he has produced in excess of the guaranteed quota
                                                              — which may be placed at a competitive
 during a given marketing year.
                                                                  disadvantage by the fixing of the selling price for
                                                                  alcohol for oral consumption.
2.    The sale in the reserved sectors of any quantity        The guaranteed quantity of a spirituous beverage
of agricultural ethyl alcohol produced by a distiller in      shall be fixed by reference to the quantity of that
excess of the guaranteed quota during a given                 beverage produced, marketed or stored during the
 marketing year shall be subject to a charge                  five preceding marketing years.
determined in relation to the financial consequences
of such action.
                                                              2.     The guaranteed quantities shall be apportioned
                                                              among the Community distillers concerned. That
3.    Detailed rules for the application of this Article      portion of the guaranteed quantity allotted to a
shall be adopted in accordance with the procedure             distiller is hereinafter referred to as the 'guaranteed
laid down in Article 35.                                      quota'.
 ---pagebreak--- N o C 309/10                        Official Journal of the European Communities                             31. 12. 76
3.     The Council, acting by a qualified majority on a        Community market the intervention agencies shall
proposal from the Commission, shall adopt general              make a compensatory payment to the producers by
rules concerning the apportionment of the guaranteed           reference to the alcohol content, within the limits of
quantities among Community distillers, taking into             the guaranteed quota.
account the need to reserve a share of production for
newly established distillers.                                  Where, in respect of such spirituous beverages
                                                               obtained from an alcohol-producing agricultural
It shall, in accordance with the same procedure, lay           product, the target price for the alcohol obtained
down the characteristics of the spirituous beverages           from that product is higher than the selling price for
concerned.                                                     such alcohol intended for oral consumption, the
                                                               amount of the compensatory payment shall not be
4.     The     apportionment       among     Community         more than that made for alcohol obtained from the
distillers shall be done before 1 May each year for the        same alcohol-producing agricultural product.
following marketing year and in accordance with the
procedure laid down in Article 35. However, the                The amount of the compensatory payment may be
Council, acting by a qualified majority on a proposal          fixed by reference to the size of the distillery during
                                                               an adjustment period in the course of which the
from the Commission, may decide that for a period
which may not exceed five marketing years from the             exercise of such option shall be progressively
date on which this Regulation takes effect                     reduced.
apportionment shall be done by the Member States.
In that case, the guaranteed quantities allocated to           3.    The amounts of the equalization charge and the
each Member State shall be determined by reference             compensatory payment valid for the following
to the average actual ouput of the spirituous                  marketing year shall be fixed at the same time as the
beverages concerned in the Member State in question            selling prices referred to in Article 10 and in
over the preceding five marketing years.                       accordance with the same procedure.
5.     Provision may be made for any Community                 4.    Detailed rules for the application of this Article,
distiller to transfer to another Community distiller all       including the conditions under which the equalization
or part of the guaranteed quota allotted.                      charge may be levied or the compensatory payment
                                                               made, shall be adopted in accordance with the
Such transfer shall alter, for the marketing year in           procedure laid down in Article 35.
question, the guaranteed quotas allotted to the
distillers concerned.
                                                                                       Article 16
6.     Detailed rules for the application of this Article,
including the conditions under which the transfers
referred to in paragraph 5 may be effected, shall be               Transition from one marketing year to the next
adopted in accordance with the procedure laid down
in Article 35.
                                                               The provisions necessary to prevent the market in the
                                                               products specified in Article 1 (1) from being
                                                                disturbed as a result of a change in prices on the
                         Article IS                            transition from one marketing year to the next shall
                                                               be adopted in accordance with the procedure laid
Intervention measures for certain spirituous beverages         down in Article 35.
1.     The Member States shall levy an equalization
charge on the alcohol contained in spirituous                                          Article 17
beverages, whether or not imported, which are
released to the Community market and are obtained
                                                                                Intervention contribution
from an alcohol-producing agricultural product for
which the target price of the corresponding alcohol is
lower than the selling price fixed for such alcohol            1.     An intervention contribution shall be levied on
intended for oral consumption.                                 the alcohol content of the products specified in
                                                                Article 1 (1) (a) and (d) produced in the Community.
The amount of the equalization charge shall not be             However, derogations may apply to exported
less than that laid down for alcohol obtained from             products and alcohol used for industrial purposes.
the same alcohol-producing agricultural product.
                                                               The same contribution shall be levied on the
2.     Where spirituous beverages for which a                  products specified in Article 1 (1) (a) and (d)
guaranteed quantity has been fixed are released to the          imported into the Community.
 ---pagebreak--- 31. 12. 76                           Official Journal of the European Communities                           N o C 309/11
2.      For the determination of the amount of the                                      TITLE II
intervention contribution, account shall be taken of
the level of supply and demand for those products on
                                                                     T R A D E WITH N O N - M E M B E R COUNTRIES
the Community market.
 It shall be fixed in accordance with the procedure
laid down in Article 43 (2) of the Treaty.                                             Article 20
                                                                     Amendment of the Common Customs Tariff
3.      Detailed rules for the application of this Article,
including the conditions and formalities relating to
the contribution provided for in paragraph 1, shall be          The Common Customs Tariff                is amended    in
adopted in accordance with the procedure laid down              accordance with the Annex.
 in Article 35.
                          Article 18                                                   Article 21
                           Control                                   Application of the Common Customs Tariff
                                                                1.    The general rules for the interpretation of the
 1.     Arrangements shall be made for control of the
                                                                Common Customs Tariff and the special rules for its
 production, movement and use of ethyl alcohol and              application shall apply to the tariff classification of
 spirituous beverages.
                                                                the products specified in Article 1 (1); the tariff
                                                                nomenclature resulting from the application of this
 2.     Detailed rules for the application of this Articl<      Regulation to these products shall be incorporated in
 shall be adopted in accordance with the procedure              the Common Customs Tariff.
 laid down in Article 35.
                                                                2.    Save as otherwise provided in this Regulation or
                                                                 by the Council acting by a qualified majority on a
                          Article 19                             proposal from the Commission, the following shall
                                                                be prohibited in trade with third countries in the
                                                                products referred to:
            Definition, designation, description
                                                                 — in Article 1 (1) (a) and (d), the levying of any
 1.     The Council, acting by a qualified majority on a            customs duty,
  proposal from the Commission, shall before 1 July
 1979 adopt:                                                     — in Article 1 (1), the levying of any charge having
                                                                    effect equivalent to a customs duty,
 (a) general     rules relating      to   the    definition,
       designation and presentation of the products              — in Article 1 (1), the application of any
       specified in Article 1 (1);                                  quantitative restriction or measure having
                                                                    equivalent effect.
  (b) provisions to restrict certain designations to
      certain products specified in Article 1 (1);
  (c) the conditions under which the products referred                                  Article 22
       to in (b) are obtained;
                                                                                        Licences
  (d) provisions relating to the control and protection
       of such restricted designations.
                                                                1.    Imports into or exports from the Community of
  Until the provisions referred to in the first                 any of the products specified in Article 1 (1) may be
  subparagraph take effect, the provisions adopted by           made conditional on the submission of an import or
  the Member States shall apply.                                export licence. Such licences shall be issued by the
                                                                Member States to any applicant irrespective of the
                                                                place of his establishment in the Community.
  2.     Detailed rules for the application of this Article
  shall be adopted in accordance with the procedure             The issue of such licences shall be conditional on the
  laid down in Article 35.                                      provision of security guaranteling that importation or
 ---pagebreak--- N o C 309/12                        Official Journal of the European Communities                              31. 12. 76
exportation is effected during the period of validity                    production in the Community            of    one
of the licence; the security shall be forfeited in whole                 hectolitre of pure alcohol,
or in part if the transaction is not effected, or is only
                                                                    — or for the quantity of sugar contained in
partially effected, within that period.
                                                                         those quantities or likely to be obtained
                                                                         therefrom;
2.    The list of the products concerned, the period
of validity of the licences and other detailed rules for       (b) shall not be less than 50 % of the rate of customs
the application of this Article shall be adopted in                 duty applicable the day before the day of entry
accordance with the procedure laid down in Article                  into force of this Regulation.
35.
                                                               2.     The levy applicable to the products specified in
                         Article 23                            Article 1 (1) (d) shall comprise:
                                                               (a) a component derived from that referred to in (a)
                        Import levy                                  of the second subparagraph of paragraph 1 and
                                                                    calculated by reference to the ratio existing in the
1.    On importation into the Community of any of                   Community         between    the  prices    of     the
the products specified in Article 1 (1) (a) and (d), a              alcohol-producing agricultural products used in
levy fixed before each marketing year for the                       the preparation of the spirituous beverages
duration of that year, in accordance with the                        concerned and the prices of the products used in
procedure laid down in Article 35 shall be charged.                 the preparation of ethyl alcohol of the same
                                                                    origin;
2.     On importation into the Community of any of             (b) a fixed component.         1
the products specified in Article 1 (1) (b), (c) and (e),
there shall be charged, in addition to the customs
duty and any levy or countervailing charge payable             3.     The supplementary levy applicable to the
under the provisions governing respectively the                products specified in Article 1 (1) (b), (c) and (e) shall
common organization of the market in products                  be determined by reference to the alcohol content
processed from fruit and vegetables and the common             and to the component referred to in paragraph 2 (a).
organization of the market in wine, a supplementary            It shall be applied to an alcohol content exceeding:
levy fixed before each marketing year for the                  — an actual alcoholic strength of 15° in the case of
 duration of that year in accordance with the                      the products specified in Article 1 (1) (b),
procedure laid down in Article 35.
                                                               — an actual alcoholic strength of 18° in the case of
3.     However, if during a given marketing year the               wines fortified for distillation,
 conditions of supply of one or more alcohol-                  — an actual alcoholic strength of 22° in the case of
producing raw materials are found to have                           the other wines specified in Article 1 (1) (c) and
changed considerably the levies referred to in the                 the products specified in Article 1 (1) (e),
preceding paragraphs may be altered in accordance
 with the same procedure by reference to the trend of          — 15 litres of pure alcohol per 100 kg in the case of
 prices for such alcohol-producing raw materials.                   products falling within Common Customs Tariff
                                                                    subheading 20.06 B I.
                         Article 24                            4.      For the purposes of applying paragraphs 1, 2
                                                               and 3 where the origin of the alcohol-producing raw
             Calculation of the import levy                    material cannot be determined with certainty, the
                                                               component to be applied shall be the highest
 1.    The levy applicable to the products specified in        component as determined in accordance with
 Article 1 (1) (a) shall comprise:                             paragraph 1 (a).
 (a) a variable component;                                     5.      For the products specified in Article 1     (1) (a)
 (b) a fixed component.                                         and (d), the amount of the levy referred            to in
                                                                paragraphs 1 and 2 shall not be less than the      rate of
                                                                customs duty applicable the day before the         day of
 The variable component:
                                                                enty into force of this Regulation.
 (a) shall be established on the basis of the average
                                                                The Council, acting by a qualified majority on a
      protection afforded during the previous calendar
                                                                proposal from the Commission, shall lay down
      year:
                                                                special provisions applicable to the products referred
      — either for the quantities of alcohol-producing          to in Article 1 (a) and (d) imported into the
          agricultural products required for the                Community on preferential terms.
 ---pagebreak---     31. 12. 76                          Official Journal of the European Communities                            No C 309/13
   6.     By way of derogation from the provisions of                applicable, production refunds and criteria for fixing
   paragraphs 1, 2 and 3, for products falling within                the amount of such refunds.
   Common Customs Tariff subheadings ex 22.05 C IV,
   22.09 A I, 22.09 B and 22.09 C in respect of which               4.      The refunds shall be fixed at regular intervals in
   the rate of duty has been bound under GATT, the                   accordance with the procedure laid down in Article
   levies shall be limited to the amount resulting from             35.
   that binding.
                                                                    Where necessary the Commission may, at the request
                                                                    of a Member State or on its own initiative, alter the
   7.    The Council, acting by a qualified majority on a
                                                                    refunds in the intervening period.
   proposal from the Commission, shall:
   — determine the fixed components referred to in                  5.     Detailed rules for the application of this Article
       paragraphs 1 (b) and 2 (b),                                  shall be adopted in accordance with the procedure
                                                                    laid down in Article 35.
  — determine the quantities of                the various
       alcohol-producing raw materials required in the
                                                                                             Article 26
       Community to produce one hectolitre of pure
       alcohol,
                                                                        Prohibition of inward processing arrangements
  — adopt general rules for the application of this
      Article.                                                      To the extent necessary for the proper working of
                                                                    the common organization of the market in ethyl
  8.     Detailed rules for the application of this Article,        alcohol of agricultural origin, the Council, acting by
  including the conversion factors corresponding to the            a qualified majority on a proposal from the
  ratios referred to in paragraph 2 (a), shall be adopted           Commission, may prohibit in whole or in part the
 in accordance with the procedure laid down in                      application of inward processing arrangements in
  Article 35.                                                      respect of the products specified in Article 1 (1)
                                                                   which are intended for the manufacture of products
  These detailed rules may provide for measures                    specified in Article 1 and in respect of
  designed      to    establish    the    alcohol-producing        alcohol-producing raw materials intended for use in
  agricultural product from which imported alcohol                 the manufacture of such products.
  was obtained.
                                                                                            Article 27
                           Article 25
                                                                                         Protective clause
                        Export refunds
                                                                   1.     If the Community market in the products
  1.     To the extent necessary to enable ethyl alcohol           specified in Article 1 (1) (a), (b), (d) and (e)
 either as such or contained in the products specified             experiences or is threatened, by reason of imports or
 in Article 1 (1) (b), (c), (d) and (e) to be exported in          exports of those products or of other products
 economically significant quantity, the difference                specified in Article 1 (1) containing alcohol of
 between world market prices and prices in the                    agricultural origin, with serious disturbances which
 Community         for    that    alcohol    or   for   the        may endanger the objectives set out in Article 39 of
 alcohol-producing agricultural product employed                  the Treaty, appropriate measures may be applied to
 may be covered by a refund.                                      those products in trade with third countries until
                                                                  such disturbance or threat of disturbance has ceased.
 The refund shall be the same for the whole
 Community. It may be varied according to use or                  The Council, acting by a qualified majority on a
destination. The refund fixed shall be granted on                 proposal from the Commission, shall adopt rules for
application.                                                     the application of this paragraph and define the cases
                                                                  in which and the limits within which the Member
                                                                 States may take interim protective measures.
2.      Where the application of export refunds would
meet with difficulties in the case of ethyl alcohol of           2.      If the situation mentioned in paragraph 1 arises,
agricultural origin contained in certain spirituous              the Commission shall, at the request of a Member
beverages, the export refunds may be replaced, under             State or on its own initiative, decide upon the
certain conditions, by production refunds.                       necessary measures; the measures shall be notified to
                                                                 the Member States and shall be immediately
3.      The Council, acting by a qualified majority on a         applicable. If the Commission receives a request from
proposal from the Commission, shall adopt general                a Member State, it shall take a decision thereon
rules for the granting of export refunds and, where              within 24 hours following receipt of the request.
 ---pagebreak--- N o C 309/14                                  Official J o u r n a l of the E u r o p e a n Communities                                 3 1 . 1 2 . 76
3.       T h e Commission Decision m a y be referred to                         (b) a limit on exports;
the Council by any M e m b e r State within three
                                                                                (c)     a charge on exports.
w o r k i n g days following the day on which it was
communicated. T h e Council shall meet w i t h o u t
delay. It may, acting by a qualified majority, amend                            2.        T h e Council, acting by a qualified majority on a
or repeal the measure in question.                                              proposal f r o m the Commission, shall a d o p t general
                                                                                rules for the application of this Article.
                                                                                3.        Detailed rules for the application of this Article
                                  TITLE III                                     shall be adopted in accordance with the procedure
                                                                                laid d o w n in Article 35.
                         GENERAL PROVISIONS
                                  Article  28                                                               Article    31
                                      Aid                                                                   Financing
Save as otherwise provided in this Regulation,                                  The         equalization     charges        and     compensatory
Articles 92 to 94 of the Treaty shall apply to the                              payments provided for in Articles 11 and 15, the
p r o d u c t i o n of and trade in ethyl alcohol of                             intervention contribution provided for in Article 17
agricultural origin.                                                             and the a m o u n t s levied p u r s u a n t to Article 12 (2)
                                                                                 shall be regarded, for the p u r p o s e of the financing of
                                                                                 the c o m m o n agricultural policy, as intervention
                                  Article  29                                    designed to regulate agricultural markets.
                     French overseas departments
                                                                                                            Article     32
1.       A p p r o p r i a t e measures concerning ethyl alcohol
of agricultural origin and spirituous beverages                                        Extension of the system to the French overseas
obtained f r o m sugar cane may be adopted by the                                                          departments
 Council, acting by a qualified majority on a proposal
 f r o m the Commission, in order to maintain the level
 of employment of and ensure a fair income to                                    1.       F r o m the date on which this Regulation takes
 sugar-cane producers                   in the French overseas                   effect, Article 40 (4) of the Treaty and the provisions
                                                                                 adopted for the implementation of t h a t Article shall
 departments.
                                                                                 apply, so far as concerns the G u a r a n t e e Section of the
                                                                                 European Agricultural Guidance and G u a r a n t e e
 2.       Detailed rules for the application of this Article
                                                                                 Fund, to the French overseas departments in respect
 shall be adopted in accordance with the procedure
 laid down in Article 35.                                                         of the m a r k e t in the p r o d u c t s specified in Article 1
                                                                                  (1) (a), (b) and (c).
                                  Article  30                                    2.       T h e provisions of this Regulation a d o p t e d on
                                                                                 the basis of Articles 113 and 235 of the T r e a t y shall
                                                                                 apply to the French overseas departments.
                                Scarcity clause
 1.       W h e r e there is a risk that the supply of ethyl
                                                                                                             Article     33
 alcohol of agricultural origin to the C o m m u n i t y or to
 a utilization sector in the C o m m u n i t y can no longer
 be provided f r o m C o m m u n i t y resources, or where                                               Exclusive rights
 the C o m m u n i t y m a r k e t in the products specified in
 Article 1 (1) is disturbed or threatened with                                    Provisions which grant to certain natural or legal
 disturbance and this situation is likely to continue,                            persons or which restrict to nationals of one M e m b e r
 the necessary measures m a y be taken.                                           State the exclusive right to produce, package,
                                                                                  transport, store, refine, import, export, purchase, sell
 These measures, which shall be applicable to the                                 or otherwise m a r k e t ethyl alcohol of agricultural
 products specified in Article 1 (1), m a y include:                              origin or the exclusive right t o package, transport,
                                                                                  store, refine, import, export, purchase, sell or
  (a) a d j u s t m e n t of the internal mechanisms regulating                   otherwise m a r k e t ethyl alcohol of non-agricultural
        production;                                                               origin shall be incompatible with this Regulation.
 ---pagebreak---  31. 12. 76                        Official Journal of the European Communities                                N o C 309/15
                        Article 34                            initiative or at the request of the representative of a
                                                              Member State.
       Establishment of a Management Committee
                                                                                        Article 37
 1.    A Management Committee for Ethyl Alcohol
 (hereinafter called the 'Committee') shall be
                                                                           Communication and information
 established, consisting of representatives of Member
 States and presided over by a representative of the
 Commission.                                                  Member        States    and      the     Commission      shall
                                                              communicate to each other the information necessary
                                                              for applying this Regulation. Detailed rules for the
2.     Within the Committee the votes of Member               communication and distribution of such information
 States shall be weighted in accordance with Article          shall be adopted in accordance with the procedure
 148 (2) of the Treaty. The chairman shall not vote.          laid down in Article 35.
                                                                                        Article 3H
                        Article J5
                                                                                         Research
       Procedure of the Management Committee
                                                             The necessary measures to encourage the search for
 1.    Where reference is made to the procedure laid          new outlets for ethyl alcohol of agricultural origin
 down in this Article, the chairman shall refer the          shall be taken in accordance with the procedure laid
matter to the Committee either on his own initiative          down in Article 43 (2) of the Treaty.
or at the request of the representative of a Member
State.
                                                                                        Article 39
2.     The representative of the Commission shall
submit a draft of the measures to be taken. The                                         Objectives
Committee shall deliver its opinion on such measures
within a time limit to be set by the chairman
according to the urgency of the questions under              This Regulation shall be so applied that appropriate
consideration. Opinions shall be adopted by a                and simultaneous account is taken of the objectives
majority of 41 votes.                                        set out in Articles 39 and 110 of the Treaty.
3.    The Commission shall adopt measures which
                                                                                       Article 40
shall apply immediately. However, if these measures
are not in accordance with the opinion of the
Committee, they shall forthwith be communicated by                 Amendment of Regulation (EEC) N o 827/68
the Commission to the Council. In that event the
Commission may defer application of the measures
which it has adopted for not more than one month             In the Annex of Regulation (EEC) N o 827/68,
from the date of such communication.                         heading N o 22.07 is amended to read as follows:
The Council, acting by a qualified majority, may take
                                                               CCT heading
a different decision within one month.                              No                             Description
                                                                22.07           Other fermented beverages (for example,
                       Article 36                                               cider, perry and mead)
                                                                                B. Other
                                                                                    I. Sparkling
      Other tasks of the Management Committee
                                                                                   II. Still
                                                                                       a) Of an alcoholic strength of 15°
The Committee may consider any other question                                              or less
referred to it by its chairman either on his own
 ---pagebreak---  N o C 309/16                      Official Journal of the European Communities                         31. 12.76
                        Article 41                                                   Article 42
                  Transitional measures                                           Entry into force
Should transitional measures be necessary to facilitate      This Regulation shall enter into force on 1 January
 the transition from the existing system to the system       1978.
 established by this Regulation, in particular if the
 introduction of the new system on the date provided
 for would give rise to substantial difficulties in respect  It shall take effect on 1 July 1978.
 of certain products, such measures shall be adopted in
accordance with the procedure laid down in Article 35.
They shall be applicable until 30 June 1979 at the           This Regulation shall be binding in its entirety and
latest.                                                      directly applicable in all Member States.
 ---pagebreak--- 31. 12. 76                         Official Journal of the European Communities                                 N o C 309/17
                                                          ANNEX
                              AMENDMENTS T O THE C O M M O N CUSTOMS TARIFF
           I. AMENDMENTS T O CHAPTER 20
             A. Amendment to the Additional Notes
                 The following Additional Note 4 is added:
                 '4. For the purposes of applying subheadings 20.06 B I a) and b), "actual alcohol content"
                     means the number of litres of alcohol contained in 100 kg of product.'
              B. Amendments to the tariff
                 Subheading 20.06 B I is amended to read as follows:
                                                                                                         Rate of Duty
   Heading                                      Description                                     autonomous
   number                                                                                            %            conventional
                                                                                                  or levy              %
                                                                                                     (L)
   20.06       Fruit otherwise prepared or preserved, whether or not containing added
               sugar or spirit:
               B. Other:
                  I. Containing added spirit:
                     a) With an actual alcohol content not exceeding 15 1 of pure alcohol
                        per 100 kg
                        1. Ginger                                                                   32                —
                        2. Pineapples, in immediate packings of a net capacity:
                           aa) Of more than 1 kg:
                                11. With a sugar content exceeding 17 % by weight               32 + (L)              —
                                22. Other                                                           32                —
                           bb) Of 1 kg or less:
                                11. With a sugar content exceeding 19 % by weight               32 + (L)              —
                                22. Other                                                           32                —
                        3. Grapes
                           aa) With a sugar content exceeding 13 % by weight                    32 + (L)              —
                           bb) Other                                                                32                —
                        4. Peaches, pears and apricots, in immediate packings of a net
                           capacity:
                           aa) Of more than 1 kg:
                                11. With a sugar content 13 % by weight                         32 + (L)              —
                                22. Other                                                           32                —
                           bb) Of 1 kg or less:
                                11. With a sugar content exceeding 15 % by weight               32 + (L)              —
                                22. Other                                                          32
 ---pagebreak--- N o C 309/18                                  Official Journal of the European Communities                                                      31. 12. 76
                                                                                                                                     Rate of Duty
     Heading                                                                                                               autonomous
     number                                                     Description                                                     %             conventional
                                                                                                                              or levy              %
                                                                                                                                (L)
      20.06            B. I. a) 5. Other fruits:
  (continued)                        aa) With a sugar content exceeding 9 % by weight                                       32 + (L)              —
                                     bb) Other                                                                                  32                —
                                  6. Mixtures of fruit:
                                     aa) With a sugar content exceeding 9 % by weight                                       32 + (L)              —
                                     bb) Other                                                                                  32
                              b) With an actual alcohol content exceeding 15 1 of pure alcohol per
                                  100 kg
                                  1. Ginger                                                                                   32 (a)               —
                                  2. Pineapples, in immediate packings of a net capacity:
                                     aa) Of more than 1 kg:
                                           11. With a sugar content exceeding 17 % by weight                              32 + (L) (a)             —
                                          22. Other                                                                           32 (a)               —
                                     bb) Of 1 kg or less:
                                            11. With a sugar content exceeding 19 % by weight                             32 + (L) (a)             —
                                           22. Other                                                                          32 (a)               —
                                  3. Grapes:
                                     aa) With a sugar content exceeding 13 % by weight                                    32 + (L) (a)             —
                                     bb) Other                                                                                32 (a)               —
                                  4. Peaches, pears and apricots, in immediate packings of a net
                                     capacity:
                                     aa) Of more than 1 kg:
                                           11. With a sugar content exceeding 13 % by weight                              32 + (L) (a)             —
                                          22. Other                                                                           32 (a)               —
                                     bb) Of 1 kg or less:
                                           11. With a sugar content exceeding 15 % by weight                              32 + (L) (a)             —
                                          22. Other                                                                          32 (a)                —
                                  5. Other fruits:
                                     aa) With a sugar content exceeding 9 % by weight                                     32 + (L) (a)             —
                                     bb) Other                                                                                32 (a)               —
                                  6. Mixtures of fruit:
                                     aa) With a sugar content exceeding 9 % by weight                                     32 + (L) (a)             —
                                     bb) Other                                                                                32 (a)
(a) In certain conditions a supplementary levy is payable in respect of certain products in addition to the customs duty.
 ---pagebreak--- 3 1 . 1 2 . 76                                   Official Journal of the European Communities                                              N o C 309/19
                   II. AMENDMENTS T O CHAPTER 22
                       A. Amendments to the Additional Notes
                            1. In Additional Note 1, 'subheading 22.07 A' is replaced by 'heading No 22.07'.
                           2. An Additional Note 7 is inserted, as follows:
                               '7. For the purposes of applying subheadings 22.08 A I, 22.08 B I and 22.09 A I:
                                   A. "Ethyl alcohol of agricultural origin" means the liquid obtained by distillation,
                                        after alcoholic fermentation, from alcohol-producing agricultural products,
                                        excluding:
                                         (a) — liquids obtained exclusively from the distillation, whether or not after
                                                  fermentation, of alcohol-producing agricultural products which give to
                                                  the liquid organoleptic characteristics discernible by the consumer and
                                                  which have, on leaving the stills:
                                                  — either an alcoholic strength not exceeding 83 % vol,
                                                  — or a volatile content (excluding ethyl alcohol) of not less than 90 g
                                                      per hectolitre of pure alcohol;
                                         (b) — liquids intended for direct human consumption and obtained from the
                                                  distillation of fermented cereal must, whether or not together with fruit,
                                                  having organoleptic characteristics discernible by the consumer.
                                    B. "Alcohol-producing agricultural products" means the products falling within
                                        Chapters 7, 8, 10, 11, 12 and 23 and heading Nos 17.01, 17.02, 17.03, 17.05, 22.04,
                                        22.05 and 22.07.'
                           3. Additional Note 7 becomes Additional Note 8.
                        B. Amendments to the tariff
                            Heading Nos 22.05, 22.06, 22.07, 22.08 and 22.09 are amended to read as follows:
                                                                                                                                     Rate of Duty
     Heading                                                                                                               autonomous
      number                                                      Description                                                   %
                                                                                                                              or levy
                                                                                                                                (L)
      22.05             Wine of fresh grapes; grape must with fermentation arrested by the
                        addition of alcohol:
                        c.
                             IV. Of an actual alcoholic strength exceeding 18° but not exceeding
                                 22°, in containers holding:
                                 a) 2 litres or less:
                                     1. Port, Madeira, sherry, Tokay (Aszu and Szamorodni) and
                                          Setubal muscatel (a)                                                                16 UA
                                                                                                                           per hi (d)
                                     2. Wines fortified for distillation, within the meaning of Additional
                                          Note 4 (b) to Chapter 22                                                            19 UA
                                                                                                                              per hi
                                                                                                                            (b) (c) (d)
(a)  Entry under this subheading is subject to conditions to be determined by the competent authorities.
(b)  In certain conditions a countervailing tax is payable in respect of certain products in addition to the customs duty.
(c)  In certain conditions a supplementary levy is payable in respect of certain products in addition to the customs duty.
(d)  By way of derogation from General Rule C 3 contained in Part I, Section I, the exchange rate to be used in converting the unit of account in which
    the customs duty is expressed into national currency shall be the representative rate applicable to wine, if such a rate has been fixed pursuant to
     Council Regulation N o 129 on the value of the unit of account and the exchange rates to be applied for the purposes of the common agricultural
    policy (OJ N o 106, 30. 10. 1962, p. 2553/62).
 ---pagebreak--- N o C 309/20                                  Official J o u r n a l of the E u r o p e a n Communities                                         3 1 . 1 2 . 76
                                                                                                                                     Rate of Duty
    Heading                                                                                                                 autonomous
     number                                                      Description                                                     %            conventional
                                                                                                                              or levy               %
                                                                                                                                (L)
      22.05            C. IV. a) 3. Other                                                                                     19 UA              19 UA
 (continued)                                                                                                                  per hi           per hi (d)
                                                                                                                              (b) (d)
                                b) More than 2 litres :
                                     1. Port, Madeira, sherry and Setubal muscatel (a)                                        13 UA              12 UA
                                                                                                                            per hi (d)         per hi (d)
                                     2. Tokay (Aszu and Szamorodni) (a)                                                       13 UA
                                                                                                                            per hi (d)
                                     3. Wines fortified for distillation, within the meaning of Additional
                                        Note 4 (b) to Chapter 22                                                              19 UA              19 UA
                                                                                                                              per hi           per hi (d)
                                                                                                                            (b) (c) (d)
                                     4. Other                                                                                 19 UA              19 UA
                                                                                                                              per hi           per hi (d)
                                                                                                                              (b) (d)
                           V. Of an actual alcoholic strength exceeding 22°, in containers holding:
                               a) 2 litres or less                                                                           1-60 UA
                                                                                                                          per hi and per
                                                                                                                              degree
                                                                                                                             + 10 UA
                                                                                                                           per hi (b) (c)
                               b) More than 2 litres                                                                         1-60 UA               —
                                                                                                                          per hi and per
                                                                                                                              degree
                                                                                                                              (b) (c)
     22.06             Vermouths, and other wines of fresh grapes flavoured with aromatic
                       extracts:
                       C. Of an actual alcoholic strength exceeding 22°, in containers holding:
                            I. 2 litres or less                                                                              1-60 UA                —
                                                                                                                          per hi and per
                                                                                                                              degree
                                                                                                                             + 10 UA
                                                                                                                            per hi (c)
                           II. More than 2 litres                                                                            1-60 UA
                                                                                                                          per hi and per
                                                                                                                            degree (c)
     22.07             Other fermented beverages (for example, cider, perry and mead):
                       B. Other
                            I. Sparkling                                                                                      30 UA
                                                                                                                               per hi
                           II. Still
                               a) Of an actual alcoholic strength of 15° or less, in containers
                                   holding:
                                   1. 2 litres or less                                                                        12 UA                 —
                                                                                                                               per hi
                                   2. More than 2 litres                                                                       9 UA                 —
                                                                                                                               per hi
(a) Entry under this subheading is subject to conditions to be determined by the competent authorities.
(b) In certain conditions a countervailing tax is payable in respect of certain products in addition to the customs duty.
(c) In certain conditions a supplementary levy is payable in respect of certain products in addition to the customs duty.
(d) By way of derogation from General Rule C 3 contained in Part 1, Section I, the exchange rate to be used in converting the unit of account in which
    the customs duty is expressed into national currency shall be the representative rate applicable to wine, if such a rate has been fixed pursuant to
    Council Regulation N o 129 on the value of the unit of account and the exchange rates to be applied for the purposes of the common agricultural
    policy (OJ N o 106, 30. 10. 1962, p. 2553/62).
 ---pagebreak--- 31. 12. 76                                    Official Journal of the European Communities                                                  N o C 309/21
                                                                                                                                      Rate of Duty
    Heading                                                                                                                 autonomous
     number                                                     Description                                                      %             conventional
                                                                                                                               or levy              %
                                                                                                                                 (L)
      22.07            B. II. b) Of an actual alcoholic strength exceeding 15°, in containers
 (continued)                        holding:
                                    1. 2 litres or less                                                                        12 UA
                                                                                                                            per hi (a)
                                    2. More than 2 litres                                                                      9 UA
                                                                                                                            per hi (a)
     22.08             Ethyl alcohol or neutral spirits, undenatured, of a strength of 80° or higher;
                       denatured spirits (including ethyl alcohol and neutral spirits) of any
                       strength:
                       A. Denatured spirits         (including ethyl alcohol and neutral spirits) of any
                           strength (b)
                             I. Of agricultural origin (b)                                                                     16 UA               —
                                                                                                                            per hi (L)
                            II. Other                                                                                          16 UA               —
                                                                                                                               per hi
                       B. Ethyl alcohol or neutral spirits, undenatured of a strength of 80° or
                           higher
                           I. Of agricultural origin:
                                 a) Obtained from molasses (b)                                                                 30 UA               —
                                                                                                                            per hi (L)
                                b) Obtained f r o m cereals (b)                                                                30 UA               —
                                                                                                                            per hi (L)
                                 c) Vinous or obtained f r o m fruit (b)                                                       30 UA                —
                                                                                                                            per hi (L)
                                 d) Other, including mixtures (b)                                                              30 UA                —
                                                                                                                            per hi (L)
                           II. Other                                                                                           30 UA
                                                                                                                               per hi
      22.09            Spirits (other than those of heading N o 22.08); liqueurs and other spirituous
                       beverages; c o m p o u n d alcoholic preparations (known as 'concentrated ex-
                       tracts') for the manufacture of beverages:
                       A. Spirits (other than those of heading N o 22.08:
                            I. Of agricultural origin
                                a) More than 45-2°:
                                    1. Obtained f r o m molasses, in containers holding:
                                       aa) 2 litres or less (b)                                                               1-60 UA
                                                                                                                          per hi and per
                                                                                                                               degree
                                                                                                                             + 10 UA
                                                                                                                             per hi (L)
                                       bb) More than 2 litres (b)                                                             1-60 UA
                                                                                                                          per hi and per
                                                                                                                            degree (L)
(a) In certain conditions a supplementary levy is payable in respect of certain products in addition to the customs duty.
(b) Entry under this subheading is subject to conditions to be determined by the competent authorities,
 ---pagebreak--- N o C 309/22                                                            Official Journal of the European Communities                                                                                 31. 12. 76
                                                                                                                                                                                      R a t e of D u t y
    Heading                                                                                                                                                               autonomous
     number                                                                                        Description                                                                                    conventional
                                                                                                                                                                             o r levy                     %
                                                                                                                                                                                (L)
      22.09                 A. I. a) 2. Obtained f r o m cereals, in containers holding:
 (continued)                                        aa) 2 litres or less (a)                                                                                               1-60 UA
                                                                                                                                                                        per hi and per
                                                                                                                                                                             degree
                                                                                                                                                                           + 10 UA
                                                                                                                                                                          per hi (L)
                                                    bb) More than 2 litres (a)                                                                                              1-60 UA
                                                                                                                                                                        per hi and per
                                                                                                                                                                          degree (L)
                                                3. Vinous or obtained f r o m fruit, in containers holding:
                                                    aa) 2 litres or less (a)                                                                                               1-60 UA                       —
                                                                                                                                                                        per hi and per
                                                                                                                                                                             degree
                                                                                                                                                                           + 10 UA
                                                                                                                                                                          per hi (L)
                                                    bb) More than 2 litres (a)                                                                                              1-60 UA                      —
                                                                                                                                                                        per hi and per
                                                                                                                                                                          degree (L)
                                                4. Other, including mixtures, in containers holding:
                                                    aa) 2 litres or less (a)                                                                                                1-60 UA                      —
                                                                                                                                                                        per hi and per
                                                                                                                                                                             degree
                                                                                                                                                                           +- 10 UA
                                                                                                                                                                           per hi (L)
                                                     bb) More than 2 litres (a)                                                                                             1.60 UA                      —
                                                                                                                                                                        per hi and per
                                                                                                                                                                          degree (L)
                                         b) of 45-2° or less
                                                1. Obtained from molasses, in containers holding:
                                                    aa) 2 litres or less (a)                                                                                                1-60 UA                 1-60 UA
                                                                                                                                                                        per hi and per per hi and per
                                                                                                                                                                             degree                    degree
                                                                                                                                                                           + 10 UA                  + 10 UA
                                                                                                                                                                          per hi (L)               per hi (L)
                                                    bb) More than 2 litres (a)                                                                                              1-60 UA                 1-60 UA
                                                                                                                                                                        per hi and per per hi and per
                                                                                                                                                                          degree (L)                   degree
                                                2. Obtained f r o m cereals, in containers holding:
                                                    aa) 2 litres or less (a)                                                                                                1-60 UA                 1-60 UA
                                                                                                                                                                        per hi and per per hi and per
                                                                                                                                                                             degree                   degree
                                                                                                                                                                           + 10 UA                 + 10 UA
                                                                                                                                                                           per hi (L)                  per hi
                                                    bb) More than 2 litres (a)                                                                                              1-60 UA                  1-60 UA
                                                                                                                                                                        per hi and per per hi and per
                                                                                                                                                                         degree (L)                    degree
                                                3. Vinous obtained f r o m fruit, in containers holding:
                                                    aa) 2 litres or less (a)                                                                                                1-60 UA                  1-60 UA
                                                                                                                                                                        per hi and per per hi and per
                                                                                                                                                                             degree                    degree
                                                                                                                                                                           + 10 UA                  + 10 UA
                                                                                                                                                                           per hi (L)                   per hi
                                                    bb) More than 2 litres (a)                                                                                              1-60 UA                  1-60 UA
                                                                                                                                                                        per hi and per per hi and per
                                                                                                                                                                          degree (L)                   degree
(a) F.ntrv u n d e r t h i s s u b h e a d i n g is s u b j e c t t o c o n d i t i o n s t o be d e t e r m i n e d by t h e c o m p e t e n t a u t h o r i t i e s .
 ---pagebreak--- 31. 12. 76                                    Official Journal of the European Communities                                 No C 309/23
                                                                                                                     Rate of Duty
     Heading                                                                                               autonomous
     number                                                      Description                                      %          conventional
                                                                                                              or levy              %
                                                                                                                (L)
      22.09            A. I. b) 4. Other, including mixtures, in containers holding:
  (continued)
                                      aa) 2 litres or less (a)                                              1 -60 UA           1-60 UA
                                                                                                         per hi and per per hi and per
                                                                                                              degree            degree
                                                                                                            + 10 UA            + 10 UA
                                                                                                            per hi (L)          per hi
                                       bb) More than 2 litres (a)                                            1-60 UA           1-60 UA
                                                                                                         per hi and per per hi and per
                                                                                                            degree (L)          degree
                          II. Other, in containers holding:
                               a) 2 litres or less                                                           1-60 UA                (b)
                                                                                                         per hi and per
                                                                                                              degree
                                                                                                            + 10 UA
                                                                                                              per hi
                              b) More than 2 litres                                                          1-60 UA               (b)
                                                                                                         per hi and per
                                                                                                              degree
                       B. Compound alcoholic preparations (known as 'concentrated extracts')
                          for the manufacture of beverages:
                           I. Aromatic bitters of an alcoholic strength of 44° to 49° containing
                              from 1-5 % to 6 % by weight of gentian, spices and various ingre-
                              dients and from 4 % to 10 % of sugar, in containers of a capacity
                              of 0-5 litre or less                                                           30 with              Free
                                                                                                            a min. of
                                                                                                             1-60 UA
                                                                                                         per hi and per
                                                                                                           degree (L)
                          II. Other                                                                          30 with          27 with a
                                                                                                             min. of            min. of
                                                                                                             1-60 UA           1-60 UA
                                                                                                         per hi and per per hi and per
                                                                                                           degree (L)           degree
                      C. Spirituous beverages
                            I. Rum, arrak and tafia, in containers holding:
                                a) 2 litres or less                                                          1-10 UA           1-10 UA
                                                                                                         per hi and per per hi and per
                                                                                                              degree            degree
                                                                                                            + 10 UA            + 5 UA
                                                                                                            per hi (L)          per hi
                                b) More than 2 litres                                                        1-10 UA             1 UA
                                                                                                         per hi and per per hi and per
                                                                                                           degree (L)           degree
                           II. Gin, in containers holding:
                                a) 2 litres or less                                                          1-20 UA             1 UA
                                                                                                         per hi and per per hi and per
                                                                                                              degree            degree
                                                                                                            + 10 UA             + 5 UA
                                                                                                            per hi (L)          per hi
                                b) More than 2 litres                                                        1-20 UA             1 UA
                                                                                                         per hi and per per hi and per
                                                                                                           degree (L)           degree
 (a) Entry under this subheading is subject to conditions to be determined by the competent authorities.
(b) See Annex.
 ---pagebreak--- N o C 3 0 9 /2 4                               Official Journal of the European Communities                                    3 1 . 1 2 . 76
                                                                                                                    Rate of Duty
     Heading                                                                                              autonomous
     number                                                     Description                                    %             conventional
                                                                                                             or levy               %
                                                                                                               (L)
     22.09            C. III. Whisky:
  (continued)
                               a) Bourbon whiskey, in containers holding (a):
                                   1. 2 litres or less                                                     1-20 UA            0-70 UA
                                                                                                        per hi and per per hi and per
                                                                                                            degree              degree
                                                                                                           + 10 UA             + 5 UA
                                                                                                          per hi (L)            per hi
                                   2. More than 2 litres                                                   1-20 UA            0-70 UA
                                                                                                        per hi and per per hi and per
                                                                                                          degree (L)            degree
                              b) Other, in containers holding:
                                   1. 2 litres or less                                                     1-20 UA            0-80 UA
                                                                                                        per hi and per per hi and per
                                                                                                            degree             degree
                                                                                                           + 10 UA             + 5 UA
                                                                                                          per hi (L)            per hi
                                   2. More than 2 litres                                                   1-20 UA            0-80 UA
                                                                                                        per hi and per per hi and per
                                                                                                          degree (L)           degree
                          IV. Vodka with an ethyl alcohol content of 45-2° or less and plum,
                              pear or cherry brandy, in containers holding:
                               a) 2 litres or less                                                         1-60 UA            1-30 UA
                                                                                                        per hi and per per hi and per
                                                                                                            degree             degree
                                                                                                           + 10 UA             + 5 UA
                                                                                                          per hi (L)            per hi
                               b) More than 2 litres                                                       1-60 UA            1-30 UA
                                                                                                        per hi and per per hi and per
                                                                                                          degree (L)           degree
                           V. Other spirituous beverages:
                              a) Brandy (other than brandy made from stone fruit, seed fruit or
                                   seed-fruit marc):
                                   1. With an ethyl alcohol content of more than 45-2° in containers
                                       holding:
                                       aa) 2 litres or less                                                1-60 UA                —
                                                                                                        per hi and per
                                                                                                            degree
                                                                                                           + 10 UA
                                                                                                          per hi (L)
                                       bb) More than 2 litres                                              1-60 UA
                                                                                                        per hi and per
                                                                                                          degree (L)
(a) Entry under this subheading is subject to conditions to be determined by the competent authorities.
 ---pagebreak--- 31.12.76                         Official Journal of the European Communities                               No C 309/25
                                                                                                      Rate of Duty
    Heading                                                                                autonomous
    number                                     Description                                       %            conventional
                                                                                               or levy             %
                                                                                                 (L)
    22.09    C. V. a) 2. With an ethyl alcohol content of 45-2c or less, in containers
 (continued)              holding:
                          aa) 2 litres or less                                               1-60 UA           1-60 UA
                                                                                         per hi and per per hi and per
                                                                                              degree            degree
                                                                                            + 10 UA            + 10 UA
                                                                                            per hi (L)           per hi
                          bb) More than 2 litres                                             1-60 UA           1-60 UA
                                                                                         per hi and per per hi and per
                                                                                           degree (L)           degree
                    b) Liqueurs:
                       1. With an ethyl alcohol content of more than 45-2c in containers
                          holding:
                          aa) 2 litres or less                                               1-60 UA
                                                                                         per hi and per
                                                                                              degree
                                                                                            + 10 UA
                                                                                           per hi (L)
                          bb) More than 2 litres                                            1-60 UA
                                                                                         per hi and per
                                                                                           degree (L)
                      2. With an ethyl alcohol content of 45-2° or less, in containers
                          holding:
                          aa) 2 litres or less                                              1-60 UA            1-60 UA
                                                                                         per hi and per per hi and per
                                                                                              degree            degree
                                                                                            + 10 UA            + 10 UA
                                                                                           per hi (L)           per hi
                          bb) More than 2 litres                                            1-60 UA            1-60 UA
                                                                                         per hi and per per hi and per
                                                                                           degree (L)           degree
                   c) Other, in containers holding:
                      1. 2 litres or less                                                    1-60 UA
                                                                                         per hi and per
                                                                                              degree
                                                                                            + 10 UA
                                                                                           per hi (L)
                      2. More than 2 litres                                                  1-60 UA
                                                                                         per hi and per
                                                                                           degree (L)