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COUNCIL REGULATION ( EEC ) NO 343/79

OF 5 FEBRUARY 1979

LAYING DOWN GENERAL RULES GOVERNING CERTAIN DISTILLATION OPERATIONS IN THE WINE SECTOR

THE COUNCIL OF THE EUROPEAN COMMUNITIES ,

HAVING REGARD TO THE TREATY ESTABLISHING THE EUROPEAN ECONOMIC COMMUNITY ,

HAVING REGARD TO COUNCIL REGULATION ( EEC ) NO 337/79 OF 5 FEBRUARY 1979 ON THE COMMON ORGANIZATION OF THE MARKET IN WINE ( 1 ) , AND IN PARTICULAR ARTICLES 11 ( 3 ) , 12 ( 3 ) , 13 ( 3 ) , 40 ( 5 ) AND 41 ( 3 ) THEREOF ,

HAVING REGARD TO THE PROPOSAL FROM THE COMMISSION ( 2 ) ,

WHEREAS THE CONDITIONS SHOULD BE LAID DOWN UNDER WHICH THE DISTILLATION OPERATIONS PROVIDED FOR IN ARTICLES 11 , 12 , 13 , 40 AND 41 OF REGULATION ( EEC ) NO 337/79 ARE TO BE CARRIED OUT ;

WHEREAS THE DIFFERENT PRICES FOR WINES FOR DISTILLATION LAID DOWN IN THE AFOREMENTIONED ARTICLES NORMALLY RENDER IT IMPOSSIBLE TO MARKET THE PRODUCTS OF DISTILLATION AT MARKET PRICES ; WHEREAS IT IS THEREFORE NECESSARY TO DETERMINE THE CRITERIA FOR FIXING THE AMOUNT OF AID SO AS TO ENABLE THE PRODUCTS OBTAINED TO BE DISPOSED OF ;

WHEREAS PROVISION SHOULD BE MADE FOR THE MINIMUM PRICE GUARANTEED TO THE PRODUCER TO BE PAID TO HIM , AS A GENERAL RULE , WITHIN TIME LIMITS WHICH WILL ENABLE HIM TO OBTAIN A PROFIT COMPARABLE TO THAT WHICH HE WOULD HAVE OBTAINED FROM A COMMERCIAL SALE ;

WHEREAS PROVISION SHOULD BE MADE FOR PRODUCERS TO CONCLUDE CONTRACTS WITH DISTILLERS SUBJECT TO APPROVAL BY THE INTERVENTION AGENCY , IN ORDER TO FACILITATE THE CONTROL OF THE PROGRESS OF OPERATIONS AND OF THE OBSERVANCE OF THE OBLIGATIONS OF BOTH PARTIES ; WHEREAS THIS SYSTEM WOULD HAVE THE ADDED ADVANTAGE OF MAKING IT EASIER TO MONITOR THE QUANTITATIVE EFFECTS OF DISTILLATION ON THE MARKET ;

WHEREAS , IN ORDER TO ENSURE APPROPRIATE CONTROL OF THE DISTILLATION PROVIDED FOR IN ARTICLES 11 , 12 , 13 , 40 AND 41 OF REGULATION ( EEC ) NO 337/79 , DISTILLERS SHOULD BE SUBJECT TO A SYSTEM OF APPROVAL ;

WHEREAS , ON THE BASIS OF EXPERIENCE GAINED AND PENDING THE ADOPTION OF NEW RULES IN THE MATTER , A CERTAIN MARGIN SHOULD BE ALLOWED FOR THE QUANTITY OF WINE INDICATED IN CERTAIN CONTRACTS FOR THE DELIVERY OF WINES CONCLUDED DURING THE 1976/77 , 1977/78 AND 1978/79 MARKETING YEARS ; WHEREAS , MOREOVER , PROVISION SHOULD BE MADE IN CHANCE CIRCUMSTANCES OR CASES OF FORCE MAJEURE , FOR AID TO BE PAID IN RESPECT OF THE QUANTITY OF WINE WHICH HAS ACTUALLY BEEN DISTILLED ,

HAS ADOPTED THIS REGULATION :

ARTICLE 1

1 . PRODUCERS UNDERTAKING THE DISTILLATION OF WINE PURSUANT TO ARTICLES 11 , 12 , 13 , 40 AND 41 OF REGULATION ( EEC ) NO 337/79 SHALL CONCLUDE CONTRACTS FOR THE DELIVERY OF WINE WITH AN APPROVED DISTILLER BEFORE A DATE TO BE FIXED .

THESE CONTRACTS SHALL NOT BE VALID UNLESS APPROVED BY THE INTERVENTION AGENCY BEFORE A DATE TO BE FIXED .

2 . THESE CONTRACTS SHALL COVER :

( A ) THE PURCHASE BY THE DISTILLER OF THE QUANTITY OF WINE ENTERED IN THE CONTRACT ;

( B ) THE OBLIGATION FOR THE DISTILLER TO PROCESS THE WINE INTO A PRODUCT WITH A STRENGTH OF 86 % VOL OR MORE , OR INTO A PRODUCT WITH A STRENGTH OF 85 % VOL OR LESS AND TO PAY FOR IT AT LEAST THE PRICE REFERRED TO IN ARTICLES 11 ( 2 ) , 12 ( 2 ) , 13 ( 2 ) , 40 ( 3 ) AND 41 ( 2 ) OF REGULATION ( EEC ) NO 337/79 , AS APPROPRIATE , SUCH PRICE BEING APPLICABLE TO UNPACKED GOODS EX PRODUCER'S PREMISES .

ARTICLE 2

1 . THE INTERVENTION AGENCY SHALL PAY AID FOR EACH HECTOLITRE OF WINE DISTILLED .

2 . THE AMOUNT OF THE AID SHALL BE FIXED ON THE BASIS OF THE MINIMUM BUYING-IN PRICE REFERRED TO IN ARTICLE 1 ( 2 ) ( B ) , THE STANDARD PROCESSING COSTS AND THE PRICE OF THE PRODUCTS OBTAINED BY DISTILLATION , SO AS TO ENABLE THESE PRODUCTS TO BE DISPOSED OF .

3 . THE AMOUNT OF AID GRANTED SHALL VARY DEPENDING ON WHETHER THE PRODUCTS OF DISTILLATION HAVE AN ALCOHOLIC STRENGTH BY VOLUME OF :

- 86 % VOL OR MORE , OR

- 85 % VOL OR LESS .

HOWEVER , THE AMOUNT OF AID GRANTED FOR PRODUCTS WITH AN ALCOHOLIC STRENGTH BY VOLUME OF 85 % VOL OR LESS MAY NOT EXCEED THE AMOUNT OF AID GRANTED FOR PRODUCTS WITH AN ALCOHOLIC STRENGTH BY VOLUME OF 86 % VOL OR MORE .

ARTICLE 3

SHOULD ARTICLE 13 ( 1 ) OF REGULATION ( EEC ) NO 337/79 APPLY , IT MAY BE DECIDED TO LIMIT DISTILLATION TO PRODUCTS WITH AN ALCOHOLIC STRENGTH BY VOLUME OF 86 % VOL OR MORE .

IN THIS CASE , ARTICLES 1 AND 2 , IN SO FAR AS THEY REFER TO A PRODUCT WITH AN ALCOHOLIC STRENGTH BY VOLUME OF 85 % VOL OR LESS , SHALL NOT APPLY .

ARTICLE 4

1 . WHEN THE TOTAL QUANTITY OF WINE IN THE CONTRACT ENTERS THE DISTILLERY , THE DISTILLER SHALL PAY THE PRODUCER AT LEAST THE DIFFERENCE BETWEEN THE MINIMUM BUYING-IN PRICE REFERRED TO IN ARTICLE 1 ( 2 ) ( B ) AND THE AID PROVIDED FOR IN ARTICLE 2 .

2 . WITHIN TWO WEEKS OF ENTRY INTO THE DISTILLERY OF THE TOTAL QUANTITY OF WINE IN THE CONTRACT , THE INTERVENTION AGENCY SHALL PAY THE PRODUCER AN AMOUNT EQUAL TO 30 % OF THE MINIMUM BUYING-IN PRICE REFERRED TO IN ARTICLE 1 ( 2 ) ( B ) TO BE DEDUCTED FROM THE AID PROVIDED FOR IN ARTICLE 2 . IN NO CASE MAY THIS AMOUNT BE GREATER THAN THE SAID AID .

3 . WHEN PROOF IS SUPPLIED THAT THE TOTAL QUANTITY OF WINE IN THE CONTRACT HAS BEEN DISTILLED , THE INTERVENTION AGENCY SHALL PAY THE PRODUCER THE DIFFERENCE BETWEEN THE AID PROVIDED FOR IN ARTICLE 2 AND THE AMOUNT REFERRED TO IN PARAGRAPH 2 .

4 . MEMBER STATES MAY PROVIDE THAT THE AMOUNT REFERRED TO IN PARAGRAPH 2 SHALL BE PAID :

- BY THE INTERVENTION AGENCY TO THE PRODUCER WITHIN TWO WEEKS OF APPROVAL OF THE CONTRACT ,

- BY THE DISTILLER .

IN THE LATTER CASE THE INTERVENTION AGENCY SHALL REIMBURSE THIS AMOUNT TO THE DISTILLER WHEN THE PROOF REFERRED TO IN PARAGRAPH 3 IS SUPPLIED .

5 . WHERE DISTILLATION TAKES PLACE IN A MEMBER STATE OTHER THAN THE MEMBER STATE WHERE THE PRODUCER IS LOCATED , THE MINIMUM BUYING-IN PRICE REFERRED TO IN ARTICLE 1 ( 2 ) ( B ) SHALL BE PAID BY THE DISTILLER .

6 . BY WAY OF DEROGATION FROM PARAGRAPHS 1 TO 4 , THE MINIMUM BUYING-IN PRICE MAY BE PAID BY THE INTERVENTION AGENCY OR THE DISTILLER IN ONE PAYMENT AFTER DISTILLATION OF THE TOTAL QUANTITY OF WINE APPEARING IN THE CONTRACT .

ARTICLE 5

DISTILLATION SHALL TAKE PLACE DURING PERIODS TO BE FIXED .

IT MAY , HOWEVER , BE DECIDED TO BRING FORWARD THE COMPLETION DATE FOR THE DISTILLATION OPERATIONS REFERRED TO IN ARTICLES 11 , 12 AND 13 OF REGULATION ( EEC ) NO 337/79 , SHOULD THE ECONOMIC SITUATION OF THE MARKET REQUIRE IT , WITH DUE CONSIDERATION FOR INTER ALIA :

- THE WEIGHTED AVERAGE PRICE LEVEL ,

- MARKET AVAILABILITY ,

IN THE CASE OF THE TYPES OF WINE AFFECTED BY THE DISTILLATION MEASURES IN QUESTION .

ARTICLE 6

1 . A MARGIN OF 10 % MORE OR LESS THAN THE QUANTITY OF WINE INDICATED IN THE CONTRACTS REFERRED TO IN ARTICLE 1 SHALL BE PERMITTED .

THIS MARGIN SHALL NOT , HOWEVER , BE PERMITTED IN THE CASE OF CONTRACTS REGARDING THE DISTILLATION REFERRED TO IN ARTICLE 40 OR FOR THAT REFERRED TO IN ARTICLE 41 OF REGULATION ( EEC ) NO 337/79 .

2 . WHERE , DUE TO CHANCE CIRCUMSTANCES OR FOR REASONS OF FORCE MAJEURE , ALL OR SOME OF THE WINE COVERED BY A CONTRACT REFERRED TO IN ARTICLE 1 CANNOT BE DISTILLED , THE DISTILLER OR THE PRODUCER SHALL IMMEDIATELY SO INFORM :

- THE INTERVENTION AGENCY OF THE MEMBER STATE IN WHOSE TERRITORY THE DISTILLATION PREMISES ARE LOCATED AND ,

- IF THE PRODUCER'S WINERY IS LOCATED IN ANOTHER MEMBER STATE , THE INTERVENTION AGENCY OF THE SECOND MEMBER STATE .

3 . IN THE CASES REFERRED TO IN PARAGRAPHS 1 AND 2 THE INTERVENTION AGENCY SHALL PAY THE AID REFERRED TO IN ARTICLE 2 ( 3 ) IN RESPECT OF THAT QUANTITY OF WINE WHICH HAS ACTUALLY BEEN DISTILLED .

4 . THIS ARTICLE SHALL APPLY TO DELIVERY CONTRACTS CONCLUDED DURING THE 1976/77 , 1977/78 AND 1978/79 MARKETING YEARS .

ARTICLE 7

FOR THE PURPOSES OF THIS REGULATION AN APPROVED DISTILLER MEANS A DISTILLER INCLUDED ON A LIST TO BE COMPILED BY THE COMPETENT AUTHORITIES OF THE MEMBER STATES .

UNDER CONDITIONS TO BE LAID DOWN AS PART OF THE IMPLEMENTING RULES , APPROVAL MAY BE WITHDRAWN BY THESE AUTHORITIES FROM DISTILLERS WHO DO NOT FULFIL THEIR OBLIGATIONS UNDER THIS REGULATION .

ARTICLE 8

1 . MEMBER STATES SHALL APPOINT AN INTERVENTION AGENCY TO BE RESPONSIBLE FOR IMPLEMENTING THIS REGULATION .

2 . THE INTERVENTION AGENCY RESPONSIBLE SHALL IN EVERY CASE BE THAT LOCATED ON THE TERRITORY WHERE DISTILLATION TAKES PLACE .

ARTICLE 9

1 . COUNCIL REGULATION ( EEC ) NO 1931/76 OF 20 JULY 1976 LAYING DOWN GENERAL RULES GOVERNING THE DISTILLATION OF WINES PROVIDED FOR IN ARTICLES 6B , 6C , 6D , 24A AND 24B OF REGULATION ( EEC ) NO 816/70 ( 3 ) , AS LAST AMENDED BY REGULATION ( EEC ) NO 2609/78 ( 4 ) , IS HEREBY REPEALED .

2 . REFERENCES TO THE REGULATION REPEALED BY PARAGRAPH 1 SHALL BE CONSTRUED AS REFERENCES TO THIS REGULATION .

REFERENCES TO THE ARTICLES OF THE REPEALED REGULATION SHALL BE READ IN ACCORDANCE WITH THE TABLE OF EQUIVALENCE SET OUT IN THE ANNEX .

ARTICLE 10

THIS REGULATION SHALL ENTER INTO FORCE ON 2 APRIL 1979 .

THIS REGULATION SHALL BE BINDING IN ITS ENTIRETY AND DIRECTLY APPLICABLE IN ALL MEMBER STATES .

DONE AT BRUSSELS , 5 FEBRUARY 1979 .

FOR THE COUNCIL

THE PRESIDENT

P . MEHAIGNERIE

( 1 ) SEE PAGE 1 OF THIS OFFICIAL JOURNAL .

( 2 ) OJ NO C 276 , 20 . 11 . 1978 , P . 52 .

( 3 ) OJ NO L 211 , 5 . 8 . 1976 , P . 5 .

( 4 ) OJ NO L 315 , 9 . 11 . 1978 , P . 10 .

ANNEX

TABLE OF EQUIVALENCE

REGULATION ( EEC ) NO 1931/76*THIS REGULATION*

ARTICLE 2A*ARTICLE 3*

ARTICLE 3*ARTICLE 4*

ARTICLE 4*ARTICLE 5*

ARTICLE 4A*ARTICLE 6*

ARTICLE 5*ARTICLE 7*

ARTICLE 6*ARTICLE 8