31974R1877

20 . 7. 74 Official Journal of the European Communities No L 198/3

REGULATION (EEC) No 1877 /74 OF THE COUNCIL of 15 July 1974 on the distillation of the by-products of wine making

THE COUNCIL OF THE EUROPEAN moreover, permits the distillation of wine in the COMMUNITIES , absence of grape marc or wine lees ; whereas, under these conditions, it is logical to allow the production Having regard to the Treaty establishing the European of a potable spirit from wine as well as a potable spirit Economic Community ; from grape marc ;

Having regard to Council Regulation (EEC) No 816/70 (') of 28 April 1970 laying down additional Whereas the production of a potable spirit must lead provisions for the common organization of the market to the release from the obligation to deliver alcohol in wine, as last amended by Regulation (EEC) No only in respect of the quantity of alcohol contained in 1532/74 (2), and in particular Article 24 (2) and (3) the potable spirit produced ; thereof ;

Having regard to the proposal from the Commission ; Whereas, in order to prevent potable spirits of medi­ ocre quality from being produced, it is necessary, in Whereas the fixing of the price to be paid for alcohol the absence of any Community criteria on the subject, delivered to intervention agencies under the obliga­ to provide that the potable spirits produced should tion to distil the by-products of wine making, referred conform to national provisions in force , whereas, to to in the first subparagraph of Article 24 (2) of Regula­ ensure that these are observed, provision should be tion (EEC) No 816/70, and that of the maximum made for inspection ; amount of the contribution to be made by the Guarantee Section of the European Agricultural Guid­ ance and Guarantee Fund to the costs borne by those Whereas the first subparagraph of Article 24 (3) of agencies are closely linked to the fixing of the guide Regulation (EEC) No 816/70 provides that certain price ; whereas there should therefore be the same production regions may be exempted from the obliga­ interval and time limit for both these operations ; tion to distil the by-products of wine making ; whereas in Germany and Luxembourg grape marcs Whereas the intervention agencies designated by and wine lees generally contain little alcohol and the Member States must buy in alcohol delivered to them costs involved in recovering it would be very high ; in fulfilment of the obligation to distil the under these conditions, producers in these regions by-products of wine making at a price at which the should not be obliged to distil their grape marcs and producer subject to the obligation to distil is not wine lees, while remaining subject nevertheless to the placed at a disadvantage in relation to the producer prohibitions of Article 24 ( 1 ) of that Regulation ; who is not subject to that obligation ;

Whereas, in the absence of any market in ethyl Whereas the obligation to distil is a burden for the alcohol at Community level, the intervention agencies isolated producer who makes only a small quantity of responsible for marketing that alcohol risk having to wine ; whereas such obligation would involve him in resell it at a price lower than the buying-price ; transport costs for his grape marcs and wine lees out whereas it is necessary to provide that, in such cases, of all proportion to the return which he could expect the difference between the buying-in price and the from the alcohol which might be recovered ; whereas selling price of that alcohol can be met, within a such producers should therefore also be exempted maximum amount, by the Guarantee Section of the from the obligation to distil but remain subject, European Agricultural Guidance and Guarantee Fund, nevertheless, to the prohibitions referred to above ; provided that the contribution does not exceed the whereas, however, some of these small-scale producers difference ; are already in the habit of distilling their grape marcs and wine lees and whereas they should be allowed to Whereas the third subparagraph of Article 24 (2) of continue in this practice ; whereas they should there­ Regulation (EEC) No 816/ 70 provides that the fore be allowed to forego exemption and become producer may be discharged from the obligation to thereby comparable in all respects to producers who distil by producing potable spirits ; whereas the first are not exempt ; whereas in order to prevent deliveries of alcohol to the intervention agencies from becoming subparagraph of Article 24 (2) of that Regulation, too irregular, an isolated producer should , once he has (') OJ No L 99, 5 . 5 . 1970, p. 1 . foregone exemption, undertake to continue to do so, (2) OJ No L 166, 21 . 6. 1974, p. 1 . until the validity of this Regulation expires ;

No L 198 /4 Official Journal of the European Communities 20 . 7 . 74

Whereas producers who deliver their grape marcs for fixed annually before 1 August for the following wine­ the manufacture of oenocyanine generally supply growing year. unfermented grape marcs ; whereas the processes to which these are subjected in order to extract the oeno­ Article 2 cyanine render them thereafter unsuitable for fermen­ tation and distillation ; whereas such producers should be exempt pro rata in relation to their production of 1 . The buying-in price shall be fixed at a level at grape marcs ; whereas an exact calculation is not which the producer distilling his by-products of wine possible ; whereas, therefore, provision should be making, or having them distilled, can be assured of a made for a fixed reduction in the general rate ; return comparable to that which he would have had if he had not been subject to the obligation to distil, Whereas, in accordance with Article 10 ( 1 ) of Council referred to in the first subparagraph of Article 24 (2) Regulation (EEC) No 817/70 (•) of 28 April 1970 of Regulation (EEC) No 816/70 . laying down special provisions relating to quality wines produced in specified regions, as last amended 2. The buying-in price shall be fixed per hectolitre/ by Regulation (EEC) No 2680/72 (2), a yield per degree of alcohol . It shall apply to unpacked goods, hectare is fixed for each of the quality wines psr, ex-distillery loaded into a means of transport chosen which facilitates observance of the prohibition against by the intervention agency . the pressing of wine lees and over-pressing of grapes ; whereas, moreover, the marcs and lees of certain The actual alcoholic strength of the products obtained quality wines psr contain little alcohol and whereas it from the distillation of the by-products of wine is useful to be able to apply a reduced rate to those making and delivered to the intervention agency may products ; not be less than 52° .

Whereas the obligation to distil is a burden for producers whose vineyards are situated in small Article 3 islands and who do not have adequate transport links at their disposal ; whereas such obligation would The maximum amount of contribution from the involve them in transport costs for products subject to Guarantee Section of the European Agricultural Guid­ the obligation to distil which would exceed the return ance and Guarantee Fund shall be fixed per hectoli­ on the alcohol obtained ; whereas, provision should tre/degree of alcohol . therefore be made for producers whose vineyards are situated in small islands to be discharged from the Article 4 obligation to distil , while nevertheless remaining subject to the prohibitions contained in Article 24 ( 1 ) 1 . Contribution from the Guarantee Section of the of Regulation (EEC) No 816/70 ; European Agricultural Guidance and Guarantee Fund Whereas the provisions concerning the financing of shall be paid , up to the maximum amount laid down intervention laid down in Council Regulation (EEC) in accordance with Article 1 , only where, during a No 729/70 (3) of 21 April 1970 on the financing of given budgetary year, the overall expenditure of an the common agricultural policy should be extended to intervention agency for the buying-in of alcohol apply also to the distillation of the by-products of obtained by the distillation of the by-products of wine wine making ; making is greater than the income from the sale of such alcohol . Whereas the period of application of this Regulation should be limited so that future developments in this 2. If the difference referred to in paragraph 1 is less field may be taken into account, than the maximum amount multiplied by the quanti­ ties sold , the contribution shall be equal to that differ­ ence . HAS ADOPTED THIS REGULATION :

Article 5 Article 1 1 . Producers may, in partial or total discharge of The price to be paid to producers for alcohol deliv­ the obligation to distil , produce or have produced ered to intervention agencies, hereinafter called the 'buying-in price', and the maximum amount of the potable spirits of grape marcs or potable spirits of wine from their own products . contribution by the Guarantee Section of the Euro­ pean Agricultural Guidance and Guarantee Fund 2 . The quantity of alcohol , expressed as pure towards the costs devolving on these agencies shall be alcohol , contained in the potable spirits shall be deducted from the quantity of alcohol which must be (') OJ No L 99 , 5 . 5 . 1970, p. 20 . (2 ) OJ No L 289 , 27 . 12 . 1972, p. 1 . delivered pursuant to the first subparagraph of Article (3 ) OJ No L 94, 28 . 4. 1970, p. 13 . 24 ( 2) of Regulation ( EEC) No 816/ 70 .

20 . 7 . 74 Official Journal of the European Communities No L 198 / 5

3 . The production of potable spirits may have the 2. Producers who deliver their grape marcs for the effect mentioned in paragraph 1 only if : manufacture of oenocyanine may be subject to a reduced rate . (a) the quality of the potable spirit obtained conforms to national provisions on the subject ; the producer 3 . Producers of certain quality wines psr may be or distiller shall supply proof thereof to the compe­ subject to reduced rates in respect of that part of their tent agency ; harvest which can qualify for such description . (b) it is carried out under the supervision of the competent agency ; the producer and the distiller Article 8 are required to permit that supervision at any moment during distillation . Producers whose vineyards are situated in the Italian islands, except Sicily and Sardinia, shall not be subject Article 6 to the obligation to distil .

Producers whose vineyards are situated in wine­ Article 9 growing zone A or in the German part of wine­ growing zone B shall not be subject to the obligation Articles 4 and 5 of Regulation ( EEC) No 729/70 shall to distil . apply to contribution from the Guarantee Section of the European Agricultural Guidance and Guarantee Article 7 Fund, provided for in this Regulation .

1 . Isolated producers who, during a wine-growing Article 10 year, do not make more than 30 hectolitres of wine shall not be subject to the obligation to distil . This Regulation shall enter into force on the third day following its publication in the Official Journal of However, such producers may forego this exemption . the European Communities. Such action shall bind them for the period from the date on which this action is taken until the validity of It shall apply to the 1974/75, 1975/76 and 1976/77 this Regulation expires . wine-growing years .

This Regulation shall be binding in its entirety and directly applicable in all Member States .

Done at Brussels, 15 July 1974. For the Council

The President Christian BONNET