Wine

This Regulation significantly reforms the common market organisation (CMO) for wine. It aims to guarantee both the competitiveness and the sustainability of the wine sector. It entered into force on 1 August 2008.

ACT

Council Regulation (EC) No 479/2008 of 29 April 2008 on the common organisation of the market in wine, amending Regulations (EC) No 1493/1999, (EC) No 1782/2003, (EC) No 1290/2005 and (EC) No 3/2008, and repealing Regulations (EEC) No 2392/86 and (EC) No 1493/1999 [See amending acts].

SUMMARY

The common market organisation (CMO) established by this Regulation covers the wine sector, which will be incorporated into the single CMO for agricultural markets. The wine CMO Regulation aims in particular to establish clear and effective rules that make it possible to balance supply and demand and to steer the sector towards sustainable and competitive development. Its objective is also to preserve the best traditions of European wine-production, to strengthen the social fabric in many rural areas and to ensure that production is environmentally-friendly.

Support measures

Member States can receive Community funds for specific measures taken to assist the wine sector through national support programmes. The Member States had until 30 June 2008 to submit their draft five-year support programmes, including a detailed description of the proposed measures as well as criteria for monitoring and evaluation, to the Commission. The drafts may take regional peculiarities into account.

The measures eligible for these support programmes are:

• Single Payment Scheme support ;
• promoting European wines on third-country markets;
• restructuring and conversion of vineyards. The contribution must not exceed 50% of the total cost, except in regions classified as “convergence regions” where it may represent up to 75% of the actual cost;
• green harvesting in order to limit supply to the market;
• mutual funds to protect against market fluctuations;
• harvest insurance to safeguard producers’ incomes in the event of natural disasters, adverse climatic events, diseases or pest infestations;
• tangible or intangible investments to improve competitiveness;
• distillation of by-products of winemaking;
• potable alcohol distillation (until 31 July 2012);
• crisis distillation to dispose of surplus wine (until 31 July 2012);
• use of concentrated grape must to increase products’ natural alcoholic strength (until 31 July 2012).

The Member States may grant complementary national aid in addition to the Community support, in accordance with the Community rules on State aid and only for measures involving promotion in third-country markets, harvest insurance and investments.

Some funding will be transferred to rural development measures and will be strictly ring-fenced for wine-growing regions.

Regulatory measures

The Member States may decide which wine grape varieties are permitted on their territory for the purposes of wine production, provided that these varieties belong to the Vitis vinifera species or come from a cross between said species and other species of the genus Vitis.

The designations for the categories of grapevine products (wine *, sparkling wine *, wine vinegar *, etc.) are predefined and may not be used within the Community for products that do not meet the required conditions.

From 1 August 2009, the Commission, with the assistance of the Member States represented on a regulatory committee, shall be responsible for authorising the oenological practices * permitted within the European Union, based in particular on the practices recommended by the International Organisation of Vine and Wine (OIV). The Member States can impose more stringent restrictions for wines produced on their territory in order to preserve the essential characteristics of wines with a protected designation of origin or a protected geographical indication, and of sparkling wines and liqueur wines.

The rules on designations of origin * , geographical indications * and traditional terms * will apply as from 1 August 2009 in order to protect the interests of consumers and producers and to promote the production of high-quality products.

The labelling rules will be simplified as from 1 August 2009. The labelling of wines without a geographical indication or a designation of origin may include the vine variety and the vintage year.

Producer organisations and inter-branch organisations may be given recognition by the Member States, subject to certain conditions. Their common goal is to better adjust supply to demand, which may include promoting environmentally-friendly cultivation practices and production techniques.

Trade with third countries

Trade with third countries can be made subject to the presentation of an import or export licence issued by the Member States to any interested applicant, irrespective of his place of establishment in the Community. The issue of these licences is subject to the lodging of a security guaranteeing that the products are imported or exported during the term of validity of the licence. These licences are valid throughout the Community.

In the absence of any contrary provisions (such as additional duties under safeguard measures), the rates of duty in the Common Customs Tariff shall apply to wine products; for grape juice * and must *, application of the Common Customs Tariff will depend on their entry price.

Production potential

Unlawful plantings planted after 31 August 1998 must be grubbed up at the producers’ expense. Areas planted with vines without a corresponding planting right before 1 September 1998 must be brought into compliance. Producers have until 31 December 2009 to achieve compliance against payment of a fee; after this date, the vineyards concerned must be grubbed up at the expense of the producers concerned. Grapes and other products from unlawful plantations may only be put into circulation for the purposes of distillation, at the exclusive expense of the producer. The distilled products will be used to make alcohol which has an actual alcoholic strength by volume of at least 80% vol.

In principle, the prohibition on planting vines of varieties classified as wine grape varieties will remain in force until 31 December 2015. However, the Member States may decide to maintain the prohibition on all or part of their territory until 31 December 2018 at the latest. The reserves of rights system has been maintained. This system involves replanting rights which have not been used within the prescribed time periods; these rights can be granted to young farmers and, in exchange for a financial payment, to other producers.

New planting rights may be granted to producers by the Member States as a result of land consolidation or compulsory purchase measures, or for experimental purposes, graft nurseries or domestic consumption.

Replanting rights may be granted by the Member States to producers who have, or who have agreed to, grub up an area planted with vines, within three wine years. In principle, these replanting rights should be exercised in the holding in respect of which they were granted. No replanting rights will be granted in respect of areas which have received grubbing-up premiums.

Grubbing-up premiums will be available until the end of the wine year 2010-2011 for a maximum area of 175,000 hectares. The specific amount of the premium is decided by the Member States within the limits of the scales set at Community level. The Member States can end the grubbing-up scheme if the area concerned reaches 8% of the total area planted with vines or 10% of the area of a given region. The Commission can also suspend the grubbing-up scheme if the area involved exceeds 15% of the total area planted with vines in a Member State or when, in any given year, the area grubbed-up represents over 6% of this total planted area. A State can exclude vines located in mountainous regions or on steep slopes from the grubbing-up scheme, as well as areas where there is a proven environmental risk. Complementary national aid may be granted, but must not exceed 75% of the value of the grubbing-up premium.

Control and monitoring

The products covered by this Regulation may only be put into circulation within the Community if they have an officially-checked accompanying document.

The Member States shall designate one or more bodies which are responsible for ensuring compliance with the Community law provisions on the wine sector.

Following the adoption of the single CMO for agricultural products, the Commission shall be assisted by the Management Committee for the Common Organisation of Agricultural Markets.

Context

This Regulation follows the evaluation and consultation process which aimed to better identify and target the needs of the wine sector. It also follows on from the Communication of 22 June 2006 entitled “Towards a sustainable European wine sector”, which should be in the archives) that sets out a number of possible options for the reform of the wine sector.

RELATED ACTS

Procedural rules

Commission Regulation (EC) No 607/2009 of 14 July 2009 laying down certain detailed rules for the implementation of Council Regulation (EC) No 479/2008 as regards protected designations of origin and geographical indications, traditional terms, labelling and presentation of certain wine sector products [Official Journal L 193 of 24.7.2009].

Commission Regulation (EC) No 606/2009 of 10 July 2009 laying down certain detailed rules for implementing Council Regulation (EC) No 479/2008 as regards the categories of grapevine products, oenological practices and the applicable restrictions [Official Journal L 193 of 24.7.2009].

Commission Regulation (EC) No 436/2009 of 26 May 2009 laying down detailed rules for the application of Council Regulation (EC) No 479/2008 as regards the vineyard register, compulsory declarations and the gathering of information to monitor the wine market, the documents accompanying consignments of wine products and the wine sector registers to be kept [Official Journal L 128 of 27.5.2009].

Commission Regulation (EC) No 555/2008 of 27 June 2008 laying down detailed rules for implementing Council Regulation (EC) No 479/2008 on the common organisation of the market in wine, as regards support programmes, trade with third countries, production potential and on controls in the wine sector [Official Journal L 170 of 30.6.2008].See consolidated version (pdf)

Grubbing-up premium

Commission Regulation (EC) No 1123/2008 of 12 November 2008 fixing a single percentage for acceptance of the amounts notified by the Member States to the Commission concerning the applications for the grubbing-up premium [Official Journal L 303 of 14.11.2008].

See also

• Lists – wine sector
• Database on protected geographical indications

Last updated: 22.07.2009