No L 241/108 Official Journal of the European Communities - 1. 9. 88 COMMISSION REGULATION (EEC) No 2729/88 of 31 August 1988 laying down detailed rules for the application of Regulation (EEC) No 1442/88 on the granting, for the 1988/89 to 1995/96 wine years, of permanent abandonment premiums of wine-growing areas THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, Having regard to Council Regulation (EEC) No 1442/88 of 24 May 1988 on the granting, for the 1988/89 to 1995/96 wine years, of permanent abandonment premiums in respect of wine-growing areas ('), and in particular Article 20 thereof, ‘ Having regard to the Act of Accession of Spain and . Portu_gal, and in particular Article 90 thereof, Whereas the conditions under which Member States may grant the premiums provided for in Regulation (EEC) No 1442/88 should be determined for all classes of wine-growing area; Whereas the grape varieties referred to in the first indent to Article 2 (1) (c) of Regulation (EEC) No 1442/88 should be listed ; Whereas the levels of premium to apply to Spain in accordance with Article 2 (4) of Regulation (EEC) No 1442/88 should be determined; Whereas in the interests of ensuring that the system runs efficiently and can be supervised, the nature of the information to be entered on the application for a premium must be laid down, and provision must be made for the checking of that information ; Whereas the applicant may be paid the premium in full as an advance, provided that the first furnishes a security amounting to 110 % of the premium; : Whereas before- the premium is paid or, should an advance have been made, the security released, the production capacity of the areas to be grubbed up sheuld be assessed, and whereas it should be verified that grubbing up of the said areas has actually taken place; whereas these finding must be certified in order to enable the applicant to prove that grubbing up has been carried out; whereas, however, an assessment -of production capacity shall not be necessary in every case if growing is to cease on all wine-growing areas of a holding; Whereas Article 8 of Regulation (EEC) No 1442/88 provides that growers entitled to the premium as a result of taking a wine-growing area out of production shall qualify for an exemption from the obligation referred to in Article 39 of Council Regulation (EEC) No 822/87 (%), () OJ No L 132, 28. 5. 1988, p. 3. () OJ No L 84, 27. 3, 1987, p. 1. as last amended by Regulation (EEC) No 2253/88 (), varying in degree according to the reduction in production potential obtained; whereas the partial exemption is intended to encourage growers to grub up on a large scale, without being too small an incentive to be attractive to producers who wish to cease growing over a limited area; whereas an exemption factor of between 0,61 and 1 should therefore be applied to the figure denoting the decrease in production potential in the case of abandonment which accounts for between 20 and 50 % of the holding’s potential ; Whereas the five-year‘period used for, establishing -the average production of a holding is too long to apply to Spain ; Whereas the method of calculation should be adjusted in the case of wine cooperatives or associations of wine-growers who make a production declaration applying to their members as a body; Whereas Member States should forward to the Commission yearly details of the results of grubbing up, including, in particular, information relating to the exemption from the obligation referred to in Article 39 of Regulation (EEC) No 822/87, before thése measures begin to operate for the wine year in question ; Whereas the measures provided for in this Regulation are in accordance with the opinion of the Management Committee for Wine, : HAS ADOPTED THIS REGULATION : Article 1 This Regulation lays down detailed rules for applying the system of permanent abandonment premiums introduced by Regulation (EEC) No 1442/88. Article 2 "The varieties referred to in the first indent of Article 2 (1) () of Regulation (EEC) No 1442/88 are listed in Annex L Article 3 The levels of premium applicable to Spain for the: 1988/89 to 1991/92 wine years are listed in Annex IL () OJ No L 198, 26. 7. 1988, p. 35.