No L 202/14 Official Journal of the European Communities 14.7. 89 COUNCIL REGULATION (EEC) No 2046/89 of 19 June 1989 laying down general rules for distillation operations involving wine and the by-products of ’ wine-making THE COUNCIL OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, Having regard to Council Regulation (EEC) No 822/87 of 16 March 1987 on the common organization of the market in wine (!); as last amended by Regulation (EEC) No 1236/89 (2), and in particular Articles 35 {7), 36 (5), 38 (4), 39.(8), 41 (8), 42 (4) and 79 (2) thereof, Having regard to the proposal from the Commission, Whereas the general rules for distillation operations involving wine and the by-products of wine-making, laid down by Council Regulation (EEC) No 2179/83 of 25 July 1983 laying down general rules for distillation operations involving wine and the by-products of wine-making (3), as last amended by Regulation (EEC) No 2505/88 (*), have been substantially amended; whereas it is appropriate, for reasons of clarity, to consolidate the provisions concerned; Whereas trade in new wines still in fermention is of negligible importance; whereas it is desirable to ensure that such trade . is not used by certain operators-solely to secure access to voluntary distillation operations and that wine marketed at this stage of production cannot in this way elude compulsory distillation; whereas, in the same concern to prevent abuse of intervention measures it is desirable to lay down special exemptions to deal with the possibility of speculative movements in the trade in wine products; Whereas, where wine-growers’ cooperatives have formed themselves into associations, the administrative and material operations for the delivery of wine for distillation may be facilitated if the associations in question are allowed to carry out such operations; whereas it therefore seems advisable to allow; for a limited period at the end of which the results will be assessed, Member States, under certain conditions, to authorize the associations to- substitute themselves for the.. wine-growers’ cooperatives party thereto for the purposes of the conclusion of contracts and the delivery of wine; whereas it must be stipulated that the same guarantees offered by the normal procedure with regard to compliance with obligations and the limitation of advantages for the producers must be ensured; (1) OJ No L 84, 27. 3. 1987, p. 1. (%) OJ NoL 128, 11. 5. 1989, p. 31. (*) OJ NoL 212, 3.8.1983, p. 1. (*) OJ No L 225, 26. 7. 1988, p. 14. Whereas it is necessary to determine the products which may be obtained by distillation, and in particular to define: - minimum- qualitative characteristics - for neutral alcohol; whereas, in fixing these-characteristics, account must be taken of present technological developments and of the need to ensure the production of alcohol which can be sold normally on the markets for the various uses; Whereas the checks on products intended for distillation should be reinforced; Whereas, as regards voluntary distillation it should be laid down that producers must conclude delivery contracts with distillers which are subject to approval by the intervention agency, in order to allow supervision of the operations and a check on the compliance of both parties with their obligations; whereas this system also makes it-possible to follow more clearly the quantitative effects of distillation operations on the market; whereas, however, adjustment of the contracts system is needed to take account of- the existence both of producers who wish to entrust distillation to a jobbing distiller and of producers who have distillation plant themselves; Whereas it is particularly important to lay down specific rules to ensure that wine delivered for one-of the optional distillation operations comes from the producers’. own production; whereas, to that end, provision should be made that such producer must furnish proof that he has actually produced and that he holds the wine to be delivered; whereas rules should also be drawn up ensuring a sufficient check-on- the essential elements of the distillation contracts; Whereas Article 47 of Regulation (EEC) No 822/87 makes recourse to the distillation operations provided for in Articles 38, 41 and 42 of that Regulation conditional on the producer’s compliance with certain obligations; whereas, therefore, provision should be made that the intervention agency must receive proof that the producer has met these obligations; whereas the necessary provisions should be adopted to ensure that no financial contribution is payable by the Community in cases where producers have not met the abovementioned obligations; Whereas, on the basis of experience gained, it is desirable to allow a certain tolerance in the quantity and actual alcoholic strength by volume of the wine in the delivery contract; Whereas the prices set for wines for distillation in Articles 38, 41 and 42 of Regulation (EEC) No 822/87 are usually such that the products obtained by distillation cannot be disposed