TITLE IIPRODUCTION POTENTIAL
CHAPTER IPLANTING OF VINES
Article 2
1
Planting with vines of wine grape varieties classified pursuant to Article 19(1) shall be prohibited until 31 July 2010 unless carried out pursuant to:
a
a new planting right, as referred to in Article 3;
b
a replanting right, as referred to in Article 4; or
c
a planting right granted from a reserve, as referred to in Article 5 or in Article 6(1) in the case of the application of Article 5(8).
Until the same date, grafting of wine grape varieties on to varieties other than wine grape varieties shall also be prohibited.
2
Grapes obtained from areas:
a
where vines have been planted before 1 September 1998, and
b
whose production, according to Articles 6(3) or 7(4) of Regulation (EEC) No 822/87, could only be disposed of by distillation,
may not be used for producing wine which is to be marketed. Products made from such grapes may be put into circulation only for the purposes of distillation. However, these products may not be used in the preparation of alcohol having an actual alcoholic strength by volume of 80 % vol or less.
3
Where a Member State has compiled the inventory of wine production potential in accordance with Article 16, it may derogate from paragraph 2 of this Article. Such a derogation shall be granted by 31 July 2002 and shall involve permission being granted for the areas concerned to produce wine which is to be marketed.
The derogation shall be granted:
a
where the producer concerned had previously grubbed up other vines on an equivalent area in terms of pure crop except in cases where the grower concerned has received a premium for grubbing-up under Community or national legislation in respect of the area concerned; and/or
b
by permitting the use of replanting rights where a producer has obtained them within a period to be fixed subsequent to the planting of the area concerned; Member States may also use the newly created planting rights for this purpose under Article 6(1); and/or
c
where the Member State can prove (to the satisfaction of the Commission) that it has unclaimed replanting rights which would still be valid if they had been applied for; such rights may be used and reallocated to producers for an area equivalent in pure crop; and/or
d
where the producer concerned had undertaken to grub up an area equivalent in terms of pure crop, within a period of three years, where that area has been entered in the Vineyard Register of the Member State concerned.
4
Where paragraph 3(a) or (c) is applied, Member States shall impose an appropriate administrative penalty on the producers concerned.
5
Paragraph 3(c) may only be used in respect of an area no greater than the limit of 1,2 % of the area under vines.
6
Where paragraph 3(b) is applied:
a
where the grower obtains the rights from a reserve, these may only be obtained under Article 5(3)(b) and he shall pay 150 % of the price normally charged by Member States under that provision, or
b
where the grower purchases a replanting right, this shall cover the area concerned, plus 50 %, which latter amount shall be transferred to the reserve or the reserves in accordance with Article 5 or added to the volume of newly created planting rights in Article 6(1) where Article 5(8) is applied.
7
Areas planted with vines of wine grape varieties classified pursuant to Article 19(1):
a
planted from 1 September 1998 whose production according to Articles 6(3) or 7(4) of Regulation (EEC) No 822/87 could only be disposed of by distillation, or
b
planted in breach of the prohibition on plantings in paragraph 1,
shall be grubbed up. The expenses of such grubbing up shall be borne by the producer concerned. Member States shall take the measures necessary to ensure that this paragraph is applied.
Article 3
1
Member States may grant new planting rights to producers in respect of areas:
a
intended for new planting carried out under measures for land consolidation or measures concerning compulsory purchases in the public interest adopted under national legislation,
b
intended for wine-growing experiments, or
c
intended for graft nurseries.
Member States may also grant new planting rights in respect of areas whose wine or vine products are intended solely for the consumption of the vine grower's family.
2
Member States may also grant new planting rights no later than 31 July 2003 for areas for the production of a quality wine prs or a table wine described by means of a geographical indication where it has been recognised that, owing to its quality, the production of the wine in question is far below demand.
3
New planting rights shall be used by the producer to whom they were granted, in respect of the areas and for the purposes for which they were granted.
4
New planting rights shall be used before the end of the second wine year after the one in which they were granted. New planting rights other than those referred to in paragraph 1 not so used during this period shall be allocated to a reserve in accordance with Article 5(2)(a).
5
New planting rights other than those referred to in paragraph 1 may only be granted to producers within the quantities set out in Article 6(1). To this end:
a
prior to the allocation of the newly created planting rights referred to in Article 6 to a reserve or reserves, Member States shall ensure that the grant of new planting rights does not reduce the volume of the newly created planting rights in Article 6(1) to a value less than zero; and
b
once a Member State has allocated the newly created planting rights referred to in Article 6 to a reserve or reserves, the subsequent granting of a new planting right shall mean that a planting right corresponding to an equal area in terms of pure crop allocated to the reserve or reserves related to the region in question shall be extinguished. Should sufficient planting rights not be available in the reserve or reserves concerned, the grant of new planting rights may not take place.
Article 4
1
Replanting rights shall be:
a
replanting rights granted under paragraph 2; or
b
similar rights acquired under prior Community or national legislation.
2
Member States shall grant replanting rights to producers who have grubbed up an area of vines. Member States may grant replanting rights to producers who untertake to grub up an area of vines, before the end of the third year after which the area was planted. The replanting rights shall be for an area equivalent in terms of pure crop to that from which vines have been or are to be grubbed up.
3
Replanting rights shall be exercised on the holding in respect of which they were granted. Member States may further stipulate that such replanting rights may be exercised only on the area where the grubbing-up was carried out.
4
By way of derogation from paragraph 3, replanting rights may be transferred, in whole or in part, to another holding in the same Member State where:
a
part of the holding concerned is transferred to that other holding. In this case, the right may be used on an area on the latter holding no greater than the area transferred; or
b
areas on that other holding are intended for:
- (i)
the production of quality wines psr or table wines which are described by means of a geographical indication, or
- (ii)
for the cultivation of graft nurseries.
The rights may only be used in respect of the areas and for the purposes for which they were granted.
Member States shall ensure that the application of these derogations shall not lead to an overall increase in production potential on their territory, in particular when transfers are made from non-irrigated to irrigated areas.
5
Replanting rights acquired under this Regulation shall be used before the end of the fifth wine year after the end of the one during which the grubbing-up took place. By way of derogation, this period may be extended by Member States to up to eight wine years. Replanting rights not used during this period shall be allocated to a reserve pursuant to Article 5(2)(a).
Article 5
1
In order to improve the management of production potential, at a national and/or regional level, Member States shall create a national reserve, and/or as the case may be, regional reserves, of planting rights.
2
The following shall be allocated to the reserve or reserves:
a
new planting rights, replanting rights and planting rights granted from the reserve which are not used within the time limits laid down respectively in Article 3(4), Article 4(5) and paragraph 6 of this Article;
b
replanting rights allocated to the reserve by producers who hold such rights, where necessary in return for a payment from national funds, the amount of which, and any other detail of which, shall be determined by the Member States taking into account the legitimate interests of the parties;
c
newly created planting rights, as referred to in Article 6F2;
F1d
for Cyprus, planting rights of 2 000 ha for the production of quality wines out of the Cyprus national reserve existing before accession. Cyprus shall provide the Commission with a list of the regions which will be allocated the planting rights coming from this national reserve.
3
Member States may grant the rights allocated to the reserve:
a
without payment, to producers who are under 40 years of age, who possess adequate occupational skill and competence, who are setting up for the first time on a wine-producing holding and who are established as the head of the holding; or
b
against payment into national and, if appropriate, regional funds, to producers who intend to use the rights to plant vineyards whose production has an assured outlet. The Member States shall define the criteria for setting the amounts of the payment which may vary depending on the final intended product of the vineyards concerned.
4
Member States shall ensure that the location where planting rights granted from a reserve are used, the varieties used and the cultivation techniques used guarantee that the subsequent production is adapted to market demand and that the yields concerned are typical of the average in the region where such rights are used, in particular, where planting rights originating in non-irrigated areas are used in irrigated areas.
5
Planting rights allocated to a reserve may be granted from it no later than the end of the fifth wine year following the one during which they were allocated to it. Planting rights not granted by that time shall be extinguished.
6
Planting rights granted from a reserve shall be used before the end of the second wine year after the one in which they were granted. Planting rights granted from a reserve not so used during this period shall be allocated to a reserve under paragraph 2(a).
7
When a Member State creates regional reserves, it may lay down rules permitting the transfer of planting rights between regional reserves. If regional and national reserves coexist in the same Member State, transfers between such transfers may also be permitted.
The transfers referred to in this paragraph may be subject to a reduction coefficient.
8
By way of derogation fram paragraphs 1 to 7, a competent authority of a Member State may choose not to implement the reserve system provided that the Member State can prove that an effective system for managing planting rights exists throughout its territory. That system may, where necessary, derogate from the relevant provisions of this Chapter. Where a Member State has such a system, replanting rights as referred to in the first sentence of Article 4(5) shall be extended by five wine years. The second sentence of Article 4(5) shall remain applicable.
Article 6
1
The newly created planting rights, including the new planting rights granted by the Member States under Article 3(2), shall be allocated as follows:
a
- Germany
1 534 ha
- Greece
1 098 ha
- Spain
17 355 ha
- France
13 565 ha
- Italy
12 933 ha
- Luxembourg
18 ha
- Austria
737 ha
- Portugal
3 760 ha
b
- Community reserve
17 000 ha.
2
The newly created planting rights may only be allocated to a reserve or used under Article 2(3)(b) where the Member State has compiled the inventory of production potential in accordance with Article 16.
3
The allocation of the newly created planting rights referred to in paragraph 1 to a reserve or their use under Article 2(3)(b) may only take place once.
F14
For the Czech Republic, newly created planting rights shall be allocated for the production of quality wines psr amounting to 2 % of the total vineyard area in use in the Czech Republic on 1 May 2004. These rights shall be allocated to a national reserve to which Article 5 shall apply.
For Malta, newly created planting rights shall be allocated for the production of quality wines psr up to a total planted wine area in Malta of 1 000 ha. These newly created planting rights shall be used at the latest by the 2005/2006 wine year. If these rights are not used by the 2005/2006 wine year, they shall be allocated to the reserve to which Article 5 shall apply.
Article 7
1
The following definitions shall apply to this Chapter:
a
grubbing-up means the complete elimination of all vine stocks on a plot planted with vines;
b
planting means the definitive establishment of vine plants or parts of vine plants, whether or not grafted, with a view to producing grapes or to establishing a graft nursery;
c
planting rights means the right to plant vines under a new planting right, a replanting right, a planting right granted from a reserve or a newly created planting right in accordance with the conditions laid down respectively in Articles 3, 4, 5 and 6;
d
replanting right means the right to plant vines for an area equivalent in terms of pure crop to that from which vines have been grubbed up or are to be grubbet up in accordance with the conditions laid down in Article 4 and Article 5(8);
e
grafting-on (surgreffage) means the grafting of a vine which has already been the subject of a previous grafting.
2
Detailed rules for the application of this Chapter shall be adopted in accordance with the procedure laid down in Article 75.
These rules may in particular include:
the provisions governing the distillation of the products referred to in Article 2(7),
provisions to avoid excessive administrative charges when applying the provisions of this Chapter,
recognition referred to in Article 3(2)
the coexistence of vines pursuant to Article 4(2),
the application of the reduction coefficient referred to in Article 5(7),
the operation of the Community reserve referred to in Article 6(1). In particular the rules may provide in the period up to 31 December 2003 for the allocation of newly created planting rights from the Community reserve to Member States for use in regions where it can be shown that there is additional need which could be met by the allocation of those newly created planting rights,
provisions to ensure that the new planting rights granted in accordance with Article 3(1) do not undermine the ban on new plantings in Article 2(1).
3
By 31 December 2003, and at three-yearly intervals from the date, the Commission shall submit a report to the European Parliament and the Council on the operation of this Chapter. The report may be accompanied, if appropriate, by proposals for the grant of further newly created planting rights.