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TITLE IVPRODUCTION POTENTIAL

CHAPTER IUnlawful plantings

Article 55Penalties in case of non-compliance with the grubbing-up obligation

1.The penalties referred to in Article 85(3) and Article 86(4) second subparagraph of Regulation (EC) No 479/2008 shall be determined so as to provide an appropriate sanction for those who violated the provisions concerned.

Without prejudice, where applicable, to earlier penalties imposed by Member States, Member States shall determine the penalties referred to in Article 85(3) and Article 86(4) second subparagraph of Regulation (EC) No 479/2008 on the basis of the following principles:

(a)basic financial penalty to be imposed shall be at least EUR 12 000/ha;

(b)Member States may increase the penalty based on the commercial value of the wines produced in the vineyards concerned.

2.Member States shall impose the penalty referred to in Article 85(3) of Regulation (EC) No 479/2008:

(a)for unlawful plantings existing at the time of the entry into force of this Regulation for the first time on 1 January 2009;

(b)for unlawful plantings from after the entry into force of this Regulation for the first time with effect of the date of those plantings.

The penalty shall be levied again every 12 months, counted from those dates and in accordance with the criteria established in paragraph 1 of this Article, until compliance with the grubbing-up obligation.

3.Member States shall impose the penalty referred to in Article 86(4) second subparagraph of Regulation (EC) No 479/2008 for the first time on 1 July 2010 for non-compliance with the grubbing-up obligation and thereafter every 12 months until compliance in accordance with the criteria established in paragraph 1 of this Article

4.Penalties collected within the meaning of this Article shall be retained by the Member State concerned.

Article 56Penalties in case of non-compliance with prohibition of circulation

1.The penalties referred to in Article 87(2) of Regulation (EC) No 479/2008 shall be determined so as to mean an appropriate sanction for those who violated the provisions concerned.

2.The penalties referred to in paragraph 1 shall be imposed if a producer concerned, having more than 0.1 hectares of vineyard area, and according to the appropriate case:

(a)does not submit the distillation contract by the deadline specified in the second subparagraph of Article 57(1) or these contracts do not cover the entire production concerned, as declared in the harvest or production declaration; or

(b)does not inform the competent authority about the intended green harvesting by the deadline specified in the third subparagraph of Article 57(1) or does not carry out the green harvesting in a satisfactory manner.

3.Member States shall impose the penalties referred to in paragraph 1:

(a)in case of non-submission of the distillation contract, one month after the expiry of the deadline laid down in the second subparagraph of Article 57(1);

(b)in case of failure to comply with the rules about green harvesting, on 1 September of the calendar year concerned.

4.Penalties collected within the meaning of this Article shall be retained by the Member State concerned.

Article 57Non-circulation or distillation

1.In case of Article 87(1) of Regulation (EC) No 479/2008, the grapes or products made from grapes may only have one the following destinations:

(a)distillation at the exclusive expense of the producer;

(b)green harvesting in accordance with the definition of Article 12(1) of Regulation (EC) No 479/2008, at the expense of the producer concerned;

(c)family consumption; this possibility is only acceptable if the producer’s vineyard area does not exceed 0,1 ha.

In case of the distillation foreseen in point (a) of the first subparagraph:

In case of the green harvesting as foreseen in point (b) of the first subparagraph, producers shall inform the competent authority in advance about their intention before a date fixed by the Member States in accordance with Article 12(1)(b). Member States shall control green harvesting according to Article 12(1)(d) of this Regulation.

2.Without prejudice to paragraph 1, in order to facilitate control, Member States may foresee an obligation to the producers to notify the competent authority of the Member State before the date fixed by the Member States in accordance with Article 12(1)(b) which of the possibilities mentioned in points (a) to (c) of the first subparagraph of paragraph 1 of this Article they are going to choose.

Member States may also limit the choice of producers to only one or two of the possibilities mentioned in points (a) to (c) of the first subparagraph of paragraph 1.

3.In case the given producer has vineyards the products from which may be marketed, the competent authorities shall be responsible for ensuring that the products from the unlawful planting are not added to the products of these other vineyards that are marketed.

Article 58Communications

1.Member States shall communicate to the Commission by 1 March each year the areas for which penalty was paid and the amount of penalty that was actually imposed in the form set out in table 1 of Annex XIII. They shall also communicate the Commission their legislation related to these penalties.

2.Save as otherwise indicated in the appropriate tables of Annex XIII to this Regulation, the communications referred to in Article 85(4), Article 86(5) and Article 87(3) of Regulation (EC) No 479/2008 shall refer to the previous wine year.

When the communications according to Article 85(4) and Article 86(5) of Regulation (EC) No 479/2008 are made for the first time, by 1 March 2009 at the latest, the information contained in the appropriate tables shall refer to the following:

(a)any unlawful planting planted after 31 August 1998 detected since that date until the end of the 2007/2008 wine year and still not grubbed up by 31 July 2008, if such data are available;

(b)any unlawful planting planted before 1 September 1998 the application for regularisation according to Article 3(2) of Regulation (EC) No 1493/1999 of which was accepted or refused by the Member State between 1 August 2007 and 31 July 2008.

For the purpose of the communication referred to in point (a) of the second subparagraph, Table 2 of Annex XIII to this Regulation shall be used.

For the purpose of the communication referred to in point (b) of the second subparagraph, Table 4 of Annex XIII to this Regulation shall be used.

The Commission retains the right to request information about the unlawful plantings concerned on the basis of formerly valid but not respected communication obligations based on Article 2(7) of Regulation (EC) No 1227/2000.

The later, yearly communications shall be made in the form set out in Tables 3, 5, 6 and 7 of Annex XIII to this Regulation.

3.Member States may decide whether or not to include details related to regions in the communications mentioned in paragraphs 1 and 2.

Article 59Reductions imposed on Member States

In case Member States fail to communicate any of the tables by the relevant deadlines, except for Table 2, referred to in Article 58, in the form laid down in Annex XIII to this Regulation, containing the information specified in Articles 85(4), 86(5) and 87(3) of Regulation (EC) No 479/2008 and filled in appropriately, their allocation for the support measures referred to in Article 7 of Regulation (EC) No 479/2008 may be reduced as foreseen in Article 89(a) of Regulation (EC) No 479/2008. The Commission may decide that, according to the scope of the failure, for every month of delay, an amount of up to a total of 1 % of the allocation for the support measures of the given Member State shall be forfeited starting from the beginning of the wine year following the one in which the communication was due.