21. 3. 97 Official Journal of the European Communities No L 80/9 COMMISSION REGULATION (EC) No 510/97 of 20 March 1997 amending Regulation (EC) No 2177/96 introducing preventive distillation as provided for in Article 38 of Council Regulation (EEC) No 822/87 for the 1996/97 wine year THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European 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 (EC) No 1592/96 (3), and in particular Article 38 (5) thereof, Whereas Commission Regulation (EEC) No 2721/88 (%), as last amended by Regulation (EEC) No 2181/91 (%), lays down detailed rules for voluntary distillation as provided for in Articles 38, 41 and 42 of Regulation (EEC) No 822/87; whereas Commission Regulation (EC) No 1650/96 (°) fixes the prices, the aid and certain other factors applicable to preventive distillation for the 1996/97 marketing year; Whereas since preventive distillation was introduced, the market situations for red and white table wines have diverged, being far more favourable for red wines than for white wines; whereas, under the circumstances, large quantities of red wines should not be distilled; whereas producers of red wine who have signed delivery contracts for this distillation should therefore be allowed to transfer their contractual rights and obligations to producers of white wine; whereas the ceilings laid down in Article 1 of Commission Regulation (EC) No 2177/96 (%) should not be applied to the quantities which the producers of white wine can have distilled; whereas new Articles must there- fore be added to the above Regulation; Whereas Regulation (EC) No 2177/96 introduces preven- tive distillation for the 1996/97 wine year; whereas the distillation contracts had to be signed by 25 January 1997 at the latest; Whereas the preventive distillation as introduced, while having significant results, has nevertheless missed some wines that are unsuitable for the market and which ad- versely affect it; whereas, under the circumstances, these wines should be withdrawn from the market by reintrodu- cing preventive distillation for a limited volume restricted J No L 84, 27. 3. 1987, p. 1. ] No L 206, 16. 8. 1996, p. 31. T No L 241, 1. 9. 1988, p. 88. J No L 202, 25. 7. 1991, p. 16. ] No L 207, 17. 8. 1996, p. 10. J No L 291, 14. 11. 1996, p. 17. to table wine with a view to improving in this manner the quality of the wines that should remain on the market; Whereas, where the overall quantity applied for by region exceeds the quantities provided for, the Member States must apply a single rate of reduction for all new contracts submitted; Whereas, with a view to the sound management of the quantities in question, provision must be made to derogate from specific provisions of Regulation (EEC) No 2721/88 and the quantities applied for in the contracts or declarations as submitted must be reduced; Whereas to improve the effectiveness of the measure, distillation should take place over a short time scale, and the Member States should be permitted to impose more restrictive measures, in particular the introduction of a security to accompany the submission of the contract or declaration; 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 The following Articles 1a and 1b are hereby inserted in Regulation (EC) No 2177/96: Article 1a 1. Producers of white table wine may take over from the producers of red table wine holding contracts as referred to in Article 1, submitted for approval on the date indicated in Article 2 (1), the rights and obliga- tions associated with those contracts for all or part of the quantities concerned. 2. This transfer, which must be for the delivery of white table wine, shall be submitted to the interven- tion agency for approval not later than 18 April 1997. 3. Article 2 (1) of Regulation (EEC) No 2721/88 notwithstanding, where producers of white table wine have taken over the rights and obligations under the contracts referred to in paragraph 1, the upper limits laid down in Article 1 (1) shall not apply to the quantities covered by those contracts.