CHAPTER IIPROVISIONS ON SPECIFIC SUPPORT MEASURES

SECTION 1 Promotion

Sub-section 1 Common Provisions

Article 3Beneficiaries

The beneficiaries of the support referred to in Article 45 of Regulation (EU) No 1308/2013 shall be professional organisations, wine producer organisations, associations of wine producer organisations, temporary or permanent associations of two or more producers, inter-branch organisations or, where a Member State decides so, bodies governed by public law within the meaning of Article 1(9) of Directive 2004/18/EC of the European Parliament and of the Council7.

Private companies may be beneficiaries of the measure referred to in point (b) of Article 45(1) of Regulation (EU) No 1308/2013.

Member States shall not make a body governed by public law the sole beneficiary of the support.

Article 4Duration of the support

The support for each information and promotion operation shall last no longer than three years for a given beneficiary in a given Member State for the measure referred to in point (a) of Article 45(1) of Regulation (EU) No 1308/2013 and for a given beneficiary in a given third country or third-country market for the measure referred to in point (b) of Article 45(1) of Regulation (EU) No 1308/2013.

However, if justified in view of the effects of the operation, the support for an operation may be extended once for a maximum of two years or twice for a maximum of one year for each extension.

Article 5Eligible costs and reimbursement rules for information and promotion operations

Subject to Article 45 of Regulation (EU) No 1308/2013 and Articles 6 and 9 of this Regulation, Member States shall lay down rules setting out the eligible actions and their respective eligible costs. Those rules shall be designed to ensure that the objectives of the schemes as laid down in Article 45 of Regulation (EU) No 1308/2013 are met.

Those rules shall provide in particular for the payment either on the basis of standard scales of unit costs calculated in accordance with Article 24 of Implementing Regulation (EU) 2016/1150 or on the basis of supporting documents to be submitted by the beneficiaries.

Sub-section 2 Information in the Member States

Article 6Eligible operations

1.

The operations and their underlying actions for which the support referred to in point (a) of Article 45(1) of Regulation (EU) No 1308/2013 is applied shall consist of information for consumers in Member States as regards responsible consumption of wine and the risk associated with harmful alcohol consumption and the Union scheme of protected designations of origin and protected geographical indications in relation to the specific quality, reputation or other characteristics of wine due to its particular geographical environment or origin.

2.

The information activities referred to in paragraph 1 may be carried out through information campaigns and through participation in events, fairs and exhibitions of national or Union importance.

3.

The information disseminated shall be based on the intrinsic qualities of wine or its characteristics and shall not be brand-oriented or encourage the consumption of wine on the grounds of its specific origin. However, the origin of a wine may be indicated as part of the information activity.

4.

All information concerning the effects of wine consumption on health and behaviour shall be based on generally accepted scientific data and shall be compatible with the approach of the national authority responsible for public health in the Member State where the operations are carried out.

Article 7Eligibility criteria

Member States shall examine an application against the following criteria:

  1. (a)

    the operations and their underlying actions are clearly defined, describing the information activities and including the estimated cost;

  2. (b)

    assurances that the proposed costs of the operation are not in excess of the normal market rates;

  3. (c)

    assurances that beneficiaries have access to sufficient technical and financial resources to ensure that the operation is implemented effectively;

  4. (d)

    the consistency with the strategies proposed and the objectives set and the likely impact and success in raising consumer's awareness about responsible consumption of wine and the risk associated with harmful alcohol consumption or about the Union system of protected designation of origin and protected geographical indications.

Article 8Priority criteria

1.

Having examined the applications, Member States shall give preference to operations:

(a)

concerning both the responsible consumption of wine and the Union systems covering protected designations of origin and protected geographical indications;

(b)

concerning several Member States;

(c)

concerning several administrative or wine regions;

(d)

concerning several protected designations of origin or protected geographical indications of the Union.

2.

Member States may establish other priority criteria by indicating them in the support programme. Such other priority criteria shall be based on the specific strategy and objectives set out in the support programme and shall be objective and not discriminatory.

Sub-section 3 Promotion in third countries

Article 9Eligible operations

The operations and their underlying actions for which the support referred to in point (b) of Article 45(1) of Regulation (EU) No 1308/2013 is applied shall consist in promotion of Union wines on third-country markets provided that:

  1. (a)

    the products are intended for direct consumption and export opportunities or potential new market outlets in the targeted third countries exist for them;

  2. (b)

    the origin of the product is indicated as part of an information or promotion operation in the case of wine with a protected designation of origin or a protected geographical indication;

  3. (c)

    the operation supported is clearly defined, including the specification of which products may be taken into account, the marketing actions and the estimated cost;

  4. (d)

    the information or promotion messages are based on the intrinsic qualities of the wine, and comply with the legislation applicable in the third countries at which they are targeted.

Article 10Eligibility criteria

Member States shall examine an application against the following criteria:

  1. (a)

    the operations and their underlying actions are clearly defined, describing the promotion activities and including the estimated cost;

  2. (b)

    assurances that the proposed costs of the operation are not in excess of the normal market rates;

  3. (c)

    assurances that beneficiaries have access to enough technical capacity to face the specific constraints of trade with third countries and have sufficient resources to ensure that the operation is implemented as effectively as possible;

  4. (d)

    evidence submitted by beneficiaries that enough products in terms of quality and quantity will be available to ensure answering the market demand in the long run after the promotion operation;

  5. (e)

    the consistency between the strategies proposed and the objectives set and the likely impact and success in increasing demand for the products concerned.

Article 11Priority criteria

1.

Having examined the applications, Member States shall give preference to:

(a)

new beneficiaries who did not receive the support referred to in point (b) of Article 45(1) of Regulation (EU) No 1308/2013 in the past;

(b)

beneficiaries targeting a new third country or a new third-country market for which they did not receive the support referred to in point (b) of Article 45(1) of Regulation (EU) No 1308/2013 in the past.

2.

Member States may establish other priority criteria by indicating them in the support programme. Such other priority criteria shall be based on the specific strategy and objectives set out in the support programme and shall be objective and not discriminatory.

SECTION 2 Restructuring and conversion of vineyards

Article 12Beneficiaries

The beneficiaries of the support referred to in Article 46 of Regulation (EU) No 1308/2013 shall be wine growers as defined in point (a) of Article 2 of Commission Regulation (EC) No 436/20098.

Article 13Eligibility criteria

Member States shall examine an application against the following criteria:

  1. (a)

    the detailed description of the proposed actions and the proposed deadlines for their implementation;

  2. (b)

    the actions to be implemented in each financial year, and the area concerned by each operation.

Article 14Ineligible costs

The costs of the following actions shall not be eligible:

  1. (a)

    day-to-day management of a vineyard;

  2. (b)

    protection against damage by game, birds or hail;

  3. (c)

    construction of windbreaks and wind protection walls;

  4. (d)

    driveways and elevators;

  5. (e)

    purchase of farm vehicles.

Article 15Replanting for health or phytosanitary reasons

1.

Replanting of a vineyard following a mandatory grubbing-up for health or phytosanitary reasons on the instruction of a competent authority of a Member State referred to in point (c) of the first subparagraph of Article 46(3) of Regulation (EU) No 1308/2013 shall be eligible for support provided that the Member State:

(a)

communicates to the Commission, in the framework of the submission of the national support programme or any modification of that support programme, the list of harmful organisms covered by that activity as well as a summary of a related strategic plan established by the competent authority of the Member State concerned;

(b)

complies with Council Directive 2000/29/EC9.

2.

During a given financial year, the expenditure for replanting for health or phytosanitary reasons shall not exceed 15 % of the total annual expenditure on restructuring and conversion of vineyards in the Member State concerned during that same financial year.

3.

The costs of grubbing-up of infected vineyards and compensation for loss of revenue shall not constitute eligible expenditure.

Article 16Priority criteria

Member States may establish priority criteria by indicating them in the support programme. Such priority criteria shall be based on the specific strategy and objectives set out in the support programme and shall be objective and not discriminatory.

SECTION 3 Green harvesting

Article 17Beneficiaries

The beneficiaries of the support referred to in Article 47 of Regulation (EU) No 1308/2013 shall be wine growers as defined in point (a) of Article 2 of Regulation (EC) No 436/2009.

Article 18Conditions for the proper functioning

For the purposes of Article 47 of Regulation (EU) No 1308/2013, Member States shall adopt rules to ensure that the areas concerned will be kept in good vegetative conditions and that no negative impact on the environment nor any negative phytosanitary consequences result from the application of the measure referred to in that Article and to ensure that it is possible to check that the operations and actions are carried out correctly.

In relation to those objectives, Member States may apply restrictions to the measure based on objective and non-discriminatory criteria, including timing of different varieties, environmental or phytosanitary risks or the method to be used to carry out the measure.

Member States may adopt other conditions for the proper functioning of the measure referred to in Article 47 of Regulation (EU) No 1308/2013.

Article 19Eligibility criteria

Member States shall examine an application on the basis of the details given on the area concerned, the average yield, the green harvesting method to be used as well as the grape variety and the type of wine produced from it.

Article 20Ineligible actions

1.

In case of complete or partial damage of the crops due, in particular, to a natural disaster within the meaning of Article 2(9) of Commission Regulation (EU) No 702/201410 or an adverse climatic event which can be assimilated to a natural disaster within the meaning of Article 2(16) of that Regulation before the date of green harvesting, no support shall be granted for green harvesting.

2.

In case of complete or partial damage occurring between the payment of the green harvesting support and the harvesting period, no harvest insurance financial compensation of the loss of income may be granted for the area already supported.

Article 21Green harvesting in parcels for producing wines with geographical indications

The area of any parcel supported for green harvesting shall not be taken into consideration when calculating the yield limits set in the technical specifications of wines with a protected designation of origin or a protected geographical indication.

Article 22Duration of the support

In order to be eligible for support, green harvesting shall not be applied on the same parcel for two consecutive years.

Article 23Priority criteria

Member States may establish priority criteria by indicating them in the support programme. Such priority criteria shall be based on the specific strategy and objectives set out in the support programme and shall be objective and not discriminatory.

SECTION 4 Mutual funds

Article 24Beneficiaries

The beneficiaries of the support referred to in Article 48 of Regulation (EU) No 1308/2013 shall be wine growers as defined in point (a) of Article 2 of Regulation (EC) No 436/2009 or producers of the products referred to in Part II of Annex VII to Regulation (EU) No 1308/2013.

Article 25Conditions for support

1.

Where the support referred to in Article 48 of Regulation (EU) No 1308/2013, is used to finance the administrative cost of setting up mutual funds, it shall be limited to the following proportion of the contribution of the producers to the mutual fund in the first, second and third year of its implementation: 10 %, 8 % and 4 %.

2.

Member States may fix ceilings for the amounts of support that may be received to finance the administrative costs of setting up mutual funds.

Article 26Duration of the support

The support period shall not exceed three years.

SECTION 5 Harvest insurance

Article 27Beneficiaries

1.

The beneficiaries of the support referred to in Article 49 of Regulation (EU) No 1308/2013 shall be wine growers as defined in point (a) of Article 2 of Regulation (EC) No 436/2009.

2.

Wine growers applying for the support shall make their insurance policy available to the national authorities in order to allow the Member States to comply with the condition laid down in Article 49(2) of Regulation (EU) No 1308/2013.

Article 28Payments to beneficiaries

1.

Member States may decide to pay the support referred to in Article 49(1) of Regulation (EU) No 1308/2013 through insurance companies as intermediaries provided that:

(a)

the conditions laid down in Article 49(4) of Regulation (EU) No 1308/2013 are respected;

(b)

the amount of the support is transferred in full to the producer;

(c)

the insurance company pays the support to the producer either in advance, through a reduction of the insurance premium, or through a bank or a postal transfer within 15 days after receiving the payment from the Member State.

2.

The use of intermediaries shall be such as not to distort competitive conditions on the insurance market.

Article 29Conditions for the proper functioning

1.

For the purposes of Article 49 of Regulation (EU) No 1308/2013, Member States shall adopt conditions for the proper functioning of the measure referred to in that Article, including those necessary to ensure that the support does not distort competition in the insurance market.

2.

Member States shall fix ceilings for the amounts of support that may be received in order to respect the conditions laid down in Article 49(3) of Regulation (EU) No 1308/2013. Member States may fix the level on the basis of normal market rates and standard assumptions of income loss. Member States shall ensure that the calculations:

(a)

contain only elements that are verifiable;

(b)

are based on figures established by appropriate expertise;

(c)

indicate clearly the source of the figures;

(d)

take into account regional or local site conditions as appropriate.

Article 30Use of terms

For the purposes of Article 49 of Regulation (EU) No 1308/2013, ‘natural disasters’ means natural disasters as defined in Article 2(9) of Regulation (EU) No 702/2014 and ‘adverse climatic events which can be assimilated to a natural disaster’ means adverse climatic events that can be assimilated to a natural disaster as defined in Article 2(16) of that Regulation.

Article 31Priority criteria

Member States may establish priority criteria by indicating them in the support programme. Such priority criteria shall be based on the specific strategy and objectives set out in the support programme and shall be objective and not discriminatory.

SECTION 6 Investments

Article 32Beneficiaries

The beneficiaries of the support referred to in Article 50 of Regulation (EU) No 1308/2013 shall be wine enterprises producing or marketing the products referred to in Part II of Annex VII to that Regulation, wine producer organisations, associations of two or more producers or interbranch organisations.

Article 33Eligible actions and eligible costs

1.

Only the costs of the following actions shall be eligible for support:

(a)

the construction, acquisition, leasing, or improvement of immovable property;

(b)

the purchase or lease-purchase of new machinery and equipment up to the market value of the asset;

(c)

general costs linked to expenditure referred to in points (a), and (b), in particular architect, engineer and consultation fees as well as feasibility studies;

(d)

the acquisition or development of computer software and acquisition of patents, licences and copyrights and the registration of collective marks.

The feasibility studies referred to in point (c) of the first subparagraph shall remain eligible expenditure even where, based on their results, no expenditure under points (a) and (b) of that subparagraph is made.

2.

Costs connected with a leasing contract other than those referred to in points (a) and (b) of the first subparagraph of paragraph 1, in particular lessor's margin, interest refinancing costs, indirect costs and insurance charges, shall not be eligible expenditure.

3.

By way of derogation from point (b) of the first subparagraph of paragraph 1, for micro, small and medium-sized enterprises within the meaning of Commission Recommendation 2003/361/EC11 Member States may, if duly justified by their support programme, establish conditions under which the purchase of second-hand equipment may be regarded as eligible costs.

4.

Simple replacement investments shall not constitute eligible costs.

Article 34Compatibility and consistency

No support under Article 50 of Regulation (EU) No 1308/2013 shall be granted for operations which received support under Article 45 of that Regulation.

Article 35Eligibility criteria

Member States shall examine an application against the following criteria:

  1. (a)

    the operations and their underlying actions are clearly defined, describing the investment actions and including the estimated cost;

  2. (b)

    assurances that the costs of the proposed operation are not in excess of the normal market rates;

  3. (c)

    assurances that beneficiaries have access to sufficient technical and financial resources to ensure that the operation is implemented effectively and that the applying enterprise is not in difficulty as referred to in the third subparagraph of Article 50(2) of Regulation (EU) No 1308/2013;

  4. (d)

    the consistency between the strategies proposed and the objectives set and the likely impact and success in improving the overall performance of the processing or marketing facilities and their adaptation to market demands, as well as increasing their competitiveness.

Article 36Priority criteria

1.

Having examined the applications, Member States shall give preference to operations which are likely to have positive effects in terms of energy savings, global energy efficiency and environmentally sustainable processes.

2.

Member States may establish other priority criteria by indicating them in the support programme. Such other priority criteria shall be based on the specific strategy and objectives set out in the support programme and shall be objective and not discriminatory.

SECTION 7 Innovation in the wine sector

Article 37Beneficiaries

1.

The beneficiaries of the support referred to in Article 51 of Regulation (EU) No 1308/2013 shall be wine enterprises producing or marketing the products referred to in Part II of Annex VII to that Regulation, wine producer organisations and temporary or permanent associations of two or more producers.

2.

Research and development centres may participate in the operation pursued by the beneficiaries. Interbranch organisations may be associated to the operation.

Article 38Eligible actions and eligible costs

1.

The operations and their underlying actions for which the support referred to in Article 51 of Regulation (EU) No 1308/2013 is applied shall consist of tangible and intangible investments including for knowledge-transfer for the development of the following:

(a)

new products related to the wine sector or by-products of wine;

(b)

new processes and technologies necessary for the development of grapevine products;

(c)

other investments adding value at any stage of the supply chain.

2.

The eligible costs shall include pilot projects, preparatory actions in the form of design, product, process or technology development and tests and any tangible and/or intangible investments related to them, before the use of the newly developed products, processes and technologies for commercial purposes.

3.

Simple replacement investments shall not constitute eligible costs.

Article 39Eligibility criteria

Member States shall examine an application against the following criteria:

  1. (a)

    the operations and their underlying actions are clearly defined, describing the investment actions and including the estimated cost;

  2. (b)

    assurances that the costs of the proposed operation are not in excess of the normal market rates;

  3. (c)

    assurances that beneficiaries have access to sufficient technical and financial resources to ensure that the operation is implemented effectively;

  4. (d)

    the consistency between the strategies proposed and the objectives set and the likely impact and success in improving the overall performance of the processing or marketing facilities and their adaptation to market demands, as well as increasing their competitiveness.

Article 40Priority criteria

1.

Having examined the applications, Member States shall give preference to operations which:

(a)

are likely to have positive effects in terms of energy savings, global energy efficiency and environmentally sustainable processes;

(b)

include an element of knowledge transfer;

(c)

ensure the participation of research and development centres.

2.

Member States may establish other priority criteria by indicating them in the support programme. Such other priority criteria shall be based on the specific strategy and objectives set out in the support programme and shall be objective and not discriminatory.

SECTION 8 By-product distillation

Article 41Beneficiaries

The beneficiaries of the support referred to in Article 52 of Regulation (EU) No 1308/2013 shall be distillers of by-products of wine-making.

The relevant Member States may introduce a system of voluntary certification of distillers according to a procedure that they lay down.

Article 42Purpose of the support

1.

The support referred to in Article 52 of Regulation (EU) No 1308/2013 shall be paid to distillers that process the by-products delivered to distillation into alcohol with an alcoholic strength of at least 92 % by volume to be used exclusively for industry or energy purposes.

The first subparagraph shall not prevent the further processing of the alcohol obtained, on the basis of which the amount of support is calculated in accordance with Article 18 of Implementing Regulation (EU) 2016/1150, in order to fulfil the requirement of Article 52(5) of Regulation (EU) No 1308/2013 concerning the exclusive use for industrial or energy purposes.

2.

The support shall include an amount intended to compensate the costs of collection of the products concerned, which shall be transferred from the distiller to the producer, if the relevant costs are borne by the latter.