CHAPTER IIWINE

SECTION 1 Crisis support measures

Article 2Derogations from Article 43 of Regulation (EU) No 1308/2013

By way of derogation from Article 43 of Regulation (EU) No 1308/2013, the measures set out in Articles 3 and 4 of this Regulation may be financed under support programmes in the wine sector during the financial year 2020.

Article 3Distillation of wine in case of crisis

1.

Support may be granted for the distillation of wine in accordance with the conditions laid down in this Article. Such support shall be proportionate.

2.

The alcohol resulting from the supported distillation referred to in paragraph 1 shall be used exclusively for industrial purposes, including disinfection or pharmaceutical, or for energy purposes so as to avoid distortion of competition.

3.

The beneficiaries of the support referred to in paragraph 1 shall be wine enterprises producing or marketing the products referred to in Part II of Annex VII to Regulation (EU) No 1308/2013, wine producer organisations, associations of two or more producers, interbranch organisations or distillers of grapevine products.

4.

Only the costs of the supply of wine to distillers and of the distillation of this wine shall be eligible for support.

5.

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.

6.

Member States shall lay down rules on the application procedure for the support referred to in paragraph 1, which shall include rules on:

(a)

the natural or legal persons that may submit applications;

(b)

the submission and selection of applications, which shall include at least the deadlines for the submission of applications, for the examination of the suitability of each proposed action and for the notification of the results of the selection procedure to the operators;

(c)

the verification of compliance with the provisions on eligible actions and the costs referred to in paragraph 4 and priority criteria where priority criteria are applied;

(d)

the selection of the applications, which shall at least include the weighting attributed to each priority criterion where priority criteria are applied;

(e)

arrangements for the payment of advances and the provision of securities.

7.

Member States shall fix the amount of support to beneficiaries on the basis of objective and non-discriminatory criteria.

8.

By way of derogation from Article 44(3) of Regulation (EU) No 1308/2013, Member States may grant national payments in accordance with the Union rules on state aid for the measure referred to in this Article.

9.

Articles 1 and 2, Article 43 and Articles 48 to 54 and Article 56 of Commission Delegated Regulation (EU) 2016/11492 and Article 1, 2 and 3, Articles 19 to 23, Articles 25 to 31, the second subparagraph of Article 32(1) and Articles 33 to 40 of Commission Implementing Regulation (EU) 2016/11503 shall apply mutatis mutandis to the support for distillation of wine in case of crisis.

Article 4Aid for crisis storage of wine

1.

Aid for crisis storage may be granted in respect of wine in accordance with the conditions laid down in this Article.

2.

To avoid that support is given twice for the same quantity of wine withdrawn from the market, beneficiaries who receive aid for crisis storage for a quantity of wine may not receive aid for this same quantity of wine for distillation in case of crisis under Article 3 of this Regulation nor national payments for distillation of wine in cases of crisis under Article 216 of Regulation (EU) No 1308/2013.

3.

The beneficiaries of the aid referred to in paragraph 1 shall be wine enterprises producing or marketing the products referred to in Part II of Annex VII to Regulation (EU) No 1308/2013, wine producer organisations, associations of two or more producers or interbranch organisations.

4.

Member States shall lay down rules on the application procedure for the aid referred to in paragraph 1, which shall include rules on:

(a)

the natural or legal persons that may submit applications;

(b)

the submission and selection of applications, which shall include at least the deadlines for the submission of applications, for the examination of the suitability of each proposed action and for the notification of the results of the selection procedure to the operators;

(c)

the verification of compliance with the conditions for support set out in this article and the provisions on priority criteria where priority criteria are applied;

(d)

the selection of the applications, which shall at least include the weighting attributed to each priority criterion where priority criteria are applied;

(e)

arrangements for the payment of advances and the provision of securities.

5.

Member States may establish priority criteria so that preference can be given to certain beneficiaries 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.

6.

Member States shall examine applications against the detailed description of the proposed actions by the applicant and the proposed deadlines for their implementation.

7.

By way of derogation from Article 44(3) of Regulation (EU) No 1308/2013, Member States may grant national payments in accordance with the Union rules on state aid for the measure referred to in this Article.

8.

Articles 1 and 2, Article 43 and Articles 48 to 54 and Article 56 of Commission Delegated Regulation (EU) 2016/1149 and Article 1, 2 and 3, Articles 19 to 23, Articles 25 to 31, the second subparagraph of Article 32(1) and Articles 33 to 40 of Commission Implementing Regulation (EU) 2016/1150 shall apply mutatis mutandis to the aid for crisis storage of wine.