Explanatory Memorandum to COM(2016)750 - Definition, presentation and labelling of spirit drinks, use of names of spirit drinks when used in other foodstuffs, protection of geographical indications for spirit drinks

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1. CONTEXT OF THE PROPOSAL

The aim of this Commission proposal is to align Regulation (EC) No 110/2008 with the Treaty on the Functioning of the European Union (TFEU). It mainly divides the provisions adopted by the Commission under that Regulation into delegated acts and implementing acts.

The existing EU legal framework for spirit drinks enables the free circulation of goods in the single market by setting up product definitions, labelling rules and provisions related to the protection of geographical indications for spirit drinks. Therefore, it should not be changed.

For this reason, besides alignment with the TFEU, the proposal introduces only a few minor technical amendments, in order to address shortcomings in the implementation of Regulation (EC) No 110/2008 and to make the legislation consistent with new EU legal instruments. Structure and wording changes have been made with the exclusive aim of simplifying the regulations and improving readability, in line with the Commission’s ‘better regulation’ agenda.

These wording and structure changes, and the few technical adaptations, do not affect the substance of the law, which remains the same as in Regulation (EC) No  110/2008. For this reason, no impact assessment was considered necessary.

The associations of spirit drinks producers have been consulted. Their main concerns have been taken into account.

This initiative is not included in the regulatory fitness and performance programme (REFIT) agenda. However, the proposal has been drafted taking into account the Member States’ and stakeholders’ expectations of regulatory simplification and keeping in mind the guiding principles of better regulation.

Given the importance and complexity of the spirit drinks sector, it is appropriate to keep the spirit drinks Regulation for specific measures on the description and presentation of spirit drinks which go beyond the general rules provided in Regulation (EU) No 1169/2011 of the European Parliament and of the Council of 25 October 2011 on the provision of food information to consumers, 1 while remaining consistent with those general rules. The spirit drinks Regulation should continue to focus on definitions of spirit drinks, classified into categories and to contribute to the highest level of consumer protection and the prevention of deceptive practices.

It should also be noted that Regulation (EU) No 1151/2012 of the European Parliament and of the Council on quality schemes for agricultural products and foodstuffs 2 has updated and harmonised the rules on the protection of protected designations of origin (PDOs), protected geographical indications (PGIs) and traditional specialities guaranteed (TSGs). Procedures for the management of PDOs, PGIs, and TSGs (application, amendment, registration, opposition, cancellation) have been completely revised and streamlined. In order to make the procedures for the management of geographical indications in the spirit drinks sector more homogenous with those in place for foodstuffs, the draft proposal replacing Regulation (EC) No 110/2008 includes the modification of Chapter III on geographical indications. 

The proposal keeps unchanged the specificity of the geographical indications scheme for spirit drinks.

As regards procedures, the proposal also includes provisions concerning joint applications and oppositions mirroring those set out in Commission Regulation (EU) No 664/2014 3 and in Commission Regulation (EU) No 668/2014 4 . The inclusion of these provisions makes the proposal consistent and complete. Should Regulation (EU) No 1151/2012 be revised, the same approach would be followed.

Finally, some of the elements currently included in the Commission Regulation (EU) No 716/2013 5 that concern definitions and rules related to compound terms and allusions, are considered essential and have therefore been introduced in the proposal as part of the basic act.

2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

The proposal is based on Articles 43(2) and Article 114(1) of the TFEU, unlike Regulation (EC) No 110/2008 that is only based on Article 95 of the Treaty establishing the European Community (TEC) (currently Article 114 of the TFEU). The addition of Article 43(2) of the TFEU reflects the fact that the ethyl alcohol used for the production of spirits drinks and other alcoholic beverages must be of agricultural origin, which ensures an outlet for basic agricultural products. This strong link to the agricultural sector is emphasised in the new regulatory framework.

This proposal aligns EU legislation on spirit drinks with the TFEU. In addition, it contains minor technical adjustments of such legislation and it replaces the existing procedures for the management of geographical indications in the spirit drinks sector, with new procedures modelled on the more exhaustive and well tested procedures for agricultural products and foodstuffs.

The objectives of such a proposal cannot be achieved by actions carried out by Member States on their own.

However, Member States, in accordance with Article 291 of the TFEU, are responsible for implementing the scheme defined by the legislator. It is necessary to ensure that the rules on spirit drinks are applied uniformly in all Member States in order to:

• prevent deceptive practices;

• ensure protection of consumers; and

• avoid unfair competition.

The legislator therefore grants the Commission the power to implement measures, in accordance with Article 291(2) of the TFEU, specifically on:

• the uniform application of the rules on spirit drinks;

• procedural rules concerning protection of geographical indications;

• checks and verifications to be carried out by Member States; and

• the necessary exchange of information between the Commission and the Member States for the implementation of this Regulation.

This proposal targets the objectives set in the most efficient and satisfactory way while leaving as much scope for national decision as possible.

3. EVALUATION, CONSULTATION AND IMPACT ASSESSMENT

A consensus exists among the producers of spirit drinks to keep the existing legal framework on spirits.

For this reason, the proposal only lays down the Commission empowerments to adopt delegated and implementing acts, besides introducing few technical adjustments and some structure and wording changes that simplify and clarify the drafting of those provisions without changing its substance. The representatives of the spirits sector have been consulted in the context of the Civil Dialogue Group meetings, during which the Commission has gathered information, opinions and recommendations from the spirit drinks experts.

As regards the section on geographical indications, it only brings the registration procedures more in line with the ones applicable to other foodstuffs but does not affect the specificity of the geographical indications regime for spirit drinks.

Therefore, the purpose and scope of the existing regulation will remain unchanged.

For these reasons, an impact assessment to accompany this proposal has not been considered necessary.

4. BUDGETARY IMPLICATIONS

This proposal has no financial implications for the EU budget.