
Article 1 
Crisis distillation as provided for in Article 30 of Regulation (EC) No 1493/1999 is hereby opened for a maximum of 200 000 hectolitres of table wine in Portugal, in accordance with the provisions of Regulation (EC) No 1623/2000 concerning this type of distillation.
Article 2 
Producers may conclude delivery contracts as provided for in Article 65 of Regulation (EC) No 1623/2000 (hereinafter referred to as ‘the contract’) from 16 August to 15 September 2006.
Contracts shall be accompanied by proof that a security equal to EUR 5 per hectolitre has been lodged.
Contracts may not be transferred.
Article 3 

1. If the total quantity covered by the contracts submitted to the intervention agency exceeds the quantity laid down in Article 1, Portugal shall determine the rate of reduction to be applied to the above contracts.
2. Portugal shall take the administrative steps necessary to approve the contracts by 31 October 2006 at the latest. The approval shall specify any rate of reduction applied and the quantity of wine accepted per contract and shall stipulate that the producer may cancel the contract where the quantity to be distilled is reduced.Portugal shall notify the Commission before 15 November 2006 of the quantities of wine covered by approved contracts.
3. Portugal may limit the number of contracts that individual producers may conclude under this Regulation.
Article 4 

1. The quantities of wine covered by approved contracts shall be delivered to the distilleries by 15 February 2007 at the latest. The alcohol obtained must be delivered to the intervention agency in accordance with Article 6(1) by 15 May 2007 at the latest.
2. The security shall be released for the quantities delivered when the producer presents proof of delivery to a distillery.The security shall be forfeit where no delivery is made within the time limit laid down in paragraph 1.
Article 5 
The minimum price paid for wine delivered for distillation under this Regulation shall be EUR 1,914 per % volume per hectolitre.
Article 6 

1. Distillers shall deliver the product obtained from distillation to the intervention agency. That product shall be of an alcoholic strength of at least 92 % volume.
2. The price the intervention agency must pay distillers for raw alcohol delivered shall be EUR 2,281 per % volume per hectolitre. The payment shall be made in accordance with Article 62(5) of Regulation (EC) No 1623/2000.Distillers may receive an advance of EUR 1,122 per % volume per hectolitre on that amount. In that case the advance shall be deducted from the price actually paid. Articles 66 and 67 of Regulation (EC) No 1623/2000 shall apply.
Article 7 
This Regulation shall enter into force on the third day following that of its publication in the Official Journal of the European Union.
It shall apply from 16 August 2006.
This Regulation shall be binding in its entirety and directly applicable in all Member States.Done at Brussels, 4 August 2006.
For the Commission
Mariann FISCHER BOEL
Member of the Commission