1. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Working Group for Chapter 11 – Agriculture and rural development Bilateral screening: Chapter 11 PRESENTATION OF MONTENEGRO Brussels, 13. 12. 2012

2. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Working Group for Chapter 11 SPIRIT DRINKS Bilateral screening: Chapter 11 Presentation of Montenegro Merisa Čekić Brussels, 13.12.2012

3. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union  Law on Agriculture and Rural Development (Official Gazette of Montenegro 56/09)  Law on Alcoholic Beverages (Official Gazette of Montenegro 83/09)  Rulebook on Quality of Alcoholic Beverages and other Requirements (Official Gazette of Montenegro 24/2004)  Rulebook on Labelling, Marking, Advertising and Presentation of Food of Plant Origin after the Primary Production, Composite and other Food (Official Gazette of Montenegro 16/2011) LEGAL FRAMEWORK Chapter 11: Agriculture and rural development

4. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union HARMONISATION WITH EU LEGISLATION  The Law on Spirit Drinks (Official Gazette of Montenegro No. 83/09) governs the production and trade in spirit drinks, spirit drinks indications, assessment of compliance as well as other issues of relevance for production and trade in alcoholic drinks  The Law has been partly harmonised with the Regulation (Celex No. 32008R0110) on the definition, description, presentation, labelling and the protection of geographical indications of spirit drinks Chapter 11: Agriculture and rural development

5. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union PRODUCTION OF ALCOHOLIC BEVERAGES Chapter 11: Agriculture and rural development NAME OF THE PRODUCTu.m20072008200920102011 NATURAL HARD LIQUORS FROM GRAPE AND WINE hl57435705437952664114 LIQUEURShl-159172150157 ARTIFICIAL HARD LIQUORShl-727533370364 NATURAL WINES IN BULKhl54004102274127284689 BOTTLED NATURAL WINEShl10475810727910316510285999747 Source: MONSTAT

6. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union PRODUCTION STRUCTURE Chapter 11: Agriculture and rural development  Number of distilleries engaged in spirit drinks production for 2012 – 4  All the undertakings are privately-owned

7. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union SPIRIT DRINKS CONSUMPTION Chapter 11: Agriculture and rural development 200720082009 NUMBER OF PERSONS SURVEYED633 230630 042629 613 ANNUAL AVERAGE (IN LITRES) NATURAL PLUM BRANDY77 79936 91740 818 NATURAL GRAPE BRANDY52 43060 74642 977 “VINJAK” BRANDY5 9936 4814 868 OTHER HARD LIQUORS21 29417 35612 862 Source: MONSTAT

8. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union DEFINITION AND CATEGORIES OF ALCOHOLIC BEVERAGES Alcoholic beverages are the beverages intended for human consumption with specific organoleptic properties and minimum 15% v/v content of ethanol. Alcoholic beverages shall be considered also the beverages containing more than 5% v/v ethanol, except for the beverages whose production and trade are governed by special regulations. The categories of alcoholic beverages as:  Brandies,  Hard liquors,  Other alcoholic beverages. Chapter 11: Agriculture and rural development

9. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union BRANDY  alcoholic beverage produced by distillation of fermented squashed grapes, raw juice, fruit husks and stalks, grapes, edible forest fruits, cereals and other agricultural raw materials;  minimum 15% v/v ethanol;  content and with preserved specific organoleptic properties arising from the raw material from which it has been produced;  add caramel solely for the purpose of colour correction, and sweetening solely for the purpose of rounding up the final taste in accordance with the regulation;  in brandy production, it shall be prohibited to use sugar, ethanol and other agents and matters by which quantity could be augmented and natural ingredients of brandy changed. Chapter 11: Agriculture and rural development

10. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union HARD LIQUORS  alcoholic beverages with a minimum 15% v/v ethanol content,  produced: from ethanol of agricultural origin, by mixing ethanol of agricultural origin, brandies and distillates of agricultural origin, i.e. mixing other alcoholic beverages, brandies and distillates of agricultural origin with addition of allowed additives, sweeteners, colours and aromas, in accordance with the regulation. Chapter 11: Agriculture and rural development

11. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union OTHER ALCOHOLIC BEVERAGES  Alcoholic beverages which cannot be classified into the category of brandies or category of hard liquors by specific organoleptic properties and content of alcohol and by manner of production and type of raw material.  Other alcoholic beverages for which quality and other production requirements have not been prescribed, shall be produced by producer’s specification prepared by the producer. Chapter 11: Agriculture and rural development

12. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union LABELLING AND PACKAGING FOR SPIRIT DRINKS  The producer shall perform filling and sealing of alcoholic beverages in a manner preserving its quality.  Alcoholic beverage is sealed in a manner ensuring originality of the product.  It is forbidden to put on the original packages of alcoholic beverages a seal covered by a wrapping, i.e. a steel foil.  Packaging and labelling of alcoholic drinks is performed by the producer or the importer.  It is forbidden to repackage the original packaging of alcoholic beverages of another producer and subsequent labelling as well as use, namely putting on the packaging the label of another producer.  On the occasion of labelling of alcoholic beverages, the maturation period for an alcoholic beverage is determined on the basis of average age of input distillates.  The label must be conspicuous, clear and legible.  Alcoholic beverages with a geographical indication must have on the label also the number of the decision for use of the geographical indication. Chapter 11: Agriculture and rural development

13. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union OZNAKE ALKOHOLNIH PIĆA Alcoholic beverages are marked by: a geographical indication and other indications. Chapter 11: Agriculture and rural development THE GEOGRAPHICAL INDICATION in the sense of this Law, is an indication identifying the alcoholic beverage originating from the territory of one state or region or locality form that territory, where quality, reputation or other characteristics of that alcoholic beverage can be basically ascribed to its geographic origin. OTHER INDICATIONS are the indications used for marking an alcoholic beverage with special quality characteristics, which can be used independently, namely along with the geographical indication.

14. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union REGISTERED GEOGRAPHICAL INDICATION (1) Chapter 11: Agriculture and rural development SHALL BE REGISTERED AT THE REQUEST, BY THE MINISTRY. APPLICATION FOR REGISTRATION IS SUBMITTED TO THE MINISTRY BY THE PRODUCER OR A GROUP OF PRODUCERS WHO PRODUCE IN A CERTAIN GEOGRAPHICAL AREA AN ALCOHOLIC BEVERAGE FOR WHICH REGISTRATION OF THE GEOGRAPHICAL INDICATION IS REQUESTED. APPENDED TO THE APPLICATION IS THE STUDY ON PRODUCTION OF ALCOHOLIC BEVERAGE WITH A GEOGRAPHICAL INDICATION. THE APPLICATION WITH THE STUDY IS SUBMITTED BY THE MINISTRY TO THE COMMISSION FOR REGISTRATION OF THE GEOGRAPHICAL INDICATION FOR THE PURPOSE OF GIVING AN EXPERT OPINION ON THE WELL-FOUNDEDNESS OF THE APPLICATION.

15. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union REGISTERED GEOGRAPHICAL INDICATION (2) Chapter 11: Agriculture and rural development THE COMMISSION ESTABLISHES WELL-FOUNDEDNESS OF THE APPLICATION WITHIN TWO MONTHS FROM THE DAY OF SUBMISSION OF THE APPLICATION. ON THE BASIS OF THE POSITIVE EXPERT OPINION OF THE COMMISSION, THE MINISTRY SHALL ADOPT A DECISION ON REGISTRATION OF THE GEOGRAPHICAL INDICATION OF THE ALCOHOLIC BEVERAGE.

16. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union INTERNATIONAL REGISTRATION OF THE GEOGRAPHICAL INDICATION Chapter 11: Agriculture and rural development  International registration of the geographical indication of an alcoholic beverage shall be performed in accordance with the international agreements binding Montenegro.  Application for international registration of the geographical indication of an alcoholic beverage is submitted to the Ministry.  The registered geographical indication is entered in the Register of Geographical Indications of Alcoholic Beverages, kept by the Ministry.

17. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union PROHIBITION OF USE OF GEOGRAPHICAL INDICATION  Any direct or indirect commercial use of a registered geographical indication for spirit drinks not covered by a registered geographical indication or if such use exploits the reputation of the registered geographical indication  Any misuse, imitation or evocation, even if the true origin of the spirit drink is indicated or if the geographical indication is used in translation or accompanied by an expression such as “like”, “type”, “style”, “flavour”, “made” or any other similar term  Any use of a false or misleading indication as to the origin, nature or essential properties stated in the description, presentation or labelling of a spirit drink, which may create a false impression about its origin  Any other practice that might mislead the consumer with regard to the true origin of the spirit drink  For use of geographical indication Chapter 11: Agriculture and rural development

18. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union RELATIONS BETWEEN GEOGRAPHICAL INDICATION AND GENERIC NAMES, HOMONYMOUS GEOGRAPHICAL INDICATIONS  Registered geographical indications may not become generic names (name of a spirit drink that, although it relates to the place or region where the product was originally produced or placed on the market, has become the common name of a spirit drink)  Names that have become generic names may not be registered as geographical indications  If names of two or several places that a spirit drink originates from are identical or almost identical in a written or oral form (homonymous names), such indications shall be registered as geographical indications only if they meet the requirements as laid down by this law, on the principle of equitable treatment of producers at the market and true informing of consumers, except in cases where it may mislead the consumer as to the geographical origin of the spirit drink Chapter 11: Agriculture and rural development

19. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union PLANS Chapter 11: Agriculture and rural development Adoption of secondary legislation on the basis of the law will fully harmonise the national legislation with the EU Acquis, in terms of definition, description, presentation, labelling and the protection of geographical indications of spirit drinks.  Rulebook on the quality and other requirements for spirit drinks;  Rulebook on methods of sampling and physico-chemical methods for alcoholic drinks analysis The Ministry of Agriculture and Rural Development is in charge of implementation of the law, and the laboratory for the assessment of compliance of spirit drinks, in line with the authorisation provided by the Ministry.  The authorisation of the laboratory for assessment of compliance of spirit drinks is planned.

20. Thank you for your attention! QUESTIONS