Article 3

If the total quantity covered by the contracts submitted to the intervention agency exceeds the quantity laid down in Article 1, Italy shall determine the rate of reduction to be applied to the above contracts.

Italy shall take the administrative steps necessary to approve the above contracts by 31 October 2005 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.

Italy shall notify the Commission before 30 November 2005 of the quantities of wine covered by approved contracts.

Italy may limit the number of contracts that individual producers may conclude under this Regulation.