Article 3

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.

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.

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