Article 3

If the total quantities covered by the contracts submitted to the intervention agency exceed the quantities laid down in Article 1, Italy shall determine the rates of reduction to be applied to those contracts.

Italy shall take the administrative steps necessary to approve the contracts not later than 13 September 2006 in the case of table wine and 28 July 2006 in the case of quality wines psr. 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 20 September 2006 in the case of table wine and 25 August 2006 in the case of quality wines psr of the quantities of wine covered by approved contracts.

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