EUROPEAN COMMISSION Directorate-General for Internal Market, Industry, Entrepreneurship and SME's

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1 Ref. Ares(2015) /08/2015 EUROPEAN COMMISSION Directorate-General for Internal Market, Industry, Entrepreneurship and SME's Single Market Policy. Regulation and Implementation Prevention of Technical Barriers Brussels, AP/PMG - grow.b.2(2015) To: TBI Enquiry Point of Indonesia tbt.indonesia@bsn.ao.id tbt.indonøsia@qmail.com Copy EU Delegation From: Mr Giuseppe Casella Telephone: EU-WTO-TBT Enquiry Point grow-eu-tbt@ec.europa.eu Number of pages: Subject: 1 +4 G/TBT/N/IDN/101 - Regulation of the Chairman of NADFC RI No 1 Year 2015 concerning Food Category - Alcoholic Beverages EU comments Message: Dear Sir or Madam Please find attached the comments from the European Union on the above-mentioned notification. Could you please acknowledge receipt of this ? Thank you. Yours faithfully pegasella ead of Unit Contact: Mr Polito Telephone: (32-2) arow-eu-tbt@ec.europa.eu TBI Database: Commission européenne, B-1049 Bruxelles/Europese Commissie, B-1049 Brussel - Belgium. Telephone: (+32-2) Office: N105 4/63. Telephone: direct line (+32-2) Fax: (+32-2) grow-eu-tbt@ec.europa.eu

2 COMMENTS FROM THE EUROPEAN UNION REGARDING NOTIFICATION G/TBT/N/IDN/101 DRAFT REGULATION OF THE CHAIRMAN OF NADFC RI No 1 YEAR 2015 CONCERNING FOOD CATEGORY The European Union (EU) would like to thank the authorities of Indonesia for providing the opportunity to comment on the draft of the "Regulation of the Chairman of NADFC RI No 1 Year 2015 concerning Food Category" notified on 24 June Having examined the notified draft, the EU would like to raise the issues below. 1. General comments 1.1 Level of methanol for spirit drinks The EU notes that the notified draft sets, for wine and spirit drinks defined in it, a methanol content limit of 0.1% compared to ethanol. For wine and spirit drinks produced in the EU, higher limits for methanol content are fixed. Since this requirement could create barriers to trade and given the absence of a risk for health as regards wine and spirit drinks produced in the EU, the EU would like to ask the authorities of Indonesia to share the scientific information justifying the fixation of such lower limit. 1.2 Use of caramel in the production of some spirit drinks The EU notes that the possibility to use caramel as a means to adapt the colour, in particular for brandy, rum and whisky, is not included in the draft. However, for "gin" it is indicated that "sometimes it is colored gold or light brown". The use of caramel is widely used to adapt the colour of several spirit drinks. The EU understands that the notified draft does not impede the use of caramel for this purpose and would like to ask the Indonesian authorities to confirm it. The EU would also like to suggest to the Indonesian authorities to clearly indicate in the notified draft the possibility to use caramel for adapting the colour of some spirit drinks. 1.3 Minimum alcohol content of spirit drinks The EU notes that the notified draft sets a minimum alcohol content for spirit drinks at 37%. This limit would exclude some categories of spirit drinks like, for example, liqueurs, which are usually produced with a much lower content of alcohol. In addition, the notified draft presents a contradiction with reference to the alcohol content for spirit drinks. The general definition of "Spirit drink" provides that it "includes all distillation spirit drinks gained from grains, fruit or cane sugar containing ethanol higher than 15%". Subsequently, it is stated in the definition of "Spirit' that the ethanol content of a spirit drink is not less than 37%. Finally, for most of the specific categories of spirit drinks the alcohol content level is set at 35%. 1

3 The EU would welcome clarification from Indonesia on the rationale for setting these limits and suggests to refer to a minimum limit of 15%, as established in CODEX STAN 192 for product category Agricultural origin of ethyl alcohol or distillates for the production of spirit drinks The EU notes that according to the definition of "Spirit" (category ) laid down in the notified draft, only grains, fruits or sugar cane can be fermented and distilled for the production of ethyl alcohol or distillates. Other agricultural products often used for that production, as for example potatoes or other tubers, are not indicated. On the other hand, the fermentation and distillation of potatoes appears possible in the definition set up in the notified draft for gin and vodka. The EU would like to suggest to the Indonesian authorities to eliminate this incoherence by allowing the distillation of any agricultural products for the production of spirit drinks or by referring to CODEX STAN 192, which allows the distillation of tubers for the products referred to in category Specific comments 2.1 Beer The EU notes that the notified draft sets a minimum and maximum alcohol content for beer (category ). This may create an obstacle for the export of beer to Indonesia. The EU would like to suggest to the Indonesian authorities to refer to CODEX STAN 192, which does not set any alcohol limit for beer. 2.2 Wine The EU notes that for still wine (category ) the notified draft establishes two different definitions for red and white wine. The EU would like to ask the Indonesian authorities to share the rationale for adopting these different definitions and would also like to stress that white wine is not necessarily made with "green colored grapes", as provided for in the notified draft, but can also be made with red grapes. For the definition of wine the EU would like to suggest to the Indonesian authorities to take into account, besides CODEX STAN 192, the recommendations of the International Organisation for Vine and Wine (OIV), which represents the majority of wine producing countries (OIV member countries represent 80% of the wine consumption and 85% of the wine production). The EU notes also that the notified draft defines fortified wine (category ) both as a wine that may be produced "by mixing concentrate of fermented grape juice and alcohoľ (first paragraph) or as a wine that "has been added by wine spirit and or brandy". The EU would like to ask Indonesia to share the reasons which would justify these different definitions. In order to avoid any confusion, the EU would like to suggest to the Indonesian authorities to only maintain the first paragraph, which seems to reflect the provisions of CODEX STAN 192, and to delete the second one, which does not cover all fortified wines but only refers to some names registered in the EU as protected denominations of origin. 2

4 2.3 Brandy and Cognac In the absence of a definition for "wine spirit, the EU understands that the category "brandγ as proposed in the notified draft (category ) covers both "wine spirit' and "brandy". In the EU those two categories are not identical, in particular as regards the type of distillation and the ageing obligations. The EU, in line with the recommendation of the OIV, establishes the definition of "wine spirit" besides the definition of "brandy". For wine spirits there is no ageing obligation, while for brandy there is an ageing obligation of 6 months or 1 year, depending on the size of the oak casks used. The 2 years requirements for the maturation of brandy established in the notified draft could therefore create a problem for the export of some EU brandies and wine spirits. As regards the definition of "Cognac" laid down in the notified draft, the EU points out that not all the brandy or wine spirit produced in France can be defined as "Cognac". Indeed, "Cognac" is a geographical indication registered in the EU, the use of which is reserved only to a wine spirit elaborated in the Cognac delimited area, in France, under strict rules of production established in the relevant technical file. The EU would therefore suggest to replace the "Cognac" definition with the "wine spirit' definition. The maximum methanol content for wine spirit or brandy should be set at 200 grams per hectolitre of 100% vol. alcohol, based on the production method required for this category of spirit drink. In order to take into account the specificity of wine spirits and brandy and to avoid technical barriers to trade for those spirit drinks, the EU would like to ask the authorities of Indonesia to consider adding the category of "wine spirit" in the notified draft. Moreover, for the definition of "wine spirif and "brandy" categories, the EU would encourage Indonesia to refer to the recommendations of the International Organisation for Vine and Wine (OIV) in section 7 of its International Code of Oenological Practicesl. 2.4 Liqueur The EU notes that the notified draft sets a minimum alcoholic strength for liqueurs at 35%. The EU would like to draw the attention of Indonesia to the fact that most of liqueurs, regardless of the place of production, present an alcoholic strength lower than other spirit drinks, notably distillates. Therefore, the EU would like to suggest to fix the minimum alcohol content for liqueur at 15%. 2.5 Wine cocktail The EU notes that the notified draft contains a definition of "wine cocktaiľ. In the EU, wine cocktails are part of the wider category of alcoholic beverages "aromatised wine products". By establishing only the definition of "wine cocktaiľ, Indonesia could hinder the marketing of other aromatised wine products

5 The EU would like to suggest to the Indonesian authorities to also introduce in the notified draft a definition of "aromatised wine products" by referring to the recommendations of the International Organisation for Vine and Wine (OIV) in Section 6 of its International Code of Oenological Practices. The EU would be grateful if the above-mentioned comments could be taken into account and replied to. 4