International Contracts: applicable law for an international sale
May 15, 2023
¿Qué es una Sociedad Mercantil Europea?
May 31, 2023
In most of the countries, alcoholic beverages are sold in bottles of 75cl (750mL).
However, in Europe, the normativity distinguishes between wine and spirits (like Tequila and Mezcal).
Alcoholic beverages: the difference between fermented beverages and spirits
A spirit is a beverage that has an alcoholic content that stems from the distillation of agricultural raw materials; their production of such materials represents the wellbeing of the agricultural sector and its producers.
When it comes to wine, it is obtained by the maceration and eventual fermentation of the grapes. Another example under the category of fermented beverages is beer.
European normativity:
In annex 1 of Directive 2007/45/CE, of September 5th, 2007, the European Parliament and the Council set the rules concerning the nominal quantities for the production of prepackaged, and it contemplates that spirits shall only be sold in 100, 200, 350, 500, 700, 1000, 1500, 1750, or 2000 mL.
Since Tequila and Mezcal are spirits, they are bound to be sold in such quantities, not in their usual format of 75cL.
Difficulties for Foreign Trade:
This represents a problem for Mexican companies that seek to export Tequila or Mezcal to Europe. In fact, the packaging in Mexico is in bottles of 75cL.
The different treatment towards wine and spirits could be qualified as a protective non-tariff measure, which aims to protect the wine industry.
This is because wine and spirits are competing products since they cover similar necessities.
Possible solution:
In April of 2023, the Regional Direction of Enterprises of Consumption, Work and Employment of France (DREETS), published a document where they state a solution in line with the EU normativity.
According to the former, it is possible to sell 70cL of Tequila and/ or mezcal in bottles of 75cL. The condition is that the label states that the content is 70cL. Without this element, the seller could be accused of deceiving the customer.
While the EU Court of Justice has not communicated any decision or commentary in the context of this practice, it does not look contrary to EU Law. Furthermore, DREETS is a specialized authority in EU Competence and Consumption Law.
However, one should bear in mind that Directive 2007/45/CE is an EU rule that defines a goal but not the implementation. Therefore, each State Member is free to decide how to achieve such a goal, so it is strongly advisable to look up the specifications within each State Member of the EU.
In this context, the solution proposed by DREETS, is only applicable in France.
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