China imposes anti-dumping duties on EU brandy, some companies exempt

China’s Ministry of Commerce will impose anti-dumping duties on EU brandy imports, ranging from 27.7%-34.9%. Three companies, including Pernod Ricard and Rémy Cointreau, will be exempt after agreeing on minimum import prices. MOFCOM cited dumping of EU brandy, threatening the domestic industry.

An investigation launched last year by Beijing in response to complaints led to the imposition of duties on EU brandy. The BNIC confirmed the impact on various types of brandy, including Cognac. The final duty imposed is slightly less than the provisional duty from last October.

Rémy Cointreau is awaiting further details on the agreement, which it believes to be more favorable than permanent anti-dumping duties. Pernod Ricard welcomed the conclusion and agreed to the minimum price undertaking. The BNIC urged an extension of the minimum price commitment regime to all companies.

The BNIC expressed regret over the increased costs of operating in China but acknowledged the agreement’s benefits compared to permanent tariffs. They push for an extension of the minimum price agreement to all companies. Florent Morillon emphasized the need for market access for exporters.

MOFCOM will reimburse guarantees and release securities paid since October 2024. SpiritsEurope expressed disappointment over the decision to impose duties, urging an extension of price undertakings. The duty-free market for Cognac remains closed, impacting sales in China.

China’s decision to impose duties on EU brandy has sparked concerns. SpiritsEurope director general Hervé Dumesny criticized the move, highlighting the need for cooperation. The conclusion of price undertakings with some companies offers relief, but calls were made for extension to all signed companies.

Read more at Yahoo Finance: China confirms duties on EU brandy, some companies exempt