SpiritsEurope calls for solutions to prevent anti-dumping duties on EU brandy

The Chinese Ministry of Commerce (MOFCOM) has announced that, as of Friday, October 11 2024, importers of EU wine-based and marc-based products to China must provide security deposits based on provisional anti-dumping duties.

“Today’s decision means that, at an extremely short notice, EU producers will be hit by a significant additional financial burden when exporting EU wine-based and marc-based products to China,” says Ulrich Adam, director general of spiritsEurope.

He believes this new step exerts an “extremely negative impact on the exporters of EU wine-based and marc-based spirits to China,” a major export destination.

Since January 2024, the sector has fully cooperated with Chinese authorities, demonstrating complete transparency. According to SpiritsEurope, the evidence provided clearly demonstrates the absence of dumping, injury or threat of injury. 

The sector is a “collateral victim” of a broader trade conflict, as the Chinese authorities’ decision was taken in reaction to the EU’s vote on e-vehicle duties last Friday.

“We call on the European Commission to redouble efforts to find a negotiated solution with its Chinese counterparts urgently,” Adam affirms. 

Anti-dumping duties imposed by MOFCOM

Companies involved in the export and import of EU wine-based and marc-based spirits to China have registered as interested parties and provided detailed data to MOFCOM.The announcement in August 2024 concerned duties determined as part of an anti-dumping investigation launched by MOFCOM on January 5, 2024. As part of this procedure, companies involved in the export and import of EU wine-based and marc-based spirits to China, and the associations that represent them, have registered as interested parties and provided detailed data to MOFCOM. 

Three operators were part of a sample as part of the investigation and have provided additional information to MOFCOM, which announced provisional duties set at different rates for each of the three companies, ranging from 30.6% to 39%. This was based on specific dumping margins defined by the ministry. The average of these duties establishes the duty rate for all other cooperating companies, i.e, 34.8%. 

Companies unable to respond to all procedural requirements and detailed questionnaires as part of the procedure will face the highest duty rate (39%). MOFCOM has announced that these provisional duties will “not be applied for the time being.”

Meanwhile, the investigation from MOFCOM will continue until completion.