This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
News
China extends EU brandy probe
China’s Ministry of Commerce has extended its investigation into EU brandy for a further three months, with the anti-dumping probe now expected to come to a close on 5 April 2025.
The Chinese Ministry of Commerce (MOFCOM) has extended its anti-dumping probe of brandy imported into the country from the EU.
MOFCOM discussed the extension during a press conference on 26 December. In a statement from the conference posted on X, the ministry said the decision was a result of “the intricacies involved in this investigation”.
The ministry said the deadline extension had also been requested by the EU. It said it hoped “the parties concerned would continue their cooperation in the investigation”.
China’s probe into EU brandy was launched on 5 January 2024. The investigation, originally due to last one year, has now been extended to 5 April 2025.
Since the tariffs were first threatened in early 2024, experts have claimed they are a response to the EU’s probe into Chinese electric vehicles.
The taxes came into force in the form of guarantees from 11 October 2024.
Since then, importers of all wine-based spirits originating in the European Union (namely Cognac, Armagnac and brandies) have been told to lodge deposits for shipments coming into China. Deposits are equivalent to the level of duty announced on 29 August, the average of which falls at 35%.
The Bureau National Interprofessionnel du Cognac (BNIC) has claimed that China’s decision to impose the taxes from October was a direct and immediate response by the country’s authorities to the decisions taken by Europe on 4 October in favour of taxing Chinese electric cars.
The EU brandy tariff case has now been referred to the World Trade Organisation.
In November, a month after the taxes were applied, the BNIC warned that producers would be forced to take action in order to remain in the Chinese market. The governing body said: “While awaiting a negotiated solution and in light of the observed deterioration, certain Houses may be forced to explore all possible options to maintain the appellation’s presence in the Chinese market in an effort to mitigate the negative impacts on the entire sector and the region.”
French spirits giant Rémy Cointreau has said it will be “obliged” to increase Cognac prices for consumers in China as a result of the newly-imposed tariffs.
Fellow major Cognac house Hennessy announced plans to bottle its products in China in order to circumvent the tariffs. However, this announcement by parent company LVMH was met with strikes from workers protesting the move.
Related news
Historic Delamain Cognac tops Bonhams Paris prestige spirits sale