The Chinese Ministry of Commerce announced that the Tariff Commission has decided to impose tariffs on European brandy packaged in containers of less than 200 liters.
The highest tariffs will affect the French group Hennessy, which will face a 34.9% tax. Rémy Martin and Martell will be taxed at 34.3% and 27.7%, respectively.
The measure comes a day before the publication of the conclusions of Beijing’s ‘anti-dumping’ investigation into European brandy imports—spirits distilled from wine, essentially cognac—which began as retaliation for the European investigation into Chinese state subsidies to the electric vehicle industry.
China absorbs about a quarter of French cognac exports. The sector reports losing about 50 million euros per month due to these measures.
On a visit to China last week, the President of the French National Assembly, Yaël Braun-Pivet, expressed hope that the sanctions would be lifted “in the coming days.”
According to the French Federation of Wine and Spirits Exporters, negotiations involved a price increase between 12% and 16%, at a time when Beijing considered raising tariffs by over 30%.
Since last autumn, importers have been required to deposit an equivalent guarantee with Chinese customs, as part of provisional measures imposed by Beijing.
‘Dumping’ refers to selling at a price below the cost of production.
