China Imposes Temporary Duties on European Brandy

On November 11, 2024 China’s Ministry of Commerce announced the imposition of duties that will affect brandy imports from the European Union beginning November 15. The measures are defined as “anti-dumping” and “temporary.” China is a major market for European spirits, and Beijing launched an anti-dumping investigation into brandy on January 5, 2024.

The decision, according to China’s Xinhua news agency, which quoted a statement from the Ministry of Commerce, “follows a preliminary investigation that determined EU brandy producers are practicing dumping on a range of products in China, which threatens to cause significant damage to the domestic industry.” In Europe, the measure is seen solely as a response to Brussels’s duties on Chinese electric cars, which took effect at the end of October 2024.

Specifically, importers of brandy coming from the European Union will have to bail out Chinese customs based on dumping margins ranging from 30.6% to 39%. The measures apply to grape-based alcoholic beverages in containers of less than 200 liters.

The duties vary from producer to producer, among the best known of which will be 39% for Hennessy and 38.1% for Remy Martin. According to Italian newspaper Avvenire, which reports data for 2022, the cognac market in China for France is worth 773 million euros.