TMTPOST -- China slaps anti-dumping measures on brandy imports from the European Union, highlighting tit-for-tat move originating from the bloc’s extra tariffs on Chinese electric vehicles (EVs) following its anti-subsidy investigation.

Credit：Xinhua News Agency

China will impose temporary anti-dumping measures on certain brandy imports originating from the EU, effective November 15, or Friday, the Ministry of Commerce  (MOFCOM) announced Monday. The anti-dumping measures will be implemented in the form of a cash deposit or letter of guarantee, according to the ministry.

The product subject to the temporary anti-dumping measures refers to spirits obtained by distilling grape wine in containers holding less than 200 liters, which are mainly used as consumer goods. The MOFCOM said the deposit is levied based on calculations involving prices approved by the customs, the value-added tax (VAT) as well as the consumption tax for imports.

According to a list released by the MOFCOM, importers of brandy originating in the EU must place deposits with Chinese customs based on dumping margins of between 30.6% and 39%, similar to the range that MOFCOM first made public in October. Three sampled companies Martell & Co, E. REMY MARTIN & Co and Jas Hennessy & Co face the margins of 30.6%, 38.1% and 39.0%, respectively. Other cooperating companies would be subject to a 34.8% margin, while non-cooperating companies would be hit with a 39.0% margin.

The decision follows a preliminary investigation that found EU brandy producers were dumping certain products in China, threatening to cause substantial damage to the domestic industry, the MOFCOM said in a statement on Monday.

France and China have resumed discussing the duties Beijing has imposed on European brandy imports after the EU voted last month for tariffs on Chinese-made EVs, French spirits lobby groups said on Tuesday. The recent exchanges between the French and Chinese authorities at the Shanghai Fair have helped to renew the thread of dialogue, an essential prelude to the emergence of a bilateral solution, according to the lobby groups.

China started an anti-dumping investigation into brandy imported from the EU on January 5, 2024. The MOFCOM announced holding an anti-dumping hearing on brandy imported from the EU on July 18 right after the European Commission announced it  imposed provisional countervailing duties of up to 37.6%, on top of the ordinary BEV import duty of 10%, on imports of battery electric vehicles (BEVs) from China.

The MOFCOM said on October 8 China decided to impose temporary anti-dumping measures on brandy originating in the EU under the World Trade Organization (WTO) rules and the country’s laws and regulations. The blowback came on heels of the EU members’ vote to move forward elevated extra tariffs. The European Commission disclosed earlier October its proposal to impose definitive countervailing duties on Chinese BEV imports has obtained the necessary support from EU Member States for the adoption of tariffs. The announcement cleared hurdles for the EU to introduce up to 45.3% definitive tariffs following an anti-subsidy investigation. Since a qualified majority of 15 EU members  completed, the proposed definitive tariffs are set to go into effect from next month for five years.

The MOFCOM then signaled China could further hit back at the EU’s additional EU tariffs after anti-dumping measures on brandy are implemented. Chinese authorities are conducting investigations into EU pork and dairy to fully protect the rights of all stakeholders, and will make objective and fair ruling based on the results of the investigations, a spokesperson with the ministry said on October 9.  In the meantime, China is working on other measures such as raising tariffs on imported large-displacement fuel vehicles, the spokesperson added.