China imposes anti-dumping duties on EU brandy imports, exempts key firms under price deal 

CHINA – China’s Ministry of Commerce (MOFCOM) has confirmed the imposition of anti-dumping duties on brandy imports from the European Union, effective July 5.  

The move follows the conclusion of an investigation launched in response to complaints from the China Liquor Industry Association, alleging unfair pricing practices by EU exporters. 

In its official statement on July 4, MOFCOM said the duties would range between 27.7% and 34.9% and apply to all EU-origin brandy products unless specific agreements had been reached.  

The ministry stated that “there is dumping of imported brandy originating from the EU,” which posed a “threat of substantial damage” to China’s domestic brandy industry. It also confirmed a causal link between the alleged dumping and the harm to local producers. 

However, three major producers—Pernod Ricard, Rémy Cointreau, and Hennessy—have been granted exemptions under a minimum price agreement. These companies reached a deal with Chinese authorities to maintain a specified floor price for imported products, allowing them to avoid the new duties.  

According to the Bureau National Interprofessionnel du Cognac (BNIC), the agreement applies to Cognac, Armagnac, eau-de-vie de vin, and pomace brandy. 

The BNIC emphasized that the final decision represents a slight reduction from the average provisional duties imposed by China last October, when provisional dumping measures were first applied.  

The trade body reiterated that EU producers have demonstrated no evidence of dumping practices over the past 18 months. 

In a stock exchange filing, Rémy Cointreau acknowledged that the agreement introduces less favorable terms compared to the pre-investigation period but welcomed the alternative to permanent tariffs.  

Pernod Ricard similarly expressed support for the conclusion of the investigation and stressed that agreeing to the price undertaking did not imply an admission of any dumping practices. 

The BNIC called on MOFCOM to extend the list of exempted companies to include all those that responded to the investigation and signed similar price agreements.  

Florent Morillon, president of the BNIC, stated, “This decision marks the end of the anti-dumping investigation, but not the end of our efforts to ensure that all our exporters regain unhindered access to the Chinese market as quickly as possible.” 

MOFCOM also announced it would begin reimbursing guarantees and releasing security deposits paid by companies since the provisional tariffs were introduced in October 2024.  

These measures had required importers to submit financial guarantees upon the arrival of their goods in China. 

The European spirits industry, represented by SpiritsEurope, has expressed cautious optimism over the outcome, noting the exemption deal as a pathway to continued market access while urging broader implementation of the agreement’s terms. 

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