China’s crippling anti-dumping tariff of up to 218% have essentially upended Australia’s wine market in China, and it appears any access to the market will be even harder for Australia, as it ranks as the top country of origin rejected by Chinese customs upon entry.
According to data released by Chinese customs, Australian wine ranks the highest among “unqualified imported wines” rejected or destroyed upon entry in the first nine months of the year.
According to the customs, a total of 38 batches of unqualified imported wines were rejected or destroyed in the nine-month period, a spike of 245% over the same period last year.
Australia alone accounted for 26 batches out of the total 38 problematic batches flagged by Chinese authorities, with the others being Austria, Germany, France, Serbia and Spain.
The total amount of Australian wines rejected by Chinese customs authorities was not disclosed, nor it was clear how many bottles one batch would involve, but as we have reported in April that over 9,000 bottles of Australian wines were refused entry for food additives and labeling issue, and Penfolds.
Earlier this year, over 3,000 bottles of Penfolds were also blocked for labeling issue.
The main reason for the rejection as the authorities explained was due to labeling issue, which resulted in a total of 20 batches being turned down at entry point, according to Chinese customs officials.
Other issues that have caused imported wines’ being denied into the Chinese market are packaging issue, excessive use of food additives, methanol, lead and sugar.
This adds to Australia’s growing woes in the Chinese market. The country used to be China’s biggest wine supplier but since China’s anti-dumping investigation initiated last year and ensuing crippling tariff of up to 218%, Australia has essentially lost its access to the Chinese market.
With what now appears to be heightened scrutiny and checks on Australian wine to China, it would further cork any remaining hopes for Australian wines.
The rejected wines were flagged at different Chinese ports in Beijing, Hangzhou, Nanjing, Qingdao, Xiamen, Shenzhen, Chongqing, Huangpu, Tianjin, but Shenzhen, which borders Hong Kong and Macau, saw the highest number of wine entry that was rejected, according to the customs department.