China’s Ministry of Commerce announced Tuesday that it will not impose immediate anti-dumping duties on European Union brandy imports, despite finding that the products are being dumped in the Chinese market with margins ranging from 30.6% to 39.0%.
The decision follows a preliminary investigation that confirmed the dumping of EU brandy poses a substantial threat of material injury to China’s domestic brandy industry. However, the Ministry opted not to implement provisional measures at this time. The investigation specifically highlighted dumping margins for major brands, including Martell & Co, Société Jas Hennessy & Co, and E. Rémy Martin & Co, but the Ministry did not indicate when or if duties might be imposed.
The announcement confirms the timeline that was first reported by Vino Joy News on the timeing that a decision is expected by end of August.
The Ministry’s announcement was issued as part of its preliminary ruling on an anti-dumping investigation launched in January at the request of China’s brandy industry. The investigation determined that the dumping activities had a direct causal link to the potential harm facing the domestic industry. Martell & Co was found to have a dumping margin of 30.6%, Société Jas Hennessy & Co at 39.0%, and E. Rémy Martin & Co at 38.1%.
Unlike the approach taken in a recent case involving Australian wine, where deposits were required following a preliminary ruling, the Ministry said no such measures will be enforced for the time being. The announcement did not specify when or if anti-dumping duties might be implemented but noted that stakeholders have 10 days from the ruling’s publication to submit written feedback.
The scope of the investigation includes all EU brandy imports except those packaged in containers of 200 liters or more.
Timeline
The investigation into EU brandy imports began on January 5, 2024, after a request from China’s domestic brandy producers. On March 28, the Ministry of Commerce identified Martell, Hennessy and REMY MARTIN as the primary companies involved in the investigation.
In April, Chinese Commerce Minister Wang Wentao met with representatives from French brandy companies in Paris, emphasizing that the investigation was not targeted at any specific EU member state and that no conclusions had been predetermined.
A hearing on the case was held on July 18, involving 26 interested parties and approximately 80 participants.
The preliminary ruling was issued on August 29, confirming the presence of dumping but stopping short of immediate action against the companies involved.
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