So much so that, in the end, the Chinese duties on French cognac come into force tomorrow. The Chinese Ministry of Commerce issued today the "final decision" on the anti-dumping investigation on brandy from the European Union. Well, the ministry has imposed duties of up to 34.9% for a period of five years starting from July 5, 2025.

The decision comes from the Tariff Commission of the State Council of China, which has decided to impose anti-dumping duties, ranging from 27.3% to 34.9%, on brandy imported from the EU starting tomorrow. The duties will not be levied retroactively on brandy originating in the EU imported from 11 October 2024 to 4 July 2025 (inclusive).

The tariffs, the Ministry of Commerce explains, will be imposed "on those who have not committed to respecting the minimum prices or on those who have violated the promised minimums". Among the companies "spared" by the Chinese duties are the major cognac producers Pernod Ricard and Remy Cointreau, always on the condition that they sell at a minimum price.

No minimum prices have been disclosed, although a few days ago a delegation of French cognac producers, meeting with Beijing authorities, suggested minimum prices for exports to China ranging from 20 to 300 dollars per liter: the "price list" presented to the Chinese authorities includes a "minimum import price" for different ranges of cognac defined by the aging time of the spirit, ranging from two years for the cheapest "Very Special" (VS) to the most expensive "Extra Extra Old" (XXO), aged 14 years or more. According to the offer, VS cognac would have a minimum import price of 144.70 yuan (17.4 euros) per liter, while "Very Superior Old Pale" (VSOP), aged for at least four years, would have a price of 177.92 yuan (21.4 euros). The high-end "Extra Old" (XO) would cost 526.52 yuan (63.4 euros) to import, while the XXO category, where prices reach thousands of dollars a bottle and more, would cost at least 2,126.07 yuan (over 256 euros) per liter. The prices listed in the document refer to the price paid by importers in China, while distributors, wholesalers, retailers and consumers pay more to buy it (read EFA News ).

Recall that on January 5, 2024, the Ministry of Commerce initiated an anti-dumping investigation into brandy imported in containers of less than 200 liters from the EU (read EFA News ). Based on the results of the investigation, on August 29, 2024, the investigating authority issued a preliminary ruling after which the investigating authority continued the investigation, which has now been concluded one day ahead of the established timetable, which was scheduled to close tomorrow, July 5.

According to the Chinese Ministry of Commerce, therefore, there is dumping of imported brandy from the EU: on this basis, the authorities claim, the domestic brandy industry is threatened by substantial injury. Furthermore, according to the results of the investigation, there is a causal link between dumping and the threat of substantial injury.

French cognac producers have complained about Beijing's decision, saying they have been "dragged into the mix," so to speak, in a broader trade dispute between Brussels and Beijing over import tariffs on electric vehicles (EVs) produced in China. According to data from the Bureau National Interprofessionnel du Cognac (BNIC), monthly cognac exports to China, the world's largest market for the spirit, have fallen by up to 70% because of the trade dispute.

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