NEWS
AUSSIE WINE EXPORTERS FACE UP TO 212% ANTI-DUMPING DUTY IN CHINA FROM TOMORROW
By Tony Zhu
27-11-2020
Source: China Ministry of Commerce
Australian wine exporters will face a special duty of up to 212.1% in China from tomorrow as China’s Ministry of Commerce announced temporary anti-dumping measures to stop subsidised Australian wines.
In an announcement released today, the ministry ruled that Australian wine imports have violated anti-dumping rules and have caused material damages to domestic producers.
The announcement said a special duty ranging from 107.1% to 212.1% will be applied to Australian wine exporters from tomorrow, depending on the severity of their dumping behaviours.
The ministry has also released a table (see below) showing the duty rates to be applied to individual companies.
Treasury Wine Estates (TWE), owner of Penfolds brand and one of the three companies having taken part in a sample questionnaire investigation, will face a duty of 169.3%.
Casella Wines Ltd and Australia Swan Vintage Ltd, both are also sample companies, will be levied a duty of 160.2% and 107.1% respectively.
The table showed that majority of the companies will face a duty of 160.6%, including leading producers like Pernod Ricard, owner of Jacob’s Creek brand, and Accolade Wines which owns Echo Falls and Hardys brands.
Companies which did not appear on the table will all face the highest 212.1% duty rate.
The ministry did not specify how long the measures will last. It is also unsure if customs clearance for Australian wines, which has been halted for three weeks due to an unofficial ban, will be resumed tomorrow with the imposition of this special duty.
Leading producer TWE’s share price slumped 11.25% today to AUD9.23 at market close upon the news. The company's Penfolds brand is one of the most popular fine wine brands in China.
Australia’s trade minister Simon Birmingham said the duty is unjustifiable and will make Australian wine exports to China unviable.
China is by far Australian wines’ biggest export market importing 37 percent of Australia’s total wine exports, the trade was worth AUD1.1billion last year, according to data from Wine Australia.
The full table released by China Ministry of Commerce:
(the writer can be contacted at: info@thewinechronicle.com)
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