On 5 January 2024, the Ministry of Commerce of China (“MOFCOM”) initiated an antidumping investigation of brandy imported from the European Union (“EU”).
Key facts about the investigation
The product under investigation comprises spirits obtained through distilling grape wine in containers holding less than 200 liters (commonly referred to as brandy, with the applicable China tariff code 2208.2000) originating from EU and exported to China during the period of 1 October 2022 through 30 September 2023.
All EU manufacturers and/or exporters of the aforementioned product will have an opportunity to respond to this investigation, allowing them to present a defense and seek a separate, favorable antidumping duty rate. Failure to engage in this process would lead to imposition of a punitive, nation-wide antidumping duty rate on future imports, which is currently alleged by the Chinese petitioner (China Alcoholic Drinks Association) to be 15.88%.
Immediate next steps and timeline
EU manufacturers and/or exporters interested in participating in the investigation, must register with MOFCOM by 25 January 2024. During the registration, the applicants are required to report the quantities and values of the subject exports.
This will be followed by a more comprehensive investigation, which will involve selected applicants responding to MOFCOM’s investigation questionnaire, onsite verifications by MOFCOM, as well as participation by the interested parties in submitting comments and rebuttals and attending a hearing.
The final antidumping duty rates are anticipated to be announced within 12 months (with a possible extension of 6 months) from the investigation initiation and will remain effective for at least 5 years. MOFCOM may also impose provisional antidumping duties in the interim, which can take effect any time after 60 days of the investigation initiation.