On 1st July 2013, China’s Ministry of Commerce (MOFCOM) released two announcements on Case-filing for Anti-dumping (No. 36/2013) and Countervailing Investigation Against Wines (No. 37/2013). It was revealed that such a “double anti” investigation was the result of a formal request by the China Alcoholic Drinks Association.
Expected to last for much of the next year, the double investigation covers wines originally produced in EU and exported to China, specifically “fermented alcoholic drinks with certain contents of alcohol that use fresh grapes or grape juice as materials and are made by total or partial fermentation” under the tariff numbers 22041000, 22042100 and 22042900. The period under investigation is 1st January 2012 to 31st December 2012, while for work related injuries in the EU wine industry is 1st January 2009 to 31st December 2012. As for anti-subsidy investigation, MOFCOM announced that the investigation will cover sonly 15 out of the current 20 EU subsidy programs for the wine industry, such as Promotion on Third-country Markets or Export Refund.
Any party interested in wine export to China could participate in the investigation by submitting applications to the Bureau of Fair Trade for Import and Export, which is in charge of the double anti investigation, and the Bureau of Industry Injury Investigation, which handles the investigation of work related injuries within 20 days from the release date of the announcements (July 20th 2013). The total quantity and price of wines imported from the EU to China between 1st January and 31st December 2012 should be indicated. The investigation consists of samplings, hearings, on-site verification and/or a questionnaire relating to the organization of the company and its products, domestic and export sales, productions costs etc.
It is widely guessed that the double anti investigations is China’s retaliatory policy after the EU increased tariffs on the import of Chinese solar panels. Wile it is also quite logical and reasonable to link the follow up of the two cases, it is still unclear whether the double anti investigations will lead any penalty in future, it is believed that there is still room for negotiation between China and EU because of the huge market volume in China, for example wine from France to China alone totaled 170 million liters last year. Hence China may gain some leverage in this dangerous game.
No matter what happens when the double anti investigation is completed, the China wines market witnessed a sales increase in the week that followed the double anti investigation announcement as well as price increase, especially for EU wines. The price of such in the Chinese market may keep on rising as the influence of the double anti investigation takes foot in the near future, so as an EU wine hobbyist, will you start to stockpile your favourites, or sample wines from south America, Australia or even China?
This article is intended solely for informational purposes and does not constitute legal advice. Although the information in this article was obtained from reliable official sources, no guarantee is made with regard to its accuracy and completeness. For more information please visit dandreapartners.com or WeChat: dandreapartners.
