After the European Union approved the introduction of tariffs on imported electric vehicles from China on October 4, 2024, China is now threatening to impose customs duties on European brandy, requiring a customs deposit from European importers. “Starting October 11, 2024, importers must present the corresponding deposit to the customs authorities of the People's Republic of China when importing brandy from the European Union,” the Chinese Ministry of Commerce announced on October 8, 2024, according to French media reports.
China vs. Cognac
The measures primarily affect brandies from the French region of Cognac. Martell Cognac (Pernod Ricard) will incur a surcharge of 30.6%, while Rémy Martin (Rémy Cointreau) will face 38.1%, and Hennessy Cognac (LVMH) will be charged 39%. The Bureau National Interprofessionnel du Cognac (BNIC) stated in a release that they feel “sacrificed” in this context, as Cognac accounts for 95% of European brandy imports into China.
Further discussions between the government and the Armagnac and Cognac industries were planned for October 14, which will also include the new French Minister of Agriculture, Annie Genevard. The EU Commission announced its intention to take the matter back to the World Trade Organization, as Commission spokesperson Olaf Gill stated, to “defend EU industry against the misuse of trade instruments.” MM
