The Chinese Ministry of Commerce announced on Thursday, August 29, its intention to impose a surcharge on European cognac of more than 30%. However, the provisional customs duties will not be applied for the time being. A decision that leaves French producers in uncertainty.
This Thursday, Beijing has caused a stir in the cognac industry by announcing that it could impose a surcharge on European exports of this famous brandy. Accusing producers of practicing unfair margins of up to 39%, the Chinese Ministry of Commerce (Mofcom) has declared itself entitled to take severe measures following its anti-dumping investigation, reports Southwest.
An appeal to the government
The announcement did not fail to shake the sector, provoking an immediate reaction from the financial markets, where shares of cognac giants such as Pernod Ricard and Rémy Cointreau briefly rose.
The National Interprofessional Cognac Bureau (BNIC) quickly expressed its incomprehension, recalling the producers’ full cooperation with the Chinese authorities throughout the investigation. “We had demonstrated the transparency of our practices,” the BNIC stressed in its press release, while expressing its fear that the final duties could reach an average of 34.8%.
Faced with this delicate situation, industry players, including the BNIC, the National Interprofessional Bureau of Armagnac (BNIA) and the Federation of Wine and Spirit Exporters of France (FEVS), have called for a rapid response from the French and European authorities. They insist that this case, which they consider highly political, must be resolved as soon as possible to avoid serious repercussions on the sector.
