From November 28, the Ministry of Commerce requires Australian wine importers to pay a deposit of 1 to 2 times the customs duty-paid value. Has the good days of Australian wine in China come to an end? This article is from the WeChat official account:Finance Eleven (ID: caijingEleven ), author: Ma Lin, editor: Yu Le, the original title: “China anti-dumping measures on Australian wine, liquor price increases inevitable,” head Figure from: vision China
On November 27, the Ministry of Commerce issued a preliminary ruling on the anti-dumping investigation of imported Australian wine, which determined that there is dumping of imported Australian wine. Provisional anti-dumping measures will be implemented on November 28: importers will be required to pay customs value 1~2 Times the deposit, and the amount of the deposit must be included in the import value-added tax rate.
The picture is cut from the official website of the Ministry of Commerce
A number of importers and exporters of Australian wine told the Caijing reporter that this measure means that importers will occupy more funds, and Australian wine will increase in price and lose its price advantage. If anti-dumping measures are implemented for a long time, importers and distributors of Australian wine will also decrease, and small wineries may completely lose the Chinese market.
“Small and medium importers will inevitably reduce the scale of Australian imports, and large wine companies such as Fuyi and Swan will inevitably be affected. “A Chinese exporter of Australian wine said.
In the past five years, Australian wine has enjoyed a good trading environment in China, with import tariffs decreasing year by year, and in 2019 it will receive zero tariff treatment. Thanks to this, the market share of Australian wine in China has increased year by year, and it surpassed French wine in 2019 to become the number one wine in the Chinese market.
The export of Australian wine is highly dependent on the Chinese market. According to data from the Wine Australia (Wine Australia), Australia’s wine exports to mainland China in 2019 totaled 1.28 billion Australian dollars.(about 6.4 billion yuan), accounting for 44% of its total wine exports.
The database of the China Business Industry Research Institute shows that China’s top ten wine import sources in 2019 are Australia, France, Chile, Italy, Spain, the United States, Argentina, Portugal, South Africa, and Germany. Among them, Australian wine accounted for 35% of China’s total wine imports, French wine accounted for 29%, and Chilean wine accounted for 14%.
However, this year, China-Australia relations have continued to be tense. Earlier, foreign media reported that China has delayed or suspended imports of Australian commodities such as lobster and timber.
The anti-dumping investigation on Australian wine began on July 6 this year, when the China Wine Industry Association filed an application for an anti-dumping investigation on Australian wine with the Ministry of Commerce. At present, the Ministry of Commerce has another anti-subsidy investigation on Australian wine in progress.
Since the beginning of November, there have been news that China will ban the import of Australian wine. At that time, some practitioners told Caijing reporters that red wine imported from Australia was facing “difficulty in customs clearance”. They received verbal notifications and customs clearance time. It will become longer, or the contract must be terminated, red wine will be shipped to other countries, etc. The preliminary anti-dumping ruling means that “boots are temporarily landing”, and practitioners are more worried that there will be penalties for imposing tariffs.
1. How much will the preliminary anti-dumping ruling affect?
According to the preliminary determination of the Ministry of Commerce: “There is dumping of imported wines originating in Australia, the domestic wine industry has suffered substantial damage, and there is a causal relationship between dumping and material damage.”
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