China extends anti-dumping probe into EU brandy

China’s Ministry of Commerce (MOFCOM) has extended its anti-dumping investigation into EU-origin brandy imports until April 5, 2025, citing the complexity of the case. The investigation, initiated on January 5, 2024, was initially scheduled to conclude by January 5, 2025.

In a preliminary assessment announced on August 29, 2024, MOFCOM concluded that EU-imported brandy involves dumping practices, posing a substantial threat to China’s domestic brandy industry. The report established a causal relationship between the dumping and damage.

To mitigate further harm, MOFCOM on November 11 declared that from November 15, importers of the investigated products must submit deposits or letters of guarantee to China’s customs authorities. These measures were based on dumping margins outlined in the announcement, which range from 30.6 percent to 39 percent, depending on the company.

Key companies and their margins include Martell with a margin ratio of 30.6 percent, Hennessy with a margin ratio of 39 percent, and Remy Martin having a margin ratio of 38.1 percent. Companies cooperating with the investigation face a 34.8 percent margin, while non-cooperative entities are subject to the highest rate of 39 percent margin.