Call for formal delay of China’s anti-dumping inquiry
The Bureau National Interprofessionnel du Cognac (BNIC) is calling on China’s authorities to formally extend its anti-dumping investigation into brandy imports until 5 July.
China’s Ministry of Commerce (MOFCOM) originally launched an investigation into brandy imports from the European Union (EU) on 5 January 2024. It was due to last one year but was extended in January by three months (until 5 April).
Under this investigation, taxes have been imposed on brandy imports in China since last October, the BNIC noted.
The BNIC issued a statement yesterday (31 March) following minister for Europe and foreign affairs of France Jean-Noël Barrot’s visit to China last week (27-28 March).
Reports by Bloomberg and Reuters indicate that Barrot told journalists during his visit that the investigation’s deadline will be delayed again.
The BNIC said it had been informed of two developments regarding the anti-dumping investigation, including the announcement by the Chinese authorities that definitive duties will not be imposed on 5 April.
The trade group said this move “potentially opens the door to another extension of the investigation” until 5 July.
Furthermore, the BNIC noted that there was mention of the possibility of selling Cognac currently stored in Chinese ports through the duty free channel.
The BNIC noted that these announcements are “positive” for the industry as it shows China’s “willingness to engage in dialogue” with the French government.
February shipments plunge 72%
But the BNIC warned: “However, in substance, these developments do not alter the situation for Cognac exporters, who have been subjected to provisional taxes in China since last October.
“For Cognac alone, these taxes have effectively excluded them from their second-largest market, resulting in a 72% drop in shipments, particularly for the month of February 2025 alone.
“We understand that following this visit, which we commend, discussions will continue at a technical level to clarify the scope of the announcements and how they will be implemented. We await the clarifications that will emerge.”
The BNIC noted the importance of securing a formal three-month extension of the investigation.
‘Unjust and unfounded procedure’
The trade association continued: “This additional period must be used to find a diplomatic solution to remove our industry from this economic dispute, to which it is entirely unrelated, and which currently threatens to plunge it into a devastating and historic economic and social crisis.
“The high-level Franco-Chinese dialogue scheduled for May 15, 2025, must in any case be dedicated to this progress and confirm the visit of our prime minister to China to finalise the anticipated agreement that will bring an end to this unjust and unfounded procedure.”
In February, the BNIC revealed that exports of Cognac fell by 10.6% in value last year due to a decline for VSOP and XO expressions in the wake of China’s anti-dumping investigation.
The largest producers of Cognac have seen their sales tumble over the past 12 months.
French firm Rémy Cointreau saw organic sales fall by 17.8% in the first nine months of 2024-25, with Cognac sales down by 19%.
Sales of Martell Cognac plunged by 25% during Pernod Ricard’s first-half financial results, contributing to around 90% of the group’s total net sales decline.
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