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China Formally Imposes Five-Year Anti-Dumping Tax on Australian Wine

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The China Ministry of Commerce has imposed a five-year tax on Australian wines formalizing curbs that have existed for months and caused tension between Beijing and Canberra. 

From March 28, it imposed anti-dumping duties on imported Australian wines in containers of two liters or less. Varying from producer to producer, anti-dumping duties of 116.2% to 218.4% are now being levied.

The ministry justified its actions saying the dumping of Australian wines had materially damaged the Chinese wine market.

To avoid double taxation, the Chinese authorities decided not to levy countervailing duties.

The formal move follows China’s Ministry of Commerce charging a deposit ranging from 107.1% to 212.1% last November. This was bolstered by a 6.3%-6.4% countervailing deposit added in December.

According to Wine Australia, 39% of the export value of Australian wine went to China in the year ending June 2020. Exports dropped following November’s temporary tariffs’ imposition contributing to an overall 2020 decrease of 14%.

The Australian sector has responded with calls to take the matter to the WTO. Some producers from down under are also looking to avoid the new levies with mass export of wines to China and bottling within the country.

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