China will impose provisional countervailing duty deposits ranging from 21.9% to 42.7% on certain dairy products imported from the European Union (EU) starting Tuesday (December 23). The relevant countervailing investigation has been ongoing for more than a year.

China’s Ministry of Commerce (MOFCOM) announced on its official website on Monday (December 22) that the investigating authority has preliminarily determined that imported dairy products originating from the EU receive subsidies, that China’s domestic dairy industry has suffered material injury, and that there is a causal link between the subsidies and the material injury.

The announcement stated that starting Tuesday, provisional countervailing measures will be implemented on relevant imported dairy products originating from the EU in the form of provisional countervailing duty deposits.

A responsible person from MOFCOM’s Bureau of Trade Remedy Investigation said in a Q&A with reporters that based on questionnaire information submitted by the European Commission and sampled companies, as well as on-site verification results, the preliminary ruling sets tax rates of 21.9% to 42.7% for sampled companies, a unified rate of 28.6% for other EU companies that cooperated in the investigation, and 42.7% for other EU companies that did not cooperate.

The responsible person noted that China has always used trade remedy measures prudently and restrainedly. Since the beginning of this year, China has not initiated any new trade remedy investigations against the EU, and has only issued final rulings on three anti-dumping cases involving brandy, copolymerized polyoxymethylene, and pork.

According to the ad valorem subsidy rate list released by MOFCOM, among EU enterprises, Italy’s Sterilgarda Alimenti SpA has the lowest tax rate at 21.9%, while FrieslandCampina Belgium NV and FrieslandCampina Netherlands BV have the highest rate at 42.7%.

The list also shows that more than 10 French companies will be subject to a 29.7% tax rate, while approximately 50 other enterprises from Italy, France, Germany, and other countries will face a 28.6% rate.

According to Reuters reports, Chinese customs data indicates that the EU is China’s second-largest source of dairy products, after New Zealand.

2023 data shows that China is the EU’s second-largest export destination for skimmed milk powder, and the fourth-largest for butter and whole milk powder.

The European Commission, which oversees EU trade policy, launched a countervailing investigation into Chinese-made electric vehicles in 2023, escalating trade tensions between China and the EU.

China will impose provisional countervailing duty deposits ranging from 21.9% to 42.7% on certain dairy products imported from the European Union (EU) starting Tuesday (December 23). The relevant countervailing investigation has been ongoing for more than a year.

China’s Ministry of Commerce (MOFCOM) announced on its official website on Monday (December 22) that the investigating authority has preliminarily determined that imported dairy products originating from the EU receive subsidies, that China’s domestic dairy industry has suffered material injury, and that there is a causal link between the subsidies and the material injury.

The announcement stated that starting Tuesday, provisional countervailing measures will be implemented on relevant imported dairy products originating from the EU in the form of provisional countervailing duty deposits.

A responsible person from MOFCOM’s Bureau of Trade Remedy Investigation said in a Q&A with reporters that based on questionnaire information submitted by the European Commission and sampled companies, as well as on-site verification results, the preliminary ruling sets tax rates of 21.9% to 42.7% for sampled companies, a unified rate of 28.6% for other EU companies that cooperated in the investigation, and 42.7% for other EU companies that did not cooperate.

The responsible person noted that China has always used trade remedy measures prudently and restrainedly. Since the beginning of this year, China has not initiated any new trade remedy investigations against the EU, and has only issued final rulings on three anti-dumping cases involving brandy, copolymerized polyoxymethylene, and pork.

According to the ad valorem subsidy rate list released by MOFCOM, among EU enterprises, Italy’s Sterilgarda Alimenti SpA has the lowest tax rate at 21.9%, while FrieslandCampina Belgium NV and FrieslandCampina Netherlands BV have the highest rate at 42.7%.

The list also shows that more than 10 French companies will be subject to a 29.7% tax rate, while approximately 50 other enterprises from Italy, France, Germany, and other countries will face a 28.6% rate.

According to Reuters reports, Chinese customs data indicates that the EU is China’s second-largest source of dairy products, after New Zealand.

2023 data shows that China is the EU’s second-largest export destination for skimmed milk powder, and the fourth-largest for butter and whole milk powder.

The European Commission, which oversees EU trade policy, launched a countervailing investigation into Chinese-made electric vehicles in 2023, escalating trade tensions between China and the EU.