USA – The US Department of Commerce (DoC) has accused glass wine bottle producers from China, Chile, and Mexico of unfairly low pricing, “dumping,” which could lead to significant tariffs.  

According to Just Drinks, the DoC’s preliminary determination suggests steep anti-dumping duty rates for these countries, with up to 218.15 percent for Chinese importers, 173.91 percent for Chilean producers, and 96.95 percent for Mexican manufacturers. 

The investigation, initiated in January following a petition from the US Glass Producers Coalition, aims to address concerns that foreign producers are undermining the US glass industry by selling bottles below fair market value.  

“These preliminarily duty rates are an important start to the relief that the US glass industry needs to compete fairly against dumped imports,” said Daniel B. Pickard, lead counsel to the petitioner and International Trade and National Security practice group leader at Buchanan Ingersoll & Rooney.  

He emphasized the need for thorough auditing and enforcement of US trade laws. 

As part of its preliminary ruling, the Department of Commerce has instructed US Customs authorities to start collecting cash deposits on glass wine bottles imported from these countries.  

The final determination of the investigation is expected by December, with the possibility of duty rates being adjusted higher if the violations are found to be more severe. 

The preliminary findings also include retroactive cash deposit requirements for imports over the past 90 days.  

Chinese suppliers linked to the Chinese government could face even higher liabilities, with rates up to 207.5 percent. A final determination is due by January 30, 2025. 

This development comes amid a challenging period for the US wine and spirits market. 

The Wine & Spirits Wholesalers of America’s (WSWA) SipSource data service report revealed uneven growth in the market from July 2023 to June 2024.  

While segments like reposado tequila and premix cocktails have performed well, the broader wine market continues to struggle.  

Notably, 54.3 percent of table wine is sold for less than US$8 per bottle, which has been detrimental to the overall market performance. 

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