Removing tariffs on Australian wine exports to China presents a new era of opportunities. Australian wine's re-entry into the Chinese market will benefit both the wine industries in Australia and China and Chinese consumers.

China was the largest export market for Australian wine, and Australia was the top wine origin for China in 2020, accounting for 40% of the imported wine value. However, the situation changed after China released anti-dumping and anti-subsidy tariffs of up to 218% in 2021, and this trade has been almost totally suspended. Until March 28, 2024, both industries raised their glasses to China's decision to lift the punitive tariffs and reopen the doors on this trade.

Market Changes
With Australian wine unavailable, Chinese consumers turned to other sources, leading to a shift in the microeconomy. The Chinese wine market softened, and domestic consumption was recovering from a downturn. Also, French, Chilean, and Italian wine took over the market share.

Australian wines consistently rank high with Chinese consumers, offering a balance of quality and affordability. Chinese importers are optimistic and excited to trade again. The industry expects the re-entry of Australian wine to boost the market and stimulate consumption for an upturn. Australian wine is the hope for market recovery.

Regulation Charges
The General Administration of Customs China (GACC) registration took effect on January 1, 2022. Food manufacturers and exporters must register with the GACC, and the GACC number must be labeled on the package and provided on import entry.

By the end of March 2024, only about 450 Australian wine companies registered GACC, and more companies registered after the announcement of tariff elimination to prepare for export to China.

Shipping and Logistics
Importers would factor industry challenges and market opportunities into their purchasing strategy, ordering big orders as before or placing small quantities frequently. Shipping route and transshipment are to be considered for FTA requirements to be entitled to preferential zero duty.

We look forward to supporting your business in getting Australian wines back onto Chinese dining tables and growing your wine business in this trade.

Wine is an ever-changing industry, especially in an emerging market like China. How can you navigate the market and regulation changes over the years and seize the re-entry opportunity to boost business? We are here to support you!