Detailed explanation of Australian wine tariffs and consumption taxes

The following is a detailed analysis of the tariffs and consumption taxes on Australian wines in the Chinese market, which is compiled in combination with the latest policy dynamics and tax framework for reference:

I. China’s tariff policy on Australian wines

1. Most-Favoured-Nation Tariff Rate (MFN)
   Current rate: 14% (HS code for wine is 2204.21.00).

Applicable conditions: Since March 2021, China has imposed anti-dumping duties on wines originating in Australia (tax rates as high as 116.2%-218.4%), and the actual tariff costs have risen sharply. Previously, Australian wines enjoyed zero tariff preferences under the China-Australia Free Trade Agreement (ChAFTA) (effective since 2019).

2. Anti-dumping and countervailing duties
   Anti-dumping duties: 116.2%-218.4% (effective from March 28, 2021, for a period of 5 years).

Countervailing duties: 6.3%-6.4% (implemented at the same time).

Impact: The actual combined tax rate may exceed 200% after superposition, resulting in a significant decline in the competitiveness of Australian wine in the Chinese market.

3. Policy dynamics
   In March 2024, China’s Ministry of Commerce announced the termination of the “double anti-dumping” investigation on Australian wine. It is expected that tariffs will gradually return to the most-favored-nation rate (14%) or lower in the future. The specific timetable is subject to official confirmation.
4. Consumption tax on imported wine in China
   Regardless of the country of origin, imported wine is subject to the following taxes and fees:
5. Consumption tax
   Tax rate: 10% (ad valorem).

Tax calculation basis: (duty-paid price + tariff) ÷ (1 – consumption tax rate).

2. Value-added tax
   Tax rate: 13% (current in 2023).

Tax calculation basis: (duty-paid price + tariff + consumption tax) × 13%.

3. Example calculation of comprehensive tax burden
   Assuming that the CIF price of a bottle of Australian wine is RMB 100 (the tariff is temporarily calculated at 14%, excluding “double anti-dumping” taxes):

Tariff: 100 × 14% = 14 yuan

Consumption tax: (100 + 14) ÷ (1 – 10%) × 10% = 12.67 yuan

Value-added tax: (100 + 14 + 12.67) × 13% = 16.47 yuan

Total tax: 14 + 12.67 + 16.47 = 43.14 yuan (comprehensive tax burden is about 43.14%).

III. Wine tax system in Australia

1. Wine equalization tax (WET)
   Tax rate: 29% (for wholesale sales price).

Exemption conditions: Small producers with annual sales of less than A$350,000 can apply for tax refund.

2. Goods and Services Tax (GST)
   Tax rate: 10% (levied at the retail stage).
3. Tariffs
   Australia imposes a tariff of about 5% on imported wine (which may be reduced under the FTA, such as the China-Australia Free Trade Agreement tariff rate for Chinese wine).

IV. Key points
China policy changes: If the “double-reverse” tax is abolished, the Australian wine tariff will return to 14% or lower, and you need to pay close attention to official announcements.

Free Trade Agreement: The long-term tariff preferences of the China-Australia Free Trade Agreement (ChAFTA) may be restored, but further negotiations between the two sides are required.

Tax compliance: Importers need to accurately declare the duty-paid price to avoid an increase in tax burden caused by the price determined by the customs.

5. Data Source and Reference
   China’s Ministry of Commerce “Announcement on the Final Determination of the Anti-dumping Investigation on Imported Wines Originating in Australia” (2021)

Australian Taxation Office (ATO) WET Policy Document

China Customs HS Code Tax Rate Query (2204.21.00)

If you need further assistance or specific case calculations, it is recommended to consult a professional customs declaration agency or tax consultant.