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USA Duties: FEVS waits for answers from the French Government

18/10/2019

Bourgogne Wines are concerned by the new 25% taxe on the value of each bottle

This new taxe is due to the decision of the US authorities to impose compensation measures in the context of their dispute with the European Union in the aeronautical sector. Deploring the effective entry into force of these customs duties, the FEVS calls on the government to immediately introduce the necessary support measures for the sector and its companies.

"We are the collateral victims of a conflict that is not our own" reminds Antoine Leccia, President of the FEVS. "We regret that to this point the European Union and the United States have not yet reached an agreement that would have avoided this situation". The United States is our biggest export customer and represents nearly 20 % of our total wine exports.

More than 4,500 French wine exporting companies are now directly impacted by 25% additional customs duties.

For Antoine Leccia, President of the FEVS, "this taxation will lead to a price increase of more than 30 % for the US consumer. At the same time, our competitors will not be affected by this cost increase in their product. Therefore, there is a major risk of loss of market share for French wines. Beyond exporters, the entire French wine sector is now weakened”. In response to this threat, we repeat our request to the government to urgently adopt concrete measures to support the sector and its companies, to offset the arbitrary damage suffered by our sector. These decisions must be taken quickly because our companies are now facing a major risk of... finish your reading.

 

Technical information

  • USA is also the first market for Bourgogne wines. They imported 17.3 million bottles in 2018, for an income of nearly 212 million euros.
  • 25% tariffs apply to the value of the products upon customs clearance. • These duties apply to still wines exported in containers of 2 liters or less and with an alcohol content of 14 %.
  • In 2018, the turnover generated by these products on the American market amounted to one billion euros for nearly 14 million 9-litre cases. Over the first six months of 2019, these exports increased by 10% in value and 2% in volume.
  • Still wine above 14 % of alcohol content, wine packaged in bulk and sparkling wine are not affected by this measure.
  • Behind Italy, France is the second largest European supplier to the United States of still wine with a container capacity of less than 2 liters.
  • French products constitute 40% of European exports, which amounted to €2.6 billion in 2018.
  • US tariffs on products subject to these measures remain at 0.063 USD/Liter. 

 

* Still wines: as opposed to sparkling wines that are not concerned as well as French wines over 14% alcohol and in bottles over 2 liters.

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