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AIRPORT VOICE, JANUARY 2021 23
Spirit of cooperation
has ended by 25%
U.S duty increase
EU liquor, luxury items targeted to
equalize tariffs against the U.S.
BY JEFF YAPALATER
The United States is again adjusting
tariffs on certain products imported
from the European Union (EU). The
U.S. was authorized in October 2019 to
impose additional duties on approximately
$7.5 billion in EU products as
a result of the WTO Large Civil Aircraft
litigation. The United States implemented
its authorized countermeasures
in a restrained way and used
trade data from the prior calendar year
to determine the amount of products to
be covered.
On 30 December 2020, the US Trade
Representative (USTR) announced
it will adjust tariffs on certain products
from the European Union (EU).
Approximately a billion dollars of imported
good are affected as of January
12, 2021. It is said that France’s new tax
on digital services is the reason for the
new retaliation by the government. In
addition to cognac and Armagnac, the
25% will also be levied against handbags,
make-up and other luxury items.
One day before the new tariff
against cognac was to begin, a large
shipment of 2500 cases of Cognac arrived
at JFK Airport logically to beat
the tariff increase. This shipment was
worth about $900,000 ad shipped to a
warehouse in New Jersey. Depending
on how one looks at it, the importer either
saved or made $225,000 by having
the goods pass customs before the date
of increase.
This increase is on top of 25% tariff
on single malt Scotch, single malt Irish
whiskey and liqueurs from the EU in
October 2019. Apparently they worked
since there was a 3-% plus declines in
Scotch and other liquors in 2019 compared
to the year before. In 2019, 15.1
million 9-liter cases of brandy and cognac,
worth about US$ 3 billion, sold in
the U.S.,
“We’re extremely disappointed that
the U.S. will impose more tariffs on additional
categories of imports of the EU.
instilled spirits, resulting from a trade
dispute wholly unrelated to our industry,”
says Robert Maron, vice president
for international trade at the Distilled
Spirits Council, a Washington, D.C.-
based organization that represents producers
and marketers of distilled spirits.
“These tariffs not only harm EU.
spirits producers, they also disrupt and
negatively impact the entire U.S. hospitality
industry supply chain.”
Trade group the Distilled Spirits
Council of the US (Discus) said: “These
tariffs not only harm EU spirits producers,
they also disrupt and negatively
impact the entire US hospitality
industry supply chain. Hospitality
businesses and our consumers, as well
as producers, wholesalers and importers
of distilled spirits are collateral
damage in a dispute wholly unrelated
to the drinks business. These tariffs
are continuing to have a devastating
impact on our businesses, which are
also suffering due to the closings of
restaurants, bars, and distillery tasting
rooms because of the Covid-19 pandemic.”
Pallets of Remy Martin arriving in NY.
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