China lowers import tariffs on Scotch whisky

China has agreed to trim import tariffs connected UK whiskies, including Scotch, pursuing sojourn from the UK Prime Minister Keir Starmer to Beijing this week.

A connection contiguous (30 January) the Chinese Ministry of Commerce said "a provisional import tariff complaint of 5% volition beryllium applied to whisky" arsenic of Monday (2 February).

A property merchandise from the UK authorities said tariffs were being reduced connected Scotch from 10 to 5%.

Just Drinks understands nevertheless a tariff simplification is being applied by China to each whiskies produced successful the UK. It does not see different exports.

In its statement, the Government said it expected the woody to bring successful £250m ($344.4m) to the UK system successful the adjacent 5 years.

It added the determination "will assistance Scottish distillers vie much efficaciously successful 1 of the world’s fastest-growing user markets".

China was the tenth-largest marketplace for Scotch whisky successful worth presumption successful 2024 according to the Scotch Whisky Association. Scotch exports to the state reached £161m successful worth that year, a 31.5% diminution connected 2023.

Compared to 2019 figures however, Scotch export income person grown 81.4%, the SWA says.

Mark Kent, the SWA's main executive, said: "China is simply a precedence maturation marketplace for galore Scotch whisky producers, which successful caller decades has developed into a knowledgeable and premium focused marketplace with a beardown appreciation of Scotch. The projected tariff simplification from 10% to 5% has the imaginable to re-energise exports of Scotch to this important market.

China was besides the tenth largest marketplace for Scotch successful 2024 successful presumption of volumes. That year, it saw volumes dip 1.7% to 30 cardinal bottles. Export volumes to China person risen 77.3% since 2019, according to SWA data.

Stephen Davies, the CEO of Welsh whisky radical Penderyn Distillery, besides reflected connected the tariff statement with China. "Penderyn has done a batch of concern successful China implicit the past fewer years although, implicit the past 12 months successful particular, trading has been precise difficult.

"We invited immoderate reductions successful the outgo of trading for our home oregon export markets, truthful from that constituent of presumption it's bully news, though I judge it volition instrumentality rather a portion for the marketplace for whiskies successful China to amended and possibly get backmost to the levels they were astatine possibly 2 years ago."

Just Drinks has besides approached the English Whisky Guild for comment.

In May past year, the UK besides signed a commercialized woody with India, cutting tariffs connected whisky, gin and brushed drinks entering the country. The statement was signed by some parties successful July.

The statement sees whisky and gin tariffs halved to 75% from 150%, aboriginal falling to 40% by “year ten” of the deal, the UK’s Department of Business and Trade said successful a connection astatine the time.