CCTV News: According to the Ministry of Commerce, in accordance with the provisions of the "Countervailing Regulations of the People's Republic of China" (hereinafter referred to as the "Countervailing Regulations"), on August 21, 2024, the Ministry of Commerce (hereinafter referred to as the Investigation Agency) issued Announcement No. 34 of 2024, deciding to initiate a countervailing investigation into imported related dairy products originating in the EU (hereinafter referred to as the products under investigation).

The investigation agency investigated whether there were subsidies and the amount of subsidies for the products under investigation, whether the products under investigation caused damage to the domestic industry and the extent of the damage, and the causal relationship between the subsidies and the damage. Based on the investigation results and the provisions of Article 25 of the Countervailing Regulations, the investigation agency made a preliminary ruling (see Appendix 1). The relevant matters are now announced as follows:

1. Preliminary Ruling

The investigation agency has initially determined that there are subsidies for imported dairy products originating in the EU, and that China's domestic dairy industry has been substantially damaged, and that there is a causal relationship between the subsidies and the substantial damage.

2. Temporary Countervailing Measures

In accordance with the provisions of Articles 29 and 30 of the Countervailing Regulations, the Ministry of Commerce proposed to the Tariff Commission of the State Council to adopt temporary countervailing measures against imported dairy products originating in the EU. The Customs Tariff Commission of the State Council made a decision based on the recommendations of the Ministry of Commerce to implement temporary countervailing measures in the form of a temporary countervailing duty deposit on imported dairy products originating in the EU from December 23, 2025.

When importing products under investigation, import operators should provide corresponding temporary countervailing duty deposits to the Customs of the People's Republic of China based on the ad valorem subsidy rates of each company determined in this preliminary ruling.

The specific description of the products under investigation is as follows:

Scope of investigation: imported related dairy products originating in the EU.

Name of product under investigation: related dairy products.

English name: Certain dairy products.

Product description: Relevant dairy products specifically include fresh cheese (including ricotta cheese) and curds, processed cheese (whether or not grated or powdered), blue cheese and other textured cheeses produced by Penicillium londii, other unlisted cheeses, milk and cream (with a fat content of more than 10% by weight) that are not concentrated and have no sugar or other sweetening substances added.

Main uses: Mainly used as food directly or after processing for human consumption.

This product falls under the "Import and Export Tariffs of the People's Republic of China": 04015000, 04061000, 04062000, 04063000, 04064000, 04069000.

The ad valorem subsidy rates for EU companies are listed in Annex 2 of this announcement.

3. Methods for collecting temporary countervailing duty deposits

From December 23, 2025, when importing relevant dairy products originating in the EU, import operators should provide corresponding temporary countervailing duty deposits to the Customs of the People's Republic of China based on the ad valorem subsidy rate of each company determined in this preliminary ruling. The temporary countervailing duty deposit is levied ad valorem based on the taxable price of the imported goods determined by the customs. The calculation formula is: the amount of the temporary countervailing duty deposit = the taxable price of the imported goods determined by the customs × the ratio of the temporary countervailing duty deposit. The value-added tax deposit at the import stage is levied ad valorem based on the taxable price of the imported goods determined by the customs plus the customs duties and temporary countervailing duty deposit as the taxable price.