Ministry of Commerce: Temporary countervailing measures against imports of dairy products originating in the European Union will be implemented from December 23

The Zhitong Finance App learned that on December 22, the Ministry of Commerce announced that the investigation authorities initially determined that there were subsidies for imported dairy products originating in the European Union, that the relevant dairy industry in China had suffered material damage, and that there was a causal relationship between subsidies and material damage. From December 23, 2025, temporary countervailing measures will be imposed on imported dairy products originating in the European Union in the form of temporary countervailing duty guarantees. Based on questionnaire information submitted by the European Commission and sample companies and on-site inspections, the Ministry of Commerce initially determined that the tax rate for the sampled companies was 21.9%-42.7%, the uniform applicable tax rate for other EU companies cooperating with the survey was 28.6%, and 42.7% for other EU companies that did not cooperate with the survey.

The original text is as follows:

Ministry of Commerce Notice No. 83 of 2025 announced the preliminary ruling on the countervailing investigation against imports of dairy products originating in the European Union

According to 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 Investigative Authority) issued Notice No. 34 of 2024, deciding to open a countervailing investigation against imported dairy products originating in the European Union (hereinafter referred to as the products under investigation).

The investigation authorities investigated whether the products under investigation had subsidies and the amount of subsidies, whether the investigated products caused damage to the domestic industry and the extent of damage, and the causal relationship between subsidies and damage. Based on the findings of the investigation and the provisions of Article 25 of the Countervailing Regulations, the investigating authority made a preliminary ruling. The relevant matters are hereby announced as follows:

I. Preliminary Rulings

The investigation authorities initially determined that there were subsidies for imported dairy products originating in the European Union, that the relevant dairy industry in China had suffered substantial damage, and that there was a causal relationship between subsidies and material damage.

II. Interim Countervailing Measures

According to the provisions of Article 29 and Article 30 of the Countervailing Regulations, the Ministry of Commerce proposed to the Customs Tariff Commission of the State Council the adoption of temporary countervailing measures against imported dairy products originating in the European Union. The Customs Tariff Commission of the State Council made a decision on the recommendation of the Ministry of Commerce. Starting December 23, 2025, temporary countervailing measures will be imposed on imported dairy products originating in the European Union in the form of temporary countervailing duty guarantees.

When importing the product under investigation, the import operator shall provide corresponding temporary countervailing duty guarantees to the Customs of the People's Republic of China in accordance with the ad valorem subsidy rate of each company determined in this preliminary ruling.

The specific description of the surveyed products is as follows:

Scope of investigation: Imported dairy products originating in the European Union.

Product name investigated: Related dairy products.

English name: certain dairy products.

Product description: Relevant dairy products specifically include fresh cheese (including whey cheese) and curds, processed cheese (whether grated or not ground), blue cheese and other textured cheeses produced by Penicillium loudi, other unlisted cheeses, unconcentrated and unsweetened milk and cream with no added sugar or other sweeteners (more than 10% fat by weight).

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

This product falls under the “Import and Export Tariff Rules of the People's Republic of China”: 04015000, 04061000, 04062000, 04063000, 04064000, 04069000.

III. Method for collecting temporary countervailing duty bonds

Starting from December 23, 2025, import operators shall provide corresponding temporary countervailing duty guarantees to the Customs of the People's Republic of China when importing relevant dairy products originating in the European Union in accordance with the ad valorem subsidy rate of each company determined in this preliminary ruling. The temporary countervailing duty deposit is calculated based on the ad valorem value of the taxable price determined by the customs. The calculation formula is: the amount of the temporary countervailing duty deposit = the taxable price determined by the customs x the temporary countervailing duty guarantee ratio. Value-added tax guarantees in the import process are calculated on the taxable price determined by the customs service plus customs and temporary countervailing duty guarantees as ad valorem of the taxable price.

IV. COMMENTS

Each interested party may submit written comments to the investigation authority within 10 days from the date of publication of this notice.

The head of the Trade Remedies Investigation Bureau of the Ministry of Commerce answers reporters' questions about the preliminary ruling on the countervailing investigation against imported dairy products originating in the European Union

Q: We have noticed that the Ministry of Commerce announced the preliminary ruling on the countervailing investigation against imported dairy products originating in the European Union and decided to adopt temporary countervailing measures. Can you give details about the investigation?

A: In response to an application from the domestic industry, the Ministry of Commerce initiated a countervailing investigation against imported dairy products originating in the European Union on August 21, 2024. On August 18, 2025, the Ministry of Commerce issued an extension notice to extend the investigation period of the case until February 21, 2026.

After the case was filed, the investigation authorities carried out the investigation in an open and transparent manner through various methods and procedures in accordance with the law, including issuing questionnaires and supplementary questionnaires, listening to comments, holding hearings, on-site inspections of the EU and its member governments and sample enterprises, and field investigations of domestic enterprises in China, etc., which fully guaranteed the rights of all stakeholders.

After more than a year of careful investigation, preliminary evidence shows that the EU has provided a large amount of subsidies to agricultural sectors such as the dairy and dairy industry through subsidy programs such as the Common Agricultural Policy. During the investigation period, China's domestic industry was affected by imports of EU subsidized products. Inventories continued to increase, profits changed from profits to losses, and production and operation difficulties occurred. The investigation authorities initially believe that there are subsidies for dairy products related to the European Union, that China's domestic industry has been substantially damaged, and that a causal relationship between the two has been established. Based on this, the Ministry of Commerce issued a preliminary ruling notice on December 22, 2025, deciding to implement temporary countervailing measures.

Based on questionnaire information submitted by the European Commission and sample companies and on-site inspections, we initially determined that the tax rate for the sampled companies was 21.9%-42.7%, the uniform applicable tax rate for other EU companies cooperating with the survey was 28.6%, and 42.7% for other EU companies that did not cooperate with the survey.

I would like to repeat that China has always been cautious and restrained in the use of trade remedy measures. Since 2025, China has not initiated any new trade remedy investigations against the European side; it has only handed down final rulings on 3 anti-dumping cases involving brandy, copolymer formaldehyde, and pork. However, in the same period, the European Union has already initially levied taxes on 18 trade remedy cases against China, finally levied taxes on 18 cases, and initiated 15 trade remedy investigations. In just one day last Friday (December 19), it initiated 3 new investigations against China. China's position against misuse of trade remedy measures remains unchanged. It is also willing to properly handle trade frictions and jointly maintain the overall economic and trade cooperation between China and Europe through dialogue and consultation.

In the next step, we will continue to carry out follow-up investigations in strict accordance with relevant Chinese laws and regulations and WTO rules, and make final rulings based on the principles of fairness, impartiality, openness and transparency to fully guarantee the rights of all stakeholders.

This article was selected from the “Ministry of Commerce” official website, Zhitong Finance Editor: Jiang Yuanhua.