Since 2008, Hong Kong has eliminated tariffs on wine, a decision that has transformed the local alcoholic beverage market and attracted international exports, solidifying its position as a key hub for wine trade in Asia and facilitating major events such as Vinexpo Asia, which returned to Hong Kong this May after a pandemic-induced hiatus. The event attracted over 14,000 industry visitors from 60 countries, with the participation of 1,032 producers from 35 countries.
Hong Kong's wine market saw significant growth after the elimination of tariffs, but it currently faces important economic and demographic challenges such as economic slowdown and expatriate exodus, along with an increase in cross-border purchases. However, there are some positive signs, such as the increase in exports of Burgundy wines, which reached a new sales record in 2023.
Tariffs in Hong Kong
Unlike wine, spirits with an alcohol content higher than 30% are subject to a 100% tariff, a rate that applies to both imported and local products. Beverages with an alcohol content below 30% are not subject to tariffs. This tariff structure aims to keep Hong Kong competitive as an international trade hub for wine.
Currently, some news indicate that Hong Kong is widely considering the possibility of removing or reducing the 100% tariff on spirits to further support the local market and attract more investments. These discussions are still in the preliminary phase but should be closely monitored to see how they develop.
In March 2024, China removed the punitive tariffs on Australian wines imposed during a diplomatic dispute that began in 2020. These tariffs, which reached up to 218%, had severely impacted Australian exports to China, leading to impressive growth rates after their removal, with an increase of 633.76% in volume and an extraordinary 1730.15% in value.
Future Prospects
The possible abolition or reduction of tariffs on spirits in Hong Kong represents a significant opportunity for Italy, with the potential to increase exports and strengthen trade relations with the Asian market. However, Italian companies must be ready to adapt quickly to changes to make the most of this opportunity, which will nevertheless fuel international competition.
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