Cognac Blocked From Duty-Free Channels in China in Tariff Battle
By and Angelina Rascouet
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Cognac producers are being blocked from distributing the French brandy through duty-free channels in China, in an apparent escalation of the tariff battle between Beijing and the European Union.
The three biggest Cognac makers — Pernod Ricard SA, Remy Cointreau SA and LVMH 's Hennessy — have been unable to restock duty-free travel hubs across China since early December, according to people familiar with the matter. The Chinese customs' online platform through which duty-free outlets usually clear goods no longer allows Cognac to be processed, leaving stock sitting in bonded warehouses in the mainland, the people said, declining to be identified since the information is not public.
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