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📦 Effervescent wine

Effervescent wine

HS Code:

📦

Overview

Effervescent wine, classified under HS Code 2204.10, includes sparkling wines such as Champagne, Prosecco, and Cava. These wines are characterized by their carbonation, which can be natural (via secondary fermentation) or artificial. This category is a significant segment of the global wine market, often associated with celebrations and luxury consumption. The trade of effervescent wine is driven by cultural preferences, production expertise, and branding, with major production hubs in Europe.

Total Trade Volume

USD 7.2 billion

Data from 2022

Source

International Trade Centre (ITC) Trade Map

Tariff Analysis

Average Rate

8.5%

Highest Rate

35% (applied by certain Asian markets)

Lowest Rate

0% (under EU free trade agreements)

Common Restrictions

  • Import quotas in some Asian countries
  • Labeling requirements for origin and alcohol content
  • Health and safety certifications
  • High excise duties in certain markets

Market Trends

Rising demand for affordable sparkling wines

Increased market share for Prosecco and Cava over traditional Champagne due to competitive pricing

2021-2022

Growth in emerging markets

Countries like China and India showing higher import volumes due to growing middle-class consumption

2020-2022

Sustainability focus

Producers adopting eco-friendly packaging and organic production methods to appeal to environmentally conscious consumers

2022

Recent Developments

EU-China Trade Agreement Update

Negotiations to reduce tariffs on EU effervescent wines exported to China have progressed, potentially lowering the current 14% tariff rate.

June 2023

Could boost exports from Italy, France, and Spain to China, increasing trade volume by an estimated 10%.

US Tariffs on European Wines Suspended

The US and EU reached an agreement to suspend retaliatory tariffs on European wines, including effervescent varieties, as part of a broader trade dispute resolution.

March 2023

Expected to stabilize export revenues for European producers, particularly benefiting France and Italy.

Prosecco DOCG Protection Enhanced

Italy successfully lobbied for stronger international protection of the Prosecco name, limiting the use of the term to wines produced in specific regions.

September 2023

Strengthens brand value and market position of Italian effervescent wines against imitators.