Australia has done well to increase market share over the past few years in the face of increased competition, though still faces challenges from both new world countries such as Chile, (who have strong government sponsorship), New Zealand and the United States as well as old world countries such as France and Italy. In China The import tariff rate for wine in less than 2 litre packaging has been lowered from 65% to 14%.
At the beginning of 2008, the Hong Kong Government announced the elimination of import duties on wine. This policy was favourable in stimulating more high quality wines to enter China through Hong Kong. It also meant that imported wine became more competitive with the domestic product. A consumption tariff rate of 10% and a value added tax (VAT) rate of 17% are also imposed on imported and domestic wine.
Food Safety Regulations New Food Safety laws were enacted on 1 June 2009 and are applicable to both imported and domestically produced food. Wine producers are now required to indicate a lot number on the body of wine bottles.