Cork Exempt from U.S. Tariffs
Original article by Wine Business Monthly
The U.S. - EU “framework agreement” on trade that took effect last week exempts cork from the 15 percent tariffs on EU exports, a win for U.S. winemakers.
That positive news comes amid a backdrop of tariffs being imposed not only on imported wine and spirits, but on other winemaking supplies, including packaging items like wine bottles and French oak.
All cork stoppers were included on the Harmonized Tariff Schedule, or HTS - natural cork, one-on-ones, twin tops, sparkling corks, etc.
The exemption for cork was accomplished through concerted efforts involving a number of groups. The Natural Cork Council worked with the Portuguese Embassy and their economic attaché, and with agencies in Washington including AICEP, the Portuguese Trade and Investment Agency. On the other side of the Atlantic, APCOR, the Portuguese cork association, worked with negotiators from Portugal who were represented at EU headquarters who pushed EU negotiators to add cork to the framework agreement.
Natural Cork Council executive director Patrick Spencer met with delegates from the U.S. Trade Representative's Office and the Bureau of Industry and Security who were initially unclear about cork is and where it comes from. He worked with the Portuguese embassy in ensuring information about cork and how integral it is to the American wine industry got to U.S. negotiators.
Wine checks the boxes when it comes to the Trump administration’s goals for ‘made in America’ – it’s a big industry employing thousands. The argument was that to promote ‘Made in America,’ cork should be on a list of exemptions, because cork isn’t grown in the U.S., can’t be imported from Canada or China or Mexico, and should be on the list to help an industry that's strong in terms of being made in America, an industry that’s also been struggling.
“Seventy percent of all the wineries in America are using natural cork,” The Natural Cork Council’s Spencer, said. “Even the President has a winery and closes his bottles with cork.”
CQC Changes Its Name
Cork has come a long way. The non-profit Cork Quality Council was founded in 1994 to improve quality assurance procedures and to educate winemakers. Cork faced a backlash and criticism over 2, 4, 6 Trichloroanisole, or TCAand some wineries were switching to synthetic closures and screwcaps. The Cork Quality Council would employ a rigorous chemical and sensory testing methodology for members and laboratory analysis, screening batches of corks with gas chromatography/mass spectrometry.
Over the years, as cork companies improved processes aimed at eliminating TCA, the CQC helped educate winemakers about various advancements. Then nearly two years ago, The Cork Quality Council changed its name to reflect a change in direction.
“With success in virtually eradicating TCA, we found that the relevance of the Cork Quality Council had diminished because winemakers were comfortable with the closures,” Spencer, who joined the organization two years ago, said. “They were purchasing from their sales reps. Various cork companies were talking to them about their technical needs - plus all of the cork companies have remarkable technical staff.”
Spencer had been an International Board Member for the International Forest Stewardship Council, and founder & former Executive Director of theCork Conservation Alliance, an environmental NGO whose mission is to preserve and protect the Mediterranean cork forests. He helped create Cork ReHarvest, the first natural cork recycling program in North America. He replaced long-time CQC executive director Peter Webber.
To preserve the organization and make it relevant, members shifted the focus to working on sustainability, continuing with rigorous testing standards, but shifting education efforts toward consumers.
“I felt like my six board members had conquered the quality issue. I suggested, ‘let's change the name of the organization to the Natural Cork Council, because the word quality can impart good quality or poor quality. Let's take quality out of the equation, because we've solved that problem.’”
As for the tariffs, working together, the cork industry was able to avert a financial setback for an already challenged industry. “I wanted our organization to play an active role because the wine industry and the cork industry have had a long relationship,” Spencer said. “My effort was to make sure that the wine industry knew the cork industry had their back.”
The Natural Cork Council represents six leading Portuguese cork producers:
Amorim Cork
Cork Supply USA
Lafitte Cork and Capsule
M.A. Silva USA
Portocork America
Scott Labs
Companies mentioned in this article:
Amorim Cork America
Napa, CA
Amorim is recognized as a global leader in sustainable business practices. Founded in 1870 by the Amorim family, the company has grown to become the largest producer of natural cork wine closures in the world and remains focused only on cork. learn more
Cork Supply
Benicia, CA
Cork Supply provides premium closures to the wine industry, including natural and technical corks, capsules, screwcaps, and bar tops. We also offer DS100 and DS100+ processes for natural corks with individual TCA guarantees. learn more
Lafitte Cork & Capsule Inc.
Napa, CA
Lafitte currently offers the following closure solutions: natural cork, agglo 1+1, sparkling wine corks, colmated, molded micro agglomerate, molded micro 1+1, and bar-top closures. Lafitte also offers PVC, PETg, polylam, aluminum and tin capsules. learn more
MA Silva USA
Santa Rosa, CA
M. A. Silva is the leading and award-winning manufacturer of premium corks, glass, and packaging. It is our mission to demonstrate impeccable integrity, consistent customer service, and continuously commitment sustainable and eco-friendly operations. learn more
Portocork
Napa, CA
All natural cork products—straight natural cork, technical wine cork, champagne corks and bartop corks for spirits and port wines. learn more
Scott Laboratories
Petaluma, CA
For almost 90 years, Scott Laboratories has provided fermentation, filtration, equipment and packaging products to the wine and specialty beverage industries. We believe in education, honesty, and doing the right thing.