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TRANSCRIPT
F-one Supply Chain Management Co., Ltd
How to
export to
China
Agenda
Current Market Situation
Who is your best choice
How to export to china
Suggestions
Current Market Situationdate Base
Data from the administration of customs
Imports of pre-packaged foods increased by 14.39% from 2016
Current Market Situation
Current Market SituationProducts from Finland sold in China through difference channels
New Entrants in 2017:
Chinese consumers' impression of Finnish food:
Weakness: impression thin, confusion.strengths: the country impression is good, quality, small crowd.
Who is your best choiceExamples of F&B sales channels
1.focus on
traditional
channels.
2.Special emphasis
on the cost of
marketing
3. More attention
to psychological
feelings and fate
85 companies are over $100 million, accounting
for 0.5%.
892 companies are over 10 million but less than
100 million, accounting for 5.2%
The number of new enterprises increased by
9.8% compared by former years
According to the statistics of 2016, there are 17220 Food importers in China:
95.3% small and medium-sized companies.
1.Rich types of
sale channel
2.Special
emphasis on
brand stories
3.More emphasis
on practical
interests and fond
of data
The conservative companies
The innovative companies
Who is your best choiceExamples of F&B sales channels
1.The
reputation of
the brand in
the world
2.The
popularity of
the brand in
China
3.Whether
there is a
special export
manager for
China
4.Whether
there is a
support for
China's specific
marketing plan
Comprehensive addition term
According to the statistics of 2016, there are 17220 Food importers in China:
85 companies are over $100 million, accounting
for 0.5%.
892 companies are over 10 million but less than
100 million, accounting for 5.2%
The number of new enterprises increased by
9.8% compared by former years
95.3% small and medium-sized companies.
What do importers
care?
1.Whether the
products can enter China?
2.How long is the shelf life?
Is the package attractive? Is the taste adaptable to Chinese consumers?
3.What is the import price?
4.How about the production capacity of the factory?（Maximum output and minimum order quantity）
5.Is there marketing support from brands?
How about sales exclusivity?
Who is your best choiceKey points between importer and exporter
Food Law and regulation governing organizations
Current Market Situation
AQSIQ：
General Administrat
ion of Quality
Supervision,
Inspection and
Quarantine of the
People’s Republic of
China
CIQ:
Entry-Exit Inspection
and Quarantine
Bureau
CNCA:
Certification and
Accreditation
Administration of the People’s
Republic of China
CFDA:
China Food and
Drug Administrat
ion
MOH:
Ministry of Health of
the People’s
Republic of China
National Health and
Family Planning
Commission of the People’s
Republic of China
MOA:
Ministry of Agriculture
of the People’s
Republic of China
AIC
State Administrat
ion for Industry & Commerce
of the People's
Republic of China
80% Export Risk occurs 5% Distribution Risk occurs
Introduction： Non-government
organizations or private
persons. Profit making based o
n law suits and complaints
to F&B sellers. Taking advanta
ges on the blind spots of reg
ulatory supervision.
Key aspects of complaints:
1.Advertisement law
2.New food safety law
3.Other related regulations of
F&B
Possible results:
1.Lawsuits
2.Damaged brand reputation
3.Financial compensation
15% Sales Risk occurs
introduction: Goalkeeper of national gate.
It decides whether the food can be
imported to China based on the law and
regulation
Key points of supervision:
1.Ingredients ,whether it can be used
2.Additives,whether the added quantity is
within the limit
3.On the package whether all the descripti
ons on the package are in compliance with
law
4.quality,whether it is in accordance with C
hinese regulations
Possible results:
1.Products returned
2.Products destroyed
3.Chinese label rectification
4.Blacklisted importers
Introduction：Regulatory authority
in the end-consumer market.
Monitor the compliance of
products based on the consumer
complaints and regulations.
Key points of supervision:
1.Consumer complaints
2.National monitory standard
Possible results:
1.Products removed from shelf
and or no distribution at all
2.Penalty
3.Reputation damaged
4.Business restricted
How to be export to chinaSupervision from export to sales
Differences in China's market circulation channels
1. Sub Culture
2. Knowledge level of law enforcement
personnel
3.Regulatory details
How to export to China
Merchandises Requiring CIQ Certificates
How to export to China
24 %
16 %
15 %
13 %
7 %
7 %
6 %
5 %
3 %3 %
1 %0 %
Problem TYPE
Goods not matching documents
Chinese labels not qualified
overpass the shelf life
over-range or ovre quantity use of food additives
microorganism not qualified
package not qualified
pH-Ch not qualified
Not access to inspection and quarantine
over-range or over quantity use ofnutrition fortifiers
sensory not qualified
supplier call-back
detection of unauthorized GMO ingredients
Merchandises Requiring CIQ Certificates
How to export to China
Goods not matching documents
24 %
Chinese labels not qualified16 %
overpass the shelf life15 %
over-range or ovre quantity use of food
additives13 %
microorganism not qualified7 %
package not qualified7 %
pH-Ch not qualified6 %
Not access to inspection and quarantine
5 %
over-range or over quantity use ofnutrition
fortifiers3 %
sensory not qualified
3 %supplier call-back
1 %
detection of unauthorized GMO ingredients
0 %
Problem TYPE
How to export to ChinaThe Process of compliance
Compliance Review Documents PrepareInternational
Transport
China customs
clearance
Successful
Import
15
Compliance review
Export into China SolutionThe Process-compliance
Confirmation of the category whether it belongs to special
categories
• Aquatic products
• Meat products，
• Milk products(In recent years, the government’s supervision
is focused on the infant formula milk powder ）
• Fresh and frozen fruits
• Honey
16
Compliance review
Export to ChinaThe Process-compliance
Information lists• Artwork and/or samples of products
• Analysis report
• Ingredients percentage
• Flowchart of the process
Artwork
Export to ChinaThe Process of compliance—Documents needed
Analysis report of nutrition facts
Export to ChinaThe Process of compliance—Documents needed
Ingredient list
Export to ChinaThe Process of compliance—Documents needed
Flow chart of manufacturing process• Flow charts will help in deciding HS code, in this example, whole potatoes or potato flour will result in
different HS code, thus different import tax
Export into China SolutionThe Process of compliance—Documents needed
Confirmation of the food category of the national standards
Compliance of the ingredients
Compliance of the packages
Out-put of the Chinese labels
Export to ChinaThe Process of compliance
Compliance review
Compliance sheet output by FONE
Export to ChinaThe Process of compliance- compliance service document output
Export into China SolutionThe Process of compliance- Original and Chinese Label files required by CIQ
How to export to ChinaThe Process of compliance
0,00%
2,00%
4,00%
6,00%
8,00%
10,00%
12,00%
14,00%
16,00%
18,00%
20,00%
Products distribution of 18 Categories
first time for ingredients qualified is 37.5%
How to be export to chinaThe Process of compliance
Some ingredients do
not have edible basis in
China.
Some ingredients just
can be used in health
food in China.
epidemic area
A.The main problems for ingredients :
B.The main problems for artwork：
1.No ingredients on the artwork
2. Organic claims
3.Exaggerate claims
26
1. Unit of measurement
2. Five Nutrients
3. Marks of nutrition facts values
If the product was made of juice and water, the product can’t be called juice, it should be a kind of beverage.
How to export to ChinaThe Process of compliance
C. The problems for category
D. The main problems for analysis report
How to export to ChinaThe Process of compliance
Compliance Review Documents PrepareInternational
Transport
China customs
clearance
Successful
Import
Export to China The Documents Prepare
Export and Importer Registration:
http://ire.eciq.cn/Documents
Prepare
Export to ChinaThe Documents Prepare
Certificate of Origin
Health certificate
Special food categories（Sanitary
certificate for exports to China)
Other F&B categories（normal
health certificate）
Analysis report
Specific products（whole items
physical-chemical analysis report
based on Chinese related
standards)
Other F&B products（analysis
reports on nutrition facts)
Export to China The Documents Prepare
Documents Prepare
Sea
transportatio
n LCL（30-
38days）Sea
transportatio
n FCL（28-
35days）
Air Freight
（2-7days）
International Transport
Export to ChinaThe International Transport
The Customs
tariffs VATConsumption
tax
China customs clearance
Export to ChinaThe Customs clearance
CIQ
Declaration
form
Products
inspection
on-site
qualified
Sampling
for
internal
quality
inspection
qualified
Unqualified
（return or
destroy)
No sampling for
internal quality
inspection
Unqualifie
d
return destroy Rectification
China customs clearance
Get Inspection and quarantine certificate
Export into China SolutionThe Customs clearance
Suggestions
4. Cost of clearance：about EUR1200-1800/BL(except taxes)
3. Minimum quantity:2 distribution units/SKU(not mixed box) not more than 10skus/BL
2. Time spent:5days transportation+15days clearance and rectification+30days analysis and certificate issued
1. The mode of transportation: transportation changed from air freight to Waigaoqiao Free Trade Zone
Get inspection and quarantine certificate
Ex-work
price
Freight by
sea
Custo
m
Duty*
VAT*Consump
tion tax
Clearance
service
fee in CN
Logistics
in CN
Shelf
price
35
Ex-work priceBased on
product10%-40% 13%/17% 0%-10% EUR 15%-30% EUR 5%-30% Shelf price
Suggestions
36
Suggestions
SHANGHAI
SHENZHEN
TIANJING
Most frequently used ports
Notice:
• Shanghai is the most strict port in China, going through Shanghai port will help reduce
the risks of export at other ports
• If Hong Kong is the choice of port, further export to Mainland China will go through the
same export process as exporting from Finland
37
Suggestions
How to deal with complians in circulation?？
The focus of complaining points：
Proportioning
suitability
Misleading
publicity
Production
date and
expiry date
38
Suggestions
coping style ：
How to deal with complaints in circulation?？
self-examine
the problems
Yes
pay and
distinguish the
responsibility
compensate
No
prepare
related basis
and
documents
respond to the
litigation
39
Product
compliance
consulting
Compliance
check
International
forwarder
Trade agencyCustoms
clearance
Importer
Credibility
checking
Supply chain
management
Less risk
More success
Pieni riski, suuri menestys
F-one
What we can do for youThe Process
Successful into china
What can we do for youOur Clients for example
