How to export to China. F-one Supply Chain Management Co., Ltd

Transcription

1 How to export to China F-one Supply Chain Management Co., Ltd

2 Agenda Current Market Situation Who is your best choice How to export to china Suggestions

3 Current Market Situation date Base Imports of pre-packaged foods increased by 14.39% from 2016 Data from the administration of customs

4 Current Market Situation

5 Current Market Situation Products 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.

6 Who is your best choice Examples of F&B sales channels According to the statistics of 2016, there are 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. 1.focus on traditional channels. 1.Rich types of sale channel 3. More attention to psychological feelings and fate The conservative companies 2.Special emphasis on the cost of marketing 3.More emphasis on practical interests and fond of data The innovative companies 2.Special emphasis on brand stories

7 Who is your best choice Examples of F&B sales channels According to the statistics of 2016, there are 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. Comprehensive addition term 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

8 Who is your best choice Key points between importer and exporter 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?

9 Current Market Situation Food Law and regulation governing organizations AQSIQ: CIQ: CNCA: CFDA: MOH: MOA: AIC General Administrat ion of Quality Supervisio n, Inspection and Quarantine of the People s Republic of China Entry-Exit Inspection and Quarantine Bureau Certificatio n and Accreditati on Administrat ion of the People s Republic of China China Food and Drug Administrat ion Ministry of Health of the People s Republic of China National Health and Family Planning Commissio n of the People s Republic of China Ministry of Agriculture of the People s Republic of China State Administrat ion for Industry & Commerce of the People's Republic of China

10 How to be export to china Supervision from export to sales 80% Export Risk occurs 5% Distribution 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 15% Sales 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

11 How to export to China Differences in China's market circulation channels 1. Sub Culture 2. Knowledge level of law enforcement personnel 3.Regulatory details

12 How to export to China Merchandises Requiring CIQ Certificates Problem TYPE 1 % 0 % 7 % 7 % 6 % 5 % 13 % 3 % 3 % 24 % 16 % 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 15 %

13 How to export to China Merchandises Requiring CIQ Certificates over-range or over quantity use ofnutrition fortifiers 3 % Not access to inspection and quarantine 5 % sensory not qualified 3 % supplier call-back 1 % Problem TYPE detection of unauthorized GMO ingredients 0 % ph-ch not qualified 6 % package not qualified 7 % Goods not matching documents 24 % microorganism not qualified 7 % over-range or ovre quantity use of food additives 13 % Chinese labels not qualified 16 % overpass the shelf life 15 %

14 How to export to China The Process of compliance Compliance Review Documents Prepare International Transport China customs clearance Successful Import

15 Export into China Solution The Process-compliance Compliance review 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 15

16 Export to China The Process-compliance Compliance review Information lists Artwork and/or samples of products Analysis report Ingredients percentage Flowchart of the process 16

17 Export to China The Process of compliance Documents needed Artwork

18 Export to China The Process of compliance Documents needed Analysis report of nutrition facts

19 Export to China The Process of compliance Documents needed Ingredient list

20 Export into China Solution The 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

21 Export to China The Process of compliance Compliance review Compliance of the packages Out-put of the Chinese labels Compliance of the ingredients Confirmation of the food category of the national standards

22 Export to China The Process of compliance- compliance service document output Compliance sheet output by FONE

23 Export into China Solution The Process of compliance- Original and Chinese Label files required by CIQ

24 How to export to China The Process of compliance 20,00% 18,00% 16,00% 14,00% 12,00% 10,00% 8,00% 6,00% 4,00% 2,00% 0,00% Products distribution of 18 Categories first time for ingredients qualified is 37.5%

25 How to be export to china The Process of compliance A.The main problems for ingredients : Some ingredients do not have edible basis in China. Some ingredients just can be used in health food in China. epidemic area B.The main problems for artwork: 1.No ingredients on the artwork 2. Organic claims 3.Exaggerate claims

26 How to export to China The Process of compliance C. The problems for category If the product was made of juice and water, the product can t be called juice, it should be a kind of beverage. D. The main problems for analysis report 1. Unit of measurement 2. Five Nutrients 3. Marks of nutrition facts values 26

27 How to export to China The Process of compliance Compliance Review Documents Prepare International Transport China customs clearance Successful Import

28 Export to China The Documents Prepare Documents Prepare Export and Importer Registration:

29 Export to China The Documents Prepare

30 Export to China The Documents Prepare Documents Prepare Certificate of Origin Special food categories(sanitary certificate for exports to China) Health certificate 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)

31 Export to China The International Transport International Transport Sea transportatio n LCL(30-38days) Sea transportatio n FCL(28-35days) Air Freight (2-7days)

32 Export to China The Customs clearance China customs clearance The Customs tariffs VAT Consumption tax

33 Export into China Solution The Customs clearance China customs clearance CIQ Declaration form Products inspection on-site qualified Unqualifie d Unqualified (return or destroy) Sampling for internal quality inspection qualified No sampling for internal quality inspection return destroy Rectification Get Inspection and quarantine certificate

34 Suggestions Get inspection and quarantine certificate 1. The mode of transportation: transportation changed from air freight to Waigaoqiao Free Trade Zone 2. Time spent:5days transportation+15days clearance and rectification+30days analysis and certificate issued 3. Minimum quantity:2 distribution units/sku(not mixed box) not more than 10skus/BL 4. Cost of clearance:about EUR /BL(except taxes)

35 Suggestions Ex-work price Freight by sea Custo m Duty* VAT* Consump tion tax Clearance service fee in CN Logistics in CN Shelf price Ex-work price Based on product 10%-40% 13%/17% 0%-10% EUR 15%-30% EUR 5%-30% Shelf price 35

36 Suggestions Most frequently used ports SHANGHAI SHENZHEN TIANJING 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 36

37 Suggestions How to deal with complians in circulation?? The focus of complaining points: Production date and expiry date Proportioning suitability Misleading publicity 37

38 Suggestions How to deal with complaints in circulation?? coping style : self-examine the problems Yes No pay and distinguish the responsibility compensate prepare related basis and documents respond to the litigation 38

39 What we can do for you The Process Product compliance consulting Supply chain management Compliance check Successful into china Importer Credibility checking International forwarder Less risk More success Pieni riski, suuri menestys F-one Customs clearance Trade agency 39

40 What can we do for you Our Clients for example

41 The End Thank you Crystal