The Imported Food Situation in Shanghai How to Enter The Chinese Market

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Georgia Welch
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1 LOGO The Imported Food Situation in Shanghai How to Enter The Chinese Market Shanghai Import Food Enterprise Association (SIFEA) Guan Rong, Secretary General November

2 Our Association - SIFEA Provide information to members Government liaison and coordination Our Mandate Trade promotion Conduct activities Participate in trade exhibitions

3 Outline The Imported Food Market in Shanghai AQSIQ, CIQ and Responsibilities Import Requirements & Chinese Label Regulation Food Products Entering & Inspection Procedures Suggestions to Your China Strategy

4 Imported Food to Shanghai Weight(Kilo-Ton) Amount(USD Million)

5 2011 Major Exporting Countries New Zealand USD 642 Million (#1) Australian USD 259 Million (#2) USA USD 223 Million (#3) Netherland USD 175Million (#4) Germany USD 132 Million (#5) Malaysia US$ 73 Million (#6) Italy USD 50 Million (#7) Spain USD 36 Million (#8)

6 Food Products Breakdown Food category % M-USD Dairy Products Wine & Liquor Beverage Chocolate & Candy Flour Product s Vegetable & Fruit Seasoning Health Food Dry Nut Other Total

7 Related Food Exporting Countries Food category Major Export Countries Dairy products Wine & Liquor Beverage & Water Vegetable & Fruit Chocolate & Candy Frozen drink Biscuit & Cookies Seasoning Sugar Health food Canned food Sugared fruit Dry Nut New Zealand, Singapore, Australian, EU, USA France, Australian France, Germany, USA. Brazil, Spain, USA, Israel Malaysia, USA, EU USA, Brazil, Italy, UK, Germany Japan, EU Korea, Brazil, USA USA EU, USA. USA, Philippines, Thailand USA, Pakistan, Vietnam

8 Major Inspection Unqualified Reasons USD5+ million of imported food products (0.15% of total import) are found unqualified in Shanghai port in 2011 main reasons: 1. Chinese label check are unqualified. 2. Safety and sanitation test are unqualified in laboratory. 3. Sense and sanitation test are unqualified. 4. Food materials contain ingredients which come from epidemic area. 5. Can not provide the required certificate 6. Using the food additives which are not meet the standard. 7. No date of production on the package. 8. Exceeding the period of quality assurance. 9. Food ingredients contain drug.

9 China Food Management Organizations State Food Safety Committee MOH MOA AQSIQ SAIC FDA CIQs

10 The Administration System in China for Import Food Inspection and Quarantine AQSIQ General Administration of Quality Supervision, Inspection and Quarantine of the People's Republic of China (AQSIQ) is a ministerial administrative organ directly under the State Council of the People's Republic of China in charge of national quality, metrology, entry-exit commodity inspection, entry-exit health quarantine, entry-exit animal and plant quarantine, import-export food safety, certification and accreditation, standardization, as well as administrative law-enforcement.

11 Main Responsibilities of AQSIQ A1 Risk evaluating and confirm the inspection standards, if the shipment is the first time exporting to China without China National inspection standard, The exporter must apply for permission to the MOH. A2 Sanitary registration for the foreign manufacturers before seeking to export to China. A3 Recording the foreign exporter and agency information A4 Signing the animal and plant entry quarantine permit

12 CIQ AQSIQ has in total 35 Entry-Exit Exit Inspection and Quarantine Bureaus (CIQ) in China's 31 provinces, near 300 branches and more than 200 local offices across the country, with total over 30,000 employees in goods distributing center at sea ports, land ports and airports. AQSIQ provides direct leadership to all CIQs. Main Responsibilities of CIQ C1 Recording the Chinese local importer and agency information. C2 Accepting the application with the contract, receipt, transportation bill, approval document, Sanitary certificate etc. C3 Check the Chinese Label according to the GB <<General standard for the labeling of prepackaged foods >>and GB13432 <<General standard for the labeling of prepackaged foods for special dietary uses>>. C4 Inspection and quarantine at entry port according to the China national standards.

13 Meat China s Current Import Requirements AQSIQ RESPONSIBILITIES CIQ RESPONSIBILITIES A1 A2 A3 A4 C1 C2 C3 C4 On the Entry Permission list Vegetable Tomato, Eggplant, Chili Fruit On the Entry Permission list Raw Cooked or Grain & Cereal On the Entry Permission list Seafood On the Entry Permission list Diary Product Liquid milk live or Milk powder Needs quota Wine & Liquor X Snack Food

14 Chinese Label Regulation Chinese labels must include: Food Name, Ingredients, Net Weight, Country of Origin, Date of Production (Year/Month/Day), Expiration date (Year/Month/Day), Store Condition, Distributor s name and address in China. Current Chinese national standard for pre-packaged food products - GB

15 Chinese Label

Food Products Entering China Agent & Importer You identify an agent to represent your products in China, or sell your products to an importer in China.

16 Food Products Entering China Agent & Importer You identify an agent to represent your products in China, or sell your products to an importer in China. Exporter & Agent -Self-Import You set up your own company in China. The company can import your own products and other products. OEM (Private Label) Similar to Private Label.

17 Inspection Procedures for Imported Food Apply for inspection Product released from Customs OK Inspection Failed Sell in market Different solutions

18 Suggestions to Your China Strategy Products Market plan Innovative flexible Risk control Co-operation operation with your Chinese partner

19 LOGO Mr. Guan Rong Tel/Fax:

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Voluntary - Public Date: 6/27/2012 GAIN Report Number: