How to export to China Agenda Current Market Situation Who is - - PowerPoint PPT Presentation

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How to export to China

Agenda

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

Current Market Situation

date Base

Data ta from the admin inist istrati ration of custo stoms

Imports of pre-packaged foods increased by 14.39% from 2016

Current Market Situation

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.

Who is your best choice

Examples of F&B sales channels

1.focus on traditional channels. 2.Special emphasis

• n 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

• n practical

interests and fond

• f data

The conservative companies The innovative companies

Who is your best choice

Examples 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

• utput and

minimum

• rder

quantity） 5.Is there marketing support from brands? How about sales exclusivity?

Who is your best choice

Key points between importer and exporter

Food Law and regulation governing organizations

Current Market Situation

AQSIQ： General Administrat ion of Quality Supervisio n, Inspection and Quarantine

• f the

People’s Republic of China CIQ: Entry-Exit Inspection and Quarantine Bureau CNCA: Certificatio n and Accreditati

• n

Administrat ion 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 Commissio n of the People’s Republic of China MOA: Ministry of Agriculture

• f the

People’s Republic of China AIC State Administrat ion for Industry & Commerce

• f the

People's Republic of China

80% E % Export Ri Risk sk occurs

5% % Distr tributi tion Risk occurs rs

Introduction： Non-government

• rganizations 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% % Sa Sales Risk occurs rs 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

• ns 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 china

Supervision 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

• verpass the shelf life
• ver-range or ovre quantity use of food additives

microorganism not qualified package not qualified pH-Ch not qualified Not access to inspection and quarantine

• ver-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 qualified 16 %

• verpass the shelf life

15 %

• ver-range or ovre

quantity use of food additives 13 % microorganism not qualified 7 % package not qualified 7 % pH-Ch not qualified 6 % Not access to inspection and quarantine 5 %

• ver-range or over

quantity use ofnutrition fortifiers 3 % sensory not qualified 3 % supplier call-back 1 % detection of unauthorized GMO ingredients 0 %

Problem TYPE

How to export to China

The Process of compliance

Compliance Review Documents Prepare International Transport China customs clearance Successful Import

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Compliance review

Export into China Solution

The 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

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Compliance review

Export to China

The Process-compliance

Information lists

• Artwork and/or samples of products
• Analysis report
• Ingredients percentage
• Flowchart of the process

Artwork

Export to China

The Process of compliance—Documents needed

Analysis report of nutrition facts

Export to China

The Process of compliance—Documents needed

Ingredient list

Export to China

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

Export into China Solution

The Process of compliance—Documents needed

Confirmation

• f the food

category of the national standards

Compliance of the ingredients Compliance of the packages

Out-put of the Chinese labels

Export to China

The Process of compliance

Compliance review

Compliance sheet output by FONE

Export to China

The Process of compliance- compliance service document output

Export into China Solution

The Process of compliance- Original and Chinese Label files required by CIQ

How to export to China

The 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 china

The 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 China

The Process of compliance

• C. The problems for category
• D. The main problems for analysis report

How to export to China

The Process of compliance

Compliance Review Documents Prepare International Transport China customs clearance Successful Import

Export to China

The Documents Prepare

Export and Importer Registration: http://ire.eciq.cn/

Documents Prepare

Export to China

The 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 China

The International Transport

The Customs tariffs VAT Consumption tax

China customs clearance

Export to China

The Customs clearance

CIQ

Declaration form Products inspection

• n-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 Solution

The Customs clearance

Sug ugge gestio tions ns

• 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 price Based on product 10%-40% 13%/17% 0%-10% EUR 15%-30% EUR 5%-30% Shelf price

Sug ugge gestio tions ns

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Sug ugge gestio tions ns

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

Sug ugge gestio tions ns

How to deal with complians in circulation?？ The focus of complaining points：

Proportioning suitability Misleading publicity Production date and expiry date

38

Sug ugge gestio tions ns

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 agency Customs clearance Importer Credibility checking Supply chain management

Less risk More success Pieni riski, suuri menestys F-one

What we can do for you

The Process

Successful into china

What can we do for you

Our Clients for example

The End Thank you

Crystal Tong：cry ryst stal al.to tong@ g@fo fones esupp pply lycha hain.com com +861 6135 35017 1798 9832 326