LOGO

www.themegallery.com

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

Shanghai Import Food Enterprise Association (SIFEA)Guan Rong, Secretary GeneralNovember 2014

WWW.SIFEA.CN

Our Association - SIFEA

Provide information to membersProvide information to members

Government liaison and coordinationGovernment liaison and coordination

Trade promotionTrade promotion

Conduct activitiesConduct activities

Participate in trade exhibitionsParticipate in trade exhibitions

Our Mandate

Outline

The Imported Food Market in Shanghai

AQSIQ, CIQ and Responsibilities AQSIQ, CIQ and Responsibilities

Import Requirements & Chinese Label Regulation

Food Products Entering & Inspection Procedures

Suggestions to Your China Strategy

Weight(Kilo-Ton) 577 596 718

Amount(USD Million) 1869 2565 3437

2009 2010 2011

Imported Food to Shanghai

2011 Major Exporting Countries 2011 Major Exporting Countries

New Zealand USD 642 Million (#1) New Zealand USD 642 Million (#1)

Australian USD 259 Million (#2)Australian USD 259 Million (#2)

USA USD 223 Million (#3)USA USD 223 Million (#3)

Netherland USD 175Million (#4)Netherland USD 175Million (#4)

Germany USD 132 Million (#5)Germany USD 132 Million (#5)

Malaysia US$ 73 Million (#6)Malaysia US$ 73 Million (#6)

Italy USD 50 Million (#7)Italy USD 50 Million (#7)

Spain USD 36 Million (#8) Spain USD 36 Million (#8)

Food Products Breakdown

Food category % M-USD

Dairy Products 42.2 1453 Wine & Liquor 41.2 1418Beverage 4.2 145Chocolate & Candy 3.5 121Flour Product s 2.7 93Vegetable & Fruit 2.6 90Seasoning 1.1 37Health Food 0.6 22Dry Nut 0.6 21Other 1.0 37Total 100 3437

Related Food Exporting CountriesFood category Major Export Countries

Dairy products New Zealand, Singapore, Australian, EU, USA

Wine & Liquor France, AustralianBeverage & Water France, Germany, USA.Vegetable & Fruit Brazil, Spain, USA, IsraelChocolate & Candy Malaysia, USA, EUFrozen drink USA, Brazil, Biscuit & Cookies Italy, UK, GermanySeasoning Japan, EUSugar Korea, Brazil, USAHealth food USACanned food EU, USA.Sugared fruit USA, Philippines, Thailand

Dry Nut USA, Pakistan, Vietnam

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 certificate6. 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.

China Food Management Organizations

State Food Safety Committee

MOH MOA AQSIQ SAIC FDA

CIQs

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.

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 informationA4 Signing the animal and plant entry quarantine permit

CIQ

AQSIQ has in total 35 EntryAQSIQ has in total 35 Entry--Exit Inspection and Quarantine Exit Inspection and Quarantine Bureaus (CIQ) in China's 31 provinces, near 300 branches and Bureaus (CIQ) in China's 31 provinces, near 300 branches and more than 200 local offices across the country, with total over more than 200 local offices across the country, with total over 30,000 employees in goods distributing center at sea ports, land30,000 employees in goods distributing center at sea ports, land ports and airports. AQSIQ provides direct leadership to all CIQsports and airports. AQSIQ provides direct leadership to all CIQs..

Main Responsibilities of CIQMain Responsibilities of CIQ

C1 Recording the Chinese local importer and agency C1 Recording the Chinese local importer and agency information.information.

C2 Accepting the application with the contract, receipt, C2 Accepting the application with the contract, receipt, transportation bill, approval document, Sanitarytransportation bill, approval document, Sanitary certificate etc.

C3 Check the Chinese Label according to the GB7718C3 Check the Chinese Label according to the GB7718--2011 2011 <<General standard for the labeling of prepackaged foods <<General standard for the labeling of prepackaged foods >>and GB13432 <<General standard for the labeling of >>and GB13432 <<General standard for the labeling of prepackaged foodsprepackaged foods for special dietary uses>>.

C4 Inspection and quarantine at entry port according to the Inspection and quarantine at entry port according to the China national standards.China national standards.

China’s Current Import RequirementsAQSIQ RESPONSIBILITIES CIQ RESPONSIBILITIES

A1 A2 A3 A4 C1 C2 C3 C4

Meat On the Entry Permission list

√ Raw √Cooked ×

√ √ √or × √

Vegetable √ √ × Tomato,Eggplant,Chili √

× √ × √

Fruit On the Entry Permission list

× √ × √ × √

Grain & Cereal On the Entry Permission list

× √ × √ × √

Seafood On the Entry Permission list

√ live√ √ √ √or× √

Diary Product √ × √ Liquid milk√

√ √Milk powderNeeds quota

√ √

Wine & Liquor X × √ × √ √ √ √

Snack Food √ × √ × √ √ √ √

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 - GB7718-2011

Chinese Label

Food Products Entering China

You identify an agent to represent your products in China, or sell your products to an importer in China.

You set up your own company in China. The company can import your own products and other products.

Similar to Private Label.

Exporter& Agent

Agent & Agent & ImporterImporter

--SelfSelf--ImportImport

OEM (Private OEM (Private Label)Label)

Inspection Procedures for Imported Food

Apply for inspection

Product released from Customs

InspectionOK Failed

Sell in market Different solutions

Suggestions to Your China Strategy

CoCo--operation with your operation with your Chinese partnerChinese partner

Products Products RiskcontrolMarket

plan InnovativeInnovativeflexibleflexible

LOGO

www.themegallery.com

Mr. Guan Mr. Guan RongRongEmail: Email: guanrong@sifea.cnguanrong@sifea.cn Tel/Fax: +86Tel/Fax: +86--2121--6439818964398189

WWW.SIFEA.CN