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1 How To Enter The Chinese Market Shanghai Import Food Enterprise Association (SIFEA) Mr. Guan Rong.

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Presentation on theme: "1 How To Enter The Chinese Market Shanghai Import Food Enterprise Association (SIFEA) Mr. Guan Rong."— Presentation transcript:

1 1 How To Enter The Chinese Market Shanghai Import Food Enterprise Association (SIFEA) Mr. Guan Rong

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

3 3 Outline 1. The Imported Food Market in Shanghai 1. The Imported Food Market in Shanghai 2. Major Products and Exporting Countries 2. Major Products and Exporting Countries 3. China’s Current Import Requirements 3. China’s Current Import Requirements 4. Impact of the Global Economic Situation? 4. Impact of the Global Economic Situation? 5. Suggestions to Your China Strategy 5. Suggestions to Your China Strategy

4 4 Imported Food in Shanghai

5 5 Breakdown of Products (2008) (USD Million)

6 6 Products and Exporting Countries (2008) Products and Exporting Countries (2008) Food category Major Foods Export Countries to Shanghai Food additives USA, Japan Wine France, Australian, Italy, Spain, Chile, USA Liquor France, England, USA Dairy products Australian, New Zealand, USA, France, Italy, Japan, Olive oil Italy, Spain, Greece Chocolate France, Belgium, Switzerland, Japan, USA, Germany Biscuit and Cookies USA, Japan, Denmark, England, Germany, Italy Beverage and Mineral water France, Italy, England, USA, Canada Meat and meat products USA, Canada, Denmark, France, Ireland, Australian, New Zealand, Confectionery Japan, Switzerland, England, Germany

7 7 - USA US$ 518 Million (#1) - USA US$ 518 Million (#1) - Japan US$ 392 Million (#2) - Japan US$ 392 Million (#2) - Singapore US$ 339 Million (#3) - Singapore US$ 339 Million (#3) … … … … - Canada US$ 17.7 Million (#20) - Canada US$ 17.7 Million (#20) 2008 Major Exporting Countries to Shanghai 2008 Major Exporting Countries to Shanghai

8 8 Major Rejections and Reasons USD7+ million of imported food products (0.2% of total import) are found unqualified in Shanghai port in 2008 – main reasons: USD7+ million of imported food products (0.2% of total import) are found unqualified in Shanghai port in 2008 – main reasons: 1. Snack food - pigment, additives and total bacteria count exceeding 1. Snack food - pigment, additives and total bacteria count exceeding 2. Dairy product - Enterobacter Sakazakii and the other bacteria detected 2. Dairy product - Enterobacter Sakazakii and the other bacteria detected 3. Wine and liquor - preservatives and methanol exceeding 3. Wine and liquor - preservatives and methanol exceeding 4. Chinese Label - not correctly indicating the additives in the ingredient, additives do not conform to Chinese National Standard GB Chinese Label - not correctly indicating the additives in the ingredient, additives do not conform to Chinese National Standard GB Other reasons: Exceeding the period of quality assurance. Can not provide required certificate of imported foods. No date of production on the package, etc. 5. Other reasons: Exceeding the period of quality assurance. Can not provide required certificate of imported foods. No date of production on the package, etc.

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15 15 Food Products Entering China - Agent & Importer - Self-import - OEM (Private Label) - Local Manufacturing

16 16 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. 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. With purpose to perform the function of entry-exit inspection and quarantine, AQSIQ has set up in total 35 Entry-Exit Inspection and Quarantine Bureaus (CIQ) in China's 31 provinces, near 300 branches and more than 200 local offices across the country, with employees totaled over 30,000 in goods distributing center at sea ports, land ports and airports. AQSIQ provides direct leadership to all the CIQ.

17 17 Food Safety Management Food Safety Management The recent Chinese National People’s Congress has approved the Chinese Food Safety Law which is to become effective June 1, AQSIQ is responsible for inspecting, supervising and administering the safety, hygiene and quality of the imported and exported foods and cosmetics. AQSIQ is responsible for inspecting, supervising and administering the safety, hygiene and quality of the imported and exported foods and cosmetics. 1. It is AQSIQ that should inspect, quarantine, supervise and manage the imported foods, food additive, food container, packaging material, instrument and equipment for food production. 1. It is AQSIQ that should inspect, quarantine, supervise and manage the imported foods, food additive, food container, packaging material, instrument and equipment for food production. 2. Pre-warning System for Entry-exit Food Inspection and Quarantine Risk and Quick Response System have been established by AQSIQ with the view to take preventive safeguarding and treating measures against the possible risk or potential harm caused by imported and exported food. 2. Pre-warning System for Entry-exit Food Inspection and Quarantine Risk and Quick Response System have been established by AQSIQ with the view to take preventive safeguarding and treating measures against the possible risk or potential harm caused by imported and exported food.

18 18 China’s Current Import Requirements China’s Current Import Requirements

19 19 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 Name and Address. 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 Name and Address. Chinese label must be covered over the foreign language package in the designated position of the package surface, or printed on the package surface directly, this method can help the goods to pass the inspection procedure rapidly. Imported food products can not be permitted into the Chinese retail market without Chinese labels. Chinese label must be covered over the foreign language package in the designated position of the package surface, or printed on the package surface directly, this method can help the goods to pass the inspection procedure rapidly. Imported food products can not be permitted into the Chinese retail market without Chinese labels. The local CIQ is in charge of the Chinese label inspection and keeps records according to the Chinese National Standards. The local CIQ is in charge of the Chinese label inspection and keeps records according to the Chinese National Standards.

20 20 Impact of Global Economic Situation to Shanghai Food Industry (Survey to 90 companies)

21 Shanghai Food Industry Forecast (90 companies)

22 22 Peak Selling Period – the Chinese New Year Peak Selling Period – the Chinese New Year

23 23 Suggestions to Your China Strategy 1. Right products for right customers 2. Be innovative and flexible 3. Co-operation with your Chinese partner 4. Your local presence will make a difference 5. Thinking Long term

24 24 Questions ? Thank you Mr. Guan Rong Tel/Fax: Questions ? Thank you Mr. Guan Rong Tel/Fax:


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