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How To Enter The Chinese Market

How To Enter The Chinese Market. Shanghai Import Food Enterprise Association (SIFEA) Mr. Guan Rong. Our Association - SIFEA. Provide information to members Government liaison and coordination Trade promotion Conduct activities Participate in trade exhibitions. Outline.

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How To Enter The Chinese Market

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

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

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

  4. Imported Food in Shanghai

  5. Breakdown ofProducts (2008)(USD Million)

  6. Products and Exporting Countries (2008)

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

  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: 1. Snack food - pigment, additives and total bacteria count exceeding 2. Dairy product - Enterobacter Sakazakii and the other bacteria detected 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 GB2760-2007. 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.

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

  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. 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.

  11. Food Safety Management The recent Chinese National People’s Congress has approved the Chinese Food Safety Law which is to become effective June 1, 2009. 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. 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.

  12. China’s Current Import Requirements

  13. Chinese Label Regulation • Chinese labels must include: Food Name, Ingredients, Net Weight, Countryof 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. • The local CIQ is in charge of the Chinese label inspection and keeps records according to the Chinese National Standards.

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

  15. 2009 Shanghai Food Industry Forecast (90 companies)

  16. Peak Selling Period – the Chinese New Year

  17. 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

  18. Questions？Thank youMr. Guan Rong Email: guanrong@sifea.cn Tel/Fax: 86-21-64398189

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