I.Overview of the Current Situation of Japan’s Coffee Import Market and the International Trade Landscape

In recent years,the annual growth rate of China’s coffee consumption market has exceeded 15%.Japanese coffee,with its fine roasting techniques (such as Kyoto dark roasted beans and Shizuoka blended beans) and strict quality control standards,has become a popular choice in China’s high-end coffee market.According to customs data,from January to October 2023,the value of coffee (HS code 0901220000,roasted coffee) imported from Japan to China reached 120 million U.S.dollars,an increase of 22% year-on-year.

From the perspective of the international trade environment,after the RCEP agreement comes into effect,more than 90% of the goods trade between China and Japan will gradually achieve zero tariffs.The most-favored-nation tariff rate for Japanese coffee imports has been reduced from 8% to 6% (and will be further reduced in 2024),significantly reducing import costs.However,it should be noted that the global coffee supply chain has been affected by the drought in Brazil.Due to price fluctuations and geopolitical impacts,the international coffee green bean price index rose by 18% in 2023.The uncertainty of logistics efficiency has increased,and the importance of professional agency services has become increasingly evident.

II.The core of professional agency services: dual-track support for shipping documents and logistics

(I) Document Handling: Full-Chain Review to Avoid Customs Clearance Risks

Output:

Documents are the "ID cards" for import customs clearance.Relying on 20 years of experience,we have established a "3+2" document review system (3 basic documents + 2 key certificates):

• Basicdocuments:Commercialinvoice(whichmustindicatethecontractnumberandthetransactionmodeFOB/CIF),packinglist(listingthenet/grossweightofeachbox,consistentwiththebilloflading),oceanbilloflading(checktheconsigneeandnotifypartyinformationtoavoidmistakesinthe”electronicrelease”operation);
• Keyproof:①1.FormE(issuedbyanauthorizedagencyoftheJapaneseMinistryofEconomy,TradeandIndustry),whichfocusesonverifyingthematchbetweenthevisadateandtheshippingscheduletoavoidthecertificatebeingrejectedbycustomsduetoexpiration.2.HealthCertificate(issuedbytheJapaneseMinistryofAgriculture,ForestryandFisheries),whichmustincludethestatement"ConformstoChinesefoodsafetystandards"andpayspecialattentiontothelimitsofmicrobiologicalindicators.*Note:ThetranslationretainstheoriginalstructurewhileadaptingtermstoalignwithcommonEnglishexpressionsintradeandcustomsdocumentation.*

In 2022,a client failed to confirm the validity period of the health certificate (only 6 months) in advance,and the certificate expired when the goods arrived at the port,resulting in port detention fees exceeding 50,000 yuan.Zhong Shen International Trade Company,through its pre-audit mechanism,was able to remind the client to coordinate with the Japanese side to reissue the certificate 30 days in advance,thereby avoiding such risks.

(II) Logistics Management: Multimodal Transport & Customized Temperature Control Solutions

Output:

For coffee transportation to Japan,Zhong Shen International Trade Co.Ltd.offers a multi-modal transportation solution combining sea,land,and air routes:

• Seafreight(themainstreamchoice):Fullcontainerload(FCL)issuitablefor20-foot/40-footcontainers(a20-footcontainercanhold18-20tonsofroastedbeans),andless-than-containerload(LCL)issuitableforsmallquantities(500kg-2tons).Itisimportanttocarefullyselecttheshippingcompany(NYKLineisrecommended,withanon-timedeliveryrateofover90%);
• (Urgentrequirement):DirectflightsfromNarita/HanedaAirporttoShanghai/Beijingareused,withtheentireprocessundercoldchain(temperaturecontrolat18-22°C)toensuretheretentionoftheroastedbeanaroma.Thedeliverytimeisonly48hours.
• SpecialServices:Weofferbondedwarehousing(inShanghaiWaigaoqiao/NingboMeishan),supporting"phasedexitfromthezoneandcentralizedcustomsdeclaration",toalleviateclients’financialpressure.Forimportedrawbeans,wecancoordinatewiththeJapanAgriculturalCooperativetoprovidemoisture-proofvacuumpackaging,reducingtheriskofmoldgrowthcausedbyhumidityduringmaritimetransportation.

III.Key Points of Trade Compliance and Certification Guidelines (excluding certification procedures)

Importing Japanese coffee requires paying close attention to the following compliance requirements:

• HScodeclassification:Strictlydistinguishbetweenrawbeans(0901210000)androastedbeans(0901220000).Theformerhasatariffof15%(whichwillbereducedto12%in2024undertheRegionalComprehensiveEconomicPartnershipAgreement),whilethelatterhasatariffof6%.
• Chineselabelcompliance:Itisrequiredtoindicate”Countryoforigin(Japan),rawmaterialcomponents(Arabica/Robustacoffeebeans),productiondate(JapanesecalendaryearneedstobeconvertedtotheGregoriancalendar),shelflife(roastedcoffeebeansaretypically12months)”.Ifthelabelisnotaffixedortheinformationisincomplete,thecustomswillorderrectification;
• InspectionandQuarantine:Whenimporting,theconsigneeneedstosubmitthe"ImportFoodConsigneeRegistrationCertificate"tothecustoms.Afterthegoodsarriveattheport,a10%samplinginspection(forpesticideresiduesandaflatoxinB1)willbeconducted.ZhongShenInternationalTradeCo.Ltd.canassistinpreparingthenecessarymaterialssuchastheorigincertificateandtheproductionprocessdescriptionfortheinspection,butthecertificationprocessneedstobeentrustedtoathird-partyagency(suchasSGSorHuaceTesting)bytheclientthemselves.

Please note: For special categories such as Japanese organic coffee (JAS-certified) and decaffeinated coffee (which requires a proof of the decaffeination process),additional certification documents must be submitted upon import.Zhong Shen International Trade can provide guidance on the document format and content requirements,but we do not handle the certification process directly.

IV.Full-Process Agency Service: 9 Steps Detailed Explanation & Practical Suggestions

Zhong Shen International Trade Co.Ltd.will introduce Japanese coffee to the Chinese market.Break it down into 9 major steps,covering the entire cycle from consultation to feedback:

• CustomerInquiry:Determinethecoffeecategory(greenbeans/roastedbeans/instantcoffee),annualimportvolume(lessthan50tons/50-200tons/morethan200tons),andtargetports(Shanghai/Qingdao/Guangzhou),andsimultaneouslyassesswhetherthereisaneedforcoldchainlogistics.
• NegotiationandContractSigning:Thekeypointsofthereviewinclude:-Tradeterms(recommendedCIF,withtheagentcontrollingthemaritimeshippingrisks);-Paymentterms(30%prepayment+70%uponreceiptofthebillofladingcopy,toavoidtheriskoftheJapanesepartyabandoningthegoods);-Disputeresolutionclauses(stipulatingtheChinaInternationalEconomicandTradeArbitrationCommission).
• Orders&Payment:PassthereviewoftheSWIFTsystemofthebank(L/C)terms(suchastherequirementof"documentarycompliance"),whenmakingforeignexchangepayments,usetheNationalForeignExchangeAdministration’smonitoringsystem(ASOne)tocompletethelistregistrationtoensurethatlarge-amountforeignexchangepaymentsexceeding50,000USdollarscomplywithregulations;
• ProductionSupervision:Forcustomizedbakingneeds(suchasdeep/moderatebaking),wecanarrangeQCpersonneltosupervisetheassemblyattheJapanesefactory(subjecttoadditionalcommissioningbytheclient)andverifythebatchnumberandpackagingsealingperformance.
• LogisticsManagement:Afterbookingtheshippingspace,wewillprovidethe"ShippingNotice"(includingthenameoftheship,voyage,andestimatedarrivaltime)inrealtimeandcoordinatewiththeinsurancecompany(recommendedChinaPingAn)topurchasemarineall-risksinsurance(coveringtheftandfreshwaterdamagerisks).
• CustomsCompliance:Whenpre-enteringthecustomsdeclarationform,payspecialattentiontoverifyingthe"domesticconsignorandconsignee"andthe"consumptionanduseunits"(ifitisadistributor,itneedstobemarkedseparately).Paythecustomsduties(youcanapplyforsummarytaxationtoreducethecostofpayingtaxesonacase-by-casebasis).
• DeliveryandDistribution:IncooperationwithJDLogisticsandSFExpressColdChain,weprovideanintegrated"port-warehouse-store"deliveryservice,supportingtwomodes:B2B(bulkdeliverytosupermarkets)andB2C(small-scaledeliverytocafes).
• QualityAssurance:Afterthegoodsarriveatthewarehouse,a5%samplewillbeextractedandsenttoathird-partytestingagency(recommendedPONYTesting).Ifmoldorpesticideresiduesexceedthestandard,wewillassistclientsininitiatingtheprocessofreturningthegoodsormakingclaims(inaccordancewiththequalityassuranceclausesinthetradecontract);
• SummaryandFeedback:Providethe"ImportCostAnalysisReport"(includingtheproportionoftariffs,freightcharges,andstoragefees)andthe"LogisticsEfficiencyEvaluationForm",andassistclientsinoptimizingtheirnextbatchofimportplans.

V.Expansion of Business with Russia: VTBThe advantages and practical implementation suggestions of n

For clients involved in re-export or related trade with Russia,Zhong Shen International Trade relies on its partnership with Russian companies to provide comprehensive services,including market research,product promotion,logistics and customs clearance,and after-sales support.Through long-term cooperation with the bank (VTB),we offer convenient foreign exchange settlement services:

• Exchangerateadvantage:AsadesignatedsettlementbankoftheRussianCentralBank,VTBoffersdirectruble-RMBexchange(withamid-marketspreadoflessthan0.5%),whichsaves1-2%inexchangelossescomparedtotransactingthroughtheUSdollarasanintermediary.
• Time-efficiencyguarantee:ByusingtheSWIFTsystemandtheCIPS(RMBcross-borderpaymentsystem)dualchannels,large-amountforeignexchangesettlement(over5millionRMB)canachieveT+1settlement(whilethetraditionalchannelrequiresT+3);
• ComplianceSupport:Assistclientsincompletingthe"China-RussiaBorderTradeSettlementRegistration",avoidOFAC(USDepartmentoftheTreasury’sOfficeofForeignAssetsControl)sanctionrisks,andsuccessfullyhandled20millionRMBofforeignexchangesettlementstoRussiaforthreeclientsin2023.

Please note: For business with Russia,an additional "End-User Declaration" (certifying that the goods will not be used for military purposes) is required.Zhong Shen International Trade Co.Ltd.can provide guidance on the key points of signing the document,but does not assume legal responsibility for it.

Conclusion: Japanese coffee imports are a business where "details determine success or failure".From document review to logistics temperature control,from trade compliance to foreign exchange optimization,every step requires professional expertise.With 20 years of foreign trade agency experience,Zhong Shen International Trade relies on two core competencies - document management and logistics - to provide enterprises with a full-process solution that is "risk-controllable,cost-predictable,and time-trackable",helping Japanese coffee efficiently enter the Chinese market.