New Trends in Sino-Japanese Food Trade: Market Opportunities and Challenges for Japanese Cake Imports

In recent years,with the deepening of the RCEP agreement and the upgrading of domestic consumption,the demand for imported baked goods from Japan has surged.According to data from the General Administration of Customs,in January-October 2023,the value of pastry products imported from Japan to China increased by 27% year-on-year,with high-end fresh cream cakes and wagashi cakes accounting for more than 60% of the total.However,opportunities come with challenges: Japan’s Food Sanitation Law (JFSL) imposes strict regulations on raw material traceability and additive use,while Chinese customs implement a full-chain management of imported foods including "pre-import review,inspection upon import,and post-import supervision".Enterprises need to address issues such as document compliance,cold-chain logistics,and other regulatory requirements.There are multiple challenges,such as risk control.ProfessionalThe involvement of agents is becoming a key factor for enterprises to break through barriers and improve efficiency.

The core services of the Japanese cake import agency: professional barriers in documentation and logistics

First,document processing: A "travel permit" that complies with all regulatory requirements throughout the entire process.

Output:

Imported cakes are pre-packaged foods and require submitting more than 10 core documents.The value of professional agents lies in their precise control of these documents.

• Officialcertificates:The"HealthCertificate"issuedbytheJapaneseMinistryofHealth,LabourandWelfare(whichmustspecify"incompliancewithChinesefoodadditivestandards")(FORME,enjoyingRCEPtariffpreferences),theregistrationnumberoffoodproductionenterprisesexportingtoChina(asrequiredbytheGeneralAdministrationofCustoms’DecreeNo.145);
• Businessdocuments:Businessinvoice(whichmustreflecttheCIFprice,includingthedetailsoffreightandinsurancepremiums),packinglist(indicatingthespecificationsofeachboxofcakes,productiondate,andshelflife),andbilloflading.Youneedtoselectacoldchainshippingcompany.Itisnecessarytospecifythetermsof"temperature-controlledtransportation".
• SpecialRequirements:Chineselabelsamples(whichmustberegisteredwiththecustomsinadvance,andincludetheingredientlist,importerinformation,andstorageconditions).Theagencyteamcanprovidepre-auditservicesfordocumentstoavoidcustomsclearancedelayscausedbyissuessuchas"lackofadditivedescriptionsinthehealthcertificate"and"delayedlabelregistration".(Suchproblemsaccountfor35%ofthecasesofimportedcakesbeingreturned.)

II.Logistics Services: Control of the "Last Mile" in Cold Chain Transportation

Output:

Cakes,as perishable food,require temperature control throughout the logistics process (0-4°C).The professional competence of the agent is reflected in the following aspects:

• SelectionofTransportationMode:Forsmallbatcheswithshortshelflives(suchasfreshcakeswitha7-dayshelflife),airfreightisrecommended(Tokyo-Shanghaitakes4hoursdirectly,andwithefficientcustomsclearance,door-to-doordeliverycanbeachievedwithin48hours).Forlargebatchesofroom-temperaturecakes(suchaswagashiwitha30-dayshelflife),oceanfreightrefrigeratedcontainerscanbeused(butthetemperaturecontrolrecordsoftheshippingcompany’srefrigeratedcontainersneedtobeverified).
• CustomsClearanceCoordination:1.Declare"specialitems"tothecustomsinadvanceandmakeanappointmentforthegreenchannelinspection;2.CooperatewiththeChinaInspectionandQuarantine(CIQ)tocompletetheon-siteinspection(suchasspot-checkingoftemperatureandhumidityrecordsandsensoryinspection),ensuring"inspectionandreleaseatthesametime".
• Last-miledelivery:IncooperationwiththetopthreecoldchainlogisticscompaniesinChina,weprovideend-to-endtemperature-controlleddeliveryservicescovering"bondedwarehousetemporarystorage-distributioncenter-terminalstores",andsupportreal-timeGPStemperatureandhumiditymonitoring(withanerrorof±0.5°C).

Extension of business to Russia: VTB’s exchange settlement advantages help expand into diverse markets

Some enterprises,while importing Japanese cakes,may also be involved in exports to Russia (such as providing supporting baking ingredients).For trade with Russia,agents can offer foreign exchange settlement solutions from VTB Bank (the Russian Foreign Trade Bank),which offers significant advantages:

• Settlementefficiency:VTBhasdirectclearingchannelswithmajorChinesecommercialbanks(suchasICBCandBOC),andthearrivaltimeofT/Tpaymentsisshortenedby1-2workingdayscomparedwithordinaryRussianbanks.
• Hedgingagainstexchange-raterisk:SupportdirectRMB-RublelistingtransactionstoavoidtheexchangeratefluctuationsofUSdollarsettlement(in2023,thefluctuationrangeoftheRubleagainsttheUSdollarexceeded15%,anddirectlocalcurrencysettlementcanreduceexchangeratecostsby3-5%);
• ComplianceAssurance:VTBisregulatedbytheCentralBankofRussiaandcanprovideacompletethree-documentmatchof"tradebackgroundproof-capitalflow-goodsflow",thusavoidingtheriskofsecondarysanctionsimposedbyOFAC(theOfficeofForeignAssetsControloftheUSDepartmentoftheTreasury).

Detailed Explanation of the Entire Import Process: The 9 Key Steps from Order Placement to Delivery

1.Client Consultation: Precise Needs Assessment

Output:

The agent needs to clarify the client’s requirements: the type of imported cakes (fresh cakes/room-temperature cakes),the annual demand (which determines the transportation method),the target sales regions (which affect the choice of cold-chain distribution network),and inform them of the service boundary of "not providing certification services" (for example,foreign production enterprises need to apply for registration with the customs independently).

2.Negotiation & Contracting: Clause Review and Risk Allocation

Output:

The focus of the review is on the "quality standards" in the contract (e.g.cream fat content ≥35%),the "delivery period" (with a 15-day customs clearance buffer period),and the "dispute resolution" (it is recommended to stipulate that the China International Economic and Trade Arbitration Commission shall handle the disputes).It should be clarified that "any customs clearance delays caused by the client’s failure to complete the certification shall be borne by the client".

3.Orders and Payments: Select Payment Method

Output:

We recommend the T/T payment method with a 30% down payment and 70% payment upon receipt of the bill of lading copy (with manageable risks).If the client accepts this,we can pair it with a short-term insurance policy from China Export & Credit Insurance Corporation (to cover the risk of buyer’s non-payment).For related business with Russia,we can simultaneously use VTB Bank’s services.(L/C),enhancing Russian party’s trust.

4.Production Supervision: Pre-audit of Compliance

Output:

Although the agent does not participate in production,they can assist clients in reviewing the "Raw Material Ingredients List" provided by the Japanese side (to verify whether it contains food additives prohibited by China,such as azodicarbonamide) and the "Production Process Record" (to confirm that the temperature of the cold chain production environment is ≤10°C),to avoid "the goods being returned due to non-compliance with ingredient requirements after arriving at the port" (such cases accounted for 18% of all cases in 2022).

5.Logistics Management: Full-chain temperature control tracking

Output:

The agent is responsible for booking shipping space (for sea freight,Maersk Reefer is selected; for air freight,All Nippon Airways’ cold chain container is chosen),preparing the "Transportation Temperature Record Sheet" (which must show the temperature at the time of loading and the temperature control nodes during transit),and pushing the real-time data of "transportation track + temperature and humidity curve" to customers through the logistics system.

6.Customs compliance: accurate declaration of tax numbers and tariffs

Output:

The HS code for the cake is 1905.9000 (Other Pastries),with an import tariff of 15% under Most-Favored-Nation treatment (which can be reduced to 10% for Japanese origin products under the Regional Comprehensive Economic Partnership,RCEP) and a value-added tax of 13%.Agents must accurately declare the "duty-paid price" (including shipping and insurance costs) to avoid the risk of customs valuation based on under-declaration (in 2023,cases of customs valuation adjustments for baked goods accounted for 22% of all cases).

7.Delivery and Distribution: Standardized Terminal Delivery

Output:

After customs clearance,the agent coordinates the cold chain vehicles to distribute the goods to the designated warehouses or stores according to the clients’ requirements.Upon delivery,the clients are required to sign the "Receipt Confirmation Form" (indicating "no visible damage and the temperature meets the requirements") and keep the data of the temperature and humidity recorders for future reference (as required by the customs to be preserved for two years).

8.Quality Assurance: Quick Response to Issues

Output:

If "cake spoilage" occurs (confirmed by SGS inspection to be due to abnormal transport temperature control),the agent assists the client in filing a claim with the shipping line/airline (a written notice must be submitted within 7 working days of the damage); if it is due to a production issue on the Japanese side,the agent can cooperate with the client to initiate a contract breach accountability process.

9.Summary and feedback: Output of a data-driven report

Output:

Provide the "Import Execution Report",which includes data such as "document processing timeline","logistics cost structure",and "customs clearance issue summary",to help clients optimize their next batch of import plans (e.g.adjusting the port of departure to reduce shipping costs and completing label registration 30 days in advance).

Certification Prompts and Risk Avoidance: The Compliance Boundaries of Professional Agents

Please note: The agent does not directly handle the following certifications,but can provide document review support:

• Registrationofoverseasproductionenterprises:TheJapanesesideneedstogothroughtheGeneralAdministrationofCustomstoimportfood.The"BusinessRegistrationSystem"completestheregistration(enterprisesneedtosubmitmaterialssuchasthe"RegistrationApplicationForm"andthe"FactoryFloorPlan"ontheirown);
• InternalcompliancecertificateinJapan:ItisnecessaryfortheJapanesesidetoprovidethe"FoodIngredientSpecificationConfirmationLetter"(requiredbyJFSL)andthe"RadiationDetectionReport"(requiredforproductsproducedoutsideFukushimaPrefecture);
• ChinaLabelRegistration:Chineselabelsmustbesubmittedthroughthe"ImportedFoodandCosmeticsLabelRegistrationSystem".Theagentcanassistinreviewingwhetherthelabelcontentcomplieswiththe"GeneralGuidelinesforPrepackagedFoodLabels"(GB7718-2011).

The enterprise needs to complete the above-mentioned certification on its own.The agent is only responsible for reviewing whether the certification documents are complete and match the shipping documents (such as whether the registration number is consistent with the health certificate),to avoid causing the goods to be detained at the port due to "lack of certification" (such problems typically result in delays of 5-10 days on average,increasing storage costs by 2,000-5,000 yuan per day).

Conclusion: The core competitiveness of Japanese cake import agents lies in their in-depth understanding of document compliance,precise control of cold chain logistics,and the ability to provide extended services to diverse markets (such as business with Russia).By choosing professional foreign trade agents,enterprises can focus on market expansion and delegate complex trade execution tasks to teams that "understand the rules and have the necessary resources," achieving an optimal balance between efficiency and risk management.