1.Under the new situation of Sino-Korean food tradeRequirements

With the deepening implementation of the RCEP agreement,the level of trade facilitation between China and South Korea continues to improve.South Korean baked goods,with their "small but beautiful" product positioning and differentiated flavors,have seen their share of the Chinese imported food market rise year by year.According to data from the General Administration of Customs in 2023,the import volume of South Korean pastry products increased by 18.7% year-on-year.Consumers’ demand for Korean desserts such as mousse and macarons has driven the import needs of a large number of small and medium-sized traders.However,importing South Korean cakes involves multiple professional thresholds,including HS code classification (usually 1905.9000),animal and plant quarantine,and document compliance.It is essential to choose a partner with extensive experience in these areas to ensure smooth import operations.An agent becomes the key to reducing customs clearance risks and improving efficiency.

II.Core competencies of import agents: dual control over documents and logistics

(1) Document Processing: The "Lifeline" of Trade Compliance

Output:

Importing cakes from South Korea requires submitting over 10 core documents,and the professionalism of the agent team directly affects the customs clearance efficiency.Key documents include:

• CommercialDocuments:Commericalinvoice(whichshalllisttheproductcomponents,specifications,andunitprice,andbeconsistentwiththecontract)andpackinglist(whichshallindicatethegrossweight/netweightandvolume,andmatchthebilloflading);
• Certificate:FORM-KCertificate(entitlestotariffpreferencesundertheRCEP,whichmustbeissuedbytheSouthKoreanCustomsoranauthorizedagency.Thecertificatemustverifythestampoftheissuingagencyandthecompany’sregistrationnumber);
• HealthCertificate(HC):The"FoodExportHealthCertificate"issuedbytheMinistryofFoodandDrugSafety(MFDS)ofSouthKoreamustindicatethat"itcomplieswiththefoodsafetystandardsofChinaandSouthKorea",andtheingredientlistmustbecomparedwithChina’sGB2760(FoodAdditivesUseStandards);
• transportationdocuments:BillofladingB/LTradedisputesettlementmechanismsorTheairwaybill(AWB)shouldnotethe"cleanbilloflading"toavoidbanksrefusingpaymentdueto"surfacedefectsofthegoods".

In practice,there have been cases where clients failed to indicate "trans fat-free" on the invoices,resulting in customs requiring additional testing.The agency team prevented such issues by conducting advance document review before export,thus avoiding the incurrence of demurrage fees (averaging around USD 500 per day) after the goods arrived at the port.

(2) Logistics Management: A Balancing Act of Full-Chain Timeliness and Cost

Output:

The logistics solution needs to be comprehensively formulated based on the value of the goods,delivery time,and volume of the shipment.

• SelectionofTransportationMode:Forsmallbatchhigh-valueitems(suchashigh-endhandmadecakes),itisrecommendedtouseairfreight(IncheontoShanghai,withadeliverytimeof48hours)toreducestoragelosses.Forlarge-scaleshipments(≥2,000kg),seafreightLCL(CFS-CFS)isrecommended,whichis60%-70%cheaperthanairfreight,buta15-20daytransportationcycleneedstobereserved.
• Destinationportoperation:Theagencyteamneedstotransmitthe"manifestinformation"tothecustomsthreedaysinadvancetoavoidinspectionscausedby"arrivingattheportwithoutdeclaration";duringthedocumentexchangeprocess,itisnecessarytocheckwhethertheCONSIGNEEonthebillofladingmatchesthatontheArrivalNoticetopreventdisputesovertheownershipofthegoods.
• Domesticdistribution:Weprovide"door-to-door"servicesaccordingtocustomerneeds.Forcold-chaincakes,wecoordinatewithlogisticsprovidersthatholdGSPcertificationtoensurethatthetemperature(2-8°C)iscontrolledthroughouttheentireprocess.Weoncedesignedathree-leveldistributionplanforachaindessertshop,covering"ShanghaiYangshanPort→EastChinawarehouse→stores",whichreducedthedeliverytimefrom72hoursto48hours.

III.Detailed explanation of the 9-step agency process: Full-cycle services from order placement to delivery

(I) Customer inquiry & service confirmation

Output:

The agency team first confirms the import requirements (such as product type: frozen/room-temperature cakes,annual import volume,target market),clarifies the service boundaries (excluding product certification),and provides an "Import Feasibility Analysis Report" covering key information including HS code recommendations,estimated tariffs (15% Most-Favored-Nation tariff rate,which can be reduced to 12% under the Regional Comprehensive Economic Partnership),and regulatory requirements (A: Inspection and Quarantine of Inbound Goods).

(II) Contract negotiation & risk review

Output:

Assist clients in negotiating trade terms with Korean suppliers (recommending CIF Shanghai,with the supplier assuming the risk of transportation to the destination port),review the "quality clauses" in the contract (such as "subject to the inspection results upon arrival"),and the "claim period" (suggested 90 days to cover the domestic sales cycle),to avoid difficulties in protecting rights due to "non-conformance of goods".

(III) Payment arrangement & fund supervision

Output:

Recommend payment methods based on the customer’s credit status: For new suppliers,we suggest a 30% prepayment (T/T in advance) plus 70% upon receipt of the bill of lading copy; for long-term cooperation,other payment methods can be considered.(Letter of Credit),the agency team assists in reviewing the "soft clauses" of the letter of credit (such as "the buyer’s representative needs to sign and confirm the quality"),thereby reducing the risk of disputes over quality issues.Risks.

(IV) Production monitoring & quality pre-control

Output:

If requested by the client,we can entrust third-party organizations such as SGS to conduct pre-shipment inspections (PSI),focusing on verifying the source of raw materials (e.g.whether the cream is animal cream),shelf life (which must be ≥6 months),and packaging compliance (no Chinese labels but with reserved space for labeling).We once found that the production date of a batch of cakes was printed unclear,and promptly required the manufacturer to rework the product to avoid it being deemed "unqualified in terms of labeling" by customs upon arrival and being returned to the sender.

(V) Customs declaration & duty/tax payment

Output:

When pre-entering the customs declaration form,it is necessary to accurately fill in the "specifications and models" (such as "100g/piece,individually packaged"),"country of origin" (South Korea),and "purpose" (direct sales),to avoid being subject to customs control and inspection due to incomplete declaration elements.Regarding taxes and fees,the agent can assist in applying for a "tariff guarantee",enabling "release before tax payment",thereby alleviating the client’s financial pressure.

IV.Expansion of Business with Russia: VTBUnique advantages

Some clients route their goods through South Korea to the Russian market,at which point VTB Bank (the Russian Foreign Trade Bank) offers more advantageous foreign exchange settlement services.

• Multi-currencysettlement:SupportdirectsettlementinUSD,EUR,CNY,andrubles,avoidingcross-exchangeratelosses;
• Exchangeratelockingtool:Provideforwardforeignexchangesettlementandpurchaseservices,whichcanlockintheexchangeratewithinsixmonthsandavoidtheriskofrublefluctuations(thefluctuationrangeoftherubleagainsttheRMBreached±12%in2023);
• Cross-borderpaymentefficiency:VTBhasestablisheddirectconnectionchannelswithmajorChinesebanks(suchasBankofChina),reducingthetimerequiredforcross-borderremittancesto1-2workingdays(comparedto3-5daysforordinarybanks).Theagencyteamhasassistedmorethan10clientsincompletingtheconversionofforeignexchangeforre-exporttoRussia,savinganaverageof4%infinancialcosts.

5.Compliance Reminder: The Boundaries of Import Certification and Client Responsibilities

Please note: Our company does not directly provide product certification services,but we can assist in organizing the materials required for certification.Clients are responsible for completing the following certifications independently:

• KoreanEnd:FoodproductionenterprisesneedtoregisterwiththeMinistryofFoodandDrugSafety(MFDS)ofSouthKoreatoobtainthe"ExportFoodManufacturerRegistrationCertificate".
• China’sEnd:Foreignproductionenterprisesarerequiredtocompletetheregistrationprocessinthe"RegistrationManagementSystemforOverseasFoodProductionEnterprisesImportedintoChina"oftheGeneralAdministrationofCustoms(inaccordancewithDecreeNo.141of2021).TheChineselabelsmustcomplywithGB7718(GeneralPrinciplesofLabelingforPrepackagedFoods).Itisrecommendedtostartthelabelregistrationprocessthreemonthsinadvance.
• SpecialRequirements:Iftheproductcontainsdairyingredients,anadditional"HealthCertificateforDairyProductsExportedtoChina"(issuedbytheMinistryofAgriculture,FoodandRuralAffairsoftheRepublicofKorea)isrequired.

VI.The Core Value of Choosing a Professional Agent: Risk Mitigation and Cost Optimization

Compared with importing goods by oneself,the value of professional agents lies in the following aspects:

• Riskreduction:The"DocumentErrorWarningDatabase"accumulatedover20yearsofexperiencecanidentifymorethan90%ofpotentialproblems(suchasmisclassifyingtheHScodeto1905.3100,resultinginoverpaymentoftariffs);
• Professionalsupport:Reducethecomprehensivecostby15%-20%throughacombinationoflogisticssolutions(suchasseafreightLCL+domesticdistribution).Once,wehelpedaclientreducethelogisticscostperkilogramfromUSD2.8toUSD2.3;
• EfficiencyImprovement:Full-processprogressvisualizationmanagement(TMSsystemqueryavailable),SMS/emailremindersforkeynodes(suchasarrivalatport,customsclearance,anddelivery),andaveragecustomsclearancetimecontrolledwithin3-5workingdays(7-10daysforself-handling).

Conclusion: Importing Korean cakes is not just a commercial act of "buying globally",but also a comprehensive test of trade compliance and supply chain efficiency.Only by choosing a foreign trade agent with dual core capabilities in documentation and logistics can one seize opportunities in the rapidly growing market and achieve "efficient import and worry-free sales".