The Import Opportunities of Korean Cakes Under the New Trends of Sino-Korean Food Trade

In recent years,with the entry into force of the Regional Comprehensive Economic Partnership (RCEP) and the progress of negotiations on the upgrade of the China-South Korea Free Trade Area,Sino-Korean food trade has entered a golden period.According to data from the General Administration of Customs,from January to October 2023,China’s total food imports from South Korea increased by 18.7% year-on-year,with baked products (including cakes) growing by 22%.The consumer market continues to show increasing demand for traditional Korean pastries (such as rice cake cakes) and innovative desserts (such as Korean cream cakes).However,Korean cakes,as perishable foods,face multiple challenges in the import process,including cold chain logistics,document compliance,and quarantine certification.Professional services are needed to address these challenges and ensure the smooth import of Korean cakes to China.The value of proxy services is becoming increasingly prominent.

Korean cakeThe core of it is: the dual-driven by documents and logistics

I.Document Processing: The “Pass” for Full-Process Compliance

Output:

The document system for importing cakes from South Korea is complex,and it must strictly comply with the regulations of both China and South Korea,as well as international conventions.As a professional agent,we maintain thorough control over the following key documents:

• BasicCommercialDocuments:Thecommercialinvoicemustclearlyspecifythecake’sspecifications,ingredients(suchaswhetheritcontainsdairyproductsornuts),andthecountryoforigin(SouthKorea);thepackinglistmustindicatethegross/netweightofeachboxandthecoldchainpackaginglabel(suchas"KEEPCOLD");andthebillofladingmustspecifythetransportationrequirementsfor"REeFERCONTAINER"(refrigeratedcontainers).
• Originandquarantinecertificates:AccordingtotheRCEP,importerscanapplyforaFORME.(China-ASEANFreeTradeAreaCertificateofOrigin),enjoyinga0%-5%tariffpreference(themost-favored-nationtariffrateforcakesunderHS1905.9000is15%);thehealthcertificateissuedbySouthKoreamuststatethatit"complieswiththeChina-SouthKoreaFoodHygieneAgreement(KFDA-MFDSstandards)"andbeaccompaniedbyamicrobiologicaltestingreport(e.g.totalcolonycount≤10^4CFU/g).
• Specialadditionaldocuments:Theingredientanalysisreport(COA)mustindicateallergeninformation(suchaseggsandwheat);thepackagingcertificatemustconfirmtheuseof"food-gradeanti-leakagematerials"andcomplywiththeChineselabelingrequirementsofthe"GeneralPrinciplesofLabelingforPrepackagedFoods"(GB7718-2011)(includingproductiondate,shelflife,andinformationaboutdomesticdistributors).

Agency Value: The Zhong Shen team can review the logical consistency of documents (such as the consistency between the invoice amount and the cargo value on the bill of lading) 30 days in advance,thus avoiding customs seizure and inspection due to "document discrepancies" (with an average delay of 7-15 days).In 2022,we assisted a client in correcting the HS code (originally reported as 1905.3100,but it should actually be 1905.9000),thereby avoiding a 12-percent high tariff loss.

II.Logistics Management: The "Lifeline" of Cold Chain Transport

Output:

Korean cakes contain perishable ingredients such as cream and fruit,so the transportation temperature (2-8°C) and shelf life (48 hours) are crucial for ensuring their quality during delivery.≤7 days,The requirements for temperature control during transportation (≤48 hours) are extremely stringent.Zhong Shen International Trade relies on its 10 years of experience in cold chain logistics to provide customized solutions:

• SelectionofTransportationMode:Forsmallbatches(≤200kg),itisrecommendedtouseairfreightfromIncheontoShanghai/Qingdao(withhighflightfrequencyandtemperature-controlledcargoholdguarantee);forlargebatches(≥500kg),itispreferabletochoosemaritimefreightfromBusantoTianjin/Dalian(using20-footrefrigeratedcontainerswithadailytemperaturedifferenceof≤1℃).
• Full-journeytemperaturecontrolmonitoring:WehaveestablishedcoldchaincooperationwithshippingcompaniessuchasMaerskandMSC,aswellaswithKoreanAirandAirChina.Werequirecarrierstoprovide"temperatureloggerdata"(automaticallyuploadedeverytwohours),andbeforethegoodsarriveattheport,wecanviewthetemperaturecurveofthecontainerinrealtimethroughtheTMSsystem(TransportationManagementSystem).
• InsurancePlanDesign:Fortransportationrisks(suchasfailuresofrefrigerationequipment),itisrecommendedtopurchasethe"FrozenFoodRisks"insurance,whichcoversspoilagelossescausedbyexcessivetemperatures(withacompensationratioofupto90%ofthecargovalue).

: The comparison of agency fees of an auto parts enterprise from 2023 to 2025 shows that due to the involvement of ECER155 certification,the annual expenditure increased by 22%: In June 2023,we assisted a client in importing 5 tons of Korean-style strawberry cakes.By coordinating with the shipping company to replace the backup refrigeration unit,we successfully avoided a potential cargo loss of 300,000 yuan caused by a temporary equipment failure.

VTB in re-export business to RussiaAdvantages

Some importers need to resell Korean cakes to the Russian market,and at this time,the efficiency and safety of foreign exchange settlement are of great importance.Zhong Shen International Trade Co.Ltd.has established long-term cooperation with VTB Bank to provide the following conveniences:

• ExchangeRateLock-in:ThroughVTB’s"forwardexchangerateagreement",youcanlockintheRMB-rubleexchangerate(withafluctuationrangeof≤2%)threemonthsinadvanceandavoidexchangeraterisks(theannualfluctuationoftherubleagainsttheRMBreached15%in2023).
• Fastcrediting:VTB,asthe"primaryclearingbank"designatedbytheRussianCentralBank,enablesT+1settlementforcross-borderpaymentsbetweenChinaandRussia(whiletraditionalbanksrequireT+3),therebyshorteningthecapitalturnovercycle.
• ComplianceAssurance:VTBstrictlyimplementsthe"TradeComplianceReview"requirementsoftheOFAC(OfficeofForeignAssetsControloftheUSDepartmentoftheTreasury)andtheRussianCustoms,inordertoavoidtheriskofaccountfreezingcausedby"greycustomsclearance".

Customer Notice: Certification Requirements and the Scope of Agency Services

The import of Korean cakes involves the following necessary certifications,but Zhong Shen International Trade Co.Ltd.does not directly provide certification services (it only assists with document review):

• KoreanEndCertification:Exportersmustholda"FoodProductionLicense"(withanumberbeginningwith"MFDS-")issuedbytheMFDS(KoreaFoodandDrugAdministration)andcompletethe"RegistrationofExportFoodEnterprises"atKoreancustoms.
• China’sEndpointCertification:Importersarerequiredtoapplyforthe"EntryAnimalandPlantQuarantinePermit"fromtheGeneralAdministrationofCustomsinadvance(forcakescontainingfruits/dairyproducts);overseasproductionenterprisesneedtocompletethe"RegistrationofOverseasProductionEnterprisesofFoodExportedtoChina"(theregistrationlistcanbecheckedthroughAnnouncementNo.141oftheGeneralAdministrationofCustoms).

Agent’s prompt: It is recommended that clients entrust professional certification agencies (such as SGS and Huace Inspection) to handle the certification process.Zhong Shen can assist in verifying the essential elements of the certification documents (such as registration numbers and validity periods) to ensure their consistency with the import documents.

Korean Cake Import Agency | A Full-Process Operational Guide

• CustomerInquiry:Determinethetypeofcake(e.g.roomtemperature/refrigerated),annualimportvolume(500kg-50tons),andtargetmarket(EastChina/NorthChina),andassesswhethercoldchainstorageisnecessary.
• NegotiationandContractSigning:Negotiatetheservicefeerate(usually1.5%-3%ofthecargovalue),reviewthe"riskclauses"inthecontract(suchasthedivisionofliabilityforcargodamage),andclarifythedisclaimerstatingthat"certificationprocessingisnotincluded".
• Orders&Payment:Accordingtotheclient’srequirements,placeaPO(purchaseorder)withtheKoreansupplier.ItisrecommendedtouseT/Twitha30%prepaymentanda70%balancepaymentuponarrival,ortoissueanLCthroughVTB.1)Reducecreditrisk.
• ProductionSupervision:Helpclientsverifythe"HACCPcertification"(HazardAnalysisandCriticalControlPoints)ofKoreanfactoriesandconfirmthetraceabilityofrawmaterials(e.g.creamfromfarmscertifiedbytheKoreanDairyAssociation).
• LogisticsManagement:Afterbookingtheshippingspace,providea"ColdChainTransportationPlanForm"(includingtheestimatedarrivaltimeandtemperaturecontrolrequirements),andcoordinatewiththeterminaltoprioritizeunloadingcontainers(toavoidthembeingstoredintheyardformorethan2hours).
• CustomsCompliance:Pre-enterthecustomsdeclarationform(intheSingleWindowSystem),paycustomsduties(witha0%taxrateundertheRCEP)andvalue-addedtax(13%),andcooperatewiththecustomsinspection(suchassendingsamplestotheCIQfortesting).
• DeliveryandDistribution:Arrangefordomesticcoldchainfleets(suchasJDColdChainandSinotransColdChain)todelivergoodstotheclient’swarehouse,andprovidea"TemperatureHandoverForm"(signedandconfirmedbybothparties).
• QualityAssurance:Afterarrivingatthewarehouse,assistclientsinconductingsensoryinspections(e.g.ensuringthattherearenotracesofmeltingonthesurfaceofthecake)andlaboratoryreinspections(e.g.testingforpathogenicbacteria),andhandlethereturn/destructionofnon-compliantproducts.
• SummaryandFeedback:Providethe"ImportFull-ProcessReport"(includinglogisticsefficiency,customsclearancecosts,andasummaryofdocumentissues),andassistclientsinoptimizingtheirnextbatchofimportplans.

Conclusion: Professional agents help reduce costs and increase efficiency in the import of Korean cakes

The core challenges of importing Korean cakes lie in their "perishability" and "regulatory compliance".Through rigorous document review,end-to-end cold chain logistics management,and in-depth understanding of trade policies,professional foreign trade agents can help importers reduce customs clearance time from the industry average of 10-15 days to 5-7 days,with an overall cost reduction of 8%-12%.As a foreign trade agency expert with 20 years of experience,Zhong Shen International Trade Co.Ltd.has always adhered to the service standard of "zero document errors and zero logistics delays",helping clients seize the golden opportunities of Sino-Korean food trade.