I.South Korean Cake Imports: Market Opportunities and Analysis of the International Trade Situation

With the deepening of the China-South Korea Free Trade Agreement (FTA) and the entry into force of the Regional Comprehensive Economic Partnership (RCEP),the penetration rate of Korean baked goods in the Chinese market continues to rise.The demand for Korean-style cream cakes,macarons,and other products among young consumers has increased by 15% annually.However,at the same time,The compliance requirements for imported food have also been upgraded with the increasingly stringent regulation of global food trade.Currently,China’s customs authorities implement "double random" inspections (random supervision and random inspection) for imported food.In 2023,the inspection rate of baked products increased by 8% compared with 2020,and they must comply with mandatory standards such as GB 2760 (Standards for the Use of Food Additives) and GB 7718 (General Standards for the Labeling of Prepackaged Foods).The professional intervention of agents has become the key to reducing the risk of customs clearance delays and ensuring the timely delivery of goods.

II.Key aspects of import: Professional control of documents and logistics

(I) Document Processing: Full-Chain Audit to Avoid Rejection Risks

Output:

The import of cakes from South Korea requires providing more than 10 core documents,and the accuracy of each document directly affects the efficiency of customs clearance.

• BasicCommercialDocuments:Commericalinvoice(whichshallindicatethetransactionmodesuchasCIFShanghai,andincludethevalueofthegoodsandspecifications),packinglist(whichshalllistthegrossweight/netweight/volumeandbeconsistentwiththebilloflading),/Billoflading(forelectronicrelease,anelectronicreleaseguaranteemustbeprovided;fortheoriginalcopy,itmustbeexchangedforanewdocumentinatimelymanner);
• AgreementTariffCertificate:FORME(UndertheChina-KoreaFreeTradeAgreement,a0-5%preferentialtaxratecanbeenjoyed,butthisrequirestheissuanceofacertificatebytheSouthKoreancustomsoranauthorizedagency.Itisnecessarytoverifythelogicbetweenthevisadateandtheship’sschedule.)
• SanitationandQualityCertificate:AhealthcertificateissuedbytheMinistryofFoodandDrugSafety(MFDS)ofSouthKorea(whichmustspecifythat"theproductcomplieswithChina’snationalfoodsafetystandards"),andaningredientanalysisreport(listingthetypesandcontentsofadditives,suchasthelimitforbakingpowderammoniumbicarbonate,whichmustbe≤10g/kg);
• Tagregistrationmaterials:Chineselabelsample(mustincludeproductname,ingredients,shelflife,andthedomesticagent’sinformation.Itmustbeapprovedinadvancebythe"ImportedFood"department).LabelFilingSystem"forreview).

The professional value of foreign-trade agency is reflected in:Pre-audit document logical consistency(e.g.a deviation of more than 3% between the bill of lading gross weight and the packing list will trigger a customs query),Help supplement the missing documents(e.g.immediately contact the Korean side to reissue if the Certificate of Origin is found missing the HS code),Anticipate the key points of inspection and verification(High-value cakes often undergo document-goods consistency checks; organize quality inspection reports in advance for inspection).

(II) Logistics Management: Dual Guarantee of Cold Chain & Timeliness

Output:

Most cakes in South Korea are short-shelf products (with a shelf life of 7-15 days),so the logistics solution needs to balance cost and timeliness.

• SelectionofTransportationMode:Forsmallbatches(≤200kg),airfreightisrecommended(Incheon-Shanghai,a4-hourflight,andthegoodscanreachtheEastChinamarketwithin24hoursaftercustomsclearance);forlargebatches(≥500kg),seafreightLCLispreferred(Busan-Qingdao,a2-dayflight,withcoldchaincontainers).
• Coldchaintemperaturecontrolrequirements:ItisnecessarytouseReefercontainers(withatemperaturecontrolrangeof2-8°C).Theagentneedstoconfirmtheremainingtemperaturerecords(REEC)oftherefrigeratedcontainerswiththeshippingcompany/airlineinadvance,andtransmitthemanifestdatatothecustoms3daysbeforearrival(ifthedataisnottransmittedintime,theportdetentionfeewillincreaseby30%).
• Destinationportoperation:Duringthedocumentexchangeprocess,itisnecessarytodistinguishbetweenelectronicrelease(exchangingthebillofladingwithanelectronicreleaseguaranteeandacopyofthebilloflading)andoriginaldocuments(whichrequirebankendorsement).Theagentcancoordinatewiththeshippingagenttohandletheprocessurgently(thenormaldocumentexchangeprocesstakes1-2workingdays,whiletheurgentprocesscanbeshortenedto4hours).Aftercustomsclearance,domesticdistributionrequirescoordinatingwithprofessionalcoldchainlogistics(suchasJDCoolChainandSFExpressCoolTransport)toensurethatthetemperaturefluctuationduringthe"lastmile"is≤2℃.

III.Business Expansion into Russia: VTBAdvantage: Reduce the risk of cross-border settlement

Some clients export South Korean cakes to Russia via transit or directly to Russia.When it comes to ruble settlements,choosing VTB Bank (Russian Foreign Trade Bank) for currency conversion can significantly improve efficiency.

• Channelstability:Asamajorstate-ownedbankinRussia,VTBhasestablisheddirectclearingchannelswithmajorChinesecommercialbanks(suchasBankofChinaandICBC)toavoidfeeschargedbyintermediarybanksinthirdcountries(savinganaverageof1-2%intransactionfees).
• Theexchangeraterespondsquickly:VTBoffersareal-timeexchangeratelockingservice,andagentscanassistclientsinlockingtheexchangerateoftherubleagainsttheRMBatthetimeofsigningtheorder(forexample,aspotexchangerateof6.8,whichwillbesettledaccordingtothisratewithin30daysafterlockingtoavoidtheriskofexchangeratefluctuations).
• DocumentSimplification:ThroughVTB,wehandleLettersofCredit(L/Cs).WhenprocessingL/Cs,thereviewstandardsfordocumentsarehighlyconsistentwithinternationalpractices(UCP600),whichreducesthenumberofrejectionsduetodiscrepancies(theL/CrejectionrateunderVTBin2023wasonly1.2%,lowerthantheindustryaverageof3%).

IV.Certification Tips: Compliance Boundaries That Clients Need to Know

Please note: Our company does not directly provide product certification services,but we can provide guidance on key certification requirements and the application process:

• RegistrationofOverseasFoodProductionEnterprisesforImport:Koreancakeproductionenterprisesarerequiredtocompletetheregistrationinthe"RegistrationandManagementSystemforOverseasFoodProductionEnterprises"oftheGeneralAdministrationofCustoms(theregistrationnumberformatisKR+14digits).Productsfromunregisteredenterpriseswillbereturnedtothesender.
• ApprovalforInspectionandQuarantineofImportedAnimalsandPlants:Ifthecakecontainsrawcream(milksource)orpoultryeggrawmaterials,youneedtoapplyforthe"Entry-ExitQuarantinePermitforAnimalsandPlants"fromthecustomsinadvance(theapprovalperiodis20-30workingdays,andaquarantinecertificatefromthesourceoftherawmaterialsisrequired);
• SpecialFunctionCertification:Forproductsclaimingtobe"lowsugar"(withasugarcontentof≤5g/100g)or"organic",theymustprovidecertificationdocumentsfromofficialKoreanorinternationalauthoritativeinstitutions(suchasEUOrganic),otherwise,therelevantclaimscannotbeusedonChineselabels.

Clients can entrust third-party testing agencies (such as SGS and Huace Testing) to complete the certification process.Our company can assist in reviewing the completeness of the certification documents (for example,organic certification must be within the validity period,and the certification scope must include baked goods).

5.Full-process foreign trade agency services: a closed-loop management from consultation to feedback

Taking our standardized service process as an example,Covering 9 major stages to ensure full control throughout the entire process:

• CustomerInquiry:ThroughHScodepre-classification(e.g.cakescorrespondtoHS1905.9000,MFNtariffrate15%,China-KoreaFTAagreementrate5%)andingredientanalysis(whetheritcontainsdairy/eggproducts),clarifythedifficultyofcustomsclearance;
• NegotiationandContractSigning:Reviewthequalityclausesinthecontract(suchasmicrobiologicalindicators:totalcolonycount≤10^4CFU/g),paymentmethods(itisrecommendedtouseL/Catsighttoreducetheriskofprepayment),andhandlingofnon-conformanceissues(claimscanbemadeforshortdeliveriesexceeding5%);
• Orders&Payment:HelpclientscompletepaymentsviaT/T(30%prepayment+70%paymentuponarrival)orL/C(theissuingbankmustbeamajorSouthKoreanbanksuchasKBorShinhanBank);
• ProductionSupervision:Upontheclient’srequest,wecancoordinatethird-partyinspections(suchasSGS)toconfirmthattheproductspecifications(e.g.cakediameterof20cm±1cm)andpackaging(moisture-proofaluminumfoil+foambox)complywiththecontractrequirements.
• LogisticsManagement:Afterbookingtheshippingspace,wewillprovidetheshipname/voyagenumber/estimatedtimeofarrival(ETD/ETA),andupdatethelogisticsstatusdaily(suchasearlywarningsofabnormaltemperaturesinrefrigeratedcontainers).
• CustomsCompliance:Pre-enterthecustomsdeclarationform(theHScodeanddeclarationelementsmustbeconsistentwiththeactualsituation),calculatethetariff(thecustomsclearanceprice=CIFprice×exchangerate×agreementtariffrate),andcooperatewiththecustomsinspection(suchasopeningtheboxtocheckthelabelsandsendingthesamplesforinspection);
• DeliveryandDistribution:Aftercustomsclearance,wewillarrangedomesticdeliverywithin24hours,providethelogisticstrackingnumber,andfollowuponthedeliveryconfirmation.
• QualityAssurance:Within72hoursafterthearrivalofthegoods,completetheinitialinspection(ifanybulgingboxesorspoiledgoodsarefound,assisttheclientinclaimingcompensationfromtheKoreanside);
• SummaryandFeedback:Provideafullreportonthecustomsclearanceprocess(includingthecustomsdeclarationnumber,taxpaymentreceipts,andinspectionrecords),settlethefinalpayment,andarchivethedocuments.

Through professional control of the entire process,our company can shorten the customs clearance time for Korean cake imports from the industry average of 10-15 days to 5-7 days (without inspection),effectively reducing additional costs such as port detention fees and storage fees,and helping clients quickly seize market opportunities.