1.Overview of the current status and import trends of coffee trade between China and South Korea

In recent years,China’s coffee consumption market has led the global market with an average annual growth rate of 15%.Among them,South Korean coffee,with labels such as "Korean flavor" and "convenient ready-to-drink",has continued to gain popularity among young consumers.According to customs data,from January to October 2023,South Korean coffee (HS code 09012100 instant coffee and 09012200 roasted coffee beans) exports to China increased by 22% year-on-year,mainly concentrated in the three major ports of Shanghai,Qingdao,and Tianjin.

At the policy level,after the China-South Korea Free Trade Agreement (FTA) came into effect,the tariff on instant coffee that meets the rules of origin has been reduced to 0% (subject to providing a FORM-K certificate).The tariff on roasted coffee beans has gradually decreased from 8% to 0% by 2025,significantly reducing import costs.However,it should be noted that customs is becoming stricter in reviewing rules of origin such as "fully obtained" and "regional value content",and imported coffee must comply with GB 31602-2015 "National Food Safety Standard for Dried Aquatic Products" (for coffee powder) and GB 7718-2011 "General Principles for Labeling of Prepackaged Foods" (Chinese labeling requirements).In the inspection and quarantine process,the sampling rate for pesticide residues and microbiological indicators is as high as 15%.

II.Core competence: Professional barriers in documentation and logistics

(I) Documentation: accuracy determines clearance efficiency

Output:

For coffee imports into South Korea,it is necessary to prepare all the core documents,including "two certificates and three invoices":

• Officialdocuments:TheHealthCertificateissuedbytheMinistryofFoodandDrugSafety(MFDS)ofSouthKorea,andtheForm-KCertificateofOriginundertheChina-SouthKoreaFreeTradeAgreement(FTA);
• Commercialdocuments:CommercialInvoice(CI),PackingList(PL),/BillofLading(B/L);
• Supplementarydocuments:Ingredienttestingreport(includingcaffeinecontentandpesticideresiduedata)andasampleoftheChineselabel(whichmustindicatethecountryoforigin,thedistributor,andthenutritionalinformationtable).

With 20 years of experience in documentary processing,we can quickly identify key items in FORM-K,such as whether the HS code matches the actual goods and whether the rules of origin (WO/PSR) are filled out correctly,thus avoiding the return of documents due to discrepancies in the documents (with an average return rate lower than 0.5% of the industry standard).At the same time,by directly connecting to the customs single window system,we achieve "zero error" in the pre-entry of customs declarations,and the clearance efficiency is 30% shorter than the industry average.

(II) Logistics Management: End-to-End Cost and Time Optimization

Output:

Korea’s coffee import transportation is mainly by sea (accounting for 85%),with the main routes being Busan-Shanghai (20 days) and Busan-Qingdao (18 days); for urgent orders,air transport can be chosen (Incheon-Beijing/Shanghai,5-7 days).Zhong Shen International Trade Co.Ltd.tailors logistics solutions based on clients’ needs:

• FullContainerLoad(FCL)bySea:Applicabletocustomerswithamonthlyimportvolumeof≥2,000kg,theycanobtaina10%-15%discountonfreightchargesthroughlong-termagreementswithshippingcompaniessuchasMaerskandHanjinShipping.
• Less-than-ContainerLoad(LCL):Forsmall-scalecustomers,theycansharecontainers,whichhelpsreducetheunitcost.
• Multimodaltransportation:There-exportbusinesstoRussiacanachieve"door-to-doortransportationfromSouthKoreatoChinaandRussia"throughtheTIRConvention(InternationalRoadTransportConvention),reducingthecross-borderdocumentexchangeprocess.

In addition,the agent arranges full coverage marine all-risks insurance (covering risks of water damage and breakage during transportation) and provides a cargo tracking system (TMS),allowing clients to view the container’s location and estimated arrival time in real time.

III.Business Expansion into Russia: VTBIts advantages in compliance and efficiency

Due to changes in the international settlement environment,the demand for triangular trade between China,Russia,and South Korea (such as South Korean coffee being re-exported to Russia via China) has surged.China Shenzhen International Trade Co.Ltd.relies on its partnership with Russia toThe strategic cooperation with the bank (VTB) offers clients three major advantages in foreign exchange settlement:

• Settlingtransactionsinlocalcurrencyreducestheexchangeraterisk:SupportdirectclearinginRMB/RUBtoavoidfluctuationsintheUSdollarexchangerate(thefluctuationrangeoftheUSdollaragainsttheRMBreached5.8%in2023);
• Settlementchannelstable:ByconnectingtoVTB’sinternalsystemthroughCIPS(theCross-BorderInterbankPaymentSystemofthePeople’sBankofChina),thesettlementperiodisshortenedby3-5workingdayscomparedwiththetraditionalSWIFTsystem;
• Complianceguarantee:Strictlymatchthethreeflowsof"goods-documents-payments"(consistentinformationofthebilloflading,customsdeclarationform,andpaymentslip),toavoidtheriskofbeing"monitoredbytheforeignexchangebureau".

It should be noted that for business with Russia,the contract must specify "Settlement Bank: VTB Moscow" and "Currency: CNY/RUB",and a note should be added during customs declaration.avoiding customs valuation disputes.

IV.Full-process operation of import agency: detailed control from consultation to delivery

1.Customer Inquiry: Needs Diagnosis and Risk Prediction

Output:

Initial communication needs to clarify: coffee type (instant/roasted beans/ready-to-drink),HS code (determines tariff rate),monthly import volume (affects logistics plan),target port (Shanghai clearance focuses on label audit,Qingdao focuses on inspection efficiency),clearance timeliness requirement (urgent orders need advance declaration" mode).

2.Negotiation and signing of the contract: review of the terms and transfer of risks

Output:

The key points of the review include trade terms (it is recommended to use CIF terms,and the agent should control the transportation and insurance),and payment methods (T/T with a 30% advance payment and a 70% payment upon presentation of the bill of lading and electronic release,to avoid risks).soft clauses),quality responsibility (clarify "return possible if unqualified upon arrival inspection").

3.Order execution: payment and production supervision

Output:

The agent assists clients in placing POs (purchase orders) with Korean suppliers and completes cross-border payments to Russian suppliers through VTB (providing payment slips for customs valuation).If requested by clients,the agent may entrust third parties (such as SGS) to conduct production and packing supervision (not an agent service) to ensure that the roasting degree of coffee beans and packaging specifications meet contract requirements.

4.Logistics and Documentation: Collaborative Operation to Ensure Timely Delivery

Output:

After booking a shipping space,the agent simultaneously applies for the FORM-K (which must be submitted three working days before the goods are shipped) and reviews whether the production enterprise is registered on the list of the General Administration of Customs in Decree No.192.After the goods are loaded onto the ship,the agent obtains the bill of lading and prepares the pre-entry data for the customs declaration form (including 22 mandatory items such as product name,specifications,gross weight,etc.).

5.Customs Declaration: Calculation of Taxes and Fees and Coordination with Inspection

Output:

When declaring customs,you need to submit the "Two Certificates and Three Documents" and a sample of the Chinese label (for the customs to verify the compliance of the label).The system automatically calculates the taxes and fees (0% tariff,13% value-added tax,and the customs clearance price is CIF).If there is an inspection (with a probability of about 8% to 10%),the agent will assist in opening the box,provide the inspection report,and follow up on the rectification (such as reprinting the label).

6.Delivery and After-sales: Distribution and Quality Assurance

Output:

After customs clearance,the agent will arrange for the delivery of the goods.Deliver to the client’s warehouse (or enter the bonded warehouse for batch-by-batch withdrawal),and provide the "Notice of Release of Imported Goods".Within 7 days after arrival,assist the client in completing the final quality inspection (if any pest damage or moisture damage is found,the agent will assist in negotiating compensation with the insurance company/supplier).

7.Summary and Feedback: Data Archiving and Service Optimization

Output:

Provide the "Import Full Process Report" (including customs clearance time,tax breakdown,and logistics costs),file all documents (with a retention period of 3 years),and optimize the next order service plan based on customer feedback.

5.Compliance Reminder: The Boundaries between Necessary Certifications and Agency Services

For coffee imports from South Korea,clients are required to complete the following certifications/registrations independently (Zhong Shen International Trade Co.Ltd.does not provide processing services,but can assist in preparing the necessary materials):

• RegistrationofOverseasFoodProductionEnterprisesforImport:ThroughGeneralAdministrationofCustoms"ImportedFoodToapplyforthe"BusinessRegistrationSystem",youneedtosubmitthebusinesslicenseoftheKoreanproductionenterprise,MFDScertification,etc.(theprocesstakesabout45days);
• Chineselabelfiling:ItmustcomplywiththerequirementsofGB7718-2011(forexample,"coffee"mustbelabeledwith"Ingredients:coffeebeans,vegetablefatpowder"),andafterthefilingisapproved,thelabelsamplesmustbesubmittedwiththegoods.
• Third-partytesting:Thecustomsmayrequiretestingforpesticideresidues(suchasimidacloprid)andmicroorganisms(suchastotalcoliformcount)(withatestingcycleof7-10days).

Since January 2025,Russia has made it mandatory to register for EPR (Extended Producer Responsibility): Not completing the registration of overseas production enterprises or failing to comply with labeling requirements will result in the return or destruction of goods (in 2023,Qingdao Customs returned such goods worth over 5 million yuan).It is recommended to start the certification process three months in advance.

VI.Conclusion: Professional agents are the "customs clearance accelerators" for coffee imports

The import of coffee from South Korea involves coordination across multiple stages,including documentation,logistics,and compliance.Any oversight could lead to port delays,fines,or customer losses.With 20 years of experience in foreign trade agency services,Zhong Shen International Trade Co.Ltd.has built core competencies in areas such as document processing (with a 0.5% low rejection rate),logistics optimization (reducing shipping costs by 10%),and compliance guidance (avoiding 80% of common risks),helping enterprises focus on market expansion and ensuring that "Korean flavors" efficiently reach Chinese consumers.