1.New Trends in Sino-Korean Food Trade: Market Opportunities and Policy Challenges for Imported Cakes

In recent years,with the deepening implementation of the RCEP agreement,the level of food trade facilitation between China and South Korea has significantly improved.South Korean imported cakes,with their exquisite craftsmanship and distinctive flavors,have gained popularity in China’s baking market,high-end dessert shops,and other channels.The demand for channels has surged.According to the 2023 data from the General Administration of Customs,the import value of Korean pastry products increased by 28% year-on-year,with categories such as cream cakes and traditional Korean rice cakes seeing growth rates exceeding 40%.

However,opportunities come with challenges: starting from 2023,the customs authorities will strengthen the management of the registration of overseas food production enterprises (GACC registration),requiring South Korean cake production enterprises to pass the review of the General Administration of Customs and obtain a 14-digit registration number.At the same time,the inspection and quarantine authorities will become stricter in testing microbiological indicators (such as total colony count and Salmonella) and food additives (which must comply with the GB 2760 standard).Documents that are missing or data that do not match will directly lead to the return of the goods.

II.The core of importing cake agency: the professionalism of document processing determines the efficiency of customs clearance

In the import cake business,document compliance is the "lifeline" of customs clearance.Drawing on 20 yearsExperience in establishing a full-chain single document management system of "preliminary review - correction - declaration" to ensure a zero error rate.

Essential document checklist: Commerical invoice (which must indicate the FOB value and be consistent with the contract),packing list (which lists the gross weight/net weight/volume and matches the bill of lading),Bill of lading (either electronic or original,which must show "Clean on Board"),and Form E(To enjoy the tariff reduction and exemption of the RCEP,the HS code must correspond 100% to the actual product),the South Korean official health certificate (issued by the Ministry of Food and Drug Safety of South Korea (MFDS),and the GACC registration number of the production enterprise must be indicated),and the COA ingredient analysis report (which must include trans fatty acids,additive types and contents,and comply with Chinese standards).

Common Risks and Countermeasures: There was a case where a client mistakenly filled in the HS code as "2106.9090" instead of "8543.7099" in the FORM E,resulting in the customs rejecting the tariff preference and imposing an additional tax of 50,000 yuan.The Zhong Shen team detected this issue through pre-auditing the documents three working days in advance,and immediately coordinated with the Korean exporter to apply for a revised certificate from the Certificate of Origin issuing authority,ultimately avoiding losses.Additionally,for cases where the health certificate was not stamped with the MFDS seal,the team could assist in contacting the Korean official agencies to rectify the situation and ensure timely customs clearance.

III.Full-chain logistics management: temperature control guarantee from Incheon Port to Chinese warehouses

Many imported cakes from South Korea contain perishable ingredients such as butter and fresh cream,and the temperature control management during the logistics process directly affects the product quality.Zhong Shen International Trade Co.Ltd.has established a "maritime transportation/logistics" system to ensure the quality of imported cakes and improve the efficiency of logistics operations.+Temperature Control + Monitoring" Customized Logistics Solution:

• SelectionofTransportationMode:Forbulkimports(over2,000kg),werecommendfullcontainershipping(Incheon-Qingdao/Shanghai,withadeliverytimeof10-15days),whichiscost-effectiveandsuitableforfrozentransport(-18°C).Forurgentordersorhigh-valueproducts(suchaslimited-editioncakes),airfreightisrecommended(Incheon-Shanghai,withadeliverytimeof2-3days),combinedwithrefrigeratedcontainers(2-8°C)toensurefreshness.
• Keynodesfortemperaturecontrol:Beforeloading,werequiretheKoreanwarehousetopre-coolthecontainersfor2hours(freezer-20°C,refrigerator4°C)andprovideatemperaturerecordsheet.Duringtransportation,wemonitorthetemperatureofthetemperature-controlledcontainersinrealtimethroughtheTIRConvention(automaticuploadingoftemperaturedataevery30minutes).Afterarrivalattheport,weimplement"directpickupattheshipside"basedonpre-declarationinformation,reducingtheportdwelltimetowithin4hours.Forinlanddistribution,wecooperatewiththird-partycoldchainlogistics(suchasJDLogistics)toensurethatthetemperaturecontrolmeetsstandardsduringthe"lastmile"throughGPSandtemperaturesensors.
• Additionalprotection:Weinsureourclientswith"AllRisks+SpecialRisksforRefrigeratedCargo",whichcoverslossescausedbytemperaturecontrolfailureandcargodamageduringtransportation.In2023,wesuccessfullyhandledthreecoldchaintransportationdisputesandassistedourclientsinobtainingcompensationexceeding120,000yuan.

IV.Extension to Re-export Business to Russia: Practical Advantages of VTBStability Advantages of

In response to the demand of some clients to export goods via China to Russia,Zhong Shen International Trade relies on its in-depth cooperation with VTB Bank (Russia’s Foreign Trade Bank) to provide a stable foreign exchange settlement channel:

• ThepainpointsofsettlementunderSWIFTsanctions:TraditionalUSD/EURsettlementsareoftenrejectedbybanks,andtherubleexchangeratefluctuatessignificantly(therubleagainsttheRMBfluctuatedbymorethan15%in2023),resultinginapaymentandreceiptcyclethatcanextendto7-10days.
• ZhongshenSolutions:OpenaspecialsettlementchannelwithVTBBank,supportingRUB/CNYdual-currencysettlementwithanaveragesettlementtimereducedto3workingdays;simultaneously,provideexchangeratelockingservices(lockingtheexchangerateonthesigningdate)tohelpclientsavoidexchangeratefluctuations.In2023,aclientcompletedRussianre-exportsettlementthroughthischannel,savingapproximately3%inexchangecosts.Notethatre-exporttransactionsmustcomplywiththetripartiterulesoforigin(e.g.KoreancakesmustbewithinthescopeoftheChina-SouthKorea-ROKFreeTradeAgreement),andtheZhongShenteamcanassistinreviewingtradedocumentstoensurecompliance.

5.Certification Prompts and Risk Avoidance: Compliance Essentials That Customers Need to Know

Special note: Zhong Shen International Trade Co.Ltd.does not directly provide product certification services,but will inform clients in advance of the necessary certification requirements and assist in connecting them with professional institutions (such as SGS and Bureau Veritas).

• Emergencybrakingsystemresponsetime≤3seconds:ImportedfoodregisteredbyoverseasproducersinGACC(KoreancompaniesneedtopassthereviewoftheGeneralAdministrationofCustomsinadvance,andZhongShencanassistinverifyingthevalidityoftheregistrationnumber);InspectionandQuarantineofInboundGoods(CIQ,randomsamplingandtestingbythecustomsaftercustomsclearance,withatestingperiodofabout7-10days).
• Itisrecommendedtogetcertified:ISO22000FoodSafetyManagementSystem(certifiedenterprisescanenjoythe"greenchannel"forcustomsclearance);KOSHER/HALALcertification(targetedatJewish/Muslimconsumergroups,enhancingmarketcompetitiveness).

Clients should note that: If the Korean production company has not completed GACC registration,the goods will be directly returned; if the CIQ inspection fails (such as microorganism exceeding the standard),the goods must be destroyed or returned according to the requirements of the customs.Zhong Shen can assist in preparing the rectification report,but the client needs to entrust an agency to handle the certification process by themselves.

VI.Breakdown of the full process service: Quality control in 10 steps from consultation to feedback

Zhongshen International Trade willThe process is refined into 10 key steps to ensure that each node is controllable:

• CustomerInquiry:Output:Specifytheproductingredients(whetheritcontainsnuts/dairyproducts),packagingspecifications(individualpackaging/bulkpackaging),andtargetcustomsclearanceports(Qingdao/Shanghaipreferred,duetothehighfrequencyofflightsbetweenChinaandSouthKorea).
• ContractReview:Thekeypointstoverifyincludethetradeterms(recommendedCIF,withtheagentcontrollingthelogisticsrisk)andthepaymentmethod(30%prepayment+70%uponreceiptofthebillofladingcopy,orimmediatepayment).),qualityclauses(stipulating"inspectionwithin48hoursofarrival").
• Orders&Payment:PaymentcanbemadeviaabankLC(letterofcredit)orT/T(telegraphictransfer).Afterreviewingthedocuments(e.g.ensuringthattheinvoicematchesthecontractamount),ZhongShenwillarrangethepayment.
• ProductionSupervision:Commissionathird-partyinspectioncompany(suchasIntertek)toverifythesourceoftherawmaterials(themilksourcemustcomefromregionsinSouthKoreaapprovedbyChina),andensurecompliancewithlabelingrequirements(affixingChinese-languagelabelsthatspecifytheingredients,shelflife,andstorageconditions).
• LogisticsManagement:Bookingashippingspace(throughlong-termcooperationwithshippingcompaniessuchasMaerskandHanjintoensuresufficientcargospace),purchasinginsurance(tocovertransportationrisks),andtrackingtheshippingschedule(byreceivingreal-timeupdatesoncontainerlocationsviatheTMSsystem).
• CustomsCompliance:HScodeclassification(e.g.frozencakesfallunder8543.7099,ordinarycakesunder2106.9090),tariffcalculation(tariffrate0-5%undertheRCEP,requiringtheprovisionofFORME),anddeclarationelements(brand/type/processingmethod).
• DeliveryandDistribution:Within24hoursaftercustomsclearance,wewillarrangecold-chaindeliverytotheclient’sdesignatedwarehouse(coveringmajorcitiesacrossChina).
• QualityAssurance:Within48hoursafterthearrivalofthegoods,conductanunboxinginspection(checkthequantity/temperaturerecords/appearance),andinitiateareturnorclaimincaseofabnormalities(assistinpreparinganinspectionreporttoholdtheinsurancecompany/exporteraccountable).
• SummaryandFeedback:Providetradedatareports(includingvalue,taxes,andlogisticsefficiency)toassistclientsinoptimizingtheirnextimportplans.

VII.The core value of choosing a professional agent: reducing hidden costs and risks

Compared with non-professional agents,the advantages of Zhong Shen International Trade Co.Ltd.lie in "implicit cost savings" and "risk avoidance":

• CostSavings:In2023,bypassingthepre-auditofshippingdocuments,clientsavoidedadditionalexpensessuchasdemurragefees(aboutUSD500/day),storageovertimefees(USD200/day),andsecondarycustomsdeclarationfees(USD300/time),savingatotalofover800,000yuanforcustomers.
• Riskavoidance:Inresponsetosuddenpolicies(suchasthespecialinspectionoffoodadditivesimportedfromSouthKoreain2024),weproactivelyadvisedclientstoverifythetypesofadditivesinadvance.Whenhandlingqualitydisputes,byleveragingtradecontracts,inspectionreports,andlogisticsrecords,wesuccessfullyassistedclientsinclaimingcompensationfromSouthKoreanexportersinover10cases.
• EfficiencyImprovement:Relyingontheelectronicportsysteminterface(singlewindowdeclaration),theaveragecustomsclearancetimeis3-5days(theindustrystandardis5-7days);logisticsinformationispushedinrealtimethroughtheTMSsystem(customerscanviewthecontainerlocationandtemperaturecurve),achieving"transparent"services.

Conclusion: The potential of the South Korean imported cake market is huge,but the compliance thresholds and operational complexity are relatively high.Choosing Zhong Shen International Trade not only enables you to obtain professional single document processing,temperature-controlled logistics,and RMB settlement services to Russia,but also helps you avoid hidden risks with 20 years of foreign trade experience,making your import business "stable","fast",and "cost-effective"!