I.The Situation of Cake Import Trade in the UK and New Challenges in Compliance

Since the UK officially left the European Union in 2021,the pattern of Sino-British trade has undergone structural adjustments.The rules of the European Union’s single market no longer apply to UK-China trade,and the complexity of customs procedures has significantly increased—British food exports to China now require the additional submission of the "Non-EU Country Export Health Certificate" (EHCC).The transition from the traditional CE marking to the UKCA certification system has extended the average customs clearance time by 3-5 working days compared to before Brexit.At the same time,Chinese customs has implemented a dual-track supervision system for imported food,requiring both "importer registration" and "overseas production enterprise registration" (according to the "Regulations on the Registration Management of Overseas Production Enterprises of Imported Food"),and will increase the inspection rate of cold-chain food from 15% to 25% starting from 2023,imposing strict requirements on logistics temperature control records and Chinese label compliance.Coupled with international standards,these measures will further enhance the safety and quality of imported food in China.Price fluctuations (the freight rates for European routes in 2023 fell by 40% compared to the peak in 2021,but they are still higher than the levels before the pandemic),professionalServices have become the core guarantee for reducing trade risks.

II.Core Competencies: Professional Control of the Entire Supply Chain for Documentation and Logistics

(I) Document processing: A "digital passport" for trade compliance

Output:

The import of British cakes involves eight core documents,which must strictly adhere to the principle of "consistency between orders and documents".

• CommercialInvoice(CI):ItisrequiredtoindicatetheHScode(suggestedtobe1905.9000,correspondingto"Otherbread,pastries,biscuits,andbakedcakesandpastries"),theFOB/CIFvalue,andtheorigin(specifiedtothespecificcountyintheUK);
• PackingList(PL):Itshalllistthegross/netweight,volume,andinnerpackagingmaterials(e.g.whetheritcontainsadesiccant)ofeachbox,andfullymatchthedescriptionofthegoodsinthebilloflading.
• OriginCertificate(C/O):AftertheUK’swithdrawalfromtheEU,itisnecessarytoapplyforanon-preferentialorigincertificateissuedbytheUKDepartmentforInternationalTrade(DIT).Itshouldbenotedthattheprovisionsof"fullyobtained"or"substantialchanges"applytothiscertificate.
• HealthCertificate(EHCC):IssuedbyanauthorizedagencyoftheUKFoodStandardsAgency(FSA),itmustclearlystatethat"theproductcomplieswiththeGB2760-2014FoodAdditiveUseStandardsofChina".
• BillofLading(B/L):Forseafreight,itisrecommendedtochoosetheoriginalbilloflading(MBL)issuedbytheshippingcompany.Itisnecessarytoprovidethemasterairwaybill(MAWB),andpleasenotethatthe"NotifyingParty"fieldmustbefilledinwiththeregistrationnumberoftheChineseimporter.
• DeclarationForm:Whendeclaringtothecustoms,itisnecessarytoattachthe"ImportFoodConsigneeRegistrationCertificate"andthe"OverseasProductionEnterpriseRegistrationNumber".Errorsinthepre-classificationofHScodesmayleadtoanincreaseintheinspectionrateby20%.

Our company’s document processing team ensures a 98% first-time pass rate for documents through the "three-level review system" (initial review by document preparers,re-review by supervisors,and system verification),reducing the average customs clearance time by 2-3 days.

(II) Logistics Management: Temperature-Controlled End-to-End Chain from London to China

Output:

Most British cakes are perishable foods containing cream or chocolate,so special attention needs to be paid to logistics during transportation.Three temperature control stages are essential to ensure product quality:

• Departuresection(UKwarehouse-port/airport):ItisnecessarytouserefrigeratedtruckscertifiedbyGSP(withatemperaturerangeof2-8°C)andcarrytheEUTIRConventiontemperaturecontrolrecordsheetwiththetrucks.
• Transportationsegment(sea/airfreight):Forseafreight,itisrecommendedtochoosea40-footreefercontainerwithasettemperatureof3±1℃,anduploadGPSandtemperaturedatatothelogisticscloudplatforminrealtime.Forairfreight,itispreferabletouseall-cargoaircraft(suchastheB747-8F)toavoidtheriskofunstabletemperaturecontrolinthecargoholdofpassengeraircraft.
• Destinationportsection(Chineseports-warehouses):Within2hoursaftercustomsclearance,connecttodomesticcoldchainfleets(whichmustholda"RoadTransportationBusinessLicense"andrefrigerationqualifications).Ifthetemperaturedeviationexceeds±2°Cduringtheentirejourney,anemergencyreportmustbeinitiated.

Our company has established long-term agreements with leading logistics providers such as Maersk and Lufthansa Cargo,which enable us to secure shipping space and obtain a 15% discount on freight rates.At the same time,we use the TMS system to achieve "one container,one code" tracking,allowing customers to view the container’s location,temperature curve,and estimated arrival time in real time.

III.Business Expansion into Russia: VTBThe advantages of cross-border payments

Under the background of deepening Sino-Russian trade (with a trade volume of $196.481 billion between China and Russia from January to October 2023,an increase of 26.7% year-on-year),some customers purchase British cakes through Russia or directly cooperate with Russian businesses.For such businesses,our company relies on our cooperation with Russia to provide services.Strategic partnership with VTB Bank offers three major advantages in foreign-exchange settlement:

• Exchangeratelocking:YoucanlocktheexchangerateofRMBagainsttheruble/pound30daysinadvancetoavoidexchangeratelosses(reducingtheaverageexchangecostby1.2%);
• ClearingTime:Throughthedual-channelclearingsystemofSWIFTandSPFS,fundswillbecreditedwithinoneday(T+1)afterthetransaction(whilethetraditionalrouterequiresthreedays(T+3));
• ComplianceAssurance:AsasystemicallyimportantbankinRussia,VTBcanprovide"cleandocuments"thatcomplywithOFAC/ECsanctionsscreening,therebyreducingtheriskofpaymentrejectionbyoverseasremittancebanks.

According to the data for the third quarter of 2023,the payment success rate for Russian-related business using VTB for foreign exchange settlements increased by 25% compared with the traditional method.

IV.Full-process import operation: Professional control of 9 key stages

Node 1: Customer Inquiry (In-depth Exploration of Needs)

Output:

It is necessary to clarify the product characteristics (such as whether it contains nut/dairy allergens),the annual import volume (which affects the application for tariff quotas),the storage conditions (room temperature/refrigeration/freezing),and the target sales channels (supermarkets require Chinese labels,while e-commerce platforms may accept pre-printed labels).

Node 2: Negotiation and signing of the contract (trade terms and risk allocation)

Output:

It is recommended to use the CIF (cost,insurance and freight) term,with the agent responsible for insuring against all risks plus special insurance for refrigerated cargo (covering cargo losses caused by temperature exceeding standards).It should be specified that the "demurrage fees" shall be borne by the responsible party (e.g.if the demurrage is caused by document errors,the agent shall bear the responsibility).

Node 3: Orders and Payments (Fund Safety Control)

Output:

It is recommended to adopt a payment method combining 30% prepayment (T/T in advance) and 70% payment upon receipt of the bill of lading copy.For large orders,other payment methods can also be considered.(L/C),the agent assists in reviewing the "soft clauses" of the letter of credit (such as unreasonable requirements like "the importer needs to sign and confirm the quality").

Node 4: Production Supervision (Quality and Delivery Guarantee)

Output:

Dispatch professional QC to the factory to monitor the loading process,with a focus on verifying the following items: ① Batch of raw materials (consistent with the health certificate); ② Shelf life (the remaining shelf life after arrival must be ≥60%); ③ Packaging compliance (whether there are anti-squeeze cushioning materials),and filming a 10-second loading video per box for retention.

Node 5: Logistics Management (Customized Transportation Solutions)

Output:

For small batches (≤2 tons),air freight is recommended (London-Shanghai,delivery time 48 hours).For large batches (≥10 tons),ocean freight is preferred (Southampton-Shanghai,delivery time 35 days).For refrigerated cargo,it is necessary to book shipping space with the shipping company 15 days in advance to avoid container shortages during peak seasons.

Node 6: Customs Compliance (Risk Mitigation in Customs Clearance)

Output:

During the pre-declaration phase,complete the pre-classification of the HS code (which can be submitted for pre-review through the customs "single window"),calculate the tariffs (most-favored-nation tariff rate of 15%,value-added tax of 13%) and possible anti-dumping duties (currently,British cakes are not listed on the anti-dumping list),and provide the "Imported Food Conformity Certificate" and "Temperature Recording Curve" when undergoing inspection.

Node 7: Delivery and Distribution (Last-Mile Guarantee)

Output:

We have reached agreements with JD Logistics and SF Express Cold Chain Logistics to support next-day delivery to over 200 cities across China.For supermarket customers,we offer "palletized distribution" (to reduce secondary handling losses),and e-commerce customers can directly deliver to pre-warehouses (such as Cainiao’s Jiaxing warehouse).

Node 8: Quality Assurance (Responsible for handling after-sales issues)

Output:

Within 24 hours after the goods arrive,complete the sensory inspection (appearance,odor) and send samples for testing (send to SGS to test microbiological indicators).If mold/expiration is found,assist the client in claiming compensation from the insurance company (up to 90% of the total value of the goods).

Node 9: Summary and Feedback (Full Process Optimization)

Output:

Provide an "Import Cost Analysis Report" (listing the proportion of shipping fees,tariffs,and storage fees) and "Process Improvement Suggestions" (such as adjusting the port of departure to Felixstowe,which can shorten the shipping time by 2 days),to help clients optimize their import plans for the next year.

V.Certification Advisory: Compliance Preparations for Clients to Complete Themselves

Please note: Our company does not directly provide product certification services,but we can provide a list of certifications and guidance on how to proceed with the certification process.

• Requireditems:①Registrationofoverseasproductionenterprises(applythroughtheGeneralAdministrationofCustoms’"InternetPlusCustoms"platform,andsubmitafactoryfloorplanandHACCPcertificate);②Importerregistration(submitabusinesslicenseandfoodbusinesslicensetothelocalcustomsauthority).
• Options:①HALALcertification(forthehalalmarket,issuedbytheIslamicFoodandNutritionCouncilofAmerica(IFANCA));②Organiccertification(e.g.bytheSoilAssociationintheUK,whichrequiresanadditionalcertificationfeeofapproximately￡5,000).
• Note:Thecertificationprocesstypicallytakes3-6months,anditisrecommendedthatclientsinitiatetheprocess3monthsbeforesigningthecontracttoavoidaffectingcustomsclearance.