New Opportunities in China-South Korea Food Trade: Market Potential and Policy Environment for Korean Cake Imports

In recent years, with the deepening of the China-South Korea Free Trade Agreement (FTA) and the implementation of RCEP, trade barriers for food products between the two countries have continuously been lowered. Korean baked goods, with their exquisite craftsmanship and unique flavors, have seen a surge in demand in the Chinese market. According to GACC data, from January to October 2023, the value of imported pastry products from South Korea increased by 28% year-on-year, with cake products accounting for over 40%. Against this backdrop, professionalImport Agencyservices have become key for companies to efficiently position themselves in the market.

It is particularly important to note that the import of Korean food is subject to the "China-South Korea Food Safety Cooperation Agreement" and must comply with the GACC's "Administrative Provisions on Registration of Overseas Manufacturers of Imported Food" (Decree 248), as well as the hygiene standards for exported food from the Korean Ministry of Food and Drug Safety (KFDA). Although agency services do not involve handling product certifications, we will clearly inform clients of the need to prepare documents like the KFDA health certificate and component analysis reports in advance, and assist in verifying the validity of certifications to mitigate customs clearance risks.

Core Competencies of an Import Agent: Professional Control of Document Processing and Logistics Services

I. Document Processing: The "Pass" for Full-Chain Compliance

As a pre-packaged food, the import documents for cakes must strictly comply with the requirements of China Customs and inspection/quarantine. The core advantage of an agency service lies in the precise review and process coordination of these documents:

• Basic commercial documents: Commercial invoice (must specify FOB/CIF price terms), packing list (indicating gross/net weight/volume), bill of lading (?Ocean shipping?/?Air freight?master and house bills);
• Official Certified Documents: Officially issued by South KoreaCertificate of Origin(FORM E, to enjoy FTA tariff preferences), health certificate (issued by KFDA or its authorized body, stating product ingredients, production batch number, storage conditions);
• Special Regulatory Documents: For example, an "Entry-Exit Animal and Plant Quarantine Permit" is required if it contains dairy ingredients, and a non-GMO certificate may be needed for chocolate-coated products (depending on the ingredients).

The agency team will verify the consistency of documents throughout the process (e.g., matching the weight on the B/L with the packing list, ensuring the health certificate corresponds to the actual product batch) to avoid customs inspections or demurrage costs due to "document discrepancies" or "goods not matching documents."

II. Logistics Services: Cost and Timeliness Optimization from Door to Door

The logistics stage directly impacts import costs and delivery efficiency. The agency service will customize a plan based on the client's needs:

• Selection of transportation methods: For small-batch, high-value cakes (like gift boxes), air freight is the top recommendation (Incheon → Shanghai/Beijing, 48-hour delivery) to reduce storage losses. For large-volume, ambient-temperature cakes, LCL sea freight can be chosen (Busan → Qingdao, 7-10 days), with costs 60%-70% lower than air freight;
• Customs Clearance Coordination: Transmit manifest information to customs 3 days in advance, pre-review the customs declaration (HS code 21050000, MFN import duty rate 15%, which can be reduced to 10% under RCEP), and cooperate with customs' "two-step declaration" model to achieve "direct pickup from vessel side" or "direct loading upon arrival";
• Warehousing and distribution: Provide bonded warehousing services (e.g., Shanghai Waigaoqiao Bonded Zone) to support distribution to various regions nationwide, reducing the client's local storage pressure. For cold chain cakes, connect with professional cold chain logistics companies (temperature control from -18°C to 5°C) to ensure the entire temperature record is traceable.

Extended Services: VTB for Russia-Related Business?Foreign exchange settlement?'s Efficiency and Security Guarantee

If the client is involved in re-exporting to Russia or direct trade, the agency service can leverage its long-term partnership with Russia'sforeign tradeBank (VTB) to provide settlement advantages:

• Exchange Rate Lock - in: Mitigate Ruble-RMB exchange rate fluctuation risks through VTB's spot/forward foreign exchange contracts (in 2023, the Ruble's fluctuation against the RMB exceeded 15%);
• Settlement Timeliness: Use a dual SWIFT+SPFS channel to ensure cross-border telegraphic transfers (T/T) arrive within 24 hours, which is 1-2 working days faster than ordinary banks;
• Compliance guarantee: Assist in reviewing trade documents for Russia (such as the Customs Union CU-TR certification) to avoid the risk of fund freezes due to omissions from sanctioned country lists.

Full-Process Agency Service: Closed-Loop Management from Consultation to Feedback

1. Client consultation and needs confirmation: Through HS code pre-classification (21050000) and analysis of regulatory conditions (A/B), determine if an import license is needed and define the scope of service (e.g., whether it includes advancing customs duties);
2. Contract negotiation and risk control: Review the "return clause for quality non-conformance" and "demurrage liability allocation" in the Korean supplier's contract, and recommend adding a clause for "claims for CIQ inspection failure";
3. Order Execution and Payment Supervision: Coordinate the payment schedule based on the trade terms (e.g., CIF Shanghai). For?L/C?(L/C), strictly review for documentary consistency. For telegraphic transfers (T/T), a "30% advance + 70% upon arrival" model is recommended to reduce risk;
4. Production Supervision and Pre-Shipment Inspection: If the client requests, commission a third-party agency like SGS to supervise loading at the Korean factory (e.g., checking for packaging integrity, label compliance);
5. Customs compliance and tax payment: Calculate the comprehensive tax rate (customs duty + 13% VAT) and assist in applying for the "summary taxation" model to reduce capital occupation;
6. Delivery and Quality Traceability: Complete CIQ random sampling tests (focusing on microbes, additives) within 72 hours of arrival, and retain the test reports for 3 years for future reference;
7. Summary, Feedback, and Optimization Suggestions: Provide an "Import Cost Analysis Report" (including freight/duty/loss ratios) and optimize logistics solutions for repeat clients (e.g., enjoying discounts for booking on fixed sailing schedules).

Key Tips for Importers: Certification and Risk Avoidance

Although the agent does not handle certifications directly, clients should be reminded of the following:

• Korean exported cakes must have a "Food Manufacturing and Sales License" (????????) from KFDA. A copy of the license should be requested from the supplier before import;
• The Chinese label on pre-packaged cakes must comply with GB 7718-2011 (General Standard for the Labeling of Prepackaged Foods). It is recommended to design a label sample and submit it to customs for filing in advance;
• If brand authorization is involved, a trademark registration certificate (from South Korea) and a Chinese trademark authorization letter must be provided to avoid intellectual property disputes.

In the context of a complex and changing international trade environment, choosing a professional import agency service can not only reduce operational costs but also mitigate over 90% of customs clearance risks through in-depth control of policies, documents, and logistics.?Zhong Shen?As a service provider with 20 years of experience in foreign trade agency, we always aim for "zero-error documents, zero-lag logistics," helping companies efficiently position themselves in the Korean cake import sector and seize market opportunities.