I. New Trends in China-South Korea Food Trade: Opportunities and Challenges for Korean Cake Imports

In recent years, with the deepening implementation of the RCEP agreement and the advancement of the second phase of the China-South Korea Free Trade Agreement (FTA) negotiations, South Korean food exports to China have continued to grow. According to 2023 customs data, the import value of Korean baked goods increased by 28% year-on-year, with cake products becoming a popular import category due to their "small and beautiful" leisure attribute and unique flavor. On the policy front, RCEP is gradually reducing tariffs on some Korean baked goods from 15% to zero. This, combined with Chinese consumers' growing preference for "Korean wave foods," forImport Agencybusiness has created significant opportunities.

However, opportunities come with challenges: Customs' compliance supervision of imported foods is becoming stricter. In 2023, the non-compliance rate of imported foods nationwide increased by 1.2 percentage points compared to the previous year, with main issues being non-compliant labels (35%), excessive microbial content (22%), and unregistered overseas manufacturers (18%). Furthermore, requirements for cold chain transport temperature control (-18°C to 5°C) and short shelf life (usually 30-90 days) place higher demands on logistics timeliness and document coordination.

II. Core Competency Showcase: Professional Control of Documents and Logistics

(1) Document Processing: The "Pass" for Full-Chain Compliance

The documentation system for importing Korean cakes must strictly comply with customs and inspection/quarantine requirements. The core documents include:

• Commercial Invoice (CI) & Packing List (PL): Must specify the product's HS code (e.g., cakes with cream are usually classified under 1905.9000, with a MFN duty rate of 15% and a progressively decreasing RCEP rate), ingredient list (milk fat content must be ≤30% to comply with GB 19855-2015), and country of origin (clearly stating "Made in South Korea").
• FORM ECertificate of Origin: As the core document for RCEP agreement tariff rates, it must be issued by Korean Customs or an authorized body. It can be reissued within 1 year after shipment (it cannot enjoy tariff preferences if expired). The agent will check in advance that the certificate information is consistent with the B/L and invoice to avoid clearance delays due to "document discrepancies."
• Korean MFDS Health Certificate: Issued by the Korean Ministry of Food and Drug Safety (MFDS), it must state key declarations such as "product complies with KFDA food safety standards" and "no prohibited additives used." The validity period must cover the time of arrival (usually 6 months after issuance).

(2) Logistics Management: The "Last Mile" from Incheon to China

Given the cold chain characteristics of Korean cakes, the logistics solution must precisely balance timeliness and cost:

• Selection of transportation methods:?Ocean shipping?(low cost, suitable for full container imports): Main routes are Incheon Port → Qingdao Port/Shanghai Port, with a voyage of 3-5 days. It requires a 40-foot refrigerated container (RF container), and reefer resources from shipping lines (like Hanjin Shipping, Hyundai Merchant Marine) must be confirmed in advance;?Air freight?(high timeliness, suitable for urgent orders): Incheon → Shanghai/Beijing, flight time of 2-3 hours. After customs clearance, delivery to tier-1 markets can be achieved within 48 hours, but the freight cost is 3-5 times higher than sea freight.
• Key Node Control: When booking, the "temperature setting" (e.g., -18°C for frozen cakes, 5°C for refrigerated cakes) must be specified and written into the transport contract. Complete the "Single Window" pre-declaration 24 hours before arrival and simultaneously transmit manifest data to customs to avoid demurrage fees for declaration delays (usually USD 100-200/day). For the delivery order at the destination port, prioritize Telex Release to shorten pickup time (1-2 days faster than original B/L).

III. Expansion of Business with Russia: VTB?Foreign exchange settlement?Settlement

Some clients re-export Korean cakes to Russia after importing them, or act as an agent for Russian buyers. In such cases, using VTB Bank (Russianforeign tradeBank) can significantly improve efficiency:

• Exchange rate locking service: VTB supports real-time locking of the RMB-Ruble exchange rate. The agent can assist the client in stipulating in the contract to "settle at VTB's daily exchange rate," thus mitigating exchange rate fluctuation risks (in 2023, the Ruble's fluctuation against the RMB reached ±12%).
• Rapid Clearing Channel: Through a direct connection with VTB via CIPS (Cross-border Interbank Payment System), cross-border RMB settlement can be achieved on a T+1 basis (compared to T+3 for ordinary banks), shortening the capital turnover cycle. For example, a client processed a USD 300,000 T/T payment through VTB, and it took only 2 working days from document submission to the seller's receipt of funds, saving 4 days compared to their previous bank.
• ?L/C?(L/C) Risk Control Advantages: When using L/C for settlement in Russia-related business, VTB, as the issuing bank, has a high credit rating (Moody's Baa2), which can reduce the risk of payment rejection due to "documentary discrepancies." The agent will assist in reviewing L/C terms (e.g., "EAC certification required for Russian customs clearance") to ensure the seller's compliance.

IV. Compliance Notice: Essential Certifications & Document Requirements (Agent does not handle certification applications)

To import Korean cakes, the client must complete the following certifications and filings themselves. The agent can provide document translation and review assistance but does not handle the applications directly:

• Registration of overseas production enterprises: According to GACC Announcement No. 24 of 2021, Korean cake manufacturers must be registered in the "Administration System for Registration of Overseas Manufacturers of Imported Food" (registration number is 14 digits, e.g., 4100/000001). The client needs to contact the Korean MFDS to submit an application form, factory layout, HACCP certification, and other materials. The registration period is about 2-3 months.
• Chinese label filing: Pre-packaged cakes must have a Chinese label that complies with GB 7718-2011, including: product name (e.g., "Korean Honey Cake"), ingredient list (in descending order of content), production date (must match the health certificate), shelf life (stating "XX days under refrigerated/frozen conditions"), country of origin ("South Korea"), and the name and address of the domestic distributor. The label design must be submitted in advance through the "Imported FoodCosmeticsLabel Filing System" to avoid rejection at customs due to non-compliant labels (in 2023, 19% of rejected imported foods were due to label issues).
• Special Certifications (Processed as needed): If the client's target market is high-end supermarkets, they can apply for the "Organic Certification" from the Korean Ministry of Agriculture, Food and Rural Affairs (requires proof of organic ingredient procurement). For lactose-intolerant consumers, a "Lactose-Free Declaration" can be obtained (requires a third-party test report).

V. Full-Process Agency Services: Closed-Loop Management from Consultation to Feedback

(1) Consultation & Contracting: Precisely Matching Needs

During the client consultation phase, the agent pre-classifies the HS code (based on ingredients and processing methods) to calculate the total cost (CIF price + customs duty + VAT + clearance fees). For example, for a 40-foot reefer container (approx. 20 tons) of Korean cake with a CIF price of USD 50,000, the duty (RCEP rate of 10%) is USD 5,000, VAT (13%) is USD 7,150, and clearance fees are about USD 2,000, for a total cost of approximately USD 64,150. When signing the contract, key focus is on quality clauses (e.g., "total bacterial count ≤10,000 CFU/g") and payment terms (recommending 30% advance + 70% upon sight of B/L copy to reduce risk for both parties).

(2) Execution & Delivery: Details Determine Success

• Production supervision: Commission a local SGS or KTL in South Korea for factory inspection, verifying raw materials (e.g., whether the cream is animal-derived), packaging (whether food-grade PE film is used), and temperature control records (-18°C freezer storage for ≥24 hours).
• Customs Compliance: When declaring, submit the "three consistent documents" (contract, invoice, bill of lading) and additional documents (certificate of origin, health certificate, overseas manufacturer registration number). Accurately declare the transaction method (for CIF, declare freight of USD 3,000, insurance of USD 500). If subject to customs inspection (approx. 10% probability), cooperate with the unboxing to check the temperature recorder (must show a constant -18°C) and label information (Chinese and Korean ingredients must match).
• Delivery & After-Sales: Cooperate with 3PLs like JD Logistics and SF Cold Chain to provide "last mile" temperature-controlled delivery (refrigerated truck temperature deviation ≤2°C) and monitor delivery times (48-hour delivery in tier-1 cities, 72 hours in tier-2). Within 7 days of receipt, complete sensory inspection (no discoloration or off-odors) and lab testing (commissioning CTI to check for cyclamate and potassium sorbate levels). If quality issues are found, assist the client in filing a claim with the Korean party within 15 working days using the inspection report.

(3) Summary & Optimization: Continuously Enhancing Service Value

After the service is completed, the agent provides an "Import Agency Service Report," including a cost breakdown, customs clearance timeline (average of 7 working days), issue resolution records (e.g., a delay in clearance for one batch due to a missing "storage conditions" on the label, leading to an optimized label review process), and adjusts the plan for the next order based on client feedback (e.g., suggesting air freight for urgent orders to reduce demurrage risk; FCL sea freight for large shipments to lower logistics costs).

Through professional control and detail management of the entire process,?Zhong Shen?Dedicated to providing Korean cake import agency services with "zero-error documents, zero-delay logistics, and zero-risk compliance," helping companies efficiently expand into the Chinese and Russian bakery markets.