Exporting food to China? Registration obligation for food producers, warehouses and (cold) storage facilities

As of January 1, 2022, the Decree 248 “Registration and Administration of Overseas Producers of Imported Food” (“the Decree”) of the General Administration of Customs of China (“GACC”) (“Chinese customs”) will come into effect. Pursuant to this Decree, all foreign food producers, warehouses and (cold) storage facilities are required to register with Chinese customs from 1 January 2022. Ferah Taptik discusses the new Decree.

Decree 248 and the two types of registration procedures

In Articles 7 and 8 of the Decree[1], the Chinese government uses two different types of registration procedures for food producers, warehouses and (cold) storage facilities (“the Companies”). For a group of 18 products with, according to China, an increased food safety risk, registration is done through the Netherlands Food and Consumer Product Safety Authority (“NVWA”). This category includes: meat and meat products, sausage casings, aquatic products, dairy products, bird nest products, bee products, eggs and egg products, edible oils and fats, oilseeds, stuffed wheaten products, edible grains, milled grain industry products and malt, fresh and dehydrated vegetables, dried beans, condiments, nuts and seeds, dried fruits, unroasted coffee and cocoa beans, foods for special dietary purposes, and health foods. The Dutch Ministry of Agriculture, Nature and Food Quality has published a supplement to the aforementioned products on its website.

Recommendations NVWA

In addition, the website mentions a number of recommendations from the NVWA to make the registration process as efficient as possible. The NVWA also mentions the need for all Companies from the aforementioned sectors to supply the data in an uniform manner.

• There is a difference in the registration method: for example, the registration of the producers is requested. Veterinary production companies are registered with the NVWA (COV and ZuivelNL) and that number can therefore be used (an EC number). In stark contrast, many of the food businesses are only uniquely registered through the Chamber of Commerce. These companies must ensure that the Chamber of Commerce number of the various separate production locations (and therefore not, for example, the head office) is mentioned.
• The experience with the Chinese authorities is that the indication on the label of the packaging units (boxes) must correspond exactly to what is stated on the official papers (export declarations or export certificates) and to how exactly they are registered in China. This even goes so far that if you specify XXX BV instead of xxx BV, there will be a problem with export: the batches will be refused in China. Using uppercase and lowercase letters in their business name listing is just as important. Therefore, the information on the export certificate must be exactly the same as the registration and the batch itself.
• In the supplied lists, the companies will also have to ensure that all 6-digit HS codes of the products that are exported or wished to export to China are also stated at those listed production companies.
• Correct description of the product, preferably in line with the HS code.
• Date of last export to China by HS code, with proof of export, such as “Bill of lading”.

Other obligations

As from November 1, 2021, Companies in the other food categories must submit registration applications directly to the GACC. The GACC refers to the website: https://cifer.singlewindow.cn. According to the GACC, it takes companies about half an hour to register themselves. The website is available in both English and Chinese.

Finally, the Decree introduces a new obligation with regard to the labeling of foodstuffs. Under the Decree, Companies must display the company registration number on both the inner and outer packaging of foodstuffs exported to China. According to Mr. Qin Meishen, Manager of Food Technical Services Regulatory Consultant at China Certification & Inspection Group (CCIC), Chinese customs can also check the condition of the packaging and the presence of any harmful substances by taking samples of the product. In addition, Chinese customs can carry out checks on transport, storage and documents such as contracts and invoices.

Impact for Companies

The Decree thus entails various obligations for Companies in the relevant food categories, which obligations should be reflected  in the contracts between the parties concerned. What happens if the exported goods are refused by Chinese customs, for example because of missing registrations or missing or insufficient import and export documents. The latter is usually accompanied by significant costs, unforeseen delays as well as lengthy (legal) discussions about the liability of parties. For the foregoing reasons, it is advisable to explicitly include the aforementioned obligations and the liability of the parties in the contract.

About Ploum’s International Trade, Customs and Food Safety & Product Compliance team

The specialists of our International Trade, Customs and Food Safety & Product Compliance team will be happy to assist you with drafting, amending or assessing your contracts in accordance with this new Decree. Thanks to our many years of experience in the Customs and Food safety practice, we can serve you quickly and effectively. If you have any questions on this topic, or in respect of other issues related to International Trade, Customs or Food safety/law, please contact one of our team members or contact Marijn van Tuijl (m.vantuijl@ploum.nl) directly.