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Know More about Cross-Border e-Commerce of Food in China
Know More about Cross-Border e-Commerce of Food in China
YY TSANG
(CMA Testing and Certification Laboratories)
Exporting food to China is never an easy task. With the emergence of cross-border e-commerce (CBEC) platforms, Mainland consumers however can purchase overseas food products easily. Indeed there are a number of foreign food companies targeting the Mainland market through this channel. On the other hand, how does the Chinese government regulate the import of CBEC foods? Are foods imported via CBEC and conventional trade channel subject to the same way and level of inspection and quarantine? How safe are the CBEC foods?
https://www.fungglobalretailtech.com/wp-content/uploads/2016/12/CBEC-infographic.jpg
I. Import of CBEC foods & Regulatory Control
CBEC platforms might deliver overseas food products to Mainland consumers through two different ways:
a) Direct Shipment to the Consumer from Overseas
After Mainland consumers purchase overseas food products online, CBEC platforms shall arrange the goods to be shipped direct to the consumers from overseas. This is a “Business to Consumer (B2C)” operation. Regarding “food for personal use”, it is only subject to “quarantine check” by the local entry & exit inspection and quarantine bureaus (CIQs) e.g. assessing the product risk of transmitting animal / plant diseases. However, food for personal use is exempted from “inspection & testing” under the current regulations i.e. the authority will neither test the presence of harmful substances and bacteria in the food, nor conduct food label check, etc.
b) Shipment to the Consumer from a Free Trade Zone in China
CBEC platform operators / owners or overseas food manufacturers have shipped the food products from overseas to a free trade zone in China “in advance”. Once a Mainland consumer places an order online and settles the payment, the food shall be delivered from the free trade zone warehouse to the consumer. This is a “Business to Business to Consumer” (B2B2C) operation.
Transporting overseas food to a free trade zone for “stock up” purpose will not go through customs clearance. The move is not considered as a “formal” commercial food import into China. CIQ will therefore conduct “quarantine check” rather than “inspection & testing”. Customs clearance shall be required only when the food is delivered from a free trade zone to a non-free trade zone in China. If the CBEC food is declared for “personal use”, it, again, will not be inspected and tested by CIQ.
It can be seen that the current import control of CBEC foods stored in a free trade zone is rather “loose”. Many regulatory requirements governing food imported into China via conventional business to business channel (B2B) e.g. import permit for specified foods or registration of food establishments are “not applicable” to the CBEC foods at this moment.
http://slidesplayer.com/slide/11572856/
In China, some complain that labels of overseas foods purchased from online shops often do not comply with the Mainland regulations but the goods can still be sold in China. On the other hand, same overseas foods imported via conventional trade approach are always detained at the border or even returned because of improper food label.
II. Food Safety Problems of CBEC Foods
Some peoples have found quality and safety problems of CBEC food products. For example, Japanese foods (e.g. instant oatmeal, milk powder, rice, wine, etc.) sold in some CBEC platforms actually came from radiation-contaminated areas of Japan. However, the product information shown on the online platforms only indicated that the country of origin was Japan, without showing the actual food establishment address.
Few years ago the levels of nutrients and harmful substances of 19 overseas infant formula purchased online were also revealed. The results showed that iron, manganese, iodine, selenium contents of 8 samples exceeded the legal limits in China. Moreover, milk products from New Zealand and Netherland have also been found to contain toxic DCD and Salmonella.
Apart from food safety problem, it has been reported that over 80% of food, health food and cosmetics among CBEC products are “possibly fake”.
III. Way Forward
Use of online platforms to sell and buy foods and other products instantly and globally is now a dominant trend. In view of the characteristics of CBEC products - “large no. of batches”, “small size of each batch”, “a large variety of commodities”, CIQ must strengthen the regulatory control of CBEC products. It is understood that the Mainland authority has also noted the problem. For example, some suggest that overseas food establishments supplying foods to China via CBEC platforms should also register with the Chinese government; and a need to establish & publish healthy and unhealthy credit records of the food trade.
