New China import rules bring headaches for food and beverage makers -Breaking
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© Reuters. FILEPHOTO: Trucks are seen at Ningbo Zhoushan port’s container terminal in Zhejiang provincial, China. August 15, 2021. Siddharth Cavale and Dominique Patton
BEIJING, China (Reuters) – Makers of Irish whiskey and Belgian chocolate, as well as European coffee brands, are trying to conform to new Chinese beverage and food regulations. Many fear that their products will not be allowed to access the huge market due to a January 1 deadline.
China’s Customs Authority published April new safety guidelines for food. These rules stipulate that all foreign food processing, storage and manufacturing facilities must be registered before the end of each year in order to gain access to China’s market.
However, detailed instructions on how to obtain the registration codes required for your company were not available until October. Last month however, a website was launched that allows companies to register themselves.
A diplomat from Europe based in Beijing said that the country is facing major disruptions following Jan. 1.
China has seen its food imports rise in recent years due to growing middle-class demand. The United States Department of Agriculture reported that they reached $89 billion by 2019, making China the sixth-largest food importer in the world.
China’s attempts to establish new regulations for food imports have been unsuccessful over the years. Exporters were opposed. GACC (General Administration of Customs of China), which oversees the most recent iteration of these rules, doesn’t provide any explanations as to how all foods are included in the regulations, not even low-risk ones like wine, flour or olive oil.
Experts claim it is an attempt to control large amounts of food coming into Chinese ports.
GACC failed to respond to a fax asking for comments on the rules rollout or why it had not allowed food producers to have more time to prepare.
Four letters were sent by the European Union to Customs in this year’s request for more clarity and time for implementation. Damien Plan is an agriculture counselor at Beijing’s European Union Delegation.
GACC agreed last week to apply the delay effect for goods manufactured on or after January 1, but has not published an official notice.
However, many diplomats and exporters still believe that the rules are a trade obstacle for products from overseas.
Andy Anderson (executive director, Western United States Agricultural Trade Association) said that “we have never seen anything so draconian from China,” which is a trade association that supports U.S. exports of food.
He called the rules a “nontarriff trade barrier”.
Due to disinfection and coronavirus testing, food has been experiencing severe delays in clearing Customs in China, particularly chilled and frozen foods.
Unroasted coffee beans, oil and cooking oils, as well as nuts, are just a few of 14 high-risk food items that must be reported to the international food authorities by October 31st.
A website which was launched in November and has never stopped working for low-risk food facilities can be used to register.
Li Xiang is the business development manager for Chemical Inspection and Regulation Services Ltd. Europe (CIRS), who is helping businesses with their registration.
These rules apply only to factories that produce finished goods for export to China. However, they do not allow any flexibility in changing sourcing or labelling.
Robert Maron (VP International Trade, Distilled Spirits Council of the United States) said that while some spirits companies in the United States have already registered, they still don’t know what labelling requirements must be followed.
He said, “There’s not much time to comprehend the requirements. I think that’s the primary concern of our members.”
Li said that so far no Irish whiskeymakers assisted by CIRS Irish were able to register.
The consequences of goods arriving without required registration codes on the packaging are unclear.
He added, “For the time being, the information that we received from Chinese authorities was that there wouldn’t be any grace period.”
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