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New Mainland Registration Rules Mandatory for Overseas Food Manufacturers
03 January 2022
Wing Chu, Cathy Chung, Joseph Yeung, Business Advisory Section, HKTDC Research
Quality imported food products have won mainland consumers’ favour. (shutterstock.com)
As income levels and consumption power in mainland China continue to rise, China has become one of the leading consumer markets in the world. In particular, Chinese demand for all kinds of quality imported food products is huge and consumers are willing to pay more for quality foods and beverages imported from various parts of the world in a move to raise their standard of living. The mainland has also in recent years been actively encouraging businesses to import a wide range of quality products from around the globe to meet the demand from domestic consumers. One example of this is the staging of the China International Import Expo in Shanghai every year, as well as the hosting of other platforms aimed at broadening import channels. This has generated enormous business opportunities for Hong Kong companies, as along with other traders and manufacturers.
Meanwhile, as food imports continue to expand, the mainland authorities have tightened supervision over the import of food products in a move to protect public health and control safety hazards associated with imported food. Actions taken include requiring all overseas manufacturers of imported food to register with the General Administration of Customs (GAC) and demanding that all imported foods comply with China’s national standards and relevant regulations, starting from January 2022. Hong Kong companies in the trade should keep abreast of and conform to the mainland’s latest regulatory requirements for imported foods so that they can be in a position to capture the business opportunities arising from the mainland’s expanding imported food market.
Food imports keep increasing
In recent years, with mainland China actively encouraging imports, all kinds of quality imported food products have won consumers’ favour. According to the figures released by the GAC, the value of China’s food imports has been climbing steadily in recent years - from US$102.1 billion in 2016 to US$162.2 billion in 2020, an average annual growth rate of 12.3%. It is worth noting that in the first 11 months of 2021, the value of food imports recorded year-on-year growth of over 30% to US$189.9 billion, an amount surpassing that for the whole of 2020. Among the various kinds of imported foods, plant products (including vegetables, fruits, seeds, and industrial or medicinal plants) accounted for nearly half of the total in terms of value, followed by animal products (including meats, aquatic products and dairy products), which made up 27.5%, while prepared foodstuffs and beverages comprised 15.5%. [1]
While mainland consumers’ demand for imported foods is strong, the huge increase in imports has also brought the danger of a rise in food safety hazards. In a move to strengthen supervision over imported foods, the GAC promulgated the newly revised Administrative Provisions on Registration of Overseas Manufacturers of Imported Foods (GAC Decree No. 248) and the Administrative Measures on Import and Export Food Safety (GAC Decree No. 249) in April 2021. These require all foreign enterprises engaging in the manufacturing, processing and storage of imported foods [2](hereinafter referred to as overseas manufacturers of imported foods) to comply with China’s latest regulations on enterprise registration, food quality standards, and package labelling from 1 January 2022. Under the new provisions, all overseas manufacturers of imported foods must register with the GAC and display the enterprise registration number on the inner and outer packaging of their food products. At the same time, the food products must come with a label in Chinese or meet the labelling requirements for specific food products. Also, the quality of the imported foods must be approved by the GAC ’s department of supervision responsible for import inspection and quarantine, otherwise upon arrival at a mainland port, the whole shipment of food products in question may have to be destroyed, returned to the exporter or undergo technical treatment.
In light of this, food manufacturers or traders in Hong Kong and other countries/regions wanting to tap the mainland food market should take note of the latest requirements implemented by the mainland on food imports. By taking the appropriate actions before their food products enter the mainland market, they can avoid losses in goods and money caused by non-compliance with the relevant regulations.
Mandatory registration
The mainland China authorities have tightened supervision over the import of food products. (shutterstock.com)
Under the old regulations, only overseas manufacturers of four categories of imported foods were required by the mainland authorities to apply for registration with the GAC. The four categories were meats, aquatic products, dairy products (including milk products and infant formula), and bird’s nest products. However, under the new regulations set out in Decree No. 248, starting from 1 January 2022, this is extended to cover all categories of imported food. In other words, overseas manufacturers of all imported foods are required to register with the GAC. They can either make the application themselves or through an agent. Henceforth, overseas manufacturers of imported foods that were not required to register in the past, such as those producing general foods like beverages, pastries and biscuits, must now complete registration with the GAC before their food products can enter the mainland market.
The GAC also named 18 categories of imported foods that must obtain a recommendation letter from the competent authority in the country or region of manufacture before they can proceed with registration. The 18 categories include the four mentioned above, as well as unroasted coffee beans, health foods, and nuts. Under Decree No. 248, the competent authority in the country or region of manufacture must examine and inspect the overseas enterprise in accordance with the registration requirements of the GAC. Upon confirmation of compliance, the competent authority has to provide the manufacturer with a recommendation letter, a compliance statement and an inspection report, and apply to the GAC directly for registration on behalf of the manufacturer.
Categories of Imported Foods Requiring Recommendation by the Competent Authority in the Country or Region of Manufacture
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Meats and meat products |
Sausage casing |
Aquatic products |
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Dairy products |
Bird’s nest and bird’s nest products |
Bee products |
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Egg and egg products |
Edible fats and oils |
Stuffed pasta |
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Edible grains |
Grain mill products and malt |
Preserved and dehydrated vegetables and dried beans |
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Condiments |
Nuts and seeds |
Dried fruits |
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Unroasted coffee beans and cocoa beans |
Special diet foods |
Health foods |
Whether the overseas manufacturer of imported foods applies for the registration itself, via an agent or through the competent government authority in its country or region, the GAC will examine the application materials and notify the applicant in writing of the result. If the application is successful, the manufacturer will be issued a registration number. In the past, this registration number only had to be displayed on the outer packaging of the food products. But under the new regulations, the registration number must be printed on both the inner and outer packaging of the food products in compliance with the requirements for import into mainland China. Although the scope of enterprise registration has been expanded under the new rules, the validity period of the registration has been extended from four years to five years.
More stringent food standards
Mainland China is devoting great efforts to raising the safety management level of imported and exported foods. Where imports are concerned, GAC Decree No. 249 stated clearly that imported foods must meet China’s laws and regulations as well as food safety national standards. Food imports that are subject to special requirements set out in international conventions and agreements entered into by China must also conform to the requirements in such international conventions and agreements. As for food imports for which no national standards have yet been set, they must meet the relevant applicable standards promulgated by the health administration department under the State Council. Food products made of new raw materials must obtain a new raw materials licence from the health administration department under the State Council, in accordance with the provisions set out in the Food Safety Law.
Chinese Customs may also use scientific methods to raise the level of supervising and managing the safety of imported and exported foods. For instance, under Decree No. 249, the GAC may organise experts to assess and examine imported foods via checks on materials, video inspections and on-site inspections. Food importers are required to establish a food imports and sales record system, recording a) the description, net content/specifications, quantity, manufacture date, manufacture or import batch number, and best-before date of the food product; b) the name, address, and contact information of the overseas exporter and purchaser; and c) the delivery date. They must also keep the relevant proofs properly. The records and proofs must be kept for no less than six months after the best-before date of the food. For food products with no definite best-before date, Decree No. 249 stipulates that the period for keeping the records and proofs should be a minimum of two years after the sale.
Upon their arrival at a mainland port, imported foods must be stored in a designated or approved venue and can only enter Chinese territory after passing customs clearance and inspection. Imported foods that fail customs clearance and inspection are given a certificate of non-conformity by Customs. If a food product is found to be non-compliant with safety, health and/or environmental protection rules, Customs will notify the importer in writing and order it to destroy or return the food products.
Food products failing customs clearance and inspection at first but later found to be compliant after undergoing technical treatment are allowed to enter Chinese territory. If an imported food product fails to undergo technical treatment within the set timeframe, or if it is still found to be non-compliant after undergoing technical treatment, Customs will order the food importer to destroy or return the whole shipment of food products. Decree No. 249 also sets out that imported foods that are subject to examination and approval of the quarantine of entry of animals and plants are also required to undergo quarantine examination and approval by Customs. In light of this, food importers must make sure that their food products have obtained the necessary quarantine approval before signing any trade agreement or contract.
Packaging and labelling requirements
Under GAC Decree No. 249, the packaging, labelling and marking of all imported foods must conform to China’s laws and regulations as well as to food safety national standards. Imported foods that are required to come with a manual must have a Chinese version of the manual. Other requirements are imposed on the labelling of the following imported foods, as follows:
Frozen meat products
The inner and outer packaging of the food products must be affixed with a secure and clear written marking in Chinese and English, or Chinese and the language of the exporting country/region, stating the following:
- Country/region of manufacture, product description, manufacturer registration number and batch number
- Specifications, country of manufacture (including state/province/city), destination, manufacture date, best-before date and storage temperature in the Chinese language on the outer packaging. It must be specified that the destination is the People’s Republic of China and the official inspection and quarantine marking of the exporting country/region must be displayed
Aquatic products
The inner and outer packaging of the food products must be affixed with a secure and clear written marking in Chinese and English, or Chinese and the language of the exporting country/region, stating the following:
- Commodity description and scientific name, specifications, manufacture date, batch number, best-before date and storage conditions, production method (saltwater fishing, freshwater fishing, farming), production region (sea area of ocean fishing, country or region of freshwater fishing, country or region of fish farming), and the name, registration number and address (including state/province/city) of all the manufacturing and processing enterprises involved (including fishing vessels, processing vessels, transportation vessels, independent cold storages). It must be specified that the destination is the People’s Republic of China.
Health foods and special diet foods
- A Chinese label must be printed and not affixed on the smallest sales packaging
Imported foods subject to special marking on their inner and outer packaging must comply with the relevant regulations. When a foreign food product arrives at a mainland port, Customs will check to see if it is affixed with a Chinese label and whether the Chinese label conforms to the necessary laws, regulations and food safety national standards. If the imported food product is found to be non-compliant and the importer refuses to destroy, return or perform technical treatment of the products as requested, Customs can issue a warning or impose a fine of under RMB10,000. If importers want to ensure their goods clear Customs smoothly, therefore, they should ensure that their products have a Chinese label printed or affixed on, and are compliant with the necessary regulatory requirements, before they enter Chinese territory.
Tapping the mainland market
With the mainland authorities making efforts to raise the level of imported food safety management, including implementing new regulations for imported foods as set out in the above-mentioned Decrees No. 248 and No. 249, Hong Kong companies must conform with the relevant provisions in order to maintain their share of the mainland market. As well as looking to capture the business opportunities offered by the huge mainland market, Hong Kong companies can also further expand the mainland food market by using their knowledge of mainland consumer demand, the geographic proximity of the city to the mainland (in particular the Guangdong-Hong Kong-Macao Greater Bay Area), the zero tariff preference on goods of Hong Kong origin under CEPA, and the good reputation enjoyed by Hong Kong brands in mainland China.
According to figures released by Hong Kong’s Census and Statistics Department, the total value of food exports from Hong Kong to the mainland rose from US$4.9 billion in 2016 to US$5.6 billion in 2020. In the first 11 months of 2021, the total value of food exports from Hong Kong to the mainland grew 13.5% from the same period the previous year to US$5.7 billion. About 90% of the food products exported by Hong Kong to the mainland were re-exports, of which over 50% were vegetable products, 27.6% were prepared foodstuffs and beverages, and 20.2% were animal products. Prepared foodstuffs and beverages accounted for the vast majority of food exports to the mainland manufactured locally in Hong Kong, with cereal products such as bread, pastries and noodles taking up the lion’s share.
The mainland offers a vast market for Hong Kong foods, and the amount of food it imports has been growing rapidly in recent years. Given the bright prospects of the mainland market, Hong Kong companies should continue to explore business opportunities there. However, as the mainland tightens food safety controls and introduces scientific methods to raise the level of food imports inspection and quarantine, industry players must do their best to comply with the latest food import regulations, such as applying to the GAC for registration and meeting the latest food inspection, quarantine and labelling requirements. By doing so, their products can clear Customs and enter the mainland market smoothly. Businesses should also pay close attention to the latest developments in the relevant mainland laws and regulations, so as to devise strategies to avoid customs clearance hiccups and requests to return non-compliant goods. It is only by doing this that Hong Kong companies can capitalise on their first-mover advantage and penetrate further into the food market in the GBA as well as other parts of the mainland.
[1] January-Novermber 2021 figures
[2] Excluding manufacturing, processing and storage enterprises of food additives and food related products
- Food & Beverages
- Mainland China
