When I was reading the Wine in China: The Wild West of the
Far East case I was thinking about the rules and regulations that are required
to be in accordance with in order to legally set up an operation in the Chinese
market. This was primarily a thought because a vitamins business that I worked
with before school had to effectively exit the Chinese market because of new
regulations that made it very challenging for foreign health food products to
enter China. Also, having just finished reading Shoe Dog and learning about the
about the difficulties that Phil Knight and Nike faced when setting up operations
in China, it was particularly top of mind.
It didn’t take long to realize that creating a wine business
in China is not an easy task either.
·
Taxes
o
VAT: 17%
o
Custom duty: 14%
o
Excise tax: 10%
·
Steps
o
Signing agreement with Chinese importer
o
Registering company with AQSIQ
o
Registering label
§
Labeling requirements
·
Name/brand of product
·
Ingredients list (Sweeteners, preservatives and
added color – legal in the case of fortified wine only – must be declared)
Exempt for products made of one ingredient.
·
Net volume (ml): This should be marked as ‘net
content xxx Ml (ml)’ for bottle sizes under a liter, or ‘net content x Liters
(l)’ for bottle sizes over a liter. For packages up to (and including 200ml)
the minimum print height is 3mm. From
200ml up to and including 1 liter, the minimum print height is 4mm. For packages greater than 1 liter the minimum
print height is 6mm.
·
Alcohol content (%): The alcohol statement
should be in the ‘Alcoholic strength xx.x% vol’ format.
·
Production date (yy/mm/dd): The date of bottling
is required on Chinese labels.
·
Producer/Distributor/Importer (Name and
address): The name and address of the Chinese agent, importer or distributor
must be shown on the label. The name and address of the producer is not
mandatory, however if included does not need to be translated into Chinese
characters
·
Country of origin: A country of origin statement
is mandatory. Importers will usually request a Certificate of Origin to confirm
this claim.
·
Minimum durability date: Wines with an alcohol
content of 10% or less are required to include a minimum durability date.
·
Product Type: (i.e. Grape Wine, ‘red’, ‘white’,
‘sparkling’, ‘semi-sparkling, ‘fortified’, ‘sweetened fortified’, etc.)
·
Sugar content (g/L)
·
Mandatory Warning Statements: The following and other warnings must be on
the bottle in Chinese: "Excessive drinking is harmful to health" or
"Pregnant women and children shall not drink". For beer in glass bottles also add "Do
not hit; it might cause explosion of the bottle".
·
Required documents
o
Commercial invoice
o
Customs Value Declaration
o
Freight Insurance/documents
o
Packing List
o
Insurance Certificate
o
Certificate of Origin (for distilled spirits and
malt beverages only)
o
Certificate of Health/Sanitation (for distilled
spirits and malt beverages only)
o
Certificate of Authenticity/Free Sale (for
distilled spirits and malt beverages only)
o
Consolidated Wine Export Certificate (for wine
only)
·
Licensing and registration
o
Must submit an application to the Exit-Entry
Inspection and Quarantine Bureau
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