1. 大想法 Traceability Solutions For Australian
Food & Agricultural Exports to China
大想法
CCIC Australia Pty Ltd

2. Contents How we define ChAFTA Regulatory Compliance
C. Differences in Supervision
D. CCIC Traceability Solutions
Contents

3. For a more reliable world
[1]
How we define ChaFTA:
win-win cooperation
CCIC
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4. ChaFTA Signatory：17/06/2015 Effective: 20/12/2015
From April 2005 to November 2014, 21 rounds of dialogues and dozens of consultations had been held before ChaFTA was signed. 1
Remove Tarriff Barriers
Meaning of ChaFTA 2
More Open Market 3
Hugh Business Opportunities
Source：Ministry of Commerce
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5. 1. Remove Tariff Barriers
Reduced to Zero at effective date
Tariff cuts in
3 ways 2
3 years after enforcement 3
5 years after enforcement
Items
Tariff Cuts
15.5%-0% over 10 years;
Special protection arrangement for beef.
Over 5 years for wines from
34.7% to zero.
Gradually reduced from 12.3% to zero over 5、10 & 12 years.
9 years period for Oranges
from 11% to zero.
Quota arrangement for wool;
Zero tariff within quota.
Transition over 5 years for lobsters to be reduced to zero.
Source：Ministry of Commerce
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6. Systematic arrangement more open, more efficient amd more streamlined
2. More Open Markets
Systematic arrangement
Market Channels
more open, more efficient amd more streamlined A
Australia was the first to make service and trade commitment to China by special administrative measures (Negative List) B
Most favored nation to each other, high quality recogniation C
Easier investment checks & market access; predictable and more transparency.
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7. 3.Huge Opportunities for Australian foods & agri-exports
According to WTO, China became the biggest importer of foods & agricultural products in 2011.
, China bought 4.791m shipments valued at US$ billion, 5.2% increased per year.
Australian agri-foods exports to China has increased
steadily year by year.
There will be more opportunities for Australian meats,
fruits, wines, seafoods and dairy products.
SEAN
Europe
USA
New Zealand
Brazil
Australia
Canada
Russia
Argentina
South Korean
Others
Meat imports
，China imported 2-3 million tons of meats,
3% of total. Meats came from 23 countries & regions,
Europe, USA & Australia being the First Three.
, China imported from Australia about 135,046t
of beef, about A$800 million.
According to AQSIQ, China import foods from 202 countries & regions, mostly from SEAN,Europe & USA. Foods from Australia accounts for 4.5%.
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8. For a more reliable world
[2]
Regulatory Compliance
CCIC
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9. TBT SPS Cooperative Machanism within the Framework of WTO
The Chinese Government proposed a cooperative system for food safety in trade with major business partners; strengthen collaboration with each other to build a new safety network.
TBT
SPS
Easier Trade
Technical measures
Standards
Audit/review recognition
Transparency
Cooperation
Technical Assistance
Capability Development
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10. For a more reliable world
International Cooperation & Mutual Recognition
AQSIQ has signed over 100 agreements with foreign countries to ensure food safety. The arrangement of each government taking their own responsibilities helps to ensure smooth trade of quality foods.
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11. FTZs & Deepening Reforms good for Sino-Australia Trade
China is following WTO rules to reform its
economy; establishment of Free Trade Zones
& open door policies are helpful measures
for FTA implementation. A
FTAs with more & more countries is an important step taken to be in line with WTO standards. B
FTA implementation & structural reforms help with each other. C
FTA is based on deepening consultation and mutual understanding.
+Free trade zones
+Easier trade arrangements
+Better collaboration to avoid risks
+Deepening reform
+Bilateral trade development
+Key trade partners
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12. 环保 Compliance & inspection/quarantine authorities Four Laws
Chinese authorities emphasize supervision
& management on industries & products
key to safety, hygiene & environment.
Metrology law
Product Quality Act
Law on Environmental Protection;
Registration Measures for Foreign Producers;√
Infant formula registration measures; ;√
Registration measures for dietary suppliments;;√
General Standards for Food Labels;
Supervisional & management Regulations on Inspection
& Quarantine of Dairy
Products;
+of Meat products;
+of Aquatic products;
+of Cosmetics
Implementation measures of Food Safety Act;
Other Related regulations.
Four Laws
Law on Commodity Inspection
Law on Animals & Plants Quarantine
Quarantine Act
Food Safety Act
More on compliance
Environment 环保
Under ChaFTA, most-favored nations arrangement does not change or intend to cancel policies, regulations and requirements still in force in both countries. Bilateral trade still needs to satisfy requirements in safety, health & environmental protection.
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13. For a more reliable world
Different roles of AQSIQ and CFDA
AQSIQ & Local CIQs
CFDA & Local FDAs
Before entry
√ Country assessment & evaluation
√ Negotiate on quarantine bilateral agreement
√ Registration of foreign producers
√ Importer registration
√ decision making power for examination & approval in quarantine
√ Registration of Dietary Suppliments (include checking labels & product description)
√ infant formula registration
At the time of entry
√ implementation of inspection and quarantine
√ handling non-conformity cases
After entry
√ Random checks
√ risk assessment & precautions
AQSIQ: General Administration of Quality Supervision, Inspection and Quarantine of PRC
CIQ: China Entry-Exit Inspection and Quarantine
CFDA: China Food and Drug Administration
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14. For a more reliable world
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Differences
in Supervision
CCIC
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15. Imported Food Safety Supervision in China
Before Importation
At the time of Importation
After Importation
Importing country's Food Safety System Review
Quarantine at designated ports of destination
Review of Foreign food safety system
Producer Registration & Management
Quality certification system
Imports & sales records
Exporter Registration
Handling applications for inspection & quarantine
Recall system
Health Certificate Review
Re-inspection system
Importer/exporter credit rating
Market Access Audit for animal & plant origin foods
Measures for non-qualified foods
Importer/agent
Consultation system
Annual Review of registration
Safety risks monitoring system
Result recognition of Third party inspection
Formula registration
Risk Precaution & reaction system
Management system for voluntary quality guarantee
Preshipment inspection
（资料来源：质检总局）
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16. Main problems of imported foods (2011-2015)
AQSIQ has listed 20 categories of quality non-conformities with imported foods during The 4 main problems are: Microbial contamination, bad quality, problem of food additives and labelling non-conformities. These problems account for 3/4 of defective shipments.
Microbial contamination
Quality problems
Food additives
Labelling problems
Inspection certificates
Polluted matters
Inedible additives
Packaging problems
Cargo & certificate non-conformity
Illegal imports
Others
（Source: AQSIQ）
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17. Products required Chinese Label
What products require Chinese Label:
1)Under Chinese Food Safety Law, all imported food, food additives and food-related products shall conform to the national food safety standards of China;
2) Imported food shall be subject to the inspection by CIQ. Imported pre-packed food shall have labels and instructions in Chinese.
3)The labels and instructions shall conform to the Law, administrative regulations and national food safety standards of China, and tell the place of origin as well as the name, address and contact information of the domestic agent.

18. Chinese labeling requirements
Complexity of Chinese labeling requirements:
There are four base labeling standards for all prepackaged foods label:
GB General Rules for the Labeling of Prepackaged Foods
GB Standards for Food Additive eg: Sulfur dioxide in wine, Vitamins in Dairy
GB General Rules for Pre- packaged food nutrition labels
GB Standards for Nutrition Supplements in Foods
And for some products there are additional requirements on label
GB Standards for Label on Special Dietary Prepackaged foods
eg: Infant formula required full Chinese and English print on tin after April 1st 2014
Chinese label does not comply with Chinese requirements:
When label does not comply with Chinese requirements, will cause rejection of the goods.
Labeling issues accounted for almost 30% of rejection in food products.
Quality issues accounted for about 40% of problems.

19. For a more reliable world
[4]
CCIC Traceability Solutions
CCIC
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20. About CCIC For a more reliable world
CCIC Australia: Based in Australia
Serving International Clients
branches & offices in over 30 countries
CCIC, serves as an independent 3rd party, a certification & inspection organization dedicated to providing inspection, verification, certification & testing services to international clients.
CCIC Australia established in 1989 has been serving Australian
businesses in all major industries & made its contributions to
China-Australia trade.
Over 200 cooperative labs
18,000 employees
CCICs in 31 provinces & regions
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21. Background of CCIC Traceability Solutions
Advice on Development of Traceability System for key imports by State Council;
AQSIQ/CNCA authorization, and CIQ cooperation；
Related laws & Regulations on Quality Control & Administration by Gvmt authorities;
Cooperation with CIQ、CNAS certified labs.
Safety &
Quality
Control
Based on CCIC's inspection, certification and marketing services;
Label approval, Origin of Australia label, anti-forgery tags;
Preshipment quality inspection and loading supervision;
Coordination at destination ports and follow-up services.
CCIC
Inspection certification
Development of PSI system and integrated with local CIQ management systems;
Development of Traceability Service System, big data & information management;
Technical support from both China and Australia;
Legal instructions from technical professionals.
System &
technical support
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22. CCIC Traceability Structure
Services
Assist in Supervision
Follow-up Services
Before
Export/
import
After
Discharge
Supervision
Draft Survey
Other
services
Quality Control
Factory Audit
Product
Certification
Preshipment
Quality Inspection
Loading
Supervision
Label Approval
Assist exporters for compliance with China requirements
Help with labelling problems; better understand product
Monitor logistics;
reasons for shortage
Coordination with CIQ;
Safeguard interests of related parties
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23. CCIC’s Services for prepackage food
How to minimize your risks for refusal at destination ports and achieve fast clearance？
How to ensure that your products comply with China’s changing law and regulations？
1）Label Approval: Labels shall be checked of their design and contents in accordance with related rules and regulations formulated by Chinese authorities. This service shall avoid the risk of refusal as a result of label nonconformity at destination ports and is conducive to a smoother delivery.
2）Quality Approval: Pre-shipment quality approval by our designated or cooperated laboratories according to China’s health and safety requirements ensures that your products are qualified for entrance and thus helps build up a fast channel for entry clearance.
3）Loading Supervision: This service provides conformity inspection on weight, quantity and the process of loading and a certificate issued as a result helps your goods entering China through a specially arranged fast channel.
4）Origin Traceability: This service can provide product traceability throughout the production. CCIC Australia traceability management platform could showcase brands and products to help you explore the market. Thus builds up more confidence amongst Chinese consumers.

24. Security labels against forgery
Main purpose of Service Platform and its demonstration
Shall increase the brand’s market value and build up stronger trust and acknowledgement of that brand to ensure customers in china will have the access to a basic insight and trust to those products.
Brand Origin Traceability
Shipment Traceability
Security labels against forgery
Origin
Traceability
Entrusted by CCIC Australia to use QR codes on shipments of certified products. Ensure full traceability and access for verification,traceability information will be demonstrated on the website to provide a solid evidence of Australia made. Customers can check those information online or by using certain apps.
CCIC Security labels can be attached to the smallest packages of each product certified through this platform. A crucial requirement to gain fast Customs Clearance Services.

25. Work Relations in Traceability System
Exterior
Interior
Registration
PSI audit
Label approval
Preshipment
Quality inspection Lab testing
Loading supervision
Draft survey
Lab test
port coordination
Origin
Traceability
Quality
control
Consumers
Importers & exporters
Enquiries
Apply for inspection
collaboration
data base
Sharing
Core services
system
AQSIQ & CIQs
Data exchange
Assist with
Supervision
PSI system & Traceability Platform
Industry Associations
International
Network
Local
Resources
Other Organizations

26. Traceability Solutions for Australian Agricultural & Food exports to China
CCIC is dedicated to providing inspection and certification services to Australian exports in the fields of quality, safety, health and environmental protection.
Our ideology for traceability solutions is a one-stop service provider of identifying differences, monitoring key process, with complete quality control and preshipment inspection.
Thank you!
CCIC Australia Pty Ltd
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