www.worldoffoodbeijing.com Nov. 26-28, 2014 China National Convention Center, Beijing

1. World of Food Beijing – powered by Anuga Imported Food Procedure Guideline www.worldoffoodbeijing.comNov. 26-28, 2014China National Convention Center, Beijing

2. Content General Introduction Type & License Documents of Imported Food Import Procedure of Imported Food Distribution Channels References World of Food Beijing – powered by Anugawww.worldoffoodbeijing.comNovember 26-28., 2014China National Convention Center

3. 2010 2011 2012 Beijing 28.8 50.1 76.5 Beijing & Tianjin 50.7 80.2 110.4 Northern Regions 72.7 111.4 145.3 Shanghai 41.4 54.2 65.2 • Yangtze River Delta 77.9 102.9 117.1 North China– Market Analysis Imported Food Statistics (billion US$) By 2018, China will become the world’s largest consumer of imported food, with an estimated market valued at up to US$80 billion. According to estimates by the Association of Food Industries (AFI) Northern Region (includes Beijing, Tianjin, Hebei, Shanxi, Inner Mongolia and the Northeast) Yangtze River Delta Region (includes Shanghai, Jiangsu, Zhejiang, Anhui and Jiangxi) World’s Leading Market for Imported Food In line with China's economic development, the country has shown growing acceptance and strong demand for imported food. For the past five years, food imports grew more than 20% annually. From January to November 2012, food imports were valued at US$40.8 billion, an increase of 25%. The Market Potential – These Figures Speak for Themselves In recent years, the growth rate of imported food in Beijing has outperformed other regions. In 2011, Beijing imported food worth US$5 billion (+74% compared to the previous year). At the same time, Shanghai’s food imports were valued at US$5.4 billion (+31%), and Guangdong’s food imports stood at US$7.4 billion (+25%).Only one year later, these figures were already at US$7.66 billion for Beijing (+53%), US$6.52 billion for Shanghai (+20%) and US$8.75 billion for Guangdong (19%). World of Food Beijing – powered by Anugawww.worldoffoodbeijing.comNovember 26-28., 2014China National Convention Center

4. Consumer Behavior on Food Consumption – North China Dedication One of the World’s Biggest City – Development Determines Food Consumption • One of the largest and wealthiest cities in China with population of more than 20 million and GDP per capita of US$11,000, double the China average. Be as a major location for hotels, restaurants, businesses and embassies which contribute to a high percentage of the imported food consumption. Bohai Economic Rim - Radiating Demand Fuels the Economic Growth Regions around the epicentre of Beijing also show strong performance and growth in imported food. In 2012, US$19 billion or around 45% of China’s entire food imports came via North and Northeast China. Besides Beijing, this includes Tianjin (US$3.4 billion), Liaoning (US$2.6 billion), Shandong (US$6 billion), and other parts of North China with around US$900 million. One of the World’s Biggest City – Hospitality Contributes to the City Development - Catering industry with sales volume of US$13.7 billion in 2012 - 40,000 registered food and beverage enterprises - The value of tourism shopping and food consumption achieved S$30.9 billion, a year-on increase of 11.3%, taking up approximately 24.6% of the entire society’s consumer goods. Capital City Positioning & Planning - The national circulation market center In 2010, the sixth national census data shows the population of Beijing permanent resident reached 19.6 million, while the city residents per capita disposable income achieved RMB29 thousand. Due to rapidly development in consumption structure, consumers’ changing needs, quality and diversity of consumption, consumer groups intend to have more expectations on high quality products which lead to a great potential market for Agriculture Production Industry to develop. World of Food Beijing – powered by Anugawww.worldoffoodbeijing.comNovember 26-28., 2014China National Convention Center

5. Exhibit Profile – Target Audience Positioning 20% Sweets & Snacks • Fine Food & Imported • Food • - Dairy Products • - Bread & Bakery • - Meat & Seafood • - Frozen Food • - Organic Food • Sweets, Confectionery & • Snacks • - Coffee & Tea • - Fruits & Vegetables • Alcoholic & Non • Alcoholic Drinks (incl. Wine) • - Olive Oil & Edible Oil higher growth than other segments Still underdeveloped market Exhibit Profile 20% Dairy annual growth for milk powder World’s leading dairy import market 25% Meat Trends Online Stores Featured Restaurants Popular Restaurants Well-known Chefs Food Critics Famous Sommeliers Food Related Media Food Traders Wholesalers, Retailers, Importers & Exporters, Supermarkets growth in meat imports in 2012/13 Consumption at 70kg per head China consumes 1/4 of all meat worldwide 15 Wine Channels Hotels Restaurants Bars KTV Business Club Bakeries Pastry Shops Coffee Shop Convenient Stores US$ billion Food Industry Conceptual Leaders Explosive growth gates up to 100% since 2007 Expected to become largest market worldwide Target Visitors 55% Olive Oil annual growth high margins, low entry barriers Industry Government Organizations Embassies & Consulates Chamber of Commerce, Universities & Research institutions 10% Coffee & Tea annual growth Not a traditional coffee nation, but gradually establishing a coffee culture World of Food Beijing – powered by Anugawww.worldoffoodbeijing.comNovember 26-28., 2014China National Convention Center

6. Type & License Documents of Imported Food World of Food Beijing – powered by Anugawww.worldoffoodbeijing.comNovember 26-28., 2014China National Convention Center

7. Import Procedure of Imported Food Execution Stage Trade Stage Pre-import Stage Producer/Manufacturer Congruous with imported food policy in China & region of production. Come to an agreement with domestic importers about product import. Producer at Origin 1. Overseas companies require for their local quarantine of the imported food 2. Local quarantine bureau requires AQSIQ & CNCA for an overseas on-the-spot investigation 3. Overseas companies get to receive permission from the AQSIQ & CNCA for the record. Producer at Origin 1. Prepare relevant documents in the origin country 2. Early stage documents preparation in China 3. Documents double check and confirm Goods Shipment International Trading Contract Circulation Importers 1. Business License – business scope incl. non pre-packed food 2. The Ministry of Commerce for the record (The Registration Form for Foreign Trade) 3. Food Circulation License Non Pre-packed Food Importers in China 1. Customs Declaration & CIQ Inspection 2.Tax Clearance & Goods Release 3.Inspection & Quarantine Licensed Importer Must have the qualification of conducting food import business Come to an agreement with the producer at origin about the imported food business contract. Importers 1. CFNA for the record –consignee for quarantine 2. Animal & PlantQuarantine License for the record Non Pre-packed Meat Importers 1. The Ministry of Commerce for the record (The registration Form for Foreign Trade) 2. Food Circulation License 3. Business License for pre-packed food Pre-packed Food World of Food Beijing – powered by Anugawww.worldoffoodbeijing.comNovember 26-28., 2014China National Convention Center 操作阶段

8. Distribution Channels • Import and distribution channels • Import and distributon channeld are complex and change frequently frequently.lmport procedures must be handled by licensed importers who rarely also act as distributors.Similary, food distributors and traders are unlike to hold import licences. Currently, Hong Kong traders offer the least risk as importers and distributors. They can arrange payment in foreign currency and have a wide distribution network.Chinese traders can be relucatant to open lines of credit and sometimes lack a thorough understanding of international trading practices. In China, the ministry of Commerce maintains a searchable platform of importers call the world Importer Net. Though not necessarily complete, the site lists food and beverage importers under seven categories. Users can search in a specific category for a given geographical area. For example for the category ‘non-alcoholic beverage, alcoholic beverages and vinger’ there are 120 importers in sanghai and 54 in Beijing. For each importer the maior countries from which imports are sourced and from which products are imported are listed. Once inside China, there is a contradiction between the upscale and affluent appearance of many shopping precincts and the underlying retail distribtion network that remains localised and fragmented. There is no ationwide network of trucks, highways and cold storage warehouses to efficiently deliver supplies from the manufacturer of importer to the store shelf. The mator retailers, including Carrefour and Tesco, have a central distribution centre, but no large regional distribution receiving most imports through a series of local distributors. Producer/Manufacturer Exporter/Consolidator Oversea China 0.. Import Licensed Importer Logistics Agent Importer/General Distributor Hypermarket Purchasing Center Repacker/ Distributor Wholesaler Secondary/ Distributor Secondary/ Distributor Local Distributor Wet Markets Local Stores Convenience Chains Supermarkets Hypermarkets Chart Adapted from USDA FAS 2011 The F&B market in China EUSME 2011 World of Food Beijing – powered by Anugawww.worldoffoodbeijing.comNovember 26-28., 2014China National Convention Center