The enthusiasm and appreciation for wine among Chinese consumers has grown over time, providing opportunities for overseas exporters. Wine isn’t just purchased as a present or drank by the wealthy. Many people now have access to high-quality vintages and have stopped drinking local alcoholic beverages like baijiu. In China, selling wine is a complicated process. Exporters must adhere to Customs regulations, learn local standards, and comprehend the exporting process. Furthermore, understanding a customer’s chosen taste and style is a difficult task for organizations.
Targeting Market Niche
China is a vast market with a lot of potential. While wine is in strong demand in first-tier cities including as Beijing, Shanghai, Guangzhou, and Shenzhen, retailers face fierce competition. Meanwhile, demand in smaller and regional cities is lower, but competition is also lower. Businesses will have more untapped opportunities as a result of this. The taste of wine varies depending on the locale. It’s critical to think about what customers desire in a certain market. According to recent studies, Chinese wine drinkers prefer fruity wines with lower tannin levels. Aromatic white wines have a lot of promise for expansion, and sparkling wines (the sweeter types) are growing more popular.
To avoid issues, it is vital to research the legislation and local standards before exporting any consumable products to China. Businesses must comply with regulations set forth by the General Administration of Quality Supervision, Inspection, and Quarantine (AQSIQ) before their wine goods can be sold. They must also meet Guobiao (GB) requirements. The Food Safety Law of the People’s Republic of China (2015), the National People’s Congress (2015), the President Order 22 (2015) for advertisement, the SAIC: Measure for Administration of Special Signs of Geographical Indication Products, and the Trademark Law of China are all regulations that apply to wine exports to China.
The Procedure for Exporting Wine to China
Businesses interested in selling wine in China must take the proper measures. They must first locate and contract with a local importer who will conduct product registrations with the State Certification and Accreditation Administration (CAA) and the AQSIQ. They must also register the label and submit a number of paperwork to the China Inspection and Quarantine (CIQ) for evaluation prior to the wine shipping.
The local importer must declare the products at the nearest CIQ office once they arrive in China. Once the shipment has been determined to meet local criteria, a certificate of approval will be issued. Imported wines are also subjected to product testing to determine levels of metals, minerals, and vitamins.
Import Taxes and Tariffs
Tariffs on most imports are administered by China’s General Administration of Customs, which cover packaging charges, freight, insurance premiums, and other service charges incurred prior to the products being unloaded at their final destination. Imports of wine are subject to three different taxes: VAT (17%), customs charge (14%), and excise tax (10 percent ). Countries with Free Trade Agreements with China will no longer be required to pay customs duties in the future. Import tariffs on Australian wines, for example, have been abolished as of January this year.
Final Thoughts on Exporting Wine to China
China’s wine market has developed significantly in recent years and is likely to do so in the future. While businesses considering entering this industry must evaluate a lot of factors and adhere to a number of rules, doing so will provide them a competitive advantage and avert major setbacks in the long term.