Australian food and beverage to China(2)

 Australian wine exports to China have risen significantly. In 2007
            China surpassed Japan becoming the largest export market in Asia for
            the Australian wine industry. Australia also ranked second largest
            overall supplier of bottled wine to China. Data released by the
            Australian Wine and Brandy Corporation (AWBC) highlights the
            importance of China as a key emerging market for Australian
            exporters. Over the calendar year ending December 2007, Australia
            exported over 17.9 million litres of wine to China, with a total
            export value exceeding A$55.7 million.
            The AWBC and Austrade work closely together in promoting a unified
            Australian wine industry marketing and educational message to the
            Chinese market. In August 2008, the AWBC and Austrade China
            announced a new, cooperative partnership for the China market. The
            partnership will work towards the effective development and
            coordinated delivery of the Wine Australia China Market Program and
            Austrade China抯 business development and export promotion
            initiatives to the benefit of the Australian wine industry.
            Both organisations support in-market initiatives including a China
            Australia Wine Importers Network (CAWIN) for importers and
            distributors of Australian wine in China. All Australian wines
            destined for export to China must have export approval from the
            AWBC. More information about Australian wine export licensing as
            well as Chinese imported wine regulations and requirements is
            available via the AWBC China market guide. For further information
            please refer to the AWBC website: www.wineaustralia.com
            Given the continued opening up of the China market, and with a
            bilateral Free Trade Agreement between Australia and China under
            discussion, there is potential for further growth in Australian food
            and beverage exports to China.
            Currently, however, a range of Australian food and beverage products
            are still not permitted for export into China, as protocols are yet
            to be negotiated and agreed between the Chinese and Australian
            governments. Exporters are encouraged to confirm their product
            eligibility to enter the Chinese market prior to engaging in
            commercial activities with Chinese customers or directly investing
            in a Chinese business opportunity. Exporters can make initial
            enquiries to their local Australian Quarantine and Inspection
            Service (AQIS) office or Austrade.
            Tariffs, regulations and customs
            Following entry into the World Trade Organization, China has reduced
            its overall average tariff for agricultural products from 21.2 per
            cent to 15.3 per cent. However, China still has pockets of high
            tariff protection - as high as 65 per cent on some key products of
            interest to Australia.
            Australia-China Free Trade Agreement negotiations are progressing on
            tariffs and other China market access issues. These include tariff
            rate quotas, standards and technical regulations.
            Industry standards
            All import foodstuffs and beverages are subject to inspections by
            the China Entry-Exit Inspection and Quarantine Bureau (CIQ).
            Quarantine and Inspection in China can be complicated and
            challenging, so be prepared and do not underestimate the cost,
            documentation and time required. Accessing up-to-date information on
            quarantine and customs requirements such as labelling and packaging
            requirements, food standards and allowable ingredient listings can
            be challenging. The most recent China Entry-Exist Food and Beverage
            Quarantine and Inspection Industrial Standard took effect on
            December 1, 2007.  The new Standard adopted the internationally
            common use, 3MTM PetrfilmTM as one of its standards.
            All imported pre-packaged food must be labelled in both English and
            Chinese (simplified Chinese as used in mainland China) with the
            general standard for the labelling of pre-packaged food
            (GB7718-2004), the following is the example of minimum information