What core dimensions of compliance, quality and cost control should be considered when selecting high-quality imported fruits?

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I am the owner of a high-end community fruit store that has been operating for 3 years in Shanghai. Recently I want to increase the proportion of imported fruits on sale. I had a terrible experience when I purchased Chilean cherries for the first time before: nearly one third of the goods rotted due to cold chain break upon arrival, and were detained by customs for 3 days because the phytosanitary certificate provided by the supplier had defects.

I spent more than 8,000 yuan on extra port demurrage and storage fees, and almost lost all the profit of that month. Now I am having difficulties in re-selecting products -- how to judge the transportation and preservation capacity of fruits? Which categories of imported fruits have low compliance thresholds and low risks?

How to balance quality and procurement costs, so as to retain regular customers without losing money? I have been struggling with this issue for nearly two months, even thinking about it when I sleep, for fear of losing money and ruining the store's reputation like last time, so I hope you can give me some advice.

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Lucas Liu
Lucas LiuYears of service:8Customer Rating:5.0

Senior Operations ConsultantStart a Chat

Many small and medium-sized imported fruit purchasers are prone to fall into the misunderstanding of "only focusing on quotations and surface freshness". They do not realize that this will trigger a chain of negative reactions: if document qualification review is ignored,for example,the origin marked on the phytosanitary certificate is inconsistent with the actual source of goods,it will directly lead to customs detention. If perishable fruits are detained at the port for more than 5 days,they will rot on a large scale. You will not only have to bear high port demurrage and storage fees,but also may face the penalty of goods being destroyed,if you only focus on the bright appearance of fruits and do not check the full-process cold chain records,a temperature deviation of more than 1℃ during transportation will lead to abnormal enzyme activity inside the fruits,which will cause soft rot and deterioration 1-2 days after being put on the shelf,directly damaging the high-end reputation of the store and leading to loss of core customers.

Two core actions should be taken for physical risk isolation: first,log in to the official website of the General Administration of Customs in advance to check the Imported Fruit Access List to confirm that the purchased varieties and origins are fully within China's access scope,and strictly prohibit purchasing unapproved categories,second,require suppliers to provide full-process temperature control traceability records,covering real-time temperature data of pre-cooling at the port of shipment,temperature control at the transit port and container pickup at the port of destination,with temperature deviation not exceeding ±1℃. At the same time,strictly verify the three-way document consistency (the name,batch and origin of goods on the certificate of origin,phytosanitary certificate and customs declaration form must be fully matched).

Exclusive loss prevention tip: Sign a pre-signed cargo damage compensation agreement with a professional foreign trade agency company,agreeing that if cargo damage or customs detention is caused by non-purchaser issues such as document defects and cold chain breaks,the agency company shall compensate 80% of the cargo value within 3 working days,and coordinate with the customs to open the "fast inspection channel for fruits and vegetables" to shorten the exception handling cycle from 7 days to 3 days,minimizing losses.

Reference: Olio Pump Import: Key Steps & Risk Control
Grace Wang
Grace WangYears of service:10Customer Rating:5.0

Senior Foreign Trade ConsultantStart a Chat

In the customs declaration process of imported fruits, priority should be given to the consistency of documents and access compliance, especially the name, batch and origin of goods on the certificate of origin, phytosanitary certificate and customs declaration form must be fully matched. If documents are inconsistent, the customs will initiate a price review dispute or customs detention process. Perishable fruits detained at the port for more than 5 days will suffer irreversible cargo damage.

For high-value fruits such as cherries and durians, the customs will review the price with reference to the import price of the same category in the same period. It is necessary to prepare supporting materials such as procurement contracts and foreign exchange payment vouchers in advance to avoid additional costs caused by price review objections. In addition, it is necessary to confirm through the official website of the General Administration of Customs that the purchased varieties and origins are included in the import access list, and strictly prohibit purchasing unapproved varieties, otherwise the goods will be returned or destroyed.

Cindy Chen
Cindy ChenYears of service:3Customer Rating:5.0

Key Account ManagerStart a Chat

The core of imported fruit logistics lies in the stability of the full-process temperature control chain. Priority should be given to shipping companies or airlines with professional fruit and vegetable cold chain qualifications, and full-process temperature control records covering real-time temperature data of the port of shipment, transit port and port of destination should be required, with temperature deviation controlled within ±1℃, so as to avoid internal decay of fruits caused by cold chain breaks.

For perishable fruits such as blueberries and raspberries, it is recommended to choose direct routes to reduce the temperature control risk of transit links. At the same time, it is necessary to clarify the cargo ownership of the bill of lading, adopt "To Order" bill of lading, and clarify the operation authority of the agency company in the bill of lading endorsement link to avoid cargo right disputes. In addition, it is necessary to confirm the free storage period and free container period at the port of destination in advance, and apply for an extension of 2-3 days through the agency company to avoid high container detention fees.

Daniel Xu
Daniel XuYears of service:10Customer Rating:5.0

Director of Import & Export OperationsStart a Chat

The core of tax planning for imported fruits is to make reasonable use of the VAT deferment policy. For eligible imported fruits, you can apply for deferred payment of import value-added tax, without paying the full import value-added tax at the time of customs clearance, and delay the tax payment node to the VAT declaration period, effectively alleviating cash flow pressure.

In addition, attention should be paid to the tariff rate of imported fruits. Some fruits from ASEAN and RCEP member countries can enjoy zero tariff or preferential tariff rates.

It is necessary to confirm the authenticity and compliance of the certificate of origin in advance to ensure that you can enjoy the tariff preference. At the same time, it is necessary to standardize the pricing of cross-border related transactions, avoid transfer pricing investigations by tax authorities caused by unreasonable pricing, and retain materials such as procurement contracts, invoices and foreign exchange payment vouchers as supporting evidence.

Andy Guo
Andy GuoYears of service:3Customer Rating:5.0

Supply Chain Management ExpertStart a Chat

The collection and payment of foreign exchange for imported fruits must strictly comply with cross-border payment compliance requirements. Priority should be given to settlement through the CIPS RMB cross-border payment system to avoid exchange rate fluctuation risks. At the same time, ensure that the foreign exchange payment amount is completely consistent with the amount of the procurement contract and invoice, and overpayment or underpayment is strictly prohibited.

For fruits imported from non-RCEP member countries, it is necessary to confirm the foreign exchange control policies of the corresponding countries in advance to avoid delayed foreign exchange payment due to insufficient foreign exchange quota. In addition, it is necessary to retain materials such as foreign exchange collection and payment vouchers, customs declaration forms and bills of lading to ensure the consistency of "goods, certificates and funds", so as to avoid being inspected by the State Administration of Foreign Exchange due to compliance issues. If an offshore account is used for settlement, regular account audits should be conducted to ensure that transaction records are clear and verifiable.

Michael Zhang
Michael ZhangYears of service:6Customer Rating:5.0

Customs Declaration & Compliance ExpertStart a Chat

The on-site inspection of imported fruits focuses on pest detection and quality sampling. The customs will adopt machine inspection or unpacking inspection according to the risk level, and high-risk varieties such as durian and mangosteen will be subject to 100% unpacking inspection. When dealing with inspection, prepare documents such as phytosanitary certificate, certificate of origin and customs declaration form in advance to ensure complete documents. If pests or quality problems are found, cooperate with the customs for inspection.

The inspection cycle is generally 3-7 days. It is necessary to communicate with the agency company in advance about the exception plan to avoid the goods being detained at the port and rotting due to inspection. In addition, check the authenticity of the container seal. If the seal is damaged, take photos immediately for retention and explain the situation to the customs to avoid being identified as a risk of cargo right transfer.

Eric Zhou
Eric ZhouYears of service:6Customer Rating:5.0

Senior Manager of Foreign Exchange & Tax RebatesStart a Chat

From the perspective of supply chain planning, a "direct procurement from origin + regional distribution" mode should be established for high-quality imported fruits to reduce intermediate circulation links, lower procurement costs and cargo damage rates. At the same time, inventory linkage should be carried out according to terminal market demand. For example, lock in the supply 2-3 weeks in advance during peak seasons such as the Spring Festival and Valentine's Day to avoid price increases and supply shortages.

For perishable fruits, it is necessary to establish a pre-cooling and fast distribution system to ensure that they are put on the shelf for sale within 24 hours after arrival, reducing losses. In addition, regularly analyze terminal sales data, adjust procurement categories and quantities, improve inventory turnover rate, avoid the risk of slow sales, and give priority to selecting origin sources that meet China's access standards and have a mature cold chain system.

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