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Trading Infant Formula through CBEC: Does it Require Chinese Language Labelling?

AQSIQ China clearly and publicly stressed that "Infant formula for personal use imported through postal way or parcel express (different from CBEC model) does not require printed or pasted Chinese labels.

AQSIQ China clearly and publicly stressed that "Infant formula for personal use imported through postal way or parcel express (different from CBEC model) does not require printed or pasted Chinese labels.

For goods imported in bulk consignments through traditional trade channels, labeling requirements should comply with food safety legislation and thus would require a China specific box design complete with Chinese language nutritional information, instructions etc.

So what about CBEC? I have to admit that this topic is still a controversial one and labeling requirements and disparities in province to province, port to port enforcement duties muddy these waters even more. Let’s looks at it on a case by case basis.

Labels matter to CBEC imported food

Case 1: One consumer ordered online from an imported baby food. After he made his order he sued the Court at Suzhou because the product had NO Chinese labels applied to the products. The online retailer is a CBEC company and asserted that all products were delivered directly from bonded warehouse and through 3rd party express service provider overseas; the Court explained that a CBEC company which retails imported food should comply with the Food Safety Law. The company was sentenced to pay ten times the value of the goods purchased as compensation.

Case 2: In Hangzhou, the Court made a different decision on an almost identical case. The court required that one of the leading CBEC platforms should accept the return of products as the consumer found that the labels of the food failed to comply with related food regulations.

Exceptional case 

Case 3: One local Court at Chongqing made a different sentence against "non-complied label" of CBEC imported food however. One consumer raised legal action against a CBEC e-platform for the reason that overseas IF without Chinese labels should not be allowed to be imported. After reviewing the case, the local Court finalized it with the decision and dismissed the consumer’s case. From the perspectives of the court, CBEC is a fresh-new model of international trade which should be treated differently from traditional trade. Consumers should be responsible for commodities imported through CBEC model which are sold for personal use only. 

The Court also offered some clarification on their interpretation of the case stating that It was the “consumer who committed to making the purchase on the e-platform and is bound to a special sales contract made between the consumer and the CBEC platform whereby the CBEC platform is only bound to fulfill purchase, custom clearance, logistics requirements in return for payment. Under these circumstances the e-platform shall not be responsible for compliance with the food Safety Law. 

To sum up

CBEC model is a new and convenient way of purchase in China that is accepted by overseas suppliers and Chinese consumers. In 2 and a half year's development, the procedures and enforcement implemented by Customs and local CIQ are starting to take shape. The premise is that consumers are given special access to goods in a manner beyond the scope of the food safety law in China. However, this does not mean this interpretation has also been widely accepted by CFDA, local FDA and courts. Under the Food Safety Law Chinese labels must be applied to both traditional trade and CBEC model. We have to admit that the conflict between different authorities exists, but it is expected that the gap will finally be bridged.

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