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Insights into China's Fruit Import Business

Get an internal view of the fruit import industry in China, including market trends, major distribution centers, legal risks, and more.

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Insights into China's Fruit Import Business

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  1. Kurt Huang Shanghai Oheng import & export co., ltd. What is happening in China: an internal view Qué pasa en China: una mirada interna March 13th, 2015

  2. Who are we? • We are the major fresh fruit import service provider in Shanghai since 2003, now with a team over 50 employees. • (We don’t buy or sell fruits) • We were previously known as the Consignee: • Shanghai New Long March Int’l Trade Co., Ltd. • And now: Shanghai Oheng Imp & Exp Co.,Ltd. • FruitEaseis our service brand, means: Make the fruit business easy! • We led the whole industry in Shanghai made the market shift from over crowded old market ( Longwu) to the new one, Shanghai Huizhan Market. • BTW, we are the shareholder of Huizhan market.

  3. Agent Import Service &Integrated Logistic Service Import Permit Customs Clearances Container Logistics Import Agent (Shanghai Oheng) Delivery Shipment Sign Service contract Shipment & Documents Importers/Wholesalers (Guys in the market) Business Negotiation Concentrate in Sales and Marketing Exporters

  4. Topics Today • Market overview • What’s happening in China • Possible legal risk to be considered

  5. MajorImportedFruitDistribution Centers and Ports of EntryforFreshFruits in China Shenyang Tianjing Dalian Beijing Qingdao Shanghai Shanghai Ningbo Guangzhou Shenzhen, HK Markets Pingxiang Mohan Pi Ports

  6. Disposable income in 2014 (in USD)

  7. Shanghai Huizhan Market • Imported fresh fruit distribution center in East China • Appointed fresh fruit Quarantine & Customs inspection site by AQSIQ • 27 km from Shanghai city center • 85 km from Port (Yangshan Terminal) • Yangshan Terminal • Biggest container port in the world • Shanghai’s ambition to be the shipping hub in Asia Waigaoqiao Port Hui Zhan Market Yangshan Port

  8. Fruit consumptions in China Major origins: Chile, Peru, U.S. South Africa, New Zealand, Australia… Major items: Citrus, grapes, cherries, kiwi, apple, and etc… China imports over 2 million tons of tropical fruit from South East Asia countries, almost 80% of total fruit import Dragon fruit from Vietnam Longan from Thailand Banana from Philippines Top 3 items takes 50% of total import Cheap & Fresh Improved quality & packing More new varieties Extended availability China is the leading producer in the world for : APPLE, PEAR, CITRUS, KIWIFRUIT, TABLE GRAPES…

  9. “We work very hard, and we don’t make money!”

  10. Too much fruits, poor quality…… 79,000 Tons +70% Data Source

  11. Why sending so many cherries to China? + =

  12. The “shared mistakes chain” Over inflated import industry Wrong demand signals sent to Chile Over supply without accurate quality control

  13. Why the Chinese market doesn’t grow as expected? What’s happening in China? We are adjusting the Chinese economy under the New Normal and also We are having a anti-corruption campaign which can not lose…

  14. MOUTAI, the best liquor in China 2012: US$400/bottle Now: US$150/bottle

  15. Big order from big state owned companies, Wholesaler is packing 50,000 gift boxes before moon festival in 2013,now you hardly see this……

  16. Consuming trend: Less gift giving Less big corporate orders Less grey income Rational consumption Price-performance More Stable demand

  17. Possible legal risk to be considered…

  18. A Chinese Story: To kill a chicken to scare the monkeys.

  19. How the popular game Consignment is played EXPORTER WHOLESALER WHOLESALER WHOLESALER COMPETITIONS

  20. The contradictory of Cargo Value by Consignment Invoiced MG price: CIF USD20/Carton Taxed price: CIF USD30/Carton Final return: CIF USD40/Carton Un-taxed Cargo Value: USD10

  21. Tax evasion penalites • New Zealand Kiwi case: • Evaded Tax Amount: RMB 37,690,000(USD6,000,000) • Principal criminal 13 years in jail, accessary 5 years • Supplementary payment equivalents of evaded tax and extra penalty.

  22. Thank You! Kurt Huang khuang@fruitease.com www.fruitease.com

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