Control of the customs value of perfumery and cosmetic goods

Information about the characteristics and cost of individual goods classified in accordance withTNVEDin commodity items 3303, 3304, 3305, 3306, 3307

Summary tables

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• Customs control

Powdered milk in China

In the article we will talk about a product that, for specific reasons, has become one of the most imported in China. This is Powdered milk. Let's start with the fact that China is now one of the leaders in milk production and consumption, but this has not always been the case. In 1999, a nationwide campaign was launched in China, the purpose of which was to teach all children to drink milk daily in order to catch up and overtake their peers from other countries and especially from Japan in height and weight.

The Government of the People's Republic of China supported the domestic dairy market by subsidizing the growth of production of dairy raw materials, which are still scarce in China today.  The annual increase in milk production in China is about 20 percent.  In 2021, China plans to increase consumption of dairy products by 5%, to 34.5 million tons. Such forecasts were made by experts of the US Ministry of Agriculture. However. Although China is the second largest economy in the world by GDP, it has not had high-quality and safe milk for many years.

No one would have thought that China, a huge agricultural country with a traditional agricultural culture, would not be able to afford safe domestic milk. 20 years of economic development has caused an existential crisis and put the Chinese people in a terrible situation.

A little bit about milk production

Traditionally, in addition to low yields, farmers have another problem, the seasonality of milk production, in winter the production of raw milk falls by half or three times. Powdered milk, which is harvested in the summer season, helps to fill the shortage. In case of acute seasonal fluctuations, milk powder is an important stabilizing reserve for processors. It is harvested at their own drying plants in the summer, when the supply of raw milk is excessive, thereby saving farmers from overproduction and a catastrophic drop in prices. It is produced in the same way as all other dairy products, from raw milk.

Powdered milk is used not only for milk recovery, but also in the production of sausages, ice cream and confectionery. There is no way to do without powdered milk in these industries.

Surprisingly, reconstituted milk is more expensive than usual at cost. However, there is nothing to be surprised about, the price of powdered milk is a derivative of the cost of raw milk. First it needs to be dried, and then restored — these are additional costs for electricity, labor, depreciation of equipment (it takes about six hours for one drying cycle), long-term storage, etc. It is necessary to control the quality of milk powder, which, of course, is also done for raw milk.

Powdered milk is convenient because it can be prepared in advance, stored for a long time and easily transported. Everyone, both producers and processors, knows that there will not be enough raw milk in winter and it will be impossible to meet the increased demand for dairy products. And milk is a product of daily consumption, it is included in the grocery basket of every person.

Powdered milk does not differ from raw milk in terms of fat, protein, and lactose content. Minerals completely pass into it from raw milk. The reconstituted milk contains slightly less B vitamins and a significant part of vitamin C is lost, since milk is dried at high temperatures, and vitamin C does not withstand temperature treatment.

Now there is an increase in demand for powdered milk on the Chinese market, it has an annual growth rate of about 22%, this is a factor that encourages China to buy imported powdered milk.

The existing local milk is not very popular in China. One of the reasons for this was the so-called "melamine scandal" of 2008, when it turned out that a number of Chinese food manufacturers added melamine to their products in order to increase the measured protein concentration, as a result of which products, which included widely used dry milk mixtures for infants, became dangerous to health. Although melamine is considered a low-toxic substance, a number of studies have obtained data on malignant diseases and the formation of stones in the urinary system with prolonged consumption of food containing ultra-high concentrations of melamine. It was also reported that the total number of children poisoned by low-quality dairy products was about 300 thousand, of which 53 thousand were in China, six children died and 100 were in critical condition.

At the moment, imported milk powder is considered a luxury item in China and even a status symbol. Many Chinese spend a lot of money to buy imported milk powder as gifts for relatives and friends. The Chinese themselves explain the popularity of imported milk powder by the fact that local milk powder is of poor quality, and the child will have stomach upset after eating it, but there will be no imported milk. Considering also that Chinese families are already allowed to have a second child, it can be concluded that the demand for high-quality milk mixtures will increase. Now foreign milk powder is so popular that it occupies from 70 to 80% of the milk powder market in China. People are willing to overpay, but buy quality imported milk. 

For these and other reasons, including the gradual increase in the number and welfare of the Chinese population, imported milk is a priority for the Chinese. Not so long ago, Russian products began to enter the Chinese market. A combination of factors - growing demand, Chinese consumers' trust in Russian producers, open up great opportunities for Russian exporters of dairy products.

In 2018, China and Russia jointly signed an agreement on the export of dairy products to the Chinese market. According to statistics, in 2019, Russia exported 480 tons of dairy products to China for a total of 919,000 US dollars. However, at that time, in the agreement, powdered milk was not included in the list of dairy exports. Therefore, allowing the export of milk powder to China in the fall of 2020 opens up very great prospects, and this is very good news for producers of high-quality Russian milk powder.

Features of milk powder export to China

Despite the huge needs of the Chinese food industry in dairy productsexportmilk powder to China is complicated by a number of circumstances.

The Chinese authorities have imposed restrictions on imported milk. The Chinese government has tried to switch the need for foreign raw materials to domestic products and support the sales of Chinese companies.

Foreign manufacturers are required to register products, enterprises and warehouses before their products can enter the domestic market of China. The government also obliged manufacturers to supply the goods with labels in Chinese.

How to pass veterinary control for powdered milk

The final list of Russian dairy enterprises that have received permission includes only those who can actually fulfill China's requirements at the moment. Such a strict selection is due to the fact that at the first violation recorded by the Chinese supervisory authorities, the country can close supplies for the entire list of Russian enterprises.

Rosselkhoznadzor reported that the trade of dairy products between Russia and China will include condensed and non-condensed cream, buttermilk, yogurt, kefir, whey, butter, cheese, cottage cheese and casein obtained from cow's milk, goat's milk and sheep.

Dairy cattle used to produce raw milk for exported dairy products must be supplied by farms free of foot-and-mouth disease, cattle plague and small ruminants, sheep pox, goats and other dangerous diseases, farms must be under the control of the competent authority of the PRC or the state veterinary service of Russia.

In order to be able to export dairy products to China, the Russian manufacturer must be included in the list of enterprises allowed to export products. You can find a list of approved enterprises in Cerberus.

The company must also be located in the Chinese information system for registration of foreign enterprises CIFER,

Products can be sent to China only from specially certified warehouses for the export of products, the exporter must have a platform in the Argus system to obtain an export permit. 

In addition to information about the competent authority, the sending company and the goods in the veterinary certificate for milk and dairy products intended for export from the Russian Federation to China, the exporter must confirm the certification of the health of the exported products with a health certificate.

After passing all the necessary procedures and complying with all the requirements described in detail on the Rosselkhoznadzor website, you submit a Veterinary Certificate of Form 2, which accompanies all dairy products in Russia, and instead of it at the checkpoint you receiveveterinary certificate5dandveterinary health certificate These documents are required for the export of milk powder to China. To submit and issue an export customs declaration, you will also need a stamp on the bill of lading issue is allowed.

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• Export of milk powder

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• Contact information

Vladivostok Commercial Sea Port

Vladivostok Commercial Sea Port aboutsnovan in 1897 is located on the northwestern shore of the Golden Horn Bay, the coordinates of the port are 43007' S.S. and 131053' V.D., the time difference is +9 hours from Greenwich.
The depth at the approaches to the port is more than 30 meters.
Vladivostok Commercial Sea Port has 17berths with a total length of 4,014 m . The area of open warehouses on the territory of the VMTP is 205723.2 m2, and the area of covered warehouses is 49763.3 m2 in the operating area and 59791.9 m2 in the rear area. The total length of the railway tracks in the port is more than 17 km.

The port has a service structure that meets international standards, including stevedoring, agency, forwarding, towing, survey, tally and other companies. The fleet entering the port of Vladivostok is provided with a full range of modern services.
JSC "VMTP" provides services for the processing of general, bulk, container cargo.

Vladivostok Container Terminal

 Vladivostok Container" >terminalhe began his work in 1983 at berths No. 16 and No. 17.

In August 2003, LLC “CGT” was founded on the basis of the container terminal.

Today LLC “CGT is a major container operator.

Transshipment volumes at the CGT are increasing annually.

According to the results of 2006container turnoverthe terminal was 147,100TEU, and by the end of 2007 already 199,650 TEU, by the end of 2008 the container turnover exceeded 240,000 TEU.

Vladivostok Container Terminal has all the necessary modern loading and unloading equipment and equipment for high-quality handling of containers and general cargo in the shortest possible time. Modern computer equipment allows for full accounting and control of container cargo turnover.

Geographically, the Vladivostok container terminal is located on the first kilometer of the Trans-Siberian Railway, which makes it possible to connect the cargo flows of the regions of Russia, the CIS and Europe with the cargo flows of Southeast Asia (Korea, China, Vietnam), North America, the ports of Kamchatka, Sakhalin and Chukotka. The total area of the CGT today is 13 hectares.

Services provided

LLC "CGT" provides a full range of stevedoring services from loading and unloading of ships, rail cars and motor vehicles to short-term storage of containers. The safety of goods is ensured by the security service. The territory of the container terminal is monitored by video cameras around the clock.

• Loading/unloading to/from a vessel of 20'/40' loaded, empty, oversized containers.
• Processingcontainers using chains or special equipment in addition to using a standard spreader.
• Receipt/delivery from the terminal of 20'/40' containers loaded, empty, oversized.
• Storage of containers, including refrigerated ones. 

Berths

The length of the mooring line of berth No. 15 is 42 m, berths No. 16, 17 are 361 m. The depth of the mooring line is 11.6 m . Berths allow processing container ships with a draft of up to 11.1 m. Simultaneous mooring at the berths of two vessels is possible. The estimated throughput is 150,000 TEU per year.

Warehouses

The total area of open storage areas is about 37 thousand m2. The sites are divided into 8 zones by specialization.

Warehouse area - zones A, B, C, D (20,16 thousand m2) with a length of about 280 m.

The main purpose of zones A, B is the storage of containers for export, part of the zones  B is customs.

The purpose of zones B, D - import with shipment to vehicles, part of zone B is specialized for refrigerated containers with a capacity of 120 units..

The purpose of the storage zones T1 and T2 with an area of 10.92 thousand m2 is the processing of imports and empty containers, customs inspection services are also carried out in the T1 zone. Containers are also shipped to vehicles here.

In zones E, W of a warehouse with an area of 5,9 thousand m2 adjacent to the railway freight front, containers are placed for shipment to the railway and local transport vehicles, in the zone W is producedcustoms inspectionimport containers.

Road transport

In the development of the cargo flow of the terminal, the share of motor transport is 80%.

The entrance/ exit of vehicles to the terminal territory is carried out from the side of the port equipped with a checkpoint and container scales and the second entrance, in the rear of the access railway to the terminal, is also equipped with a second checkpoint and container scales. This makes it possible to organize circular traffic through the terminal with entry from the second checkpoint and exit through the first checkpoint.

Railway transport

The share of rail transport is 20%.

The railway freight front of the terminal consists of two freight railway tracks with a length of about 180 m each (serviced by two RMG), and one freight track of a complete set warehouse designed for handling covered railway wagons. One of the railway tracks is equipped with an entrance overpass for loading railway platforms by passenger cars on their own.

 Website addresshttp://www.vmtp.ru/

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