Tequila exports to China

Mexico's tequila industry has managed to break into the Chinese market, despite facing several barriers. Although tequila exports to China still do not reach the figures of markets such as the United States or Europe, sustained growth in recent years shows its potential. In 2014, a change in Chinese sanitary regulations allowed the entry of 100% agave tequila, a significant advance achieved thanks to joint efforts of economic actors, both public and private.

Since then, there has been a notable increase in tequila exports to China. The Tequila Regulatory Council (CRT), which established an office in Shanghai in 2009, reports steady growth, suggesting great potential for tequila to gain preference among Chinese consumers. This expansion is not only a commercial achievement, but a cultural bridge that connects Mexico with the Eastern world, exporting part of its soul and traditions through each bottle of tequila.

The industry faces the challenge of adapting to Chinese preferences and regulations while maintaining the authenticity and quality of tequila. Tequila companies must balance the preservation of traditions with innovation to resonate with Chinese palates and educate about the richness of tequila. The future of tequila in China is promising, with every advance in trade negotiations and regulatory adjustments opening up new opportunities. The Mexican tequila industry, with its strategic vision and adaptability, is poised to capitalize on these changes and continue its success in the Chinese market.

Basics for exporting Tequila to China

Regarding tariffs, the Chinese Ministry of Finance is the entity in charge of setting import and export tariffs, with the support of the Customs Tariff Commission. Since both Mexico and China are members of the World Trade Organization (WTO), Mexican exports to the Chinese market are subject to the most favored nation (MFN) tariff. However, it is important for Mexican exporters to be aware that the Customs Tariff Commission may impose provisional import tariffs, which are set annually in lieu of the MFN tariff. Updated data is available at: https://gss.mof.gov.cn/gzdt/zhengcefabu/202212/t20221229_3861039.htm.

Trademark registration. China is a "first to file" country, so it is strongly recommended to protect your trademark by registering it with the China National Intellectual Property Administration (CNIPA).

Manufacturer registration. On January 1, 2022, Decree 248 came into force, which regulates the registration of foreign manufacturers of agri-food products intended for export to China. This regulation requires registration through the CIFER (China Import Food Enterprise Registration) computer platform at https://cifer.singlewindow.cn. In the case of tequila, producing establishments, such as wineries and bottling plants, must register on the CIFER platform. However, this registration is not required for companies that only engage in commercialization. It is important to remember that, according to Decree 248, the manufacturer's registration number (or the registration number granted by the competent authority) must be indicated on both the sales container and the external packaging.

Export registration: Mandatory requirement for all exporters of food and beverages to China.

It is a simple procedure through the following link http://ire.customs.gov.cn

Characteristics of tequila for export to China

In relation to the characteristics of the product, specifically tequila destined for China, the National Food Safety Standard for Distilled Spirits and their Preparations (GB 2757-2012) states the following:

• Alcohol distillation: an alcoholic beverage made from main raw materials such as cereals, potatoes, fruits, dairy products, among others, through fermentation, distillation and blending processes. In this case, maguey enters as the main raw material.
• Raw material used: Must comply with relevant standards and regulations.
• Sensory perception: Must comply with the relevant provisions established in the standards of the corresponding product.
• Physical and chemical indicators: Methanol concentration must be equal to or less than 2 g/L, measured in 100% alcohol (according to test method GB/T 5009.48). Cyanide concentration (as HCN) should be equal to or less than 8 mg/L, measured in 100% alcohol (according to test method GB/T 5009.48).
• Contaminant limits: Must conform to the provisions of GB 2762.
• Mycotoxin limits: Must comply with GB 2761.
• Use of food additives: If used, must comply with GB 2760.

Labeling of Tequila for export to China

Violations related to labeling are one of the main reasons for non-compliance identified by import inspection services. Chinese labeling is allowed to be affixed by means of a sticker that includes all required information on the bottle. For labeling, the following aspects should be considered:

1) The information shown on the label must comply with the National Food Safety Standard, specifically the General Standard for the Labeling of Prepackaged Foods (GB 7718-2011) and as stated in GB 2757-2012. This data must include the following:

- Net content (ml)

- Alcohol content (%) (V/V)

- Ingredients

- Date of bottling (year/month/day)

- Name and address of distributor, importer or agent.

- Country of origin

- Storage period.

- Sugar content (grams/liter).

2) In the case of the storage period (shelf life), its inclusion is optional, since section 4.3.1 of GB 7718-2011 establishes that alcoholic beverages with a concentration equal to or greater than 10%, as is the case of tequila, are exempt from this information on the label. For more specific details, GB 7718-2011 should be consulted.

3) The labels of distilled spirits and their prepared spirits must comply with the provisions of GB 7718, except for the labeling of alcohol content, warning words and expiration date.

4) Alcohol must be labeled in "%vol".

5) It should be labeled "Heavy drinking is harmful to health" (过量饮酒有害健康，孕妇不宜饮酒。) and may be accompanied by other warnings.

Documentation for import clearance

For a successful export to China, it is essential to have a good importer or distributor of the goods who is well acquainted with the product's customs procedures, as these may vary by point of entry due to internal guidelines.

• Commercial Invoice (issued by the exporter)
• Packing list (issued by the exporter)
• Certificates of Authenticity for Tequila Exports (issued by the CRT)
• Tequila analysis (CRT laboratory).
• Certificate of Fumigation of pallets and cases (issued by pallet supplier)
• Set of labels and back labels of Tequila (scanned)
• Sanitary Certificate if necessary (issued by Sanitation)
• Insurance (if applicable).