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Frequent Penalties for Health Food Sold on Cross-Border E-Commerce Platforms in China: How Can Global Businesses Ensure Compliance?
Publication date:2024-12-13

 

As the management of health food access in China continues to evolve and the the country's wellness market rapidly expands, new changes may emerge in the future. Enterprises should stay vigilant and adjust their strategies promptly.

 

Cross-Border E-Commerce(CBEC): The Preferred Choice for Exporting Overseas Health Foods to China

 

Currently, CBEC has become the favored channel for overseas health foods entering the Chinese market. This approach offers two key advantages: a) Bypassing Complex Certification: It avoids the high barriers and lengthy wait times associated with directly applying for China's “Blue Hat” health food certification. b) Operational Benefits: CBEC reduces tax burdens and operational costs, allowing brands to quickly test market responses and gain insights into Chinese consumer preferences. This flexible and efficient model makes it an attractive option for global health food brands exploring opportunities in China.

  

Is CBEC Truly Risk-Free?

 

Despite its advantages, CBEC for health food imports in China is not without risks. Violations on major e-commerce platforms, including WeChat applet, often result in significant fines and can harm a company's operations and brand reputation.

 

  • Violation Case 1: Misleading Claims for Royal Jelly Supplement
     

Details: A business in Beijing used a WeChat applet to sell a general food product labeled as a health food. The product, royal jelly imported from New Zealand, was advertised with claims such as "treating menopause syndrome," "preventing cancer," and "boosting immunity."
 

Penalty: The company was fined RMB 200,000 for advertising a general food product with disease treatment and health function claims, violating the Advertising Law of the People's Republic of China.

 

  • Violation Case 2: False Advertising in Livestreaming
     

Details: A company in Guangzhou promoted an Australian nutrition product in a livestream, making unsubstantiated claims such as "improves memory by 29%" and "enhances sleep by 58%." The product was later identified as a sports nutrition supplement, and the claims were found to be unsupported by evidence.
 

Penalty: The company was fined RMB 200,000 for misleading consumers, violating the Anti-Unfair Competition Law of the People's Republic of China.

  

  • Violation Case 3: Unauthorized Health Claims for Dietary Supplements 

 

Details: A Beijing-based company promoted two cross-border health products on an e-commerce platform.—"Potassium Acid Capsules" and "Nattokinase Capsules"—using claims related to disease treatment, such as “relieving joint pain” and “dissolving blood clots.” These claims violated advertising regulations.
 

Penalty: The company was fined RMB 400,000 for advertising a general food product with disease treatment and health function claims, violating the Advertising Law of the People's Republic of China.

 

How to Ensure Compliance for Health Food imported via CBEC in China?

 

Recent enforcement cases from various market supervision departments highlight two main compliance issues for health food imported through CBEC in China:

 

1. Advertising Violations

Many CBEC sellers exaggerate product claims by using terms related to disease prevention or treatment, such as "prevents cancer," "lowers blood pressure," "dissolves blood clots," and "improves cardiovascular health." Under Chinese law, food products are prohibited from making disease prevention or treatment claims, and unregistered health foods cannot promote health benefits.

 

2. Product Quality and Safety

Some cross-border health foods have quality issues, such as banned ingredients, excessive heavy metals, or microbial contamination. These issues can harm consumer health, lead to product recalls, or result in sales bans. China Customs also periodically updates import policies and consumer alerts, especially regarding drug ingredients or high-risk substances like "NMN."

Additionally, some sellers use private channels (e.g., WeChat applet, personal social media platforms) to sell counterfeit health foods, often without legitimate sourcing or proof of legal production.

  

Compliance Tips for Overseas Businesses Exporting Health Food through CBEC to China

 

1. Ensure Product Quality and Safety

Health foods imported via CBEC in China must comply with the quality, safety, hygiene, environmental, and labeling standards of the country of origin. Companies should ensure that production and transportation processes meet international standards to avoid legal risks.  

Some e-commerce platforms may verify the qualifications of overseas sellers, especially for products with specific ingredients. Sellers may need to provide documents such as a free sales certificate, manufacturer’s food production license, and proof from the relevant authority in the country of origin allowing consumption.

 

2. Compliant Advertising and Promotion

CBEC is still subject to legal regulations. Health foods imported via CBEC in China cannot make claims related to disease prevention or treatment. Even if a product has health benefits in its home country, it must be marketed as a general food in China, without claiming health benefits. Also, advertising should avoid absolute terms like "best" or "most effective" to comply with Chinese advertising laws.

 

 

Imported Health Foods in China: Trends in "General Trade"-Registration and Notification/Filing

 

The definition of health foods abroad is not entirely the same as in China. Currently, overseas health foods entering the Chinese market through the "General Trade" method are primarily classified into two types: general food and health food.

General Food

Health Food

Common Product Types/Standards

Solid beverages, pressed candy, gel candy, drinks

Health (functional) foods, nutritional supplements

Formula Changes

Adjust according to relevant standards

Formulation adjustments based on health food registration and notification requirements

Product Claims

Nutrition claims in line with relevant standards

 

Health function-related claims

Labeling

Chinese label, can be affixed

Chinese labels must be printed on the smallest sale packaging, cannot be affixed

Compliance Timeline

1-3 months

1-3 years

 

As of December 10, 2024, according to data from the State Administration for Market Regulation (SAMR), imported health foods in China are primarily being notified, especially vitamins and mineral-based nutritional supplements. Since 2020, a total of 156 imported health foods in China have been notified, with 25 products receiving notifying approval in 2024. Notably, since 2017, no imported health foods in China have passed the registration process.

 

Although "cross-border" remains the preferred route for foreign health food brands to enter the Chinese market, changes may emerge in the future due to the continued maturation of the Chinese market and the gradual improvement of regulatory policies. Specifically:

 

1. Stricter Compliance Requirements for CBEC: Future CBEC will face more stringent compliance requirements, especially concerning product registration, notification, advertising, and quality testing. Companies will need to place greater emphasis on product legality and safety to ensure compliance with relevant laws and regulations.

 

2. Potential Favorable Changes in Market Access Policies for Imported Health Foods in China: As health foods develop and regulations are standardized, and more dosage forms are applied, market access policies for imported health foods may become more flexible and beneficial. For example, the government may include more mature ingredients in the list of approved ingredients for notification or introduce more supportive policies to promote the development of the health food industry.

 

ZMUni Compliance Centre believes that with the increasing health awareness of consumers and the rapid growth of the wellness market, offering safe, healthy, and nutritious foods has become an important strategic direction for companies. Enterprises should closely monitor market trends and adjust their market strategies flexibly to meet the evolving market demand and regulatory requirements. If you have any needs regarding exporting health foods to China, feel free to contact us at info@zmuni.com. We can offer you professional service and guidance.

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