RECENT IMPROVEMENT

FLO-CERT continues to improve its certification system in order to provide an efficient, effective, and customer friendly service to all existing and potential customers. We have worked closely with Fairtrade International to ensure a smooth implementation of the NSF (New Standards Framework). The following new processes (called SCORE) are being implemented:

Certification of Development Criteria in the SPO Standard

The NSF now specifies standard criteria as either Core or Development. Core criteria will be audited as usual and each criteria will be confirmed at the audit as either Compliant or Not Compliant.

For the Development Criteria auditors will give a score for each Development Criterion on the scale from 1 to 5 (Each point will have a clear definition or performance rank indicating which score the auditor should indicate.). FLO-CERT will then calculate an average level of compliance with Development criteria so that the focus is on overall development rather than on compliance with each individual criteria.

If the average level of compliance for the Development Criteria equals or is higher than 3.0 the producer will be considered as compliant with the Development Criteria.

If the average level of compliance for the Development requirements is less than 3.0 the producer will select Development Criteria to perform corrective measures and bring the average compliance level at least to the required minimum level of 3. Producers will thus be able to prioritize certain areas rather than prove compliance with each single Development Criterion.

All Development Criteria are assigned a timeline in the standard (either Year 3 or Year 6). If a Criterion is Year 3, then during the first renewal audit these criteria will be included in the audit checklist, and will thus make up the criteria from which the average is calculated.

Focused Surveillance Audit Checklists

In the past FLO-CERT did not distinguish between Surveillance and Renewal Audits. In essence we checked everything, every time! In order to ensure a more focused approach at audits and to continue our goal of Strengthening the Core (SCORE) we will be reducing the checklists we apply to our customers during Surveillance audits. This means that it is likely that the checklist we use at the next Surveillance audit of your company/organization and the time required for Surveillance audits will be reduced, while at the same time the Surveillance audit will focus on areas of high risk.

During Renewal audits all required criteria will be checked by the auditor, and all customers must be fully compliant before they will be issued with a new certificate.

Risk-based Auditing – Rewarding High Performing Companies/Organizations

FLO-CERT acknowledges that some of our customers do an excellent job in complying with the Fairtrade standards; therefore we feel it is right to reward them by taking their high performance into consideration when scheduling audits. Starting soon companies/organizations will be able to ‘skip’ one Surveillance audit during a certification cycle (normally 2 per 3 year cycle) if they fulfill the following criteria:

Producers:

• received no major non-conformities during their last full physical audit
• received no more than 5 regular non-conformities during their last full physical audit
• received less than $40,000 premium in the previous year (2010)
• have not had an exception granted/valid since the last full physical audit

Traders:

• received no major non-conformities during their last full physical audit
• received no more than 3 regular non-conformities during their last full physical audit
• paid less than $40,000 premium in the previous year (2010)
• are not in a ‘large volume category’ according to the TC Fee List
• had transactions at their last full physical audit
• have not had an exception granted/valid since the last full physical audit

Permission to Trade for Producers

For a number of years FLO-CERT has granted Permissions to Trade for new traders entering into Fairtrade. A Permission to Trade allows a customer to begin trading in Fairtrade products prior to receiving an audit by FLO-CERT, thereby allowing quick access to the system and to the benefits of trading Fairtrade.

FLO-CERT has now taken a decision to extend this procedure to new producer applicants.

FLO-CERT will now conduct initial audits for all producer applicants that successfully complete the application process. At the initial audit FLO-CERT will check all criteria applicable for a new producer applicant, and as always, particular focus will be paid to Major compliance criteria. Should as a result of the initial audit, no Major non-conformities be identified, then the producer organization will be given a Permission to Trade. This permission to trade will be valid from the date of issue, and will then be succeeded with a Certificate once the producer completes all outstanding corrective measures related to minor non-conformities identified at the audit. Should a Major criteria be found to be non-compliant at the initial audit, the producer organization will not be issued a Permission to Trade and will only receive a Certificate once all non-conformities are remedied.

Unannounced Audits

In order to strengthen the robustness of our certification system FLO-CERT will be conducting a number of unannounced audits with immediate effect. These audits will be short/focused audits in order to cause minimal disruption to our customers operations, however these audits will occur at all levels of the supply chain (producers, exporters, importers, manufacturers) and non-conformities identified could lead to suspension or decertification. FLO-CERT will conduct unannounced audits equivalent to 10% of the surveillance audits not conducted due to the new Risk-based Auditing approach as mentioned above.

New Application Process

FLO-CERT simplified its application process. The new process is easier and quicker for both customers and FLO-CERT. These are the main changes:

• Previously FLO-CERT requested 2 application forms, the first served as comprehensive Scope Check, while the other requested detailed application information. FLO-CERT has now merged these documents, so that only one form is now required to apply for Certification.
• The number of documents requested at the point of application has been reduced in order to simplify the application process for customers.