CHAIN OF CUSTODY POLICY March 2014 Date of latest approved version: May 2012 Sustainable Agriculture Network and Rainforest Alliance, 2012-2014. Sustainable Agriculture Network (SAN): Conservación y Desarrollo, Ecuador Fundación Interamericana de Investigación Tropical, Guatemala Fundación Natura, Colombia ICADE, Honduras IMAFLORA, Brazil Nature Conservation Foundation, India Pronatura Sur, Mexico Rainforest Alliance SalvaNatura, El Salvador
This document is available at the following websites: www.sanstandards.org www.rainforest-alliance.org To request a hard copy or make comments on or suggestions concerning the content of this document, write to us at: standards@sanstandards.org Sustainable Agriculture Network Secretariat Rainforest Alliance P. O. Box 11029 1000 San José Costa Rica SAN-P-3-2 March 2014 2
CONTENTS Objectives... 5 Scope... 5 Implementation Dates of the... 6... 7 1. General Conditions... 7 2. Types of Participating Operators... 8 3. Certificate Issuance and Maintenance... 9 4. Certificate Cancellation......10 5. Expansion of Multi-Site Certificates... 11 SAN-P-3-2 March 2014 3
The Sustainable Agriculture Network The Sustainable Agriculture Network (SAN) is a coalition of independent nonprofit conservation organizations that promote the social and environmental sustainability of agricultural activities. Standard and policy development and review are coordinated by the SAN Secretariat. Accredited Certification Bodies certify farms, group administrators, cattle production systems and Participating Operators (POs) that conform to SAN s standards and policies. The Rainforest Alliance The Rainforest Alliance is an international nonprofit organization working to conserve biodiversity and ensure sustainable livelihoods. Farms, group administrators and POs that meet the SAN s comprehensive standards for sustainability are eligible for a license to use the Rainforest Alliance Certified seal for products grown on certified farms. Summary of the Chain of Custody (CoC) Process Interested companies should contact the Rainforest Alliance (sanracoc@ra.org), or an accredited Certification Body to receive application information and obtain relevant documents. The SAN/RA CoC Standard and a list of accredited Certification Bodies are available online at http://www.rainforest-alliance.org/agriculture/certification/coc and http://www.sanstandards.org. Once a company has registered on the Rainforest Alliance Marketplace (www.rainforestalliance.org/farmproducts) and submitted the CoC application, the Certification Body selected by the company to perform the audit will supply certification information to the company, including but not limited to: an initial quote for services, an agreement for services, and an audit date and plan. Once all services are agreed upon and payment for the audit is made, the company becomes a PO and the audit team will prepare for and execute the audit. Once a draft audit report has been produced, the Certification Body will finalize the report, including a decision as to whether or not to issue a CoC certificate. Certification is therefore effective as of the date that the Certification Body issues the CoC certificate. SAN-P-3-2 March 2014 4
Objectives This SAN-P-3-2 defines the requirements to be met and maintained in order to qualify as a CoC certified Participating Operator. The objectives of this policy are to: 1. Explain the scope of the CoC system for POs (Single or Multi-site); 2. Describe the traceability systems permitted by the Rainforest Alliance; 3. Establish the implementation date for the CoC system; 4. Explain the CoC audit cycle; 5. Determine the type and frequency of CoC audits; 6. Describe the conditions and consequences of CoC certificate cancellation. Scope CoC Certification applies to entities that own or plan to own product originating from Rainforest Alliance Certified farms and: a. make a promotional, on-package or sales claim regarding the certified status of these products; or b. Process, package and/or sell products with Rainforest Alliance Certified claims in their own or contracted facilities. In the case of producers, CoC Certification applies to Group Administrators that handle products originating from both certified and non-certified farms in their own or contracted facilities. Group administrators that only handle certified product and all individual farms are not required to obtain a separate CoC certification. The CoC systems for these producers shall be evaluated in accordance with the Sustainable Agriculture Standard or SAN Group Certification Standard. [Note: See clauses 1.4.b and 1.5 of the CoC Standard; and clause 1.e.i. of this policy for requirements governing contractors.] The following entities are exempted from CoC Certification: a. Retailers and other entities purchasing finished, labeled products packaged for sale to end consumers; and b. Operators that qualify for a small volume exemption, as follows. Small Volume Exemption: Entities that comply with all of the following criteria may be granted exemption from CoC Certification: a. Purchased less than 50 MT of green coffee beans, cocoa beans or made tea with Rainforest Alliance Certified claims within the last 12-month period. Other crops may be considered on a case-by-case basis and applications shall be submitted to sanracoc@ra.org for consideration. SAN-P-3-2 March 2014 5
b. Fall into one of the following categories: i. Operators who process or package a final product ready for distribution to consumers; or ii. Operators who take ownership but do not process or package the product in their own or rented facilities. c. Demonstrate conformance with all traceability and trademark requirements. d. Submit the application for the small volume exemption to sanracoc@ra.org for consideration, and receive written notice from the SAN/Rainforest Alliance that the exemption has been granted. Implementation Dates of the This SAN-P-3-2 becomes effective upon approval and shall be used for all evaluations beginning May 21, 2014. POs certified under previous versions of this policy will remain certified and shall be evaluated according to this version of the policy during their next audit. The SAN/Rainforest Alliance CoC system requires that all entities covered by its scope register in Marketplace and achieve CoC certification in order to have the right to use the Rainforest Alliance Certified Seal or make claims that products originate from Rainforest Alliance Certified farms. Non-certified entities registered in Marketplace before March 21, 2014 that fall within the scope of this policy must: o Be CoC audited by September 21, 2014 and CoC certified by March 21, 2015; or o Be exempted by September 21, 2014. Non-certified entities registered in Marketplace on or after March 21, 2014 that fall within the scope of this policy must: o Be CoC audited within 6 months of the registration date and CoC certified within 12 months of the registration date; or o Be exempted within 6 months of the registration date. POs may request Transaction Certificates for traceability and use of seal approvals while they undergo the CoC certification audit. If a PO fails to conform to the established dates, its right to use the seal will be denied, Marketplace registration will be deactivated, transaction certificates will not be issued, and the PO will no longer be able to claim that its products are Rainforest Alliance Certified. SAN-P-3-2 March 2014 6
1. General Conditions a. The PO shall be registered in Marketplace and engage an accredited Certification Body for CoC certification. b. The PO shall implement one of the following traceability models permitted by the SAN and Rainforest Alliance: i. Segregation, physically or in time allowed for all products; or ii. Controlled blending allowed only for specific products (please refer to the Rainforest Alliance Certified Sustainable Agriculture Use of Seal Guidelines). c. The PO shall conform to the CoC Standard and Policy (and any annexes thereto or guidance provided), and the Rainforest Alliance Certified Sustainable Agriculture Use of Seal Guidelines. d. The PO shall undergo any required audit, which may include the following types of audits: i. Certification Audit: Occurs at start of each certification cycle and evaluates conformance with all applicable criteria of the CoC Standard. ii. iii. iv. Annual Audit: Annual audits evaluate corrective actions of all minor nonconformities identified during the last audit and evaluate the following criteria of the Traceability Principle: 2.3, 2.4, 2.6 and 2.7. Annual Audits shall be conducted between nine (9) and fifteen (15) months after the previous audit. Verification Audit: A verification audit shall be conducted to evaluate conformance with at least one (1) major nonconformity or more than 50% of the total applicable criteria resulting in minor nonconformities that were detected in a certification, annual, research or non-programmed audit. It shall be conducted no later than four (4) months after the PO receives the draft report in which the non-conformities were presented. Research and Non-programmed Audits: Research audits and non-programmed audits can be conducted at any time during the certification cycle. e. Audits may be conducted either on-site or remotely according to the following requirements: i. On-site audit: Required for certification audits of first-time applicants and POs that are re-applying after receiving a cancellation notice, unless the PO meets the requirements in f.ii below. Also required for all other audit types when evaluation of conformance requires visual observation. In cases where the PO contracts processing and/or packaging of certified material, an on-site audit shall occur at the contracted facility. If multiple contracted sites engage in processing and/or packaging of certified material, sampling shall be conducted according to the multi- SAN-P-3-2 March 2014 7
site sampling rules, as defined in SAN Accreditation Requirements for Certification Bodies, CoC Annex. ii. Desk Audit: POs that are not issued any non-conformities requiring on-site verification will be allowed to undergo desk audits for years 2 and 3 of the certification cycle (i.e. annual audits). The following POs will also be allowed to undergo desk audits for the duration of the certification cycle, including all certification audits: 1. POs that own, but do not process or package certified material in their own or contracted facilities; and 2. POs within the CoC scope that purchased less than 100 MT of green coffee beans, cocoa beans or made tea originating from Rainforest Alliance Certified farms within the last 12-month period. f. Upon being awarded a CoC Certificate, a PO may claim to be CoC certified and to offer products from Rainforest Alliance Certified farms. g. All cases that are not covered by this policy will be analyzed and decided upon by the respective accredited Certification Body, which may consult the Rainforest Alliance and the SAN for guidance. 2. Types of Participating Operators POs can be divided in two main categories for the purposes of CoC certification: a. Single Participating Operator: This is an entity that administers only one site. The CoC certificate issued for a single PO is for one entity, for example: a single raw material exporter; a cocoa processor that has only one processing facility and produces cocoa butter, liquor and powder. b. Multi-site Participating Operator: This is an entity that administers two or more sites. There are two different types of multi-site POs: i. POs whose sites are located within a single country or one of the three approved geographic regions listed below. The sites do not necessarily have to be under a common ownership structure. The Multi-site Administrator uses a central office or shared administration with one evaluation and reporting system to certify all of the participating sites. The three approved geographic regions are: 1. Europe; 2. United States and Canada; and 3. Countries in the Asia Pacific in which no SAN Farm Certificate has been issued in connection with the relevant crop. ii. POs whose sites are located in multiple countries or multiple geographic regions. Global Multi-site certificates may be granted when all of the following criteria are met: SAN-P-3-2 March 2014 8
1. All sites are under common ownership structure; and 2. All sites operate under the same integrated management system that has authority and responsibilities beyond those related solely to certification. 3. Certificate Issuance and Maintenance a. The CoC certification is valid for three (3) years and begins from the date that the CoC certificate is issued by an accredited Certification Body. b. Maintenance of the CoC Certification is subject to annual audits and the renewal of the certificate (i.e. subsequent certification audits). c. In order to obtain CoC certification, a PO must: i. Undergo a certification audit conducted by an accredited Certification Body in accordance with SAN Accreditation Requirements for Certification Bodies, CoC Annex; ii. Conform to the requirements of the CoC Standard and Policy; iii. Agree to the conditions of and sign a Certification Agreement with the accredited Certification Body; and iv. Conform to all administrative processes defined by the Certification Body, SAN, and the Rainforest Alliance. d. In order to maintain the status of CoC Certification, the Participating Operator must: i. Undergo each annual audit during the three (3) year certification cycle; ii. Undergo any other audit justified by the Certification Body, Accreditation Body, the SAN or the Rainforest Alliance; and iii. Comply with the Certification Agreement. 4. Conformance Evaluation a. Audit findings are classified as conformities or nonconformities, according to requirements in the SAN Accreditation Requirements for Certification Bodies, CoC Annex. b. A major nonconformity (MNC) is issued when there is (i) evidence of material risk to certified product integrity due to mixing with uncertified product, over-selling of certified volumes, significant system gaps, or seal use violation, or (ii) a nonconformance with Section 1.3 of the CoC standard that poses a substantial risk to the SAN/Rainforest Alliance CoC system or reflects badly on the name of the SAN and/or Rainforest Alliance, in the sole opinion of the SAN or Rainforest Alliance, as the case may be. i. If one or more MNCs are issued as a result of a certification audit, CoC certification will not be approved. Within (4) months of the date of the draft report in which the MNC(s) were presented, the PO shall undergo a verification audit. If the PO has demonstrated corrective actions sufficient to close the MNCs a certificate will be issued. Otherwise, CoC certification will not be approved. SAN-P-3-2 March 2014 9
ii. If one or more MNCs are issued as a result of an annual audit, within (4) months of the date of the draft report in which the MNC(s) were presented, the PO shall undergo a verification audit.. If the PO has demonstrated corrective actions sufficient to close the MNCs, the certificate will be maintained. Otherwise, the certificate will be cancelled. c. A minor nonconformity (mnc) is issued when there is (i) evidence of nonconformance that does not pose a material risk to certified product integrity due to mixing with uncertified product, over-selling of certified volumes, significant system gaps, or seal use violation, or (ii) a nonconformance with Section 1.3 of the CoC standard that does not pose a substantial risk to the SAN/Rainforest Alliance CoC system or reflect badly on the name of the SAN and/or Rainforest Alliance, in the sole opinion of the SAN or Rainforest Alliance, as the case may be. i. If more than 50% of the total applicable criteria result in mnc(s) during a certification audit, CoC certification will not be approved. Within (4) months of the date of the draft report in which the mnc(s) were presented, the PO shall undergo a verification audit. If the PO has demonstrated corrective actions sufficient to reduce the number of mnc(s) to 50% or less of the applicable criteria, the certificate will be issued. Otherwise, certification will not be approved. ii. If any mnc(s) remain following the certification audit, the PO should demonstrate corrective actions sufficient to resolve each mnc at the next annual audit. The PO shall demonstrate corrective actions sufficient to resolve each mnc as well as any new mnc(s) identified during annual audits at the next certification audit. At any audit, a Certification Body may, but is not required to, upgrade an mnc from a previous audit to a MNC if the PO has not demonstrated corrective actions sufficient to resolve such mnc. Notwithstanding the foregoing at a certification audit, a Certification Body shall upgrade any open mnc(s) to a MNC(s) if the PO has not demonstrated corrective actions sufficient to resolve such open mnc(s) issued during the previous certification cycle.. d. An observation is a comment intended to assist the PO in improving its CoC system but has no consequence for the PO s certification status. e. Nonconformities (mnc and MNC) may be closed by the auditor prior to report finalization if evidence to correct the nonconformity is evaluated within two weeks of the closing meeting. 5. Certificate Cancellation a. A PO s certificate may be cancelled if the PO fails to comply with any aspect of the SAN/Rainforest Alliance CoC System. A certificate shall be deemed cancelled as of the date of the notification from the accredited Certification Body (the Cancellation Date ). The PO may also request voluntary cancellation, in which case a certification is deemed cancelled as of the date of the PO s written request. b. As of the Cancellation Date, no further sale or transfer of ownership of certified product may be claimed or recognized as Rainforest Alliance Certified. Notwithstanding the SAN-P-3-2 March 2014 10
foregoing, for a period beginning on the Cancellation Date and ending on the date that is six months from the Cancellation Date (the Sell-Off Period ), a PO may sell any finished product in stock under the following conditions: i. The finished product is already packaged with Rainforest Alliance labeling and will not undergo any further processing or packaging before its sale to the end consumer; ii. iii. The PO provides evidence to the Certification Body that the labeled product was processed and packaged in accordance with all SAN/Rainforest Alliance CoC System requirements; and The Certification Body approves such evidence and the proposed Sell-Off Period in writing. c. As of the Cancellation Date, and including during the Sell-Off Period, a PO may not create or cause to be created any new products, packaging, or off-product promotional materials marked as Rainforest Alliance Certified. d. Following cancellation, the PO shall be deactivated in all applicable SAN/Rainforest Alliance systems. e. In order to be reactivated, a PO must first undergo a new certification audit and receive a new CoC certificate. No product may be sold with Rainforest Alliance Certified claims before a new CoC certificate is issued. 6. Multi-site Certificate Sampling and Expansion a. Multi-site Sampling: Audits for Multi-site POs will be conducted according to the following criteria: i. Multi-site System Administrator of a Multi-site PO will receive at least one (1) onsite audit during each certification cycle. ii. A sample of sites will be audited during each certification cycle until all sites included in the CoC scope have been visited. iii. The sample of sites will be determined by using the square root of the total number of sites. iv. The sample size shall be rounded up to the next whole number; for example, 3.122 indicates that 4 sites must be audited. v. The sites of the Multi-site PO that will be visited by the auditor must be selected in such a way that they are representative of the complete list of all participating sites, processes and products, by means of risk-based samples and random selection. The applied sampling method shall be stratified. vi. The strata may be selected pursuant to the following: SAN-P-3-2 March 2014 11
b. Multi-site Expansion: a) Geographic distribution; b) Activities and/or products produced; c) Size of participating sites; or d) Areas of improvement of the management system identified by internal reports or certification body audits. i. During a certification cycle, a Multi-site PO may add up to but not more than an additional 25% of the total sites included in the certificate scope at the start of the cycle, without a new certification audit. ii. Prior to being added to the CoC Certificate these new sites shall be inspected internally and found to be in conformance with the CoC Standard and Policy. iii. If the PO adds more than an additional 25% of the total sites, then it shall undergo an additional audit evaluating all applicable CoC Standard Requirements and applying multi-site sampling rates to all additional sites. SAN-P-3-2 March 2014 12