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Organic Standards & Certification

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Certification & options in Asia

Organic CertificationProcess and general requirements

Application (document submission & fees)

Compliance audit / Inspection

Certification, Conditions / Corrective actions

Annual renewal

Standards & Applicable requirements

Organisation & Production set up

Process and Production method

Documentation & Quality control system

Social and Environmental policy

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Organisation & Production set up single or group (group certification)incompatible activity (GMO products)location (contamination, land rights issue)

Process and Production MethodOperators (and related sub-contractors) are subject to a performance compliance audit with respect to applicable standards.

Farm/Plantation production- seeds; fertility management (rotation; inputs); pest & disease;water; contaminationStorage, Transport and Handling Processing method (ingredients, additives & aids) and Packaging

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Standards & Applicable requirementsDocumentation and record keepingOrganisationLegal entity; contact address; contact personDescription & extend of business operationsSize and type of organization; nature and extend of business; structure & management. Include an organisation flow chart

Nature of production and processingNumber of units involvedSize/area of operationOperating volume and turnoverSupply & marketing channels

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Standards & Applicable requirementsDocumentation and record keepingFarm Production UnitGeneral description of unit(s) Including location and site map with field identification & size (simple drawing is OK)

Ownership of farmTotal size; number of fields & field sizes (organic & conventional)Land topography & Soil condition Water sourcesProduction historyHistorical and potential external contamination.

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Standards & Applicable requirementsDocumentation and record keepingFarm ProductionGeneral description of production (organic & conventional)

Type of crop/animalSoil & Fertility management practicesCrop cultivation practicesPest & disease managementPost harvest handling, etc.

Inputs usedList type, amount used and application (organic & conventional)

ManagementContractsProduction manual/guide or policyRecords keeping (separate records for organic & conventional)

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Standards & Applicable requirementsDocumentation and record keepingProcessing UnitGeneral description of unit(s) Include facility map(s) with rooms/section & machinery identification (simple drawing is OK)

Ownership of unitSize; number of sub units & functions Production historyHistorical and potential contamination.

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Standards & Applicable requirementsDocumentation and record keepingProcessing UnitGeneral description of Processing (organic) Include a processing flow chart

Type of processing (describe methods) and outputs (products)Raw material supply (indicate sources) and handlingProcessing aids and additivesCleaning practices (cleaning agents used)Storage & packingPest & disease management

Inputs used (additives and processing aids)List type, amount used and purposeManagement

ContractsProcessing manual/guide or policyRecords keeping (separate records for organic & conventional)

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Documentation and record keepingSales and Stock/Inventory management

General description of sales & stock/inventory managementResponsible personAbility to identify and generate separate reports (sales and purchases of organic/conventional products)

OthersUse of certification markInstructions and condition for the use of the mark in labelling.Other contractual obligationsE.g. payment, notification of changes or non-compliance.

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Compliance audit / Inspectiongenerally carried out through the following manner:- documentation review and audit,- site inspections (announced and unannounced),- sample testing (case by case, on a needs basis), and- interviews (management, workers, suppliers)

Extendall related aspects of the operation, including contracted or sub-contracted operators supplying material or performing functions, related to the composition of the end product (actual audit of sub-contractors is dependent on the nature of their involvement, the risk of contamination or non-compliance.

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Certification, conditions / corrective actions§ certification without conditions

§ certification with conditions

§ certification denied

RenewalAnnual submission

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What Certification?

Market AccessNational Regulations-Domestic & Export

Private label requirements-Domestic & Export

Type of Operator

Type of Product

Market Target

Market Regulation

Market (buyer)Preference

Local Development

Service & Cost

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Government Regulations

Local Producer Consumers

Consumers

Consumers

Consumers

Chain of custody (operators)

Local Producer(ingredient)

Foreign Producer(ingredient)

Local Processor

Foreign Processor

Retailer

Local / Foreign CERTIFIER



Certification & options in Asia The Game Scenario

Processor /Retail

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Certification & Options in Asia

1. Operator_ProducerChoice of which CB(s) to use for certificationmust comply to domestic regulations (where applicable); must comply to export market regulations (where applicable) must consider domestic/export market preference must comply to own CB & buyer's CB's requirements

2. Operator_Processor (buyer/exporter)Choice of which CB(s) to use for certificationmust comply to domestic regulations (where applicable); must comply to export market regulations (where applicable) must consider domestic/export market preference must comply to chosen CB’s (& buyer's CB) requirements *EU importer (can apply for importer's derogation)

3. Market (Trade / Consumers)Choice of product characteristic and certification profile

The Play

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4. Regulations & competent authoritiesAuthorisation (approval / acceptance)Import rules (country to country recognition/agreement)

5. AccreditorsAccreditation- acceptance of certification (products & operators)

6. Certifiers (local / foreign)Regulatory recognition/acceptance/approvalMarket profilePrivate level recognition (acceptance of certification)Inspection agent; carry out inspections for other certification bodies to regulations as well as private standards

(where applicable).

The Game keepers

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56 countries have implemented, finalised or initiated thedrafting of organic regulations. (Feb. 2002)

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The Domestic scene (Asia)

No regulation (Malaysia, Singapore, Philippines, Indonesia, Thailand, Cambodia, Vietnam, Laos, Nepal, Pakistan, Sri Lanka, Bangladesh)

Regulation (Japan, India; China [Hong Kong]; Korea; Taiwan)

No strong market demand for certification

Strong market demand for certification- dominant private seals?

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The Export SceneEU

No Asian country on the EU approved third country list

Only option is through the importer’s derogation

Most EU importers prefer use of an EU based certification body- final certification for their EU markets - prove certification is done to EU regulations to state authority.

The EU regulations however do not disqualify the use of local certifiers in third countries. Certification by non-EU based certification bodies is possible and do occur. Although not officially recognised, IFOAM Accreditation is taken into accountby EU member states’ competent authorities to assess the competence of the certification organisation in issuing import authorisations.

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The Export Scene

USANo Asian country with mutual recognition agreement with the USAOnly option is through an USDA accredited certifierMay use local non-USDA accredited certifer for inspection if they are working as inspection agent for a USDA accredited certifier

JapanNo Asian country with mutual recognition agreement with JapanOnly option through a MAFF registered certifier (in Japan or Foreign based)- direct certification- re-certification

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Private sealsBesides regulatory requirements, there is also market preference for more established private organic seals. Depending on the market location, different private seals are preferred. This reflects the private certification bodies’respective home bases. Retailers and processors (trade buyers) generally prefer the dominant private seal of their respective markets, e.g. KRAV in Sweden.

It should be noted that at the market level, certification even by government bodies may be not accepted by some private seal organisations. Private standards are generally more demanding than regulatory requirements, although the product is legally organic, they may be deemed to not have fully conformed to private standards for use of the private seal.

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Exporting from AsiaOperator’s certification has to meet regulatory requirements and buyers’ preference of private seals (where applicable). No one certification acceptable for all markets worldwide. Exporters may have to have more than one certification. May be possible to facilitate market access and acceptance through re-certification based on the inspection report, by a credible certification body.

Summary of choiceCertifier(s) with regulatory approval & presence in target markets

Credibility with the trade and certification industry, i.e. leading certification body in its home base and IFOAM Accreditation.

Cost of certification and inspection including use of local/regional inspectors.

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Cost of serviceCost of certification varies according to the certification body, both in the categories of chargeable fees and their respective amounts. 3 general main categories, i.e.§ Application and associated certification fees§ Inspection costs (inspection fee, travel, board & lodging)§ Licensing fee or Levy based on sales of certified products

use of local/regional inspectors will mitigate cost

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