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Exclusivity, Supplier and End User Agreement document sample
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Printed at the FLO-CERT GmbH Public CC Trade
2/3/2011
FLO-CERT GmbH
Public Compliance Criteria List – Trade Certification
Compliance Criteria (CC): A compliance criteria indicates which action or situation is required.
Compliance Criteria are established by FLO-CERT to translate Fairtrade Standard requirements into verifiable control points that are evaluated in the certification process to determine
compliance with the Fairtrade Standards. Non-conformity with a Compliance Criteria is a Non-conformity with the respective Standard requirement. Each Compliance Criteria is linked to a
specific timeline indicating when it needs to be fulfilled. A Compliance Criteria identified as major is linked to a major Fairtrade principle and needs to be complied with at any time.
The FLO-CERT Public Compliance Criteria List - Trade Certification - is based on the
Generic Fairtrade Trade Standards (GTS) dated February 16, 2009) and the Product Standards for the following products: Flowers and plants, fresh fruits and vegetables, fruit juices, seed
cotton, cocoa, sports balls, tea, coffee, dried fruits, herbs and spices, honey, nuts and oilseeds, quinoa, rice, soybeans and pulses, cane sugar, wine grapes and banana (dated February 16,
2009).
How to use this document?
The following list presents the rules for trading with Fairtrade products. Not all requirements must be met in all cases: some apply only for certain products and others apply only to certain
types of operators (marked with an "x"). You can filter the list to show only those requirements that are relevant to you.
To find out which requirements are applicable you should first identify who you are in the chain. In some cases this will depend on which level the price is set in the Fairtrade Minimum Price and
Premium Table (available at www.fairtrade.net). Please contact FLO-CERT in case of doubt.
For products with FOB Fairtrade price:
- If you import through an exporter: you are a Price&Premium payer
- If you buy from producers for processing in the South and/or you export: you are a Conveyor of Price and Premium
For products with EXW, Farmgate, Auction, or no Fairtrade prices
- If you import through an exporter: you are a Premium payer
- If you buy from producers for processing in the South and/or you export: you are a Price payer (and Premium conveyer)
(in certain regions or products, the certifier may consider you a Price&Premium conveyer). You may also be the premium payer depending
upon the agreement in the contract with the importer (see also CC 3.1.1.6).
For all products:
- If you import directly from producers: you are a Price&Premium payer
- If you buy and sell Fairtrade products but are none of the above: you are a Non payer.
Applicable to:
(of Price and Premium)
Price&Premium payer
FLO Standard
(and Conveyor of
Premium payer
[FLO e.V.] or
Price payer
No. FLO-CERT Compliance Criteria Time Major Comments
Non payer
Premium)
Conveyer
other
Product
Requirement
x x x x x x 1. Certification
x x x x x x 1.1 Scope of certification
1.1.1.1 The operator has a valid FLO-CERT permission to trade or a
x x x x x valid FLO-CERT certificate for each product being traded as 0 M
Fairtrade.
1.1.1.2 The operator allows access to all sites and all information
x x x x x needed to demonstrate compliance with Fairtrade 0 M
Standards.
1.1.1.3 All operator's additional entities where Fairtrade activities
GTS 1.1 All take place are registered with FLO-CERT.
x x x x x 0
1.1.1.4 The operator has written agreements with each additional
entity ensuring compliance with tracebility requirements
x x x x x and stating that FLO-CERT is authorized to conduct on-site 0
audits of the additional entity.
x x x x x x 1.2 Sourcing and Sales
1.2.1.1 Fairtrade certified products are only sourced from operators
x x x x x
certified by FLO-CERT.
0 M
1.2.1.2 Fairtrade product not in consumer ready packaging are only
sold to operators certified by FLO-CERT or to companies
x x x x x registered with a Fairtrade Labelling Initiative. 0
1.2.1.3 Fairtrade certified products are purchased from producer
Transition organizations and not purchased from individual members of There is a transition period for operators that
x x x x period the organization (Exception: Contract Production and see 0(Topic) cannot currently fulfill this requirement.
applies 1.2.1.4). Compliance will be required by May 2011.
GTS 1.0 All
1.2.1.4 In cases where the operator must buy directly from
individual members, the operator must demonstrate why it
is not possible to buy from the organisation. In such cases
there must be a framework contract in place regulating the This requirement only applies in case of
following details between the operator and the producer structural individual relationships with buyers,
x x x x 0(Topic) i.e. the relationship cannot be changed due to
organisation: traceability, volume, pricing, delivery,
payments, invoicing. for example national legislation.
x x x x x x 1.3 Fairtrade contact
1.3.1.1 The operator designates in writing one official contact
x x x x x
person to FLO-CERT.
0
1.3.1.2 The contact person keeps FLO-CERT updated with contact
GTS 1.3 All
details and any other relevant information that affects FLO-
x x x x x CERT certification (new company structure, change in legal 0
status, etc.).
Document: 540f7a2c-ca57-48e7-8025-ae3353935a46.xls Date: 15 April 2010
Version: 13 Approval Status: Final
Author: RFA Confidentiality: Public
Page 1 of 7
Printed at the FLO-CERT GmbH Public CC Trade
2/3/2011
Applicable to:
(of Price and Premium)
Price&Premium payer
FLO Standard
(and Conveyor of
Premium payer
[FLO e.V.] or
Price payer
No. FLO-CERT Compliance Criteria Time Major Comments
Non payer
Premium)
Conveyer
other
Product
Requirement
x x x x x x 2. Traceability
x x x x x x 2.1 Physical product traceability (excluding sugar, cocoa,
tea and fruit juices)
2.1.1.1 Fairtrade certified products are not mixed with non-
Transition Fairtrade products. Fairtrade products are transported,
period stored processed/manufactured and delivered separately
applies from non-Fairtrade products.
x x x x x 0 M
2.1.1.2 When sold, the physical product is clearly identified as This standards applies to all products except
Transition Fairtrade and indicates the operator's FLO ID. sugar, cocoa, tea and fruit juices.
All except sugar, period
GTS 2.1 and 2.2
x x x x x
cocoa, tea and applies
0
There is a transition period for operators that
fruit juices
cannot currently fulfill this requirement.
2.1.1.3 The physical Fairtrade product is identifiable within the Compliance will be required by May 2011.
Transition company through on-product lot numbers and/or
period identification marks.
applies
x x x x x 0
2.1.1.4 Physical traceability procedures are recorded and followed.
Transition
x x x x x period 0
applies
x x x x x x 2.2 Traceability through documentation
2.2.1.1 Volumes sold as Fairtrade do not exceed the volumes which
have been previously purchased as Fairtrade.
x x x x x 0 M
2.2.1.2 The operator must ensure that a system is in place to
x x x x x record and monitor all relevant Fairtrade certified and 0
Fairtrade eligible product data.
2.2.1.3 Where relevant, operator keeps processing records that
demonstrate yields and losses.
x x x x x 0
2.2.1.4 All purchase and sales documentation related to the
Fairtrade product state the FLO ID of the operator and in
cases of non-consumer ready products the FLO ID of the
GTS 2.1 x x x x x All 0
buyer and display which products are Fairtrade.
2.2.1.5 When mixing and selling product from more than one
producer organisation, conveyers clearly indicate in written
x x format to the buyer the percentage composition of the 0 Only applies to Price and/or Premium Conveyors
product from each producer organization.
2.2.1.6 The operator must ensure that Fairtrade certified products
sold as non-Fairtrade clearly indicate that the product is not
Fairtrade by removing any existing reference to Fairtrade on
x x x x x product, packaging or documents or where not possible by 0
clearly indicating to their customer that the product is not
Fairtrade.
2.2.1.7 The operator does not imply, directly or indirectly, that an
ordinary sale is in any way associated with Fairtrade
x x x x x certified product sales. 0
x x x x x x 2.3 Flow of Goods reporting
2.3.1.1 The operator must submit quarterly to FLO-CERT price and
premium reports for all transactions for which the Fairtrade
FLO-CERT Only applies to Price and/or Premium payers,
requirement
x x x All Price and/or Premium has been paid. 0(Topic) not to conveyors
x x x x x x 3. Contracts
x x x x x x 3.1 Fairtrade contracts (Contracts must be provided by all
companies up to and including the importers, regardless if
they are price and premium payers or not.)
3.1.1.1 The operator must ensure that written contracts are in
New place for all Fairtrade certified product purchases (and
(transition sales where applicable).
period of 3
x x x x months 0 M
This standard applies to all transactions up to
applies) import from producing country (inclusive), but
not to subsequent Fairtrade transactions.
3.1.1.2 The operator must ensure that all elements of the Fairtrade
x x x x transactions fixed in the contract are honoured unless both 0 M
parties agree to a change.
Document: 540f7a2c-ca57-48e7-8025-ae3353935a46.xls Date: 15 April 2010
Version: 13 Approval Status: Final
Author: RFA Confidentiality: Public
GTS 3.1 All except flowers Page 2 of 7
Printed at the FLO-CERT GmbH Public CC Trade
2/3/2011
Applicable to:
(of Price and Premium)
Price&Premium payer
FLO Standard
(and Conveyor of
Premium payer
[FLO e.V.] or
Price payer
No. FLO-CERT Compliance Criteria Time Major Comments
Non payer
Premium)
Conveyer
other
Product
Requirement
3.1.1.3 The operator does not include Fairtrade exclusivity clauses
in Fairtrade contracts unless this is patently beneficial to Only applies to operators buying directly from
x x x producers (e.g. guarantee to purchase whole harvest). 0(Topic) producer organisations.
3.1.1.4 All contracts clearly state the agreed volumes, quality
(including conversion rates, if applicable), price, Fairtrade
x x x x premium, payment terms and delivery conditions. 0
GTS 3.1 All except flowers
3.1.1.5 The operator (acting as a Price conveyor) must ensure that
New contracts with producers additionally include: applicable
(transition costs that can be deducted from Fairtrade price received
period of 3 from buyer, and payment terms for initial purchase and
x months Fairtrade adjustment. 0(Topic) Only applies to Conveyors, not Price payers.
applies)
3.1.1.6 The contract clearly states which party is responsible for
New paying the Fairtrade Price and Premium to the producer
(transition organisation.
x x x x period of 3 0
months
applies)
3.1.1.7 Contracts with producers stipulate a mechanism to resolve
x x x x disputes, separate from jurisdiction, agreed by both parties. 0
3.1.1.8 No contradictions with Fairtrade Standards are stipulated in
x x x x
the Fairtrade contracts.
0
3.1.2.1 When acting as a Price conveyor, the operator must ensure
New that producers receive a copy of the contracts signed
(transition between the operator and Fairtrade payers.
GTS 3.5 x All period of 3 0
months
applies)
3.1.3.1 The operator must ensure that the contract with the
producer includes the date of the contract, duration of the
contract, product description, quality specifications of the
product, specific Fairtrade Price and Premium for each
product, terms of delivery using Inco terms, volumes of
Dried fruit, fresh Fairtrade products (minimum and maximum or fixed
Product Standards x x x x fruit, banana and volume), reference to sourcing plans, description about how 0(Topic)
vegetables the system of orders will function, description about who is
responsible for the labelling of products, description about
the liability of each party and quality check procedure,
definition of Force Majeure and description of pre-finance
mechanism.
3.1.4.1 The operator must ensure that where it has requested an
extension of the shipping schedule beyond the timings of
Product Standards x Coffee normal commercial practices the costs of storage, interest 0(Topic)
and insurance are paid for by the operator and are detailed
in the contract.
3.1.5.1 Final purchase orders are confirmed in writing.
Flowers and
Product Standards x x
plants
0(Topic)
3.1.6.1 Contracts with producers indicate that unavoidable GMO
contamination is only tolerated up to the levels defined by
Product Standards x x Soya and pulses the applicable national or international regulations 0(Topic)
(whichever is stricter) and specify which regulation(s)
apply.
x x x x x x 3.2 Suspension
3.2.1.1 Operators may continue to trade Fairtrade products with
operators with whom they have signed contracts or with
those with whom they have an ‘existing trade relationship’
for a period up-to 6 months from the date of suspension.
Where written contracts exist the volumes stipulated in the
contracts may be traded for a period up-to 6 months.
x x x x x 0(Topic)
Where no written contracts exist the volume traded during
the suspension period may not exceed the total volume
Only applicable in the case of suspension of a
GTS 3.2 All purchased in 6 of the previous 12 months.
supplier or buyer.
3.2.1.2 The operator must ensure that the transfer of ownership of
the product has taken place within six months from the date
x x x x x of suspension in order to be considered Fairtrade unless the 0(Topic)
producer or buyer is decertified during this period.
x x x x x x 3.3 Decertification
3.3.1.1 The operator (acting as a buyer) must ensure that only
x x x x x products purchased (change in legal ownership) prior to the 0(Topic)
decertification of the supplier are sold as Fairtrade.
Only applicable in the case of decertification of
GTS 3.3 All 3.3.1.2 The operator (acting as a seller) must ensure that only
a supplier or buyer.
products sold (change in legal ownership) to the buyer prior (Topic)
x x x x x to the decertification of the buyer were sold as Fairtrade 0
certified.
x x x x x x 3.4 Bonded contracts
3.4.1.1 In case of purchases of both certified and non-certified
products from the same producer the operator does not
GTS 3.4 x x x All purchase non-certified products at distinctly 0 M
disadvantageous terms to the producer as a condition for
certified purchases.
x x x x x x 3.5 Quality claims
Document: 540f7a2c-ca57-48e7-8025-ae3353935a46.xls Date: 15 April 2010
Version: 13 Approval Status: Final
Author: RFA Confidentiality: Public
Page 3 of 7
Printed at the FLO-CERT GmbH Public CC Trade
2/3/2011
Applicable to:
(of Price and Premium)
Price&Premium payer
FLO Standard
(and Conveyor of
Premium payer
[FLO e.V.] or
Price payer
No. FLO-CERT Compliance Criteria Time Major Comments
Non payer
Premium)
Conveyer
other
Product
Requirement
3.5.1.1 The operator must ensure that all quality claim procedures
New are agreed by both parties in writing and all quality claims
(transition are documented according to the current commercial
GTS 3.6 x x x x All period of 3 practices. 0
months
applies)
x x x x x x 4. Sustaining Trade
x x x x x x 4.1 Sourcing plans (Sourcing plans must be provided by all
companies up to and including the importers, regardless if
they are price and premium payers or not.)
4.1.1.1 If the operator has planned to buy from a particular
producer or trader he must provide a sourcing plan.
Only applies if the operator has planned to buy
x x x x 0(Topic) from a particular producer or trader.
GTS 4.1 All 4.1.1.2 If the operator has not planned to buy from a particular
New producer or trader there is proof that it was not possible to
(transition plan the purchase sufficiently in advance. Only applies if the operator has not planned to
x x x x period of 3 0(Topic) buy from a particular producer or trader.
months
applies)
4.1.2.1 There is a sourcing plan in place to cover at least a period
of 12 months (annual production).
x x x x
Coffee,
0(Topic)
soya&pulses,
honey, cocoa, 4.1.2.2 Sourcing plans are renewed at least three months before
herbs and spices, the previous sourcing plan expires.
Product Standards nuts and oilseeds,
quinoa, rice,
x x x x cotton, flowers, 0(Topic)
wine, sugar and
fruit juices
4.1.3.1 There is a sourcing plan in place to cover at least a
x x x x quarterly period. 0(Topic)
Fresh
4.1.3.2 The operator must ensure that sourcing plans are renewed
Product Standards fruit/vegetables,
at least two weeks before the previous sourcing plan
banana and tea
x x x x expires. 0(Topic)
4.1.4.1 Sourcing plans must cover a period agreed by both parties.
x x x x 0(Topic)
Product Standards Dried fruits
4.1.4.2 Sourcing plans are renewed at least three months before
x x x x
the previous sourcing plan expires. 0(Topic)
4.1.5.1 There is sourcing plan in place to cover at least a period of
x x
6 months.
0
4.1.5.2 Sourcing plans clearly state the agreed volumes, quality,
Flowers and
Product Standards x x price, Fairtrade premium, payment terms and delivery 0
plants
conditions.
4.1.5.3 Sourcing plans are renewed at least three months before (Topic)
x x the previous sourcing plan expires. 0
4.1.6.1 The operator must ensure that at least 50 % (first year of
Flowers and trade relationship) or 75% (subsequent years) of the
Product Standards x x
plants volumes indicated in the sourcing plan have been bought as 0(Topic)
Fairtrade.
4.1.7.1 In the event that the Fairtrade payer purchases less than
the volumes indicated in criteria 4.1.6.1, and where this is
Flowers and
Product Standards x x
plants
due to non-fulfilment of orders by their clients, then the 0(Topic)
Fairtrade payer inform FLO-CERT of this in writing, providing
evidence.
4.1.8.1 Sourcing plans specify the producers the operator intends to
x x
purchase from as well as total expected purchases. 0(Topic)
4.1.8.2 At least 50% of the quantities listed in the sourcing plan are
purchased from the producer, unless during the quarter 15%
Product Standards x x Bananas
of the fruit did not meet the quality as stipulated in the 0(Topic)
contract.
4.1.8.3 Volumes to be shipped are ordered in writing at least 5-10
x x
working days prior to the loading of the ship. 0(Topic)
4.1.9.1 Any Fairtrade payer which is not buying directly from a
New producer is required to inform the producers of:
(transition - (within a week of purchase) each purchase of Fairtrade
period of 3 cane sugar or by-products
months - (within a week of purchase) date of the transfer of the Only applies to sugar importers not buying
Product Standards x Sugar applies) Fairtrade Premium which is to be paid (not applicable to 0(Topic) directly from producers
retrocertified sales)
- (within a week after transfer of the Premium) details of
the Fairtrade Premium money transfer in a comprehensive
report.
x x x x x x 5. Pre-finance
x x x x x x 5.1 Pre-financing for producers (excluding flowers,
bananas, fresh fruits, fresh vegetables and sports balls)
5.1.1.1 Pre-financing is given upon request of the producer, unless
x x the producer is classified as high risk as detailed in 5.1.2.1. 0 M
GTS 5.1 5.1.1.2 The operator must ensure that the offer of pre-finance via a
x x 0
third party is accepted by the producer.
5.1.1.3 The producer is not being coerced into not requesting pre-
x x 0
finance.
Document: 540f7a2c-ca57-48e7-8025-ae3353935a46.xls Date: 15 April 2010
Version: 13 Approval Status: Final
Author: RFA Confidentiality: Public
Page 4 of 7
Printed at the FLO-CERT GmbH Public CC Trade
2/3/2011
Applicable to:
(of Price and Premium)
Price&Premium payer
FLO Standard
(and Conveyor of
Premium payer
[FLO e.V.] or
Price payer
No. FLO-CERT Compliance Criteria Time Major Comments
Non payer
Premium)
Conveyer
other
Product
Requirement
5.1.2.1 The operator must demonstrate by presenting the report of
an assessor (third party lender) that a high level of risk of
non-repayment or non-delivery has been associated with a
GTS 5.4 x x certain producer and therefore no pre-financing is granted. 0
5.1.3.1 The operator must ensure that the level of the pre-finance
x x is determined by the producer, up to a ceiling of 60%. 0
5.1.3.2 The operator pre-finances up to 60% of the contract value
x x 0
GTS 5.2 or the Fairtrade minimum price.
5.1.3.3 For dried fruit, where contracts are open on a seasonal
basis pre-finance is made available against quarterly
x x volumes or against the equivalent value of monthly 0(Topic)
volumes.
5.1.4.1 Pre-financing is made effectively available for use and is
delivered to the producer as soon as possible upon signing
All except the contract but at latest:
flowers, bananas, - (for coffee) eight weeks prior to the shipment of the
GTS 5.3 and fresh fruit and product
x x sport balls. - (for soya&pulses, honey, cocoa, nuts and oilseeds, 0
Product Standards
quinoa, rice, fruit juices, cotton, wine, sugar and tea) six
weeks prior to the shipment of the product.
-(for dried fruit open contracts) two weeks before the
start of the quarter or month.
5.1.5.1 The interest charged to the producer was mutually agreed
and is at the buyer’s cost of borrowing (as a maximum,
including administrative costs) or on a lower rate and in no
GTS 5.5 x x case exceeds the central bank rate in the buyer’s country. 0
5.1.6.1 In cases where local and national legislation means that the
Fairtrade payer is not legally permitted to pay pre-finance,
GTS 5.6 x x the operator communicates these legal restrictions to the 0(Topic)
producer (in those cases the requirements on pre-financing
do not apply).
5.1.7.1 The provision of pre-finance is documented as a separate
x x section within the contract or as a separate credit 0
agreement.
5.1.7.2 A clear agreement of both parties exists with terms and
conditions for both, including at least the amounts to be pre-
GTS 5.7
financed, start dates, date of repayment, consignment
x x contract details, rates of interest, collection of payment 0
options, administrative costs incurred in organising and
delivering the pre-finance (i.e. from the contract
payments).
x x x x x x 6. Pricing
x x x x x x 6.1 Payment of Fairtrade minimum price
6.1.1.1 The operator pays at least the Fairtrade minimum price or if
applicable the organic Fairtrade minimum price, as
stipulated in the Fairtrade price and premium table, or
where applicable the market price (or the organic market
price in case of organic products). The correct Fairtrade
price is paid, taking into consideration the point until which
x x the producers are responsible for the product. 0 M Only applies to Price payers, not Conveyers.
6.1.1.2 The operator (acting as a Price conveyor) pays the Fairtrade
New price received from the buyer minus applicable costs on a
(transition level that has been agreed upon with the producer
period of 3 organization in the contract. The result can never be
GTS 6.1 and 6.4 All
x months negative (see also 6.2.1.3). 0(Topic) M Only applies to Conveyers, not Price payers.
applies)
6.1.1.3 A reference to a relevant market has been agreed and
New records of the appropriate market prices for products are
(transition being kept.
x x x period of 3 0
months
applies)
6.1.1.4 Payments of the Fairtrade price are transferred to the
producer organization and not to the individual members of
x x x the organization (exception: contract production and see 0
1.2.1.3 and 1.2.1.4).
6.1.2.1 When purchasing a transformed Fairtrade product the
Fairtrade price is calculated based on the amount of
x x x unprocessed Fairtrade product form used to make the 0
transformed product. To allow calculations, all invoices will
include processing yield.
6.1.2.2 In case where a producer takes responsibility for an activity
which is not included in the Fairtrade minimum price (e.g.
GTS 6.5 All transport to the harbour, processing costs, etc.) these
x x x additional costs are added to the minimum price paid to the 0
producer.
Document: 540f7a2c-ca57-48e7-8025-ae3353935a46.xls Date: 15 April 2010
Version: 13 Approval Status: Final
Author: RFA Confidentiality: Public
Page 5 of 7
Printed at the FLO-CERT GmbH Public CC Trade
2/3/2011
Applicable to:
(of Price and Premium)
Price&Premium payer
FLO Standard
(and Conveyor of
Premium payer
[FLO e.V.] or
Price payer
No. FLO-CERT Compliance Criteria Time Major Comments
Non payer
Premium)
Conveyer
other
Product
Requirement
GTS 6.5 All
6.1.2.3 Only deductions of costs which are included in the FT
minimum price which the producer has agreed in contract
x x x to not be responsible for, have been deducted from the FT
0
minimum price.
6.1.3.1 The operator must ensure that both parties are in
GTS 6.3 x x x All 0
agreement about when and how the price is fixed.
x x x x x x 6.2 Payment of Fairtrade premium
6.2.1.1 The operator must ensure that the correct amount of
x x Fairtrade premium is paid to the producer organization, as 0 M
stipulated in the Fairtrade price and premium table.
6.2.1.2 For each transaction, Premium conveyers inform Premium
New payers in writing of the premium amount owed to the
(transition producer organisation(s) (if applicable, comprising
x x period of 3 respective Premium calculations including conversion rates, 0(Topic) Only applies to Premium Conveyers
months processing losses, etc.).
applies)
6.2.1.3 The operator must ensure that no deductions are made to
x x x x 0 M
premium payments to the producer(s).
6.2.1.4 When purchasing a transformed Fairtrade product the
GTS 6.2 All Fairtrade Premium is calculated based on the amount of
x x x x unprocessed Fairtrade product form used to make the 0
transformed product. To allow calculation, all invoices will
include processing yields.
6.2.1.5 The operator must ensure that payments of the Fairtrade
premium are transferred to the producer organization
x x x x (Small Producers), Joint Body (Hired Labour) or Promoting 0
Body (Contract Production) and not to the individual
members.
6.2.1.6 The operator must ensure that the producer(s) receive the
Fairtrade premium in the currency set in the Fairtrade
x x x x standards, unless otherwise agreed in the contract.
0
x x x x x x 6.3 Payment terms for Fairtrade price and Premium
6.3.1.1 The operator must ensure that both parties agree on the
x x x x 0
best mechanism for payment and receipt of payment.
x x x x 6.3.1.2 All payments are transparent and traceable. 0
GTS 6.6 All
6.3.1.3 The operator must ensure that all payment documents
x x x x clearly indicate the premium amount separate from the 0
price.
6.3.2.1 When acting as a payer, the operator must ensure that
payments of Fairtrade price and/or Premium are made as
soon as possible but no later than but within :
Coffee, cocoa, - 15 days after the receipt of the documents transferring
nuts and oilseeds, ownership (for coffee, cocoa, nuts and oilseeds, tea, rice,
banana, tea, cotton, herbs and spices, soya and pulses, and flowers)
sugar, honey, - 30 days after the receipt of the documents transferring
fruit juices, sport- ownership (for sugar, honey, quinoa, sport-balls, wine,
GTS 6.7 and
Product Standards
x x balls, wine, and fruit juices) 0(Topic) Only applies to payers, not conveyers.
cotton, rice, - 7 days after receipt of the product (for bananas, fresh
flowers, herbs fruit, dried fruit and vegetables)
and spices, - 7 days (for bananas) of the arrival of the product in port
quinoa, soja and of destination.
pulses. - 30 days after the date of invoice (for other products)
6.3.3.1 When acting as a conveyor the operator must ensure that
payment of Fairtrade price and/or Premium to the
producers is made no later than:
- 15 days after receipt of payment from the Fairtrade payer
Product Standards x x All (for coffee, flowers, nuts and oilseeds, tea, rice, 0(Topic) Only applies to conveyors, not payers.
soya&pulses, cocoa, herbs and spices, cotton)
- 30 days after receipt of payment from the Fairtrade payer
(for all other products).
6.3.4.1 The operator must ensure that where the price and
FLO-CERT premium are not made within 15 days of purchase it was
requirement
x x Cotton and Rice
necessary and normal to buy the product in advance and 0(Topic)
store it for longer than 15 days.
6.3.5.1 The operator must ensure that new Fairtrade prices and/or
x x x x Premium announced by FLO are applied to new contracts 0(Topic)
from the date of the announcement.
Only applicable in the case of new FLO
GTS 6.8 All 6.3.5.2 The operator must ensure that for existing contracts all
Fairtrade price settings.
pricing Terms & Conditions are honoured as originally
x x x x agreed. 0(Topic)
x x x x x x 7 Additional Requirements
x x x x x x 7.1 Social Indicator (only applicable for cotton)
7.1.1.1 The operator (including all additional entities) must have
Product Standards x x x x x Cotton submitted, and had approved a valid 'social indicator' to FLO- 0(Topic)
CERT.
x x x x x x 7.2 Consignment Sales (only applicable for fresh fruits,
fresh vegetables and bananas)
7.2.1.1 The Fairtrade payer only pays the producer under non-
Fresh
Fairtrade conditions in case of excessive volume shipped,
Product Standards x x fruit/vegetables
short falling sales or in case of quality problems. 0(Topic) M
and Bananas
7.2.2.1 The operator must demonstrate through written records
that the payment methods for Fairtrade consignment sales
x are clearly defined in a contract with the producer(s) 0(Topic)
and/or conveyor(s).
FLO-CERT Fresh
requirement fruit/vegetables
Document: 540f7a2c-ca57-48e7-8025-ae3353935a46.xls Date: 15 April 2010
Version: 13 Approval Status: Final
Author: RFA Confidentiality: Public
Page 6 of 7
Printed at the FLO-CERT GmbH Public CC Trade
2/3/2011
Applicable to:
(of Price and Premium)
Price&Premium payer
FLO Standard
(and Conveyor of
Premium payer
[FLO e.V.] or
Price payer
No. FLO-CERT Compliance Criteria Time Major Comments
Non payer
Premium)
Conveyer
other
Product
Requirement
7.2.2.2 The operator (when acting as an importer) must ensure that
FLO-CERT Fresh all payments, including price differential and premium, for
requirement
x fruit/vegetables consignments sales are made within eight weeks upon sale 0(Topic) Only applicable for importers.
of the product as Fairtrade.
7.2.2.3 The operator (when acting as an exporter) must ensure that
all payments, including price differential and premium, for
x consignments sales are made within 30 days upon receipt of 0(Topic) Only applicable for exporters.
the payment from the importer.
7.2.3.1 The producer has accepted that the fruit can be sold on
x x
consignment. 0(Topic)
7.2.3.2 The quality of the fruit is below the tolerances as
x x documented according to the agreed quality claim 0(Topic) Only applicable in case of quality problems
procedures (see also 3.5.1.1).
7.2.3.3 If the importer's clients do not purchase the agreed amount
Only applicable to importers in case of short
x x that no more than 10% of the ordered volume is sold under 0(Topic) falling sales
non-Fairtrade conditions.
7.2.3.4 If the product is sold as consignment payment is made no
x x
later than 28 days after arrival in country of destination. 0(Topic)
7.2.3.5 The operator pays the price to producer after no further
Product Standards Bananas deductions than that of sea freight, insurance, harbour
x x handling costs, clearance, survey, post-harbour transport, 0(Topic)
dumping costs and Fairtrade payers commission.
Only applicable if non-Fairtrade payments are
7.2.3.6 The commission is not higher than 6% of the Fairtrade
based on sales in consignment
x x payers selling price and the balance is not negative for the 0(Topic)
producer.
7.2.3.7 If the operator and the producer reach a different
agreement over the deductions from the final sale made by
x x the operator the costs deducted and the percentage that 0(Topic)
producers receive as advanced payment are detailed in the
contract.
x x x x x x 7.3 FLO Fairtrade certification mark (only applicable
for licensees)
7.3.1.1 The Fairtrade product composition of all consumer ready
products carrying the FLO Fairtrade certification mark has
x x x been approved by the respective Labelling Initiative and are 0(Topic)
FLO-CERT followed on production site.
All Only applicable for licensees.
requirement
7.3.1.2 The packaging of all consumer ready products carrying the
FLO Fairtrade certification mark has been approved by the (Topic)
x x x 0
respective Labelling Initiative.
7.4 Small Licensees
7.4.1.1 The operator complies with the definition of small licensees
according to the FLO-CERT Small Licensee policy.
x 0(Topic)
7.4.1.2 The operator provides FLO-CERT with the annual sales
FLO-CERT x
All figures at the end of each year of activity. 0(Topic) Only applicable to small licensees.
requirement
7.4.1.3 The operator provides an activity report every 3rd year of
x Fairtrade activity indicating all purchases, sales, stocks and 0(Topic)
yields/recipes of Fairtrade products.
7.4.1.4 The operator informs FLO-CERT in written and provides
x evidence of changes if their qualification as a small licensee 0(Topic)
is not longer valid.
x c x x x x 7.5 Auctions (only applicable to Tea)
7.5.1.1 The operator must ensure that it communicates to the
x x producer on the sourcing plan its intention to buy its tea 0(Topic)
through an auction.
Product Standards Tea 7.5.1.2 The operator must ensure that for tea bought and sold Only applies to tea purchases through auctions
through auctions within one week of the auction a report is
x x sent to the producer, detailing all outstanding Fairtrade- 0(Topic)
related payments.
7.6 Occupational Health and Safety
7.6.1.1 Workers within the processing unit must be adequately
protected from cashew nut liquid. The employer must
Only applicable to operators processing cashew
Product Standards x x x x x Cashew Nuts provide protective garments and oils, is responsible for 0(Topic) nuts.
monitoring that employees use these and are trained on its
use.
x x x x x x 8. Transitional requirements (these requirements apply
to specific products and for a limited time)
8.1.2.1 The operator must ensure that prior approval for products
x x to be declared as Fairtrade after the time of purchase has 0(Topic)
been granted by FLO-CERT.
8.1.2.2 The operator must ensure that the producer is informed
Product Standards Sugar
about volumes purchased, price paid to the conveyor, terms
x x of delivery, purchase dates, lot numbers and FLO Fairtrade 0(Topic)
IDs of operators purchasing the Fairtrade eligible sugar Only applicable for cane sugar sourced from
cane. Paraguay, Malawi, Mauritius and Zambia prior to
8.1.3.1 Premium payments due must be made on a quarterly basis: 1 January 2010
January to March Premium payments must be made before
the 15th of April, April to June payments before the 15th of
Product Standards x Sugar July, July to September payments before the 15th of 0(Topic)
October and October to December payments before the
15th of January of the next year
8.1.4.1 Premium payments for retro-certified tea are made on a Only applicable to retro-certified Fairtrade tea
Product Standards x x Tea
quarterly basis. 0(Topic) purchased prior to 1 January 2009
Document: 540f7a2c-ca57-48e7-8025-ae3353935a46.xls Date: 15 April 2010
Version: 13 Approval Status: Final
Author: RFA Confidentiality: Public
Page 7 of 7
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