National Standard on Forest Certification in China - Chain of custody

Part Five Forest certification in China --- Chain of custody China Forest Certification Council 18, Hepingli Dongjie, Dongcheng District, Beijing 100714, China Tel: 0086-10-84239108 Fax: 0086-10-84238752 Email: info@cfcs.org.cn Website: www.cfcs.org.cn Part Five Forest certification in China --- Chain of custody Explanation This Chain of Custody Standard adopted the Programme for the Endorsement of Forest Certification (PEFC) International Standard “Chain of Custody of Forest Based Products – Requirements” (PEFC ST 2002:2010) with only a few minor but necessary modifications according to national laws and regulations related to standard development, and was adopted by the China Forest Certification Council (CFCC) on June 20, 2011. Differences between PEFC COC Standard and this Standard Compared with PEFC International Standard “Chain of Custody of Forest Based Products – Requirements” (PEFC ST 2002:2010), the CFCC COC Standard, which is “Forest certification in China --- Chain of custody”, only has some minor adjustments, which are as follows: 1. PEFC is replaced by CFCC in general, but with some different adjustments in different situations, which are as follows: a) The PEFC logo is replaced by CFCC logo; b) The PEFC claim is replaced by CFCC claim; c) “PEFC endorsed forest certification schemes and chain of custody standards” is replaced by “CFCC chain of custody certification standard or CFCC mutually recognized forest certification schemes/standards”; d) “PEFC Council or other recognized organisations” is replaced by “CFCC or CFCC mutually recognized forest certification schemes or CFCC recognized organizations.” 2. Put the content of Foreword and some parts of the content of Scope in the main text into the Introduction. 3. All ISO document numbers appeared are replaced by GB/T document numbers, correspondently, as China also fully adopts ISO standards but with different series numbers. Delete PEFC ST 2001:2008, ISO/IEC Guide 2:2004, ISO 9001:2008, ISO/IEC 14020:2000, ISO 19011:2002, EN 643:2001 as they all are not cited in the main text of the standard according to China’s standardization rules. 4. Add notes relate to Appendixes 3 and 4 in 6.2.2 and 6.5.1, respectively, so as to link these 2 appendixes into the main text of the standard also according to China’s standardization rules. 5. Change the series numbers of the texts in all 4 appendixes and themselves from 1, 2, 3 and 4 into A, B, C and D as well as others also according to China’s standardization rules. 6. Change the content of Appendix 2, 3.5 indicators 1 into “The actual corruption perception index (CPI) of the country presented by international organizations recognized by the Chinese Government”, and revise the content of “Examples of external reference sources” accordingly. Delete the example and website links appeared in Annex 2, 3.5 and 3.6 according to China’s standardization rules. 7. Change the content of Appendix 3, 2.6 b) into “have a turnover of maximum of 60,000,000 RMB”, which is equivalent to 9,000,000 CHF. 8. Change the content of appendix 4, 2.2 (c) into “workers, who are under the minimum legal age of 16” according to China’s laws and regulations about labours. 9. Change the text of the Scope in Appendix 4 into “This Appendix includes requirements relating to health, safety and labour issues that are based on the Labor Law of People’s Republic of China, the Worker’s Union Law of the People’s Republic of China, and ILO Declaration on Fundamental Principles and Rights at Work (1998) to which China is a signatory” which is better in line with China’s laws and regulations about labours and its signatory to some of ILO conventions. Contents Introduction ...................................................................................................... 1 1 Scope ............................................................................................................ 3 2 Normative references .................................................................................... 3 3 Terms and Definitions ................................................................................... 3 4 Requirements for chain of custody process – physical separation ................ 8 4.1 General requirements for physical separation ........................................ 8 4.2 Identification of the origin of certified material/products .......................... 8 4.3 Separation of certified material/products ................................................. 9 4.4 Sale and communication on certified products ....................................... 9 5 Requirements for chain of custody process – percentage based method ... 11 5.1 General requirements for the percentage based method ...................... 11 5.2 Identification of origin ............................................................................ 12 5.3 Calculation of the certification percentage ............................................ 13 5.4 Transfer of the calculated percentage to the outputs ............................ 14 5.5 Sale and communication on certified products ..................................... 16 5.6 Controversial sources ........................................................................... 18 6 Minimum management system requirements ............................................. 18 6.1 General requirements ........................................................................... 18 6.2 Responsibilities and authorities ............................................................ 18 6.3 Documented procedures....................................................................... 19 6.4 Record keeping ..................................................................................... 20 6.5 Resource management......................................................................... 20 6.6 Inspection and control ........................................................................... 21 6.7 Complaints ............................................................................................ 21 6.8 Subcontracting ...................................................................................... 21 Appendix A: Specification of the CFCC claim on “CFCC certified” material ... 23 Appendix B: CFCC Due Diligence System (DDS) for avoidance of raw material from controversial sources ....................................................................... 25 Appendix C: Implementation of the chain of custody standard by multi-sites organisations ............................................................................................ 31 Appendix D: Social, health and safety requirements in chain of custody ....... 36 1 Introduction The CFCC claims made on forest based products provide information relating to the origin of those forest based products from sustainably managed forest and recycled sources and other non controversial sources. Purchasers and potential purchasers can use this information in choosing the product based on sustainability, as well as other considerations. The aim of communicating the raw material’s origin is to encourage demand for and supply of those products originating in sustainably managed forests and thereby stimulating the potential for market-driven continuous improvement of management of the world’s forest resource. The overall goal of the CFCC chain of custody is to provide customers of forest based products with accurate and verifiable information on the content of material originating in CFCC certified, sustainably managed forests or recycled material. Chain of custody requirements describe a process of how to get from the information about the origin associated with the procured raw material to the information about the origin which is attached to the organisation’s products. This Standard specifies two optional approaches for chain of custody, namely the physical separation and percentage based methods. The chain of custody shall be used in connection with the definition of specific CFCC claim(s) or claims of CFCC mutually recognized forest certification schemes, which include criteria for the recognition of certified material. The core part of the standard therefore defines the chain of custody process using generic terms of “certified, neutral and other material” while the content of those terms specific for an individual claim is defined in Appendix A to this Standard. This Standard also specifies the minimum management system requirements for the implementation and management of the chain of custody process. An organisation’s quality (GB/T 19001-2008) or environmental management system (GB/T 24001-2004) may be used to implement the minimum requirements for the management system defined in this standard. The usage of claims and relating labels, as a result of implementation of the chain of custody, is based on GB/T 24020-2000 that shall be followed by the users of this standard. Consideration of recycled material within the chain of custody is based on the requirements of GB/T 24021-2001 that shall be followed by the users of this Standard. The labelling of products is considered as an optional communication tool which may be incorporated into the organisations chain of custody process(es). Where the organisation decides to apply the on-product or off-product labelling, the 2 requirements for the usage of a label, including those set up by the owner of the label are becoming an integral part of chain of custody requirements. 3 Forest certification in China --- Chain of custody 1 Scope This Standard covers requirements which can be implemented for chain of custody of forest based products. The standard shall be implemented for the purposes of third party conformity assessment based on requirements defined by the CFCC. The conformity assessment is considered as product certification and shall follow GB/T 27065-2004. 2 Normative references The following referenced documents are indispensable for the application of this document. For dated references, only the version with noted date applies to this document. For undated references, the latest edition of the referenced document (including all amendments) applies to this document. GB/T 19000-2008, Quality management systems --- Fundamentals and vocabulary GB/T 24001-2004, Environmental management systems --- Requirements with guidance for use GB/T 27065-2004, General requirements for bodies operating product certification systems GB/T 24021-2001, Environmental labels and declarations --- Self-declared environmental claims (Type II environmental labeling) 3 Terms and Definitions For the purposes of this document, the relevant definitions given in GB/T 19000-2008 apply, together with the following definitions: 3.1 Accredited certificate A certificate issued by a certification body within the scope of its accreditation which bears the accreditation body’s symbol. 3.2 Certified material Raw material whose origin is covered by the chain of custody claims. 4 Note: The criteria for certified material and its suppliers are defined as a part of the definition of CFCC claim(s) which can be found in Appendix A to this Standard. 3.3 Certified product Product which is claimed as including certified material whose content is verified by chain of custody. 3.4 Chain of custody of forest based products Process of handling of information on the origin of forest based products which allows the organisation to make accurate and verifiable claims on the content of certified material. 3.5 Claim Information which indicates certain aspects of a product. Note: The term “claim” used in this Standard indicates usage of the official chain of custody claims (see for example Appendix A) relating to the CFCC claim. 3.6 Claim period Time period for which the chain of custody claim applies. 3.7 Controversial sources Forest management activities which are: (a) not complying with local, national or international legislation, in particular related to the following areas:  forestry operations and harvesting, including conversion of forest to other use,  management of areas with designated high environmental and cultural values,  protected and endangered species, including requirements of CITES,  health and labour issues relating to forest workers,  payment of taxes and royalties, (b) utilising genetically modified organisms, (c) converting forest to other vegetation type, including conversion of primary forests to forest plantations. Note: The policy on the exclusion of material from genetically modified organisms remains in force until 31 December 2015. 5 3.8 Customer A single entity, either buyer or user of the organisation’s products, to whom the claim is made. Note: The term customer also covers an internal customer within the organisation where more subsequent product groups exist. 3.9 Forest based material Raw material originating in forest areas or from other areas recognised by the CFCC as eligible for CFCC forest management certification, including recycled material originally coming from those areas. Note: The forest based material includes wood based as well as non-wood based material. 3.10 Forest based products Products which include forest based material. 3.11 Labelling Usage of labels (on- or off-product). 3.12 Neutral material Raw material whose origin is considered as neutral in the calculation of the certification percentage. Note: The criteria for neutral material are defined as a part of the definition of CFCC claims which can be found in Appendix A to this Standard on specification of claims. 3.13 Organisation Any entity which is making the claims on products and is implementing requirements of this standard. Such an entity has ability to clearly identify the supplier of raw material and the customer of its products. 3.14 Origin / material origin Information associated with the raw material used in the product referring to the characteristics of the place that the raw material comes from. 6 Note: The origin (i.e. “characteristics of the place where the raw material is coming from”) means for example the origin in CFCC certified, sustainable managed forest or the origin in recycled sources. This standard uses three categories of the origin, certified, neutral and other material, whose definitions are made specifically for individual claims. 3.15 Other material Raw material other than certified and neutral material. 3.16 CFCC recognised certificate is: (a) a valid accredited forest management certificate issued by a CFCC notified certification body against CFCC forest management certification standard or CFCC mutually recognized forest certification schemes/standards, (b) a valid accredited chain of custody certificate issued by a CFCC notified certification body against this Standard together with CFCC recognised specification of the origin, or (c) a valid accredited chain of custody certificate issued by a CFCC notified certification body against CFCC chain of custody certification standard or CFCC mutually recognized forest certification schemes/standards. 3.17 Physical separation A procedure in which various materials/products of different origin are kept separate so that the origin of the material/products used and transferred to the customer is known. Note: Physical separation can involve physical separation at an organisation’s facility e.g. in separate bays or in specific storage areas of the facility, or it can include clear marking or usage or having distinguishing marks, to readily identify the materials of different origin categories. 3.18 Product group Set of products manufactured or traded in the specified processes which are covered by the organisation’s chain of custody. Note 1: The organisation can establish one or more product groups as a result of parallel or subsequent processes. Note 2: The chain of custody product group can also include a single product for which the chain of custody is implemented. 3.19 7 Recycled material Forest based material that is (a) diverted from the waste stream during a manufacturing process. Excluded is reutilisation of materials such as rework, regrind or scrap generated in a process and capable of being reclaimed within the same process that generated it. Excluded are by-products such as sawmilling by-products (sawdust, chips, bark, etc.) or forestry residues (bark, chips from branches, roots, etc.) as they do not represent “waste stream”. and (b) generated by households or by commercial, industrial and institutional facilities in their role as end-users of the product which can no longer be used for its intended purpose. This includes returns of material from the distribution chain. Note 1: The term “capable of being reclaimed within the same process that generated it” means that the material generated in one process is continuously returned to the same process at the same site. An example is residue generated by a press line in a panel board production which continuously re-enters the same press line. This is not considered as recycled material. Note 2: The definition is based on definitions of GB/T 24021-2001. 3.20 Rolling percentage calculation Calculation of the certification percentage based on input material procured during the specified period before the product’s manufacturing or trading. 3.21 Simple percentage calculation Calculation of the certification percentage based on input material physically included in the product for which the calculation is made. Note: An example of the simple percentage calculation is a printing job where the certification percentage is calculated from the material purchased and used for this specific printing job. 3.22 Supplier A clearly identified single entity directly supplying input material to the relevant product group together with a claim on the material origin. Note 1: In cases where the material is physically delivered by another entity than that having the ownership title to the material, the organisation shall appoint a single supplier for the purposes of this definition, either an entity with the ownership title or an entity physically delivering the material. E.g. A printing house procuring material from a distributor, which is however delivered directly by a paper producer, may consider as the supplier either the distributor or paper producer. 8 Note 2: The term supplier also covers an internal supplier within the organisation where more subsequent product groups exist. 4 Requirements for chain of custody process – physical separation 4.1 General requirements for physical separation 4.1.1 The organisation whose certified material/products are not mixed with other material/products and/or where the certified material/products can be identified during the whole processes, should use the physical separation as the preferred option. 4.1.2 The organisation applying the physical separation method shall ensure that the certified material is separated or clearly identifiable at all stages of the production or trading process. 4.1.3 The physical separation method may also apply to the certified products with various content of certified material. Note: The organisation may physically separate a product(s) with the same percentage based claim from other products with or without different percentage claims. 4.2 Identification of the origin of certified material/products 4.2.1 Identification at delivery (incoming) level 4.2.1.1 The organisation shall obtain from the suppliers for each delivery of certified material/products information necessary to verify their certified status. 4.2.1.2 A document associated with each delivery of certified material/products shall include at least the following information: (a) the organisation’s name as the customer of the delivery, (b) supplier identification, (c) product(s) identification, (d) quantity of delivery for each product covered by the documentation, (e) date of delivery / delivery period / accounting period, (f) the formal claim on the material origin (including percentage of certified material) specifically for each certified product covered by the documentation, (g) the identifier of the supplier’s chain of custody or forest management certificate or other document confirming the supplier’s certified status. Note 1: The formal claim, which means the claim in its exact wording, as well as documents confirming the certified status are specified in Appendix A to this Standard or by other document(s) defined by the relevant forest certification or labelling scheme. 9 Note 2: The certificate identifier can be a numerical or alpha-numerical combination and is usually referred to as the “certification number”. Note 3: An example of the delivery documentation is an invoice or delivery note provided that it meets all the requirements of 4.2.1.2. 4.2.1.3 For each delivery, the organisation shall verify the material/product certified status following the claim specification for which the chain of custody was implemented. Note: The definition of certified material is defined for a specific claim in Appendix A to this Standard or by other document(s) defined by the relevant forest certification or labelling system. 4.2.2 Identification at supplier level 4.2.2.1 The organisation shall require, from all suppliers of certified material, a copy of or access to the forest management or chain of custody certificate or another document confirming the supplier’s certified status. Note: The criteria for the supplier of certified material are specified for each claim in Appendix A to this Standard or by other document(s) defined by the relevant forest certification or labelling scheme. 4.2.2.2 The organisation shall evaluate the supplier’s certified status with the criteria for the suppliers of certified material based on validity and scope of documents received under 4.2.2.1. Note: In addition to the receipt of a document identified under chapter 4.2.2.1 from the supplier, the organisation should make use of publicly available registers of suppliers of certified material kept by CFCC or CFCC mutually recognized forest certification schemes or CFCC recognized organizations. 4.3 Separation of certified material/products Certified material and certified products with different content of certified material shall remain clearly identifiable throughout the whole production/trading process, including storage. This shall be achieved by: (a) physical separation in terms of production and storage space or (b) physical separation in terms of time or (c) clear identification of the certified material/products during the process. 4.4 Sale and communication on certified products 10 4.4.1 Documentation associated with sold/transferred products 4.4.1.1 At the point of sale or transfer of certified products to the customer, the organisation shall provide the customer with a copy or access to a copy of its chain of custody certificate. The organisation shall inform the customers about any change in the scope of its chain of custody certification and shall not misuse its chain of custody certification. Note: In the case of multi-site certification where individual sites receive a separate document (referring to the main certificate) confirming their certified status, the organisation (the site) provides its customers copies of this document together with the main certificate. 4.4.1.2 For the purposes of communication of the chain of custody claim, the organisation shall identify a single type of document associated with the delivery of all sold/transferred products. The document, including the formal claim, shall be issued to a single customer. The organisation shall keep copies of the documents and ensure that information contained within those copies cannot be altered after the originals are delivered to the customers. Note: The document associated to each delivery covers the media and information, including electronic media. An example of the delivery documentation is an invoice or delivery note provided that it meets all the requirements of 4.4.1.2, 4.4.1.3 and 4.4.1.4. 4.4.1.3 The document associated with each delivery of all certified products shall include at least the following information: (a) customer identification, (b) supplier identification, (c) product(s) identification, (d) quantity of delivery for each product covered by the documentation, (e) date of delivery / delivery period / accounting period, (f) the formal claim on the material origin (including percentage of certified material) specifically for each certified product covered by the document, (g) the identifier of the supplier’s chain of custody certificate or other document confirming the supplier’s certified status. Note 1: The formal claim, which means the claim in its exact wording, as well as documents confirming the certified status are specified in Appendix A to this Standard or by other document(s) defined by the relevant forest certification or labelling scheme. Note 2: The certificate identifier can be a numerical or alpha-numerical combination and is usually referred to as the “certification number”. 4.4.2 Usage of logos and labels 11 4.4.2.1 The organisation which uses a logo or label, for on-product and/or off-product purposes, relating to the chain of custody certification, shall have an authorisation from the logo/label’s trademark owner or from the owner’s authorised representative and the usage shall be carried out according to the terms and conditions of the authorisation. Note 1: Where the organisation decides to use the logo/label, the logo/label usage rules specified by the logo/label owner become an integral part of the chain of custody requirements. Note 2: In case of CFCC Logo usage, “authorisation” means a valid licence issued by CFCC or another body authorised by CFCC and the “terms and conditions” of the licence requires compliance with CFCC logo usage rules and other relevant regulations. 4.4.2.2 The organisation may only use the label on-product for those certified products that meet the eligibility criteria for product labelling as specified by the owner of the logo/label trademark. 4.4.2.3 The organisation which makes on-product claims on the product itself or its packaging (without a logo or label) relating to chain of custody certification shall always use the formal claim and the organisation making the claim shall be identifiable. Note: The term “formal claim” means the claim in its exact wording as specified in Appendix A on specification of the claim or by other document(s) defined by the relevant forest certification or labelling scheme. 5 Requirements for chain of custody process – percentage based method 5.1 General requirements for the percentage based method 5.1.1 Application of the percentage based method The percentage based method of the chain of custody applies to organisations that are mixing certified material/products with other material categories. 5.1.2 Definition of the product group 5.1.2.1 The organisation shall implement the requirements for the chain of custody process of this standard for the specific product group. 5.1.2.2 The product group shall be associated with (i) a single product type or (ii) a group of products, which consist of the same or similar input material according to, for example species, sort, etc. The material entering the group of products shall have 12 the same measurement unit or units that are transferable to the same measurement unit. 5.1.2.3 The product group shall be associated with products which have been produced or manufactured by the organisation at one production site. Note: This requirement is not applicable to organisations and its processes where the production site cannot be clearly identified, e.g. forest contractors, transportation, trade, etc. 5.2 Identification of origin 5.2.1 Identification at delivery level 5.2.1.1 For each delivery of material entering the chain of custody product group the organisation shall obtain from the supplier the information that is necessary to identify and verify the category of origin of the procured material. 5.2.1.2 The document associated with each delivery of material shall include at least the following information: (a) the organisation’s identification as the customer of the delivery, (b) supplier’s identification, (c) product(s) identification, (d) quantity of delivery for each product covered by the documentation, (e) date of delivery / delivery period / accounting period, Note: An example of the delivery documentation is an invoice or delivery note provided that it meets all the requirements of 5.2.1.2, and 5.2.1.3 for certified material/products. 5.2.1.3 In addition to information required by chapter 5.2.1.2, a document associated with each delivery of certified material/products shall include the following information: (a) the formal claim on the material origin (including percentage of certified material) specifically for each certified product covered by the documentation, (b) the identifier of the supplier’s chain of custody or forest management certificate or other document confirming the supplier’s certified status. Note 1: The formal claim, which means the claim in its exact wording, as well as documents confirming the certified status are specified in Appendix A to this Standard or by other document(s) defined by the relevant forest certification or labelling scheme. Note 2: The certificate identifier can be a numerical or alpha-numerical combination and is usually referred to as the “certification number”. 13 5.2.1.4 For each delivery, the organisation shall classify the procured material as certified, neutral or other material following the claim specification for which the chain of custody was implemented. Note: Criteria for certified, neutral and other material for a specific claim are specified in Appendix A on specification of the claim or by other document(s) defined by the relevant forest certification or labelling scheme. 5.2.2 Identification at supplier level 5.2.2.1 The organisation shall require from all suppliers of the certified material, a copy of or access to a copy of the forest management or chain of custody certificate or other document confirming the supplier’s certified status, which proves that the criteria set for the supplier of the certified material have been met. Note: The criteria for the supplier of certified material and documents confirming the supplier’s certified status are specified for each claim in Appendix A on specification of the claim or by other document defined by the relevant forest certification or labelling scheme. 5.2.2.2 The organisation shall evaluate the supplier’s compliance with the criteria for the supplier’s of certified material based on validity and scope of documents received under 5.2.2.1. Note: In addition to the document received from the supplier, the organisation should make use of publicly available registers of suppliers of certified material kept by CFCC or CFCC mutually recognized forest certification schemes or CFCC recognized organizations. 5.3 Calculation of the certification percentage 5.3.1 The organisation shall calculate the certification percentage separately for each product group and for a specific claim period according to the following formula:   100 VV V %    oc c c Pc Certification percentage Vc Volume of certified material Vo Volume of other material Note: In addition to certified and other material, the criteria for specific claims also define neutral material which does not enter into the calculation formula. Therefore, the total volume of the 14 material is the sum of certified material, neutral material and other material. (Vt=Vc+Vo+Vn; where Vt is total volume of material and Vn is volume of neutral material). 5.3.2 The organisation shall calculate the certification percentage based on a single measurement unit used for all raw material covered by the calculation. In cases of conversion to a single measurement unit for calculation purposes, the organisation shall only use generally recognised conversion ratios and methods. If a suitable generally recognised conversion ratio does not exist, the organisation shall define and use a reasonable and credible conversion ratio. 5.3.3 If the procured product includes only a proportion of certified material, then only the quantity corresponding to the percentage claimed by the supplier shall enter the calculation formula as certified material. The rest of material shall enter the calculation as other material. 5.3.4 The organisation shall calculate the certification percentage either as: (a) simple percentage or (b) rolling percentage. 5.3.5 The organisation applying the simple percentage calculation shall calculate the certification percentage based on material physically included in the specific products of the product group for which the percentage is calculated. 5.3.6 The organisation applying rolling percentage shall calculate the certification percentage for the specific product group and claim period based on material procured in the specified material input period preceding the claim period. The claim period, in the case of rolling percentage, shall not exceed 3 months and the material input period shall not exceed 12 months. Example: The organisation which has chosen 3 months claim period and 12 months material input period will calculate the rolling percentage for the coming three months from the quantity of material procured in the previous 12 months. 5.4 Transfer of the calculated percentage to the outputs 5.4.1 Average percentage method The organisation applying average percentage method shall use the calculated certification percentage for all the products covered by the product group for which the calculation has been made. Note: No minimum threshold for the certified percentage is set to use the average percentage method. However, the certified percentage is always a part of the claim delivered to the 15 customer. An individual forest certification or labelling scheme may however determine a minimum threshold for the usage of its label. Example: If the certified percentage calculated for the 3 months claim period is 54 %, all products covered by the product group can, during this claim period, be sold/transferred as certified products including 54 % percent of certified material, e.g. “54 % CFCC Certified”. 5.4.2 Volume credit method 5.4.2.1 The organisation shall apply the volume credit method for a single claim. The organisation receiving a single delivery of material with more than one claim relating to the material origin shall either use it as a single inseparable claim or shall only use one from the received claims for calculating the volume credits. Note: The organisation which is receiving a single delivery of material with two claims relating to two certification schemes (e.g. CFCC and CFCC mutually recognized forest certification scheme) either establishes a credit account for the multiple claim or decides, for a single delivery, which claim will be entered into the respective volume credit account. 5.4.2.2 The organisation shall calculate the volume credits using either: (a) certification percentage and volume of output products (ch. 5.4.2.3) or (b) input material and input/output ratio (ch. 5.4.2.4). 5.4.2.3 The organisation applying the certification percentage shall calculate the volume credits by multiplying the volume of output products of the claim period by the certified percentage for the relevant claim period. Example: If the certified percentage for the product group of the specific claim period, which consists of 100 tonnes of output products, is 54 %, the organisation achieves volume credits equal to 54 tonnes (100*0.54) of the output products. 5.4.2.4 The organisation that can demonstrate a verifiable ratio between the input material and output products, may calculate the volume credits directly from input certified material by multiplying the volume of input certified material by the input/output ratio. Example: If the volume of input certified material is 70 m3 (e.g. 100 m3 with claim “70 % CFCC certified”) and input/output ratio is 0.60 (e.g. 1 m3of roundwood results in 0.60 m3 of sawnwood), the organisation achieves volume credits equal to 42 m3 of sawnwood. 5.4.2.5 The organisation shall create and manage a credit account in a single measurement unit and shall enter the volume credits into the credit account. The credit account shall be established for individual product types of the product group 16 or for the whole product group where the same measurement unit is applied to all product types. 5.4.2.6 The total quantity of credits cumulated at the credit account shall not exceed the sum of credits entered into the credit account during the last twelve months. The twelve months maximum period can be extended to the average products production period where the products production period is longer than twelve months. Example: If the average production period of fuelwood (including drying process) is 18 months, the organisation can extend the 12 months maximum period for the accumulation of credits to 18 months. 5.4.2.7 The organisation shall distribute the volume credits from the credit account for the output products covered by the credit account. The volume credits shall be distributed to the output products in a way that the certified products will be considered as containing 100 % of certified material or as containing less than 100 % certified material and meeting the organisation’s own threshold. The result of the volume of certified products multiplied by the output percentage of certified material included in the certified products shall be equal to the distributed volume credits withdrawn from the credit account. Example: If the organisation decides to distribute 54 tonnes of volume credits to output products, then the organisation can either sell 54 tonnes as certified products including 100 % of certified material (e.g. 54 tonnes as “100 % CFCC Certified”) or x tonnes as certified products including y % of certified material, where x * y = distributed volume credit (e.g. 77 tonnes of output products can be sold as “70 % CFCC Certified”, where 77 t * 0,70 = 54 t). 5.5 Sale and communication on certified products 5.5.1 Documentation associated with sold/transferred products 5.5.1.1 At the point of sale or transfer of the certified products to the customer, the organisation shall provide the customer with a copy or access to a copy of its chain of custody certificate or other document confirming the organisation’s compliance with the criteria for the supplier of certified material. The organisation shall inform the customer about any change in the scope of its certification and shall not misuse its certification. Note: In case of multi-site certification where individual sites receive a separate document (referring to the main certificate) confirming their certified status, the organisation (the site) provides its customers copies of both this document and the main certificate. 5.5.1.2 For the purposes of communication of the chain of custody claim, the organisation shall identify a single type of document associating delivery of all 17 sold/transferred products. This document and the chain of custody claim for a specific claim shall be issued to a single customer. The organisation shall ensure that the document and/or its information cannot be altered after it is delivered to the customer. Note: The document associated to each delivery covers the media and information, including electronic media. 5.5.1.3 The document associated with each delivery of all products covered by the chain of custody shall include at least the following information: (a) customer identification, (b) supplier identification, (c) product(s) identification, (d) quantity of delivery for each product covered by the documentation, (e) date of delivery / delivery period / accounting period, 5.5.1.4 In addition to information required in 5.5.1.3 the document associated with each delivery of certified products shall include the following information: (a) the formal claim on the material origin (including percentage of certified material) specifically for each certified product covered by the document, (b) the identifier number of the supplier’s chain of custody certificate or other document confirming the supplier’s certified status. Note 1: The formal claim, which means the claim in its exact wording, as well as documents confirming the certified status are specified in Appendix A to this Standard or by other document(s) defined by the relevant forest certification or labelling scheme. Note 2: The certificate identifier can be a numerical or alpha-numerical combination and is usually referred to as the “certification number”. 5.5.2 Usage of logos and labels 5.5.2.1 The organisation which uses a logo or label, for on-product and/or off-product purposes, relating to the chain of custody certification, shall have an authorisation from the logo/label’s trademark owner or from the owner’s authorised representative and the usage shall be carried out according to the terms and conditions of the authorisation. Note 1: Where the organisation decides to use the logo/label, the logo/label usage rules specified by the logo/label owner become an integral part of the chain of custody requirements. 18 Note 2: In case of CFCC Logo usage, “authorisation” means a valid licence issued by CFCC or another body authorised by CFCC and the “terms and conditions” of the licence requires compliance with CFCC logo usage rules and other relevant regulations. 5.5.2.2 The organisation can only use the label on-product for those certified products which are meeting eligibility criteria product labelling specified by the owner of the label trademark. 5.6 Controversial sources The organisation shall establish a due diligence system in compliance with Appendix B to this Standard to minimise the risk that certified products include raw material from controversial sources. 6 Minimum management system requirements 6.1 General requirements The organisation shall operate a management system in accordance with the following elements of this standard, which ensure correct implementation, and maintenance of the chain of custody process(es). The management system shall be appropriate to the type, range and volume of work performed. Note: An organisation’s quality (GB/T 19001-2008) or environmental (GB/T 24001-2004) management system can be used to meet the minimum requirements for the management system defined in this standard. 6.2 Responsibilities and authorities 6.2.1 General responsibilities 6.2.1.1 The organisation’s management shall define and document its commitment to implement and maintain the chain of custody requirements in accordance with this standard. The organisation’s commitment shall be made available to the organisation’s personnel, suppliers, customers, and other interested parties. 6.2.1.2 The organisation’s management shall appoint a member of the management who, irrespective of other responsibilities, shall have overall responsibility and authority for the organisation’s chain of custody. 6.2.1.3 The organisation’s management shall carry out a regular periodic review of the organisation’s chain of custody and its compliance with the requirements of this standard. 19 6.2.2 Responsibilities and authorities for chain of custody The organisation shall identify the personnel performing activities for the implementation and maintenance of chain of custody and shall establish personnel responsibilities and authorities relating to chain of custody for at least the following elements: (a) raw material procurement and identification of the origin, (b) product processing covering physical separation or percentage calculation and transfer into output products, (c) product sale and labelling, (d) record keeping, (e) internal audits and non-conformity control, (f) due diligence system relating to controversial sources. Note 1: The responsibilities and authorities for the chain of custody given above can be cumulative. Note 2: If implementing multi-sites chain of custody certification, please see Appendix C. 6.3 Documented procedures The organisation shall establish written documented procedures for its chain of custody. The documented procedures shall include at least the following elements: (a) organisational structure, responsibilities and authorities relating to chain of custody, (b) description of the raw material flow within the production/trading process(es), including definition of product groups, (c) procedures for chain of custody process covering all requirements of this standard, including:  identification of the raw material origin,  physical separation of certified material (for the organisations applying the physical separation),  definition of product groups, calculation of the certified percentage, calculation of volume credits, management of credit accounts (for the organisations applying percentage based methods),  sale/transfer of products, on-products claims and on-product labelling, (d) procedures for the due diligence system relating to controversial sources, as applicable, (e) procedures for internal audits, (f) procedures for complaints resolution. 20 6.4 Record keeping 6.4.1 The organisation shall establish and maintain records on its chain of custody to provide evidence of conformity with the requirements of this standard and its effectiveness and efficiency. The organisation shall keep at least the following records relating to the product groups covered by the chain of custody: (a) records of all suppliers of certified material, including copies of the suppliers’ forest management or chain of custody certificates or other documents confirming the supplier’s compliance with the criteria for suppliers of certified material, (b) records of all input material, including claims on the material origin and documents associated to the delivery of the input material, (c) records of calculation of the certified percentage, transfer of the percentage to output products and management of the credit account, as applicable, (d) records of all products sold/transferred, including claims on the material origin and documents associated to the delivery of the output products, (e) records of the due diligence system relating to controversial sources, including records of self-declarations, risk assessment and high risk supplies management, as applicable, (f) records of internal audits, periodic chain of custody review, non-conformities which occurred and corrective actions taken, (g) records on complaints and their resolution. 6.4.2 The organisation shall maintain the records for a minimum period of five years. Note: The records cover the media and information, including electronic media. 6.5 Resource management 6.5.1 Human resources/personnel The organisation shall ensure and demonstrate that all personnel performing activities affecting the implementation and maintenance of the chain of custody are competent on the basis of appropriate training, education, skills and experience. Note: For social, health and safety requirements in chain of custody, please see Appendix D. 6.5.2 Technical facilities The organisation shall identify, provide and maintain the infrastructure and technical facilities needed for effective implementation and maintenance of the organisation’s chain of custody with the requirements of this standard. 21 6.6 Inspection and control 6.6.1 The organisation shall conduct internal audits at least annually covering all requirements of this standard and establish corrective and preventive measures if required. 6.6.2 A report on the internal audit shall be reviewed at least annually. Note: Guidance for performing internal audits is given in GB/T 19011-2003. 6.7 Complaints 6.7.1 The organisation shall establish procedures for dealing with complaints from suppliers, customers and other parties relating to the organisation’s chain of custody. 6.7.2 Upon receipt of the complaint, the organisation shall: (a) acknowledge the complaint to the complainant, (b) gather and verify all necessary information to evaluate and validate the complaint and make decision on the complaint, (c) formally communicate the decision on the complaint and of the complaint handling process to the complainant, (d) ensure that any appropriate corrective and preventive actions are taken. 6.8 Subcontracting 6.8.1 The organisation’s chain of custody shall also cover activities of sub-contractors involved in the manufacturing of products covered by the organisation’s chain of custody process(es), within or outside the organisation’s site. 6.8.2 The organisation may only consider those activities as subcontracting where the subcontractor receives the material from the organisation which is physically separated from other material and returns the material back to the organisation after the subcontracted work is completed or where the organisation remains responsible for the sale or transfer of the product to the customer. Note 1: An example of subcontracting is outsourcing of cutting and stapling process by a printing house with chain of custody where the printed material is transferred to the subcontractor and returned back to the printing house after the subcontracted activities have been performed. Note 2: An entity which is either involved in procuring the raw material or sale of the output products is required to implement its own chain of custody. The terms “receives the material from the organisation” and “returns the material back to the organisation” also cover situation where 22 the material is received by the subcontractor directly from the supplier on the organisation’s behalf or is sent by the subcontractor to the customer on the organisation’s behalf. The organisation still remains responsible for all parts of the chain of custody, including requirements relating to the material procurement and sale and communication. Note 3: Subcontracting is not considered as being in conflict with chapter 5.1.2.3 that requires the product group to be manufactured at one site. 6.8.3 The organisation shall take full responsibility for the all the subcontracted activities in relation with the organisation’s chain of custody. 6.8.4 The organisation shall have a written agreement with all subcontractors ensuring that the organisation’s material/products are physically separated from other material or products. 6.8.5 The organisation’s internal audit programme shall cover the subcontractor’s activities. 23 Appendix A: Specification of the CFCC claim on “CFCC certified” material Normative A.1 Introduction The specification of this Appendix shall be used together with the requirements of this standard when the organisation establishes a chain of custody to use the CFCC claim on CFCC certified material. A.2 Formal claim The organisation shall use the claim “x % CFCC certified” when communicating the content of CFCC certified material in output products. A.3 Requirements for the origin categories of input material A.3.1 Certified material Certified materials include 2 categories as follows: (a) forest based material which does not originate in genetically modified organisms and is delivered with the supplier’s claim “x % CFCC certified” by the supplier with either:  CFCC recognised certificate or  Certificate by CFCC mutually recognized forest certification schemes or  a document confirming that the supplier is covered by the CFCC recognised certificate or  a document confirming that the supplier is covered by the certificate recognized by CFCC mutually recognized forest certification schemes. (b) recycled material (other than products delivered with the “CFCC certified” claim). Note 1: The policy on the exclusion of material from genetically modified organisms remains in force until 31 December 2015. Note 2: The term “a document confirming that the supplier is covered by the CFCC recognised certificate or by the certificate recognized by CFCC mutually recognized forest certification schemes” is applicable in case of regional or group forest management certification and multi-site (group) chain of custody certification where the supplier is provided with a document 24 referring to the scope of the CFCC recognised certificate or the certificate recognized by CFCC mutually recognized forest certification schemes. A.3.2 Neutral material Other than forest based material. A.3.3 Other material Forest based material other than certified material. A.4 Additional requirements for the usage of the “CFCC certified” claim For products covered by the organisation’s chain of custody which include recycled material, the organisation shall calculate the content of recycled material based on GB/T 24021-2001 and inform about it upon request. 25 Appendix B: CFCC Due Diligence System (DDS) for avoidance of raw material from controversial sources Normative B.1 Scope B.1.1 This appendix provides requirements for the CFCC Due Diligence System which is required to be implemented by all organisations implementing this standard for all input forest based material of those product groups which are covered by the organisation’s chain of custody and for which percentage based method has been applied, with the exception of: (a) certified material/products, (b) recycled material, (c) Non-certified parts in certified material/products, (d) material covered by the supplier’s CFCC DDS certificate which was issued by CFCC notified and accredited certification body. B.1.2 This appendix may also be implemented by organisations without chain of custody for the purposes of third party certification by CFCC notified certification bodies. B.1.3 The organisation shall clearly identify the product groups for which the CFCC DDS is being implemented. B.1.4 The organisation implementing the requirements for the CFCC DDS shall not apply on-product claims relating to the origin of material in non-controversial sources. The organisation may only communicate information on implementation and maintenance of CFCC DDS with respect to specific product groups. B.1.5 The organisation’s CFCC DDS shall be supported by the organisation’s management system meeting requirements of chapter 6 of this standard. B.1.6 The organisation shall implement the CFCC DDS in three steps relating to: (a) supplier’s self-declarations, (b) risk assessment and (c) management of high risk supplies. 26 B.1.7 The organisation procuring raw material originating from threatened and endangered species classified by CITES shall follow all the regulations defined by CITES and other international conventions as well as national legislation. B.1.8 The organisation shall not include any forest based material originating from countries which are covered by UN, or applicable EU or national government sanctions relating to export/import of forest based products. B.1.9 The organisation shall not include any wood based material from genetically modified organisms in the product group covered by the organisation’s CFCC DDS. B.1.10 The organisation shall not include in the product group covered by the organisation’s CFCC DDS any wood based material originating in conversion of forests to other vegetation type, including conversion of primary forests to forest plantations. B.2 Self-declaration of suppliers B.2.1 The organisation shall require from all suppliers of material covered by the scope of the CFCC DDS, a signed self-declaration that the supplied material does not originate from a controversial source with the exemption applying to supplies delivered directly from forest owners of the organisation’s own country where the organisation demonstrates that the country is representing “low” risk based on risk management criteria of the CFCC DDS. B.2.2 The supplier’s self-declaration shall include: (a) a written statement that to the best of the supplier’s knowledge the supplied material does not originate from controversial sources, (b) a written commitment to provide information on the geographical origin (country / region) of the supplied raw material which is necessary information for the organisation’s risk assessment, (c) a written commitment that, in the case where the supplier’s supplies are considered as “high” risk, the supplier will provide the organisation with necessary information to identify the forest management unit(s) of the raw material and the whole supply chain relating to the “high” risk supply. (d) a written commitment, where the supplier’s supplies are considered as “high” risk, the supplier will enable the organisation to carry out a second party or a third party inspection of the supplier’s operation as well as operations of the previous suppliers in the chain. Note: The term “country/region” used throughout this appendix refers to the country/region of forest where the raw material was harvested. The term “region” used throughout this appendix refers to a sub-national level. 27 B.2.3 Where the organisation has signed contracts with its suppliers, the requirements of chapter B.2.2 shall be covered by the contract documentation. B.3 Risk assessment B.3.1 The organisation shall carry out the risk assessment of procuring raw material from controversial sources for all input material of the product group(s) covered by the scope of the CFCC DDS. B.3.2 The organisation’s risk assessment shall result in the classification of supplies into the “low” or “high” risk category. B.3.3 The organisation’s risk assessment shall be carried out based on an evaluation of: (a) the likelihood that activities defined under the term controversial sources occur in the country / region of the supply (hereinafter referred to as the likelihood at country / region level) and; (b) the likelihood that the supply chain has not been able to identify a potential controversial source of supply (hereinafter referred to as the likelihood at the supply chain level). B.3.4 The organisation shall determine the risk, based on the combination of the likelihood at country / region level and the likelihood at the supply chain level in order to classify all supplies as “high” risk where both the likelihood at the country / region level and the likelihood at the supply chain are assessed as “high” (See Diagram B.1). Diagram B.1: Determination of “high” risk supplies by combination of likelihood at country / region level and supply chain level 28 B.3.5 The organisation shall classify the likelihood at country / region level as “high” for all supplies where any of the following indicators in Table B.1 apply. Table B.1: List of indicators for “high” likelihood at country / region level Indicators Examples of external reference sources The actual corruption perception index (CPI) of the country presented by international organizations recognized by the Chinese Government. On the provision of sufficient evidence that the CPI does not reflect the level of corruption in the forest based sector in a specific country, CFCC may make a different determination for this indicator. The country / region is known as a country with low level of forest governance and law enforcement. In defining this indicator, the organisation can use its internal surveys or results of surveys of external governmental or non-governmental organisations active in monitoring forest governance and law enforcement and corruption. The organisation has received comments supported by reliable evidence from their customers or other external parties, relating to its supplies with respect to controversial sources, which have not been disproved by the organisation’s own investigation. B.3.6 The organisation shall classify as “high” the likelihood at the supply chain level for all supplies where none of the indicators in Table B.2 (below) apply. Table B.2: List of indicators for “low” likelihood at supply chain level Indicators Evidence and / or reference to external sources Supplies declared as certified against a forest certification scheme (other than CFCC and CFCC mutually recognized forest certification schemes) supported by a forest management or chain of custody certificate issued by a third party certification body. The organisation shall be able to provide evidence that the certification scheme includes: (a) third party certification of forest management which covers activities defined by the term controversial sources, (b) third party certification of chain of custody and, (c) a verification mechanism that non-certified raw material does not originate from controversial sources where percentage based claims apply. 29 Supplies verified by governmental or non-governmental verification or licensing mechanisms other than forest certification schemes focused on activities covered by the term controversial sources. The organisation shall be able to provide evidence on the scope of the verification or licensing mechanism. Supplies supported by verifiable documentation which clearly identifies all suppliers within the supply chain, forest management unit of the supply origin and provides sufficient evidence on compliance with legal requirements. Evidence on compliance with legal requirements can be a statement from the law enforcement authority on legal compliance or absence of non-compliance, harvest permit issued or forest management plan approved by the relevant law enforcement authority. B.4 Management of high risk supplies B.4.1 General The organisation shall establish a second or third party verification programme for supplies classified as “high” risk. The verification programme shall cover: (a) identification of the whole supply chain and forest management unit(s) of the supply’s origin; (b) on-site inspection and (c) corrective and preventive measures. B.4.2 Identification of the supply chain The organisation shall require, from all suppliers of “high” risk supplies, detailed information on the whole supply chain and forest management unit(s) of the supply’s origin. The information submitted shall allow the organisation to plan and execute on-site inspections. B.4.3 On-site inspections B.4.3.1 The organisation’s verification programme shall include on-site inspections of suppliers delivering “high risk” supplies. The on-site inspections can be carried out by the organisation itself (second party inspection) or by a third party on behalf of the organisation. The organisation may substitute the on-site inspection with documentation review where the documentation provides sufficient confidence in the material origin in non-controversial sources. 30 B.4.3.2 The organisation shall demonstrate that it has sufficient knowledge and competence in the legislation applicable to the origin of “high” risk supplies and relevant to the definition of the controversial source. Note: Where the on-site inspection is carried out by a third party on behalf of the organisation, the organisation shall demonstrate that the third party has sufficient knowledge and competence in the legislation as required by chapter B.4.3.2. B.4.3.3 The organisation shall determine a sample of high risk supplies to be verified by the verification programme. The size of the sample shall be at least the square root of the number of “high” risk supplies: (y=√x), rounded to the nearest whole number and the sample shall include all suppliers of the high risk supplies. Where the previous on-site inspections proved to be effective in fulfilling the objective of this document, the size of the sample may be reduced by a factor of 0.8, i.e.: (y=0.8 √x), rounded up to the next whole number. B.4.3.4 The on-site inspections shall cover: (a) the direct supplier and all previous suppliers in the supply chain in order to assess compliance with the supplier claims on the origin of the raw material and; (b) the forest owner / manager of the forest management unit of the supply origin or any other party responsible for management activities on that forest management unit in order to assess their compliance with legal requirements. B.4.4 Corrective and preventive measures B.4.4.1 The organisation shall define written procedures for implementing corrective measures for non-compliance for suppliers identified by the organisation’s verification programme. B.4.4.2 The range of corrective measures shall be based on the scale and seriousness of the non-compliance and should include the following: (a) communication of the non-compliance with a request for improvements; (b) requiring suppliers to define corrective measures relating to forest management unit’s compliance with legal requirements or efficiency of the information flow in the supply chain; (c) cancellation of use of the supplier’s supplies. B.4.4.3 The organisation shall cancel the supply from those suppliers which have not provided a self-declaration as required by chapter B.2 or have not provided information on the supply chain as required by chapter B.2.2. 31 Appendix C: Implementation of the chain of custody standard by multi-sites organisations Normative C.1 Introduction The aim of this appendix is to establish guidance for the implementation of the chain of custody requirements in an organisation with a network of sites, thus ensuring on the one hand, that the certification of the chain of custody is practical and feasible in economic and operative terms and on the other, that the assessment provides adequate confidence in the conformity of the chain of custody. Certification of multi-sites organisations also allows implementation and certification of the chain of custody in a group of typically small independent companies. This appendix only includes requirements for implementation the chain of custody requirements which are applicable to the organisations with multiple production locations. C.2 Definitions C.2.1 The multi-sites organisation is defined as an organisation having an identified central function (normally, and hereafter referred to as a “central office”) at which certain activities are planned, controlled and managed and a network of local offices or branches (sites) at which such activities are fully or partially carried out. C.2.2 The multi-sites organisation does not need to be a unique entity, but all sites shall have a legal or contractual link with the central office and be subject to a common chain of custody which is subject to continuous surveillance by the central office. This means that the central office has the right to implement corrective actions when needed at any site. Where applicable, this should be laid down in the contract between the central office and the sites. C.2.3 The multi-sites organisation may cover: (a) organisations operating with franchises or companies with multiple branches where the sites are linked through a common ownership, management or other organisational link and (b) groups of independent legal enterprises established and functioning for the purposes of the chain of custody certification (producer group). 32 Note: Membership in an association is not covered by the term “management or other organisational link”. C.2.4 The producer group means a network of typically small independent enterprises which have associated together for the purpose of obtaining and maintaining chain of custody certification. The central office may be an appropriate trade association, or any other properly experienced legal entity that is either nominated for the purpose by a group of intending members or offers a group service managed for the purposes of and consistently with this standard. The central office can also be administered by one member of the group. Note: The central office in the case of the producer group can be called the “group entity” and sites can be called “group members”. C.2.5 A site means location on which activities relating to the organisation’s chain of custody are carried out. C.2.6 The producer group is limited to participation of sites which are domiciled in a single country and which: (a) have no more than 50 employees (full time employees equivalent), and (b) have a turnover of maximum of 60,000,000 RMB. C.2.7 Additional criteria set for the producer group set up by the relevant accreditation body shall be applied. C.3 Eligibility criteria for the multi-sites organisation C.3.1 General C.3.1.1 The organisation’s chain of custody shall be centrally administered and be subject to central review. All the relevant sites (including the central administration function) shall be subject to the organisation’s internal audit program and shall have been audited in accordance with that program prior to the certification body starting its assessment. C.3.1.2 It shall be demonstrated that the central office of the organisation has established a chain of custody in accordance with this standard and that the whole organisation (including all the sites) meets the requirements of this standard. C.3.1.3 The organisation shall be able to demonstrate its ability to collect and analyse data from all sites including the central office authority and its ability to initiate changes in the chain of custody operating in the sites if required. 33 C.3.2 Function and responsibilities of the central office C.3.2.1 The central office shall: (a) represent the multi-sites organisation in the certification process, including communication and relationship with the certification body, (b) submit an application for the certification and its scope, including a list of participating sites, (c) ensure contractual relationship with the certification body, (d) submit to the certification body a request for extension or reduction of the certification scope, including coverage of participating sites, (e) provide a commitment on behalf of the whole organisation to establish and maintain a chain of custody in accordance with the requirements of this standard, (f) provide all the sites with information and guidance needed for effective implementation and maintenance of the chain of custody in accordance with this standard; The central office shall provide the sites with the following information or access to the following information:  a copy of this standard and any guidance relating to the implementation of the requirements of this standard,  Relevant documents of forest certification logo usage rules and guidelines for implementing them,  a central office’s procedures for the management of the multi-sites organisation,  conditions of the contract with the certification body relating to the rights of the certification body or accreditation body to access the sites’ documentation and installations for the purposes of evaluation and surveillance, and disclosure of information about the sites to a third party,  explanation of the principle of the mutual responsibility of sites in the multi-sites certification.  results of the internal audit programme and the certification body’s evaluation and surveillance and relating corrective and preventive measures applicable to individual sites,  the multi-sites certificate and any of its parts relating to the scope of the certification and coverage of sites. Note: The term “mutual responsibility” means that non-conformities found in one site or the central office may result in corrective actions to be preformed at all sites; an increase in internal audits or withdrawal of the multi-sites certificate. (g) provide organisational or contractual connection with all the sites, which shall include commitments by the sites to implement and maintain the chain of custody in accordance with this standard. The central office shall have a written contract or other written agreement with all the sites which covers the 34 right of the central office to implement and enforce any corrective or preventive measures and to initiate the exclusion of any site from the scope of certification in case of nonconformities with this standard, (h) establish written procedures for the management of the multi-sites organisation, (i) keep records relating to the central office and sites compliance with the requirements of this standard, (j) operate an internal audit programme. The internal audit programme shall provide for:  on-site audit of all the sites (including its own central administration function) prior to certification body starting its evaluation,  on-site annual audits of all the sites covered by the certification scope (including its own central administration function),  on-site audit of any new site prior the certification body starting the process of the certification scope extension, (k) operate a review of the central office and sites conformity, including review of results of the internal audits programme and certification body’s evaluations and surveillance; shall establish corrective and preventive measures if required; and shall evaluate the effectiveness of corrective actions taken. C.3.2.2 Function and responsibilities of sites Sites connected to the multi-sites organisation shall be responsible for: (a) implementation and maintenance of the chain of custody requirements in accordance with this standard, (b) entering into contractual relationship with the central office, including commitment on the compliance with the chain of custody requirements and other applicable certification requirements, (c) responding effectively to all requests from the central office or certification body for relevant data, documentation or other information whether in connection with formal audits or reviews or otherwise, (d) providing full co-operation and assistance in respect of the satisfactory completion of internal audits performed by the central office and audits performed by the certification body, including access to the sites installations, (e) implementation of relevant corrective and preventive actions established by the central office. C.4 Scope of responsibilities for requirements of this standard implemented in the multi-sites organisation Scope of responsibilities for requirements of this standard implemented in the multi-sites organisation can be referred in Table C.1. 35 Table C.1 Scope of responsibilities for requirements of this standard implemented in the multi-sites organisation Standard requirements Central office Site 4 Requirements for chain of custody process – physical separation method Yes 5 Requirements for chain of custody process – percentage based method Yes 6 Minimum management system requirements 6.2 Responsibilities and authorities Yes Yes 6.2.1 General responsibilities Yes Yes 6.2.2 Responsibilities and authorities for chain of custody Yes (for 6.2.2 d and e) Yes 6.3 Documented procedures Yes (for 6.3 a, e and f) Yes 6.4 Record keeping Yes (for 6.4 f and g) Yes 6.5 Resource management Yes (only for activities provided) Yes 6.5.1 Human resources / personnel 6.5.2 Technical facilities 6.6 Inspection and control Yes Yes 6.7 Complaints Yes Yes 36 Appendix D: Social, health and safety requirements in chain of custody Normative D.1 Scope This Appendix includes requirements relating to health, safety and labour issues that are based on the Labor Law of People’s Republic of China, the Worker’s Union Law of the People’s Republic of China, and ILO Declaration on Fundamental Principles and Rights at Work (1998) to which China is a signatory. D.2 Requirements D.2.1 The organisation shall have a documented policy that includes the organisation’s commitment to implement and comply with the social, health and safety requirements defined in this standard. D.2.2 The organisation shall demonstrate that it: (a) workers are not prevented from associating freely, choosing their representatives, and bargaining collectively with their employer according to relevant laws, (b) forced labour is not used, (c) workers, who are under the minimum legal age of 16, (d) workers are not denied equal employment opportunities and treatment, (e) working conditions do not endanger safety or health.