OPERATION HANDBOOK FOR RSPO Supply chain ...

R

OPERATION HANDBOOK FOR RSPO SUPPLY CHAIN CERTIFICATE

Standard: Adopted by the RSPO Board of Governors on 21 Nov, 2014 and revised on 14 June 2017

DOCUMENTED PROCEDURE IN COMPLIANCE WITH ALL ELEMENTS

OF RSPO SCC REQUIREMENTS

Ecochem Oleochemicals Limited, the Central Office, shall have complete and up to date procedures

covering the implementation of all the elements of the supply chain model requirement. The Central

Office shall also have complete and up to date records and reports that demonstrate compliance

with the supply chain model requirements (including training records). The procedures shall be

applicable to all the operational sites.

ROLE IDENTIFICATION

Ivan Y C Lee, the Business Manager, of ECOCHEM OLEOCHEMICALS LTD will be the person having

overall responsibility for and authority over the implementation of these requirements and

compliance with all applicable requirements. He is able to demonstrate awareness of the

organization’s procedure for the implementation of this standard.

Following representatives are being appointed by particular site in charge of the implementation of

the requirements:

Site Person In Charge

Ecochem Oleochemicals Ltd Janet Tsui

Palmedia (M) Sdn Bhd Ivan Lee

Johann Freight (M) Sdn Bhd Jenn

IMPLEMENTATING DOCUMENTS

In accordance with the RSPO Supply Chain Certificate requirements, following documents with

written procedures, guidelines and/or work instruction will be conducted in all sites to ensure the

implementation all elements of the applicable supply chain model specified.

Should there be any revision of RSPO Supply Chain Certificate requirement, the Central Office shall

take immediate action to revise the relevant documents/procedure/instruction accordingly and

advise the other sites simultaneously.

2 Doc. RSPO/SCC/HB Release 2.01 updated on 02th July, 2017

Document

Code

Release

No.

Description Latest

updated

Approved

by

RSPO/SCC/HB 2.01 Documentation Guideline Of Sales And

Purchases Of RSPO Material/Products

02-07-2017 Ivan Lee

RSPO/SCC/HB 2.01 Documented Procedure In Compliance

with all elements of RSPO SCC

Requirements

02-07-2017 Ivan Lee

RSPO/SCC/HB 2.01 Mechanism For Handling Of Non-

Conforming Materials/Documents/Sites

02-07-2017 Ivan Lee

RSPO/SCC/HB 2.01 Non-Conformance Report With

Preventive And Corrective Actions

02-07-2017 Ivan Lee

RSPO/SCC/HB 2.01 Guidelines And Requirements Of

Record Keeping

02-07-2017 Ivan Lee

RSPO/SCC/HB 2.01 Guideline Of Handling RSPO Material/

Products By Outsourced Third Party

02-07-2017 Ivan Lee

RSPO/SCC/HB 2.01 Guideline In Handling The Complaints

Under RSPO Supply Chain

02-07-2017 Ivan Lee

RSPO/SCC/HB 2.01 Determining Conversion Factor In RSPO

Supply Chain

02-07-2017 Ivan Lee

RSPO/SCC/HB 2.01 Guideline In Internal Compliance Audit

And Management Overview

02-07-2017 Ivan Lee

RSPO/SCC/HB 2.01 Guideline Of RSPO Trademark And Logo

Claims

02-07-2017 Ivan Lee

RSPO SUPPLY CHAIN CERTIFCIATION STANDARD COMPLIANCE

VERISON:

Adopted by the RSPO Board of Governors on 21 November 2014, revised on 14 June 2017

Document Code: RSPO-STD-T05-001 v.1.1 ENG

Date of implementation:

The above updated version of RSPO Supply Chain Certification Standard will be fully implemented

by the organization on 1st Sept, 2017.


UNDERSTANDING OF RSPO SUPPLY CHAIN REQUIREMENTS

SUPPLY CHAIN MODELS:

A) Identity Preserved (IP)

- The sites must ensure that the RSPO IP oil palm product is kept physically isolated from all

other palm oil sources and is uniquely identifiable to a single RSPO certified mill and its

certified supply base.

- The site shall assure and verify through documented procedures and record keeping that

the RSPO certified oil palm product is kept separate from non-certified material and

material from other certified mills, including during transport and storage.

B) Segregation (SG)

- The Segregation approach requires that the RSPO certified oil palm products from certified

estates/plantations is kept separate from material from non-RSPO certified

estates/plantations at every stage of production, processing, refining and manufacturing

throughout the supply chain. This model does allow for the mixing of RSPO certified palm

oil and its derivatives from various sources. Therefore, the physical oil delivered to the end

user will not be fully traceable to the specific mill and its supply base.

- The site shall assure and verify through clear procedures and record keeping that the RSPO

certified oil palm product is kept segregated from non-certified material including during

transport and storage.

C) Mass balance (MB)

- The basis of the supply chain requirements for Mass balance will consist of reconciliation

between the quantity of RSPO material bought and the quantity of RSPO material sold. This

includes control of purchases and sales of RSPO certified palm oil and its derivatives which

will be independently verified. There are no requirements for separate storing or controls

in the production process.


- The site shall ensure that the quantity of physical RSPO mass balance material inputs and

outputs (volume and weight) at the physical site are monitored.

- The site shall ensure that the output of RSPO mass balance material supplied to customers

from the physical site does not exceed the input of RSPO certified material received at the

physical site, using either a continuous accounting system or affixed inventory period.

SUPPLY CHAIN DEGRADING

The sites can only use the same supply chain model as its supplier or go to a less strict system.

Declassification/downgrading can only be done in the following order:

Identity Preserved -> Segregation - > Mass Balance.


DOCUMENTATION GUIDELINE OF SALES AND PURCHASES OF

RSPO CERTIFIED MATERIALS/PRODUCTS

1. INTRODUCTION The core business of the group is the trading of palm oil and its downstream derivatives

such as oleochemical products from Malaysia and Indonesia. It is being operated at two

sites which are

- Ecochem Oleochemical Limited, the Central Office, located at Rm 602, 6/F., Lu Plaza,

2 Wing Yip Street, Kwun Tong, Kowloon, Hong Kong

(herein after called “ECOCHEM”)

&

- Palmedia (M) Sdn Bhd located at No. 3, Lengkuk Gerudi, Off Jalan Pelabuhan Klang

Utara, 42000 Port Klang, Selangor, Malaysia

(herein after called “PALMEDIA”)

Basically, the operation could be divided into two modules:

a) Module I: Cargo ex-Malaysian seaport

- Once the sales of the RSPO certified materials has been established, Palmedia, the

regional operational unit, shall issue contractual agreements such as sales contract

(S/C) and purchase order (P/O) to the customers and the RSPO certified material

vendors respectively. PMSB shall send the copy of the sales contract and purchase

order to Ecochem Oleochemicals Limited, the Central Office, to report the

transactions simultaneously.

- Cargoes would be either loaded in the Vendor’s site or the outsourced warehouse

who complies with the requirements of the RSPO Supply Chain Certificate Standard.

- The arrangement shall be operated under the Exporting Agency Agreement

between Ecochem and Palmedia


Documentation flow of Module I as illustrated below:

S/C Send S/C and P/O copy P/O

PMSB - Palmedia (M) Sdn Bhd

EOL - Ecochem Oleochemicals Ltd

b) Module II: Cargo ex-Indonesian seaport.

- Once the sales of the RSPO certified materials has been established, Ecochem, the

Central Office, shall issue contractual agreements such as sales contract (S/C) and

purchase order (P/O) to the customers and the RSPO certified material vendors

respectively.

- For those trades which are required to be announced and confirmed in the RSPO IT

platform, this shall include making Shipping Announcements and Shipping Confirmation

on the RSPO IT platform on the level of each shipment.

- Documentation flow of Module I as illustrated below:

S/C P/O EOL- Ecochem Oleochemicals Ltd

EOL

Customers

PMSB

RSPO Material

Vendors

Customers

EOL

RSPO Material

Vendors


2. DOCUMENTTION - All the documentation will be centrally prepared and generated from one ERP system,

an Internal Control System (ICS), which is maintained with the Central Office.

- Specific codes will be assigned to all RSPO certified products in order to differentiate

from the other non-RSPO products.

2.1 PUCHASING AND GOODS-IN

a) The site shall have documentation that demonstrates that purchases are made to

the material category agreed with their supplier

b) The site receiving RSPO certified oil palm products shall ensure that the products

are verified as being RSPO certified. The Central Office would need to announce

and confirm trades in the RSPO IT platform, this shall include making shipping

Announcement/Announcement and Confirmation on the RSPO IT platform per

shipment or group of shipments

c) In prior to issue the purchase order to the RSPO certified material vendor, Ecochem

should check the validity of the Supply Chain Certificate of the Vendor via the RSPO

website (www.rspo.org) or through the RSPO IT Platform by confirmation of

shipping announcement to ensure the holding certificate is not expired at least

annually.

d) Following minimum information for the purchase of RSPO certified oil palm

products must be made available by the supplier in document form. Information

must be complete and can be presented either on single document or across a

range of documents issued for RSPO certified oil palm product:

- The name and address of the buyer

- The name and address of the seller

- The loading or delivery date

- The date on which the documents were issued

- A description of the product, including the applicable supply chain model (Identity

preserved Segregated or Mass Balance or the approved abbreviations)

- The quantity of the products delivered

- Any related transport documentation


http://www.rspo.org/

- Supply chain certificate number

- A unique identification/reference number

2.2 SALES AND GOODS OUT

a) Following information shall be clearly stated and found in a range of documents

which are including the sales contracts, purchase orders, shipping documents,

packing list, invoices and relevant documents:

- The name and address of the buyer

- The name and address of the seller

- The loading or delivery date

- The date on which the documents were issued

- A description of the product, including the applicable supply chain model (Identity

preserved Segregated or Mass Balance or the approved abbreviations)

- The quantity of the products delivered

- Any related transport documentation

- Supply chain certificate number

- A unique identification/reference number

3. SUPPLY CHAIN MODELS

3.1 Understanding for RSPO Supply Chain requirements:

a) Identity Preserved (IP)

- The sites must ensure that the RSPO IP oil palm product is kept physically isolated

from all other palm oil sources and is uniquely identifiable to a single RSPO certified mill

and its certified supply base.

- The site shall assure and verify through documented procedures and record keeping

that the RSPO certified oil palm product is kept separate from non-certified material and


b) Segregation (SG)

- The Segregation approach requires that the RSPO certified oil palm products from

certified estates/plantations is kept separate from material from non-RSPO certified









c) Mass balance (MB)











3.2 SUPPLY CHAIN DEGRADING

The sites can only use the same supply chain model as its supplier or go to a less strict

system. Declassification/downgrading can only be done in the following order:

Identity Preserved -> Segregation - > Mass Balance.

The site can use one or a combination of supply chain models as audited and certified by

the CB.

4. REGISTRATION OF TRANSACTIONS

4.1 The Central Office shall register their transaction in the RSPO IT platform and confirm

upon receipt where applicable for those RSPO Certified Sustainable oil palm products that

are available in the yield scheme of the RSPO IT Platform.


4.2 Actions to be taken in the RSPO IT platform

a) Shipping Announcement/Announcement:

- When RSPO certified volume is sold as certified, the volumes of products that are in the

yield scheme shall be registered as a Shipping Announcement/Announcement in the

RSPO IT Platform. The declaration time to do Shipping announcement / Announcements

based on members’ own standard operating procedures

b) Trace:

- When RSPO certified volumes are sold as RSPO certified to actors in the supply chain

beyond the refinery, the volume shall be traced at least annually. Tracing triggers the

generation of the trace document with a unique traceability number. Tracing can be

done in a consolidated way at least annually

c) Remove:

- RSPO certified volumes sold under other scheme or as conventional, or in case of

underproduction, loss or damage shall be removed

d) Confirm:

- Acknowledge the purchase of RSPO certified volume by confirming Shipping

Announcements / Announcements


GUIDELINE OF HANDLING RSPO CERTIFIED MATERIALS/ PRODUCTS

VIA OUTSOURCED THIRD PARTY

OUTSOUCED WAREHOUSING

For those purchase of the RSPO cert i f ied products which are not direct ly

exported from the production site of the Vendor but delivered and stored in

the warehouse of Johann Freight Sdn Bhd (herein after called “JOHANN”), the

outsourced subcontractor, who is located at 59, JALAN SG PINANG 4/6, TAMAN

PERINDUSTRIAN PULAU LNDAH, 42900 POPRT KLANG, SELANGOR

a) PALMEDIA shall liaise with JOHANN and the Vendor to arrange the delivery of the RSPO

certified products.

b) PALMEDIA shall advise JOHANN for the specific codes assigned for RSPO certified

products to ensure the cargo will be separated from other non-RSPO products.

c) PALMEDIA shall check the warehouse receipt issued by JOHANN to confirm the quantity

and the stocked products are in line with our internal records.

d) PALMEDIA shall check the monthly stock report issued by JOHANN to confirm the

quantity of the balance stock is in line with our internal records.

e) Other terms and conditions are referring to the Warehouse Storage Agreement

between PALMEDIA and JOHANN dated 2nd July, 2016

f) PLAMEDIA shall ensure that JOHANN, the independent third party, complies with the

requirement of the RSPO Supply Chain Certificate Standard

HANDLING OF RSPO MATERIALS/PRODUCTS BY SUPPLY CHAIN MODEL

Understanding for RSPO Supply Chain requirements:


a) Identity Preserved (IP)

- The sites must ensure that the RSPO IP oil palm product is kept physically isolated

from all other palm oil sources and is uniquely identifiable to a single RSPO certified mill

and its certified supply base.

- The site shall assure and verify through documented procedures and record keeping

that the RSPO certified oil palm product is kept separate from non-certified material and


b) Segregation (SG)

- The Segregation approach requires that the RSPO certified oil palm products from

certified estates/plantations is kept separate from material from non-RSPO certified








c) Mass balance (MB)












GUIDELINE OF RSPO TRADEMARK AND LOGO CLAIMS

TRADEMARK AND LOGO CLAIMS

- The Central Office shall only make claims regarding the use of or support of RSPO certified oil

palm products that are according to the RSPO Rules on Market Communications an & Claims.

- The Internal Control System in the Central Office shall responsible for ensuring that all uses of

the RSPO trademark and logo and all RSPO claims regarding the end product are in accordance

with RSPO requirements through its central control point. RSPO RULES ON MARKET COMMUNICATIONS AND CLAIMS

1) The rules contained in this document are designed to safeguard the reputation of RSPO and

the credibility of the RSPO trademark and RSPO claims and to promote the production and use

of certified sustainable palm oil (CSPO)

- RSPO members wishing to use the RSPO trademark must hold a trademark license from RSPO.

This will be granted on acceptance as a member. Existing members can apply separately. A

unique identification number shall be issued to be used in conjunction with the RSPO trademark.

A list of unique numbers issued to RSPO members will be available on the RSPO website

(www.rspo.org).

- RSPO retailer members who are not certified but want to use the RSPO trademark must hold a

trademark license or use the license of the end product manufacturer for on-product

communications.

- RSPO members shall avoid negative claims and seek to promote, and not to denigrate the aims

and goals of RSPO, namely the production and use of certified sustainable palm oil (CSPO).

2) Claims that abide by all of the relevant rules in this document will be deemed to be ‘authorized’.

Any claim using the name ‘Roundtable on Sustainable Palm Oil’, the letters ‘RSPO’ and/or the

RSPO trademark, which does not comply with the relevant rules, will be treated as ‘unauthorized’.

The RSPO reserves the right to publish any case of unauthorized communication, to request the

offending member to comply with these rules, to make amends and/or to take legal action

against any member that engages in unauthorized claims. RSPO reserves the right to introduce

or amend a formal claims approval basis as required.



3) There are 2 out of the 3 core areas of communication to be involved in the operation:

3.1 General corporate communication: for RSPO members wishing to confirm their status as

members and their support of the RSPO’s aims and principles.

3.1.1 A corporate communication is one made by any RSPO member that highlights its

membership of RSPO and/or its commitment to the principles of RSPO. Corporate

communication is an ‘off-product’ claim.

3.1.2 In corporate communications a member is allowed to:

a) display its RSPO membership status

b) display the RSPO web address (www.rspo.org)

c) state that the member supports the work of the RSPO

d) state the member’s history with regards to the RSPO

e) use the RSPO trademark to promote its membership of the RSPO.

Additionally, where an RSPO member displays the RSPO trademark in digital format this must

be accompanied by the text ‘Check our progress at www.rspo.org’ where the link must lead to

the member’s profile page.

3.1.3 In corporate communications RSPO members must not make any statement that may

lead consumers to believe that RSPO membership by itself implies the selling of RSPO certified

oil palm products.

3.1.4 Members must ensure that all communication is consistent, clear and cannot mislead

consumers or other stakeholders as to the certified content of oil palm products in the

member’s own products.

3.1.5 Members are not allowed to use the RSPO logo as shown below. This is for the

sole use of the RSPO secretariat.

3.2) Business to business communication: where an RSPO member in the supply chain

communicates to other organizations in the supply chain about either the presence of certified

oil palm products in its products, or that its products support the production of sustainable palm

oil.


3.2.1. Business to business communication relates to RSPO members in the supply chain selling

to and/or communicating with other organizations in the supply chain about the use of certified

sustainable palm oil (CSPO).

3.2.2 When confirming the sale of certified oil palm products, members must adhere to the

requirements of the RSPO Supply Chain Certification Standard (SCCS). This includes stating the

supply chain model and certificate number under which the claim is being made.

3.2.3 A certified member can provide information to its customers detailing the presence of

certified palm oil contained within a product even if it is not eligible for a certified claim under

RSPO rules. The end product must not be labelled as certified or sold in such a way that implies

RSPO certification.

4) Specific rules under different supply chain module:

Module A - Identify Preserved and Segregated

When an RSPO member makes a product specific claim that a product is either Identity

Preserved (IP) or Segregated (SG) certified, the following conditions must be met

.

a) Certified oil palm content

- For IP, 95% or above of the oil palm content must be RSPO IP certified.

- For SG, 95% or above of the oil palm content must be SG, or a combination of SG and IP.

- Where there is any percentage of non-certified oil palm within the product, the reason for this

must be fully justified and an action plan for moving to fully certified oil palm must be in place,

in accordance with the requirements of the RSPO Supply Chain Certification Standard (SCCS). In

addition, the volume of non-certified oil palm products must be covered by the purchase of Book

and Claim certificates of equivalent volume.

b) Labelling and trademark

- Members are allowed to use the RSPO label in one of the following ways:

i) RSPO trademark which includes the tag “CERTIFIED” (option 1) OR

ii) RSPO trademark which includes the tag ‘This product contains certified sustainable palm

oil’ (option 2).


- Wherever an RSPO trademark is displayed, the applicable trademark license number must

be shown immediately under or next to the trademark or the ‘statement’. Font must be

Calibri, font size must at least 4pt (1.4 mm or 0.06 inch).

- In on-pack communications, the RSPO trademark can be printed anywhere on the pack.

c) Messaging

Messaging ALLOWED in storytelling in product-related communications may include some or

all of the following elements:

– The oil palm products contained in this product have been certified to come from RSPO sources.

www.rspo.org

– By choosing this product, you are sure it contains RSPO certified palm oil. For more information:

www.rspo.org

– RSPO-certified sustainable oil palm products were kept apart from other oil palm products

throughout the supply chain. www.rspo.org

– Certified sustainable oil palm products can be traced back to RSPO certified mills and plantations.

www.rspo.org

– The entire supply chain is monitored by independent, RSPO accredited auditors. www.rspo.org

– RSPO certified sustainable palm oil has been produced to stringent environmental and social

criteria. www.rspo.org

– References to (or images of) particular RSPO-certified production units, if the relationship to

those units can be shown by company records

Module B - Identify Preserved and Segregated

For a member to make a claim that a product is Mass Balance (MB) certified, the following conditions

must be met.





a) Minimum mass balance content

- 95% or above of the oil palm content must be RSPO MB certified.

- Where there is any percentage of non-certified oil palm within the product, the reason for this

must be fully justified and an action plan for moving to fully certified oil palm must be in place, in

accordance with the requirements of the RSPO Supply Chain Certification Standard (SCCS). In

addition, the non-certified volume must be covered by the purchase of Book and Claim certificates

to an equivalent volume.

b) Labelling and trademark

Members are allowed to use the RSPO label in one of the following ways:

– Surrounded by the text: “Certified sustainable palm oil” (option 1).

– The RSPO label MUST contain the tag ‘MIXED’. The tag MIXED designates oil palm products

sourced under the Mass Balance (MB) supply chain system, which administratively balances inputs

and outputs of certain palm oil volumes. The tag ‘MIXED’ on a product does not guarantee that the

product itself contains the certified material; some or all of it may reside in a product that does not

carry a claim.

– The RSPO label can also include the statement: ‘[The palm oil contained in this product]

contributes to the production of certified sustainable palm oil’ (option 2).

Wherever the RSPO trademark is displayed, the applicable trademark license number must

be shown immediately under or next to the trademark or the statement. Font must be

Calibri, font size must at least 1.4 pt (4 mm or 0.06 inch).

In on-pack communications, the RSPO trademark can be printed anywhere on the pack.

c) Messaging

Messaging ALLOWED in storytelling in product-related communications includes:

- [Oil palm products]/[palm oil]/[palm kernel oil] from RSPO-certified mills and plantations were

mixed with non-certified oil palm products in the supply chain.


- The volume of [oil palm products][palm oil]/[palm kernel oil] in this product reflects an

equivalent volume of palm oil or palm kernel oil produced by RSPO-certified mills

plantations.

In off-product communications, reference to (or images of) particular RSPO certified production

units, if the relationship to those units can be shown in company records is allowed.

Messaging NOT ALLOWED in storytelling in product-related communications:

- Anything that can lead consumers to believe that RSPO-certified palm products are (certified to be)

part of the product.

Module C: Partial Product Claims

To increase awareness among consumers of the availability of certified sustainable oil palm products

and to help accelerate the uptake of CSPO it is permissible to make a claim on product when the

percentage of the oil palm content is less than 95% certified, but only when the following conditions

have been met:

- The member making the claim is the end product manufacturer, is an RSPO member and is certified

against the RSPO Supply Chain Certification Standard (SCCS) or is an RSPO retailer member

authorized to use the trademark by the RSPO.

- At least 50% of the oil palm content has been supplied through an RSPO certified supply chain as

IP, SG or MB.

- The remainder of the oil palm volume that is not RSPO CSPO is covered by the member’s Book

and Claim certificate purchases to equivalent volume.

- The product specific claim is limited to only the following phrase: “This product contributes to the

production of certified sustainable palm oil”.

- The use of the RSPO label with this claim is mandatory and must include the tag ‘50% MIXED’.

No other percentage is allowable within this claim.


GUILDLINES AND REQUIREMENTS OF RECORD KEEPING

RECORD KEEPING

a) The Central Office shall maintain centralized accurate, complete, up-to-date and

accessible records for all participating sites

b) The Central shall be responsible for maintaining reports covering all aspects of the

RSPO multi-site requirements

c) The Central Office must keep an up to date record of the volume of RSPO certified oil

palm products purchased and claimed over a specific period

d) The records and reports shall be prepared and generated at the Central Office who

have also determined

which common management documents will be applicable to particular

operational unit

COMMON MANAGEMENT DOCUMENTS OPERATIONAL UNITS

1. DOCUMENTED PROCEDURE IN COMPLIANCE WITH

RSPO SCC REQUIREMENTS

ECOCHEM, PALMEDIA, JOHANN

2. MECHANISM FOR HANDLING THE NON-

CONFORMING MATERIAL / DOCUMENT / SITE


3. NON-CONFORMANCE REPORT WITH PREVENTIVE

AND CORRECTIVE ACTION


4. GUIDELINE AND REQUIREMENTS OF RECORD

KEEPING


5. RSPO CERTIFIED MATERIAL/PRODUCT SUPPLIER LIST


6. GUIDELINE OF HANDING RSPO MATERIAL

/PRODUCT BY OUTSOURCE THIRD PARTY


7. TRAINING PLAN FOR IMPLEMENTATION OF RSPO

SUPPLY CHAIN SYSTEM


8. GUIDELINE IN HANDLING THE COMPLAINTS UNDER

RSPO SUPPLY CHAIN



9. DETERMINING CONVERSION FACTOR IN RSPO

SUPPLY CHAIN


10. GUIDELINE IN INTERNAL COMPLIANCE AUDIT AND

MANAGEMENT OVERVIEW


11. PLANNING AND CRITERIA OF INTERNAL AUDIT

PROGRAMME


12. INTERNAL COMPLIANCE AUDIT CHECKLIST FOR

RSPO SUPPLY CHAIN CERTIFICATE


13. GUIDELINE OF RSPO TRADEMARK AND LOGO

CLAIMS


14. MANAGEMENT REVIEW SHEET & CHECKLIST


15. VOLUME BALANCE REPORT

16.


which site specific documents are required at each operational unit

SITE SPECIFIC DOCUMENTS OPERATIONAL UNITS

1. DOCUMENTATION GUIDELINE OF SALES AND

PURCHASES OF RSPO MATERIAL/PRODUCT

ECOCHEM, PALMEDIA

2. LIST OF OUTSOURCED THIRD PARTY AND CONTACT

INFORMATION

ECOCHEM, PALMEDIA

3. TRAINING ATTENDANCE SHEET – JOHANN FREIGHT

SDN BHD

ECOCHEM, JOHANN

4. RSPO ORGANIZED WEBINAR ATTENDANCE SHEET ECOCHEM, PALMEDIA

e) Retention times for the records and reports shall be minimum of two (2) years

and must comply with legal and regulatory requirements and be able to confirm the certified status of raw material or product head in stock.


TRAINING PLAN FOR EFFECTIVE IMPLEMENTATION OF THE RSPO

SCC SYSTEM

- The organization shall have a training plan on RSPO Supply Chain Standards requirements,

which is subject to on-going review and is supported by records of the training provided to

staff.

- Appropriate training shall be provided by the organization for personnel carrying out the

tasks critical to the effective implementation of the supply chain certificate standard

requirements. Training shall be specific and relevant to the task(s) performed.


PLANNING AND CRITERIA OF INTERNAL AUDIT PROGRAMME

According to the requirements of RSPO Supply Chain Certificates Standard, internal audit shall be

conducted annually as scheduled of each participating site and following the required criteria

below:

PROCESSES TO BE AUDITED

• Purchase

• Sales

• Storage

SITE TO BE AUDITED

• Ecochem Oleochemicals Ltd, Hong Kong

• Palmedia (M) Sdn Bhd, Malaysia

• Johann Freight Sdn Bhd, Malaysia

AUDIT CRITERIA

• By RSPO Supply Chain Certificate Standard Version adopted by the RSPO Board of

Governors on 21 November 2014, revised on 14 June 2017.

(Document Code: RSPO-STD-T05-001 v.1.1 ENG)

SUPPLY CHAIN MOUDLE TO BE COVERED

• Module A – Identity Preserved

• Module B –Segregation

• Module C – Mass Balance

• Module F – Multi-site Certificate

SCOPE FREQUENCY

• Purchase, receiving, storage and delivery of RSPO Crude Palm Oil (CPO), Palm Kernel Oil

(PKO), Certified Sustainable Palm Oil (CSPO), Certified Sustainable Palm Kernel Oil (CSPKO),

and all other palm-based derivatives, fractionations and oleochemical products


MECHANISM FOR HANDLING THE NON-CONFORMING

MATERIALS/DOCUMENTS/PARTICIPATING SITES

NON-CONFORMING MATERIALS

In cases the received materials do not conform to RSPO supply chain certificate requirement, the

Central Office shall

a) raise complaint to the Vendor for the unconformities

b) request the Vendor to explain for the unconformities or provide proof such as the RSPO eTrace

announcement from the palm oil mills to support their declaration

c) separate the suspected non-conforming material from other RSPO certified products in the

warehouse

d) request the Vendor to re-arrange the replacement cargo in prompt

NON-CONFORMING DOCUMENTS

In cases the received documents do not conform to the RSPO supply chain certificate requirement,

the Central Office shall

a) raise complaint to the Vendor for the unconformities

b) request the Vendor to explain for the unconformities

c) request the Vendor to revise the documents in accordance with the requirement of RSPO

supply chain certificate standard

NON-CONFORMING SITES

In cases the operation site(s) is/are found that it/they is/are not in compliance with the RSPO supply

chain certificate requirement, the Central Office shall


a) raise the non-conformities by issuing the non-conformance report and follow up the

necessary corrective and preventive actions

b) have the responsibility to remove participating sites from the scope of the multi-site system

if the requirements of participation, or any non-conformities issued by the certification body

or by the company itself, are not addressed by the participating site(s)

The management responsible for the area being audited shall ensure that any necessary

corrections and corrective actions are taken without undue delay to eliminate detected non-

conformities and their causes.


GUIDELINE IN HANDLING THE COMPLAINTS UNDER

RSPO SUPPLY CHAIN

SOURCE OF COMPLAINTS

Complaints are normally arisen from two aspects which are the direct complaints from the

customers and the feedback in the customer surveys. The complaints, if any, to be received from

different operational sites, shall be centrally handled and resolved at the Central Office.

HANDLING PROCEDURE

Once received complaints from the customers who have purchased the RSPO certified

material/products, the Central Office shall handle the complaints as per following procedures:

a) The Central Office shall proceed preliminary assessment of the complaint and contact the

customer to collect additional information if necessary for the purpose of investigation

b) The Central Office shall assess and identify the party(ies) who shall be taking responsibility and

conducting the investigation of the complaints. In cases if the Vendor or other third party in the

supply chain shall be responsible to the complaint, then the Central Office shall forward the

complaint to the relevant party to conduct the relevant investigation. On the contrary, if the

complaints are heading towards the Central Office or the other operational site, then an internal

investigation has to be conducted and handled by the Central Office.

c) The Central Office shall follow up the complaints with the Vendor or relevant party for the

investigation result with the explanation of the cause, the preventive and corrective actions to

be taken in the future.

d) The Central Office shall respond to the customer upon the receipt of the feedback from the

vendor. The reply shall be including the investigation report with the cause explanation, the

preventive and correction actions to be taken in the future.

e) All the records pertaining to the complaints shall be kept with the Central Office for at least two

(2) years.


GUIDELINE OF INTERNAL COMPLIANCE AUDIT AND MANAGEMENT

OVERVIEW

INTERNAL AUDIT

a) Requirement and responsibility of Planning and Conducting Internal Audit

The Central Office shall conduct internal audit of each participating site to ensure compliance with

the requirements of RSPO supply chain certificate standard. The internal audit shall be conducted

annually to determine whether the supply chain certificate system

- conforms to the planned arrangement, to the requirements of the RSPO SCC Standard and

to the RSPO ruled on communications and claims and any other requirements established

by the organization.

- Is effectively implemented and maintained

b) Requirement and responsibility of Establishing Record and Reporting Result

The records of the audit and their results shall be maintained and reviewed by the management to

ensure that any necessary corrections and corrective actions are taken without undue delay to

eliminate detected non-conformities, if any, and their causes.

The result of the internal audits and all actions taken to correct non-conformities will be available

to certificate body (CB) upon request.

MANAGEMENT REVIEW

The top management shall review the outcome of the internal audit programme at least annually by

going through the management review sheet.


OPERATION HANDBOOK FOR RSPO Supply chain ...

Documents

Transcript of OPERATION HANDBOOK FOR RSPO Supply chain ...