Post on 13-Jan-2016
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oilpalm.wildasia.org
RSPO SCC StandardCore Requirements(Part 1)
RSPO LEAD AUDITOR SERIES
SCCS M2a May 2013
Control of Certified Palm Oil
products in Supply Chain
RSPO Supply Chain Certification
Standard
2011
1. CERTIFICATION OVERVIEW
3. GENERAL REQURIEMENTSa.General for all facilities (inc. CPO mills)
2. BOOK & CLAIMa.Overview & Guidelines
4. MODULAR REQUIREMENTSa.SG andb.MB
SCC StandardSCC Standard1. Certification 1. Certification OverviewOverview
To physically manage sustainable palm oil products; or specifically administrate all purchases and sales of certified products
SCS Objective
6
Trade of batches of crude palm oil (CPO) or palm kernal oil (PKO) and its derivatives, products
SCS Coverage
6
Unit of Certification
“All operators who take legal ownership & physically handle (including receipt into storage tanks) RSPO certified sustainable oil palm products”
This applies up and including the end product manufacturer:– First operator: Palm Oil Mill (BC, SG or MB only)
– Last Operator: End Product ManufacturerFacility or parent company are RSPO members
RSPO memberCPO mill SC during P&C auditCPO Mill adopts SG/MB models
RSPO memberSCCS certifies individual facilities
RSPO memberTrademark & claims controlled by RSPO rules
Non-conformances
RSPO
SCCSys 5.3
• All non-conformances are considered Major
• Where non-conformances are not closed out within (3) months of the audit, a full re-audit is required
For NC after certification…1 month to close.
Awarding Certification
CB submits to RSPO and updates E-trace
RSPO to upload certificate on RSPO website and E-trace system within 1 working week
SCC StandardSCC Standard2. Book & Claim2. Book & Claim
To broker direct payments between supporters of sustainable palm oil and CSPO producers
Objective
6
CPO Mill is RSPO CertifiedAdopts Book & Claim as its SCCS certification model
Green Palm member purchases GP certificates from CPO Mill
Physical trade of palm oil products continues …
Greenpalm Trademark is only used in any market claims
Certified CPO (PKO) registered into Greenpalm Web Database
General Requirements
• Must be a member of Greenpalm• Only RSPO certified producers can sell
certificates (growers or smallholders)• Supporters/End users can buy certificates
and claim to support sustainable palm oil.
Rules governed by RSPO/Greenpalm • Sales transacted directly or off-market.
Buyers
• 1 GP certificate is equivalent to1 mt CPO• Sales no less than 25 GP certificates• Buyers cannot resell certificates• Greenpalm logo and claims must be approved
before use• Olechemical derivatives, commonly used by home
care products, are guided by conversions
determined by the 2012 RSPO Rules for Home and
Personal Care Derivatives.
SCC StandardSCC Standard3. General 3. General RequirementsRequirements
General Requirements
Consist of the following elements; 5.2 Documented procedures 5.3 Purchasing and goods in 5.4 Outsourcing activities 5.5 Sales & goods out 5.6 Registration 5.7 Training 5.8 Claims
• Procedures for Implementation• Records and reports to demonstrate
compliance• Person-in-charge named & demonstrate
awareness of facility procedures
5.2 Documented Procedures
• Documentation purchases from suppliers indicate IP/MB/MB • E.g., purchase orders, contracts, material
specifications• Checks by facility
• RSPO certified in origin• SCC Certificates Valid• Confirmation of trade (e.g., Shipping Announcement
and Shipping Confirmations in e-Trace)• Mechanism/procedures for handling non-conformity
material/documents.
5.3 Purchasing and goods in
• Third-parties can be included in Facility's SCC certification. (e.g., subcontractors for storage, transport)
• IF:• Maintains legal ownership• Enforced agreement facility-third parties (allow
unrestricted access of CBs)• Documented control procedures
• Facility maintains names/contact details of all contractors and inform CB of any updates
5.4 Outsourcing activities
• Sales invoices or relevant documents (e.g. delivery notes, shipping documents, etc) includes sufficient information on RSPO certified palm oil products delivered.• Names/Contacts of buyer or seller• Loading/delivery date• Certified product description (IP/MB/SG)• Quantities delivered• Transportation information• SCCS Certificate Reference Number
5.5 Sales of Goods Out
• Registration in RSPO IT System:• Legal/physical ownership of certified product• All supply chain actors, up to final refinery
• MUST• CPO and PKO Mills• Refineries (note: final refinery confirms receipt of shipments
only)• EXCLUDES
• Traders but not handling physical material (traceability number must be included in shipment documentation)
• Operators after final refinery (retailers/end product manufacturer)
5.6 Registration
• Defined training plan for implementation of the SCCS requirements.
• Training to all staff to implement the SCCS requirements.
• Training plan subject to review and updates.• Maintain relevant training records.
5.7 Training
• Facility shall only make claims regarding use or support of CSPO in compliance with RSPO Rules for Market Claims.
5.8 Claims
Defined Person-in-Charge for SCCS
Outsourcing services covered by facility certification
E-Trace updated when RSPO product delivered by CPO mill or arrives at final manufacturer
Facility checks validity of RSPO Certificates delivered
Certificate Number indicated on outgoing documents
SCC StandardSCC Standard4. Modular 4. Modular RequirementsRequirements
Modular Requirements
• Facility must comply with General Requirements and at
least one of the modules. • Several modules can be implemented simultaneously.• CPO Mills must apply either SG or MB • Modules:
• A Identity Preserved• B Segregation• C Mass Balance• D CPO Mills (Segregation)• E CPO Mills (MB)• F Multi Site Certification• G Group Scheme NEW 2013
Covered in this section
A/B – IP & SG
SEGREGATION
Segregation ensures receipt, processing and storage maintains RSPO products is physically separated
Source of Certified Material is identified
Product has minimum 95% RSPO certified product
Outgoing documentation identifies Certified product
• Follows same or less strict model of supplier (IP > SG > MB > Uncertified)
Processing
• 100-95% of source is identifiable to: • (a) a single mill and supply base (IP)• (b) certified segregated material (SG)
• Demonstrate (inc. procedures & record keeping) segregation:• Prevents physical mixing (isolated)• Transport and Storage
(note: handling non conformities or diversion of new crop to mill due to mill shutdowns)
Processing
95% rule
• Objective is for 100% CSPO product• Allows for minor contamination up to 5%
• Residual oils/products in storage tanks,
transport facilities• Tanks/pipes/valves need to have
procedures to handle different SCCS
systems (SG vs MB)
• Records and reports for at least 5 years• Documented proof that supply is traceable:
• (a) IP: to a single palm oil mill and supply• (b) SG: certified segregated material
• Trade names shall be indicated on relevant documents (e.g., purchase and sales contracts): • [Product Name]/IP or Identity Preserved• [Product Name]/IP or Segreagated
Record Keeping
SG Suppy Chain Yield SchemeCPO
100 %1,000 mt
Refined Palm94 %
940 mt
PFAD5 %
50 mt
Losses1 %
10 mt
OLEIN80 %
752 mt
STEARIN20 %
188 mt
Palm Mid Stearin65 %
122 mt
Double Frac Stearin
35 %66 mt
Double Frac Olein (Super Olein)65 %
489 mt
Palm Mid Fraction
35 %263 mt
Estimated only (+/- 2%)
C - MB
MASS BALANCE
MB products are purchasedMB Yield Scheme used to determine how much MB products can be sold
Mixed sources of FFB (certified and non-certified)
Product has minimum 95% RSPO certified product
Facility maintains an account of volume of certified material received and processed
• Follows same or less strict model of supplier (IP > SG > MB > Uncertified)
Processing
• Records and reports for at least 5 years. • Trade names shall be indicated on relevant documents
(e.g., purchase and sales contracts): • [Product Name]/MB or Mass Balance
Record Keeping
• Quantity of physical RSPO mass balance material inputs and outputs (volume or weight) at the physical site are monitored on a real-time basis.
• Accounting of material ensures:• Delivery of MB sales from positive stock• Allows for short selling (sales ahead of actual
receipt)• MB volume starts from date it enters the accounting
system and is deducted when it is allocated to outputs supplied by the organisation.
• MB claims on outputs matches inputs as per yield scheme.
Mass Balancing System
MB Suppy Chain Yield Scheme
New
• SG palm and palm kernel products can be used to support a MB claim, without a physical/chemical link between the SG product and the derivative sold as MB.
• However…SG palm oil products cannot be used to offset mass balance claims on palm kernel products or vice versa.
Mass Balancing Scheme
Palm Kernel MB Yield Scheme100 mt palm
kernels
45 mt palm kernel oil
29.2 mt PKO olein
15.8 mt PKO stearin
+
Companies that purchase segregated palm kernel products can either:•Apply segregated claim to all subsequent derivatives …..OR•Use it to offset sales of equal volumes of MB palm kernel derivatives(not necessarily derived from the segregated product acquired)
PK Mass Balancing Scheme
PK MB/SG Yield SchemeModel Yield Scheme
MB100 mt PK --> 45 mt PKO --> 15.8 mt PKO Stearin + 29.2 PKO Olein
SG-a Apply segregated claim to all derivatives
SG-bOffset equal volumes of MB PK-derivatives with SG PK-products
Refinery receives an order for 1,600 mt of CSPO MB Olein.
2,000 mt RBDPO is required to produce 1,6000 mt of Oleine.
It has in the RSPO account 5,000 mt MB CPO and 3,000 mt CPO in physical
stock.
Following should occur:
1.Physical stock is refined to produce 1,600 mt MB Oleine.
2.2,000 mt is deducted from the RSPO account
3.400 mt of Stearin is added to the RSPO account.
Sales can be affected anytime in the future
Example: Harmonisation
Refinery purchases 1,000 mt of
CSPO MB.
Options for sales:
1.MB 1,000 mt Refined Palm Oil
(RBDPO); or
2.MB 800 mt Oleine and MB 200 mt
Stearin; or
3.MB 520 mt Double Frac Olein or
280 mt Palm Mid Fraction etc
PFAD, offset MB with equal volumes of SG
products
Example: HarmonisationRefinery purchases 1,000 mt of MB PK.
Options for sales:
1.MB 450 mt PKO; or
2.MB 158 mt PKO Stearin and 292 mt
PKO Olein
All other derivatives, offset MB with equal volumes
of SG products
1. 50 mt of SG + 10 mt of MB = 60 mt MB
2. 10 mt of non CSPO + 10 mt of SG = 10 mt MB
3. 10 mt of MB + 13 mt MB = 23 mt MB
4. 20 mt of MB + 10 mt of non CSPO = 20 mt of MB
Example: Combined
1. 1,000 mt SG/IP CPO = 1,000 mt MB of any fractions
2. 1,000 mt SG/IP PKO = 1,000 mt MB of any fractions
(e.g., PFAD, etc)
BUT cannot buy SG CPO for MB PK fractions or vice versa
Example: Substitution
SCC StandardSCC StandardConclusionConclusion
Conclusion
• The SCCS certificate covers all operators who legally
own or physically handle RSPO certified products.• SCCS requirements focus on handling, accounting
and communication of use of certified products.• Three supply chain models are covered:
• Book & Claim• Segregated and Identity Preserve• Mass Balance
Questions?Questions? E: advisory@wildasia.orgE: advisory@wildasia.orgW: oilpalm.wildasia.orgW: oilpalm.wildasia.org