WEBVTT 00:00:00.000 --> 00:00:08.450 00:00:08.450 --> 00:00:10.810 Welcome to the Rainforest Alliance module on 00:00:10.820 --> 00:00:13.120 Non-Conformities and Possible Consequences. 00:00:14.210 --> 00:00:16.930 During this module, you will learn what a non-conformity is, 00:00:17.430 --> 00:00:19.710 when can it be issued, and the consequences 00:00:19.710 --> 00:00:21.130 that a non-conformity can bring. 00:00:22.500 --> 00:00:24.880 Additionally, you will learn what is a cancellation 00:00:24.910 --> 00:00:26.890 and a suspension, in which cases can 00:00:26.890 --> 00:00:28.960 this occur and what happens after. 00:00:29.750 --> 00:00:31.520 This module is applicable for both 00:00:31.520 --> 00:00:33.080 Farm and Supply Chain scopes. 00:00:33.890 --> 00:00:36.160 The information of this video is mostly aimed at 00:00:36.160 --> 00:00:38.720 Certification Bodies but can also be interesting 00:00:38.720 --> 00:00:40.690 for Certificate Holders, to be aware of the 00:00:40.690 --> 00:00:43.280 consequences if Non-Conformities are found. 00:00:44.170 --> 00:00:47.040 This video is all about the Non-conformities or NCs 00:00:47.260 --> 00:00:49.240 and how this relates to the performance system. 00:00:49.650 --> 00:00:51.210 To start, some context! 00:00:52.040 --> 00:00:54.040 You might already know this, but it doesn’t hurt to repeat. 00:00:54.670 --> 00:00:57.280 We define a Non-Conformity as the Non-complete 00:00:57.290 --> 00:00:59.920 fulfilment of a requirement in the Rainforest Alliance 00:00:59.930 --> 00:01:01.610 Sustainable Agriculture Standard. 00:01:02.250 --> 00:01:04.530 Any Non-conformity can be raised during an audit 00:01:04.590 --> 00:01:07.510 if the audit team identifies faults or failures to 00:01:07.510 --> 00:01:09.080 meet one or more requirements. 00:01:09.530 --> 00:01:10.440 Let’s see an example: 00:01:11.420 --> 00:01:13.430 One of our core requirements says that all 00:01:13.430 --> 00:01:15.560 Certificate Holders should keep the records for 00:01:15.560 --> 00:01:19.180 certification purposes and compliance for at least four years. 00:01:19.710 --> 00:01:22.080 Olivier, part of the group management of a cocoa 00:01:22.080 --> 00:01:25.110 cooperative in Ivory Coast, was asked to retrieve 00:01:25.110 --> 00:01:26.550 records from 4 years ago. 00:01:27.140 --> 00:01:29.640 He was only able to find two years old documents. 00:01:30.100 --> 00:01:31.280 The audit team then raised a 00:01:31.280 --> 00:01:33.350 non-conformity versus this requirement. 00:01:33.820 --> 00:01:34.590 Makes sense, right? 00:01:35.230 --> 00:01:36.670 Let’s jump into the thick of it! 00:01:37.350 --> 00:01:38.800 It will soon become clearer. 00:01:39.940 --> 00:01:42.600 The first topic we need to address is the identification 00:01:42.620 --> 00:01:45.020 of non-conformities during an external audit. 00:01:45.860 --> 00:01:48.320 During the external audit, it’s the audit team’s 00:01:48.320 --> 00:01:51.600 responsibility to identify and describe the non-conformities. 00:01:52.080 --> 00:01:54.920 All NCs are to be reported to the Rainforest 00:01:54.920 --> 00:01:57.470 Alliance and communicated to the Certificate Holder. 00:01:58.330 --> 00:02:01.120 The certifier, who is part of the program management team, 00:02:01.430 --> 00:02:04.300 is responsible for verifying them and if necessary, 00:02:04.320 --> 00:02:06.620 making adjustments based on the information 00:02:06.630 --> 00:02:07.880 given by the audit team. 00:02:08.950 --> 00:02:10.770 Let’s now talk about non-conformities 00:02:10.800 --> 00:02:11.920 and the performance system. 00:02:12.700 --> 00:02:15.310 All non-conformities against mandatory requirements 00:02:15.310 --> 00:02:18.420 found during an audit, need to be closed before the 00:02:18.420 --> 00:02:20.160 Certificate Holder can be certified. 00:02:20.510 --> 00:02:20.980 But wait... 00:02:21.570 --> 00:02:24.450 do you know what we mean with closing a non-conformity? 00:02:25.260 --> 00:02:28.020 There are three steps to the response or closure of 00:02:29.420 --> 00:02:31.380 root cause analysis, correction, 00:02:31.670 --> 00:02:32.820 and corrective action. 00:02:33.620 --> 00:02:37.000 Also, it's important to know that it is the responsibility 00:02:37.020 --> 00:02:39.750 of the auditee to close a non-conformity and the 00:02:39.750 --> 00:02:41.760 audit team cannot provide any support, 00:02:42.130 --> 00:02:44.070 this is to avoid conflict of interest. 00:02:45.430 --> 00:02:47.910 Ok! Should we go over the three steps? 00:02:48.710 --> 00:02:51.970 First, for each non-conformity the auditee does a 00:02:51.970 --> 00:02:54.980 root cause analysis which is a systematic problem-solving 00:02:54.980 --> 00:02:58.030 technique that allows Certificate Holders to find out 00:02:58.030 --> 00:03:00.040 the core issue of the NC. 00:03:00.930 --> 00:03:04.000 Second, they implement what is called “correction” 00:03:04.500 --> 00:03:06.980 which is an action to immediately eliminate a 00:03:06.980 --> 00:03:07.450 detected nonconformity. 00:03:08.880 --> 00:03:11.310 Finally, based on the root cause analysis, 00:03:11.570 --> 00:03:14.430 the Certificate Holder puts in place a “corrective action”. 00:03:15.200 --> 00:03:18.050 This is an activity or strategy to eliminate 00:03:18.050 --> 00:03:20.200 the root cause to prevent a recurrence. 00:03:21.120 --> 00:03:23.080 Let’s go back to Olivier. 00:03:23.080 --> 00:03:25.420 After doing a root cause analysis, he found out 00:03:25.420 --> 00:03:28.390 that his predecessor had no system or procedure to 00:03:28.420 --> 00:03:31.120 archive the documents and therefore the files 00:03:31.120 --> 00:03:32.560 were stored in another facility. 00:03:33.250 --> 00:03:36.320 As a correction, Olivier collected the missing documents 00:03:36.330 --> 00:03:38.050 and archived them in the same place. 00:03:38.560 --> 00:03:41.520 To avoid this from happening again, he wrote a policy 00:03:41.530 --> 00:03:45.120 on record-keeping with clear instructions as a corrective action. 00:03:46.520 --> 00:03:48.360 Now that we have our basics covered, 00:03:48.680 --> 00:03:50.110 let’s go back to the rules! 00:03:51.160 --> 00:03:53.980 If non-conformities are found during a surveillance or 00:03:54.110 --> 00:03:57.450 investigation audit whilst a certificate is still active, 00:03:57.830 --> 00:04:00.260 the Certificate Holder may keep its certificate, 00:04:00.620 --> 00:04:03.870 unless the Certification Body thinks the risk is too high. 00:04:04.440 --> 00:04:07.480 However, for the Certificate Holder to keep their 00:04:07.480 --> 00:04:11.050 certification status, they need to close all non-conformities 00:04:11.050 --> 00:04:12.950 found within the time frame mentioned in 00:04:12.950 --> 00:04:14.110 the certification process. 00:04:14.910 --> 00:04:16.640 You can stop the video and have a look at the 00:04:16.640 --> 00:04:19.480 Certification Rules for more details on this topic. 00:04:20.740 --> 00:04:23.340 When it comes to a self-selected requirement or 00:04:23.410 --> 00:04:26.510 self-selected smart meter; if one (or more) non-conformities 00:04:27.160 --> 00:04:29.620 are found, then they must be closed before the 00:04:29.620 --> 00:04:31.640 Certificate Holder makes any additional 00:04:31.650 --> 00:04:32.910 claims on that requirement. 00:04:33.340 --> 00:04:36.480 But luckily, this does not affect the certification decision. 00:04:37.070 --> 00:04:39.750 Now, buckle up because we’re going to talk about 00:04:39.750 --> 00:04:41.270 the closure of a non-conformity! 00:04:42.450 --> 00:04:45.270 As you already know, when a non-conformity is raised, 00:04:45.550 --> 00:04:47.730 Certificate Holders decide and implement 00:04:47.750 --> 00:04:50.140 appropriate corrections and a corrective action 00:04:50.140 --> 00:04:53.100 plan to prevent the recurrence of the non-conformity. 00:04:53.940 --> 00:04:55.930 They will present a corrective action plan to 00:04:55.930 --> 00:04:57.870 the Certificate Body that should include: 00:04:57.870 --> 00:05:00.400 Root Cause Analysis 00:05:00.420 --> 00:05:03.380 A correction, that should be implemented 00:05:03.390 --> 00:05:05.180 throughout the extent of the certificate 00:05:05.180 --> 00:05:07.420 A corrective action 00:05:08.470 --> 00:05:10.860 Besides this plan, Certificate Holders have a 00:05:10.860 --> 00:05:13.820 maximum of 10 weeks after the last day of audit to 00:05:13.820 --> 00:05:16.640 provide evidence of the closure of a non-conformity. 00:05:17.150 --> 00:05:19.510 If a root cause needs a long-term solution, 00:05:19.520 --> 00:05:22.380 beyond these 10 weeks, the non-conformity 00:05:22.400 --> 00:05:24.690 may be closed with a corrective action plan. 00:05:25.570 --> 00:05:28.190 There are very specific requirements for this scenario, 00:05:28.200 --> 00:05:30.120 so we recommend you stop the video, 00:05:30.440 --> 00:05:33.130 go to the certification rules, and read that part of 00:05:33.130 --> 00:05:36.170 this section that deals with long-term root causes. 00:05:38.680 --> 00:05:41.770 Once received, the Certification Body either agrees 00:05:42.020 --> 00:05:44.650 or disagrees with the proposed corrective action plan. 00:05:45.210 --> 00:05:48.150 If they disagree, the reasons should be justified, 00:05:48.250 --> 00:05:50.520 and the Certificate Holder will need to submit a 00:05:50.520 --> 00:05:51.900 new Corrective Action Plan. 00:05:52.380 --> 00:05:55.200 Once approved, the Certification Body will verify 00:05:55.240 --> 00:05:57.390 if the corrective actions have eliminated the 00:05:57.390 --> 00:05:59.890 non-Conformities and their root cause during 00:05:59.890 --> 00:06:00.840 the follow-up audit. 00:06:01.870 --> 00:06:05.340 All right, now let’s look at more serious issues! 00:06:06.200 --> 00:06:09.050 Certification Bodies or the Rainforest Alliance can 00:06:09.050 --> 00:06:12.220 decide to immediately cancel a certificate or decide 00:06:12.260 --> 00:06:14.120 not to certify Certificate Holders. 00:06:14.740 --> 00:06:16.980 There are several reasons listed in the Rules 00:06:16.990 --> 00:06:20.220 for why this could happen, we will not go into details 00:06:20.220 --> 00:06:22.380 but as always, there is the pause button. 00:06:24.550 --> 00:06:27.140 For now, it is important to remember that 00:06:27.150 --> 00:06:30.620 non-certification or cancelation of a certificate is 00:06:30.650 --> 00:06:33.460 often due to unethical or illegal behavior, 00:06:33.680 --> 00:06:35.510 severe human rights violations, 00:06:35.810 --> 00:06:38.960 irreparable systemic failures, or any practice that 00:06:38.970 --> 00:06:41.930 may be a risk to the credibility of the program. 00:06:42.780 --> 00:06:45.050 For example, when conventional volume is 00:06:45.050 --> 00:06:47.370 intentionally being claimed as Rainforest Alliance 00:06:47.370 --> 00:06:50.340 certified or if there has been bribery or 00:06:50.340 --> 00:06:52.910 harassment by the Certificate Holder to the auditor. 00:06:54.070 --> 00:06:57.430 For groups, if an irreversible non-compliance was 00:06:57.430 --> 00:07:00.450 found in more than 5% of the whole group or at 00:07:00.450 --> 00:07:04.100 least 5 of the audited farms, this is considered to be 00:07:04.160 --> 00:07:07.630 a systemic issue, not an isolated case and therefore 00:07:07.660 --> 00:07:10.490 the Certification Body cannot certify the auditee 00:07:10.750 --> 00:07:12.300 and may issue a cancellation. 00:07:13.070 --> 00:07:15.380 Another scenario is when a Certification Body 00:07:15.420 --> 00:07:18.250 withdraws a certificate or issues a non-certification. 00:07:18.700 --> 00:07:21.590 To rectify this, the Certificate Holder needs to 00:07:21.590 --> 00:07:23.790 receive a new certification audit. 00:07:24.850 --> 00:07:26.890 Now, it’s time to discuss the consequences 00:07:26.890 --> 00:07:28.820 and steps that need to be taken when 00:07:28.820 --> 00:07:31.180 non-certification or cancellation occurs. 00:07:31.930 --> 00:07:34.880 Firstly, Certification Bodies must immediately 00:07:34.880 --> 00:07:37.600 inform the Rainforest Alliance and the Certification Holders 00:07:37.880 --> 00:07:40.800 through the Rainforest Alliance Certification Platform. 00:07:42.150 --> 00:07:45.340 If in a a re-certification audit the Certificate Holder 00:07:45.350 --> 00:07:48.990 receives a non-certification but still has an active certificate, 00:07:49.350 --> 00:07:53.830 then the Certification Body must cancel the active certificate. 00:07:54.690 --> 00:07:57.010 Auditees that have farming in their scope should 00:07:57.010 --> 00:07:59.730 wait at least one harvest period from the date 00:07:59.740 --> 00:08:03.640 of non-certification or cancellation to reapply for certification. 00:08:04.400 --> 00:08:07.750 In case of continuous harvest, the first possible start date 00:08:07.780 --> 00:08:11.080 of the certificate shall be at least 6 months after. 00:08:12.020 --> 00:08:14.720 In case a Certificate Holder has received more than 00:08:14.720 --> 00:08:17.370 one cancellation or non-certification in a row, 00:08:17.880 --> 00:08:21.110 then they need to wait at least two harvest periods 00:08:21.110 --> 00:08:24.440 after the date the non-certification or cancellation decision 00:08:24.440 --> 00:08:27.890 was taken before a new certification may take place. 00:08:28.110 --> 00:08:31.000 Or 12 months if the harvest is continuous. 00:08:32.150 --> 00:08:34.470 Another important aspect is that those Certificate 00:08:34.470 --> 00:08:37.780 Holders wanting to achieve certification again must 00:08:37.810 --> 00:08:40.330 comply with the same conformity level to 00:08:40.330 --> 00:08:41.950 the year when they were canceled. 00:08:42.730 --> 00:08:46.460 Ok, now we have a second option that is called ‘suspension’. 00:08:47.810 --> 00:08:51.070 Sometimes a Certification Body or the Rainforest Alliance 00:08:51.080 --> 00:08:54.510 may want to investigate one or more non-conformities further, 00:08:54.740 --> 00:08:56.980 before deciding to cancel a certificate. 00:08:57.460 --> 00:08:59.740 In this case, they can opt for suspension. 00:09:00.350 --> 00:09:03.520 This occurs when a Certificate Holder has a valid certificate, 00:09:03.560 --> 00:09:06.410 but the audit team finds that there is a non-conformity 00:09:06.410 --> 00:09:08.170 that might lead to cancellation. 00:09:09.020 --> 00:09:11.870 You might be asking, when exactly can this happen? 00:09:12.880 --> 00:09:13.730 You’ve guessed it! 00:09:14.200 --> 00:09:17.330 Surveillance, surprise, and investigation audits. 00:09:17.690 --> 00:09:20.820 In this case, the Certification Body can opt to suspend 00:09:20.820 --> 00:09:24.310 the certificate for 3-months while they investigate the issue. 00:09:26.540 --> 00:09:28.110 While the certificate is suspended, 00:09:28.190 --> 00:09:30.760 products cannot be sold or shipped with a 00:09:30.760 --> 00:09:32.580 Rainforest Alliance Certified claim. 00:09:33.090 --> 00:09:35.370 Once the Certification Body has confirmed that 00:09:35.370 --> 00:09:38.050 the reasons for the suspension were properly addressed, 00:09:38.370 --> 00:09:41.400 the suspension can be lifted, and certified products 00:09:41.400 --> 00:09:42.750 can continue to be traded. 00:09:42.890 --> 00:09:46.310 However, if the underlying reasons are not tackled, 00:09:46.330 --> 00:09:48.560 then a cancellation should be issued. 00:09:49.830 --> 00:09:52.480 All right, we arrived at the final part! 00:09:53.210 --> 00:09:57.430 Here we will go over the cease of sales or the selloff period rules 00:09:57.450 --> 00:10:00.960 in case of cancellation, non-certification, or suspension. 00:10:01.620 --> 00:10:04.920 This is a mouthful, so before jumping in, let’s have a break…. 00:10:06.090 --> 00:10:06.760 a ZEN break. 00:10:16.430 --> 00:10:17.180 Feeling more relaxed? 00:10:17.590 --> 00:10:17.930 Good! 00:10:18.530 --> 00:10:21.240 So, you already know that a Certificate Holder 00:10:21.260 --> 00:10:24.660 cannot sell, ship, or claim products as Rainforest Alliance 00:10:24.660 --> 00:10:26.720 when they have received a non-certification, 00:10:26.800 --> 00:10:28.380 cancelation, or suspension. 00:10:28.940 --> 00:10:31.570 However, there are other important things they also 00:10:31.570 --> 00:10:34.970 need to do or consider when either of these three happen. 00:10:35.500 --> 00:10:37.850 Let’s go case by case to not get lost. 00:10:39.030 --> 00:10:41.400 Upon cancellation or non-certification, 00:10:41.800 --> 00:10:44.120 the Certificate Holder must remove all names, 00:10:44.190 --> 00:10:47.770 initials, logos, or other trademarks of Rainforest Alliance 00:10:47.800 --> 00:10:51.210 from its products, documents, advertising, and media. 00:10:51.970 --> 00:10:54.490 If removing these items is not possible then 00:10:54.490 --> 00:10:56.290 the products must be recalled. 00:10:57.490 --> 00:10:59.830 In the case of farm Certificate Holders dealing 00:10:59.830 --> 00:11:03.020 with perishable products, the Certification Body or 00:11:03.020 --> 00:11:05.600 the Rainforest Alliance may allow the suspension to 00:11:05.600 --> 00:11:08.790 become effective up to 7 days after the ruling. 00:11:09.420 --> 00:11:12.370 During this ‘selloff’ period, Certificate Holders may 00:11:12.370 --> 00:11:14.270 be authorized to make transactions in the 00:11:14.270 --> 00:11:17.250 Rainforest Alliance traceability platform for products 00:11:17.250 --> 00:11:19.570 that were sold and shipped before the date of 00:11:19.570 --> 00:11:22.190 the cancellation, non-certification, or suspension. 00:11:23.480 --> 00:11:25.970 This only happens if the Certificate Holder 00:11:25.970 --> 00:11:28.460 complies with the following three requirements; 00:11:30.040 --> 00:11:32.470 The reason or the decision was not related to the 00:11:32.470 --> 00:11:35.440 loss of traceability of the product or the use of 00:11:35.450 --> 00:11:38.140 banned inputs that cannot be traced back to the source. 00:11:38.700 --> 00:11:40.530 The Certificate Holder: 00:11:41.210 --> 00:11:43.640 Requested permission to make the transaction 00:11:43.640 --> 00:11:45.900 of the product that was sold and shipped before 00:11:45.900 --> 00:11:47.640 the suspension or cancellation date. 00:11:48.930 --> 00:11:51.620 Provided documentation, such as the bill of lading 00:11:51.630 --> 00:11:54.470 and invoice, that proves the purchase took place 00:11:54.510 --> 00:11:56.800 before the suspension or cancellation date. 00:11:58.370 --> 00:12:01.150 In the case of perishable products, the Certificate Holder 00:12:01.150 --> 00:12:05.230 may sell and ship products as certified during a suspension 00:12:05.230 --> 00:12:08.630 for up to 4 weeks if they comply with all the mentioned points. 00:12:09.600 --> 00:12:12.170 If the Certificate Holder appeals the cancellation, 00:12:12.180 --> 00:12:14.380 non-certification, or suspension decision, 00:12:14.730 --> 00:12:17.230 they still cannot sell or ship products with the 00:12:17.230 --> 00:12:19.550 Rainforest Alliance certified claim on it 00:12:19.560 --> 00:12:21.030 during the appeal period. 00:12:22.020 --> 00:12:22.720 One last thing! 00:12:23.360 --> 00:12:26.270 If the Certification Body finds out that the Certificate Holder 00:12:26.300 --> 00:12:29.680 is still making incorrect claims of its certification status, 00:12:30.030 --> 00:12:32.770 they shall inform the Rainforest Alliance immediately to 00:12:32.770 --> 00:12:34.250 take action if necessary. 00:12:36.260 --> 00:12:39.060 There we are, now you know the possible consequences 00:12:39.060 --> 00:12:41.000 following the discovery of non-conformities. 00:12:41.960 --> 00:12:45.840 To recap, we discussed the regulations, rights, procedures, 00:12:45.890 --> 00:12:49.460 and consequences to the following topics around non-conformities. 00:12:50.240 --> 00:12:52.540 We discussed how to close a non-conformity, 00:12:52.870 --> 00:12:55.610 its consequences, and steps to take afterwards. 00:12:56.410 --> 00:12:59.360 Finally, we went over what happens with sales and 00:12:59.360 --> 00:13:02.410 the selloff period rules, for cases of cancellation, 00:13:02.510 --> 00:13:04.460 non-certification, or suspension. 00:13:05.200 --> 00:13:07.550 In case of any further questions on this section, 00:13:07.810 --> 00:13:11.290 please contact us at; cbcert@ra.org 00:13:11.920 --> 00:13:13.820 Thank you for watching and see you next time!