1. 

Application for MSPO Certification

Step 1. In this process:

a) Client will apply for MSPO Certification using KRSB MSPO Application form.

b) Client will fill up Questionnaires for Self-Assessment form

c) KRSB will acknowledge Client’s application

2. 

Application Review, Acceptance & Agreement

Step 2. This is the stage where KRSB will decide whether to proceed or refuse certification. The document used to make decision to proceed or refuse certification is the Quotation Contract Review.

In this Process:

a) KRSB will perform Application / Quotation Contract Review. If the application is rated successfully KRSB will proceed to b]. If the application is rated unsuccessful KRSB will write to inform client of the review results with reasons why the client’s application is unsuccessful.  

b) Client will fill up and sign the Application Declaration form

c) KRSB & Client will enter into a formal contract on MSPO Certification Services by signing the KRSB Quotation & Certification Agreement

d) A 5 Year Audit Program will be issued to Client upon signing of the KRSB Quotation & Certification Agreement

3. 

Stage 1 Audit

Stage 1 Audit shall be commenced upon completion and meeting of all requirements of Step 1 & Step 2 above.

Stage 1 audit is a review of a client company’s management system documentation. KRSB shall prepare the Audit Plan and the objectives of the Stage 1 Audit are:

To audit the client’s management system documentation

To evaluate the client’s location and site-specific conditions and to undertake discussions with the client’s personnel to determine the preparedness for stage 2 audit.

To review the client’s status and understanding regarding requirements of the standards particularly with respect to the identification of key performance or significant aspects, processes, objectives and operation of the management system.

To collect necessary information regarding the scope of the management system, processes and location(s) of the client and related statutory and regulatory aspects and compliance ex. Quality, environmental, legal aspects of the client’s operation, associated risks, etc.

To review the allocation of resources for stage 2 audit and agree with the client on the details of stage 2 audit.

To provide a focus for planning the stage 2 audit by gaining a sufficient understanding of the client’s management system and site operations in the context of possible significant aspects.

To evaluate if the internal audits and management review are being planned and performed, and that the level of implementation of the management system substantiates that the client is ready for the stage 2 audit.

Stage 1 Audit Process

In this process:

1. KRSB notify Audit Program to Client

2. Client accepts Audit Program & Auditors

3. KRSB communicate Audit Plan to Client

4. KRSB conduct Stage 1 Audit

5. KRSB document Stage 1 Audit Summary Report and Audit Findings

6. Client acknowledges the Stage 1 Audit Summary Report and takes corrective actions on Audit Findings Report

7. KRSB close out Audit Findings Report

8. KRSB Lead Auditor Recommendation for Stage 2 Audit

9. KRSB plan for Stage 2 in consultation with Client

4. 

Stage 2 Audit

Stage 2 Audit shall be conducted when KRSB had concluded and confirmed that all Stage 1 Audit objectives and documentations are meet satisfactorily by the Client.

KRSB shall conduct Stage 2 Audit within six [6] months after Stage 1 Audit. A Stage 1 will be repeated if the duration had exceeded six [6] months.

In determining the interval between Stage 1 and Stage 2, considerations shall be given to the needs of Client to resolve the Audit Findings / areas of concern identified / reported during Stage 1. If any significant changes which would impact the management system occur, KRSB shall consider the need to repeat all or part of Stage 1. Client shall be informed that the results of Stage 1 may lead to postponement or cancellation of Stage 2.

The purpose of Stage 2 is to evaluate the implementation, including effectiveness of the client’s management system. The Stage 2 audit shall take place at the site(s) of the client. It shall include at least the following:

a) Information and evidence about conformity to all requirements of the applicable management system standard or other normative document

b) Performance monitoring, measuring, reporting and reviewing against key performance objectives and targets (consistent with the expectations in the applicable management system standard or other normative document)

c) The client’s management system and performance as regards legal compliance

d) Operational control of the client’s processes

e) Internal auditing and management review

f) Management responsibility for the client’s policies

g) Links between the normative requirements, policy, performance objectives and targets (consistent with the expectations in the applicable management system standard or other normative document), any applicable legal requirements, responsibilities, competence of personnel, operations, procedures, performance data and internal audit findings and conclusions.

Stage 2 Audit Process

In this process:

a) KRSB issue Public Notification [30 days prior to Stage 2 Audit] at www.kebalresources.com.my

b) KRSB notify Audit Program to Client

c) Client accepts Audit Program & Auditors

d) KRSB communicate Audit Plan to Client

e) KRSB conduct Stage 2 Audit

f) KRSB document Stage 2 Audit Notes / Checklist and issue Audit Finding Report

g) Client acknowledges Audit Findings

h) Client takes corrective actions on Audit Findings [NC Non-conformance] Report

i) Client communicates to KRSB [using Audit Findings Report] on corrective action taken [within agreed time frame not exceeding 3 months after Stage 2 Audit date]

j) KRSB close out NC using Audit Findings Report within 2 [two] weeks after receipt of client’s submission

k) KRSB Lead Auditor Recommendation on MSPO Certification

5. 

Draft Certification Audit Report

In this process:

· KRSB document the Draft Certification Audit Summary Report [within 1 month after completion of Stage 2 or 2 weeks after successful verification on corrective action taken to address Non-Conformance Findings / Audit Findings Report]

6. 

Peer Review of Draft Audit Report

In this process:

a) KRSB submit Draft Certification Audit Summary Report to Peer Reviewers for review & comments

b) Peer Reviewers response / submit Review Report to KRSB within 2 weeks

c) KRSB incorporate Peer Reviewers comments into Draft Certification Audit Summary Report within 1 week.

7. 

Client Review of Draft Audit Report

In this process:

a) KRSB communicate to Client the Draft Certification Audit Summary Report incorporating Peer Reviewers comments.

b) Client submits / revert comments to KRSB [if any] within 2 weeks

8. 

Final Certification Audit Report

In this process:

· KRSB document Final Certification Audit Summary Report [incorporating Peer Reviewers & Clients comments and recommendation for Certification [within 1 week] upon receipt of Client’s review / comments.

9. 

Certification Decision

In this process:

· KRSB appoint the CDP [Certification Decision Panel]; who will review the Final Certification Audit Summary Report & the Audit Package submission.

· KRSB present Final Certification Audit Summary Report to KRSB CDP [Certification Decision Panel] for decision on MSPO Certification

· KRSB CDP [Certification Decision Panel] shall perform the Certification Audit Summary Report Audit Package Review and decide / recommend / agrees to Award Certificate [within 1 month]

· KRSB communicate to Client the Certification Audit Summary Report.

10. 

Award of MSPO Certificate

In this process:

· KRSB Award Client with MSPO Certificate for Oil Palm Management; signed by Executive Chairman.

11. 

Surveillance Audit Year 1 to 4

Surveillance Audits / visits shall occur at least annually [for 4 consecutive years] and each routine surveillance visit is to be conducted not more than 12 months from the certification date. Surveillance Audits shall include on-site Auditing of the Certified Client’s fulfilment of specified requirements with respect to the standard to which the certification is granted.

The purpose of the continued surveillance visit is to ensure continuing compliance of the Client with the appropriate Standard and for KRSB to maintain confidence that the client’s certified management system continues to fulfil requirements between recertification audits. The programme of surveillance shall ensure that all elements of the Certified Client management system are assessed over a five-year period.

The conduct of the surveillance assessment is similar to that of Stage 2 audit and shall be conducted on-site i.e., it consists of an opening meeting, assessment and closing meeting. However, it is undertaken on a selected sample of the company’s activities. Surveillance activities may include:

a) enquiries to the certified client on aspects of certification;

b) reviewing any certified client’s statements with respect to its operations (eg, promotional material, website);

c) requests to the certified client to provide documented information (on paper or electronic media);

d) other means of monitoring the certified client’s performance (i.e., interview with management staff, workers’ understanding on certification).

The following shall be included in all surveillance visits:

a. A review of actions taken on non-conformities identified during the previous audit  

b. The Internal Audit and management review are planned and performed annually [within the 12 months] as minimum. The effective implementation on those actions arising shall be established

c. Customer complaints handling (record and remedial actions)

d. Corrective and preventive actions, and progress of planned activities aimed at continual improvement

e. Continuing operation control

f. Effectiveness of the management system with regard to achieving the certified client’s objectives and the intended results.

g. Use of marks and / or any other reference to certification.

h. Review of any changes

Surveillance Audit Process

In this process:

a) KRSB notify Audit Program to Client

b) Client accepts Audit Program & Auditors

c) KRSB communicate Audit Plan to Client

d) KRSB conduct Surveillance Audit

e) KRSB document Surveillance Audit Notes / Checklist and issue Audit Finding Report

f) Client acknowledges Audit Findings

g) Client takes corrective actions on Audit Findings [NC Non-conformance] Report

h) Client communicates to KRSB [using Audit Findings Report] on corrective action taken [within agreed time frame not exceeding 3 months after Surveillance Audit date]

i) KRSB close out NC using Audit Findings Report within 2 [two] weeks after receipt of client’s submission

j) KRSB Lead Auditor Recommendation on MSPO Certificate / Certification maintenance.

Post Surveillance Audit & Certification Decision Process

In this process:

a) KRSB documents Surveillance Certification Audit Summary Report [within 1 month after Surveillance Audit date or 2 weeks after successful verification on corrective action taken to address Non-Conformance Findings / Report]

b) KRSB appoint the CDP [Certification Decision Panel]; who will review the Final Certification Audit Summary Report & the Audit Package submission.

c) KRSB Lead Auditor present Surveillance Certification Audit Summary Report & Audit Package to KRSB CDP [Certification Decision Panel] for review & decision on MSPO Certification

d) KRSB CDP [Certification Decision Panel] shall perform the Audit Package Review and decide / recommend / agrees to maintain / continue Client’s MSPO Certificate [within 1 month]

e) KRSB communicate to Client the Surveillance Certification Audit Summary Report; and inform the Client on maintenance and continuation of MSPO Certification by letter signed off by KRSB Executive Chairman.

12. 

Recertification

The purpose of Recertification audit is to perform a periodic reassessment and to confirm the continued effectiveness of the client management system, its continued compliance with standards and review any significant changes made to the management system or other normative documents. This shall be planned and conducted in due time to enable for timely renewal before the certificate expiry date.

A recertification audit is conducted on client at site normally 3-6 months before the fifth anniversary of their registration and at five-year period thereafter.

The recertification activity shall include the review of previous surveillance audit reports and consider the performance of the management system over the most recent certification cycle.

Recertification audit activities may need to have a Stage 1 [documentation review off-site] in situations where there have been significant changes to the management system, the organization, or the context in which the management system is operating [e.g., changes to legislation]. The client may be required to submit the latest documentations based on the changes made to their management system.

In the case of multiple sites or certification to multiple management system standards being provided by KRSB, the planning for the audit shall ensure adequate on-site audit coverage to provide confidence in the certification. KRSB shall prepare the Audit Plan and submitted to client before the Recertification audit date.

The recertification audit by KRSB shall include an on-site audit that addresses the following:

a) The effectiveness of the management system in its entirety in the light of internal and external changes and its continued relevance and applicability to the scope of certification

b) Demonstrated commitment to maintain the effectiveness and improvement of the management system in order to enhance overall performance

c) The effectiveness of the management system with regards to achieving the certified client’s objectives and the intended results of the respective management system.

The Recertification Audit shall also include the following:

a) Verification that all clauses of the Standard have been reassessed over the preceding five years period and where this has not occurred, a reassessment of clauses that have been missed.

b) A review of any major non-conformities found during the preceding 5-year period and the resulting corrective and preventive action.

c) A review of minor non-conformances that have been found over the preceding 5-year period.

d) A review of the client’s analysis of the audit findings and management review.

e) Stakeholder consultation shall be carried out to ensure continued compliance with the requirements of the certification standards as per ACB OPMC-4.

f) A re-evaluation of the client’s documented management system to ensure the effective interaction between all elements of the system.

During the recertification audit, instances of non-conformity or lack of evidence of conformity are identified. KRSB shall ensure that correction and corrective actions to be implemented 30 days prior to the expiration of certification. All NCs must be closed out before any decision for recertification is granted. Any adverse trends in the occurrence of non-conformance or other concerns shall be documented.

For any major non conformity, KRSB shall define time limits for correction and corrective actions. These actions shall be implemented and verified prior to expiration of certification.

When recertification activities are successfully completed prior to the expiry date of the existing certification, the expiry date of the new certificate can be based on the expiry date of the existing certification. The issue date on a new certificate shall be on or after the recertification decision.

If KRSB has not completed the recertification audit or the verification for the implementation of corrections and corrective actions for any major non-conformity had not been able to be conducted prior to the expiry date of the certification, then recertification shall not be recommended and the validity of the certification shall not be extended. The client shall be informed and the consequences shall be explained to the client

Following expiration of certification, KRSB can restore certification within 6 months provided that the outstanding recertification activities are completed. Otherwise, at least a Stage 2 audit shall be conducted. The effective date on the certificate shall be on or after recertification decision and the expiry date shall be based on prior certification cycle.

In making recommendations for recertification, KRSB Lead Auditor shall consider:

a) Number of major non-conformances over the preceding 5 years

b) Repeated minor non-conformances against the same clause of the Standard

c) Failure to implement effective preventive and corrective actions in a timely manner

d) Results of the review of the system over the period of certification and customer complaints received from users of certification.

Recertification Process

KRSB will determine / decide on the details of the recertification process upon review of Client’s existing management system; and in so doing will interact and discuss with client before final decision is made.

The Recertification Process shall / may include all or any combination of the following:

I. 

Application for MSPO Recertification

In this process:

d) Client will apply for MSPO Certification using KRSB MSPO Application form.

e) Client will fill up Questionnaires for Self-Assessment form

f) KRSB will acknowledge Client’s application

II. 

Application Review, Acceptance & Agreement

In this Process:

e) KRSB will perform Quotation Contract Review

f) Client will fill up and sign the Application Declaration form

g) KRSB & Client will enter into a formal contract on MSPO Certification Services by signing the KRSB Quotation & Certification Agreement

h) A 5 Year Audit Program will be issued to Client upon signing of the KRSB Quotation & Certification Agreement

III. 

Recertification: Stage 1 Audit

Note: If Stage 1 Audit is required

In this process:

a) KRSB notify Audit Program to Client

b) Client accepts Audit Program & Auditors

c) KRSB communicate Audit Plan to Client

d) KRSB conduct Stage 1 Audit

e) KRSB document Stage 1 Audit Summary Report and Audit Findings

f) Client acknowledges the Stage 1 Audit Summary Report and takes corrective actions on Audit Findings Report

g) KRSB close out Audit Findings Report

h) KRSB Lead Auditor Recommendation for Stage 2 Audit

i) KRSB plan for Stage 2 in consultation with Client

IV. 

Recertification: Stage 2 Audit

In this process:

a) KRSB issue Public Notification [30 days prior to Stage 2 Audit] at www.kebalresources.com.my

b) KRSB notify Audit Program to Client

c) Client accepts Audit Program & Auditors

d) KRSB communicate Audit Plan to Client

e) KRSB conduct Stage 2 Audit

f) KRSB document Stage 2 Audit Notes / Checklist and issue Audit Finding Report

g) Client acknowledges Audit Findings

h) Client takes corrective actions on Audit Findings [NC Non-conformance] Report

i) Client communicates to KRSB [using Audit Findings Report] on corrective action taken [within agreed time frame not exceeding 3 months after Stage 2 Audit date]

j) KRSB close out NC using Audit Findings Report within 2 [two] weeks after receipt of client’s submission

k) KRSB Lead Auditor Recommendation on MSPO Certification

V. 

Draft Certification Audit Report

In this process:

· KRSB document the Draft Certification Audit Summary Report [within 1 month after completion of Stage 2 or 2 weeks after successful verification on corrective action taken to address Non-Conformance Findings / Audit Findings Report]

VI. 

Peer Review of Draft Audit Report

In this process:

d) KRSB submit Draft Certification Audit Summary Report to Peer Reviewers for review & comments

e) Peer Reviewers response / submit Review Report to KRSB within 2 weeks

f) KRSB incorporate Peer Reviewers comments into Draft Certification Audit Summary Report within 1 week.

VII. 

Client Review of Draft Audit Report

In this process:

c) KRSB communicate to Client the Draft Certification Audit Summary Report incorporating Peer Reviewers comments.

d) Client submits / revert comments to KRSB [if any] within 2 weeks

VIII. 

Final Recertification Audit Report

In this process:

· KRSB document Final Certification Audit Summary Report [incorporating Peer Reviewers & Clients comments and recommendation for Certification [within 1 week] upon receipt of Client’s review / comments.

IX. 

Recertification Decision

In this process:

a) KRSB appoint the CDP [Certification Decision Panel]; who will review the Final Certification Audit Summary Report & the Audit Package submission.

b) KRSB present Final Certification Audit Summary Report to KRSB CDP [Certification Decision Panel] for decision on MSPO Certification

c) KRSB CDP [Certification Decision Panel] shall perform the Audit Package Review and decide / recommend / agrees to Award Certificate [within 1 month]

d) KRSB communicate to Client the Certification Audit Summary Report.

X. 

Award of MSPO Certificate [Recertification]

In this process:

· KRSB Award Client with MSPO Certificate for Oil Palm Management; signed by Executive Chairman.

1. 

General Conditions

a) Certification Audit of Client’s management system shall be performed on the basis of the requirements of applicable standards.   

b) MSPO MS2530

The audit program shall include a two-stage initial audit [stage 1 & stage 2]; surveillance audits in the first, second, third & fourth years, and a recertification audit in the fifth year prior to expiration of certificate.   

c) Client shall make all necessary arrangements for the conduct of the audits, including provision for examining documentation and access to all processes and areas, records and personnel for the purpose of initial certification, surveillance, recertification and resolution of complaints.

d) Client shall make provisions, where applicable, to accommodate the presence of observers (e.g., accreditation auditors or trainee auditors).

e) Client shall comply with certification requirements.  

f) Client shall agree to release audit report information to regulators.  

g) Certificates:

Certificates of conformity issued by KRSB shall be the property of KRSB and that these shall be returned to KRSB if and when the certificate is withdrawn.

h) Client  shall  agree  to  inform  KRSB  any  changes  with  respect  to  Management  System,  Organizational  change  including  Legal,  Commercial, Organisational status, ownership, Changes in personnel like managerial, decision making and Technical staff, change of  location  or address  or site,  changes in  the certified  scope  and  any  major  changes  in  management  system  and  processes including  additional or deletion of processes / activities, fatal incidents, serious injuries, occupational disease or legal action by a regulatory  authority and KRSB will take the appropriate action. Any such issues related to OHS findings by any third party shall be brought into notice of KRSB during Surveillance or Re-Certification Audit.  

i) Certification is granted and maintained based on the limited sampling audit and KRSB shall not be responsible for the client's failure to maintain the implemented documented system.   

j) Client shall warrants and covenants with KRSB that it will, at all times, during the subsistence of the Agreement  comply with all KRSB requirements necessary for the issuance of the Certificate of Registration including (but without prejudice to the  generality thereof) all statutes, rules, regulations issued by any statutory or other competent authority, all recommendations, codes and  similar matters issued by any authority, pursuant to which in compliance of  which or for the purpose of  which the Certificate of  Registration is issued or such other reasonable requirements of KRSB as are necessary to enable the Certificate of Registration to be  issued and maintained in force in conformity with KRSB's Accredited Quality System Certification Scheme Regulations.  

k) Client shall ensure that the information provided to KRSB by the organization, relevant to its management system is kept updated and it shall promptly notify KRSB of any intended change in its Management system which would significantly affect the effective implementation of its management system. Changes such as contact address and sites, legal status, scope of Certification, organizational structural changes need to be communicated to the KRSB  

l) Client shall not use or present the use of certification document in a misleading manner or make such statements.  

m) Client shall amend all advertising matter when the sector and scope of certification has been reduced  

n) Client shall not allow reference to its management system certification to be used in such a way, as to imply that KRSB has certified a product or services or process  

o) Client shall not imply that the certification applies to activities that are outside the sector and scope of certification.   

p) Client shall not use its certification in such a manner that would bring the certification body and/for certification system into disrepute or loose public trust.  

q) Client shall inform KRSB without delay, of matters that may affect the capability of the management system to continue to fulfil the requirements of the standard used for certification. These include, for example, changes relating to the legal, commercial, organizational status or ownership, organization and management (e.g.  key managerial, decision-making or technical staff), contact address and sites, scope of operations under the certified management system, and major changes to the management system and processes. KRSB shall review the changes and may conduct the audit to verify the changes.

r) Client shall allow the Accreditation Board Assessors with or without KRSB Audit Team to verify the relevant documents and records maintained for particular Management System Certification; the information about the audit will be provided well in advance.  

s) KRSB may at any time, refuse to issue a certificate or suspend or cancel such certificate in circumstances where, in KRSB’s opinion, compliance with the specified standard/ specification (including not meeting the regulatory requirements) is not maintained on continuous basis or conditions of the contract [Certification Agreement] are not met. In case of cancellation, the customer’s name shall be removed from the register of certified companies and such information may be available to public.

2. 

Use of Logo & Certification Marks

These rules explained how KRSB Logo / Certification Mark shall be used; and conditions for its use.

KRSB Logo / Certification Mark

a) All Clients whose management system has been certified by KRSB are entitled to use  the Logo / Mark of KRSB. Right to use Logo / Mark is granted; however, its use is subject to restrictions.

b) Certified Clients may use Logo / Mark in literature, stationery and advertising.

c) KRSB Logo / Mark may be used on its own or in combination with the accreditation mark / logo which appear on the management system certificate issued to the client. However, the Mark used shall clearly reflect the management system for which the client had been certified.

d) Logo/Marks shall not be used during the period of suspension / withdrawal of certificate and shall be discontinue from all its advertisement material that’s contains a reference to certification.

e) Certified Clients shall not apply marks to laboratory test, calibration or inspection reports, as such report are deemed to be products in this context.

f) Logo / Mark shall not be used on flags, vehicles and the exterior walls of buildings.

g) Logo / Mark shall not be used on a product or product packaging seen by the consumer or in any other way that may be interpreted as denoting product conformity  

h) Use of KRSB and accreditation body logo / mark on any test report or certificate is not allowed stating/indicating that the tests are approved.  

i) Certified Clients shall not use logo / mark of KRSB or Accreditation Body in such manner as to bring KRSB or to Accreditation Body into disrepute and not to make any misleading or unauthorized statement or incorrect references (such as claiming certification of locations/ activities/ sites not covered in the scope) with respect to their certification.  

j) Certified Client shall not use certification/ accreditation logos / marks to indicate that the product or service is certified by KRSB.   

k) Certified Client shall not use or permit the use of a certification document or any part thereof in a misleading manner  

l) Certified Client shall ensure compliance to these above requirements while making reference to its registration or use of certification logo/ mark in communication media such as documents, brochures or advertising.

m) KRSB shall exercise full control of ownership and shall take action to deal with incorrect references to certification status or misleading use of certification documents, logo / marks or audit report. Such action may include requests for correction and corrective action, suspension, withdrawal of certification, publication of the transgression and if necessary, legal action.

n) The use of KRSB name, logo / marks or any intellectual property, under any circumstances, without prior written approval of KRSB Executive Chairman is strictly prohibited.

o) Use of statement making reference to Certification

The use of any certification marks on products is strictly prohibited. This prohibition will include all primary and secondary packaging. Nevertheless, client whose management system had been certified by KRSB is entitled to use a statement on product packaging or in accompanying information that it has a certified management

system. Product packaging is considered as that which can be removed without the product disintegrating or being damaged. Accompanying information is considered as separately available or easily detachable. Type labels or identification plates are considered as part of the product. The statement shall in no way imply that the product, process or service is certified by this means.

Where such a statement is used, it shall include reference to:

i) identification (e.g. brand or name) of the certified client;

ii) the type of management system and the applicable standard;

iii) the Certification Body issuing the Certificate

Example of a statement that can be used is as below:

“Produced by XYZ Sdn. Bhd. whose management system is certified to MSPO 2530:…… by Kebal Resources Sdn Bhd

p) Management system certification Mark when used with MSPO Scheme Owner Logo & Accreditation Body Mark is illustrated / depicted as below; [diagram not drawn to proportion] :

Notes [Traceability back to KRSB]:

• PART [2/3/4]: refers to Part 2 or 3 or 4 of (Malaysian Sustainable Palm Oil (MSPO)) scheme and the sectors to be assessed; PART 2: General Principles for independent smallholders. PART 3: General Principles for oil palm plantations and organized smallholders, PART 4: General principles for palm oil mills

• The numeric identification XXXX in the standard refers to year of revision of the

standard. Client is required to confirm the revision number of the standard by referring to the latest version of the certificate issued by KRSB.

• The alpha-numeric identification KRMC000000 in the Certificate No [example KRMC010322] refers to the certification number of the certified client certificate.

KRMC [Kebal Resources MSPO Client] is unique identification [ID] for every KRSB Client; 010122 is referred as 01: Client No, 03: month of certification, 22: year of certification.Client is required to confirm the Cert No. by referring to the latest version of certificate issued by KRSB

3. 

Granting Initial Certification

KRSB Certification Decision Panel (CDP) shall be responsible for making the formal and final certification recommendations / decision on granting initial certification; and this decision would be made upon complete review of the Final Certification Audit Summary Report and Audit Package. In reviewing the Audit Report / Audit package the CDP should ensure that:

· The information provided by the Audit team is sufficient with respect to the certification requirements and the scope of certification.

· For any major nonconformities it has reviewed, accepted and verified the corrections and corrective actions

· For any minor nonconformities it has reviewed and accepted the clients plan for corrections and corrective actions

The process of granting initial certification shall include:

· KRSB Lead Auditor document Final Certification Audit Summary Report [incorporating Peer Reviewers & Clients comments and recommendation for Certification]

· KRSB Certification Division compile the Audit Package

· KRSB appoint the CDP to review the Certification Audit Summary Report and Audit Package

· Final Certification Audit Summary Report / and Audit package is presented to CDP [Certification Decision Panel] for decision on MSPO Certification

· CDP [Certification Decision Panel] perform the Audit Package Review and decide / recommend / agrees to Award Certificate

· KRSB Award Client with MSPO Certificate for Oil Palm Management; signed by Executive Chairman.

4. 

Granting Recertification / Renewing Certification

KRSB shall make decisions on renewing certification based on the results of the Recertification Audit, as well as the results of the review of the system over the period of certification and complaints received from users of certification.

KRSB Certification Decision Panel (CDP) shall be responsible for making the formal and final certification recommendations / decision on granting recertification; and this decision would be made upon complete review of the Final Certification Audit Summary Report and Audit Package. In reviewing the Audit Report / Audit package the CDP should ensure that:

· The information provided by the Audit team is sufficient with respect to the certification requirements and the scope of certification.

· For any major nonconformities it has reviewed, accepted and verified the corrections and corrective actions

· For any minor nonconformities it has reviewed and accepted the clients plan for corrections and corrective actions

The process of granting recertification shall include:

· KRSB conduct recertification audit.

· KRSB Lead Auditor document Final Certification Audit Summary Report [incorporating Peer Reviewers & Clients comments and recommendation for Certification]

· KRSB Certification Division compile the Audit Package

· KRSB appoint the CDP to review the Certification Audit Summary Report and Audit Package

· Final Certification Audit Summary Report / and Audit package is presented to CDP [Certification Decision Panel] for decision on MSPO Certification

· CDP [Certification Decision Panel] perform the Audit Package Review and decide / recommend / agrees to Award Certificate

· KRSB Award Client with MSPO Certificate for Oil Palm Management; signed by Executive Chairman.

5. 

Refusing Certification

The following are instances when / where KRSB may refuse certification:

1. The Application Review, Acceptance & Agreement is the 1^st instance where KRSB shall decide whether to proceed or refuse certification. The document used to make decision to proceed or refuse certification is the Quotation Contract Review.

In this Process:

a) KRSB will perform Application / Quotation Contract Review.

b) If the application is rated unsuccessful KRSB will write to inform client of the review results with reasons why the client’s application is unsuccessful.  

Some of the factors that may be reason for refusing certification could be the following:

· Unavailability of competent auditors

· Evidence of ambiguity or unclarity in land ownership from which dispute may arise; affecting certification

· Refusal or inability of applicant to provide full information as required in the application form

· Evidence of applicant’s being under suspension or action being taken by authorities or other certification bodies. Etc.

2. KRSB may also at any time, refuse to issue a certificate or suspend or cancel such certificate in circumstances where, in KRSB’s opinion, compliance with the specified standard/ specification (including not meeting the regulatory requirements) is not maintained on continuous basis or conditions of the contract [Certification Agreement] are not met. This refusal may happen at any stages of the certification cycle; and the process of refusal shall be:

a) KRSB conduct Audit package / Certification review of Client

b) Reviewer / [CDP] Certification Decision Panel recommend / decide on refusal of certification

c) KRSB issue letter of notification of refusal of certification to client.

d) Client to respond in writing to letter of notification of refusal of certification to KRSB

e) If a satisfactory response is not received within 14 days of the date of recorded dispatch of notification of refusal of certification, KRSB concludes the refusal through a confirmation letter.

6. 

Maintaining Certification

KRSB shall maintain certification based on demonstration that the client continues to satisfy the requirements of the management system standard. It may maintain a client’s certification based on a positive conclusion by the audit team leader without further independent review, provided that:

a) For any non-conformity or other situation that may lead to suspension or withdrawal of certification, KRSB has a system that requires the audit team leader to report to KRSB the need to initiate a review by appropriately competent personnel, different from those who carried out the audit, to determine whether certification can be maintained.

b) Competent personnel of KRSB shall monitor its surveillance activities, including monitoring the reporting by its auditors, to confirm that the certification activity is operating effectively.

The formal process of maintaining certification is the conduct of the surveillance audit.

In this process:

a) KRSB conduct surveillance audit

b) KRSB documents Surveillance Certification Audit Summary Report [within 1 month after Surveillance Audit date or 2 weeks after successful verification on corrective action taken to address Non-Conformance Findings / Report]

c) KRSB appoint the CDP [Certification Decision Panel]; who will review the Final Certification Audit Summary Report & the Audit Package submission.

d) KRSB Lead Auditor present Surveillance Certification Audit Summary Report & Audit Package to KRSB CDP [Certification Decision Panel] for review & decision on MSPO Certification

e) KRSB CDP [Certification Decision Panel] shall perform the Audit Package Review and decide / recommend / agrees to maintain / continue Client’s MSPO Certificate [within 1 month]

f) KRSB communicate to Client the Surveillance Certification Audit Summary Report; and inform the Client on maintenance and continuation of MSPO Certification by letter signed off by KRSB Executive Chairman.

7. 

Suspending Certification

Certification by KRSB may be suspended for a variety of reasons including:

a) Voluntary cessation (by the client) of the operation of the clients’ certified management system, for whatever reason, e.g., moving of premises, staff shortages etc.

b) The management system adopted by the client has persistently or seriously failed to meet the certification criteria and has shown itself to be incapable of being effective

c) The client has not permitted KRSB to conduct surveillance/re-assessment activities when such activities are required

d) When no visit to the head office of the client has taken place within 18 months of the previous visit due to client’s refusal of such visit. In cases of persistent breach by the Client on the Certification Agreement or prolonged delays to the performance of visits, the client’s certification may be considered for immediate withdrawal.

Under such a suspension, KRSB will advise the client that they must not make any claims to the effect that their system is certificated. Under suspension, the client’s management system certification is temporarily invalid.

KRSB may also place notice on its website that the client’s certification is in suspension and take any additional actions it feels appropriate to advise other parties. On a monthly basis, KRSB will review the status of each client which is in a state of suspension, to ensure that the period of suspension has not exceeded its maximum period of 6 months.

A reminder letter/email is sent on at least a bi-monthly basis, to reiterate to the client their continued suspended status using Notice of Suspension. Should the maximum suspension period be approached, the client will also be advised on when withdrawal of certification will commence.

The process shall include:

a) KRSB issue Notice of Suspension to Client

b) Client to respond to Notice of Suspension

c) Monthly review by KRSB on Client status of suspension

d) KRSB issue reminder letter/email to client bi-monthly basis, to reiterate to the client their continued suspended status.

e) If suspension issues not resolved, KRSB issue Notice of impending withdrawal of certification.

f) Upon date of maximum suspension period KRSB issue Letter of withdrawal of certification to Client.

8. 

Restoring Certification

Client can restore the certification within 6 months of the suspension after complying with all the conditions by which the certificate was suspended.  

The suspended certification shall be restored if the issue that has resulted in the suspension has been resolved. Failure to resolve the issues that have resulted in the suspension in a time established (not more than 6 months) shall result in withdrawal or reduction of the scope of certification.  

The process shall include:

a) KRSB issue Notice of Suspension to Client

b) Client to respond to Notice of Suspension

c) Review by KRSB on Client status of suspension

d) Based on review, KRSB confirmed all issues / reason for suspension had been resolved

e) KRSB issue letter of restoration of certification to client.

9. 

Withdrawing Certification

Certification shall be withdrawn due to:

a) where a client’s management system demonstrates significant nonconformity with the audit standard or planned arrangements and a failure in its ability to react to and correct the nonconformities in a timely manner.

b) Failure of the client to pay KRSB invoices for services provided within the agreed payment terms & conditions.

c)  Failure of the client to provide KRSB auditors access to the certified facility for audit purposes may also result in withdrawal of the certification.

d) Serious breaches and failure of Client to comply with Certification Agreement

The process shall include:

a) Review by KRSB on Client status of suspension

b) Based on review, KRSB confirmed all issues / reason for suspension had not been resolved and cannot be resolved.

c) KRSB issue letter of Notification of Withdrawal to client.

d) Client to respond in writing to letter of Notification of Withdrawal to KRSB

e) If a satisfactory response is not received within 14 days of the date of recorded dispatch of Notice of Withdrawal, KRSB concludes the withdrawal of certificate through vision.

In most cases, withdrawal will be preceded by a suspension of the certification but in cases of severe nonconformity or failure of the client to cooperate, withdrawal may occur immediately.

If a formal appeal is made, then procedure Appeals is invoked (KRSB-M06 Complaint and Appeals)

In the case of a client certificate being withdrawn by KRSB or voluntarily cancelled by the client during the certification period, KRSB shall ensure that de-certification information is forwarded to the same external publications in which the original certification was announced. Information shall include the company name, address, withdrawn/cancelled certificate number(s), the withdrawal/cancellation date and the (formerly) applicable standard(s).

Under the withdrawal of Certification, the organization shall return the original certification and other related documents. Upon suspension and withdrawal of certification, the client organization shall discontinue its use of all advertising matter that contains reference to certification as directed by KRSB.

10. 

Voluntary withdrawal

· Client may request for suspension / withdrawal of certificate on temporary basis if they feel that their existing system does not comply / conform to the requirements of the standard

The process shall be:

a) Client request [in writing] for suspension / withdrawal of certificate on temporary basis

b) KRSB review the request and inform client of KRSB decision in writing.

11. 

Expanding the Scope of Certification

In response to an application for expanding the scope of a certification already granted, the application shall be reviewed by KRSB; and determine any audit activities necessary to decide whether or not the extension may be granted. This may be conducted in conjunction with a surveillance audit or independent audit.

The process shall be:

a) Client applies to KRSB on expansion of scope of certification

b) KRSB review application to determine any audit activities necessary; and decide whether or not the extension may be granted

c) KRSB conduct Audit activities [if necessary]

d) KRSB grant expansion of scope of certification; in writing to client.

12. 

Reducing the Scope of Certification

When the certified client has persistently or seriously failed (MAJOR findings) to meet the certification requirements for those parts of the scope of certification, the scope of certification shall be reduced to exclude the parts not meeting the requirements. Reduction of scope shall be in line with the requirements of the standard used for certification.

The process shall include:

a) KRSB conduct review of client’s Certification Audit Reports; and major nonconformance in Audit findings

b) Based on review, KRSB makes decision on reduction of scope

c) KRSB issue letter of Notification on reduction of scope to client.

d) Client to respond in writing to letter on reduction of scope to KRSB

e) If a satisfactory response is not received within 14 days of the date of recorded dispatch of letter on reduction of scope, KRSB inform client in writing on reduction of scope.

13. 

Appeal

a) Client organization have the right to appeal against any decision taken by KRSB.

b) For complaint in the form of disputes which cannot be resolved by both parties especially pertaining to certification decision, then client have the right to appeal.  

c) The details of the Client’s appeal shall be in writing and forwarded to an independent Appeals Committee which shall convene and handle the matter in a fair and impartial manner.

d) Exact details of the appeals handling are defined in relevant procedure [KRSB/MSPO/M06 Complaints & Appeal]. Where the appeal involves extremely confidential issues, the appellant is allowed to present his/ her case directly to the Appeals committee. 

e) Once the Appeals Committee has made its final decision, client shall be informed of the Findings results and outcome of the appeal and decision is final.

14. 

Complaints

a) Client Organisation has the right to complain against assessment / findings on decisions taken by KRSB auditor / independent auditor. The complaint shall be in writing and an independent investigation shall be carried out KRSB and the findings of the complaint will be intimated to client organisation.

b) Complaints received verbally and officially from client shall be recorded. A confirmation and progress report shall be made to the client, until final outcome is known. Submission, investigation and decision on complaint shall not result in any discriminatory actions against the complainant.  Any complaint made shall be treat as confidential. The details of the complainant shall not be exposed.

c) KRSB shall be responsible for all decisions at all levels of the complaint-handling process. KRSB shall ensure that the persons engaged in the compliant-handling process is different from those who carried out the audits and made the certification decisions.

d) The Complaint shall then be submitted to KRSB for complete investigation to ensure the validity of complaint. If it is valid, KRSB shall take appropriate correction immediately and implement corrective / remedial action to prevent from recurrence. This shall be considered as the formal end of the complaint process. If needed to make public this should be discussed with the client.

e) Results of investigation including action taken shall be reported to client and its status updated by KRSB to ensure complainant is well informed on the status of the complaint. Any complaint about a certified client shall be referred by KRSB to the certified client in question at an appropriate time within 30 days. 

f) KRSB shall determine, together with the client and the complainant, whether and, if so to what extent, the subject of the complainant and its resolution shall be made public.

15. 

Terms of Payment

a) Postponement of confirmed on-site audit dates may result in charges up to 50 percent of scheduled on-site assessment plus all pre-paid expenses.   

b) In the event an account is not paid or otherwise resolved within 30 days after the date of invoice, Thereafter, interest will be become chargeable on the outstanding amount @ 18% per annum. KRSB may at its option:   

i. Refuse any further consideration of the agreement,

ii. Not issue a certification document or   

iii. Terminate the agreement with reasons in writing   

c) Fees and expenses incurred by KRSB in connection with collecting past due accounts shall be the responsibility of the organization.

d) Certificate of Registration will only be issued upon successful assessment and when the outstanding invoices have been settled   

e) Fees for special Surveillance visits, as and when, required to be made to the Organizations premises, will be specifically quoted and charged, separately.   

f) Travel expenses of Assessment staff will be charged at actual from KRSB nearest office.

g) Boarding and lodging expenses shall be charged at actual where the assessment staff is required to travel overnight.

16. 

Rights and Duties of Client Organization

a) Client shall provide to the KRSB all documents, information and facilities at sites as required, to enable KRSB to provide its services under the Certification Agreement and sites will be audited as per the sample plan prepared by KRSB.   

b) The organization agrees to comply with relevant provisions of the provision of the standard and certification requirement for which the certificate is applied, with the requirements for certification-granting, maintaining, reducing, extending, suspending, withdrawing certification and recertification If the organization has multiple sites the agreement shall cover all the sites covered by the scope of the certification.   

c) KRSB can select any accredited client for witness audit. The client shall permit for the witness audit and allow the accreditation body assessors to assess the competency of the KRSB auditor. There shall be no additional charges for witness audit and all the expenses shall be borne by KRSB.   

d) Due to any circumstances whatsoever, KRSB can visit the client any time and if this visit is not for the purpose of Surveillance or follow-up audit, then fees shall be charged.   

e) When requested, client shall make available all documents including complaint and related matters to KRSB.

f) KRSB shall not be liable for any loss or damage due to any failure or delay in performance of the certification agreement resulting from any cause beyond our reasonable control, compliance with applicable regulations or directive of national, state or local governments is the responsibility of the client.   

g) Client will agree to ensure that the auditors/ assessors are properly briefed about health, safety and other necessary safety hazards that they may encounter during the audits. Client will be responsible for providing them with the personnel protective / safety equipment during the audits.   

h) After the signing of agreement, if the applicant wishes to cancel it, the advance or any other charges paid shall not be refundable. Liability of KRSB is limited to a maximum of amount equivalent to the fees paid by the client.

i) Client shall agree to allow and give access to Auditors and /or Certification personnel or observer to carry out any auditing activity, inspection or investigation against any complaint  

j) Client shall warrant the completeness and accuracy of all documents and accuracy of all information supplied to KRSB.  

17. 

Short Notice Audit  

It may be necessary for KRSB to conduct audits of certified clients at short notice to investigate complaints or in response to changes or as follow up on suspended clients, in such cases as:

a) KRSB shall describe and make known in advance to the certified clients the conditions under which these short notice visits are to be conducted (via email, phone call or electronic media)

b) KRSB shall exercise additional care in the assignment of the audit team because of the lack of opportunity for the client to object to audit team members.

c) KRSB conduct audits of certified clients at short notice or unannounced audit to investigate complaints after ensuring that it belongs to KRSB, or in response to changes (Legal status, Organisation and management, address and sites, scope, major changes to management system and processes, fatal accidents or a legal action by any regulatory authority) OR as follow up on suspended clients   

d) In either of such cases KRSB will describe and make known in advance to the certified clients on the following aspects:  

· Certification process as described in the website

· normative requirements of certification  

· information about the applicable fees  

· Any changes in the accreditation rules affecting their certification  

· Any change in the standards  

· to make all necessary arrangements as per the requirements of KRSB certification procedure  

· Accommodate Observers as needed by KRSB  

· Identifying and recording nonconformities and the need for corrective action by organizations on a timely basis for such items as incorrect references to the certification or misleading use of certification information

e) The client Company can’t refuse or reject or make any objection for the Auditor or the Audit Team in case of short notice Audit.

18. 

Liability

a) Except, in the case of deliberate neglect on the part of KRSB, its employees, servants or agents, KRSB shall not be liable for any loss or damage sustained by any person due to any act of omission or error whatsoever or howsoever caused during the performance of its assessment, certification or other services.  

b) In the case of neglect, as aforesaid, the limit of any loss, damage or otherwise, KRSB liability will be limited to an amount not exceeding the maximum fee (if any) charged by KRSB for the particular service in respect of which the neglect arose. While the restrictions on liability are considered by the parties to be reasonable in all the circumstances, if such restrictions taken together or any one of them shall be judged to be unlawful or unenforceable, then the said restriction shall apply with such words as deleted or amended or added.   

c) The provision of this clause shall not apply to any death or personal injury but the client shall maintain at all time adequate insurance sufficient to cover all liability that may arise as a result of any matter arising.

19. 

Force Majeure

· KRSB and / or client shall not be liable in any respect, should it be prevented from discharging such / any obligations as a result of any matters beyond its control which could not be reasonably foreseen by the affected party.

Such matters may include [but not limited to] war, armed conflict, terrorist attack, riots, toxic hazards, pandemics, epidemics, natural disasters, extreme weather, fire, explosion, strike, breakdown of infrastructure, or any public restrictions following any of the incidents above, or any other force majeure occurrence.

In the event of a force majeure occurrence, the affected party shall notify the other party without undue delay of the details of the situation and the estimated / projected duration. KRSB and / or client shall be entitled to terminate the Certification Agreement / contract should the force majeure occurrence persists / endure for more than ninety [90] days.

20. 

Disputes

· Unless specifically agreed otherwise, all / any dispute arising between the parties shall be settled by appointment of the sole arbitrator as / under The Malaysian Arbitration Act. Aggrieved party can challenge the award of arbitrator with 30 days of the award but the Jurisdiction area shall be Malaysia and the case can be filed in the competent court of Malaysia only.