Fairtrade Standards for UK Operators In four parts Part 2

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2.5. Registration and licensing fees THIS SECTION APPLIES TO ALL REGISTERED OPERATORS Foundation Policy: The Foundation has the necessary financial stability and resources required for the operation of certification activities and funds its activities through the levy of a licence fee proportional to the sales of Fairtrade certified products using the Mark or other registration fees as appropriate. Fees for Operators using the Mark on finished products 2.5.01 The Operator shall pay the fee for use of the Mark based on the following types of sale: Operator Type of sale Basis of the fee 1. Processor/Manufacturer/Brand owner: The company or individual that has signed the Registration, Licensing and Certification Agreement with the Foundation and is licensed to apply the Mark to certified products listed on the Schedule as Fairtrade certified products. 2. Retailer: The retail company that has signed the Registration, Licensing and Certification Agreement with the Foundation and is licensed to apply the Mark to their ‘own brand’ certified products listed on the Schedule as Fairtrade certified products. 3. In the case of a company that both sells products to retailers and also acts as a retailer in its own right selling to the end consumer Sales of finished certified products to retailers or catering outlets Net invoice value of the sales of the Fairtrade certified products NB. Clause 3.2 of the Registration, Licensing and Certification Agreement is applicable to Licensed Operators Sales of finished products to the end consumer Sales of finished certified products to retailers Sales of finished products to the end consumer Net invoice value of the purchases of the Fairtrade certified products from the suppliers* and/or The value of the retail sales less an agreed normal retail margin Net invoice value of the sales of the Fairtrade products plus Net invoice value of the purchases of the Fairtradecertified products from the suppliers* and/or The value of the retail sales less an agreed normal retail margin * In some situations, a retailer may delegate fee payment to the supplier at the discretion of the Foundation, in which case it will be based on the example 1 above. Fairtrade Foundation QMS Page 14 of 16 Date of issue Issue No. Section 4 – Fairtrade Standards – Part 2 1 September 2009 01
2.5.02 The fee is calculated by multiplying the net invoice value of the sales or purchases (as appropriate) of Fairtrade certified products (as defined in 2.5.01 above) in the following bands by the percentage for that band and adding them together: Sales of certified products Fee payable Up to £5,900 per quarter (standard rate) or £11,800 (reduced rate) Standard rate Reduced rate for 100% Fairtrade companies (see below) £100.00 per quarter (minimum fee) £100.00 per quarter (minimum fee) On the first £5 million p.a. 1.7% plus 0.85% plus On sales between £5 million and £10 million p.a. 1.6% plus 0.8% plus On sales between £10 million and £20 million p.a. 1.3% plus 0.65% plus On sales between £20 million and £40 million p.a. 0.9% plus 0.45% plus On sales between £40 million and £80 million p.a. 0.6% plus 0.3% plus On sales between £80 million and £160 million p.a. 0.4% plus 0.2% plus On sales above £160 million p.a. 0.2% 0.1% 2.5.03 To provide a launch period for new Operators, the minimum fee will apply either from the first anniversary of the commencement date, or from the first quarter in which sales of all products exceeds the value which would generate £100 per quarter in license fee, whichever is the sooner. However, during the period before the minimum fee is applicable, the standard rates of 1.7% or 0.85% will apply. Guidance: In specific cases the minimum fee may not need to be applied e.g. trading only seasonally, not trading for a period of time (please contact the Foundation for further information on this). 2.5.04 All sales into other countries outside the UK will be charged at the standard rates of 1.7% or 0.85% without the discounts based on annual sales as detailed above. 2.5.05 Raw materials or products purchased as Fairtrade certified but used in the products sold as non- Fairtrade are not subject to the licence fee provided that documentary evidence can confirm the sales as non-Fairtrade. 2.5.06 The Foundation offers a 50% reduction in the licence fee to Operators who, by applying the Mark to all products that they sell in categories covered by Fairtrade standards, demonstrate a significant and long-term commitment to Fairtrade. Guidance: Operators who think they qualify for the reduced rate should discuss their situation with their Business Development Officer at the Foundation. Fees for importing and/or wholesaling unfinished products 2.5.07 The Registered Operator shall pay the following fees: Operator Registration/certification fee Importers who only wholesale unfinished products and/or wholesalers of unfinished products Fees for distributing finished products 2.5.08 The registered distributor shall pay the following fees: Currently there is no fee charged. However the Foundation reserves the right to introduce a fee at any time. Operator Registration/certification fee Voluntary registration No fee Fairtrade Foundation QMS Page 15 of 16 Date of issue Issue No. Section 4 – Fairtrade Standards – Part 2 1 September 2009 01
Page 1 and 2: Fairtrade Standards for UK Operator
Page 3 and 4: 2.1 Registration & certification re
Page 5 and 6: The FAIRTRADE Mark can be used on u
Page 7 and 8: 2.2. Control of subcontractors THIS
Page 9 and 10: 2.3 Traceability and documentation
Page 11 and 12: 2.3.10 The Foundation may grant a t
Page 13: 2.4. Flow of Goods Reporting THIS S

Fairtrade Standards for UK Operators In four parts Part 2

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