PC FeeSysHL ED 24 en - FLO-CERT GmbH

Fee System Hired Labour 

Explanatory Document 

Effective as of: 22.12.2011 

Distribution: External

Change History: 

Version Author / Reviser Date approved Changes 

21 

Clara von 

Recklinghausen 

07.05.2010 

category of the document changed (GD ► ED); Inserted 

disclaimer; annual certification fee will always be invoiced 

by FLO-CERT even if for the one or other reason no audit 

takes place in a specific year; certification must be paid no 

matter what the certification decision will be; fee needs to 

be paid before initial audit; only the Estates audited in the 

respective year are charged; audit days onsite were 

harmonized with the ToR and Audit SOP; Inserted one 

sentence in 6.1: limited appliance for organic reduction; 

6.4: Inserted modification of fees for overtime and rest 

day; cancellation fees included; 6.5 Export Business is 

added: harmonized with Audit SOP; Appendix 2: amended 

Tea installations 

22 Arnd Zschocke 27.01.2011 

23 Clay Brown 14.04.2011 

24 Marla Naidoo 22.12.2011 

Deleted change disclaimer, included fee increase in total 

amount of fees in text and tables, removed reference to 

audit days, included general fee for exception application 

(3.4) and deleted overtime exception fee (6.4), included 

subcontractor fee, reduction of travel days deleted (6.2), 

additional auditor fee made section 10. 

Multi-Estate fees have been amended in order to maintain 

them at a level similar to the fees charged in 2010. During 

the previous revision there was a miscalculation, which led 

to the publication of a fee that if implemented would have 

been a significant reduction of the fees of all Multi-estate 

set-ups. 

1. Product Fee: Note Added that the Former Product 

Category List to be used as reference (0003328) 

2. Fee for subcontracted entities: Note added that a 

maximum of 5 entities will be invoiced (0003198) 

3. Cancellation of fees: Deleted the old explanation as this 

created the impression that the operator was being 

charged 3 times and reworded the phrase that the 

operator is expected to pay the audit costs in addition to 

the initial/annual certification fee (0003271) 

4. Application fees are non refundable (0003310) 

5. €630 charged for document follow-up audits in case of 

suspension 

6. Deleted Appendix 3 

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\\fscert-1\FLO-Cert_Filing\8. QM\8.4 Explanatory Documents\Approved Fee System Documents\PC 

FeeSysHL ED 24 en.doc 

Version: 24 / 22.12.2011

Table of Contents 

1 Introduction........................................................................................................ 4 

1.1 Definitions ...................................................................................................... 4 

1.2 Cost Structure ................................................................................................. 4 

2 Overview ........................................................................................................... 4 

3 Application Fee.................................................................................................... 5 

3.1 Application for a Fairtrade Certification (First Year) .................................................. 5 

3.2 Application for a New Product.............................................................................. 5 

3.3 Application for FLO-CERT Certification of New Estates................................................ 5 

3.4 Application for an exception from Fairtrade Standards and respective Certification 

Requirements .................................................................................................. 5 

4 Initial Certification Fee (First Year) ........................................................................... 5 

4.1 Plantation....................................................................................................... 6 

4.2 Multi Estate..................................................................................................... 7 

5 Annual Certification Fee......................................................................................... 8 

5.1 Plantation....................................................................................................... 9 

5.2 Multi Estates ................................................................................................. 10 

6 Modification of Certification Fees ........................................................................... 11 

7 Product specific Fees .......................................................................................... 12 

8 Cancellation Fees ............................................................................................... 12 

9 Follow-Up Audit Fee............................................................................................ 12 

10 Additional Auditor Fee......................................................................................... 12 

Appendices: 

Appendix 1: Product List 

Appendix 2: Processing Installations 

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1 INTRODUCTION 

The producer certification fees are applicable for all producers applying for a FLO-CERT certification 

and for all producers certified by FLO-CERT. The Initial and Annual Certification Fees cover a period 

of 12 months from the date of the initial invoice and are payable regardless of whether an audit has 

been conducted and regardless of the Certification Decision taken. 

All Fee System documents are publicly available on the FLO-CERT web page www.flo-cert.net. 

1.1 Definitions 

Plantations 

Multi Estates 

Factories 1,2 

Process Installations 

Product 

Central Structure 

Number of Workers 

are companies which structurally depend on hired labour and are prepared 

to promote workers development. A plantation is a single-estate which has 

one single production site, where one central management is responsible for 

the labour conditions of their workers. 


to promote workers development. A multi estate has more than one 

plantation/production site, but one central management is responsible for 

the labour conditions of the workers on all of the production sites. 


to promote workers development. A factory is one production site where a 

raw product is transformed into a product with higher value. 

are in the ownership of or subcontracted by the plantation where the raw or 

intermediate product is transformed into a product with higher value. 

Processing Installations relevant in these circumstances are listed in 

Appendix 2. 

is the goods which is produced or harvested by a plantation or factory. 

is the central (umbrella) organisation of a multi estate which is audited by 

FLO-CERT. 

is the number of permanent employees of a plantation, multi estate or 

factory plus the maximum number of temporal or casual employees working 

for the organization in peak season. Workers also include employees 

working in administration. 

1.2 Cost Structure 

Fees charged by FLO-CERT are considered to be flat fees including, if not otherwise indicated on the 

invoice, all costs related to the certification service of FLO-CERT and all expenses related to audits 

whether desktop or physical. 

For the calculation of the Initial Certification Fee, the version of the producer certification fee system 

in place at the date of the application evaluation decision applies. 

2 OVERVIEW 

Application and Initial Certification 

The following fees are applicable in the year of application: 

⇒ Application Fee (covering the application evaluation); 

⇒ Initial Certification Fee; and Only if necessary: Follow-Up Audit Fee 

Fairtrade Certified – Maintenance of certification status and Renewal of Certificate 

The following fees are applicable: 

1 Only applicable for the product category sports balls. 

2 For simplification reasons, factories fall under the category plantation 

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⇒ Annual Certification Fee; and 

⇒ Follow-Up Audit Fee (if necessary). 

Modifications of Fairtrade Certification 

Multi Estates adding new estates to the Fairtrade certification: 

⇒ Application Fee (application evaluation) 

Companies adding new/additional product to the Fairtrade certification: 


Companies applying for an exception from the Fairtrade Standards and respective Certification 

Requirements 


3 APPLICATION FEE 

3.1 Application for a Fairtrade Certification 

Hired labour setups applying for a Fairtrade certification are charged a flat fee of € 525 for the 

application service. Please note that application fees are non-refundable. 

Further information on the application process is available on the FLO-CERT web page 

www.flo-cert.net. 

3.2 Application for a New Product 

Fairtrade certified hired labour setups applying for a new/additional product to be traded under 

Fairtrade conditions are charged a flat fee of € 160 per product. The new product Application Fee 

applies to the products listed in Appendix 1. 

The application fee is not charged separately. It is added to the next upcoming Annual Certification 

Fee invoice. 

3.3 Application for FLO-CERT Certification of New Estates 

The New Estate Application Fee applies only to Multi Estates. 

The Multi Estate is charged a flat fee of € 160 for the application service per application (not per each 

new estate applying). The number of new estates per application is not restricted. 

The application fee is not charged separately. It is added to the next upcoming Annual Certification 

Fee invoice. 

3.4 Application for an exception from Fairtrade Standards and respective 

Certification Requirements 

For the application evaluation regarding an exception from the Fairtrade Standards and respective 

Certification Requirements FLO-CERT charges a fee of € 200. 

4 INITIAL CERTIFICATION FEE (FIRST 12 MONTHS) 

The Initial Certification Fee is charged once and has to be paid before any service is delivered 

(including the Initial Audit). 

The amount of the Initial Certification Fee depends on 

• the kind of organisation (single plantation or multi estate), 

• the number of workers or estates, 

• the number of products to be sold under Fairtrade conditions, 

• the number of processing installations and additional entities other than processing installations 

forming part of the respective product handling chain owned/subcontracted by the organisation. 

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4.1 Plantation 3 

Depending on the number of workers, products, processing installations and additional entities, FLO- 

CERT charges the following fees: 

Table 4.1.1: Initial Basic Fee 

Type of organisation Cat Indicator Total fee charged 

Plantation 

Workers 4 

A < 50 € 1,430.00 

B 50 - 100 € 2,040.00 

C 101 - 499 € 2,660.00 

D 500 - 999 € 3,270.00 

E > 1000 € 3,880.00 

Table 4.1.2: Initial Additional Product Fee 

The fee is calculated for one product. The following is charged per additional product to be traded 

under Fairtrade conditions (refer to Appendix 1): 


Plantation A Additional product € 210.00 

Table 4.1.3: Initial Processing Installation Fee 

If the Plantation runs a processing installation as defined in Appendix 2, the following is charged per 

processing installation: 


Plantation 

A 1 - 10 workers € 210.00 

B 11 - 100 workers € 410.00 

C > 100 workers € 620.00 

Table 4.1.4: Initial Fee for Subcontracted Entities 

If the Plantation has sub-contractors that are involved with the Fairtrade products of the Certified 

Operator and whose activities are controlled by contract the following is charged per subcontracted 

entity. Please note that only a maximum amount of 5 subcontractors is charged. 


Plantation 

Subcontracted entity 

A + 1 € 300.00 

3 Also factories 

4 Workers include permanent, seasonal and casual workers (seasonal and casual workers are considered as temporary workers) 

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Example: 

A flower plantation with 250 workers is applying for 1 additional product (e.g. tea) to be traded 

under Fairtrade conditions. Furthermore, the plantation runs 1 processing installation with 50 

workers. 

Type of organisation Cat Indicator Factor Individual Fee Total fee charged 

Plantation 

Workers 

C 101 - 499 x 1 € 2,660.00 € 2,660.00 

A Additional product x 1 € 210.00 € 210.00 

B 11 – 100 workers x 1 € 410.00 € 410.00 

Sum: € 3,280.00 

4.2 Multi Estate 

The Initial Certification Fee for Multi Estates is calculated on the basis of the number of estates 

affiliated. In the initial certification phase, all affiliated estates are audited and certified. 

Furthermore, the fee charged by FLO-CERT depends on the number of products, processing 

installations and additional entities. The fee comprises the following components: 

Table 4.2.1: Initial Central Structure Fee 


Multi Estate A Central Structure € 1,530.00 

If the central structure is identical with the organisation of one estate the fee for the audit of the 

respective estate is not charged. 

Table 4.2.2: Initial Basic Fee per Estate 

The fee per affiliated estate is as follows: 


Multi Estate 

Workers 5 per Estate 

A < 50 € 820.00 

B 50 - 100 € 1,020.00 

C 101 - 499 € 1,230.00 

D 500 - 999 € 1,530.00 

E > 1000 € 1,840.00 

The fees above are calculated for one product. The following is charged per additional product to be 

traded under Fairtrade conditions: 

Table 4.2.3: Initial Additional Product Fee 


traded under Fairtrade conditions. (The product categories for invoicing purposes are defined in the 

FLO-CERT Product Tree which can be found on the website under http://www.flo-cert.net/flocert/fileadmin/user_upload/certification/cost/en/20111122/CERT_ProductTree_ED_10_en.pdf) 


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Multi Estate A Additional product € 210.00 

Table 4.2.4: Initial Processing Installation Fee 

If the Multi Estate runs a processing installation as defined in Appendix 2, the following is charged per 



Multi Estate 

A 1 – 10 workers € 210.00 

B 11 - 100 workers € 410.00 

C > 100 workers € 620.00 

Table 4.2.5: Initial Fee for Subcontracted Entities 

If the Multi Estate has sub-contractors that are involved with the Fairtrade products of the Certified 


entity. Please note that only a maximum amount of 5 subcontractors is charged. 


Multi Estate 


A + 1 € 300.00 

Example: 

A citrus multi estate with 5 affiliated estates (all 500 – 900 workers) applies for 2 additional products 

(e.g. oranges and mangos) to be traded under Fairtrade conditions. Furthermore, the multi estate 

runs 2 processing installations with 20 workers each. 

Type of organisation Cat Indicator Factor Individual fee Total fee charged 

Multi Estate 

A Central Structure x 1 € 1,530.00 € 1,530.00 

C Member 500 - 999 x 5 € 1,530.00 € 7,650.00 


B > 10 Workers x 2 € 410.00 € 820.00 

Sum: € 10,420.00 

5 ANNUAL CERTIFICATION FEE 

Please note that the annual certification fee will always be invoiced by FLO-CERT even if no audit 

takes place in a specific year, as the certification continues to be valid. 

The amount of the Annual Certification Fee depends on 

• the kind of organisation (single plantation or multi estate), 

• the number of workers or estates, 

• the number of products to be sold under Fairtrade conditions and 

• the number of processing installations and additional entities other than processing installations 

forming part of the respective product handling chain owned/subcontracted by the organisation. 

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5.1 Plantation 6 

Depending on the number of workers, products, processing installations and additional entities, FLO- 

CERT charges the following fees: 

Table 5.1.1: Annual Basic Fee 


Plantation 

Workers 7 

A < 50 € 1,170.00 

B 50 - 100 € 1,610.00 

C 100 – 499 € 2,150.00 

D 500 – 1000 € 2,590.00 

E > 1000 € 3,130.00 

Table 5.1.2: Annual Additional Product Fee 





Plantation 

Additional product 

A + 1 € 180.00 

Table 5.1.3: Annual Processing Installation Fee 

If the Plantation runs a processing installation as defined in Appendix 2, the following is charged per 

processing installation. 


Plantation 

Processing Installation 

A 1 - 10 workers 7 € 90.00 

B 11 - 100 workers € 180.00 

C > 100 workers € 360.00 

Table 5.1.4: Annual Fee for Subcontracted Entities 

If the Plantation has sub-contractors that are involved with the Fairtrade products of the Certified 


entity. Please note that only a maximum amount of 5 subcontractors is charged per Contract 

Production Project. 


Plantation 


A + 1 € 300.00 

6 Also factories 


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Example: 

A flower plantation with 250 workers is certified for 1 additional product (e.g. tea) to be traded 

under Fairtrade conditions. Furthermore, the plantation runs 1 processing installation with 30 

workers. 

Type of organisation Cat Indicator Factor Individual Fee Total fee charged 

Plantation 

Workers 7 

C 100 - 499 x 1 € 2,150.00 € 2,150.00 


B > 10 Workers x 1 € 180.00 € 180.00 

Sum: € 2,510.00 

5.2 Multi Estates 

The Annual Certification Fee for Multi Estates is calculated on the basis of the number of estates 

included in the Fairtrade certification. Furthermore, the fee charged by FLO-CERT depends on the 

number of products, processing installations and additional entities. The fee comprises the following 

components: 

Table 5.2.1: Annual Central Structure Fee 


Multi Estate A Central Structure € 1,170.00 

If one organisation acts as the central structure, only the central structure fee will be charged for this 

organisation. 

Table 5.2.2: Annual Basic Fee for additional Estates 

The fee per additional estate is as follows: 


Multi Estate 

Number of Workers 8 per Estate 

A < 50 € 620.00 

B 50 - 100 € 770.00 

C 100 – 499 € 920.00 

D 500 – 1000 € 1140.00 

E > 1000 € 1380.00 


traded under Fairtrade conditions: 

Table 5.2.3: Annual Additional Product fee 





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Multi Estate 

A Additional product € 180.00 

Table 5.2.4: Annual Processing Installation Fee 

If the Multi Estate runs a processing installation as defined in Appendix 2, the following is charged per 



Multi Estate 

Processing Installation 

A 1 – 10 workers € 90.00 

B 11 – 100 workers € 180.00 

C > 100 workers € 360.00 

Table 5.2.5: Annual Fee for Subcontracted Entities 

If the Multi Estate has sub-contractors that are involved with the Fairtrade products of the Certified 


entity. Please note that only a maximum amount of 5 subcontractors is charged per Contract 

Production Project. 


Multi Estate 


A + 1 € 300.00 

Example: 

A citrus multi estate with 5 affiliated estates (all between 500 and 999 workers) is certified for 2 

additional products (e.g. oranges and mangos) to be traded under Fairtrade conditions. Furthermore, 

the multi estate runs 2 processing installations with 50 workers each. 

Type Cat Indicator Factor Individual Fee Total fee charged 

Multi Estate 

A Central Structure x 1 € 1,170.00 € 1,170.00 

D Workers 500 - 999 x 5 € 390.00 € 1,950.00 


B > 11 – 100 workers x 2 € 60.00 € 120.00 

Sum: € 3,600.00 

6 MODIFICATION OF CERTIFICATION FEES 

Certification Fees may be increased or decreased by the following factors: 

• Organisations entirely certified (not in conversion phase) by an accredited organic certifier, shall 

receive a certification fee reduced by 12%. The reduction does not apply to Application and Initial 

Certification Fees. 

• Producers exporting for other producers will be charged an additional 15% on top of their 

certification fee. 

• FLO-CERT reserves the right to charge additional costs to the certification fees if travel costs 

related to the audit exceed normal travel costs. The daily rate for additional days is 350 €. 

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In the event that any invoice adjustments are made pursuant to this section, such adjustments will be 

clearly indicated on the invoice and will reflect the actual additional costs incurred or the actual costs 

saved. 

7 PRODUCT SPECIFIC FEES 

Cotton Social Compliance: 

In case of a Cotton trader related setup/structure (e.g. subcontracted ginner) for which the 

requirements for Social Compliance apply, please also refer to the following documents. 

• TC FeeSys ED 

• TC SocialComplianceCotton ED 

8 CANCELLATION FEES 

If an audit is unilaterally cancelled or postponed by an operator less than 10 calendar days prior to the 

mutually-agreed (between the auditor and the operator) audit date, the operator will be required to 

pay another invoice equal to the amount of the initial/annual certification fee prior to the date of the 

next audit. 

If an audit is unilaterally cancelled by an operator within 30 calendar days but 10 or more calendar 

days before the mutually-agreed (between the auditor and the operator) audit date, the operator will 

be required to pay another invoice equal to 50% of the amount of the initial/annual certification fee 

prior to the date of the next audit. 

If the auditor and operator mutually agree in writing that an audit should be re-scheduled the operator 

will be charged only the travel costs (if any) that have been incurred and are non-refundable. 

In the event of force majeure, the responsible Regional Manager will decide whether the conditions 

justify a cancellation of the audit. If justified, the operator will not be required to pay any costs. 

9 FOLLOW-UP AUDIT FEE 

As part of the FLO-CERT certification process, it may be necessary to verify fundamental breaches and 

major non-conformities with the Fairtrade Standards by an onsite Follow-Up Audit. 

These Follow-Up Audits focus solely on the non-conformities identified during an Initial, Surveillance or 

Renewal Audit and is charged in addition to the respective Initial or Annual Certification Fee. 

A Follow-Up Audit is charged on a time and expense basis. 

The invoiced amount is 350 € per day (including travel and reporting days) plus travel costs. The travel 

costs are the estimated travel costs plus 20% contingency. 

In case the certificate of the certified operator is suspended and it has been decided to verify 

implementation of the corrective measures by a desktop follow-up audit a fee of €630 will be invoiced 

for this desktop follow-up audit. 

10 ADDITIONAL AUDITOR FEE 

On a case-by-case evaluation (for example, in cases where FLO-CERT has to investigate a serious 

allegation) a second auditor will be sent at the cost of the producer organisation. This is charged on a 

time and expense basis. 

The invoiced amount is 350 € per day (incl. travel and reporting days) plus travel costs. The travel 

costs are the estimated travel costs plus 20% or the real travel costs if invoice is sent after the audit. 

Should you have questions regarding the Producer Fee System of FLO-CERT, please contact us at 

info@flo-cert.net. 

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Appendix 1 

Product List 

The “New Product Application Fee” applies to the following situations: 

1. Adding a product category to the Fairtrade certification 

The product categories for invoicing purposes are defined in CERT ProductTree ED which can be found 

on the website under http://www.flo-cert.net/flocert/fileadmin/user_upload/certification/cost/en/20111122/CERT_ProductTree_ED_10_en.pdf. 

You can check in this Product Tree whether the product you want to add to your Fairtrade certification 

is covered by a Fairtrade product category. If the product is not listed, no Fairtrade Standard exists for 

the product. 

For example if you want to add the product tea to your Fairtrade certification and you are currently 

certified for the product flowers, you add a new product category to your certificate. For this you 

have to apply before you can sell the product under Fairtrade conditions. 

2. Adding a product type from the same product category to the Fairtrade certification 

For certain products you have to apply to FLO-CERT if you want to add a further product type to your 

Fairtrade certification. These product categories are listed below: 

Product Category 

Fresh Fruit 

Fruit Juices 

Product Types 

Apple, Avocado, Coconut, Grapefruit, Lemon, Lime, 

Lychee, Mango, Melons, Orange, Papaya, Passion fruit, 

Peach and Nectarine, Pear, Pineapple, Plum, Soft Citrus, 

Table Grape, 

Apple, Araza pulp, Banana, Grapefruit, Guava pulp, 

Lime, Lychee pulp, Mandarin, Mango for pulp, Mango 

pulp, Orange, Passion fruit, Pineapple 

Application 

necessary 

Yes 

Yes 

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Appendix 2 

Processing Installations 

Processing installations in the ownership of a plantation are part of the audit carried out by FLO-CERT. 

The certification fee is charged for processing installations for which one or more of the following 

indicators are relevant: 

• Workers are hired by the plantation at the processing installation (different working conditions); 

• Additional health & safety requirements are applicable to the processing installation (e.g. related 

to dangerous workplaces or use of chemicals); 

• Additional environmental requirements are applicable to the processing installation (e.g. waste or 

waste water management). 

The following table provides an overview of those processing installations which will be audited if one 

or more of the above listed indicators apply. 

Product Category: 

Bananas 

Flowers and plants 

Fresh fruits and vegetables 

Fruit Juice 

Sport Balls 

Tea 

Wine 

Onsite Processing Installation 

Cleaning, grading, packing and storage 

packing, cold storage 

packing, cold storage, hot water treatment 

Pulping, pasteurisation, filling & bottling and storage 

Stitching, packing and storage 

Withering, cutting /rolling, fermenting, drying/firing, sifting, grading, 

packing and storage 

Cleaning, crushing, fermentation, filling or bottling and storage 

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