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Where can I find the Fairtrade Standards?

All Fairtrade Registered UK Operators must comply with the Fairtrade Standards for UK Operators. These can be found on the Fairtrade standards page. As part of your compliance with these Standards, all relevant employees should have access to the most up-to-date version of the Standards. We recommend you store copies of these in a central, easily accessible location such as your intranet or local hard drive. Alternatively, you can save a link to the Fairtrade Standards in your ‘Favourites’ online; please then ensure that all relevant staff have access to this. The Standards are regularly reviewed and updates will be communicated to you. The Fairtrade Foundation will electronically mail out any updates to the Standards and they will be made available on our website. However, it is your responsibility to ensure that you have the most up-to-date documents on file.

Will I receive a Fairtrade certificate of registration?

Certificates are being issued by the Foundation to all operators that have satisfied the certification requirements and had a physical audit or Self Assessment Questionnaire (SAQ) signed off since January 2012.   For operators that haven’t yet had a physical audit or SAQ signed off since January 2012, the FLO-ID is sufficient proof of Fairtrade registration but it is also possible to request a letter of confirmation from the Foundation’s Licensing and Customer Service Team.

How do I sell Fairtrade products abroad?

As a licensee it is your responsibility to inform the Fairtrade Foundation of intent to sell Fairtrade registered products into international markets and approval must be sought for cross-border sales upon the product application. Please tick the relevant box on page 3 of your LASer product application form and select the destination countries from the ‘Available Choices’ list below this. If it is decided after the product application stage that your product is intended for international sale, please contact your Product Integrity Officer to confirm the approval process.

How much does it cost to be certified by the Fairtrade Foundation?

A license fee for use of the FAIRTRADE Mark on finished products will be calculated and invoiced as a percentage of the Fairtrade transactions you are required to report to the Fairtrade Foundation. If you are selling finished certified product to retailers or catering outlets the licence fee is based on the net invoice value of the sales of the Fairtrade certified products. If you are selling finished products to the end consumer the licence fee is based on the net purchase value of Fairtrade certified products from suppliers. For Net Sales/Purchase Value up to £1,500 per quarter   £25 per quarter   If Net Sales/Purchase Value exceeds £1,500 per quarter then:   On Net Sales/Purchase Value up to £5 million p.a. 1.7% Net Sales/Purchase Value, plus On Net Sales/Purchase Value between £5 million and £10 million p.a.   1.6% Net Sales/Purchase Value, plus On Net Sales/Purchase Value between £10 million and £20 million p.a. 1.3% Net Sales/Purchase Value, plus On Net Sales/Purchase Value between £20 million and £40 million p.a. 0.9% Net Sales/Purchase Value, plus On Net Sales/Purchase Value between £40 million and £80 million p.a.   0.6% Net Sales/Purchase Value, plus On Net Sales/Purchase Value between £80 million and £160 million p.a.   0.4% Net Sales/Purchase Value, plus On Net Sales/Purchase Value over £160 million 0.2% Net Sales/Purchase Value, plus There is a discounted licensee fee rate which may apply, at the discretion of Fairtrade Foundation, if the consumer-ready products that the Company sells are Finished Fairtrade Products to the fullest extent possible. The licence fee for Fairtrade Cotton in based on FOB purchase value. For a full breakdown of the license fees applicable for use of the FAIRTRADE Mark please see section ‘2.02 Registration and licensing fees’ in Part 2 - General Registration Requirements of the Fairtrade Standards. There is no cost associated with being audited by the Fairtrade Foundation. However, this is currently under review and audit fees may be introduced for non-licensees. In addition to this, the Fairtrade Foundation reserves the right to charge for audit costs in exceptional circumstances. Whilst there is currently no initial registration fee or annual fee, the Fairtrade Foundation reserves the right to introduce a fee at any time.

I would like to certify a new product What do I have to do?

Any new products, pack sizes and/or style codes need to be certified and listed on your certified product list in LASer before they can go on sale. To certify a new product you need to apply in LASer. Your Licensing and Customer Service Officer (LCS) will be able to help you with this and instructions are also available in the user guide online. Queries can be sent to commercial@fairtrade.org.uk. Product approval (supply chain and composition) and approval of the product artwork are linked. You will receive separate notification of the product approval and artwork approval through LASer. Your product will not appear on your certified product list until both the product and associated artwork are approved in LASer. Any artwork queries can be sent to artwork@fairtrade.org.uk.

How much of the price I pay for Fairtrade products goes to the farmers and workers?

The FAIRTRADE Mark on a product means that farmers and workers have been paid at least the Fairtrade Minimum Price (and often more) and received Premium funds for investment in their communities or businesses. When you find Fairtrade products on a store shelf, all requirements have already been meant – this means they are not reliant on the retail price or sales of finished products to receive a fairer deal for their goods.

My local store doesn’t offer Fairtrade products, what can I do?

Ask them! Letting a shop know you want more Fairtrade products is the best way to make sure they get stocked. Contact Fairtrade Campaigns for “product request cards” that are a more formal way of requesting ethical products.       When your shop starts stocking Fairtrade products, pass on the word and get others to support them in turn!

Why doesn’t the retail price factor in the price of a Fairtrade product?

People often question how much of what they pay for a Fairtrade product on the shelf goes back to the farmers and workers, and how this amount differs to a product not sold under Fairtrade terms. This may seem like an easy way to explain the impact that Fairtrade has from a consumer’s viewpoint, however it doesn’t get to the core issues and inequalities of the traditional trading systems.       For the farmers and workers we work with, the value of Fairtrade doesn’t lie in the selling price of the product on shelf, but the production costs and market prices. Numerous factors impact and play a part in determining the retail price paid by consumers. Consider the following factors, which must be taken into account by a coffee or cocoa producer selling into the conventional market:       - Shifting market prices – The percentage of what a producer would receive from the sale of a bag of coffee would change, depending on the international price of coffee at the time. - If they own the farm they work or if they are hired labor on another’s farm. - If the cooperative does any processing of the cocoa or coffee before selling it on. - If the cooperative sells to local buyers or at auctions, of if they also act as the exporter of the product. - The conditions of local trade have significant differences across the world, including whether the industry is independently managed or regulated by governments. - Costs of production also differ across the world. Once the Fairtrade commodity is sold to a Fairtrade importer, the following costs are comparable to those for non-Fairtrade products. This includes costs such as transport, insurance, import taxes, processing, packing, storage, distribution, promotion and day-to-day store costs.       Fairtrade does not have any say or power to effect retail costs or product profit margins. When producers are paid fairly up front, rather than after a product, that is the best way to ensure they are receiving a fair deal.

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