Dear Producer,

We are happy to announce that after the stakeholder consultation of the last months the FLO-Cert’s Producer Fee System has been approved by the FLO Board on the 14 th November 2005. Thank you for your comments and support!

We are confident that the final producer fee system represents a credible and affordable certification system. The fee system changed from a volume based fee system to a real cost related fee system which is related to an inspection. No annual fee or volume fee will be invoiced or charged from 2006 onwards.

The Producer Fee System will come into force on the 1 st January 2006.

The future invoicing process will be as follows: The FLO-Cert finance department will send out invoices 4 month prior to the expiration date of your certificate. Producers paying the inspection fee within the payment target of 14 days will receive a discount of 3 % of the certification fee. With the invoice you will be informed about the envisaged inspection date.

For producers delaying the payment over the envisaged inspection date or the expiring date of the certificate, the certificate will be suspended and the producer will be at risk of decertification. For each month with which the producer delays the certification process, a penalty of 1% of the certification fee will be charged to cover the costs of postponing inspections. Should you have questions regarding the invoice or payment arrangements, please contact Simone Rothe, s.rothe@flo-cert.net, of the finance department of FLO-Cert.

The FLO-Cert finance department will send out first invoices in December 2005 for inspections due in the first quarter of 2006. To guarantee that we send you a correct invoice we would like to ask you to fill in the attached information sheet. With this updated information we are able to calculate a correct fee for your FLO inspection/certification.

We thank you for your support and invite you to contact us if you need further information. The entire FLO-Cert team wish a successful Fairtrade year 2006.

To read the

Best regards

Frank Brinkschneider
Director Producer Certification
FLO-Cert GmbH

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