PT MUTUAGUNG LESTARI

CODES OF PRACTICE
CODES OF PRACTICE: ISSUE 03 1. INTRODUCTION These codes of practice have been structured in accordance with the requirements of the Indonesian National Accreditation Committee, whose accreditation we currently hold. A copy of the scope of accreditation with Indonesian National Accreditation Committee (KAN) is available on request from the MALECO Office in Jakarta. 2. SCOPE Mutuagung Lestari Environmental Certification (MALECO) provides independent assessment and certification of Ecolabel operated by firms for conformance with the requirements of ecolabel criteria for product category which is determined.
Each manufacturer is allowed to use MAL services for Ecolabel certification of the following product categories : NO. 1 2 3 4 Textile and textile products Uncoated printing paper Tissue paper * Printed paper with salute * Category

* ) Note : on process for being accredited by KAN

3.

LEGAL STATUS Mutuagung Lestari Environmental Certification (MALECO) is a wholly owned sub-division of PT Mutuagung Lestari.

4.

CONFIDENTIALITY Mutuagung Lestari Environmental Certification (MALECO) is responsible for ensuring that secrecy is maintained by its employees and those of its agents, concerning all confidential information with which they become acquainted as a result of their contact with the organization. MALECO shall not disclose any information pertaining to a company or particular product without written consent of the company. Should the law required information to be

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disclose to a third party, the client will be informed of the information provided as permitted by law.
5.

ORGANIZATION A copy of the Mutuagung Lestari Environmental Certification (MALECO) Organization Chart showing the responsibility and reporting structure of the organization is available on request.

6.

GENERAL CONDITIONS The basic conditions for obtaining and retaining registration are that the applicant agrees to and complies with the following procedures and rules: a. b. c. All information deemed necessary by MALECO in order to complete the assessment programme shall be made available by the applicant; MALECO, if not satisfied that all the requirements for registration are being met, shall inform the applicant of those aspects in which the application has failed; When the applicant can show that remedial action has been taken by him within a specified time limit to meet the requirements, MALECO will arrange, at extra cost to the applicant, to repeat only the necessary parts of the assessment; If the applicant fails to take remedial action within the specified time limit it may be necessary for MALECO, at extra cost, to repeat the assessment in full; Identification of conformity shall refer only to the site or sites assessed and apply to the scope of the issued certificate as stated on that certificate.

d. e.

7.

APPLICATION FOR REGISTRATION On receipt of the completed questionnaire, a proposal outlining the scope of assessment and costs will be submitted to the applicant. Upon agreement by the applicant to costs and receipt of any due payments, together with controlled copies of relevant documentation, the project will be allocated to a Registered Lead Auditor who will be responsible for ensuring that the assessment is carried out in line with MALECO Procedures. The applicant shall submit to MALECO the CONTROLLED COPY of the following documentation, for documentation review purpose: a. Ecolabel Certification Documentation: Environmental (Ecolabel) manual, Operating Procedures and Work Instructions, inclusive in it policy/ commitment of environmental regulation and the related other regulation.
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b. c. d. e. f. g. 8. Significant Aspect Register. Legislation and other Requirements Register. Objectives, Targets and Environmental Management Programmes and related in ecolabel certification environmental labeling. A description of the organizations on-site processes (site plan/site map, including boundaries). The result or recording of laboratory testing in each ecolabel parameter (related ini ecolabel product scope)
Quality system documentation and the result of product testing and/or packaging (quality product)

INITIAL ASSESSMENT OF A FIRMS ECOLABEL CERTIFICATION The assessment of the firms Ecolabel Certification shall be carried out in two stages, i.e. desk study of controlled documentation to ensure compliance with the relevant part of ecolabel criteria of product category which is determined; and assessment of the ecolabel certification in operation at the firms premises. Should there any suspicion of environmental aspects related in (or) according ecolabel criteria/ requirements, MALECO will conduct specific evaluations as necessary. All records produced for the implementation and operation of the Firms ecolabel certification shall be readily available for assessment. The applicant shall ensure that responsibility to MALECO for the ecolabel certification is clearly defined, by appointing a designated person who is authorised to maintain contact with MALECO. Any changes to the designated appointee must be confirmed to MALECO in writing. Mutuagung offer an option to an applicant that if he so wishes and on agreement by MALECO, a pre-assessment of the ecolabel certification can be undertaken to measure the applicants readiness to receive a full assessment. Application and initial assessment shall follow a similar format to that outlined in clause 7 and the above of this section.

9.

REGISTRATION When the Cultivator Committee is confident the company meets all the requirements for registration, the applicant will be informed and a Certificate issued. The Certificate shall remain the property of MALECO and shall not be copied or reproduced in any manner without the prior approval of the President Director of MALECO

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The Certificate will normally be valid for a period of three years from the date on the certificate, on condition that surveillance visits do not reveal any deterioration in the ecolabel certification. 10. SURVEILLANCE Periodic surveillance visits shall be carried out following notification of the intended visit and will cover aspects of the ecolabel certification at the discretion of the nominated Assessor. MALECO shall be granted the right of access for surveillance purposes whenever deemed necessary and shall reserve the right to make unannounced visits as required. The Certificate Holder shall maintain comprehensive records of all customers and other interested parties complaints relating to those products, processes or services covered by the certificate and make these available to MALECO on request. The Certificate Holder shall be informed of the results of the surveillance. 11. CERTIFICATE RENEWAL The Certificate shall require to be revalidated every three year cycle and shall follow a similar format to the initial assessment (see clause 8). The company shall be informed of the requirements of Certificate renewal during the pre-renewal visit which is the last surveillance visit of the three year cycle. 12. EXTENSION OF REGISTRATION In order to extend the scope of a companys registration to cover additional products, processes or services, a new Application Form will be required to be completed. The application procedure outlined in clause 7 will be followed and an assessment will be carried out on those areas not previously covered. The cost of extending the scope of registration will be based on the nature and programme of work. A new Certificate, following a successful assessment will be issued covering those aspects covered by the extended registration which will be valid for the remainder of the three year period. The superseded Certificate must be returned to MALECO by the assessed company.

13.

REDUCTION OF REGISTRATION Reductions to scope of certification / registration can be permanent or temporary as requested by the client for the commercial/ financial reason, etc. Upon receipt of formal from a client requesting a reduction in scope of certification/ registration on a temporary basis, the Operational Manager shall ensure that the Auditor selected for the next scheduled surveillance

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visit is supplied with all relevant client documentation relating to the reduction scope. The Operation Manager shall forward the revised Certificate to the clients under cover of a letter which clearly request return of the Original Certificate as soon as possible. 14. PRODUCT MODIFICATION The Certification Holder shall inform MALECO in writing of any intended modification to the product, process, services or Environmental Management System which may affect compliance with the relevant part of the ecolabel criteria of product category which is determined. MALECO will determine whether the notified changes require additional assessment. Failure to notify MALECO may result in suspension of the Certificate. MALECO re-evaluate, in the event of changes significantly affecting the products design or specification, or changes in the standards to which compliance of the product is certified, or change in the ownership, structure or management of the customer, if relevant or in the case of any information indicating that the product may no longer comply with the requirements of the certification system.
PRODUCT RECALL

Product recall is the withdrawal and its mechanism related to ecolabel products which had been produced and distributed; and their processing and producing had been occured the non conformities against the requirements of ecolabel criteria. Certified organisation that have produced ecolabel products and produced the non conformities against the requirements of ecolabel criteria is obligated to carry out product recall and informs and/or reports to MALECO as Certification Body. Product recall occurance is a major non conformity and for certified organisation has to conduct corrective actions and supported by evidences. Further, MALECO as Certification Body will review and verify the adequacy of corrective actions and if necessary will be visited to site for verification. All costs regarding on site visiting verification will be charged to certified organisation (Client).

15.

PUBLICITY OF CERTIFICATE HOLDERS A Certificate Holder has the right to publish that the product, process, service and or environmental performance (product ecolabel) has been assessed and apply the relevant mark of conformity to stationary and promotional material relating to the scope of registration as detailed on the Certificate of Registration. In every case, the company shall ensure that, in its publications and advertising, no confusion arises between registered and non-registered products, processes and / or services. The company shall not make any claim that could mislead purchasers to believe that a product, process or service is covered by registration when in fact, it is not.

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The Certification Holder is allowed to use the MALECO Certification logo (refer to MAL 4859b) on letterheads, advertisements in mass media, catalogues, on products, product packaging and other publications, according to registration scope.

16.

MISUSE OF A CERTIFICATE AND LOGO MALECO shall take all reasonable precautions to control the use of its Certificates and logo. Incorrect reference to registration or misleading use of Certificates / Logo found in advertisements, catalogues, etc. shall be dealt with by suitable actions which could include suspension or withdrawal of a Certificate, legal action and / or publication of the transgression.

17.

SUSPENSION OF A CERTIFICATE AND LOGO A Certificate and Logo may be suspended for a limited period in cases such as the following: a. b. c. If Non-compliance Reports have not been closed out within the designated time limit; If a case of improper use of a Certificate and Logo, e.g. misleading prints or advertising, is not solved by suitable retractions or other appropriate remedial measures by the company; If there has been any other contravention of the MALECO Codes of Practice.

The company shall not identify as registered any product, process or service that has been offered under a suspended Certificate and immediately stop all advertising in this respect. An official suspension of a Certificate and Logo will be confirmed in writing by MALECO to the company. At the same time MALECO shall indicate under which conditions the suspension will be removed. At the end of the suspension period, an investigation will be carried out to determine whether the indicated conditions for reinstating the Certificate and Logo have been fulfilled. On fulfillment of these conditions the suspension shall be lifted and the company notified of the Certificate and Logo reinstatement. If the conditions are not fulfilled, the Certificate and Logo shall be withdrawn. All costs incurred by MALECO in suspending and reinstating of Certificates and Logo will be charged to the company.

18.

WITHDRAWAL OF A CERTIFICATE AND LOGO A Certificate and Logo may be withdrawn in the following cases: a. If inadequate measures are taken by the company in the case of suspension;
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b. If the company fails to comply with due settlement of its financial obligation.

In the above cases, MALECO has the right to withdraw the Certificate and Logo by informing the company in writing. The company may give notice of appeal (See Clause 20). No reimbursement of assessment fees shall be given and withdrawal of a Certificate and Logo shall be published by MALECO. 19. CANCELLATION OF A CERTIFICATE A certificate will be cancelled in the following cases: a. b. If the company does not wish to renew the Certificate; If the product, process or service is no longer offered or the company ceases trading.

No reimbursement of assessment fees shall be given and cancellation of a Certificate shall be published by MALECO. 20. FEES Fees will be detailed in the proposal submitted to applicants. As costs are based on the charge rate applicable at the time of submitting a proposal, MALECO reserves the right to increase charges during the certification period. Companies will be notified of any increase in fees. Additional fees shall be charged for additional work that is not included in the agreed proposal and for extra, unscheduled surveillance visits required due to non-conformances being identified in the ecolabel certification. This will include, but not necessarily be restricted to the costs resulting from : a. b. c. Repeats of any part, or all, of the assessment (evaluation) programme due to the initial registration requirements not being met; Additional work due to suspension, withdrawal and/or reinstatement of a Certificate and Logo; Reassessment due to changes in the Ecolabel Certification.

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The fees quoted shall exclude travelling and subsistence expenses which will be charged extra at cost. All fees and additional charges are subject to local taxes in the country concerned at the appropriate rate. 21. APPEALS If, for any reason, notification is given which may result in a Certificate being withdrawn, the company has the right to appeal. All appeals shall be in writing, directed through the Administration and Human Resources Development Department and received within seven days of receipt of notification of Certificate withdrawal, together with relevant facts and data for consideration during the Appeals Procedure. All appeals submitted to MALECO are put before the Cultivator Committees panel. MALECO shall be required to submit evidence to support its decision to withdraw the Certificate. The decision of the Cultivator Committees Panel shall be final and binding on both the company and MALECO. Once the decision regarding the appeal has been made, no counterclaim by either party in dispute can be made to amend or change this decision. In instances where the appeal has been successful and the Certificate reinstated, no claim can be made against MALECO for reimbursement of costs or any other losses incurred as a result of the initial withdrawal notification.

22.

CLIENTS INTERESTED PARTIES COMPLAINTS The clients shall make all complaints received from customers or other interested parties available to MALECO Auditors at each and every visit.

22.

COMPLAINTS FROM THE CLIENT TO MALECO Should the client have cause to complain regarding the conduct of MALECO employees or subcontractors, the complaint should be made in writing and addressed to the Operations Manager, MALECO. Should the complaint be made against the Operations Manager, the letter of complaint should be addressed to the General Manager, MALECO.

23.

THE CULTIVATOR COMMITTEE RESPONSIBILITIES The cultivator committee, under the direction of the Chief of the Cultivator Committee, shall be responsible for taking appropriate action on any relevant matter where their advice or decision is not taken or acknowledged respectively

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MUTUAGUNG LESTARI ENVIRONMENTAL CERTIFICATION (MALECO) RESERVES THE RIGHT TO ADD TO, DELETE, OR CHANGE THESE CODES OF PRACTICE WITHOUT PRIOR NOTIFICATION.

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