SGS QUALIFOR. (Associated Documents)

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1 SGS QUALIFOR (Associated Documents) Doc. Number: AD Doc. Version date: 24/08/2014 Page: 1 of 12 Approved by: Gerrit Marais CERTIFICATION PROCESS AND DOCUMENT CONTROL Name of Auditor: Date of last witnessed audit (AD12): Date last AD12 (LAT Witness Report) submitted to Qualifor: Date last Auditor Records (AD10) submitted to Qualifor: Mario O Ryan 22-March April July-2014 Item Auditor Notes by Qualifor Auditor is fully aware of the current policy on conflict of interest (POL 02) and both the auditor and all team members are fully compliant with the requirements of this policy. Report was reviewed by Project Manager All the documents required for certification have been submitted The correct and current versions of the report templates were used The correct standard, compliant with Qualifor procedures, was used The report, paragraph or text formats of the original templates has not been changed I have completed all relevant sections within the report This report was submitted within the Qualifor timelines stipulated in Work Instruction 01 The report provides all the information necessary for Qualifor to make a certification decision Comments by SGS Qualifor Fee adjustment for reporting quality For Qualifor use only No -25% of TSF for report approved after first review - Standard fee +50% of TSF for second review of report +100% of TSF for third review of report This document is issued by the Company under its General Conditions of Service accessible at Conditions.aspx. Attention is drawn to the limitation of liability, indemnification and jurisdiction issues defined therein. Any holder of this document is advised that information contained hereon reflects the Company s findings at the time of its intervention only and within the limits of Client s instructions, if any. The Company s sole responsibility is to its Client and this document does not exonerate parties to a transaction from exercising all their rights and obligations under the transaction documents. Any unauthorized alteration, forgery or falsification of the content or appearance of this document is unlawful and offenders may be prosecuted to the fullest extent of the law. SGS South Africa (Qualifor Programme) 58 Melville Road, Booysens - PO Box 82582, Southdale South Africa System s and Services Certification Division Contact Program me Director at t

2 AD Page 2 of 12 PEFC CHAIN OF CUSTODY CERTIFICATION REPORT PROJECT NO. CLIENT: CLBD MORGAN IMPRESORES S.A. Type of certificate Single No of Sites 2 ADDRESS: Physical address: 1- Plant: Andes 4616 Quinta Normal Santiago (Receipt, Print - Dispatch) 2- Administration: Víctor Uribe 2281 Quilicura Santiago (Purchase pre press - Finish, sales) Postal Address: Andes 4616 Quinta Normal Santiago Chile TEL: Company website: AUDIT SCOPE: Purchase of percentage based PEFC certified paper, coated and uncoated, newspaper and cardboard, for the production, including the outsourcing of post printing finishing jobs, and sale of commercial material (labels, packaging, commercial catalogues) and publications (magazines, soft-cover books) using the physical separation (Section 6.2) based on Appendix 1 (Specification of the PEFC claims) of the chain of custody standard. CERTIFICATE NO: SGS-PEFC/COC-1019 PEFC LOGO USAGE LICENCE NO: PEFC/ DATE OF ISSUE: 08 Jan 2015 DATE OF EXPIRY: 07 Jan 2020 NO. EMPLOYEES: 230 aprox. STANDARD: PEFC ST 2002:2013 PEFC INTERNATIONAL STANDARD Chain of Custody of Forest Based Products - Requirements dated PEFC ST 2001:2008 PEFC INTERNATIONAL STANDARD PEFC Logo usage rules - requirements, version 2 dated DATE OF LAST REPORT UPDATE: 17/11/2014

3 AD Page 3 of 12 TABLE OF CONTENTS CERTIFICATION PROCESS AND DOCUMENT CONTROL... 1 BASIC EVALUATION INFORMATION... 4 AUDIT HISTORY:... 4 REVIEW: 4 1 INTRODUCTION CERTIFIED PRODUCT INFORMATION: SYSTEM UNDER REVIEW IDENTIFICATION OF CRITICAL CONTROL POINTS & CONTROLS AUDIT SCOPE CHANGES TO SCOPE OF CERTIFICATE, PRODUCTS, COMPANY DETAIL OR CONTACT DETAIL AUDITED SYSTEM TIME ALLOCATION SITE SAMPLING METHODOLOGY (FOR GROUPS, MULTI-SITES AND OUTSOURCING) CORRECTIVE ACTION REQUESTS AND OBSERVATIONS AUDIT SUMMARY AND RECOMMENDATION:... 9 APPENDIX A: CORRECTIVE ACTION REQUESTS APPENDIX B: OBSERVATIONS END OF REPORT... 12

4 AD Page 4 of 12 BASIC EVALUATION INFORMATION Audit History: Audit: Date: Team Leader/Team: Auditor s approved NACE code Main Assessment Mario O Ryan Lead Auditor PEFC 22.2 Surveillance 1 Surveillance 2 Surveillance 3 Surveillance 4 Review: Affiliate Project Manager: N/A Date: Report approved by: NACE codes checked and found within the scope of accreditation by: Michal Brink JCVDB Date: /01/ /01/2015 JCVDB Date: 07/01/2015 Certification approved by: J.C. van den Berg Date: 08/01/2015 Database logged by: MVZ Date: 08/01/2015

5 AD Page 5 of 12 1 INTRODUCTION This report presents the results of the Certification evaluation at Morgan Impresores S.A. in Santiago, Chile on 12 th November 2014 by SGS-Qualifor. The purpose was to assess the operations of Morgan Impresores S.A. against the requirements of the PEFC Council for Chain-of-Custody certifications. Morgan Impresores is one of the most important printers of the country. Their operation started on March From July 2001 Morgan Impresores belongs to the holding El Mercurio SAP. The printer focus in 4 business areas: advertising (advertising campaigns), publishing (magazines, institutional books), industrial (labeling and packaging) and digital printing. They produce and sale the following certified products: commercial material (labels, packaging, advertising material among others) and publications (magazines, softcover books). Their productive process has the following main stages: paper purchase and reception, paper storage, sizing, printing, termination and delivery. Morgan Impresores print on certified and non-certified paper. Therefore they use physical separation during all the productive process. The critical control points are: a) Paper purchase b) Paper reception c) Paper storage d) Paper allocation e) Logo usage 1.1 Certified product information: Product name Product category code* Product description * Species code Paper and paper board Paper and paper board Graphic Papers 1/ Packaging materials 1/3 Paper and paper board Newsprint 1/3 * Refer RD19 for codes of product categories and species. If the product includes species of more than one category (e.g. 1 - coniferous and 3 - non-coniferous), please type all the appropriate codes into the column.

6 AD Page 6 of 12 2 SYSTEM UNDER REVIEW The chain of custody has the following resumed flow chart 1. Warehouse: All purchase orders must indicate material as PEFC certified, once the material arrives it must be stored according to type and certification when applicable 2. Re sizing: Paper must be related to a Job order and must always have a sticker indicating it is a PEFC Job. 3. Production: every stage of the processing of the paper must it be identified by a sticker that indicate the job number. Once the paper is printed it is identified with the Job Order and can be traced back to the invoice. 4. Shipping: Al PEFC material shall be checked to confirm the minimum 70% PEFC claim and the certificate number CCP s are aware of this 5. Finishing Jobs Outsourced: Every PEFC job sent to outsourcing shall be traced. It is identified by the job Order and as PEFC certified before sending it to the contractor. Once it has been processed it will be sent back to the company identified with the sticker. The contracting work is only for post printed finishing jobs. 6. Invoice: All invoices are related to transport documents and are assured with the correct claim and certificate number, all person responsible are competent. 3 IDENTIFICATION OF CRITICAL CONTROL POINTS & CONTROLS CCPs Risk of Mixing Controls Administración Quilicura / Quilicura Administration Compra de papel / Purchase of paper Bajo / Low The company when buy the paper and before use, check on the website of PEFC, and ask the provider to send the certificate as proof of validity of the certificate

7 AD Page 7 of 12 Planta Quinta Normal / Quinta Normal Plant Almacenamiento / Storage Bajo / Low requirement and supplier, entering the paper invoices checks that the supplier has all the data required by the STD. Controls High La empresa al comprar el papel y antes de su utilización, revisa en la pagina del PEFC, y pide a su proveedor que le envie el certificado como prueba del requisito y vigencia del certificado del proveedor, al ingresar el papel se revisa que las facturas y remitos del proveedor tenga todos los datos que el STD requiere. Controles Alto The company to stow the PEFC raw material, perform it by control system made by physical separation. All paper batteries are identified upon entering the tank and are separated on NO PEFC and PEFC stacks, they are traced with the Purchase Order. Controls High La empresa al estibar la materia prima PEFC, lo hace mediante sistema de control de separación física. Todas las pilas se encuentran identificadas al entrar al depósito y son separadas en pilas PEFC y NO PEFC, las mismas se encuentran trazadas con la Orden de compra. Controles Alto Impresión / Printing Bajo / Low The company uses a job order, which describes when the product produced is PEFC. And then continues traced from the income of the paper to the semi elaborate. Everything takes over No. OT where traceability management system is marked PEFC. Controls High Tercerización / Outsoursing Altos / High Administración Quilicura / Quilicura Administration La empresa utiliza una orden de trabajo, donde se describe cuando el producto a producir es PEFC. Y luego continúa su trazabilidad desde el ingreso del papel hasta el producto semi elaborado. Todo se lleva a través del Nº de OT donde se marca la trazabilidad del sistema de gestión de PEFC Controles Alto The company issues a purchase order and it is sent to the third party along with the work. The contractor holds the order number throughout the procedure. When ships work, working with third refers waybill with Order No. Order of PEFC-certified company The company receives the job to end the outsourcing process Controls High La empresa emite una orden de pedido, se envía a los terceros junto con el trabajo. El tercero mantiene el número de pedido durante toda la intervención. Al ser despachado el trabajo, el tercero remite el trabajo con guía de despacho con el Nº de orden de pedido de la empresa certificada PEFC- La empresa recibe el trabajo para dar fin al proceso de tercerización. Controles altos Terminación / Finish Bajo / Low Enter the semi-finished work for completion, keeping the same number of OT-is finished and packaged for

8 AD Page 8 of 12 shipment to customer Controls High Ingresa el trabajo semi elaborado para terminación, manteniendo mismo número de OT- Se termina y se envasa para el despacho al cliente Controles Altos Venta / Sales Bajo / Low The sale is the first thing that start within the chain of custody and is where is create the order number of the client will then have traceability to the finished product and delivered Etiquetado (pre prensa) / Labelling (pre-press) 4 AUDIT SCOPE Bajo / Low Controls High La venta es lo primero que se dispara dentro de la cadena de custodia y es donde se crea el Nº de pedido de cliente que luego va a tener una trazabilidad hasta el producto terminado y entregado. Controles Alto The company label their products with Licensed PEFC logos pre approved and in exceptional cases it will be sent to PEFC (Certfor) for approval for use Controls High La empresa etiquetara sus productos bajo Licencia PEFC con los logos pre aprobados y en casos excepcionales el mismo será enviado a PEFC (Certfor) para aprobación para su uso. Controles Altos The scope of this assessment is the following operations of Morgan in Quinta Normal Santiago: Purchase of percentage based PEFC certified paper, coated and uncoated, newspaper and cardboard (by percentage system), for the production including the outsourcing of post printing finishing jobs, and sale of commercial material (labels, packaging, commercial catalogues) and publications (magazines, soft-cover books) using the physical separation (Section 6.2) based on Appendix 1 (Specification of the PEFC claims) of the chain of custody standard. 5 Changes to Scope of Certificate, products, company detail or contact detail Changes None 6 AUDITED SYSTEM The objective of the PEFC chain of custody requirements is to ensure that all products marked with the PEFC logo or sold as PEFC certified products are produced from raw material that comes from certified forests. This is based on the stipulations of PEFC ST 2002:2013 PEFC INTERNATIONAL STANDARD Chain of Custody of Forest Based Products - Requirements dated ELEMENTS ASSESSMENT-RESULT Which other quality or environmental management FSC No

9 AD Page 9 of 12 systems has the company been certified against? ISO No ISO 9001 ff EMAS No Other Time allocation Man-days 1 Man day Methodology and Rationale The Morgan company has been audited through the physical separation method including administration site, and half day for the Phase I process 6.2 Site Sampling methodology (for groups, multi-sites and outsourcing) Sampling Methodology and Rationale The company maintains 14 external services not certified and 3 external services PEFC certified. All services are determined to be low risk. For the audit sample of external services were visited 1- Servicios integrales para empresas Limited (contractor) 2- Papermint (Polylaminated, silk screen) La empresa mantiene 14 terceros no certificados y 3 terceros certificados PEFC. Para la muestra de auditoría del año 2014 se visitaron 2 terceros 1-Servicios integrales para empresas limitada (maquila) 2-Papermint (Polinaminados, serigraficos) 7 CORRECTIVE ACTION REQUESTS AND OBSERVATIONS Please see Appendix A for a summary of Corrective Action Requests and Appendix B for the summary of the Observations 8 Audit Summary and Recommendation: Certification A short summary of the evaluation and any issues that was hard to assess. Number of CARs closed Nr of CARs remaining open New CARs raised Recommendation: MA There have been no cases of difficult assessment, CCP are covered with STD 2002:2013 requirements All employees were trained and committed to the COC No ha habido asuntos de difícil evaluación- los PCC están cubiertos con requerimientos del STD 2002:2013 Todos los empleados estaban capacitados y comprometidos con la COC 0 Cars Closed 0 SAC 0 SAC The Chain of Custody of Morgan Impresores S.A. is to remain certified as: The management system is capable of ensuring that all of the requirements

10 AD Page 10 of 12 of the applicable standard(s) are met over all areas covered by the scope of the evaluation; and The certificate holder has demonstrated, subject to the specified corrective actions, that the described system of management is being implemented consistently over the whole scope of the certificate.

11 AD Page 11 of 12 APPENDIX A: CORRECTIVE ACTION REQUESTS CAR # Indicator CAR Detail Date Recorded> Dd mm aa Due Date> Dd mm aa Date Closed> Dd mm aa Non-Conformance: Objective Evidence: Close-out evidence: e) Date Recorded> Dd mm aa Due Date> Dd mm aa Date Closed> Dd mm aa Non-Conformance: Objective Evidence: Close-out evidence:

12 AD Page 12 of 12 APPENDIX B: OBSERVATIONS OBS # Indicator Observation Detail Date Recorded> Dd mm aa Date Closed> Dd mm aa Observation: Follow-up evidence: Date Recorded> Dd mm aa Date Closed> Dd mm aa Observation: Follow-up evidence: END OF REPORT

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