Overview of the Management of the Fair Trade Premium

The following diagram provides a chronological overview of the activities that must be completed in stages during the certification process, organized according to three compliance deadlines:

Before the initial audit or Year 0: The Certificate Holder is required to understand the intent, objective, and requirements of the Fair Trade Committee, the Needs Assessment, and the Fair Trade Premium Plan.

By year zero, the Certificate Holder must identify the Fair Trade Premium Participants, propose the structure of the Fair Trade Committee, and establish the election procedure for selecting its members.

Subsequently, once the initial audit has taken place, the process continues with the fulfillment of the requirements that must be met prior to the year 1 audit

Before spending the premium or no later than Year 1: Premium Participants, before electing the Fair Trade Committee, must be trained on the functioning of the Fair Trade Committee, the intent of the Needs Assessment, and the development of the Premium Plan.

Next, the Premium Participants must elect the Fair Trade Committee and draft and approve the Constitution, which governs the governance and responsibilities of the Fair Trade Committee.

Following the timeline, the first Needs Assessment must be conducted, and the results of this assessment must be shared with the Fair Trade Committee.

Before spending the premium or no later than year 3: The Fair Trade Committee must develop the Premium Plan based on the results of the Needs Assessment. This Premium Use Plan is presented to the General Assembly of Premium Participants for approval by a majority of them prior to its implementation.