Dear Sir or Madam,
Please find attached a proposal for a new Project Committee on ‘Chain of Custody – Transparency andtraceability – Generic requirements for supply chain actors’ proposed by NEN (The Netherlands).
With the support of many (inter)national organisations and government NEN developed a proposal for ahorizontal standard that describes the generic Chain of Custody (CoC) requirements for supply chain actors in
the globally accepted ISO language. With this e‐mail I would like to seek your support for this proposal, which
can be found enclosed.
Why is this work needed:
The proliferation of traceability systems and definitions is causing unnecessary confusion, complexity, andcosts for players in different supply chains. This results in a barrier to market access, especially for smaller
companies and developing countries.
How do we intend to achieve this:The proposed generic CoC standard allows modular use of various related, already‐existing standards orinternal systems. Being based on currently available best‐practices, the standard will define supply chain
models and the respective traceability levels. It allows organisations to better address the increasing market
demand for transparency and simplifies market access by using a uniform language and criteria throughout the
supply chain.
What do we propose:
We recognise that the definition of CoC requirements and traceability levels can be defined independent ofsectors, raw materials, products, and issues addressed. A simple horizontal solution can drastically reduce thecosts and the loss of time caused by the present variety of CoC definitions and systems. This solution would inthe sense of ISO obviously need some assurance of backwards‐compatibility to already existing productspecific or MS activities.
Strong industry support, especially from global players, has been sought by NEN to guarantee the success of
this proposal for the development of an international (ISO) standard. To make it a truly horizontal standard,buy‐in from different sectors dealing with varying issues is important. Hence many TC's and liaisonorganizations will be invited to join the discussion.
Going forward with this project NEN welcomes a twinning partner from a developing country member toexchange knowledge and improve participation in standardization in the field of facilitating international
trade. The envisaged twinning partner should meet the following criteria:‐
full membership of ISO,‐the export and import of various feedstock and/or products is of national interest, and‐expressed commitment to actively participate in this project from national stakeholders beyond the total
development time frame
In the initiating phase within the national context of NEN, support has already been found from the
manufacturing industry in several sectors, retail, certification schemes, round table initiatives and government.
Please refer to our website and the attached proposal for more information or contact NEN via
energy@nen.nl.
Best regards,
Juliane Eykelhoff
Consultant
NEN AgroFood & Consument
T +31 15 2 690 235

NEW WORK ITEM PROPOSAL
Closing date for voting

2016-08-03

Reference number(to be given by the Secretariat)

Date of circulation

2016-05-03
Secretariat

NEN

ISO/TC/ SC

N

Proposal for new PC

A proposal for a new work item within the scope of an existing committee shall be submitted to the secretariat of that committee with a copy to
the Central Secretariat and, in the case of a subcommittee, a copy to the secretariat of the parent technical committee. Proposals not within thescope of an existing committee shall be submitted to the secretariat of the ISO Technical Management Board.
The proposer of a new work item may be a member body of ISO, the secretariat itself, another technical committee or subcommittee, ororganization in liaison, the Technical Management Board or one of the advisory groups, or the Secretary-General.
The proposal will be circulated to the P-members of the technical committee or subcommittee for voting, and to the O-members for information.

IMPORTANT NOTE: Proposals without adequate justification risk rejection or referral to originator.
Guidelines for proposing and justifying a new work item are contained in Annex C of the ISO/IEC Directives, Part 1.

The proposer has considered the guidance given in the Annex C during the preparation of the NWIP.
Proposal (to be completed by the proposer)
Title of the proposed deliverable.
(in the case of an amendment, revision or a new part of an existing document, show the reference number and current title)

English title

Chain of Custody – Transparency and traceability – Generic requirements for supply chain
actorsFrench title(if available)

Scope of the proposed deliverable.
The overall scope of work is standardization in the field of chain of custody (CoC) terminology and requirements for all
products with specified characteristics. The objective is to increase transparency and facilitate market access, especially forsmaller companies and developing countries.
This standard differs from existing ISO initiatives by defining the requirements and traceability levels independently of
sectors, raw materials, products, and issues addressed. It lays down a set of generic requirements to ensure that productswith specified characteristics sold or shipped by a supply chain actor (SCA), can be physically and/or administratively
connected to a corresponding amount of input material with the same specified characteristics. It does not intend to set
requirements on the input or output material or limitations to specific product characteristics such as sustainability, safety orsource. It does however provide guidance for describing characteristics.
This International Standard is intended to increase transparency in value chains by specifying traceability requirements forthe individual supply chain actors. This international standard can be used in all sectors and for all products with specificcharacteristics, which are transferred between two or more SCA's. Services are not included.
This standard defines commonly used supply chain models, their traceability levels and their specific requirements regarding
administration, physical handling activities, , conversion rates, transactions and stock activities relating to the product etcetera. These fundamental concepts and principles of chain of custody management cover the whole supply chain and areuniversally applicable to the following stakeholders:•organizations seeking sustained success through the implementation of a chain of custody management system;•
customers seeking confidence in an organization’s ability to consistently provide products and services conforming totheir requirements;•organizations seeking confidence in their supply chain that product and service requirements will be met;•organizations and interested parties seeking to improve communication through a common understanding of the
vocabulary used by supply chain actors;•

developers of related standards.

FORM 4 (ISO) v. 2012

Page 1 of 4

New work item proposal

Purpose and justification of the proposal.
The proliferation of traceability systems and definitions is causing unnecessary confusion, complexity, and costs for players in
different supply chains. This results in a barrier to market access, especially for smaller companies and developing countries.
Commonly used terms and definitions for CoC are the first step in allowing the modular use of various related standards
possible.
A simple solution can drastically reduce the costs and the loss of time caused by the present variety of CoC definitions andsystems. Recognising that the definition of CoC requirements and traceability levels can be defined independent of sectors,
raw materials, products, and issues addressed, the proposed ISO standard is a multi sector globally applicable basis orreference for CoC requirements for supply chain actors. Existing systems may refer to this International Standard for the
clarification of the differences between the requirements in their system and the CoC models specified in this standard. New
systems can base their definition of CoC requirements on this standard instead of specifying it from scratch.
The proposed generic CoC standard allows modular use of various related, already-existing standards or internal systems.
This means that there is no duplication with the existing ISO initiatives in the field of cocoa and forest based products1 or withprivate standards. The standard can rather serve as a benchmark for identifying the differences between requirements indifferent standards and certification schemes. Being based on currently available best-practices, the standard will define
supply chain models and the respective traceability levels. It allows organisations to better address the increasing market
demand for transparency and simplifies market access by using a uniform language and criteria throughout the supply chain.
Eventually, the result will be a separation of specific requirements in a standard in relation to the subject it covers (e.g.
sustainability, source, safety) and generic requirements related to the CoC.
The initiative to formulate this multi sector ISO standard has been taken by NEN in close cooperation with the Dutch
government and mostly multi-national representatives from private sector companies and industry associations, round tables
and certification organisations. The initiative is strongly supported by these players, who are convinced that rolling out ageneric ISO CoC standard will effectively reduce complexity, costs, supply chain risk and unnecessary use of time.
Benefits of a generic ISO Chain of Custody standard
Independent of sector, raw material and issue (e.g. food safety, sustainability, etc.)Terms and definitions based on globally accepted ISO languageModular use of related ISO and private standards possible



Based on available best practices



Generic CoC requirements for individual supply chain actors

Horizontal and generic benchmark for new and existing standards and internal systems

As the standard will make use of current chain of custody practices, the objective is to finalize the work within a shorter period
than the normal 24 months timeframe. Therefore it is important to reduce the complexity of this horizontal project. The
standard will not yet cover the following aspects:

the information integrity as opposed to the physical integrity (e.g. traceability systems);the management system side of things;



the way to deal with the many technical issues related to product identification;some of the more peripheral operational issues such as privacy and confidentiality; the full product lifecycle.
However, these aspects are important for a proper Chain of Custody management. The need for extending the scope should
be investigated once the terminology and generic technical requirements for CoC practices have been harmonized.
If a draft is attached to this proposal,:Please select from one of the following options (note that if no option is selected, the default will be the first

option):Draft document will be registered as new project in the committee's work programme (stage 20.00)
Draft document can be registered as a Working Draft (WD – stage 20.20)
Draft document can be registered as a Committee Draft (CD – stage 30.00)
Draft document can be registered as a Draft International Standard (DIS – stage 40.00)
Is this a Management Systems Standard (MSS)?
Yes

No

Indication(s) of the preferred type or types of deliverable(s) to be produced under the proposal.
International Standard

Technical Specification

Publicly Available Specification

Technical Report

1 ISO 19381-3 and ISO 38200 are indispensable as they incorporate contentious aspects of their specific products and supply

chains. They cover a broader scope by incorporating input and output material requirements.
FORM 4 (ISO) v. 2012

Page 2 of 4

New work item proposal

Proposed development track 1 (24 months)

2 (36 months - default)

3 (48 months)

Known patented items (see ISO/IEC Directives, Part 1 for important guidance)
Yes

No

If "Yes", provide full information as annex

A statement from the proposer as to how the proposed work may relate to or impact on existing work, especiallyexisting ISO and IEC deliverables. The proposer should explain how the work differs from apparently similar work,
or explain how duplication and conflict will be minimized.
This work does not conflict with the actual work undertaken in ISO/PC 287 or ISO/TC 34/SC 18. The standards developed inthese committees are product-specific (wood, paper, cocoa) and process specific (sustainable forestry and sustainablecocoa). The proposed horizontal CoC standard will cover generic organizational requirements and supply chain models andmay or may not be used as a reference or a benchmark for related standards. However, to truly safeguard the horizontal
character of the standard, a strong structure based on close liaisons with existing committees is necessary.
A listing of relevant existing documents at the international, regional and national levels.


ISO/CD 38200 'Chain of custody of forest based products'
CEN/TS 16214-2 'Sustainability criteria for the production of biofuels and bioliquids for energy applications —Principles, criteria, indicators and verifiers — Part 2: Conformity assessment including chain of custody and massbalance'
EN ISO/CD 19381-3 'Sustainable and traceable cocoa beans – Part 3: Requirements for traceability'
Private Chain of Custody standards including a.o. RSPO, BRC, UTZ, MSC, GMP+, Global G.A.P., etc.
ISO 9000:2015 'Quality Management Systems – Fundamentals and vocabulary'
ISEAL Alliance 'Sustainability Claims Good Practice Guide', May 2015
United Nations 'A Guide to Traceability - A Practical Approach to Advance Sustainability in Global Supply Chains'







A simple and concise statement identifying and describing relevant affected stakeholder categories (including small
and medium sized enterprises) and how they will each benefit from or be impacted by the proposed deliverable(s)The list of affected stakeholders includes, but is not limited to, the following:Producers in all supply-chains, incl. multinationals and small and medium sized companies;

Farmers, originators;Consumers and production industry in general;

Traders;

Local and national governments;



NGOs;



Certification bodies;Round table initiatives dealing with requirements for raw materials;



Investment companies;Service providers (e.g. chain of custody systems);



Universities dealing with supply chain management

Liaisons:

Joint/parallel work:

A listing of relevant external international organizations
or internal parties (other ISO and/or IEC committees) to
be engaged as liaisons in the development of thedeliverable(s).
a. ISO/TC 34/SC 17 Food safety and SC 18 Cocoa (incl.
CEN/TC 4502), ISO/TC 207/SC 2 “Auditing and related
investigations”, ISO/PC 287 Forest based products 2)
b. Roundtables in general, Marine Steward Council (MSC),
Forest Stewardship Council (FSC); Programme for theEndorsement of Forest Certification (PEFC), RSPO,RTRS, RSB, Better Biomass, etc.
c. ISEAL Allianced. Food and Agriculture Organization of the United Nations(FAO), International Accreditation Forum (IAF), Bureau
International pour la Standardisation des Fibres
Artificielles (BISFA), International Cocoa Farmers
Organization (ICCFO)
e. GS1

Possible joint/parallel work with:IEC(please specify committee ID)

CEN(please specify committee ID)

Other(please specify)

2 The project proposal has been discussed in more detail with the committee leadership and members

FORM 4 (ISO) v. 2012

Page 3 of 4

New work item proposal

A listing of relevant countries which are not already P-members of the committee.

n.a.
Preparatory work (at a minimum an outline should be included with the proposal)
A draft is attachedAn outline is attachedAn existing document to serve as initial basis

The proposer or the proposer's organization is prepared to undertake the preparatory work required
Proposed Project Leader (name and e-mail address)
to be confirmed

Yes

No

Name of the Proposer(include contact information)
Piet-Hein Daverveldt
General Manager NEN
the Netherlands
energy@nen.nl

Supplementary information relating to the proposal
This proposal relates to a new ISO document;This proposal relates to the amendment of existing ISO document
This proposal is for the revision of an existing ISO document;This proposal relates to the adoption as an active project of an item currently registered as a Preliminary Work Item;
This proposal relates to the re-establishment of a cancelled project as an active project.
Other:
Annex(es) are included with this proposal (give details)
 General outline and background of the proposal including the list of stakeholders, who are committed to actively
participate in the workFirst draft text of the proposed generic ISO Chain of Custody standard

FORM 4 (ISO) v. 2012

Page 4 of 4

Proposal for developing a
Horizontal ISO Chain of Custody standard
Chain of Custody – Transparency andtraceability – Requirements
NEN sets the standard

Proposal for developing a
Horizontal ISO Chain of Custody standard
1	The Importance of traceability andChain of Custody today
Understanding the origin of raw materials, product components
and products is continuously gaining importance. Consumers andproducers want to avoid issues with health and safety, ecology, andsocial compliance. The main drivers are government policies andconsumer market demands. Companies directly active in the supply chain (traders, manufacturers, retailers) as well as companies
investing in such companies need traceability to understand therisks, to secure quality and to manage reputation risks.
Chain of Custody (CoC) systems have become an indispensable
element of many different certification schemes for products andcommodities; they enable information about production characteristics to flow through the supply chain to intermediate users andend consumers. CoC systems are now part and parcel of certification for food safety, sustainable agriculture or forestry, social
compliance in manufacturing, and many others.
Although these many systems differ in semantics, presen­tation,and focus, they deal with the same problem. They make thesame distinctions between different degrees of traceability fromIP (identity preserved) to different options that allow mixing ofvarious flows (such as ‘mass balance’), or even purely administrative systems that do not guarantee physical traceability (such as‘certificate trade’).

2	Problems caused by the proliferation of
traceability systems and variety in definitions
The proliferation of traceability systems and definitions is causing
unnecessary confusion, complexity, and costs for different players
in different supply chains.
End product manufacturers and traders delivering to manufacturers have to comply with an increasing variety of systems requiredby their customers, leading to unnecessarily high administrative
costs and time investment. Retailers who sell tens of thousandsof consumer products have to dedicate considerable efforts toassess the reliability of chain traceability; even if only required fora selection of components in a selection of their retail assortment.
This task has become unnecessarily complex because of theexistence of various certification schemes, self-assessments andverification schemes that tend to use mutually conflicting CoC

definitions. The result is more paperwork in the company andhigher costs than strictly required.
A similar case can be made for investors who need to get insight
into the supply chain risks of the companies and sectors they
invest in.
Apart from these internal administrative costs made by manufacturers, traders, retailers, investors, and others, there are unnecessarily high external costs for auditing. Different audits have to be
carried out for different supplies by auditors accredited for different
certification systems, even if they are supplied by the same supplier.
In addition, there are costs associated with standard setting andcertification organisations. When setting up the CoC component,
the organisations lose valuable time to produce systems and definitions that eventually are almost identical to existing systems.
The complexities and resulting costs of various CoC standards area barrier to market access, especially for smaller companies anddeveloping countries.

3	The Solution:
A multi sector ISO Chain of Custody standard
A simple solution can drastically reduce the costs and the loss oftime caused by the present variety of CoC definitions and system.
Recognising that the definition of CoC requirements and traceability levels can be defined independent of sectors, raw materials,
products, and issues addressed, the proposed solution is a multi
sector globally applicable ISO CoC standard to which existing
systems may refer to and on which new systems can base theirdefinition of CoC requirements.
Eventually, the result will be a separation of specific requirements
in a standard in relation to the subject it covers (e.g. sustainability,source, safety) and generic requirements related to the CoC.
The initiative to formulate this multi sector ISO standard has beentaken by NEN in close cooperation with the Dutch government andmostly multi-national representatives from private sector companies and industry associations, round tables and certification
organisations. The initiative is strongly supported by these players,
who are convinced that rolling out a generic ISO CoC standard

will effectively reduce complexity, costs, supply chain risk andunnecessary use of time.

4	The draft document
The proposed ISO standard for Chain of Custody intends toincrease transparency in value chains by specifying traceability
requirements for the individual supply chain actors. It will describe
a set of requirements to ensure that the products with specified
characteristics sold or shipped by a supply chain actor (SCA), canbe physically and/or administratively connected to a corresponding
amount of input material with the same specified characteristics.
The standard will define the commonly used terms and definitions
using the globally accepted ISO language as reference (e.g. ISO
9001:2015; ISO 22000, ISO 26000 etc.) making the modular useof various related standards possible. The definitions include thedifferent supply chain models, their traceability levels and their
specific requirements regarding administration, physical handling
activities, traceability levels, conversion rates, transactions andstock activities relating to the product et cetera.
The longer term vision is that eventually all major certification
systems, with all their variety in focus on different sectors anddifferent issues, will refer to the ISO CoC standard for the definitionof their terminology. This will then enable simplification of the
CoC requirements defined by those standards. No longer will thedevelopment of specific CoC requirements be necessary for eachsystem. It will then suffice to refer to the ISO standard.

5	Development and global implementationof the ISO standard: next steps
Strong industry support, especially from global players, is essential
for the success of this new standard within ISO. To make it atruly horizontal standard, buy-in from a variety of sectors dealing
with varying issues is important. In the initiating phase within thenational context of NEN there is already strong buy-in from the
manufacturing industry from various sectors (a.o. food, consumer
goods, energy, construction industry) retail, certification schemes
and round table initiatives and government. The proposal is pre­pared by the signatories in this letter who are committed toactively participate in the work.
The possible draft for an international standard on CoC requirements will be available at the national standardisation bodies fromMay 2016 to clarify the proposed structure of the document. This
draft may be used to prepare a first working draft in the global
context of ISO. In developing the ISO standard, good cooperation – and not competition – between the owners of certification
schemes, self-assessments and verification schemes and the
ISO members is required.
We ask all members of ISO to also actively consult the various
stakeholder groups and sectors within their countries for support
and active participation in this new field of work.

Participants February 2016
Organization
ABN AMRO
Ahold
ChainPoint

AA_fullcolourC.eps
ABN AMRO full-colour for coated paper
Width shield: 20 mm
Overlap: 0,05 mm

Control Union
DuraCert
Dutch Ministry of Economic Affairs
eLignaFNLI - Dutch Federation for Food Industry(representing a.o. Nestlé, Danone, Akzo, Kelloggs)
GMP+ International
Hidde van Kersen (Consultant)Isafor
MSC - Marine Stewardship Council
MVO - Netherlands Oils & Fats Industry(representing a.o. Unilever, Cargill, Wilmar, Agrifirm)
Nevedi
Reinier de Man (Consultant)
RSPO - Round Table on Sustainable Palmoil
RVO
Schutter Rotterdam B.V.
UTZ
Vereniging Nederlandse Kerftabak Industrie (VNK)/
Stichting Sigaretten Industrie (SSI)
VVNH - Koninklijke Vereniging Van Nederlandse
Houtondernemingen

NEN
P.O. Box 5059
2600 GB Delft
Vlinderweg 62623 AX Delft
The Netherlands
T +31(0)15 2 690 326
energy@nen.nl
www.nen.nl

NEN sets the standard

S t i c h t i n g

SigarettenIndustrie© ISO 2015 – All rights reserved

ISO/TC /SC N
Date: 2015-10-16

ISO/WD
ISO/TC /SC /WG
Secretariat: NEN

Chain of Custody — Transparency and traceability — RequirementsÉlément introductif — Élément central — Élément complémentaire

Warning
This document is not an ISO International Standard. It is distributed for review and comment. It is subject tochange without notice and may not be referred to as an International Standard.
Recipients of this draft are invited to submit, with their comments, notification of any relevant patent rights ofwhich they are aware and to provide supporting documentation.

Document type: International Standard
Document subtype:
Document stage: (20) Preparatory
Document language: E
C:\Users\tcoste\ownCloud\documents\310287\TG 1 CoC
Standard CoC_revised 20160413.doc STD Version 2.5astandard\documents\N0##_ISO_(E)

Draft

0

ISO/WD

Copyright noticeThis ISO document is a working draft or committee draft and is copyright-protected by ISO. While thereproduction of working drafts or committee drafts in any form for use by participants in the ISO standards
development process is permitted without prior permission from ISO, neither this document nor any extractfrom it may be reproduced, stored or transmitted in any form for any other purpose without prior written
permission from ISO.
Requests for permission to reproduce this document for the purpose of selling it should be addressed asshown below or to ISO's member body in the country of the requester:[Indicate the full address, telephone number, fax number, telex number, and electronic mail address, as
appropriate, of the Copyright Manager of the ISO member body responsible for the secretariat of the TC or
SC within the framework of which the working document has been prepared.]
Reproduction for sales purposes may be subject to royalty payments or a licensing agreement.
Violators may be prosecuted.

ii© ISO 2015 – All rights reserved

ISO/WD

Contents

Page

Foreword ............................................................................................................................................................ iv
Introduction ......................................................................................................................................................... v
1

Scope ...................................................................................................................................................... 1

2

Normative references ............................................................................................................................ 1

3

Terms and definitions ........................................................................................................................... 2

4
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8

General requirements ........................................................................................................................... 4
Documented management system ...................................................................................................... 4
Monitoring .............................................................................................................................................. 4
Record keeping ...................................................................................................................................... 4
Identification of input and output ........................................................................................................ 5
Conversion rates ................................................................................................................................... 5
Inventory balancing ............................................................................................................................... 5
Volume reconciliation? ......................................................................................................................... 5
Training................................................................................................................................................... 5

5
5.1
5.2
5.2.1
5.2.2
5.2.3
5.2.4
5.3
5.3.1
5.3.2

Supply chain models for (physical) traceability ................................................................................. 5
General ................................................................................................................................................... 5Segregation (SG) ................................................................................................................................... 6
General ................................................................................................................................................... 6
Supply chain requirements .................................................................................................................. 7
Processing ............................................................................................................................................. 7
Identity Preserved (IP) ........................................................................................................................... 7
Mixed....................................................................................................................................................... 8Controlled Blending (CB)...................................................................................................................... 8
Mass Balance (MB) ................................................................................................................................ 8

Annex A (normative) Types of characteristics ............................................................................................. 10
Annex B (informative) Mass balance method............................................................................................... 11
Bibliography ...................................................................................................................................................... 12© ISO 2015 – All rights reservediiiISO/WD

Foreword
ISO (the International Organization for Standardization) is a worldwide federation of national standards bodies(ISO member bodies). The work of preparing International Standards is normally carried out through ISO
technical committees. Each member body interested in a subject for which a technical committee has been
established has the right to be represented on that committee. International organizations, governmental andnon-governmental, in liaison with ISO, also take part in the work. ISO collaborates closely with theInternational Electrotechnical Commission (IEC) on all matters of electrotechnical standardization.
International Standards are drafted in accordance with the rules given in the ISO/IEC Directives, Part 2.
The main task of technical committees is to prepare International Standards. Draft International Standards
adopted by the technical committees are circulated to the member bodies for voting. Publication as an
International Standard requires approval by at least 75 % of the member bodies casting a vote.
Attention is drawn to the possibility that some of the elements of this document may be the subject of patentrights. ISO shall not be held responsible for identifying any or all such patent rights.
ISO was prepared by Technical Committee ISO/TC , Chain of Custody, Subcommittee SC , .
This second/third/... edition cancels and replaces the first/second/... edition (), [clause(s) / subclause(s) /table(s) / figure(s) / annex(es)] of which [has / have] been technically revised.

iv© ISO 2015 – All rights reserved

ISO/WD

Introduction
Understanding the origin of raw materials, product components and products is continuously gaining
importance. Consumers and producers want to avoid issues with health and safety, ecology, and social
compliance. The main drivers are government policies and consumer market demands. Companies directly
active in the supply chain (traders, manufacturers, retailers) as well as companies investing in suchcompanies need traceability to understand the risks, to secure quality and to manage reputation risks.
Chain of Custody (CoC) systems have become an indispensable element of many different certification
schemes for products and commodities; they enable information about production characteristics to flow
through the supply chain to intermediate users and end consumers. CoC systems are now part and parcel ofcertification for food safety, sustainable agriculture or forestry, social compliance in manufacturing, and manyothers.
Although these many systems differ in semantics, presentation, and focus, they deal with the same problem
and make the same distinctions between different degrees of traceability from IP (identity preserved) todifferent options that allow mixing of various flows. The proliferation of traceability systems and definitions is
causing unnecessary confusion, complexity, and costs for different players in different supply chains. The
complexities and resulting costs of various CoC standards are a barrier to market access, especially forsmaller companies and developing countries.
The aim of this standard is to provide unambiguous specifications of the different traceability levels and thecorresponding requirements regarding the chain of custody, which are independent of sectors, raw materials,
products, and issues addressed. This multi sector globally applicable ISO standard will serve as a reference
point for chain of custody requirements in existing and future standards.

© ISO 2015 – All rights reservedv

WORKING DRAFT

ISO/WD

Chain of Custody — Transparency and traceability —Requirements

1

Scope

This International Standard is intended to increase transparency in supply chains by specifying traceability
requirements for the individual supply chain actors.
This International Standard specifies a set of requirements to ensure that the products with specified
characteristics handled by a supply chain actor (SCA), can be physically and/or administratively connected toa corresponding amount of input material with the same specified characteristics.
This standard defines different supply chain models, their traceability levels and their specific requirements
regarding administration, physical handling activities, traceability levels, conversion rates, transactions andstock activities relating to the product et cetera.
These fundamental concepts and principles of chain of custody management cover the whole supply chain
and are universally applicable to the following stakeholders:

organizations seeking sustained success through the implementation of a chain of custody management
system;

customers seeking confidence in an organization’s ability to consistently provide products and services
conforming to their requirements;organizations seeking confidence in their supply chain that product and service requirements will be met;organizations and interested parties seeking to improve communication through a common understandingof the vocabulary used by supply chain actors;developers of related standards.

This International Standard is applicable in all sectors and to all products with specific characteristics, which
are transferred between two or more SCA's. Services are not included in the scope of this Standard.

2

Normative references

The following referenced documents are indispensable for the application of this document. For dated
references, only the edition cited applies. For undated references, the latest edition of the referenced
document (including any amendments) applies.
ISO ab-c:199x, General title of series of parts — Part c: Title of partISO xyz (all parts), General title of the series of parts© ISO 2015 – All rights reserved

1ISO/WD

3

Terms and definitions

For the purposes of this document, the following terms and definitions apply.
3.1
product
substance, mixture of substances, material or object resulting from physical handling
Note 1 to entry:

Product can be an intermediate, material, semi-finished or final product.

3.2
physical handlingprocessing, receipt, repacking, storage and dispatch or a combination of these where a risk of mixing occurs
3.3
tracking
ability to trace the history, application or location of a product through the supply chain (upstream >downstream)
3.4
traceability
ability to trace the history, application or location of a product (downstream > upstream)
Note 1 to entry: When considering a product or a service, traceability can relate to:— the producer/producer group of materials and parts;— the processing history;— the distribution and location of the product or service after delivery.
Note 2 to entry: In the field of metrology, the definition in ISO/IEC Guide 99 is the accepted definition.

[SOURCEISO 9000:2015]]

3.5
traceability level
defines to what degree a product can be traced back to its source.
3.6
recorddocument stating results achieved or providing evidence of activities performed
Note 1 to entry: Records can be used, for example, to formalize traceability and to provide evidence of verification ,preventive action and corrective action.
Note 2 to entry: Generally records need not be under revision control.

[SOURCEISO 9000:2015]

3.7
verification
confirmation, through the provision of objective evidence , that specified requirements have been fulfilled
Note 1 to entry: The objective evidence needed for a verification can be the result of an inspection or of other forms ofdetermination (3.11.1) such as performing alternative calculations or reviewing documents .
Note 2 to entry: The activities carried out for verification are sometimes called a qualification process .

2© ISO 2015 – All rights reserved

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Note 3 to entry: The word “verified” is used to designate the corresponding status.

[SOURCEISO 9000:2015]

3.8
characteristic
distinguishing feature
Note 1 to entry: A characteristic can be inherent or assigned.
Note 2 to entry: A characteristic can be qualitative or quantitative.
Note 3 to entry: There are various classes of characteristic, such as the following: a) physical (e.g. mechanical, electrical,
chemical or biological characteristics); b) sensory (e.g. related to smell, touch, taste, sight, hearing); c) behavioural (e.g.
courtesy, honesty, veracity); d) temporal (e.g. punctuality, reliability, availability, continuity); e) ergonomic (e.g.
physiological characteristic, or related to human safety); f) functional (e.g. maximum speed of an aircraft); g) production
process (e.g. sustainably produced)[SOURCEISO 9000:2015]

3.9
supply chain
The series of processes/steps through which products pass from the source up to –but not including- the end
user
3.10
supply chain actor
SCA
An entity that operates within the supply chain.
Note 1 to entry: Examples of SCA’s are processors, subcontractors, packers, traders, brokers, wholesalers,slaughterhouses, logistics, retail distribution centers, etc.

3.11
sourceprimary originator of a product with a specified characteristic
Note 1 to entry: Primary origin is typically a raw material supplier, but can also be a manufacturer or processor adding thespecified characteristic.
Note 2 to entry : Examples of characteristics are: child labour free, labour conditions, CO2 emissions, et cetera

3.12
self-assessment
evaluation of its own implementation level of the standards performed by a SCA itself.
3.13
traceability systemmanual or automatic administration tool to monitor incoming and outgoing products with specificcharacteristics within a certain timeframe.
Note 1 to entry: The implementation of a traceability system depends on technical limits inherent to the SCA and products,
ad the cost benefits of applying such a system

OR
Totality of data and operations that is capable of maintaining desired information about a product and its
components through all or part of its production/and or utilization chain [Source WD/EN ISO 19381-3:2015]© ISO 2015 – All rights reserved

3ISO/WD

4

General requirements

4.1 Documented management system
The SCA shall have a clearly documented management system, which addresses each Chain of Custodyrequirement.
The documented management system shall:a) specify the personnel responsible for the various requirements of the Chain of Custody Standard.
b) specify the procedures in place for the implementation of the Chain of Custody Standard. These
procedures:
1)

take into account the traceability level(s);2)

specify how records are kept.

c) provides templates, forms, records, and documents necessary for compliance with the standard.
All documentation shall be legible, dated, and up-to-date.
If an SCA makes use of interactive transaction registration system, the SCA shall do this truly accurately (theauditor shall be able to compare data in the system with the administration at the SCA’s offices)

4.2 Monitoring
The SCA shall monitor the compliance with all applicable criteria. The frequency is generally based on a risk
assessment; at least annually is most common. The internal self-assessment covers all processes and sites
handling the product and has been completed under the responsibility of the SCA.

4.3 Record keeping
The SCA shall have documentary evidence of compliance with all requirements of the Chain of Custody
standard. This shall include written Chain of Custody procedures. The SCA shall ensure that all records
relevant for Chain of Custody are adequately prepared, used and maintained.
All records are a kept for a defined period of time and be able to confirm the status of products held in stock.
The records may consist of written documents and procedures and/or an automated traceability system.
Records of all transactions are available (documents generated when a transaction is registered, or overview
of all transactions registered) and should allow validation of the traceability level (at batch level).
Examples of transaction records include:

4-

Purchase records including purchase orders, contracts, invoices and records of incoming goods
receipts inspections, delivery notes and purchased quantities;-

Stock records of raw materials, stored and finished products and quantities;-

Production records;-

Sales orders, sales invoices issued by the SCA, dispatch information including dates, customers towhich the batch or lot was dispatched, quantities of delivery records;-

Transporter or shipper details.

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4.4 Identification of input and output
The SCA operates a system for ensuring, verifying, and monitoring that the purchased product meets the
specifications.
This system includes:a) Verification of invoices and/or documents coming from the supplier.
c) Verification that inputs received are of equal or “higher” traceability level than the output.
d) Ensuring that each purchase is individually identifiable via a unique transaction identification.
Documentation relating to the sale of product includes a reference to the corresponding traceability level.

4.5 Conversion rates
The SCA shall ensure that conversion rates are accurate and justifiable.
The conversion rates used within each processing facility are indicated in the records relating to thetransformation of the product, and kept up-to-date.

4.6 Inventory balancing
The SCA makes an overview of the total annual volume purchased and sold product. The overview includes:
stock remaining from the previous year;

inputs received;

inputs still in stock;

outputs still in stock;

outputs sold.

The volume sold shall not exceed the volume purchased.

4.7 Volume reconciliation?
4.8 Training
The organization shall have a training plan, which is subject to on-going review and is supported by records ofthe training provided to staff. Appropriate training shall be provided by the organization for personnel carryingout the tasks critical to the effective implementation of the supply chain certification system. Training shall be
specific and relevant to the task(s) performed.

5

Supply chain models for (physical) traceability

5.1 General
Generally, a Chain of Custody involves more than one supply chain actor. The criteria in the standard apply to
one SCA. If all companies in the chain have properly implemented the criteria, the result is a well-organizedchain of custody.
The product may go through many production and logistical stages when shipped from the source to the sellerof the final product. The general CoC requirements applies to any organization throughout the supply chain© ISO 2015 – All rights reserved

5ISO/WD

that takes legal ownership and/or physically handles the product at a location under the control of theorganization including outsourced contractors. Any product can be traded through one of four supply chain
models that are described in this standard:a) Segregation (SG)This includes identity preserved (IP)b)

Mixed characteristics (MC)This includes:
Controlled blending (CB)

Rolling average (RA)

Mass balance (MB), also known as volume credit

In addition to these models, Annex B specifies a third, alternative model in which the administrative flow is notnecessarily connected to the physical flow of material throughout the supply chain.
c) Book and claim method
For each of the models under a) and b), this section describes specific requirements for control from thesource through the supply chain to the end product. In addition this section specifies to which extend thecharacteristics tracked in the chain my or may not be physically traceable in the product.
As each supply chain model represents a different level of traceability, this International Standard will provide
a basis for different applications and sectors. Users may refer to the standard, clearly stating which levels oftraceability in the CoC as described in this International Standard are allowed for their systems, and which arenot.
Different traceability levels may be used in one supply chain and within one supply chain actor. This choicedepends on the traceability level used by the supplying Supply Chain Actor. Throughout the chain, it is only
possible to choose a traceability level with a physical link that is equal to or lower than the supplied input.
Each of the traceability levels is linked to different options for making product claims at the end of the supply
chain regarding the characteristics of the input material.
The following hierarchy applies:
1. Identity Preserved (IP)
2. Segregation (SG)
3. Controlled blending (CB) and Rolling average (RA)4. Mass balance (MB)5.2 Segregation (SG)
5.2.1

GeneralProducts from different sources are mixed, based on identical specified characteristics. However, the identityof the specific source may be lost.

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Figure 1 — Segregation (SG)[Source: United Nations: A Guide to Traceability – A Practical Approach to Advance Sustainability in Global
Supply Chains, pg. 11]]

5.2.2

Supply chain requirements

The segregation model requires that the products with similar characteristics are kept separate at every stageof production, processing, refining and manufacturing throughout the supply chain. This model does allow for
the mixing of various sources. Therefore the final product delivered to the end user will not be fully traceable
to a single source.
5.2.3

Processing

The site shall assure and verify through clear procedures and record keeping that the products with similar
characteristics are kept segregated including during transport and storage.
5.2.4
5.2.4.1

Identity Preserved (IP)GeneralThe characteristics of a specific source is maintained along the supply chain. The IP product can be traced all
the way back to the source that it originates from.
Include flowchart / process figure
5.2.4.2

Supply chain requirements

The processing facility shall ensure that the IP product is kept physically isolated from all other (IP) products
and is uniquely traceable to a single source.
5.2.4.3

Processing

The site shall assure and verify through documented procedures and record keeping that the product is kept
separate from other material, including during transport and storage.

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5.3 Mixed
5.3.1
5.3.1.1

Controlled Blending (CB)
GeneralProducts with specific characteristics are mixed with products without these characteristics. The ratio between
these inputs is known for all outputs at all times. The output is a percentage that can be verified.
5.3.1.2

Supply chain requirements

5.3.1.3

Processing

5.3.2
5.3.2.1

Rolling average (RA)GeneralProducts with specific characteristics are mixed with products without these characteristics. The ratio between
these inputs is known but varies over time. The output is an average (percentage).
5.3.2.2

Supply chain requirements

5.3.2.3

Processing

5.3.3

Mass Balance (MB)5.3.3.1

GeneralMass balance traceability allows a proportion of the outputs of a Supply Chain Actor to be sold with certain
characteristics, which are corresponding with the quantity of input material with these characteristics (andconsidering the conversion rates). The input and output materials shall be balanced within a specified
timeframe and geographical area. It gives the users the opportunity to track for input material properties incase of continuous processes, multiple input or multi-sites. As the balancing is most of the time based on acredit accounting system, hence mass balance can also be referred to as volume credit.

Figure 2 — Mass Balance (MB)8© ISO 2015 – All rights reserved

ISO/WD[Source: United Nations: A Guide to Traceability – A Practical Approach to Advance Sustainability in Global
Supply Chains, pg. 12]

5.3.3.2

Supply chain requirements

The basis of the supply chain requirements for Mass Balance will consist of reconciliation between thequantity of product bought and the quantity of product sold. This includes control of purchases and sales ofthe product and its derivatives which will be independently verified. There are no requirements for separate
storing or controls in the production process.
5.3.3.3

Processing

The site shall ensure that the quantity of physical product inputs and outputs (volume or weight) at thephysical site are monitored.
The processing facility shall ensure that the output supplied to customers from the physical site does notexceed the input received at the physical site, using either a continuous accounting system or a fixedinventory period.
5.3.3.4

Continuous accounting system

5.3.3.5

Fixed inventory periods- start with positive stock?
- is SCA allowed to sell short? (product can be sold before it has arrived) / does stock include deliveries underway.
Difference between selling, shipping announcement and delivery.
Administrative traceability of a product.

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9ISO/WD

Annex A(normative)
Types of characteristics

The following is a classification of characteristics which are often traced using a chain of custody system.
I Product intrinsic characteristics
These are characteristics which are determining the product and its possibilities for processing or application.
a) Dimensions, fluidityb) Physical ( mechanical ,chemical, biological characteristics (e.g. heartwood, fiber structure, chemicalcomposition)c) Sensory (smell, touch, taste, sight, hearing)d) Performance/behavior characteristics(e.g. strength, flexibility, durability, courtesy, honesty)

II (Historical) production process characteristics
These are characteristics which are related to the processing in the supply chain, which may are may notphysically affect the product.
Process characteristics which affect the product characteristics (e.g grinding of wood for pulp production,
sawing of logs)

Process characteristics which do not affect the product determining characteristics (e.g. sustainableproduction of raw material; ILO compliance during manufacturing)

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Annex B(informative)
Book & Claim method

Description of the book & claim method© ISO 2015 – All rights reserved

11ISO/WD

Bibliography[1] ISO 9000:2015 Quality Management Systems – Fundamentals and vocabulary[2] UTZ Chain of Custody Standard version 1.0 July 2015
[3] RSPO Supply Chain Certification Standard For organizations seeking or holding certification Adopted by
the RSPO Board of Governors on 21 November 2014[4] Sustainability Claims Good Practice Guide, ISEAL Alliance, May 2015
[5] United Nations: A Guide to Traceability - A Practical Approach to Advance Sustainability in Global Supply
Chains12© ISO 2015 – All rights reserved