AAF (Annual Administration Fee) is a fee charged by the FSC to the holder and will be used for the daily operation of the FSC. AAF is collected by the certification body on behalf of the certification body and is generally included in the total cost when applying for certification. Forest management (FM) certification applied for by forestry units is charged according to the area, type and intensity of forest land;The Chain of Custody (COC) applied for by wood and paper products enterprises is based on the annual "turnover of forest products" of the enterprise.
AAF is based on the applicant's forest product turnover, and the turnover and enterprise size are different, and the fees are different;Manufacturers and ** merchants, the charges are different.
Note: Forest products turnover includes sales of all products made from forest raw materials, both certified and non-certified. Such as paper products, wood products, bamboo products, etc.
Regarding AAF policy, FSC has a specific document FSC-POL-20-005 that stipulates that in the new version V3-4* released on September 27, 2023, the fees charged by the different levels of AAF are adjusted, and the new policy will take effect on January 1, 2024, and the FSC annual management fee will be charged according to the new standard:
On January 1, 2024, new applications for FSC certificates will be collected directly according to the new standard
If the FSC certificate has already paid the annual fee, if it already contains AAF after January 2024, it is necessary to pay the difference between the new rate;
FSC certificate holders who are about to take the annual examination will be charged at the new rate at the time of the annual examination, and the annual examination fee will be recalculated.
AAF is charged by the certification body for one year, and if you already hold an FSC certificate, the first fee should include the AAF fee for four quarters from the quarter following the date of issue.
For example, if the start date of Company A's FSC certificate is August 5, 2023, then the AAF annual fee for the period from October 1, 2023 to September 30, 2024 should have been paid.
Major changes
Changes:The new AAF policy makes adjustments to the overall AAF rate for COC certificate holders.
Overall, the classification and calculation formula of AAF has not changed, but the rates of each level have changed, and enterprises will pay more AAF fees under the new standard than before
Adjustment before AAF
Adjusted AAF
Note: The minimum AAF for processor and ** certification has increased from US$83 per year to US$91 per annum, and the AAF for newly established businesses or forest products in the previous year will still be charged at US$91.
Note: The minimum AAF for processor and ** certification has increased from US$83 per year to US$91 per annum, and the AAF for newly established businesses or forest products in the previous year will still be charged at US$91.
Here's an example
A processor of forest products with a turnover of US$6,234,567 (approximately RMB44,791,623) falls under the third tranche of AAF (US$5 million to US$2.5 million).
Take this as an example: before the adjustment, the AAF was 1,410 US dollars, about 10,769 yuan;
The adjusted AAF is 1,533 US dollars, or about 11,666 yuan;
The increase is about 897 yuan.
Calculation before adjustment:
Adjusted Calculation Result:
Businesses need to pay attention to:
1. Since the implementation of the V3-0 standard in 2022, all institutions have increased the inspection of the turnover of forest products, and enterprises are required to provide financial statements and other documents.
2. If the enterprise fails to truthfully declare the turnover of forest products, once found, the enterprise may be fined and included in the false list, and cannot apply for FSC in the future.
3. It is recommended that before the enterprise declares, confirm that the information filled in the company's official website contains turnover information, so as to avoid unnecessary troubles during verification.