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Title: Directions for Auditing the Trading Companies and Agents of Fish and Fisheries Products Ch
Date: 2018.01.16
Legislative: 1.The full text of 7 articles promulgated by the Council of
Agriculture, Executive Yuan on May 5, 2015, under Order No.
Nong-Sho-Yu-Tsu 1041333665A.
2.Repealed by the Council of Agriculture, Executive Yuan on 16
January 2018, under Order No. Nong-Sho-Yu-Tzu 1071332067.
Content: Article 1
The Council of Agriculture, Executive Yuan promulgated these 
directions to establish auditing mechanism for trading companies
 and agents of fish and fisheries products (hereinafter referred
 to as “fish trading companies (agents)”), so as to ensure 
catches bought by fish trading companies (agents) from domestic 
or foreign fishing vessels are not involved in illegal, 
unreported and unregulated (IUU) fishing activities.
Article 2
The target of this auditing is any fish trading company (agent), 
selling or being assigned to sell catches and fisheries products 
from Taiwanese distant water fishing vessels, legally registered 
in Taiwan pursuant to relevant laws and regulations, including 
any fish trading agent that has been approved pursuant to the 
Regulations on the Management of Fishing Vessels and Crew in 
Foreign Fishing Bases.
Audit of fishing companies (agents) is conducted by the 
Fisheries Agency, Council of Agriculture (hereinafter referred 
to as “the Fisheries Agency”). The Fisheries Agency shall 
establish a list of authorized fishing trading companies 
(agents), and perform risk assessment to the listed companies 
(agents). Levels of risk are categorized into high, medium, and 
low. Fishing trading companies (agents) with high level of risk 
are the priority targets to be audited.
Methods of risk assessment to fish trading companies (agents) 
and categories of risk levels are as Attachment 1.
Article 3
To conduct audit of fish trading companies (agents), the 
Fisheries Agency may establish an Audit Squad Unit. 
Members of the preceding Audit Squad Unit are commissioned by 
the Fisheries Agency, and a senior specialist will be assigned 
as the convener. If deemed necessary, certified public 
accountants, logistics specialists and relevant experts may be
 commissioned to render assistance.
Article 4
Items for auditing fish trading companies (agents) shall 
include the followings:
1.Fish trading companies (agents) shall collect the latest 
  laws and regulations on fisheries as well as trading, and 
  conduct training programs so that both employees and 
  managers understand relevant conservation and management 
  measures applicable to fishing vessels adopted by regional 
  fisheries management organizations, as well as related laws 
  and regulations promulgated by flag States and market States, 
  so as to ensure their purchase and sale activities are in line
   with domestic and international regulations.
2.Fish trading companies (agents) shall establish code of 
  conduct as well as standard operating procedure (SOP) of 
  purchase and sale of catches and fisheries products and shall 
  implement the code of conduct and SOP thoroughly, so as not to 
  purchase or sell IUU catches and fisheries products.  
3.Fish trading companies (agents) shall archive relevant 
  documents and bills of purchasing and selling catches and 
  fisheries products for at least three years, so as to ensure 
  each consignment of catches could be traced.
4.Fish trading companies (agents) shall establish a mechanism to 
  deal with IUU catches and fisheries products detected, so as 
  to avoid IUU catches and fisheries products to enter into 
Article 5
Auditing procedures are as follows:
1.The Fisheries Agency shall notify fish trading companies 
  (agents) in written of the auditing procedures and items and 
  the possible consequences in case of failing the audit.
2.Upon receipt of the audit notification from the Fisheries 
  Agency, a fish trading company (agent) shall submit the Report
   of the Fish Trading Company (Agent) (format as shown in 
  Attachment 2) within the notified timeframe to the Fisheries 
  Agency for review. After reviewing the report, if deemed 
  insufficient, the Fisheries Agency may request the company 
  (agent) to provide supplementary information within specified 
  timeframe. The information provided by the fish trading 
  company (agent) shall include:
(1)Its code of conduct and SOP of purchase and sale of catches 
   and fisheries products.
(2)Its mechanism to deal with IUU catches and fisheries products
(3)Other relevant information on trading catches and fisheries 
   products that can prove the flow of traded catches and 
   fisheries products.
3.After reviewing the report and documents provided by the fish 
  trading company (agent), the Fisheries Agency may dispatch 
  auditor(s) to the registered location or the major operating 
  location of that trading company (agent) to conduct field 
  audit, so as to verify the prior checking mechanism, SOP of 
  purchase and sale, archives maintenance and other systems 
  established by that company (agent). Methods of field audit 
  includes interview with personnel in charge of purchase and 
  sale and random inspection on documents and bills, etc.
4.The Audit Squad Unit shall audit the internal control systems 
  of the company (agent), including the information provided to 
  the Fisheries Agency, status of implementation, inventory 
  movement of catches and fisheries products, traceability and 
  archives maintenance, and fill out the “ Field Audit Form” 
  (format as shown in Attachment 3) which records conformity or 
  inconformity and item(s) with defect. The Audit Squad Unit 
  shall also fill out “Item(s) with Defect and Improvement” 
  column of the “Recommendations on Further Actions” (format 
  as shown in Attachment 4) within thirty days after the 
  completion of field audit, and inform the fish trading 
  company (agent) of the auditing results in written.    
5.Upon receipt of the auditing results in written from the 
  Fisheries Agency, the fish trading company (agent) shall make
   improvement on the item(s) with defect, fill in the 
  “Improvements Made by the Fish Trading Company (Agent)”
  column of the preceding “Recommendations on Further Actions”
   and report in written to the Fisheries Agency for review 
  within thirty days. In the event that the fish trading 
  company (agent) can’t complete the improvement within the 
  aforementioned timeframe, it may apply for only one extension
   of deadline, which shall be limited to another thirty days. 
  After reviewing, the Audit Squad Unit will inform the fish 
  trading company (agent) of the comments in written. In case 
  that item(s) with defect still remains, it/they should be put 
  into the record.
Article 6
The auditing frequency shall be conducted in accordance with the 
following provisions, except for circumstances stipulated in 
paragraph 2 to 4 of this Article:
(1)For fish trading companies (agents) with high level of risk, 
   audit shall be conducted at least once every year.
(2)For fish trading companies (agents) with medium level of risk,
   audit shall be conducted at least once every two years.
(3)For fish trading companies (agents) with low level of risk, 
   they may be exempted from being audited.
Auditing frequency for fish trading companies (agents) with 
records of defect for more than three times may be increased.
For fish trading companies (agents) with no record of defect for 
three consecutive years, they may be exempted from being audited 
in the next year.
In the event that fish trading companies (agents) are reported 
to have been involved in IUU activities or abnormal indication 
appears during the application for catch certificates, the 
Fisheries Agency may conduct audit to the trading companies 
(agents) concerned.
Article 7
From January 1 2016, for any fish trading company (agent) with 
defect records for more than three times within one year, the 
Fisheries Agency may prohibit such trading company (agent) from
 selling or being assigned to sell catches and fisheries 
products pursuant to relevant regulations.