Businesses that acquire, distribute, or broker the transportation of food products without.coming into direct physical contact with the products are fully liable for the safety and legality of their transactions. The BRCGS Agents and Brokers Standard was developed specifically for such businesses. It provides traders and importers with a way to certify that their procurement practices, documentation, and supply chains meet international standards of food safety.
The following article describes the requirements of the BRCGS Agents and Brokers Standard, who needs it, the procedure of certification, and how Indian traders and importers can become certified.
Agricultural food chains are seldom straightforward from the farm to supermarket shelves. One shipment of spices, grains or other bulk ingredients can change hands multiple times until it arrives at the hands of a producer or wholesaler, where it is bought by an agent who finds the supplier, then a broker who sets the terms of sale, a trading firm that assumes ownership, and a logistics firm that deals with warehousing and transportation. No one in the chain has ever processed the product but makes choices about the product’s safety, legality and traceability. The BRCGS Agents and Brokers standard has been created to regulate this chain.
What Is the BRCGS Agents and Brokers Standard
The BRCGS Agents and Brokers Standard is a set of certification guidelines developed by BRCGS (Brand Reputation Compliance Global Standards) specifically targeting non-manufacturing enterprises involved in the food distribution chain. Unlike the BRCGS Food Safety Standard, which is relevant for the certification of manufacturers and processors, this standard was developed for businesses which procure, trade, act as agents or brokers of food products or organize the storage and transportation of goods between buyers and sellers.
As mentioned above, the standard belongs to the BRCGS Supply Chain Assurance suite of standards and serves the purpose of narrowing the gap between manufacturing and trading certification.
Due diligence checks, supplier approval, product specifications, traceability, legality of claims and control of subcontracted activities such as product storage and transportation are among issues covered by the standard.
Since agents and brokers don’t always have direct access to the products, the assessment of control by certification bodies is performed on the basis of documents, contracts and systems and not through production line observation, which distinguishes audit from manufacturing certification. Auditors analyze supplier selection and monitoring procedures, verification of authenticity of claims, for example about organic and GMO-free products and product traceability.
Who Needs BRCGS Agents and Brokers Certification
This certification is relevant to any enterprise that engages in commercial ownership and/or acts as an intermediary for food products without manufacturing/processing them. These include:
- Importers and exporters of foods, raw materials, or packaging material
- Commodity brokers or agents negotiating purchases and sales of commodities
- Firms providing warehouse space, repacking services, or shipping using sub-contracted third parties
- Trading divisions of manufacturing companies that may buy supplies from other companies
- Traders for private label and own brands products for retail and food service companies
More and more retailers, brands, and manufacturers insist on obtaining BRCGS Traders Certification or BRCGS Importers Certification from their suppliers. Having such a certificate means that a company demonstrates the same level of due diligence and traceability as a certified manufacturer demonstrates when producing products.
Some small and medium-sized trading companies think that certification is relevant only for big international brokers. The point is that in today’s market buyers try to impose the necessity of having such a certificate upon their suppliers, and the size of the company does not matter because any weak link within the supply chain, no matter if it is a small two-person sourcing company or a big exporter, can make a product illegal and unsafe.
Key Requirements of the BRCGS Agents and Brokers Standard
BRCGS Agents and Brokers Standard is a collection of key clauses that auditors check during certification. Below is a table that gives a summary of some of the main requirements.
The above mentioned requirements address a common concern for new applicants that can be phrased in the following way – “What are the requirements for BRCGS Agents and Brokers Standard?” To sum it up shortly, the standard requires control over the source selection to be documented and traceable under audit conditions.
BRCGS Agents and Brokers Certification Process
The certification process follows a step-by-step process, which is like that of other BRCGS certifications but covers trade rather than manufacturing.
- Gap analysis of the existing version of BRCGS Agents & Brokers standard
- Update and development of food safety and quality management system, supplier records, and specification sheets
- Conducting internal audit and management review for verification of preparedness
- Identification of a BRCGS Approved Certification Body and appointment of an audit
- Audit either through site visit or remotely that involves documentation review, traceability exercise, and site visit where required
- Resolution of all non-conformances within the stipulated time frame
- Issuance of certificate and listing on BRCGS directory once approved
Certificates are normally valid for one year, after which there is a need to conduct an annual recertification audit to keep the listing.
The time taken for an audit will depend on how big the business of the trader is and its level of complexity, how many types of goods they deal with, and if the firm outsources storage and transport of the commodities. Businesses dealing with fewer varieties of goods from few reliable suppliers take less time in conducting the audit compared to those with more than dozens of supplier businesses in several countries.
How to Obtain BRCGS Agents and Brokers Certification in India
BRCGS Agent & Broker certificate is sought after by Indian firms dealing in food ingredients, spices, grains, or even packaged food products to foreign retail buyers on many occasions. Steps required for BRCGS Agent & Broker certification in India are basically the same as elsewhere, but with some unique aspects particular to Indian exporters.
- Determine whether the BRCGS category falls under the Agents and Brokers Standard, or other Storage and Distribution categories if there is additional storage capability
- Consult an outside expert or apply internal expertise for creating supplier approval documents and traceability documentation according to the rules of exporting from India
- Select an authorized certifying agency that works in India, many of which provide remote and hybrid audit opportunities
- Coordinate your documentation according to BRCGS standards and Indian regulatory agencies, such as FSSAI and APEDA, in case of exports
- Consider budgeting for annual surveillance audits because the certification is not a one-off process but annual one
It has been observed that Indian procurement agents and trading houses exporting goods to Europe, the UK, and North America have experienced that BRCGS certification has enabled them to engage in discussions with buyers who do not allow procurement from other than a list of approved suppliers. This is because all the certificates are available in the BRCGS directory, and therefore, there is no need to send the compliance document.
BRCGS Traders Certification vs BRCGS Importers Certification
These two terms refer to the same BRCGS Agents and Brokers standard certification process, although they differ in focus based on the involvement of the company in the transaction.
However, in reality, most organizations do both and obtain certifications under one scope of audit, with the certification showing the exact activities carried out by the business. For example, a trading organization that also directly imports goods into its domestic market for further delivery would have to ensure that its scope of certification covers both operations because the audit considers the actual functions performed by the business.
Role of BRCGS Supply Chain Assurance
BRCGS Supply Chain Assurance forms an overarching structure linking the Agents & Brokers standard to other standards applicable outside of manufacturing, including the Storage & Distribution standard. This ensures that retailers and brand owners can be confident in all elements of the supply chain and not just manufacturing.
- Eliminates the necessity for buyers to carry out independent supplier audits for each of their business partners
- Establishes a single standard for conducting due diligence among agents, brokers, importers, and distributors
- Facilitates quick acceptance by retailers who demand BRCGS certification from their suppliers
- Improves the recall and traceability process for multi-agent supply chains
In deciding whether to seek certification, BRCGS Supply Chain Assurance should be seen by companies as the middle layer which gives meaning to manufacturing certifications further down the line. A company’s guarantees through certification only stand until the next link, because if the intermediary party between the company and the retailer has no similar systems in place, then the assurances inherent in the manufacturing certificate become null and void before even reaching the shelf.
Benefits of BRCGS Agents and Brokers Standard Certification
- Compliance with increasing demands of retailers and manufacturers
- Ensures diligence in choosing suppliers and verification of products’ legal status
- Increases traceability within the company and its readiness to respond to incidents
- Gives access to buyers who limit sourcing only to BRCGS-certified partners
- Establishes an auditable system for sustainable development of the business
Key Takeaways
- The BRCGS Agents and Brokers Standard is used for certification of traders, brokers, and importers that do not physically manufacture food products
- The core criteria include supplier evaluation, traceability, specification, and incident handling
- There are two sub-certifications under the standard, which are BRCGS Traders Certification and BRCGS Importers Certification
- This certification is sought by Indian exporters and trading companies mostly due to the buyer requirements from abroad
- The standard is included in the overall scope of BRCGS Supply Chain Assurance program
FAQs
What are the BRCGS Agents and Brokers certification requirements for traders and importers?
The requirements are supplier approval, specification control of products, traceability, and legality checks for all products traded.
Who needs BRCGS Agents and Brokers certification?
Any company trading, brokering, or importing food products, which do not manufacture them.
How to obtain BRCGS Agents and Brokers certification in India?
Indian companies conduct a gap analysis, develop supplier and traceability documentation, and get audited by an accreditation body.
What are the requirements of the BRCGS Agents and Brokers Standard?
The requirements include management commitment, suppliers and manufacturers’ approval, traceability, contracts and incidents management.
Is BRCGS Traders Certification the same as BRCGS Importers Certification?
They both fall into BRCGS Agents and Brokers Standard, but the distinction is in what type of business the company is engaged in – trading, importing or both.
How long is a BRCGS Agents and Brokers certificate valid?
It is 12 months on average, and it should be annually recertified through auditing in order to stay certified.
Does BRCGS Agents and Brokers certification cover BRCGS Supply Chain Assurance requirements?
Yes, it is one of the certifiable standards of BRCGS Supply Chain Assurance for non-manufacturing members of the supply chain.
