Livestock & Seed Program

1. Livestock & Seed Program Beef Export Verification Program Educational and Informational Meeting Marketing & Regulatory Programs

2. AMS LS Program Verification Programs • Review AMS Verification Programs • Review requirements of USDA Eligible Supplier Program • Review requirements of the USDA Beef Export Verification Program Marketing & Regulatory Programs

3. Livestock & Seed Program • Process Verified Program • USDA Supplier Eligibility Program • EU verification programs • National Organic Program • USDA Beef Export Verification Program Marketing & Regulatory Programs

4. Livestock & Seed Program Audit, Review, and Compliance Branch USDA Supplier Eligibility Program Marketing & Regulatory Programs

5. USDA Supplier Eligibility • The Audit, Review, and Compliance Branch has been assigned responsibility for reviewing and approving companies as eligible suppliers of meat and meat products for use in USDA, LS Commodity purchase programs. Marketing & Regulatory Programs

6. USDA Supplier Eligibility • ARC Branch personnel conduct regular audits of participating suppliers according to ARC 1010 Procedure, USDA Supplier Eligibility Program. Marketing & Regulatory Programs

7. USDA Supplier Eligibility • Companies who wish to supply products to USDA LS Commodity purchase programs must request eligibility under an approved segregation plan and must ensure all products intended for use in such programs meet the material requirements outlined in the applicable contractual documents. Marketing & Regulatory Programs

8. USDA Supplier Eligibility • Eligible suppliers are included in the weekly Internet publication, Official Listing of Eligible Suppliers for USDA Purchase Programs, and are listed according to the specific program that they are eligible to supply. Marketing & Regulatory Programs

9. USDA Supplier Eligibility • All meat and meat products destined for use in USDA, LS Commodity purchase programs must meet all of the material requirements, which are outlined in the applicable contractual documents. • Only meat and meat products that meet all of the material requirements may be labeled as “DOMESTIC ONLY PRODUCT”. Marketing & Regulatory Programs

10. USDA Supplier Eligibility • Companies requesting service will be audited three times per year upon approval of submitted documentation Marketing & Regulatory Programs

11. Livestock & Seed Program Audit, Review, and Compliance Branch Beef Export Verification Program Marketing & Regulatory Programs

12. Grading Certification Process Verification AMS - Voluntary Certified Label Claims Export Certification Combination Meat Inspection Labeling Requirements FSIS - Regulatory Marketing & Regulatory Programs

13. Grading Certification Process Verification AMS - Voluntary Certified Label Claims Export Certification Combination Meat Inspection Labeling Requirements FSIS - Regulatory Marketing & Regulatory Programs

14. ARC Procedures • ARC 1000 – QSVP Polices and Procedures • Cost, frequency, applications, operating procedures • ARC 1030 – Beef Export Verification Program • Specific requirements of the BEV program Marketing & Regulatory Programs

15. Eligible Supplier • Slaughter or processing facility which manufactures beef and/or beef products • Approved Eligible Supplier • Implementation of a BEV Program • Quality Documents • Successful audit Marketing & Regulatory Programs

16. Conforming Product • Only beef and beef products produced by eligible suppliers and identified as meeting the requirements of the BEV Program may have the FSIS Export certificate amended to read, “The shipment contains only meat and meat products that were derived from cattle slaughtered in the U.S.” Marketing & Regulatory Programs

17. Conforming Product • Any product (beef, or beef products) that meets, and can be verified as meeting, the requirements of the BEV Program • Such product may be labeled as meeting requirements of the BEV Program Marketing & Regulatory Programs

18. Processed Products • Processed Beef Products will have a 60-day transitional period following implementation of the BEV Program on September 1, 2003 • For suppliers to finish products that require extended manufacturing times, to source BEV compliant product and to clear stocks Marketing & Regulatory Programs

19. Processed Products Transition for Beef Processing plants November 1, 2003 • Processor not yet included in the BEV program must ensure to AMS that during the transition period only beef ingredients procured prior to September 1 will be used in products export to Japan Marketing & Regulatory Programs

20. Processed Products • FSIS will certify the following statement for these types of products “This is a ready-to-eat beef product that contains at least 2% cooked meat and has been subjected to heat or drying and does not contain products of edible rendering.” Marketing & Regulatory Programs

21. Processed Products • AMS will verify the Processor during the transition period • Must meet BEV requirements by November 1, 2003 Marketing & Regulatory Programs

22. Non-conforming Product • Product not from cattle slaughtered in the U.S. • Product that can not be verified as • Originating from an Eligible Supplier Marketing & Regulatory Programs

23. BEV Program Documentation • Documents and records prepared and maintained current that describe and record the company’s procedures for ensuring products received, processed, and identified conform to the BEV Program requirements Marketing & Regulatory Programs

24. BEV Program Documentation • Well defined Quality Manual • An accumulation of program documents • HACCP Plans • Labeling Procedures • Segregation Plan • Employee Training Program • Defined Responsibilities Marketing & Regulatory Programs

25. Segregation Plan • Description of the facility’s procedures for ensuring comformance to the requirements of the BEV Program • How is it Identified and Labeled • Handling of product through system • Identification of non-conforming product Marketing & Regulatory Programs

26. AMS Surveillance Audit • Review of eligible supplier’s facilities, procedures and records • To determine conformance with the approved program documentation • To verify ability to meet all of the requirements of the BEV Program • Conducted by USDA, AMS, LSP, ARC Marketing & Regulatory Programs

27. BEV Program Requirements • All beef and beef products identified as meeting the requirements of the BEV program must be derived from cattle slaughtered in the U.S. Marketing & Regulatory Programs

28. BEV Program Requirements • Only eligible suppliers may produce beef and beef products for the BEV Program • Eligible suppliers must be listed on the Official Listing of Eligible Suppliers for the Beef Export Verification Program Marketing & Regulatory Programs

29. BEV Program Requirements • Only beef and beef products that meet the requirements of the BEV program may be identified and labeled as such Marketing & Regulatory Programs

30. BEV Program Requirements • Documentation for finished product must identify each lot of conforming product by including the lot number, production date, production code, number of boxes, manufacturer, and the statement: “ Product Meets BEV Program Requirements” Marketing & Regulatory Programs

31. BEV Program Documentation Requirements • Only beef and beef products produced by eligible suppliers and identified as meeting the requirements of the BEV Program may have the FSIS Export certificate amended to read, “The shipment contains only meat and meat products that were derived from cattle slaughtered in the U.S.” Marketing & Regulatory Programs

32. BEV Program Documentation Requirements • Names and positions of persons with managerial responsibilities for operation of the BEV Program • Written procedures that describe the company’s procedures for ensuring product received, processed, and identified conform with BEV Program requirements Marketing & Regulatory Programs

33. BEV Program Documentation Requirements • Written segregation plan that describes the identification, segregation, and labeling of product • Complete examples of all forms, tags, labels, etc. used to track or demonstrate program conformance • Issue date or other method identifying the most current version of all program docs Marketing & Regulatory Programs

34. Supplier’s Responsibilities • Request initial assessment and submit the following: • Completed LS Form 313 if necessary • Cover letter requesting BEV audit • Program documentation used to ensure conformance to the BEV program, including a copy of all written segregation plans. Marketing & Regulatory Programs

35. Supplier’s Responsibilities • Ensure that beef and beef products conform • Properly identify all conforming and nonconforming product in a manner to ensure traceability • Maintain segregation of conforming and nonconforming product Marketing & Regulatory Programs

36. Supplier’s Responsibilities • Provide and maintain documentation for finished product • Ensure employees have been properly trained and have a complete understanding of all BEV Program requirements relative to their area of responsibility • Monitor information relating to customer satisfaction Marketing & Regulatory Programs

37. Supplier’s Responsibilities • Address all non-conformances within the timeframe outlined in the audit report • Comply with all provisions of this Procedure, and applicable Rules and Regulations • Maintain complete records for verification BEV program conformance Marketing & Regulatory Programs

38. Supplier’s Responsibilities • Provide access to all areas of an establishment or facility that is requesting an eligibility status • Notify the ARC Branch Washington, DC to cancel service prior to the next surveillance audit Marketing & Regulatory Programs

39. AMS’ Responsibilities • Review submitted LS 313, program documentation, and segregation plans • Assign a qualified USDA ARC Branch Auditor upon approval of submitted documentation • Conduct audits according to ARC 1000 Marketing & Regulatory Programs

40. AMS’ Responsibilities • Prepare a detailed audit report • Forward the audit report and final decision to the supplier • Ensure surveillance audits are performed as required • Maintain and publish the Official Listing of Eligible Suppliers Marketing & Regulatory Programs

41. AMS’ Responsibilities • Conducted according to ARC 1000 and this Procedure • All eligible suppliers will be audited three (3) times per year. • All eligible suppliers are subject to unannounced audits. Marketing & Regulatory Programs

42. BEV Approval Procedures • According to ARC 1000 • Approval – Once eligible the supplier will be posted on the Website • Company name and Est. Number • Remain on the Official Listing until a request is made to be removed or found to be noncompliant Marketing & Regulatory Programs

43. BEV Denying Approval • Failure to adequately address any requirement • Failure to demonstrate capability to meet any requirement • Finding of a hold point to stated procedures • Denying access to facilities, documentation, or records • Presenting false or misleading information Marketing & Regulatory Programs

44. BEV Suspending Approval • Failure to follow requirements, or approved program documentation • Implementing significant changes with out written notification to the ARC Branch • Deliberate misrepresentation of the eligibility of beef or beef products • Presenting false or misleading information to USDA Personnel Marketing & Regulatory Programs

45. BEV Suspending Approval • Confirmed finding of non-conforming beef or beef products that were utilized in the BEV program • Denying access to USDA during any audit • Failure to respond to non-conformances in the timeframe provided. Marketing & Regulatory Programs

46. Cancellation of Service • Eligible suppliers may cancel service at any time. • Notification in writing • Removed from Website • Suppliers who cancel service must reapply and be reassessed through an onsite audit prior to returning to the Official Listing Marketing & Regulatory Programs

47. AMS Program Verification Audits conducted according to ISO 19011:2002 Marketing & Regulatory Programs

48. ISO 19011:2002 • Guidelines for Quality and/or Environmental Management Systems Auditing Marketing & Regulatory Programs

49. ISO 19011:2002 • Audit criteria 3.2 – set of policies, procedures or requirements • Audit evidence 3.3 – records, statements of fact or other information, which are relevant to the audit criteria and verifiable. Audit evidence may be in many different forms Marketing & Regulatory Programs

50. ISO 19011:2002 • Audit findings 3.4 – results of the evaluation of the collected audit evidence against audit criteria • Audit conclusion 3.5 – outcome of an audit, provided by the audit team after consideration of the audit objectives and all audit findings. Marketing & Regulatory Programs