PELESENAN MPOB

GUIDELINES AND CHECKLIST ON QUALITY FOR EXPORT OF MALAYSIAN OIL PALM PRODUCTS

The purpose of the guidelines and checklists is for promoting quality assurance practices among the exporters or suppliers of Malaysian palm oil. It outlines the necessary actions and precautions to be taken in assuring that the quality of palm oil products meets the quality specifications specified in their contract of sales at the point of export. Quality assurance can be defined as 'controlling the production process to produce a product free of defects'. Through quality assurance , the process is constantly scrutinised, improved and perfected, thereby ensuring quality product. The focus of the program covers on :

MPOB's roles in quality assurance for various sectors of the oil palm industry ;
i.e. from planting materials up to the point of export are as follow:

Since the quality of oil palm products may deteriorates during handling, transportation and storage prior to export, MPOB Authorised Officers are stationed at the six(6) main Malaysian ports to conducts quality inspection
on these activities.

Palm oil proceeds through a series of parties namely producers or suppliers, traders and exporters before reaching the point of export. These parties may either be separate individuals or one individual who perform all the roles or part of it. Supplementing the export chain is the service sector namely bulk installation operators, independent surveyors and independent chemist. While installations provide bulking, handling and storage facilities at the export point; independent surveyor and chemist provide independent inspection and certification of product to determine the quantity, quality, loading superintendent and confirmation required in a commercial transaction.

The parties in the chain of export are legally bound to perform their contractual commitment to one another unequivocally and efficiently. It is MPOB's policy to ensure that the palm oil products for export meet the buyer's requirements and reasonable expectations. If the chain of obligations and responsibilities are broken or abused by the parties concerned, it will lead to losses, disputes, arbitration or litigation and ultimately causes damage to the smooth trading of oil palm products.

Responsibilities of the Producer / Supplier

Producers adopt proper harvesting practices so that only ripe palm fruits are harvested and delivered to the palm oil mills. The mills will inspect the quality of the raw materials (Fresh Fruit Bunch) using the " MPOB's Fresh Fruit Bunch Grading Manual" The fruits are processed with good care and efficiently so as not to damage the quality of oil during the process of extraction.
It is the responsibility of the producer/supplier to ensure :-

that the buyers' quality specifications are determined and confirmed before production begins.
that the refining process employed will achieve the desired contracted specifications of the buyer.
that the product has been laboratory tested and confirmed to conform to the contractual specifications for which it was intended.
that the product is properly stored in such a manner that the product quality is maintained before being transferred or transported to the bulking installations at the port for export.
that the movement, transport and handling of the product to the bulking installation at the port for export are carried out in a manner that will ensure that the product quality is maintained.

Responsibilities of the Traders / Exporters

From the mills, the palm oil products are channeled to the refiners, kernel crushers or oleochemical plants. Strict quality control programmes are implemented to ensure that the quality is maintained in their processing of the palm oil products.

It is the responsibility of the Trader/Exporter to ensure :-

that all contracts of sales or purchases are registered with MPOB by telex or telegram or electronically not later than 3.00 p.m. a day after the date of transaction; followed by sending a copy of the contract to be received by MPOB not later than 21 days from the date of contract.
That all contracts of exports of oleochemical are registered on monthly basis not later then 3.00 pm of the 7th day of the following month.
that all quality declaration of oil palm products exports including trans-shipment are declared not later then 2 days before the date of loading of oil palm products in MPOB Q1 (exports) or MPOB Q2 (tran-shipment).

that records of stock, sale and purchase of palm oil are properly maintained and kept for verification by MPOB Authorised Officers.
that a monthly statement of stock, sale and purchase of palm oil is sent to MPOB not later than the seventh day of the following month.
that the product supplied by the producer is delivered to the bulking installation at the port at least 24 hours before shipment takes place.
that the product has been laboratory tested and certified by the supplier to be conforming to the buyers' specifications.
that the palm oil is free from any contamination and the quality conforms to the standard that is acceptable to MPOB.
that the product has been laboratory tested and certified by an independent chemist to be conforming to the buyer specifications as specified in the sales contract at least 24 hours before shipment.
that the exporter declares in the Customs Declaration (CD 2) prescribed by MPOB that the quality of palm oil to be exported conforms to the quality specifications specified in the contract of sale with the buyer. The copy of the CD 2 / CD 3 need to be submitted to the nearest MPOB port offices not later then 7th days of exports or tran-shipment.
that a sample of the palm oil is send to MPOB when required, for quality determination and verification.

Responsibilities Of The Bulking Installation Operators

Palm oil products bulking installation is licensed exclusively for storing and facilitating
bulk handling for the purpose of export or import. It is the responsibility of the bulking
installation operator to ensure :-

that the palm oil products are transported to the installation by lorry tankers which
are securely sealed on arrival. That the pipelines used for the transfer of oil palm
products are clean, dry and free from any previous cargoes before it is used.
that the tank used for the storage of palm oil is dry, clean, and free from any previous
cargo before it was being used to store palm oil.
that the Storage and Handling Practice as recommended by MPOB are always
complied with.
that a sample is drawn upon completion of bulking and is sent to an independent
laboratory to determine its quality.
that the palm oil quality conforms to the quality specifications required by the
buyer before shipment.
that the palm oil installation is kept clean and all its storage facilities are in good
working condition at all times.
that the oil palm product stored is free from contamination and its quality meets
the standard acceptable to MPOB.
that a sample of the oil palm products stored is send to MPOB as and when
required, for quality determination and verification.
that a monthly statement of stock, bulking and dispatch of palm oil is send to
MPOB not later than the seventh day of the following month.
that the records of stock, bulking and dispatch of palm oil are properly maintained
and kept for verification of MPOB Palm Authorised Officers.

Responsibilities of Oil Palm Product Surveyors

The role of an independent oil palm product surveyor is to conduct an independent inspection and certification of loading and superintendent during export. The task of surveyor are to supervise the proper handling, conduct quantity measurement and draw representative samples for quality determination during export. It is the responsibility of the oil palm product surveyor to ensure:-

that the superintendent and survey of palm oil are carried out in compliance with the practices recommended in the MPOB Standard Surveying Procedures And Practices For Palm Oil And Its Derivatives.
that the survey is carried out in accordance to the standard imposed by the Malaysian Government and international bodies governing the surveying of palm oil products.
that the survey is conducted by a qualified palm oil surveyor who had passed the Malaysian Palm Oil Products Surveyor Examination organised by MPOB.
that all necessary precautions and actions have been taken to prevent any mishap by the parties involved in the loading of the palm oil from the bulking installation to the ship.
that the equipment and instruments used in surveying and sampling of palm oil are not made from copper, brass or copper alloy that is detrimental to the quality of palm oil.
that all allocated ship tanks are clean, dry and suitable in all respect for storage and carriage of palm oil.
that the allocated ship tanks are free from any toxic or leaded material in the form of solid, liquid or gas, odor or any material that is detrimental to the quality of palm oil.
that all samples drawn from the shore or ship tanks are kept in tightly sealed containers and are properly labelled before being send to the laboratory for analysis.
that a sample of the palm oil is sent to MPOB when required for quality determination and verification.
that any protest,rejection, objection or reservation on any consignment surveyed including the condition and suitability of ship's tank be reported to MPOB within 24 hours by telex or telephone and a copy of the letter of protest,rejection, objection or reservation is sent to MPOB not later than the seventh day from the date of survey.
that the integrity and professionalism expected of a surveyor is uphold at all times.
that the details of survey are recorded in a record book or documented in a manner that it can be easily verified by MPOB Inspector and are kept for two years from the date of survey.
that the record of survey pertaining to quality, quantity, products type and details of shore and ship tanks' condition for each consignment is properly kept for verification by MPOB Authorised Officers.
that the palm oil survey report issued to the client is a true and accurate account of the survey and is substantiated by records and documents.
that a copy of the Palm Oil Survey Report is sent to MPOB not later than the seventh day from the date of survey.
that a monthly statement MPOB (EL) UK4 formerly QC/SV/1 of all the palm oil product surveyed is send to MPOB not later than the seventh day of the following month.
that a report on the impending loading survey schedule be sent ot MPOB when required by notification.
that licensee must at all time have in its employment at least two personnel qualified in palm oil product survey and certified under the Malaysian Oil Palm Products Surveyor Examination.
that licensee intending to subcontract any surveying job to another MPOB licensed surveying company shall obtain an approval from the Director General of MPOB.
that licensee must maintain up-to-date daily records of survey in accordance to MPOB(EL) UK3 - 8 prescribed by MPOB, at the licensed premises.

Qualified surveyors who had passed the Malaysian Oil Palm Products Surveyor Examination are registered with MPOB as a measure of control to enhance professionalism. A registered oil palm oil product surveyor is required to comply to the following Surveyor's Professional Code of Ethics:-

A registered surveyor shall conduct himself in such a manner to uphold the dignity, standing and reputation of the profession.
A registered surveyor, in discharging his duty to his employer and to the profession shall have full regard to the public and national interest.
A registered surveyor shall discharge his duty to his employer with complete fidelity and shall not accept any payment for services rendered except from his employer or with his employer's permission.
A registered surveyor shall not injure or attempt to injure, whether indirectly the professional reputation, prospects or business of another registered surveyor or his company with which he is employed.
A registered surveyor shall all times ensure that he is fully equipped with the necessary recommended tools (equipment) when conducting his work and shall always maintain a high level of technical competency, and a high degree of professional integrity.
A registered surveyor shall not conduct any survey unless he is employed by a surveying company licensed by MPOB for such purpose.
A registered surveyor may delegate part of his job to any person who is not a registered surveyor but under his full supervision, and shall be fully responsible for such work carried out by the non- registered surveyor.
A registered surveyor, through his company shall not accept job appointment if such acceptance renders or would render it difficult for him to maintain his professional independence.
A registered surveyor shall not be influenced by the interest of his client in the conduct of the survey in so far as such interest is inconsistent with upholding the dignity, standing and reputation of the profession.
A registered surveyor shall not issue any press statement in the capacity of a registered surveyor on any matters that is likely to injure the dignity and reputation of the profession.
A registered surveyor shall not issue any press statement whether of facts or opinion pertaining to any dispute be tween parties in a pending arbitration action or suit of which his survey report is a relevant issue.
A registered surveyor shall assist another registered surveyor in the conduct of any joint survey between them and shall not withhold any findings or information crucial to the survey

Responsibilities of The Independent Chemist

The laboratory is required to conduct testing of samples of palm oil products impartially and professionally using up to date and mutually agreed methods of tests. It is the responsibility of the independent palm oil chemist to ensure :-

that the sample received for analysis is contained in new container that is properly labeled and securely sealed.
that the test methods applied in the analysis of palm oil samples are in accordance to the test method specified in the contract between the buyer and seller; otherwise to locally and internationally recognized test methods.
that the worksheet details of analysis are recorded in ink in record book that can be easily verified by MPOB Authorised Officers and are kept for 2 years from the date of analysis.
that the integrity and professionalism expected of a chemist is uphold at all times.
that the palm oil analysis report issued to the client is a true and accurate account of the analysis and is substantiated by records and documentary evidence.
that a copy of the analysis report issued to the client is send to MPOB not later than the seventh day after the date of analysis.
that a monthly statement MPOB (EL) LB4 of all the analysis carried out on palm oil product is send to MPOB not later than the seventh day of the following month.
that the daily records of testing of oil palm products must be maintained and updated daily in accordance to MPOB (EL) LB 3 - 9.