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The short version
- Non-certified contract processors and repackers require mandatory signed agreements and initial on-site audits prior to operation.
- Signed subcontractor agreements must grant certification bodies and scheme owners unrestricted physical access to facilities and records.
- Non-certified contract processing and repacking facilities must undergo mandatory annual on-site audits by the certification body.
- Non-conformities identified during subcontractor audits are issued directly against the certificate holder responsible for the contract.
Regulatory framework and subcontractor risk governance
Subcontracting seafood processing, repacking, or storage introduces significant supply chain risks if external facilities lack rigorous segregation controls. Quality managers, compliance leads, and internal auditors must understand that outsourcing physical handling does not outsource certification liability. The Marine Stewardship Council Chain of Custody framework establishes strict rules for managing subcontractors to ensure that certified seafood remains traceable and unadulterated throughout outsourced operations.
This regulatory framework affects primary processors, brand owners, and group certificate entities that utilise third-party facilities to transform or repack certified product. Failing to classify, contract, and audit subcontractors correctly exposes the certificate holder to major non-conformities during certification body audits. Understanding the operational distinction between low-risk storage facilities and high-risk contract processors ensures that compliance teams enforce mandatory controls before outsourced production begins.
Mandatory subcontractor agreements and essential contractual clauses
Under Clause 5.3.1 of the MSC Chain of Custody Standard: Default Version and Group Version, organisations utilising non-certified subcontractors to process, repack, or transform certified seafood must maintain complete control over outsourced operations. Clause 5.3.5 mandates that the certificate holder must execute a legally binding, signed agreement with every non-certified processing or repacking subcontractor prior to dispatching certified product to the site.
The signed agreement must incorporate specific operational controls to guarantee product integrity and audit access. First, the contract must bind the subcontractor to maintain clear physical segregation and unambiguous identification of certified product at all stages of receipt, storage, processing, and dispatch. Second, the agreement must explicitly grant the certification body, the scheme owner, and accreditation bodies unrestricted physical access to the subcontractor's premises, processing lines, and operational records. Third, the subcontractor must commit to maintaining detailed input and output records to support physical volume reconciliations.
| Subcontractor Category | Operational Activity Scope | On-Site Audit Requirement | Agreement Requirements |
|---|---|---|---|
| Contract Processor | Cutting, filleting, cooking, or portioning seafood | Mandatory initial and annual on-site audits | Signed agreement with full audit access clause |
| Contract Repacker | Opening outer packaging, repacking, or labelling | Mandatory initial and annual on-site audits | Signed agreement with full audit access clause |
| High-Risk Storage | Warehousing part-processed product in low CPI countries | On-site audit once per three-year cycle | Signed storage agreement or service contract |
| Low-Risk Storage | Warehousing final consumer-packaged sealed product | Document review; no routine on-site audit | Standard commercial storage service agreement |
Certification body audit obligations and finding management
Oversight of non-certified subcontractors is heavily regulated under Section 5.3 of the MSC Chain of Custody Certification Requirements v3.2. Prior to allowing a client to utilise a new non-certified contract processor or repacker, the certification body must perform an initial on-site audit of the subcontractor facility. Following initial approval, Clause 5.3.2 dictates that the certification body must conduct an on-site audit of each contract processing and repacking subcontractor at least annually.
During an on-site subcontractor audit, the certification body auditor conducts physical traceability tests, inspects processing line cleanup protocols, and reconciles input and output volumes. Under Clause 5.3.4 of the Certification Requirements, if the auditor identifies any non-conformity at the subcontractor facility, the non-conformity is formally issued directly against the certificate holder. The certificate holder bears ultimate legal and administrative responsibility for ensuring that the subcontractor implements corrective actions within prescribed timeframes, failing which the certificate holder faces certificate suspension.
What to do now
- Audit the master subcontractor register to ensure every contract processor and repacker has a signed subcontractor agreement meeting Clause 5.3.5.
- Verify that signed agreements contain explicit clauses granting certification bodies, MSCI, and accreditation bodies unrestricted physical facility and record access.
- Notify the certification body in writing prior to onboarding any new non-certified contract processor or repacker to schedule mandatory initial on-site audits.
- Establish robust batch reconciliation procedures with all contract processors to verify input and output yields following every production run.
- Conduct annual internal reviews of subcontractor performance, traceability records, and segregation logs as part of the management system review.
Reference documents
- MSC Chain of Custody Standard: Default Version v5.1
- MSC Chain of Custody Standard: Group Version v2.1
- MSC Chain of Custody Certification Requirements v3.2
- MSC General Certification Requirements v2.6
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