IRR on Licensing of Meat Establishments with National and International Distribution

August 31, 2017

NMIS MEMORANDUM CIRCULAR NO. 08-2017-013

SECTION 1. Scope and General Condition. —

Pursuant to Department of Agriculture Administrative Circular No. 2 series of 2016 entitled "Mandatory Licensing of Meat Establishments with National and International Distribution," this circular shall apply to all Meat Establishments such as slaughterhouses, poultry dressing plants, meat cutting plants, meat distribution center or depot.

General Condition for the Meat Establishments

1.1 A one-time conditional "AA" classification and issuance of LTO valid for six (6) months shall be given to all new slaughterhouses, poultry dressing plants, meat cutting plants, meat distribution center or depot. No regular/unified LTO certificate shall be issued until it passes the GMP Validation audit.

1.2 Meat Establishments with conditional LTO that has been validated and passed, shall be issued with one (1) year LTO validity.

1.3 Meat Establishments that did not renew the License to Operate (LTO) for more than two (2) years shall be considered new applicant.

1.4 Only Meat Establishments duly licensed and classified as "AAA" shall be allowed to export.

1.5 If M.E. has a plan to cease the operation or planning to close down, a notarized affidavit stating the reason for the closure and the intention not to renew the License to Operate (LTO) shall be submitted to the concerned RTOC at least two months before the expiration date.

1.6 Valid LTO shall be displayed in a conspicuous place in the establishment or business office or premises.

1.7 The meat establishment must be in full operation on the scheduled date of Evaluation/validation. ATICcS

SECTION 2. Requirements For Issuance of License to Operate. —

2.1 For New Applicant:

a. Duly accomplished Application Form

b. Floor plan/schematic diagram of M.E. showing the traffic flow for personnel, products and condemned materials

c. Approved Sangguniang Resolution Authorizing the proponent to operate Slaughterhouse, Poultry Dressing Plant (where applicable)

d. Updated copy of Business Permit indicating "type of meat establishment"

e. BIR Tax Identification Number (TIN) of the plant

f. Updated copy of water analysis result

g. Environmental Compliance Certificate (ECC) or Certificate of Non-Coverage (CNC) issued by DENR-Environmental Management Bureau

h. Current DTI Certificate of Business Name or SEC Certificate of Incorporation (for private operators)

i. Updated and duly signed Hygiene and Sanitation Program (GMP, SSOP Manual) for "AA" and HACCP Manual for "AAA"

j. List of Equipment & Rated Capacity (for PDP only)

k. Updated pictures of the plant showing the major flow of operation, facilities, and equipment

2.2. For Renewal

a. Duly accomplished Application Form

b. Updated copy of Business Permit indicating "type of meat establishment"

c. Updated copy of water analysis result

d. Only pictures of areas and equipment recently renovated and installed shall be submitted

e. Updated AM/PM inspection fee payment certification (For SH and PDP)

SECTION 3. Mandatory Equipment. —

3.1 For Slaughterhouse

a) Electric stunner for hogs

b) Captive bolts for large animals

c) Digital weighing scales

d) Viscera Inspection table

e) Dehairing table/machine for hogs

f) Bleeding/sticking platform for Large

g) Detour Switch/retaining rail for suspected carcasses

h) Offal hanger (SUS 304)

i) Generator set

3.2 For Poultry Dressing Plants

a) Electric stunner

b) Digital weighing scales

c) Generator set

3.3 For Meat Distribution Center/Depot (Local Fresh/Frozen Meat)

a) Forklift truck/Jack lift/Pushcart

b) Battery charging area for forklift (where applicable)

c) Digital weighing scale

d) Storage racks & tower pallets

e) Generator set

SECTION 4. Mandatory Facilities for Slaughterhouse, Poultry Dressing Plants, Meat Cutting Plant, Meat Distribution Centers or Depot. —

4.1 WiFi access

4.2 CCTV camera

4.3 Blast freezer (where applicable)

4.4 Cold storage facility for Class "AAA"

4.5       Chiller or Freezer Room for Class "AA" (where applicable)

4.6 Inspection area/station properly identified and lighted

4.7 Well ventilated NMIS room strategically located. Provided with tables, chairs, and cabinet. Comfort room exclusive for NMIS use.

4.8 For Meat Distribution Center/Depot: TIADCc

a) Warehouse with refrigeration or air conditioning

b) Cold Storage facility for different types of meat with temperature recording device

c) Ante-room Facility

SECTION 5. Laboratory Requirements. —

5.1 For "AAA" Meat Establishments

a) Internal/in-house laboratory — capable to perform microbiological, parasitological (where applicable) and chemical test (where applicable)

b) Public/Private Laboratory facility to support the Meat Establishment GMP and HACCP program duly accredited by DOH and/or DOST

c) Company operated/owned laboratory facility servicing their own toll processors

5.2 For "AA" Meat Establishments

a) Public/Private Laboratory facility to support the Meat Establishment GMP/HACCP Program duly accredited by DOH and/or DOST

SECTION 6. Prescribed Standards of Construction and Sanitary Facilities for Meat Establishments. —

6.1 As stated at P.D. 856 (Code of Sanitation of the Philippines) and Codex Alimentarius Commission (CAC).

6.2 Philippine Agricultural Engineering Standards for Poultry and Slaughterhouse

SECTION 7. Waste Management Program. —

7.1 With written Waste Management Program

SECTION 8. Application Procedure for License to Operate (LTO). —

8.1 All original copies of documentary requirements as stated in the revised checklist relative to application for new, renewal and upgrading of license to operate (LTO) shall be presented to NMIS RTOCs office for verification of its authenticity.

8.2 It shall be scanned by ARS head and sent thru email at [email protected]: for scheduling together with the following:

a) endorsement letter

b) filled up application form

c) certificate of AM/PM fees payment (for renewal)

d) O.R. of payment

e) filled up ARS checklist with signatures of ARS head, SCO and RTD

SECTION 9. Evaluation/Validation Procedures. —

9.1 New Applicant

9.1.1 Evaluation of meat establishments shall be jointly conducted by ARD staff and ARS Head using the Meat Establishment Enhanced Evaluation Checklist (MEEEC) and shall be classified accordingly.

9.1.2 Meat Establishment with sufficient score for issuance of "AA" Conditional License to Operate (LTO) shall be recommended to the Office of the Executive Director.

9.1.3  Meat Establishments with insufficient score to pass for Conditional "AA" license to operate (LTO) shall be deemed pending until corrective actions on all non-conformances/findings observed by the evaluation team are instituted.

9.1.4 Meat Establishments that are on a conditional status of their LTO and have passed the validation, shall be given first one (1) year validity and regular unannounced validation shall be conducted.

9.2 Renewal of LTO

9.2.1 All Class "AA" and "AAA" meat establishments that will apply for renewal of License to Operate (LTO) shall be subjected to announce validation by available nearby auditors with reference to Audit Cycle Scheme policy.

9.2.2 ARS Head and assigned Plant Officers shall assist the validation team and shall act as Observers.

9.2.3 Schedule of validation for renewal shall be two (2) months before expiration as notified/scheduled by ARD Central Office copy furnished RTOCs.

9.3 Upgrading

9.3.1 Evaluation/Validation of meat establishments that applied for upgrading shall be jointly conducted by ARD staff and ARS Head using the Meat Establishment Enhanced Evaluation Checklist (MEEEC) and shall be classified accordingly. AIDSTE

9.3.2 In case improvements/renovation, provision of equipment and facilities are on-going, the RTOCs shall monitor until such are complied. Compliance shall be monitored by the ARS head and shall endorse the same to the Office of the Executive Director.

SECTION 10. Frequency of Validation. —

10.1 Announced validation — once a year and during renewal

10.2 Un-announced Surveillance/validation — minimum of six (6) visits within the three (3) years validity period and whenever there is untoward incidence reported by Plant Officers.

SECTION 11. Classification of Meat Establishments. —

The NMIS shall classify and issue license to operate (LTO) to meat establishments in accordance with the following:

a. Class "AAA" — those with fully automated facilities and operational procedures appropriate to slaughter food animals, or premises to cut and pack carcasses or primal parts, for distribution and sale for domestic and international meat trade. The NMIS shall certify the fitness for human consumption of meat for export and for distribution outside of the province or of the independent city. The application of Hazard Analysis and Critical Control Point (HACCP) program shall be required.

b. Class "AA" — those with semi-automated facilities and operational procedures sufficiently adequate to slaughter food animals, or premises to cut and pack carcasses or primal parts; for inter-provincial distribution and sale in any meat market nationwide. The application of Good Manufacturing Practices (GMP) program shall be required.

SECTION 12. Fees and Charges. —

12.1. Fees and charges for License to Operate (LTO) issued by NMIS shall be based on current legal issuances by the NMIS. AaCTcI

a. Initial/New Applicant

 Processing Fee = Php500.00

 Conditional "AA" LTO valid for six months = Php700.00

 LTO Certificate (1 year validity) — Php3,500.00

b. Renewal of LTO

 Processing Fee = Php500.00

 LTO Certificate (3 years validity)

 Class "AA" — Php10,500.00

 Class "AAA" — Php12,500.00

c. Other Fees

 Amendment fee = Php200.00

 Request for Original Copy of issued certificate in case of lost = Php200.00

SECTION 13. Validity of the License to Operate (LTO). —

13.1. Unless revoked, the LTO shall have the following validity period:

a. An initial/conditional License issued shall be valid for six months and succeeding renewal shall be valid for one (1) year only.

b. Meat Establishments that are accredited/licensed by NMIS for more than two years, shall be eligible for three (3) years validity period. Updating of documentary requirements shall be submitted to NMIS RTOCs.

SECTION 14. Grounds for Amendment of License to Operate (LTO). —

14.1 The following shall be the grounds for amendment and shall be effected unless with prior notification to NMIS:

a. changes on location, business name and owner

b. addition and/or reduction in product lines

c. inclusion or deletion of any activities/products

14.2 Requirements shall be the following:

a. Amendment letter addressed to NMIS Regional Technical Directors

b. Reasons for amendment such as change of business name, ownership, and

c. Change of locations

d. Amendment fee stated in fees and charges shall apply

SECTION 15. Incentives for Compliant Meat Establishments. —

15.1 For "AA" meat establishments with continuous compliance on structural and operational requirements within the three years validity of LTO (i.e., all minor non-conformances) during the conduct of validation, an Award of Recognition shall be granted to the M.E. management as well as to the Plant Officer assigned during the Annual NMIS Meat Safety Consciousness Week Celebration.

15.2 For "AAA" and "AA" meat establishments with continuous compliance on HACCP program within the three years validity of LTO (absence of non-conformances on seven HACCP principles), an Award of Recognition shall be granted to the M.E. management as well as to the Plant Officers assigned during the Annual NMIS Meat Safety Consciousness Week Celebration.

SECTION 16. Grounds for Revocation of License to Operate (LTO). —

The following shall be grounds for revocation of issued License to Operate (LTO) to Meat Establishments.

16.1 Non-payment of NMIS share on Ante and Post-mortem inspection fee for the last twelve (12) months.

16.2 For Meat Establishment with two (2) consecutive failed validation, a warning notice shall be issued and summoned for reiteration of the Affidavit of Undertakings at Office of the Executive Director of DA-NMIS.

16.3 Non-compliance to notarized Affidavit of Undertakings in the issued License to Operate Certificate. Regulations such as but not limited to:

— DA Administrative Order No. 18 s. 2008 "Rules & Regulations on Humane Handling in the Slaughter of Animals for Food"

— DA Administrative Order No. 15 s. 2006 "Prohibiting the Flooding of Food Animals in Animal Facilities and Abattoir"

— NMIS Memorandum Circular No. 03-2017-006 "Rules on Procedures in the Implementation & Enforcement of Food Animal Welfare Laws in NMIS Licensed to Operate Slaughterhouses and Poultry Dressing Plants"

— DA Administrative Order No. 9 s. 2003 "Mandatory Application of Hazard Analysis Critical Control Point (HACCP) Program in all NMIS Accredited "AAA" Meat Establishments"

— DA Administrative Order No. 21 s. 2004 "Mandatory Application of Good Manufacturing Practices (GMP) in all NMIS Accredited "AA" Meat Establishments"

16.4 Violation on other Existing Laws and Regulations pertaining to M.E. operations not limited to: EcTCAD

— Violation of other Regulatory requirements (i.e., DENR-EMB & LLDA, DILG and DOH)

SECTION 17. Grounds for Extension of Expired License to Operate. —

17.1 Letter request for extension shall be sent to RTOCs addressed to the Regional Technical Director which shall be supported by detailed evaluation report of the ARS Head and written commitment of Local Chief Executives (LCEs) and/or owner of M.E. to comply with the observed non-conformances.

17.2 The following shall be grounds for granting of one time extension of expired LTO, (maximum of three months)

a. Change of management that requires change of business name, and other documents stated in Section 2.1 of this Memorandum Circular.

b. Major renovation of meat establishments that will compromise the safety of the meat (i.e., installation of new equipment, extension of production area)

c. Force majeure (i.e., typhoon devastation)

SECTION 18. SanctionsandPenalty. —

18.1 For meat establishments that did not renew their License to Operate (LTO) in due time shall be automatically delisted and collateral action based on Memorandum Circular No. 05-2017-008 issued last 24 April 2017 shall be imposed.

18.2 Distribution of meat is within the locality only. RTDs shall send a letter to Local Chief Executives (LCEs) of adjacent provinces/cities/municipalities informing them that such Meat Establishment has no valid LTO therefore necessitates enforcement action in their respective jurisdictions.

18.3 The sanctions and penalty under Republic Act (RA) 9296 as amended by RA 10536 and other applicable laws shall apply.

SECTION 19. Releasing of License to Operate (LTO). —

19.1 All License to Operate (LTO) certificates processed by NMIS shall be sent thru Records Section to NMIS Regional Technical Operations Centers for pick-up of M.E. owner/representative or delivered by assigned Plant Officer.

19.2 Issued License to Operate (LTO) shall be signed by owner and or operator and a xerox copy of duly signed notarized Affidavit of Undertakings stated in the issued LTO shall be send to NMIS Regional Office and in turn forward a copy to Central Office thru ARD.

SECTION 20. Repealing Clause. —

All provisions of existing Memorandum Orders, Circulars, Implementing Rules and Regulations and other issuances that are inconsistent with this Circular are hereby modified, revoked or repealed accordingly.

Issued this August 31, 2017 at Quezon City.

(SGD.) DR. ERNESTO S. GONZALESExecutive Director

DA Administrative Circular No. 02-16January 21, 2016