Page 45 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.74, # 2, 2017, pp. 43 - 50

The authors used the Ministry of Foreign Affairs of the Czech Republic and Salaam Gateway
database data as the source quantitative data describing the halal production potential.

3. Results

The observation and analysis of activities during the certification process

Administrative and audit activities are a necessary part of the certification process. The whole
agenda of obtaining and yearly prolonging the certification can be divided into two kinds of
activities. The first is regular and the second one is of a onetime nature.

The first group includes regular reporting on production volumes and certification prolongation
which is being repeated every year. The produced and exported halal products volume and the
related turnover serve as a base for fee determination. The fee is defined in percentage according
to the contract concluded between the company and the certification center. The sum is set up
according to the monthly turnover. This fee is the biggest cost related to the certification issuing
for the company. The company standard is that of the fee is an average of 5% of turnover from
exported halal products.

The prolongation process is accompanied by the certification request to the certification center
with a list of halal products of the particular company. The audit checks certification validity of
ingredients that the halal products consist of. It is therefore not only the final product but also
their ingredients that have the individual certifications of their approval to the Islamic rules.

There are also one-time activities of the halal products companies. These are mainly new
products certification that the company would like to add to its halal products list. New products
are being certified during the whole year. If the certification center approves its compliance with
Islamic rules, then they can be added to the halal products list. These newly added products
together with previously certified products are checked during the yearly audit.

The yearly audit has got a form of a personal visit of professionals from the center that the
company has got a contract with. The company should make everything ready for the inspection
and there should be the company halal specialist present. Certification center professionals check
the validity of all individual certification of products and ingredients during the audit. They also
check the production conditions. If the certification center professionals do not find any serious
problems they issue a new halal producer certification to the company.

There are numerous organizations that can issue the certificate in the world. Individual
certification centers differ in the demands for halal certificate issuing. Nevertheless, all of them
follow rules and norms of the Quran.

45