1. Key findings from the Areas Beyond National Jurisdiction (ABNJ) Tuna Traceability & CDS Project Gilles Hosch – FAO Tuna Market & Trade Specialist – ABNJ Seafood Traceability & CDS Expert – FIPM

2. Objective of this session Outline of current global tuna fisheries and IUU Existing CDS systems –definition & objective –current coverage –unilateral & multilateral CDS model –results / impact Tuna CDS – key findings –ABC graph / CDS framework design –principles –challenges for future systems –global CDS 2

3. Stocks, catch and status 23 tuna stocks of 7 major species: 6 ALB, 4 BET, 4 bluefin (BFT; SBT; PBT), 5 SKJ and 4 YFT stocks 2012 catch of major commercial tunas 4.6m mt – global harvest more or less level since 2003 3

4. Catch by oceanic basins 5 tuna RFMOs - IATTC, WCPFC, IOTC, ICCAT & CCSBT Distribution of catch between 3 major ocean basins 4

5. Key tuna IUU issues Violation of operational zones – incidence moderate to minor (VMS) Operating without license under FOC – minor incidence (TDS) Misreporting of otherwise legal operators – incidence (very) important 5 Operating in unregulated fisheries – (many in Asia) – important incidence –non-reporting –mis-reporting –unregistered –unlicensed –no management –no enforcement Large scale vesselsSmall(er) scale vessels

6. CDS definition and objective Draft definition from the FAO Expert Consultation on CDS; Rome; July 2015 A system that traces fish from the point of capture through unloading and throughout the supply chain. A CDS records and certifies information that identifies the origin of fish caught and ensures they were harvested in a manner consistent with relevant national, regional and international conservation and management measures. The objective of the CDS is to combat IUU fishing by limiting access of IUU fish and fishery products to markets. 6

7. CDS in a nutshell How does a CDS operate? A CDS is a global traceability system A competent authority certifies a batch of legal catch by issuing a catch certificate (CC) The CDS traces the movement of this certified batch from unloading, through processing and trade, into the end market Batches are traced by linking catch certificates to resulting trade certificate(s) CDS detects “non-originating” fish in supply chain 7

8. How does the CDS address IUU? “Wall-fencing” legal fishing IUU fishing is minimised by mounting a technical barrier for non-certified products to go to market Financial incentives to flout rules are diminished by reducing the market value of illegal catch Works well when fishing, port, and market States apply and enforce the scheme and the border Example: Non-certified Mediterranean BFT sells for 5€/kg (…±35€/kg is the legal market value) 8

9. Who has got them? What CDS systems exist today? Toothfish CDS: CCAMLR (2000) Tuna CDS: ICCAT (2009) & CCSBT (2010) Market CDS: EU (2010) BFT & SBT (under CDS) represent ±0.6% of global tuna catch Total world catch under RFMO CDS: <1% 9

10. Fishery A Fishery B Fishery C Fishery D Fishery E PS two CDS models 10 FISHERY: single stock across its full geographic range MARKET: single market State (MS) All product* through any and all port, processing and market State is covered and accounted for Only catches traded to the EU – from any marine fishery worldwide – are covered and accounted for PS MS * domestic landings are exempted Legend: PS: Port and/or Processing State MS: Market State ICCAT

11. CDS impact to date… Impact of multilateral & unilateral CDS systems? CCAMLR: reduction of IUU from >120% to ±6% – CDS regarded as critical element in mix of actions undertaken to achieving result Tuna CDS: gradual SBT recovery; strong BFT recovery (IUU from 200+% to <5%) – CDS was key to achieving impact (!) EU CDS: no evidence of impact on trade flows or IUU incidence (focus on yellow & red cards) CCAMLR, EU & Tuna CDS: price differentials 11

12. What FAO ABNJ does… Best Practice guidelines for development of Tuna CDS Technical review and editing underway Major challenges and options for the design of effective schemes are outlined and discussed

13. CDS traceability concept 13 fishing operation landingexportimportre-exportimport landing sales splits processing distribution consumption export INTERNAL & EXTERNAL TRACEABILITY SUPRA- NATIONAL TRACEABILITY COUNTRY ACOUNTRY BCOUNTRY C National Traceability Laws RFMO CDS Rules import sales splits processing distribution consumption re-export import sales splits processing distribution consumption (re-export) etc. reefer(s)

14. Timing of certificate issue 14 CC based on estimated weight CC based on verified weight / 1 per importer 1 to ∞∞ to ∞ TC based on processed weight to be shipped / 1 per consignment / 1 or more per CC CC validated by FS before unloading from FV CC re-validated by PS following (factory) grading & weighing Validated by PS when consignment is ready for exportation fishing operation (preparing for unloading) landingsexport COUNTRY A reefer(s) (and/or) Note: 1 CC per type of unloading operation ≥≥

15. CDS PRINCIPLES Objective: clearly defined – eliminate IUU fishing Traceability framework & standard: defined – from point of importation back to vessel and unloading event; with country black box Document (certificate) system defined – based on linked catch and trade certificate system Central electronic certificate registry (database) – paper-based systems wholly inadequate Timing of certificate issue regulated – supply chain fully covered (no blind segments) 15 1/3

16. CDS PRINCIPLES Effective system of estimated and verified weights provided for Supply chain mapping undertaken and “supply- chain sensitive” CDS design e-CDS: online input of all data by industry, online validation of all requests by designated competent authorities e-CDS: self-enforcing data integrity and mass balance verification routines; system alarms and logs of non-compliance events 16 2/3

17. CDS PRINCIPLES Competent authorities designated – as appropriate – for flag, port, processing and market State action within the system System of validation and re-validation by different competent authorities along supply chain (e.g. estimated/verified weights) RFMO Secretariat oversight, mass balance reconciliation, non-compliance log evaluation, detection of fraud, Compliance Committee action; formal RFMO sanction framework 17 3/3

18. Challenges - future CDS systems Existing tuna CDS systems (all Bluefin) : –single species fisheries –global range of species covered by CDS/RFMO –low volume; limited gears; rel. simple supply chains –simple end-product / end-market situation Future tuna CDS systems: –multi-species fisheries –indiv. RFMOs do not cover global range of any other species (incl. PBT) –high volume; multi-gear; very complex supply chains –complex end-product / end-market situation 18

19. Traceability & CDS harmonisation Potential tuna CDS systems to be yet developed: –ICCAT (any/all commercial tunas - but BFT) –IOTC (any/all commercial tunas) –WCPFC (any/all commercial tunas + PBT) –IATTC (any/all commercial tunas + PBT) Partial RFMO coverage (ALB, BET, YFT, SKJ, PBT) Global sourcing & mixed tuna end-products –opens the door for RFMO & species misreporting Unlikely inter-operability of multiplying CDS systems –rising burden of compliance for operators Limited coverage and enforcement potential in future RFMO-based tuna CDS systems 19

20. Traceability & CDS harmonisation For future tuna (and non-tuna) RFMO CDS –Classic approach (ICCAT, CCSBT & CCAMLR) of diminished effectiveness for remaining tuna species –To be effective, a “whole species over entire range” CDS approach is needed –Model for a (supra-RFMO) “global CDS” approach must be developed and discussed on the basis of an MEA-type arrangement; becomes a service provider to RFMOs that cover a species under their mandate only partially –Global CDS approach is also valid for other straddling and highly migratory species (e.g. Atlantic Cod; Pacific Salmon) 20

21. Email : - gilles. hosch @ fao. org - hosch @ pt. lu --- Cell : +352 621 752418 --- Skype : hosch 69