LOCATION CORPORATE AUDIT REPORT Report# CA-2016-03-0122-CAPA1-V2 Updated on Mar 28, 2016
XI FU PLASTICS PRODUCT CO., LTD. This Report Applies Solely for SCAN – Supplier Compliance Audit Network
Completed on Mar 12, 2016
Disclaimer: This Audit Report is prepared at the direction of and intended for the benefit and use of SCAN members only. None of the material contained in this Audit Report may be altered, transmitted, copied or distributed to any other party, without the prior express written permission of SCAN. The information contained within this Audit Report addresses third party facilities that are not affiliated with SCAN. The accuracy of the information contained in this Audit Reports is not guaranteed or warranted by SCAN. This Audit Reports should not in any way be construed as advice of any sort by SCAN. SCAN shall not be responsible or liable for the accuracy of this Audit Report. www.scanassociation.com Page 1 of 42
LOCATION INFORMATION
XI FU PLASTICS PRODUCT CO., LTD. BLDG NO8 NANSHAN 2ND IND PARK YANTIAN FENGGANG TOWN DONGGUAN CITY 86-769-87564799 DONGGUAN , GuangDong, China 523702 SCAN ID: CNM0C82869XI Point of Contact Name: Ms. Zhang Li Location Added By: SCAN1500518 Website: http://tomwang0713.b2b.hc360.com Point of Contact Email: cdj-china@163.com Order Date: 12/8/2016 Contact Name
Location:
Phone
Email langpingluo@163.com
XI FU PLASTICS PRODUCT CO., LTD.
Primary Location: Yes Critical Location: No Assigned Auditor: Bureau Veritas Schedule Date:
03/03/2016
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AUDIT SUMMARY SCAN - SCAN Security Audit Audit completed on March 12, 2016
93 % Compliance Score Compliance By Category
Business Partner Requirements
100
Container & Trailer Security
94
Conveyance Security
88
Information Technology Security
77
Personnel Security
100
Physical Access Controls
86
Physical Security
86
Procedural Security
100
Security Training & Threat Awareness
100 0
20
40
60
80
100
93 % (Mar-16)
Post CAPA scoring – CAPA completed on March 28, 2016
96 % Compliance Score Compliance By Category
Business Partner Requirements
100
Container & Trailer Security
94
Conveyance Security
97
Information Technology Security
77
Personnel Security
100
Physical Access Controls
95
Physical Security
91
Procedural Security
100
Security Training & Threat Awareness
100 0
20
40
60
80
100
96 % (Mar-16)
Disclaimer: This Audit Report is prepared at the direction of and intended for the benefit and use of SCAN members only. None of the material contained in this Audit Report may be altered, transmitted, copied or distributed to any other party, without the prior express written permission of SCAN. The information contained within this Audit Report addresses third party facilities that are not affiliated with SCAN. The accuracy of the information contained in this Audit Reports is not guaranteed or warranted by SCAN. This Audit Reports should not in any way be construed as advice of any sort by SCAN. SCAN shall not be responsible or liable for the accuracy of this Audit Report. www.scanassociation.com Page 3 of 42
BUSINESS PROFILE INFORMATION Profile Question
Response
Do you hold a Certification?
No
Does the facility participate in any government, local customs, or World Customs Organization (WCO) accredited facility security program?
No
Has the facility been reviewed or audited by this program?
No
Primary Industry of Operations
Plastic products, electronics
Number of access points? (i.e. gates, exterior doors)
2
Hours of Operation
5 days per week and 8 hours per day
Number of Employees
101 - 500
Number of Contract Employees
108
Number of Security Guards
4
Annual Revenue
5 - 10 Million
Product Type / Commodity
Plastic and electronic toys
Number of Buildings
2
Facility Size (Square Meters)
4380
Year Established
2014
Grounds Size (Square Meters)
1020
Number of Migrant Workers
0
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AUDIT RESPONSES Overall Compliance Score: 96 %
Audit Sent: 3/28/2016
Due Date: 3/31/2016
Business Partner Requirements
100% Question
1.
Do you contract any services, such as security, transportation or manufacturing labor? Actual Yes No Additional Comments: No comments were provided
2.
Must Are written, verifiable processes and procedures used in the selection of business partners including material suppliers, manufacturers, and logistics service providers? Actual Yes No Additional Comments: No comments were provided
3.
Must When entering into a contractual agreement with a business partner, are minimum supply chain security requirements provided? Actual Yes No Additional Comments: No comments were provided
4.
Must Is a contracted business partner, such as a transportation provider or a freight consolidator, required to conduct and provide an annual risk assessment of their operation? Actual Yes - annually Yes - minimally every 2 years One time No Additional Comments: No comments were provided
5.
Should Is a contracted logistics service provider given an outline of minimum security standards in their local language? Actual Yes Page 5 of 42
No Additional Comments: No comments were provided
Container & Trailer Security
94% Question
6.
Critical Are international shipments sealed with an ISO 17712 compliant high-security seal immediately after a container or trailer is loaded? Actual Yes No Seals used.JPG Additional Comments: No comments were provided
7.
Must Are written and verifiable procedures in place to ensure that security seals are controlled and are properly applied to a container or trailer by a designated facility representative? Actual Yes No Additional Comments: No comments were provided
8.
Critical Are security seals stored in a secured location? Actual Yes No Seal storage location.JPG Additional Comments: No comments were provided
9.
Must Does the facility have a designated employee with responsibility to maintain, distribute, and handle security seals? (This does not apply if security seal is provided and controlled by the logistics company or ocean carrier.) Actual Yes No Additional Comments: No comments were provided
10. Must Is the security seal number recorded on the bill of lading and a copy is retained by the facility? Page 6 of 42
Actual Yes No Additional Comments: No comments were provided
11.
Must Is there a written and verifiable security procedure in place covering an unscheduled stop, a compromised shipment, or an unattended shipment shared with the logistics provider and driver? Select all that apply. Actual Procedure is written Reporting requirement Container/trailer cannot be left unattended Nothing in place Additional Comments: No comments were provided
12. Must Is a written and verifiable procedure in place indicating how to recognize a suspected or compromised security seal, container or trailer structure tampering and how to report the issue to the freight forwarder and appropriate local law enforcement? Actual Yes No Additional Comments: No comments were provided
13. Must Is a written and verifiable procedure in place to require that security or shipping personnel verify the security seal number against the bill of lading when the container or trailer departs the facility? Actual Yes No Additional Comments: No comments were provided
14. Should Is a photograph taken of a loaded container or trailer with the security seal affixed? Select all that apply. Actual Photos taken Seal number in photos Trailer/container number in photos No Additional Comments: No comments were provided
15. Must Is a loaded and stored container or and trailer closed and secured with a security seal?
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Actual Yes No Additional Comments: No comments were provided
16. Must Is a written procedure in place to report unauthorized access to a container, a trailer or product storage areas within the facility including who to notify? Actual Yes No Additional Comments: No comments were provided
17. Must Is there a written procedure in place to inspect the security integrity of a container or trailer prior to loading? Actual Yes No Additional Comments: No comments were provided
18. Critical Prior to loading a trailer or container does the facility conduct a 7-point inspection using a documented checklist? Actual Yes No 7 point inspection check sheet.JPG Additional Comments: No comments were provided
19. Must Does the shipping area use equipment to conduct a 7-point container inspection? Select all that apply. Actual Laser distance measurer Pre-measured string Mirrors for undercarriage Hammer for tap test No Additional Comments: Hammer and visual inspection
20. Must Does the facility maintain training records indicating shipping employees are trained to properly perform a 7-point container/trailer inspection? Page 8 of 42
Actual Yes No Additional Comments: No comments were provided
Conveyance Security
97% Question
21. Critical Is driver information recorded and retained for all departing shipments? Actual Yes No driver log book.JPG Additional Comments: No comments were provided
22. Must Is a written procedure in place instructing drivers to take designated routes between the origin and the port? Actual Yes No Additional Comments: No comments were provided
23. Must Where possible, are transit routes from the facility to the port or next destination randomly changed? CAPA Sent: 3/15/2016
Due Date: 5/14/2016
CAPA: The facility may authorize alternate transit routes to the port or the intended delivery destination. Notify the driver of a route change. Within 30 days provide a date when the facility will have approved alternate routes. Actual Yes No
运输路线.pdf
Additional Comments: Get 2 spare routes
Actual Yes No Additional Comments: The transit routes from the facility to the port or next destination was not randomly changed
24. Must What container or trailer tracking technologies does the facility require is used by contracted Page 9 of 42
transportation company? Select all that apply. Actual GPS or other (if other, please explain) Procedure is written No requirements Additional Comments: No comments were provided
25. Must Is a written and verifiable security procedure in place with contracted less than container load (LCL) service providers? (NA implies that no LCL shipments are made by this facility on international shipments.) Actual Yes No Additional Comments: No comments were provided
26. Must Is there a procedure in place that requires an LCL container or trailer to be sealed after each stop with either a tamper evident seal or a padlock? Select all that apply. (Select NA if an LCL shipment is not made by this facility.) Actual Procedure requires sealing Temper evident seal Padlock with key controlled by driver Padlock with keys controlled by factories and terminal only No requirements Additional Comments: No comments were provided
27. Must If the facility makes LCL shipments are tamper evident seals validated prior to removal at each stop and do all seals accompany the load to the final destination ? (Select NA if LCL shipments are not made by this facility.) Actual Yes No requirements Additional Comments: No comments were provided
28. Must If the facility makes air shipments, is there a written and verifiable procedure in place outlining steps required to document shipment movement from the facility until delivery to the freight forwarder or airline? (Select NA if air shipments are not made by this facility.) N/A Additional Comments: Air shipment was not made by the factory.
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Physical Access Controls
95% Question
29. Critical Is a written procedure in place that outlines access control to the facility, property, and buildings, to include the issue, removal, and changing of access control devices and ID cards? Actual Yes No access control procedure.JPG Additional Comments: No comments were provided
30. Must Are access control procedures or devices used to ensure that only authorized employees have access the facility? Actual Yes No Additional Comments: No comments were provided
31. Critical Is a written and verifiable procedure in place to monitor and limit access to critical operational areas of the facility, such as warehouse picking, final packing or packaging, shipping and receiving, to only authorized employees? Actual Yes No limit access to critical operational areas.JPG Additional Comments: No comments were provided
32. Critical Is a written procedure in place to require a visitor to present photo identification upon arrival and their information is recorded into a visitor log? Select all that apply. Actual Procedure is written Visitor sign-in log in use Photo ID checked Nothing in place
visitor log.JPG
Additional Comments: No comments were provided
33. Should Is a written and verifiable procedure in place to inspect a visitor's bag or package before entering and Page 11 of 42
leaving the facility? Actual Yes No Additional Comments: Factory had process in place to inspect the visitor's bag; however, auditor's bag was not inspected before entering.
34. Must Is a visitor issued a numbered visitor badge which is displayed while at the facility? Actual Yes Badges issued, but not numbered No visitor badge.JPG Additional Comments: No comments were provided
35. Must Is a visitor escorted at all times while at the facility? Actual Yes No Additional Comments: No comments were provided
36. Must Is a written and verifiable procedure in place to inspect a suspicious package and mail for dangerous materials prior to distribution? Actual Yes No Additional Comments: No comments were provided
37. Must Is an employee with a photo ID badge required to display the badge at all times while at the facility? (Select NA if a photo ID badge is not issued or cannot be worn in a food pack house or food processing facility). CAPA Sent: 3/15/2016
Due Date: 5/14/2016
CAPA: Ensure that employees issued a photo ID badge display the badge anytime while at the facility. Within 30 days provide a date when the facility will implement this procedure. Actual Yes No
ĺŽ‚ç‰Œ.pdf
Additional Comments: ID badge confirm and display at the facility , checked each month as regular
Actual Page 12 of 42
Yes No
Employee did not wear badge.JPG Additional Comments: It was noted that 5 employees in the factory did not wear the employee's badges all the time
38. Must Is a written and verifiable procedure in place to identify, challenge, and remove an unauthorized person at the facility? Actual Yes No Additional Comments: No comments were provided
Personnel Security
100% Question
39. Must Is an employee hiring procedure documented and implemented? Select all that apply. Actual Policy is written Procedures for hiring Procedures for applications Employee documentation New employee screening Nothing in place Additional Comments: No comments were provided
40. Must Is a permanent and temporary job applicant required to submit a written application for employment and provide proof of their identity? Select all that apply. Actual Written application required Government issued ID required No requirement Additional Comments: No comments were provided
41. Must Is a written and verifiable procedure in place to validate information provided on an employment application, such as an address, previous employment history, education, personal or professional references, and a certification? Select all that apply. Actual Policy is written Page 13 of 42
Education check Reference check Previous employment check Nothing in place Additional Comments: No comments were provided
42. Must If allowed by local law, is a written procedure in place to perform a background check on an applicant and employee who works in sensitive area of the facility, such as personnel, shipping, computer systems, or contract employees? (Select NA if a background check is prohibited by law). Actual Policy is written Criminal background checks No Additional Comments: No comments were provided
43. Must Is a written and verifiable procedure in place to remove facility access, such as a facility issued ID badge or card and a computer access code from an employee who has resigned, is terminated, or takes an extended leave of absence? Actual Yes No Additional Comments: No comments were provided
Procedural Security
100% Question
44. Must Is a written and verifiable procedure in place that requires all information used in the clearing of merchandise/cargo is legible, complete, and accurate? Actual Yes No Additional Comments: No comments were provided
45. Must Is a written and verifiable procedure in place that restricts access for shipping and receiving documentation to only authorized employees? Actual Yes No Additional Comments: No comments were provided
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46. Should Is a written and verifiable procedure in place to communicate business information necessary for customs clearance within 24 hours of shipment departure from the facility? Actual Yes No Additional Comments: No comments were provided
47. Must Is an international shipment marked, counted, weighed (if required), and properly reported on the commercial invoice and bill of lading? Actual Yes No Additional Comments: No comments were provided
48. Critical Is a written and verifiable procedures in place to protect against the introduction of unauthorized and unmanifested materials during the container and trailer loading and shipping processes? Actual Yes No unauthorized and unmanifested materials prevention.JPG Additional Comments: No comments were provided
49. Must Is a written and verifiable procedure in place to resolve a carton count shortage, overage, or documentation issue found during container or trailer loading or after the shipment has departed the facility? Actual Yes No Additional Comments: No comments were provided
50. Critical Is a written and verifiable procedure in place to notify local law enforcement and the customer when an illegal shipping activity or abnormality is suspected or detected? Select all that apply. Actual Procedure is written Local law enforcement notified Customer notifed Nothing in place
illegal shipping activity or
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abnormality reporting.JPG Additional Comments: No comments were provided
Physical Security
91% Question
51. Must Is there a designated employee and visitor vehicle parking area separated from the shipping and receiving area? Select all that apply. Actual Shipping & Receiving fenced No POVs in Shipping & Receiving area Access Controlled No
Private car parking area.JPG
Additional Comments: No comments were provided
52. Must Is the area adjacent to the shipping and receiving areas enclosed or otherwise monitored? Select all that apply. Actual Shipping & Receiving area enclosed Shipping & Receiving area monitored No Additional Comments: No comments were provided
53. Must Does the shipping area have a fence, a wall, or other controls separating domestic, hazardous, high value, and international goods and materials? Actual Yes No Additional Comments: No comments were provided
54. Must Is a preventative maintenance procedure in place that requires a regular inspection of perimeter fencing or other barriers, buildings, and structures? Select all that apply. Actual Procedure is written Regular inspections Preventative maintenance Maintenance logs kept Nothing in place Additional Comments: No comments were provided Page 16 of 42
55. Must Are facility gates through which vehicles and/or employees enter and exit guarded or monitored and secured when not in use? Actual Yes No
entrance gate.docx
Additional Comments: No comments were provided
56. Must In the event of a power outage, does the facility have an alternate electical power system to ensure uninterrupted operation of electronic security systems? (Select NA if there is not an electronic security system in place at the facility.) Actual Yes No Additional Comments: There was Generator in the factory
57. Should Are facility buildings constructed of materials that will resist easy unlawful entry? (Select NA if the facility is a food packing house that does not have enclosed buildings and explain.) Actual Yes No Additional Comments: No comments were provided
58. Must Are facility windows, gates, fences, and doors secured with locking devices to deter unauthorized access? (Note: a designated fire exit must never be locked from the inside that prevents employees from evacuating the building in an emergency situation.) Actual Yes No Additional Comments: No comments were provided
59. Must Is a written and verifiable procedure in place to control the issue, removal, and changing of access devices such an ID badge, door and lock keys, access cards, and security alarm codes? Select all that apply. Actual Procedure is written Written checklist Included in Termination Document Nothing in place Additional Comments: No comments were provided
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60. Must Does the facility have sufficient lighting at entrances, exits, cargo handling and storage areas, along fence lines, and in parking areas to detect movement during periods of darkness? CAPA Sent: 3/15/2016
Due Date: 5/14/2016
CAPA: The facility must have sufficient lighting to illuminate areas of the property to include doors, gates and fences to detect employee or intruder movement during the hours of darkness. Within 30 days provide a date the facility will have necessary lighting installed. Actual ç Ż.pdf
Yes Interior lighting only Nothing in place Exterior lighting only Additional Comments: improvment for lighting issues ,already improved. see the documents .
Actual Yes Interior lighting only Nothing in place Exterior lighting only
Light of exterior was not sufficient.JPG
Additional Comments: The light of exterior was not sufficient
61. Should Does the facility have an anti-intrusion alarm that is connected to a monitoring system and/or transmitted to local law enforcement or a third party monitoring company? Actual Yes No Additional Comments: No anti-intrusion alarm which connected to a monitoring system and/or transmitted to local enforcement or third part monitoring company was installed in the factory.
63. Should Is a CCTV system used to monitor the facility and premises including entrances, exits, cargo storage, shipping, and other loading/unloading areas? Actual CCTV Other surveillance system (please explain) No CCTV or camera system
CCTV monitor.docx
Additional Comments: 11 CCTV cameras
64. Should Is a procedure in place to test and inspect the CCTV system? Select all that apply. Actual Procedure is written Regular testing Page 18 of 42
Regular inspections Preventative maintenance Maintenance logs kept Nothing in place Additional Comments: No comments were provided
65. Should If used, how many days are CCTV recordings kept? Actual 90 or more days Less than 30 days Recordings not retained 45 - 89 days 30 - 44 days
CCTV record.JPG
Additional Comments: The CCTV record was kept for about 55 days.
66. Describe the front of the factory building including any signage. Please attach a picture. Comments: the road before the factory had no specific name
Road without specific name.JPG
67. Describe the guard station and facility access gates. Please attach a picture. Comments: There were 2 access gates in the production building. There was one guard station in front of the access gates, and the guard could monitor the 2 access gates monitored by the CCTVs of the production building at the same time.
guard station and access gates.docx
68. Describe the buildings and structures for this location. Please attach a picture. Comments: The factory was consisted of one 4-storey production building, one 5-storey dormitory building.
Factory buildings.JPG
69. Describe the shipping and receiving areas. Please attach a picture. Comments: Area in front of the 4-storey production building.
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Shipping and receiving area.JPG
70. Describe the final packaging area. Please attach a picture. Comments: The 3rd floor of the 4-storey production building.
Final packaging workshop.JPG
Security Training & Threat Awareness
100%
Question 71. Should Is a security Threat Awareness training program established and maintained? Is training provided to all new employees and current employees as an annual refresher? Select all that apply. Actual Procedure is written Yes - to all employees, annually Yes - to all employees, on hire Nothing in place Additional Comments: No comments were provided
72. Must Does Threat Awareness training identify unique risks for sensitive or restricted areas of the facility such as final packing, shipping and receiving? Actual Yes No Additional Comments: No comments were provided
73. Must Does Threat Awareness training inform employees of procedures to report suspicious activity or a security incident? Actual Yes No Additional Comments: No comments were provided
74. Must Does Threat Awareness training provide additional instruction to shipping and receiving employees regarding access controls, container and trailer inspection, and security seal control procedures? Select all that apply.
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Actual Shipping & Receiving controls Container/trailer inspections Container/trailer sealing Seal controls Nothing in place Additional Comments: No comments were provided
75. Should Does the training program include criteria critical to security programs such as Threat Awareness, Contraband, Human Smuggling, and Terrorism? Select all that apply. Actual Threat awareness Contraband Human smuggling Terrorism Nothing in place Additional Comments: No comments were provided
76. Should Does the facility have a program to recognize an employee when reporting a security incident or recommending improvements? Actual Incentive/recognition program Nothing in place Additional Comments: No comments were provided
Information Technology Security
77% Question
77. Must Is a written information technology system security policy in place? Select all that apply. Actual Policy is written Assignment and removal of access controls Nothing in place Additional Comments: No comments were provided
78. Must Do automated systems at the facility have individually assigned user accounts that require a periodic change of password? Select all that apply. Actual Individually assigned accounts Periodic password changes Nothing in place
Page 21 of 42
Additional Comments: No comments were provided
79. Should Are written procedures and automated back-up capabilities in place to protect against the loss of data? Select all that apply. Actual Procedure is written Automated back-up Manual back-up Nothing in place Additional Comments: No comments were provided
80. Should Are automated systems in place to monitor for and prevent attempts of unauthorized access and tampering with systems and/or electronic data? Actual Yes No Additional Comments: No automated systems were in place to monitor for and prevent attempts of unauthorized access and tampering with systems and/or electronic data.
81. Should Are employees with computer systems access aware of and receive training about information technology system policies, procedures, and security standards; and is employee training documented and retained? Select all that apply. Actual Employees trained Training material sufficient Training documented and retained Nothing in place Additional Comments: No comments were provided
82. Should Is an employee who violates or abuses the information technology policies and procedures subject to disciplinary action? Actual Yes No Additional Comments: There was a procedure in place, however no case was noted before.
83. Did the Factory Representative and the Auditor sign the Opening Meeting Letter? Please attach the signed copy. Actual Yes No Page 22 of 42
Signed Opening Meeting Letter.JPG Additional Comments: No comments were provided
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ATTACHED DOCUMENTATION - PHOTOS Physical Access Controls - Question # 29
Physical Access Controls - Question # 31
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Physical Access Controls - Question # 32
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Physical Access Controls - Question # 34
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Physical Access Controls - Question # 37
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Procedural Security - Question # 48
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Procedural Security - Question # 50
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Physical Security - Question # 51
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Physical Security - Question # 60
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Physical Security - Question # 65
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Physical Security - Question # 66
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Physical Security - Question # 68
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Physical Security - Question # 69
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Physical Security - Question # 70
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Information Technology Security - Question # 83
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Container & Trailer Security - Question # 6
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Container & Trailer Security - Question # 8
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Container & Trailer Security - Question # 18
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Conveyance Security - Question # 21
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