Understanding HALAL Certification for Businesses Expanding Overseas

Note: In recent years, food manufacturers and processors in various countries have paid increasing attention to the significant business opportunities in the halal food market. It is estimated that global halal food trade has reached USD 150 billion per year. In addition to the 1.3 billion Muslims worldwide, many non-Muslims also regard HALAL-certified food as hygienic, safe, pure and healthy, and choose halal products.

Southeast Asia is one of the regions with the largest concentration of Muslim consumers. It imports meat, poultry, egg products and other halal foods from overseas throughout the year. An authoritative HALAL certificate can create more opportunities for exporting halal food to Muslim countries and regions. It is often regarded as an “entry ticket” to overseas Muslim markets and the first step towards expanding into the wider Islamic trade market.

This article shares the application process and compliance considerations for HALAL certification for the reference of relevant businesses.

HALAL certification is a distinctive category in the global certification field. In addition to cleanliness and environmental considerations, halal also signifies devotion and faith. The production, operation and trade of halal products must satisfy applicable standards of environmental protection, safety and hygiene, while also strictly complying with Muslim standards.

01 The Concept of HALAL Certification

1. The Origin of HALAL

HALAL is an Arabic word meaning “permitted” or “lawful,” and is translated into Chinese as “halal” or “qingzhen.” It can be extended to mean food, pharmaceuticals, cosmetics and additives that comply with the lifestyle and needs of Muslims. Generally speaking, except for matters prohibited by the Qur’an or by reliable and explicit hadith, all other matters are permitted for people to enjoy. Halal, in this context, concerns dietary requirements under Islamic law and does not relate to other aspects such as clothing, housing, transportation or thought. As online information has become more accessible and Muslims’ awareness of halal has increased, requirements have also extended to certain daily-use products and cosmetics. For example, cosmetics and items that come into direct contact with food may also need to satisfy halal requirements.

2. What Is HALAL Certification?

HALAL certification, also known as halal certification, is a form of religious food certification carried out by Muslim inspectors in accordance with Islamic teachings and HALAL dietary rules. Through reviewing raw materials, ingredients, auxiliary materials and production processes, the certification process ensures that certified products may be consumed or used by Muslims. This includes the production and processing of raw materials and the HALAL food made from those materials. A halal certificate is issued for products that pass the certification process. After a factory passes certification, the certification body issues a certificate confirming that the products manufactured by the factory comply with HALAL rules and are suitable for Muslim consumption.

3. The Importance of HALAL Certification for Businesses

• HALAL certification has become an effective means for food exporters to enter the Southeast Asian, Middle Eastern, European and American markets and obtain a larger market share. A Halal certificate has also become one of the most promising passes for businesses seeking to expand into high-end markets in Europe and the United States.
• It is expected that by 2025, Muslims will account for 30% of the world’s population. Halal food consumers will exceed 2 billion, while the total trade in the global halal food market will account for more than 20% of the global food market.
• The Middle East is the largest importing region for halal food. Muslims in these markets have relatively high levels of consumption and strong demand for halal products, providing a foundation for the halal market.

4. What Food-Processing Raw Materials Meet HALAL Requirements?

In principle, the following products may be regarded as HALAL:

1. Milk, including goat’s milk and camel’s milk;
2. Honey;
3. Fish;
4. Plant-based products, excluding alcohol-based products;
5. Fresh or frozen vegetables;
6. Fresh fruit and dried fruit;
7. Beans and nuts such as peanuts, cashews, hazelnuts and walnuts;
8. Cereals such as wheat, rice, rye and oats;
9. Animals such as cattle, sheep, deer, moose, chickens, ducks and game birds are also HALAL, but they may be consumed or used for other applications only if slaughtered in accordance with Islamic law.

02 HALAL Certification Bodies and Certification Requirements

1. What International HALAL Certification Bodies Are Available?

1. IFRC HALAL Certification

• The Islamic Food Research Centre has joined the World Halal Council (WHC) and is a member of the WHC Executive Committee. Membership in the WHC means that halal certificates issued by member certification bodies can be used globally. Accordingly, certificates issued by IFRC are well regarded in Southeast Asia, Africa and the Middle East.
• The certificate is valid for one to three years, and the certification cycle is one month.

2. HFCI-HALAL

The Halal Food Council International, also known as the Halal Food Council S.E.A., is a member of the WHC. It operates in strict accordance with halal standards developed by Malaysia, Singapore and Indonesia. Certificates issued by the organization are accepted in countries around the world, and are particularly well recognized in Europe and the United States, Africa, Southeast Asia and the Middle East.

3. IDCP HALAL Certification in the Philippines

• The Islamic Da’wah Council of the Philippines has joined the WHC and is also a member of the WHC Executive Committee. Certificates issued by the organization can be used globally. In addition to being well regarded in the Philippines, they are also recognized in Southeast Asia, Africa and the Middle East.
• The certificate is valid for two years, and the certification cycle starts at two months. As the cycle is relatively long, this certification is more suitable where it is specified by a purchaser or where the target market is Indonesia.

4. Malaysia’s JAKIM HALAL Certification

The Department of Islamic Development Malaysia (JAKIM) issues certificates that are accepted around the world. It is regarded as one of the most widely recognized and influential HALAL certification bodies globally.

5. Indonesia’s MUI HALAL Certification

• The Majelis Ulama Indonesia (MUI) issues certificates that are accepted around the world and is regarded as one of the most authoritative organizations in the field.
• The certificate is valid for four years, and the certification cycle starts at three months. As the cycle is relatively long, this certification is more suitable where it is specified by a purchaser or where the target market is Indonesia.

6. Singapore’s MUIS HALAL Certification

Majlis Ugama Islam Singapura (MUIS), also known as the Islamic Religious Council of Singapore, is one of the world’s best-known and most professional international HALAL certification bodies.

7. Australia’s HCAI HALAL Certification

The Halal Certification Authority International (HCAI) issues certificates that are accepted around the world and are particularly well recognized in Australia and Southeast Asia.

8. The United States’ AHF HALAL Certification

• The American Halal Foundation is a member of the World Halal Food Council (WHFC) and holds approvals from the Philippines, Indonesia, Malaysia, Singapore and Türkiye. HALAL-certified products issued by AHF are sold around the world and cover many fields, including food, cosmetics, chemicals and pharmaceuticals. AHF certificates are therefore accepted in countries around the world and are particularly well recognized in North America, Europe and the Middle East.
• The certificate is valid for one to three years, and the certification cycle is one month.

9. The United States’ IFANCA HALAL Certification

• The Islamic Food and Nutrition Council of America (IFANCA) certifies businesses involved in food raw materials, ingredients, food additives, pharmaceuticals, cosmetics and nutritional products. More than 2,200 companies worldwide have obtained IFANCA HALAL certificates. Certificates issued by IFANCA are valid in countries around the world and are particularly well recognized in North America and Europe.
• The certificate is valid for one to three years, and the certification cycle is one month.

10. The United States’ AHF HALAL Certification

The American Halal Foundation issues certificates that are accepted around the world and are particularly well recognized in North America and Europe.

11. HCS HALAL Certification

HCS is an authoritative HALAL certification body authorized by Malaysia, the United Arab Emirates, the Sultanate of Oman, Bahrain, Qatar, Kuwait, the Kingdom of Saudi Arabia, Thailand and other countries.

12. China’s HALAL Certification Bodies

In principle, Islamic associations at the national, provincial and municipal levels in China can provide halal supervision and certification. Their certificates are mainly recognized within China and in certain overseas regions. However, in the list published by Malaysia on April 14, 2017, only four Chinese halal certification bodies were recognized: the Islamic Association of China, Shandong Hala Certification Services Co., Ltd., Zhengzhou Yizhen Enterprise Management Consulting Co., Ltd., and Linxia Halal Food Certification Center in Gansu.

In particular, SHC, or the Shandong Hala certificate, is a mainland certification body designated by certain overseas clients to issue HALAL certificates for products exported to Southeast Asia, the Middle East and other markets. In addition to Malaysia, it has also obtained government authorization from the United Arab Emirates, Singapore and other countries. The certificate is valid for one year, and the certification cycle is two to three months.

In addition, under the Notice of the Islamic Association of China on Ceasing Halal Supervision and Certification Services (China Islamic Association Document [2017] No. 037), from February 17, 2017, Islamic associations in China ceased halal supervision and certification services for products other than livestock and poultry meat intended for export, for which they issue batch-based certificates. The Notice of the Ministry of Finance and the National Development and Reform Commission on Cleaning Up and Regulating Policies Concerning Certain Administrative and Institutional Fees provides that halal food certification fees charged by religious departments were discontinued from April 1, 2017.

2. How to Choose a HALAL Certification Body?

(1) First determine the sales region or the purchaser’s requirements:

1. If the products are sold only within China, it is sufficient to apply for halal certification from a local Islamic association or halal organization;
2. If the products are sold to Muslim countries, the requirements of the destination country for HALAL certification must be understood.

For example, the requirements for HALAL certificates when exporting to the Middle East are as follows:

• Meat products: Arab countries impose special requirements on the slaughter of animals, and product labels must carry specific approvals.
• Non-meat products: Middle Eastern countries do not designate a particular HALAL certificate. It is generally recommended to select a HALAL body that is a member of the WHC or WHFC, as such bodies tend to have greater authority.

The certification bodies and certification requirements for exports to Indonesia, Malaysia and other Southeast Asian countries are set out below:

(2) If the purchaser has not designated a particular body, the following two points may be considered when selecting the most suitable HALAL certification body:

1. An authoritative body, such as a HALAL body with WHC or WHFC membership;
2. A cost-effective body offering reasonable prices, a short certification cycle and high efficiency.

Overall, halal certification differs from other forms of certification because it is religious in nature. A factory may obtain several halal certifications because requirements vary according to the export destination and the purchaser.

03 How to Apply for HALAL Certification

1. Materials Required for HALAL Certification

• Product information
• Process information
• Materials information
• Other information

2. Application Process for HALAL Certification

Using MUI, which has the longest cycle, as an example, the halal certification process includes:

1. The business learns the basic principles of halal certification and completes the application form;
2. MUI’s headquarters in Indonesia reviews the application materials;
3. The business signs an agreement and prepays 60% of the total fee;
4. MUI experts in the relevant product field conduct an on-site inspection of the factory and collect samples for laboratory analysis. Two Indonesian Muslim inspectors and one Chinese Muslim interpreter will attend the factory inspection;
5. The inspectors send the samples to a laboratory for analysis of the relevant components;
6. The inspectors submit the audit report to the MUI Fatwa Committee, and the monthly fatwa meeting decides whether the business has passed halal certification;
7. MUI headquarters issues an electronic certificate;
8. MUI headquarters mails the hard-copy certificate.

3. Scope of the HALAL Certification Audit

Using MUI, which has the longest cycle, as an example, the audit covers the following:

1. Whether the ingredients stated in the application form are consistent with the ingredients in the warehouse;
2. The condition of the equipment, whether the equipment is clean, and whether the production process complies with HALAL rules;
3. If other ingredients are used to manufacture non-HALAL products, whether they are kept from contaminating HALAL products.

4. Certification Cycle and Fees

1. The period required for HALAL certification varies according to the product and the certification body. From the approval of the application form to the issuance of the certificate, the fastest process takes approximately 20 working days;
2. The certification fee must also be assessed according to the specific product and certification body. The application form is a key factor in determining the final price.

04 Key Considerations for HALAL Certification

1. The overall requirements imposed by different HALAL certification bodies for halal raw materials are based on the Qur’an and the Sunnah. HALAL certification bodies generally publish a list of recognized halal organizations, and halal certificates issued by organizations on the list are treated as equally recognized. For example, the latest list of recognized halal certification organizations from around the world can be found on Malaysia’s halal website, www.halal.gov.my.
2. The name of a product applying for HALAL certification must not violate Islamic law. For example, even if all ingredients comply with halal requirements, products named “Christmas pastry” or “pork flavor” cannot apply for halal certification if their names are contrary to Islamic law.
3. The most important aspect of HALAL certification is confirming that the raw materials are halal-compliant. Raw materials, auxiliary materials, processing aids and utensils must not contain prohibited substances. Equipment used to produce halal food must be dedicated to halal production, must not be used to produce products containing pork-derived ingredients, and must not be contaminated by prohibited substances.
4. A factory should establish a halal assurance system, which may be integrated with its existing quality management system and food safety management system.For example, the procurement procedure may specify requirements for purchasing halal raw materials, including requirements for obtaining supporting certificates and for transportation.
5. The relevant documents submitted, including the raw and auxiliary materials list, supplier information, certified product list and halal assurance system documents, must be uploaded to the HALAL certification body’s system. If a new raw material is to be added, prior approval from the certification body should be obtained or a relevant report should be submitted periodically, and the material may be used only after the certification body has approved it. If a new product is to be added, a document review and on-site review will be required, or the relevant materials may be submitted before the annual surveillance audit. Once the on-site audit is passed, the product details may be added to the HALAL certificate.

This article is general information and not legal advice. Specific matters require assessment by appropriately qualified professionals.