Track & trace launch in 2019 and 2020

Tobacco
Tobacco

Registration of stores and manufacturers in the track & trace system starts March 1, 2019

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March
Footwear
Footwear

Mandatory marking starts
July 1, 2019

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July
Medications
(7 nosologies)
Medications

Registration of pharmacies and medical institutions in the track & trace system starts July 1, 2019

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July
Photo cameras
and flashbulbs
Photo cameras
and flashbulbs

The experiment has been conducted since 16 May 2019

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Tyres
Tyres

The experiment has been conducted since 20 June 2019

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Light
industry
Light industry

Industry discussions on launching the experiment

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Perfumes
Perfumes

Industry discussions on launching the experiment

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December
Medications
Medications

The experiment has been underway since February 1, 2019

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January
Track & trace
for tobacco

Registration of stores and manufacturers in the Chestny ZNAK track & trace system was launched on March 1, 2019

Get registered in the system and see how ready you are for track & trace

More details
Register

Chestny ZNAK for businesses

Detailed information on current and proposed track & trace experiments and how to take part in them

News

FAQ

Why is the Chestny ZNAK track & trace digital system needed?

The problem of illegal product circulation is particularly acute for Russia: the share of illegal circulation in the manufacturing industry is about 35%, in the perfume market – 20%, and in the medicine market – up to 10%.

According to research by Kantar TNS analytical agency, the share of the illegal cigarette market in Russia increased to 7.7% in Q1 2018, as compared to 4.6% the previous year.

In December 2017, Russian President Vladimir Putin approved the resolution of the Government for the creation of a Unified national track & trace digital system by 2024 based at the Center for Research in Perspective Technologies (CRPT).

CRPT is a joint project of USM (Peter-service, 50%), Rostec State Corporation (Avtomatika Concern, 25%) and Elvis-Plus Group (25%).

The track & trace system being created by the Centre, known as Chestny ZNAK, makes it possible to effectively combat counterfeit and contraband goods and protects legal businesses and brands of bona fide manufacturers and consumers.

Thanks to the introduction of a track & trace digital system, legal businesses will receive protection from counterfeit goods, while their good names on the market will eliminate risks to reputation due to low-quality products being sold under their brands.

Track & trace digital system will allow businesses to increase their production capacity, improve logistic schemes, increase market share and ultimately increase revenue:

  • 1. By reducing the share of contraband and counterfeit goods, legal manufacturers will increase the share and volume of production by 5-50%, depending on the product group
  • 2. Businesses can switch their production to Industry 4.0, working based on the Just-in-Time principle. By receiving data on products online, they will be able to plan production to the optimal level, reduce stock surplus, and increase turnover of goods
  • 3. Connection to the e-document flow operator (if EDF was not previously used)
  • 4. Businesses will be able to save significantly on logistics: during the implementation of full traceability, the manufacturer or logistics company can receive the latest statistics on sales geography, performance and seasonality, which will make it possible to modify logistics systems and optimize shipments and inventory
  • 5. Businesses will adjust their accounting processes. These days, many entrepreneurs do not have their own data on balances and goods codes in warehouse and stores. Without the correct accounting, it is impossible to calculate profits and plan purchases; therefore, automation would help entrepreneurs to get their business in order
  • 6. Businesses will switch to the e-document flow. EDF will radically reduce the volume of paper documents that are still actively exchanged by Russian companies and cut business costs, as well as improve labor productivity
How does Chestny ZNAK work?

The manufacturer applies a digital code on the goods. The system records the entire journey of the goods along the logistics chain. They will be scanned twice at the store: before being placed on the shelf, and at the cash register. Thanks to the fiscal mass storage built into the online cash register and the permanent connection with the Chestny ZNAK system, illegal goods will not be sold.

Moreover, anyone that downloads the Chestny ZNAK mobile application on his/her smartphone can check the origin of the goods. It will be available on the App Store and Google Play in the near future.

The verification algorithm is rather simple: look for the digital Data Matrix code on the product packaging, similar to a QR code, and scan it in the application.

If the status of the check produces the result «Correct Code», you are the owner of an honest product. If the application produces an error, then you likely have a counterfeit product.

What do I do if I find a counterfeit product?

In the application, you will be able to send a notification about the counterfeit product. Depending on the type of violation, the information will be handed over to the competent control and supervision authorities, who will assess the results and perform checks on dishonest manufacturers.

Thousands of mobile checks will be carried out by the minute across Russia, and, thanks to the public control, the market will become truly transparent.

Who applies the digital code on the goods?

The Center for Research in Perspective Technologies creates a unique digital Data Matrix code and sends it to trusted manufacturers and importers. They apply the code to each package of their goods. It is possible to trace the entire route of the goods by means of the digital code – from the conveyor to the online cash register that removes it from circulation. The system records the transfer of goods from owner to owner at each stage of the logistics chain, which makes it impossible to introduce a counterfeit product.

Why is it impossible to falsify a code?

Unlike a simple paper mark, a digital code is difficult to falsify. Thanks to domestic crypto-technologies, the data on goods cannot be deleted from the system or adjusted. The marking code is comprised of two parts: the identification code, which determines the product's position in the system and in the unified catalogue of goods, and the verification code or crypto-tail generated by the CRPT.

When goods are removed from circulation, their legality is confirmed at the online cash register using fiscal storage. It synchronises the data of the track & trace system and the unified catalogue and prevents sellers from offering counterfeit goods.

The series of unique codes cannot be predicted, and the digital code itself is not repeated for 5 years after the release of the good's position.

Who is responsible for the track & trace systems?

Global experience has shown that governments usually use a private operator to launch track & trace projects. In China, this is the Alihealth Company owned by Alibaba; in Brazil, it is a Swiss company SICPA. By investing its own funds, this type of operator does not create an additional load on the state budget. In Russia, the Unified national track & trace digital system operates in the form of a public-private partnership. The Center for Research in Perspective Technologies is a private and joint system operator.

What goods are already being marked by CRPT?

CRPT is the joint operator of the track & trace experiment for tobacco and also localises production facilities to manufacture equipment for pharmaceutical products marking.

On 3 May 2018, the Government approved a list of 10 new goods subject to mandatory marking as of December 2019. The list includes perfume and eau de toilette, jersey/knit tops, long and short coats, trench coats and jackets, windbreakers, bed, table, bath and kitchen linen, photo cameras and flashbulbs, tyres and pneumatic tyre casings. In addition, the project for mandatory marking for tobacco products begins in March 2019 and the marking for footwear in July 2019. The Centre is ready to start marking the new groups of goods promptly, thanks to the scalability of the Chestny ZNAK track & trace system. To ensure a smooth transition to marking, the company will work with businesses to refine all solutions and technologies in the course of pilot projects.

Why was CRPT chosen as the system operator?

At the end of 2017, Russian President Vladimir Putin approved the November government resolution to create a Unified national track & trace digital system by 2024 through a joint operator – the Center for Research in Perspective Technologies.

CRPT is a joint project of USM, Rostec State Corporation, and A. Galitsky's Elvis-Plus Group.

This combination of shareholders makes it possible to unite industrial resources, experience in implementing large-scale transformation projects, expertise in the sphere of cryptology and in servicing hundreds of thousands of customers, and technical support. Moreover, the financial capabilities of the shareholders facilitate the localisation and production of equipment in amounts sufficient for the market.

Will prices go up because of the marking?

After the track & trace system is implemented, the prices for goods made by legal manufacturers will drop.

Consumers will not have to bear the costs of purchasing the track & trace equipment – this will fall to businesses. Moreover, the economic effect of implementing the track & trace system will cover the expenses. Thanks to the system, manufacturers will know the exact quantity of goods sold and how the logistics chain works. This will make it possible to optimise business processes and reduce costs.

After the marking is implemented, even in the most conservative outcome, the prices for goods could drop by 10% due to the reduced share of counterfeit goods on the market and other positive effects.

Is the track & trace system effective?

Over the course of one year, in which the track & trace experiment for medicals in Russia was conducted, violations worth half a billion rubles were discovered. Thanks to the track & trace experiment, it was also discovered that costly pharmaceuticals purchased by the state for hospitals as part of the «7 Nosologies» Federal programmes were being resold.

The mandatory marking of fur coats, launched in 2016, has also proven to be effective: within a year, the share of legal fur products on the market increased 10-fold.

Three hundred thousand fur coats were sold in 2015, while in 2017, the number of fur products increased to 2 million.

Examples of similar track & trace systems implemented in other countries have also shown positive results. In Brazil for example, the volume of counterfeit tobacco goods was reduced, 7 illegal plants were closed, and tax collection in the tobacco segment grew by 40% between 2008 and 2010.

About digital marking
  • What is IS MOPT?

    IS MOPT is the Track & trace Information system for marking and monitor the tobacco products circulation.

  • What is marking? Why is it being introduced in Russia?

    The problem of illegal product circulation is particularly acute for Russia: the share of illegal circulation in light manufacturing is about 35%, in the perfume market — 20%, and in the medicine market — up to 10%.

    According to research by Kantar TNS analytical agency, the share of the illegal cigarette market in Russia increased to 7.7% in Q1 2018, as compared to 4.6% the previous year.

    In December 2017, Russian President Vladimir Putin approved the resolution of the Government for the creation of the National track & trace digital system by 2024 based at the Center for Research in Perspective Technologies (CRPT).
    CRPT is a joint project of USM (Peterservice, 50%), Rostec State Corporation (Avtomatika Concern, 25%) and Elvis-Plus Group (25%).

    The Track & trace system being created by the Centre, known as Chestny ZNAK, makes it possible to effectively combat counterfeit and contraband goods and protects legal businesses and brands of bona fide manufacturers and consumers.
    Digital marking will allow businesses to increase their production capacity, improve logistic schemes, increase market share and ultimately increase revenue:

    • by reducing the share of contraband and counterfeit goods, legal manufacturers will increase the share and volume of production by 5–50%, depending on the product group;
    • businesses can switch their production to Industry 4.0, working based on the Just-in-Time principle. By receiving data on products online, they will be able to plan production to the optimal level, reduce stock surplus, and increase turnover of goods;
    • businesses will be able to save significantly on logistics: during the implementation of full traceability, the manufacturer or logistics company can receive the latest statistics on sales geography, performance and seasonality, which will make it possible to modify logistics systems and optimize shipments and inventory;
    • businesses will adjust their accounting processes. These days, many entrepreneurs do not have their own data on balances and goods codes in warehouse and stores. Without the correct accounting, it is impossible to calculate profits and plan purchases; therefore, automation would help entrepreneurs to get their business in order;
    • businesses will switch to the e-document flow. EDF will radically reduce the volume of paper documents that are still actively exchanged by Russian companies and cut business costs, as well as improve labor productivity.

  • Who made the decision to introduce the track & trace tobacco experiment in Russia, and when? Which state authorities will oversee this system?

    In accordance with Resolution No.1433 of the Government of the Russian Federation dated 27 November 2017, «On Conducting a Track & trace Experiment for Tobacco Products using Identification Tools and Monitoring the Circulation of Tobacco Products», an ongoing experiment was launched on 15 January 2018 within the Russian Federation, and is coordinated by the Ministry of Industry and Trade of Russia.

    As of March 2019, the digital marking will be mandatory for the tobacco industry. Amendments were made to Federal Law FZ-15 that approve the deadline of 1 March 2019 as the start of the mandatory marking and were signed by Russian President Vladimir Putin on 30 July 2018. It had previously been supposed that the marking would be implemented as early as 1 July 2018.

  • What are the project dates?

    On March 1, 2019, the registration of stores and manufacturers in the Chestny ZNAK National track & trace digital system became mandatory.

    To get registered in the track & trace system, please complete the application form.

    Starting July 1, 2019, the release of unmarked products will be ceased: 
    • when cigarettes are sold at market outlets, the DataMatrix code of each pack or carton will be scanned. During the sale of goods, the cash register transfers information to the FDO that the receipt contains marked products. 
    • the supply of marked cigarettes to the distributor directly from the manufacturer will be accompanied by an electronic universal transfer document (UTD) with product codes using e-document flow systems.

    Starting July 1, 2020, the circulation of unmarked products will be ceased:

    • the supply of marked cigarettes to retail points of sale and sub-distributors will be accompanied by universal transfer documents (UTD) with product codes using e-document flow systems. 

  • Starting from what date must companies and individual entrepreneurs concerned with retail sale of tobacco products:

    — send information to the monitoring system about retail sales of tobacco products;
    — send information to the monitoring system about receiving tobacco products from suppliers;
    — sell only marked tobacco products?
    Companies and individual entrepreneurs concerned with retail sale of tobacco products are to submit the following information to the Track & trace Information system for monitor:

    • starting from 1 July 2019, information on retail sale of marked tobacco products (cigarettes) produced in the Russian Federation or imported to the Russian Federation.
    • starting from 1 July 2020, information on receipt of tobacco products from suppliers and other operations with tobacco products, including decommissioning, as established by the legislation.
    Retail sale of unmarked tobacco products, including cigarettes produced in the Russian Federation or imported to the Russian Federation after 1 July 2019, is allowed until 1 July 2020.
    Starting from 1 July 2020, only marked tobacco products are admitted for sale.

  • How can retail vendors in remote areas submit information to the track & trace system?

    Entrepreneurs who use cash registers without transferring data to an FDO will need to enter the data on the codes of the sold packs into the personal account in the monitoring system once every three days.

  • What is the pilot project, and why is it necessary?

    Before the transition to the mandatory marking, pilot projects are conducted for each group of goods. They are necessary for representatives of the industry to be able to prepare for working with marked products in a calm manner, together with the project’s operator. This includes adapting equipment for printing codes, upgrading cash register software, etc.

    These pilot projects must commence at least a year before the mandatory marking begins, allowing the relevant industry to prepare for implementation and minimize costs.

  • Will any payment be collected from participants of the pilot project to generate the codes? What is IS MOPT?

    At the pilot project stage, all participants will gain access to the system, including the generation of digital marking codes and traceability of their circulation, free of charge.

  • Who participates in the pilot project; who can join and how?

    The experiment participants are tobacco companies in Russia, which manufacture about 95% of all tobacco products in the country, (Japan Tobacco International, Philip Morris International, British American Tobacco, Imperial Tobacco, Donskoy Tabak, Korea Tomorrow & Global Corporation, Union Tobacco Factory), the distributors through which over 88% of tobacco products are sold (Megapolis Trading Company, SNS Group), and retail organisations (X5 Retail Group, Metro C&C, Lenta, Magnit, Dixy, etc).

    To become a participant of the pilot project, submit an application at https://честныйзнак.рф/

  • How will operations be affected for each market player after they switch to working with marked tobacco packs?

    Changes for market players will be minimal.

    Manufacturers need to adjust the process of applying a Data Matrix digital code on packs and a linear code on cartons. The digital code applied to each product item will be scanned by members of the sales chain. Information on their movements will be transferred to the Chestny ZNAK Track & trace system.

    Distributors will deliver the data to the track & trace system in electronic format via e-document flow operators, by using a Universal Transfer Document (UTD) comprising a waybill and an invoice. This document has been developed by the Federal Tax Service of Russia and is recommended for use. Those who are not yet using the EDF system must begin to do so.

    When the goods are sold, after arriving at the retail sales points, information on the sale must be submitted to the Chestny ZNAK track & trace system. For this purpose, the code on the pack needs to be scanned at the cash register, and it will be automatically transmitted to Chestny ZNAK through the fiscal data operator to whom the cash till is connected. Since the code contains the product GTIN, it is enough to just scan the Data Matrix itself. As the system already contains data on the maximum retail price, the cashier would not need to input this information at the point of sale.

    As of 1 July 2019, all points of sale will be equipped with online cash register in accordance with the requirements of Federal Law 54-FZ, and it will not be necessary to install additional software and hardware such as the Unified State Automated Information System. Costs on the adaptation of the marking processes will be minimal for retailers.

  • Necessary resources and equipment for implementation of the track & trace system for tobacco products:

    To utilize the system, the following technical equipment is required:

    For manufacturers:

    • equipment and software for serialization and aggregation (unless previously purchased);
    • recorders of the emission of marking codes (provided to operators of the project by the Center for Research in Perspective Technologies free of charge);
    • connection to the e-document flow operator (if EDF was not previously used).

    For distributors and wholesalers:

    • connection to an e-document flow operator (EDF) and a digital signature (unless issued earlier).

    For a retail point of sale:

    • a 2D scanner (unless purchased before) and software update for the already installed online cash register.
    The necessary costs to implement marking and traceability for different groups of market participants are non-recurrent and fixed:

    For manufacturers:

    • if the necessary equipment and software are not available, manufacturers will have to invest a lump sum of 6 to 15 million rubles in order to purchase the production line and adapt it depending on the selected ERP system
    • the emission recorder is provided by CRPT free of charge
    • for bulk sales, it is necessary to use EDF to send source documents the average market tariff for processing one document in EDF is RUB 5.4. Average annual expenses on EDF services will be about RUB 21 mln for major manufacturers and RUB 0.7 mln for minor ones

    For distributors and wholesalers:

    • depending on the scale of the distributor’s or wholesaler’s business, the annual EDF expenses may vary (the approximate estimate, depending on the average market tariff for processing one document in EDF is RUB 5.4):
    • the EDF expenses for wholesalers with a turnover of 50 mln packs per year will be about RUB 270,000 per year
    • the EDF expenses for distributors with a turnover of 9 bln packs per year will be about RUB 49 mln per year
    • the EDF expenses for wholesalers with a turnover of 3 bln packs per year will be about RUB 15 mln per year
    • the EDF expenses for wholesalers with a turnover of 1 bln packs per year will be about RUB 5 mln per year
    • the incoming traffic of electronic documents is not charged

    For retail points of sale:

    • if the seller does not have a 2D scanner, a lump-sum investment of RUB 4,000 will be needed to purchase one.
    • for small-scale retailers, it may be necessary to install the updated cash register software to work with the marked products. Cash register software support — RUB 7,500/year. This information can be specified at service centers of cash register equipment vendors.

    It is worth mentioning that the costs spent on EDF are recovered as a result of reduced turnover of paper documents and, consequently, savings on printing, sending and storing paper documents. The average cost of a paper document is RUB 20, which is 4 times higher than the cost of an electronic document.

  • I am a software developer, and I have a proposal for the experiment operator. Whom should I contact?

    We invite solution developers and integrators to participate in the project and wish to make our system as open, convenient and useful for the market as possible. Send your proposals to motp@crpt.ru

  • Hotline for contacting market players with questions about the project.


    +7 (499) 350-8559, +7 (499) 350-8596
    E-mail: motp@crpt.ru

About the experiment
  • Who made the decision to introduce the track & trace for footwear in Russia, and when? Which state authorities will oversee this system?

    In accordance with Resolution No. 792-r of the Government dated 28 April 2018, digital marking will become mandatory for the footwear industry as of 1 July 2019.
    In accordance with the Resolution No. 620 of the Government of the Russian Federation dated 30 May 2018, the pilot project for footwear marking was launched on 1 June 2018. It will last until 30 June 2019. The operator of the track & trace system has appointed a subsidiary of the Center for Research in Perspective Technologies, CRPT Operator, which was created to implement the Unified national track & trace digital system known as Chestny ZNAK.

  • How can I take part in the pilot project?

    To take part in the experiment, the following is necessary:

    • submit an application on the Chestny ZNAK website at https://chestnyznak.ru/business/projects/footwear/#terms-participation;
    • receive an enhanced, encrypted and certified e-signature at accredited certification centres;
    • have a hardware-software complex connected to communication channels, that provides automated interaction with the Track & trace IS operator to obtain marking codes;
    • have a computing system able to create and certify electronic documents with an encrypted e-signature which is required for interacting with the Track & trace IS operator (requesting identification tools, information about their use, notifications) and for working within the Personal Account.

  • How will footwear be marked?

    To mark footwear, identification tools with marking codes will be used to apply a two-dimensional digital Data Matrix code and an alpha-numerical sequence (31 marking code symbols: first, second and third groups) to the consumer packaging, the product tag, or the product itself.

    The composition of the marking code comprises:

    1) global trade item number (GTIN), 14 digital symbols;

    2) individual serial number of the goods, which is generated by the Track & trace IS operator or the economic agent, 13 symbols of the digital or alpha-numeric sequence (Latin alphabet);

    3) Foreign Economic Activity Commodity Classification of the EEU, 4 first symbols of the 10-digit code of the Foreign Economic Activity Commodity Classification of the EEU;

    4) verification key, provided by the Track & trace IS operator as a part of the verification code, 4 symbols;

    5) e-signature, provided by the system operator as a part of the verification code, 88 symbols (numbers, lower and upper-case letters of the Latin alphabet, as well as special symbols).

    This method of footwear marking makes it possible to store and use the marking code as a two-dimensional, DataMatrix digital code in the internal systems of economic agents, accompanying documents, etc., without the risk of copying or theft.
    The identification tools with marking codes are generated centrally within the Chestny ZNAK unified track & trace system in the form of a two-dimensional, digital DataMatrix code.

  • What are the technical requirements for economic agents with regard to track & trace for footwear?

    After economic agents become participants in the experiment, the system operator will provide them with a hardware-software package, including an order management system (OMS) and a marking code issuing device, that ensure automated interaction with the system operator for ordering and receiving marking codes to form identification means. The system operator shall provide the hardware-software package at its own expense and carry out set-up and adaptation of the system’s operation free of charge.
    Economic agents do not need to replace any existing or additional equipment, including cash registers, scanners, or printers, for the processes related to circulation of the goods subject to mandatory digital marking.

  • What costs does an economic agent incur in the process of implementing the track & trace system?

    During the voluntary experiment, the traceability service is offered free of charge. Later on, the cost of the operator’s services for generating a marking code and subsequently tracing the goods will be determined by the Government of the Russian Federation. At present, the cost of the operator’s service is evaluated at 50 kopecks per unit of goods.

  • Is it being possible to set aside a certain amount of codes?

    Pre-booking codes is not required since an economic agent can order any number of codes in advance and apply them at any time (the period of time from ordering a code to printing a label and applying it to the product is unlimited and not regulated).

  • How long does it take to receive digital marking codes on request?

    The track & trace system processes dozens of thousands of requests simultaneously:

    • requests of up to 100,000 codes take a tenth of a second, regardless of the total number of requests;
    • for larger volume, such as 1 million codes from one participant during peak periods, maximum waiting time can reach up to 15 minutes and depends on the receiver’s internet speed. In case of an unstable Internet connection, it is recommended to divide the entire volume of requests, for example, into batches of 100,000 codes each to obtain the required codes as fast as possible.

  • What information is needed to order a code?

    To order a code, you need to indicate the GTIN (you can get this from GS1 by describing the product’s properties: manufacturer/importer, footwear type, product name on the label, upper materials, sole, lining, size, colour, etc.), serial number (if generated by the economic agent), Foreign Economic Activity Commodity Classification codes, methods of delivery of the generated code. You can find more about the information to be submitted to the Track & trace IS by economic agents in order to receive a marking code, as well as during the circulation of goods, in the guidelines for the experiment on the Chestny ZNAK website.

  • Who issues the GTIN?

    The GTIN is issued by GS1. CRPT is considering the possibility of setting up business processes for participants in such a way that goods are described only once, and all market players and importers would use a single GTIN for the same product.

  • At what point is a product considered to be introduced into and removed from circulation?

    Introduction of goods into circulation:
    For Russian manufacturers, a product is introduced into circulation by submitting data to the Track & trace Information system (IS MP) after manufacturing and marking and before the commencement of its circulation (product circulation — its delivery to the territory of the Russian Federation, its storage, transportation, receipt and handover, including their purchase and disposal (sale) within the territory of the Russian Federation).
    For importers, a product is introduced into circulation by submitting the data to the Track & trace Information system (IS MP) before the marked goods undergo customs procedures; after customs procedures are completed and a permit is obtained to bring the marked goods into the territory of the Russian Federation, the product is considered to be introduced into circulation.
    Removal of goods from circulation:
    • selling the goods to the final consumer at a store through the online cash register, generating a receipt for tax purposes with a marking code, transferring data on the removal of goods from circulation to the Track & trace Information system (IS MP);
    • purchasing goods for purposes other than subsequent realisation (sale) (e. g. sale of special-purpose footwear). Goods are removed from circulation at the moment in which they are sold to a legal entity and individual entrepreneur for purposes other than subsequent sale. However, if the buyer wishes to sell the goods to another legal entity or individual entrepreneur, they must mark the goods and introduce them into circulation before the sale. Otherwise, such realisation (sale) would be considered as the illegal turnover of goods;
    • in case of export — the goods are removed from circulation after they cross the border of the Russian Federation, having passed through customs procedures.

  • When and how are importers to mark their goods?

    Importing companies are responsible for digital marking of goods until they are placed under customs procedures. The goods delivered for actual customs control clearance shall be delivered with identification tools and marking codes in the form of a Data Matrix bar code. Goods outside the Russian Federation can be marked at the production location or at any point of sorting or packaging before placing the goods under customs procedures.

  • What is the Labelling and Marking Centre (LMC)?

    LMC is an organization authorised by the operator of the Unified national track & trace digital system to produce labels with pre-applied marking codes based on requests from manufacturers and/or importers of goods. Labels can be simple or protected, with copy prevention elements.
    The principal goal of LMC is to provide manufacturers and importers with a simple method of marking by applying labels manually or using semi-automatic methods to goods produced in small series.
    LMCs for marking imported goods will be available outside of the Russian Federation and allow foreign manufacturers to order a label with a digital code if they do not have the necessary printing equipment installed.
    It is necessary to mention that goods labelling and marking centres are not opened by the Centre for the Development of Perspective Technologies. It is a free market, not regulated by an operator.
    Advantages of using LMC services:
    For Russian economic agents:
    • there is no need to conduct software integration and validation with Chestny ZNAK system;
    • the marking process is simple, but requires mandatory validation of the marking code after its application;
    • no need to acquire equipment for generation of marking codes with cryptographic protection;
    • receiving a finished product label for marking or remarking goods that are produced or subject to remarking within the territory of the Russian Federation.
    For importers:
    • no need to acquire equipment for generation of marking codes with cryptographic protection;
    • no need to change the supplier of the finished product label;
    • the receipt of a finished product label is an existing business process.

  • Do foreign online stores have to mark their goods for Russian customers?

    If goods are purchased online from a foreign store for personal use, they do not have to be marked and can be delivered to a private person. If the person who purchased the goods for personal use plans to resell/transfer the goods for the purpose of sale to a legal entity, the goods must be given a marking code and introduced into circulation within the territory of the Russian Federation.

  • What is to be done with goods returned to the store by the buyer?

    If the buyer has returned goods with an undamaged marking code, then the goods are introduced into circulation again through the Personal Account in the Track & trace system (IS MP) with the old marking code.

    If the buyer has returned goods with a damaged marking code, the seller must assign a new code to the goods.

  • Do the exhibition and experimental samples have to be marked?

    No, these groups of goods are not in circulation and are not subject to marking.

  • What browser should I use to work in the track & trace system for footwear (IS MP)?

    Any browser that supports JavaScript can be used to work with the Product Track & trace Information System (IS MP), including Internet Explorer 10, Safari 10, Chrome 66, Mozilla Firefox 59 and Opera 52. Or their newer versions.

  • I do not have an enhanced, encrypted and certified e-signature. How do I register in the footwear marking system (IS MP)?

    If you do not have an enhanced, encrypted and certified e-signature, you will need to contact one of the certification centres accredited with the Ministry of Digital Development, Communications and Mass Media. After receiving and installing the signature, you may register in the track & trace system. The list of certification centres accredited by the Ministry of Digital Development, Communications and Mass Media of Russia is available on the Ministry’s website at: http://minsvyaz.ru/ru/activity/govservices/. Telephone number of the inquiry service of the Ministry of Communications and Mass Media: +7 495 771-80-00, 8 800 222-15-01.

  • Where can I download a CryptoPro CSP?

    The CryptoPro CSP distribution kit can be downloaded at: https://www.cryptopro.ru/downloads/howto?destination=node%2F148.

  • How do I install CryptoPro CSP?

    Detailed instructions for installation of CryptoPro CSP can be downloaded at: https://www.cryptopro.ru/support/docs.

  • What is a CryptoPro EDS Browser Plug-in? Where can I download it?

    The CryptoPro Plug-in is an additional module for your browser that allows it to work with the CryptoPro CSP program. The plug-in can be downloaded at: https://www.cryptopro.ru/products/cades/plugin/.

  • How do I know when registration is complete, and I can start working in the Personal Account in the Track & trace IS?

    If the registration has been completed successfully, an email will be sent with the participant’s number and link to log into the Personal Account. Follow the link and start working in the Personal Account of the track & trace system.

  • My registration has been rejected. What do I do?

    The reason for rejection is stated in the notification of denial of registration in the Track & trace IS. Eliminate the cause of why you have been denied registration and repeat the registration process.

Equipment
  • What type of equipment do I need for purposes of pharmaceutical product track&trace?

    For the purposes of code printing, manufacturers need serialisation and aggregation equipment (if not previously purchased), and an emission monitor — equipment that issues a crypto-tail. The CRPT operator shall, at their own expense, provide emission monitors to all pharmaceutical manufacturers.

  • Equipment from which manufacturers was checked for crypto-protected code printing?

    From almost all manufacturers present in the Russian market. Currently, this involves over 15 serialisation equipment manufacturers, over 10 printer (printing system) manufacturers and over 20 scanner manufacturers.

  • Are there any preferential terms available for equipment purchase?

    An industry development fund launched a credit programme in April 2018, in order to grant loans for purchasing pharmaceutical product track&trace equipment. It offers preferential loan terms — you can borrow from RUB 5 million to RUB 50 million with a 1% annual interest rate for up to 2 years. Repayment of the principle will begin only in year two. IDF has already approved a loan for the St. Petersburg pharmaceutical company Polysan,
    Ozon Pharm and Ozon (both from Samara Region — RUB 50 million), Pharmacor Production (St. Petersburg, RUB 50 million), AVVA RUS (Kirov Region, RUB 50 million), Medisorb (Perm-based low-end pharmaceutical products manufacturer, RUB 34.5 million), etc.

  • What cardboard quality is required for crypto-protected code printing?

    CRPT can now print digital codes on any type of cardboard based on specific features for ink selection, etc. Contact out CRPT information centre, and we will inform you of the equipment setup methods based on your cardboard quality.

  • How much does the marking equipment cost?

    The average price of the equipment for small pharmaceutical manufacturers may vary from RUB 3.1 million to RUB 6 million, for high-speed production lines used by Big Pharma — from RUB 7.5 million to RUB 14 million.
    The TrekMark company was founded in order to provide Russian manufacturers with high-quality hardware and software. Due to the localisation of Russian-based manufacturing, prices for TrekMark equipment are 30% lower than those of their foreign counterparts, and the lead time has been optimized.

  • My company has already purchased the equipment in order to participate in the experiment. Do I have to purchase new equipment?

    If the company is already a participant in the experiment, there’s no need to change the marking equipment. Crypto-protection may be embedded in the existing business processes, minimum changes are required. No significant costs are implied.

  • Will I have to replace warehousing scanners?

    If your warehousing scanner supports reading Data Matrix, you won’t have to replace it.

  • What equipment do I need to implement marking across pharmacies and medical institutions?

    Pharmacies System implementation does not require any additional retooling: for Data Matrix code recognition, all-in-one scanners are used that are available in each pharmacy, there’s no need to replace them. According to Federal Law No. 54-FZ, business owners must start implementing an online cash register. Modern cash registers support reading digital codes, there’s no need to replace them. Pharmacies will only need to replace fiscal memory devices in online cash registers on a scheduled basis. Hospitals: CRPT shall, at their own expense, equip all medical institutions with retirement registrars (they are similar to cash registers in medical institutions that register the retirement of pharmaceutical products) CRPT plans to invest RUB 10 bln in this initiative. Approximately 260,000 devices will be required for this purpose.

Encrypted e-signature (EES) and the participant's Personal Account
  • What e-signature is required to work with the track & trace digital system?

    Only an encrypted e-signature may be used in the track & trace system. Registration in the Personal Account of the track & trace system needs to be performed using the EES registered for the CEO (Director General) of the company! At the time of registration, the full name and INN will be double-checked for compliance with the Uniform State Register of Legal Entities.

  • Is there any opportunity to delegate rights in the track&trace system?

    Currently, the Personal Account of the experiment participant may be opened using the CEO’s EES. Then, the CEO may add other e-signatures with assigned rights and permissions. Delegating rights up to and including detailed setup — no.

  • How are the acquisition and use of an EES regulated?

    Any relations in the area of electronic signature usage are governed by Federal Law No. 63-FZ of 6 April 2011 (rev. 23 June 2016) «On electronic signatures» and Decree No. 634 of the Government of the Russian Federation of 25 June 2012 «On electronic signature types permitted for applying to state or municipal services».

  • How many Personal Accounts should I register if I have legal relationships with multiple companies?

    If you are bound in legal relationships with multiple companies, you should register a dedicated Personal Account for each legal entity.

  • How many Personal Accounts do I need to register?

    If a legal entity represents multiple foreign registration certification holders, they must be registered on a case-by-case basis.
    If a legal entity represents both a foreign manufacturer and registration certificate holder, they must be registered on a case-by-case basis (see Guidelines section).

  • Procedure to acquire an EES

    — select a certification centre (the list of accredited certifying centres is available on the website of the Russian Federation Ministry of Digital Development (http://minsvyaz.ru/ru/activity/govservices/2/);

    — submit an application for an EES (this service is mainly provided remotely, on the certifying centre’s website);

    — pay the invoice after the application is confirmed;

    — gather the set of documents and provide them to the certifying centre;

    — scquire an encrypted e-signature certificate;

    — for working with EES, you may need cryptography software (its composition may change depending upon the EES application);

    — an EES is issued on electroniс keys. Key models must be certified by FSTEC and/or FSS (e.g. eToken or RuToken electronic keys).

About the experiment
  • How is the experiment regulated?

    — Federal Law «On drugs circulation» No. 61-FZ of 12 April 2010;
    — Federal Law «On amendments to the Federal Law on drugs circulation» No. 425-FZ of 28 December 2017;
    — Decree of the Russian Federation Government No. 1018 of 28 August 2017;
    — Guidelines for conducting an experiment to apply control (identification) marks and monitor specific types of human-use pharmaceutical products in civil circulation within Russia
    — other normative legal documents contained in the section Documents.

  • Where can I find the list of participants in the pilot project?

    The current list of pharmaceutical product manufacturers taking part in the experiment is available on the Participants in the Experiment for Marking Pharmaceutical Products with Control (Identification) Marks tab in the Pharmaceutical Products Track & Trace System section of the Roszdravnadzor website http://www.roszdravnadzor.ru/marking/participants.

  • When will marking become mandatory for all pharmaceutical products?

    The track & trace experiment for pharmaceutical product has been extended until late 2019, and after that marking will turn from an experimental to a mandatory procedure without any pause or delay.

    Marking becomes mandatory for all pharmaceutical products starting on 1 January 2020. This requirement was introduced by Federal Law No. 425-FZ of 28 December 2017.
    For the drugs included on the list of cost-intensive nosology and vital & essential pharmaceutical products, marking will become mandatory at an earlier time (the exact date to be determined by the Government of the Russian Federation).

  • For what reasons might a registration be denied?

    There may be a number of reasons for denying the registration for a participant in the experiment depending on the participation type:

    a) in IS MDLP registration based on the completed application to participate in the experiment filed by Russian PP manufacturers that are implementing either the «PP prepackaging/packaging into secondary and/or tertiary packaging» or the «outgoing quality control» stage, may be denied for the following reasons: — the unavailability of an encrypted e-signature for the applicant company’s CEO, or a discrepancy between the qualified certificate owner details and the information about the applicant company’s CEO; — no information available on valid entries in the Uniform State Register of Legal Entities/Uniform State Register of Individual Entrepreneurs maintained by the Federal Tax Service; — no information available about valid licenses in the Uniform register of licenses for manufacturing pharmaceutical products maintained by the Ministry of Industry and Trade;

    b) registration in IS MDLP based on an application to participate in the experiment filed by a foreign holder of PP registration certificates may be denied for the following reasons: — no information about the PP registration certificate specified in the application available in the State register of human-use pharmaceutical products; — a lack of information about a positive decision by Roszdravnadzor to participate in the experiment;

    c) a registration in IS MDLP based on an application to participate in the Experiment filed by the representative offices of foreign registration certificate holders may be denied for the following reasons: — unavailability of an encrypted e-signature for the applying company’s CEO, or a discrepancy between the qualified certificate owner details and the information about the applying company’s CEO; — no information about valid entries is available in the State Register of Accredited Branches, Representative Offices of Foreign Legal Entities maintained by the Federal Tax Service;

    d) registration in IS MDLP based on an application to participate in the experiment filed by PP wholesale companies, retailers, or medical institutions may be denied for the following reasons: — no information is available about a valid certificate for an encrypted e-signature issued to the applying company’s CEO; — no information about valid entries is available from the Uniform State Register of Legal Entities/Uniform State Register of Individual Entrepreneurs maintained by the Federal Tax Service; — no information about a valid license is available from the Uniform State Register of licenses for medical and pharmaceutical businesses maintained by Roszdravnadzor.

  • How can I take part in the pilot project?

    1. To be a participant in the experiment, you should submit a proper request to Roszdravnadzor. This will enable the participant to register in the IS MDLP and begin preparing for mandatory marking.

    2. Then you should file an application on the Chestny ZNAK website.

    3. To complete the registration, the company must register an EES for its CEO. The registration is carried out based on the electronic application. Residents of the Russian Federation and representatives of a foreign registration certificate holder must file an electronic application to participate in the experiment. A foreign registration certificate holder shall, upon filing an electronic application, submit original documents to confirm his right to represent the interests of a foreign registration certificate holder and properly apply for voluntary participation in the experiment no later than 10 calendar days after filing an electronic application to Roszdravnadzor at the following address: 4 Slavyanskaya Ploschad, Bldg. 1, 109074 Moscow Information about the results of the review and the decision to register the foreign registration certificate holder as a participant in the experiment will be entered by the Track & trace IS operator based on Roszdravnadzor’s representation. In the event that registration is denied, Roszdravnadzor will send an explanation of the reasons to the applicant’s email address.

    4. Have a hardware-software complex connected to communication channels that provides automated interaction with the Track & trace IS operator to obtain marking codes.

    5. Have a computing system able to create and certify electronic documents with an encrypted e-signature which is required for interacting with the Chestny ZNAK Track & trace IS operator (requesting identification tools, information about their use, notifications) and for working within the Personal Account.

Digital code: generation, application, reading
  • When and how can I start digital code API-based cloud- or black box-enabled testing?

    Right now, contact Anton Kharitonov, Head of the Pharma business line (a.kharitonov@crpt.ru) and then submit a request at  https://честныйзнак.рф website.

  • What information does the Data Matrix code contain?

    The marking code contains the following mandatory fields: serial number, global trade item number (GTIN). The code may also contain the following (optional) fields: expiration date, batch number, FEACN as per agreed format.
    The marking code must contain the key ID and verification code that provide cryptographic information protection based on an open key encryption algorithm (GOST 34.10–2012).

  • We conducted a code print test on our line, but it didn't pass. What are we doing wrong?

    Any attempt to reconfigure the lines in the process window and without help from the serialisation equipment manufacturer tech specialists may not only be unsuccessful but may also result in violating the manufacturer’s service and warranty conditions. We do not recommend conducting any tests by your own independent efforts. Contact CRPT; the issue may be addressed over the telephone or with the help of equipment manufacturer technical specialists or their representative/integrator within a half hour.

  • Is automatic aggregation and layered crypto-code-based reading supported?

    Yes, of course.

  • How many requests to issue crypto tails may an operator receive from a single manufacturer daily?

    Unlimited.

  • Will we obtain 2 million codes immediately upon request, or will each production line request the required quantity based on the size of batches, quantity of numbers, etc.?

    If you use a single ERP system for managing production sites, the system will take it into account, and generated codes will automatically be distributed across the addresses of the sites specified in the Personal Account.

  • If we require over 2 million serial numbers daily, should we submit multiple requests within 24 hours?

    You may submit a request for one month or one year in advance. According to the technical documents, the server is capable of generating 2 million codes within 10 minutes. Codes will arrive at your monitor in proportion to volume freed up.

  • What protocol is used for data exchange with the equipment? Will any tools for exchanging data with the most popular systems in Russia be immediately available?

    Currently, an all-purpose API protocol is available which you may request from CRPT, try to connect through it and test it for your system (it is compatible with all systems). If you have a self-writing system, you may configure it using a detailed instruction or contact our specialists.

  • What percentage of packaging is rejected when crypto-protection is applied?

    We achieved less than a 1% rejection level due to express configuration of the line (basically 0.7%). For lines where we have more time for line configuration, the rejection level is even lower.

  • Do I need to modify the size of pharmaceutical product packaging due to applying additional crypto protection marks in the digital marking code?

    These extra 92 symbols only increase the density of the Data Matrix code, which means that they don’t need to be additionally printed somewhere else on the package, but are embedded into the code itself. The recommended code size by the GS1 documentation for Data Matrix code of this density is 16×16 mm. CRPT successfully conducted tests on 10×10 and 12×12 mm code size applications. This size is generally applicable and does not imply any increase in the PP packaging size.

  • Will I have to arrange for a designated communication channel between the factory and Russia in order to acquire generated codes?

    There’s no need for a designated communication channel, but you will need a stable web connection. To operate with crypto-protected codes across Russia, the existing communication channel is sufficient. According to our calculations, less than 1% of capacity is consumed by a 10 Mbit channel. However, the company may allocate the channel as required, but again, there’s no need to do it in Russia. Foreign companies only need to have web access and request the code from the service located in one of the European countries.

  • If crypto-protection is implemented, will it impact the process of delivery and acceptance of pharmaceutical products at the warehouses?

    Crypto-protection is not applied for the warehouses. Warehouses use aggregation codes without any crypto-protection, which are further distributed across the system.

  • What minimum aggregation level is required to implement the project?

    The number of aggregations with CIM (control identification marks) assignment must exactly coincide with the number of packaging nesting levels. Thus the first level is the minimum level (secondary packaging for small parcel, display).

  • To what levels of packaging must special codes be applied?

    As part of the experiment, the code is only applied to secondary and tertiary packaging.

  • How many pixels should 1 Data Matrix code element contain when machine vision is applied?

    At least 3 pixels with linear resolution (when 12×12 mm code is printed in 300 dpi). Recommended — 6 pixels (the same size code printed in 600 dpi).

Automated processes and registration of information in the IS MDLP
  • How will logistics workflow change after marking is implemented?

    The implementation of an appropriate methodology across the company helps accelerate and automate logistics workflow, which leads to the optimisation of a manufacturer’s costs related to these workflows. Businesses will be able to save significantly on logistics: the implementation of full goods traceability, the manufacturer or logistics company obtaining the most current statistics for the sale geography, the performance and seasonality will enable the modification of logistics systems and the optimisation of shipments and inventory. By various estimates, optimising the shipment structure, forecasting demand and distributing the marketing effort will help companies save at least 10–12% of costs for these items.

  • When and how must importers mark their goods?

    Importing companies are responsible for marking goods until they are submitted to customs procedures. The goods delivered for actual customs control clearance must be delivered with identification tools and marking codes in the form of a Data Matrix barcode. The existing business workflow for the pharmaceutical industry only requires the direct application of a code to the recycled (retail) package, which may only be performed by a company that specialises in this type of work.

Emission Recorders
  • How does an emission monitor function?

    An emission monitor is an industrial software and hardware complex built up based on a Russian element base. It functions as a key and verification code generator and storage for crypto-protected marking codes. An emission monitor for a Russian-based company must be located directly at the production site. All Russian-based manufacturers may only connect to the system via an emission monitor (or a «black box»). Exceptions like requesting codes from the cloud may only be made for foreign manufacturers.

  • Will an emission monitor function without web connection?

    An emission monitor is able to properly function even without a web connection. A monitor supports storing up to 2 million codes without connecting to the Internet. On average, this amount is sufficient for 1 week of operation for a pharmaceutical company.

  • What if the emission monitor goes out of order?

    In this case, redundant hardware and servers are available. The project operator not only supplies emission monitors but also provides technical support under the terms of the public-private partnership agreement.

  • Who will integrate an emission monitor to the enterprise IT architecture, and setup the interfaces to the Chestny ZNAK track & trace system and enterprise systems?

    You must configure the interfaces to the Chestny ZNAK track & trace system by your own effort. Emission monitors are connected via an all-purpose API (descriptions are provided by us) with our help (if required). The operator’s responsibility is focused on the emission monitor, we do not intervene in your local area network.

  • What procedure should I follow to acquire emission monitors for testing purposes?

    For testing an emission monitor, submit a request to the CRPT, and we will agree on a remote connection via API, and deliver a low power monitor to the site as required. Uniform call centre: 8-800-222-15-23 E-mail: info@crpt.ru, a.kharitonov@crpt.ru.

  • When and how can I obtain a permanent emission monitor?

    An emission monitor protected with a FSS license will be issued per the established connection schedule, according to the stages specified in the regulations. For the detailed consultation please contact the CRPT uniform call centre.

  • Will I have to let FSS crypto-protection experts into my factories in order to install emission monitors?

    To install and configure the equipment, you will have to let the track & trace digital system operator’s specialists into your facilities. The equipment will be physically located inside the factory, but it will virtually be outside of the local area network and have no access to sensitive information or information that is generally stored within the enterprise system. Yes, our service specialists will have access to the installed equipment, in addition to Rostelecom employees and A/C system configuration managers, etc. CRPT has already started working through this issue together with pharma representatives, and they are satisfied with the fact that no modifications must be made to the enterprise local area network. We understand that the enterprise local area network of the foreign manufacturer is a part of the global area network for the same manufacturer and may contain sensitive company information that is pertinent not only to the Russian market. We understand the anxiety of our partners, and we assure you that any concerns in this regard are unwarranted.

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