In January 2018, a track & trace experiment for tobacco products was launched in Russia. The Center for Research in Perspective Technologies is the operator (Operator — CRPT), and the project is coordinated by the Ministry of Industry and Trade of Russia. Tobacco products are marked in consumer and group packaging, and the shipping package may also be marked. A
All major manufacturers of tobacco products, such as Japan Tobacco International, Philip Morris International, Japan Tobacco International, British American Tobacco, Imperial Tobacco, etc., participate in the experiment, as well as retail chains, distributors, and software developers. A total of 75 participants have registered in the system. CRPT collaborates with developers of accounting software, manufacturers of cash register equipment, fiscal data and
At the first stage of the experiment, the cash register software was refined by the companies Dreamkas, Atol, SKB Kontur, and
As early as in February, manufacturers began to apply the digital code on packets: on 12 February 2018, a batch of marked cigarettes was produced at the Philip Morris Izhora factory, on 15 February at the Petro JTI Russia factory, and in late March at the BAT Russia factory. In April, the Center for Research in Perspective Technologies completed the full traceability chain and took the package out of circulation in stores. On 2 April 2018, a sales outlet of the Perekrestok chain of stores registered the removal of tobacco goods from circulation in the information system using the cash register equipment from the first batch of marked products, manufactured at Petro LLC. The removal of tobacco products produced by Philip Morris Izhora JSC from circulation was also registered in the chain of METRO Cash & Carry LLC stores.
In the second stage of the experiment, the number of marked cigarettes will be increased significantly, with importers and minor retailers joining the pilot project.
|Japan Tobacco International|
|Philip Morris International|
|Х5 Retail Group|
|Auchan Retail Russia|
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Offers a wide range of services: from repair and maintenance of mobile data collection terminals to leasing out and selling
An online cash register and web service for business management.
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Develops programs for retail trade, creates and implements cash register solutions, supplies shop equipment for top global companies.
An accredited fiscal data operator.
The first fiscal data operator for reliable storage and quick transmission of receipts to the Federal Tax Service as per Federal Law
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State Secretary/Deputy Minister for Industry and Trade
«The results of the first stage have proven the marking method to be the correct choice. From these results, we can be sure that the industry is ready for the mass release of coded products. By the end of the year, it is planned to increase the amount of marked tobacco products 175 times compared to the results of the first stage — and reach up to 100 million packs»
Vice President of JTI on Corporate Relations and Communications in Russia
«It’s been seven months since the experiment qed, and we can already see that Data Matrix is the right choice for tobacco products marking since it facilitates sustainable production and further traceability of products. In addition, it is a
Director for Communications with EEU and Protection of PMI Trademarks in Russia
«During the first six months of the pilot project, we did not experience any significant technical issues related to retrofitting the plant or to the production process specifics. Taking part in the experiment did not require rebuilding the company’s production lines».
Head of BAT Russia for Combating Illegal Circulation of Tobacco Products
«During the pilot project, a track & trace system has been developed which has no comparable counterparts across the globe. During the first stage of the experiment, the operators of IT systems, manufacturers and retailers were able to test the marking solutions and find areas for improvement».
Senior Manager at Imperial Tobacco for Regulation and Interaction with State Authorities
«For us, the importance of conducting the experiment before introducing mandatory marking is apparent to us. The pilot project allows us to uncover problems and bottlenecks as well as determine the objectives that need to be fulfilled during project implementation, as well as plan for the necessary investments in organizational steps».
Advisor of the Chairman of the Board of Taxcom
«Since the very beginning of the pilot project, fiscal data operator Taxcom developed a special technology for transferring data through universal source documents for all project participants, which has made it possible to submit data on unique codes of packs, cartons and boxes to the CRPT system within the prescribed periods. We support the pilot project for tobacco products marking and believe that building a system of full traceability is a truly important and necessary initiative, for both manufacturers and consumers».
Head of the Moscow Representative Office of METRO AG
«METRO welcomes the state’s readiness to work out all functional elements of the system for traceability of tobacco products within the scope of the pilot project. For our company, it is important to not only adjust our own processes but also to fully account for the specific needs of METRO’s key clients — representatives of small and
Head of the Logistics and Planning Office of MEGAPOLIS Trading Company
«The traceability scheme for tracking tobacco products is based on the concept of
Director for Interaction with Authorities at X5 Retail Group
«We see great potential in the tested track & trace system for bona fide participants of the consumer market in the fight against illegal tobacco product circulation across the country. We therefore actively take part in the experiment».
Head of the League of Freedom trade union
«In my opinion, the option to use digital marking for tobacco goods is the soundest one for businesses out of all those proposed (tags, etc.). I see no significant reasons for an increase in the price of goods».
IS MOPT is the information system for the marking and monitoring of tobacco products circulation.
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 a national system for digital marking of goods by 2024 based at the Center for Research in Perspective Technologies (CRPT).
CRPT is a joint project of USM Holdings (Peterservice, 50%), Rostec State Corporation (Avtomatika Concern, 25%) and
The 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:
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
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.
The project began on 15 January 2018 and will run until 31 December 2018. It is divided into two stages. At the first stage, major manufacturers, distributors and retail chains participate in the pilot project; at the second stage, they are joined by importers and traditional retailers.
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.
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/
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 system.
Distributors will deliver the data to the track & trace system in electronic format via
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
To utilize the system, the following technical equipment is required:
For distributors and wholesalers:
For a retail point of sale:
For distributors and wholesalers:
For retail points of sale:
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.
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 email@example.com
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Korus Consulting CIS https://www.esphere.ru
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