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 Since 2019 in the EAC area (Russia, Belarus, Kazakhstan, Kyrgyzstan, Armenia) and since 2021 in Uzbekistan (CIS) there has been an obligation to trace products placed on the local market by affixing an electronic mark (a QR code and more precisely a code called Data Matrix) on each individual product. This is a traceability that reaches down to the single unit and not just the batch. Traceability is currently required for the following product categories.
Product categories for which electronic marking is required:
- beer and low-alcohol drinks,
- dairy products,
- soft drinks,
- packaged water,
- drugs,
- tobacco,
- clothing, footwear and accessories (light industry products),
- furs (natural),
- non-alcoholic beer,
- vegetable oils,
- canned food,
- medical devices (certain categories only),
- perfumes,
- tires,
- cameras and flash-lamps,
- food supplements,
- disinfectants and antiseptics,
- wheelchairs,
- seafood (caviar),
- bicycles,
- animal feed,
- veterinary drugs,
- mobility aids.
In the near future this obligation will most likely be extended to all consumer goods and not only.
At national level the traceability marking is known as:
Russia: "Honest Mark"
Belarus: "Electronic Mark"
Kazakhstan: "QazMarka"
Kyrgyzstan: "Teksher"
Armenia: "emark"
Uzbekistan: "Asl Belgisi"
From a regulatory point of view, as far as the EAC area is concerned, the traceability obligation is based on the Agreement of the Member States of the Eurasian Union of 02/02/2018 and aims to combat the phenomenon of counterfeiting and tax evasion.
Economic operators who do not comply with this obligation risk very heavy fines and even imprisonment.
Furthermore, it becomes technically impossible to sell products that do not have this marking since the retailer, to print the receipt, must scan the Data Matrix code on the packaging and the code reader is connected to the cash register.
In Russia, from 01/07/2025, the traceability obligation will also be extended to hair cosmetic products and more precisely to the following codes NACE RUS:
20.42.16 - Shampoo, hairspray, straightening and perm products
20.42.17 - Lotions and other hair products not included elsewhere
Regulatory ref.: Legislative Decree Gov. RUS No. 1681 of 30/11/2024
The legislation does not distinguish between cosmetic products for professional use and cosmetic products for private consumers.
The burden of marking is on the importer: the electronic marking (Data Matrix code) mentioned above must be present on each package of the sales unit before the load arrives at customs.
Implications for the importer:
RUSSIA: for foreign-made products, each importer must register on the website честныйзнак.рф + GS1 Russia (gepir.gs1ru.org) and for each shipment obtain a number of Data Matrix codes equal to the number of retail units in the shipment, which must then be affixed to each product package before the goods arrive at customs. Each Data Matrix code costs 0.50 + VAT ruble cents (c. 0.005 EURO), for now. To obtain it you need an electronic signature + specific software.
In the import customs declaration, it seems, the unique number (serial) of all the sales units present in the shipment must be reported. If you make a mistake, you need to request new codes and modify the customs declaration. The modification of the customs declaration is only done through an inspection of the cargo, etc.
In the other countries mentioned above, the marking works in the same way, only the national operator changes.
Implications for manufacturers:
The electronic marking for a manufacturer is configured as an obligation to assign a serial number to each retail sales unit.
As long as it concerns categories such as: washing machines, TVs, refrigerators and similar products it is not a problem. Things become problematic when it comes to products such as: bottled drinks, canned soft drinks, perfumes, creams and similar products which are normally identified by the batch number (that is, the tendency of the most developed economies is to do the exact opposite).
So, either you need to modify the labelling line to apply a unique serial number in the form of a QR code to each individual package or you need to do this work manually by applying an adhesive sticker with the Data Matrix code.
Implications for distributor:
After the import procedure is completed, the available unique numbers must be transferred (sold) to the next customer only via electronic invoicing. 1 customer = a certain number of unique codes. Here too, if something goes wrong, if the QR code sticker comes off or becomes illegible or if you have to make a return, management becomes problematic, because accounting also comes into play.
Implications for the retailer:
The retailer must have suitable equipment to read (scan) the Data Matrix codes.
When sells a product subject to traceability, must scan the Data Matrix code on the product to remove it from circulation on the market and from the database of codes issued to the importer.
Penalties for violation of marking obligation in Russia:
General goods:
Individuals: 5 000-10 000 RUR + seizure
Legal entities: 50 000-300 000 RUR + seizure
In case of aggravating circumstances:
Fine starting from 300 000 RUR or imprisonment up to 5 years
Use of counterfeit codes (generic goods):
Fine up to 4 000 000 RUR or imprisonment up to 3 years + 120 000 RUR / In case of aggravating circumstances: imprisonment up to 6 years |
