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Are you prepared? New Russian “Crypto-code” Requirements for Retailers and Consumer Product Companies

Authors: Jochen Schoenenberg, Susanne-Kirsten Mueller

According to a resolution of the government of the Russian Federation, a national track & trace digital system to facilitate the mandatory marking of goods sold in Russia will be created by 2024. Within the next 6 years, this Chestny ZNAK track and trace system will cover most product groups – from cigarettes to medicines to clothing and baby food.

Purpose of this system is

  • State regulation of production and turnover of the products of light industry
  • Reduce counterfeit products
  • Increase the tax collection rate
  • Increase the customs duties collection

Product groups affected by this new regulation

(Picture source: www.chestnyznak.ru)

July 2019 – Footwear, cigarettes

December 2019:

  • Tyres and tyre casings
  • Perfumes and Eau de Toilettes
  • light industry goods (knits/jersey tops, long & short coats, trench coats & jackets, windbreakers, bed & table linen, bath & kitchen linen)
  • Beer
  • Photo cameras and flashbulbs
  • Dairy

January 2020 – Pharmaceuticals

By 2024 Russian government plans to include all products to Data Matrix project.

Code Structure & Procedure

The requested code, that must be printed on each article, is combined out of two parts: first part is the unique identifier (serialization number and GTIN = SGTIN), so its key requirement that each article is serialized. The second part is a sequence of characters that are created by a cryptographic transformation of the first part. This cryptographic transformation is handled by the Center for Advanced Technology Development (CRPT). CRPT is responsible for the allocation of the crypto characters and transfer of the required data. The manufacturer puts the unique identifier (SGTIN plus crypto-code) on each article. The article will be tracked along the complete supply chain, starting at the manufacturer, during the logistics supply chain, in the store and finally at the fiscal printer and the point-of-sales.

SAP’s Solution Approach

SAP Advanced Track and Trace (ATTP) provides a corporate serialization repository & serial number management solution with planned interfaces and content for Russian marking and reporting compliance. It allows companies to run a corporate serialization repository and serial number management for regulatory reporting that supports compliance with international legislation. With SAP Advanced Track and Trace with country package for Russia offered by SAP Innovative Business Solutions we can comply global compliance with Russia’s serialization and reporting requirements – and help fighting counterfeiting and illicit trade.

  • Report serial number events to authorities and business partners, enabling compliance to international legislation
  • Integrate with ERP systems, warehouse management systems, and packaging lines
  • Capture serial numbers from packaging lines and warehouse systems, and store serial number events centrally
  • Track and trace serial numbers and their aggregations
  • Track batches and their related serial numbers
  • Globally manage number ranges and randomized or sequential serial number lists

For more details on the compliance requirements and SAP’s solution approach please out to Jochen Schoenenberg or Julian Neurath from SAP Innovative Business Solutions or Susanne-Kirsten Mueller from SAP Industry Business Unit Retail.

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