CHESTNY ZNAK and Product Traceability
Chestny Znak in Brief
Russia, Chestny Znak is in the middle of implementing the world’s most comprehensive improvements beginning from supply chain security and reliability and even gives an active role to manufacturers in this field with stricter and more detailed regulations than most countries. Being aware of the benefits of traceability, Russia implements traceability systems in many industries such as pharmaceuticals, fur, tobacco products, shoes and even wheelchairs by Chestny Znak.
An Example of a Reason that Drives the Russian Government to Implement a Traceability System
According to the Ministry of Industry and Trade, around 6 million counterfeit products have been sold on the Russian market since early 2018. Customers and product owners have a severe problem since they are getting products of doubtful quality for their money. It tarnishes their reputation and costs them money.
The main requirement of traceability systems is for companies to connect and comply with the National Track and Trace Digital System, Chestny Znak (Russian expression: Honest Sign) which is operated by the Center for Research in Perspective Technologies (CRPT) and is expected to be completely operational by 2024.
With the regulations in Federal Law No. 425-FZ, the traceability system has been clarified and announced by Chestny Znak to the industry authorities such as manufacturers, distributors, etc. The regulations cover 12 product categories: medicines, furs, footwear, bottled drinking water, tires, tobacco, dairy, wheelchairs, bicycles, light industry, perfumes, and photo cameras and flashbulbs. Requirements vary by industry, but there are some common threads for all of them, such as DataMatrix codes, crypto codes, serialization, aggregation, reporting, and records management.
The Russian Government, which indicates that its primary goal is to “ensure the authenticity and claimed quality of products purchased by consumers.”, gives its promise to society to protect the supply chain and provide end-users with reliable products by Chestny Znak. The fundamentals of serialization, aggregation, unit- and batch-level traceability, crypto codes, and electronic reporting and records management have remained constant, despite changes in deadlines and labeling requirements.
DataMatrix codes, which are alphanumeric combinations including at least four categories of data:
- a Global Trade Item Number (GTIN),
- a serial number,
- a verification key,
- a verification code(i.e., crypto code),
must be used to identify products. Furthermore, at the time of ownership, the product owners must generate a Universal Transfer Document (UTD), which must subsequently be transferred to the CRPT.
The following are the components of the Data Matrix code that Chestny Znak requires:
- Code for products (14 numerical digits)
- A unique serial number assigned to each product by the system operator or economic agency (13 digits)
- Expiration dates (non-perishables: 6 characters, perishables: 10 characters)
- A system operator-supplied verification key (4 digits)
- Bottled Water
- Light Industry
- Photo Camera and Flashbulbs
- Dairy Supplements
- Beer and Beer-based Beverages
The industries above are divided into 2 categories in terms of having already been made mandatory and waiting for a pilot project (also called “experiment” by Chestny Znak).
As “the experiments” of the Chestny Znak, there are some developments about dietary supplements and beers. From May 1, 2021, until August 31, 2022, the Russian Federation’s government has approved a track-and-trace experiment for dietary supplements, beer and beer-based beverages. Dietary supplement manufacturers and importers create markable product catalogs in their TT GIS user accounts (Track & Trace Government Information System). They order a DataMatrix code for each SKU(stock keeping unit) (or, in certain situations, a collection of SKUs) and then apply it to each product packaging. The product is now ready for distribution and may be shipped to wholesalers or retail locations for sale.
Chestny ZNAK track and trace relies heavily on crypto codes. Previously, each code had to be 88 characters long, but in August 2019, a government order changed the system for applying pharmaceutical labeling codes, decreasing the need to 44 characters. The codes are issued by the CRPT, and they can only be requested/received by authorized representatives. VISIOTT is their official integrator of the CRPT.
Meet Chestny Znak Requirements with VISIOTT Solutions
The most chosen solutions for the serialization are VISIOTT Flat Carton Serialization Station (FCSS-100) and Carton Serialization Station (ISS-100). FCSS-100 practically realizes serialization by thermal inkjet technology, following the needs of industries such as pharmaceuticals, cosmetics, and medical devices. ISS-100 serializes every single product carton with thermal inkjet technology.
For the aggregation side, Semi-Automatic Aggregation Station (SMAS-100) and Horizontal Manual Aggregation Station (MAS-100) are the compliant and comprehensive solutions for your industry. Here you can find more information about our stations that fill your needs.
Designed for the needs of all industries using traceability technologies, our software complies with international standards. Our Level 2, Level 3 and Level 4 software includes solutions that meet the requirements of Russian regulatory authorities, Chestny Znak.