Digital labeling is aimed at protecting the market and consumers from counterfeit and illegal products.
For example:
expensive medicines that are often counterfeited. The consumer suffers, paying money but not receiving the necessary medication.
alcoholic products and cigarettes produced illegally. The state suffers, not receiving taxes and excise duties. The consumer may be poisoned.
clothing items and household appliances that are counterfeited without the trademark owner's knowledge. Legal businesses suffer, investing money in developing new products but unable to compete with cheap counterfeits.
What is innovative about digital labeling?
The introduction of digital labeling will ensure:
growth in the share and volume of legal production by reducing smuggling and counterfeiting;
real-time data on product movement, optimization of production plans, raw material procurement, demand and supply forecasting for products;
transition to electronic document management (radically reducing the volume of paper documents still actively exchanged between companies, lowering business costs and increasing labor productivity)
logistics savings (with full traceability, manufacturers or logistics companies receive up-to-date statistical data on the geography, intensity, and seasonality of sales, enabling them to restructure logistics schemes, optimize deliveries and warehouse stocks);
modern financial, accounting, and warehouse management (currently many entrepreneurs lack their own data on stock and product codes in warehouses and stores. Without proper accounting, it is impossible to calculate profits or plan purchases, so automation will help entrepreneurs organize their business in the future)
What are the benefits for the state?
The introduction of labeling brings several benefits for the state, including:
Increased transparency of goods markets
Reduction in the share of falsified and counterfeit products
Improved efficiency of state control
Growth in collection of tax and customs payments
What are the benefits of labeling for businesses?
As a result of the introduction of labeling, manufacturers will be able to:
Increase revenue growth by displacing illegal products from the market
Obtain equal competitive conditions
Optimize processes and reduce production costs
Improve the quality of business analytics based on labeling system data
Protect the brand of a conscientious manufacturer
What are the benefits of labeling for consumers?
The introduction of labeling will allow consumers to:
Purchase only certified and quality goods
Protect their life and health
Obtain an effective tool for public control
Improve their standard of living by using only legal goods
Who and when decided to introduce digital labeling?
On November 20, 2020, the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 737 “On the introduction of a mandatory digital labeling system for certain types of goods” was signed.
According to the adopted Resolution, the phased introduction of a mandatory digital labeling system for certain types of products using identification means begins in the Republic.
The effect of this document was canceled after the signing on December 31, 2020, of the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 833 “On measures to ensure the phased introduction of a mandatory digital labeling system for certain types of products” (the full text of the document is available only in Uzbek).
According to the adopted document, the following are approved:
rules for digital labeling of products and tracking their circulation;
procedure for servicing and operating the national information system for digital labeling and product tracking “Asl Belgisi”;
features of digital labeling for tobacco and alcoholic products.
Will prices increase due to the introduction of labeling?
According to the resolution, the amount of the single payment for providing labeling codes to manufacturers and importers is set at 68 soms (about 0.006 USD) per 1 code excluding VAT.
In the most conservative scenario, after the introduction of labeling, prices for goods will not only not increase but may decrease by 10% due to the reduction of the share of counterfeit goods on the market and other positive effects:
The introduction of labeling will allow manufacturers not to lose money due to a decrease in the amount of illegal and counterfeit products on the market, as well as automation of business processes that will reduce production costs;
The introduction of labeling will allow manufacturers to optimize logistics and production chains through electronic traceability of each product unit, quickly respond to the absence of goods in a certain place, prevent overproduction and downtime of transport. Just by optimizing logistics and production, as practice shows, an honest manufacturer can save 10-15% of their costs, which directly affects prices by lowering them.
Buyers will benefit from the ability to independently verify labeled products using the "ASL BELGISI" application.
In Uzbekistan, the digital labeling system is being created in a public-private partnership format.
private partner - LLC "CRPT TURON" - ensures the creation, operation, and development of the Information System for digital labeling and product traceability
state partner - State Tax Committee - carries out regulatory and legal regulation in the field of mandatory digital labeling of goods.
Who is responsible for the operation of the digital labeling system?
Cooperation was concluded based on direct negotiations with LLC “CRPT TURON,” during which an agreement on public-private partnership was adopted to ensure the creation, operation, and technical maintenance of the NIS “Asl Belgisi.”
The work of CRPT TURON is regulated by the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan dated 31.12.2020 No. 833 "On measures to ensure the phased introduction of a mandatory digital labeling system for certain types of goods", which was adopted instead of the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 737 "On the introduction of a mandatory digital labeling system for certain types of goods".
How does digital labeling work?
A participant in the goods circulation registers in the digital labeling information system (NIS “Asl Belgisi”).
The manufacturer or importer orders a digital code and applies a unique code to the product.
The entire logistics chain through which the labeled item moves—from the factory to the consumer, from entering circulation to removal from circulation—is recorded by the digital code - the labeling code.
The code is scanned at the point of sale on an online cash register. Information about the product's removal from circulation is transmitted to the system.
Using a mobile application for digital labeling, the consumer can verify the product’s legality.
Advantages of the digital labeling system “Asl belgisi”?
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