What is digital labeling

Digital labeling is a process of applying a special code on goods or packaging in order to trace and track the labeled goods. Labeling is primarily aimed at ensuring the authenticity and declared quality of the purchased products for consumers.

Products are labeled with a two-dimensional Data Matrix code, which indicates date and place of manufacture and also helps trace and track the product along the supply chain from the manufacturer to the wholesaler and retailer to the sale through the online cashier. An example of a Data Matrix code can be viewed in the lower right corner of the sticker on the package:

At each stage, manufacture and turnover related data is recorded in the national information system of digital labeling and traceability of goods, known as Asl Belgisi.

In this article, you will learn:

• Why to use digital labels
• Who is responsible for labeling?
• How much does a Data Matrix code cost
• How labeling works

Why to use digital labels

According to open sources, Uzbekistan’s shadow economy totaled 52.11% in 2019. Application of Data Matrix codes on packaging helps more effectively fight counterfeit and smuggling, protect legal businesses and consumers against fake products and increase tax collection.

Recording the movement of labeled goods at each stage, from the manufacturer to the buyer, prevents twinning and repeated withdrawal from circulation.

Buyers can check the authenticity of a product by scanning its Data Matrix code with the ASL Belgisi mobile app.

Who is responsible for labeling?

Manufacturers and importers are responsible for applying Data Matrix codes. They are in fact required to order Data Matrix codes, label their products at production facilities, introduce the labeled goods into circulation and transfer related data to the labeling system for other participants in the commodities turnover to perform further transactions.

CRPT TURON LLC as an operator is responsible for the issuance of Data Matrix codes and the operation of the Asl Belgisi system. It is the operator who ensures the creation, operation and development of Asl Belgisi.

How much does a Data Matrix code cost

The digital labeling fee is set out by Resolution of the Cabinet of Ministers No. 833 dated 31.12.2020:

• In accordance with Resolution No. 833 dated 31.12.2020, the operator charges a fee of UZS 68 per Data Matrix code (with VAT to be paid additionally).
• It should be paid by the manufacturer or importer only;
• Other participants (i.e., wholesalers, retailers and consumers) do not pay anything.

How labeling works

The life cycle of a label consists of the following stages:

• A participant in the commodities turnover signs up with the Asl Belgisi system.
• The manufacturer or importer will order a unique digital code to apply it on the product.
• The code is used to record the entire logistics chain for the labeled product, from the factory to the consumer and from introduction into to withdrawal from circulation.
• It will be scanned by a participant in the commodities turnover with a special 2D scanner at the online cash desk at the time of sale. Thus, information about withdrawal from circulation will be transmitted to the system.
• Consumers can check whether the product is legal or not, using the mobile application for digital labeling.