In order to combat counterfeit and illegal products, the Government of Uzbekistan has decided to introduce mandatory labeling of products sold within the territory of the republic.
The reason for this decision was the identification of the overall level of the “shadow” economy in Uzbekistan: in 2019, it amounted to 52.11%, that is, more than half of the total market.
As a result:
- the consumer pays money for uncertified and possibly dangerous items, for example, counterfeit medicine;
- the state does not receive taxes and excise duties;
- legal businesses that invest money in developing new products but cannot compete with cheap counterfeits.
Why Businesses Must Work with Labeling
Based on the resolution of the Cabinet of Ministers No. 833 dated 31.12.2020, it is established that:
- the obligation to label goods subject to mandatory digital labeling lies with manufacturers and importers;
- enterprises engaged in retail or wholesale trade of goods subject to mandatory digital labeling are required to connect to the national information system for monitoring labeling and tracking products;
- catering enterprises are also required to register in the digital labeling system, as they sell alcohol and accordingly become participants in digital labeling and must be registered in the system.
Thus, labeling affects:
- Manufacturers
- Importers
- Representatives of wholesale and retail trade
Labeling rules cover all market participants, as achieving the set goals for reducing illegal products on the market is possible only through active work with labeling by representatives of all links in the chain from production to sale.
Why Businesses Should Work with Labeling
Manufacturers, along with consumers, suffer from the abundance of counterfeit goods on the market. Counterfeiting primarily hits the income and reputation of manufacturers. The introduction of mandatory product labeling will benefit domestic and foreign manufacturers.
Thus, manufacturers will gain:
- Increased revenue by displacing illegal products from the market
- Equal competitive conditions
- Process optimization and cost reduction
- Improved quality of business analytics based on labeling system data
- Protection of the brand of a conscientious manufacturer
Mandatory Steps for Working with Labeling
For each participant in the goods turnover, the number of steps required to work with labeled goods differs. Manufacturers and importers are the most involved in working with labeled goods, as they are responsible for applying labeling codes.
All mandatory steps for different participants in the turnover are presented in the summary table below.
*This implies a minimum balance of funds so that when reporting on the use of codes, the amount is debited according to the presented data.
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