Chestny ZNAK

The new Russian track & trace system (Chestny ZNAK) launched in March 2019 is probably the most comprehensive system of control of the movement of goods established by any tax authority in the world.

It all started with some stamps on liquor (EGAIS). Subsequently, there was the introduction of Cash Register Equipment (CRE) and the pilot making RFID chip tagging of fur items mandatory.

Chestny ZNAK is already mandatory for tobacco, fur, footwear and some medications. Pilots for dairy, wheelchairs, bicycles, photo cameras, tyres, garment and perfumes are carried out or starting next month. According to the tax authorities, by 2024, the system will cover all consumer industries.

How does it work?

To each product manufactured or imported to Russia, there has to be assigned a unique digital code and placed on the packaging. With the help of this code Chestny ZNAK records the transfer of goods, when goods are stored or placed on the shelf and when items are sold via an online cash register. There is even an end consumer app that allows scanning the purchased product.

In this way, Chestny ZNAK makes it possible to trace the entire journey of the product.

Poland and Italy are also planning to introduce online cash registers.

Is this the direction we all are heading?