The International Commodity Fair is launching a series of expert articles where leading industry specialists address the most pressing topics in the consumer market and aspects of foreign economic activity. In this piece, Anna Fomicheva, founder and CEO of LLC "Atlas," discusses the specifics of product labeling for imports in 2021.
Key Points on Labeling
Product labeling is mandatory for certain categories of goods when importing. By 2024, it will apply to all consumer items. The main goal is to curb smuggling. Implementation is carried out through product identification and monitoring their movement at all stages—from warehouse to retail shelf. The nationwide "Chestny ZNAK" (Honest Mark) system ensures a uniform and comprehensive approach to this.
System advantages:
To benefit from the labeling system, importers need to understand the procedure and sequence of actions, obtain the codes, label the products, complete customs clearance, and avoid liability for violations.
All About "Chestny ZNAK"
This is a unified system for product labeling and traceability, which applies to the production and sale (including import) of the following products:
When is the product labeled during import?
Either abroad or at specialized warehouses in the EAEU, or at customs warehouses in Russia. Labeling is applied to the product or its packaging. For large shipments, an aggregate code (including the data for all identification marks in the package) is used.
If an unlabeled product enters Russia, it must first be placed under customs transit, then at a customs warehouse for labeling, and only then declared for domestic consumption.
The customs declaration must specify control and identification mark information, which is matched against operator data. On successful verification, the product is released for sale.
Not all customs offices are ready to accept products for labeling due to low capacity and lack of required equipment.
Failure to follow labeling procedures incurs liability. Fines (per Article 15.12 of the Administrative Offenses Code) can be up to 300,000 rubles for legal entities.
What changes on 01.01.2021?
Light industry goods now require labeling:
Until February 1, unsold goods can be stored without labeling, but only in warehouses. To place goods on store shelves, appropriate codes must be added. From February 1 onward, storing unlabeled products is illegal, with penalties for entrepreneurs.
Labeling requirements across the EAEU
Currently, each union country sets its own labeling rules, but it's logical that a single standard will eventually emerge—currently being developed in Russia. Russia's large market and the aim of the union to minimize barriers and unify control standards support this. Unified labeling will encourage healthy trade growth and eliminate gray imports.
In current practice, Belarus has already announced readiness to join Russia in a joint system for tracking and labeling certain goods to curb counterfeit and low-quality imports. In Kyrgyzstan and Kazakhstan, many carriers refuse to accept unlabelled goods, understanding the risks. If incorrectly labeled, products are subject to mobile customs control; this results in vehicle removal from the supply chain during investigations, downtime and lost income, as well as the seizure and destruction of the importer’s goods.
It's more effective to set up labeling and logistics correctly from the start, using ready-made solutions, rather than fighting the system.
Atlas LLC offers a turnkey solution for your business, from obtaining marking codes to decommissioning goods from the warehouse or retail outlet. You can act quickly, clearly, and confidently.
Advantages of working with Atlas LLC:
Automation of labeling, inventory, and decommissioning processes, provided through:
We are ready to organize your logistics, provide customs clearance, and arrange delivery of goods from abroad using any mode of transport, including multimodal shipments.
Importer’s Steps for Product Labeling:
Wishing you successful solutions, profitable deals—and don’t let changing market conditions limit your potential.
Atlas LLC is a reliable partner for importers.
Key Points on Labeling
Product labeling is mandatory for certain categories of goods when importing. By 2024, it will apply to all consumer items. The main goal is to curb smuggling. Implementation is carried out through product identification and monitoring their movement at all stages—from warehouse to retail shelf. The nationwide "Chestny ZNAK" (Honest Mark) system ensures a uniform and comprehensive approach to this.
System advantages:
- Maximum transparency for regulatory authorities.
- Consumers receive complete product information and assurance of its quality and authenticity.
- Businesses gain a share of the market previously dominated by “shuttle” traders and “gray importers,” as well as relief from price dumping. There will also be better statistics on demand, aiding product strategy decisions.
To benefit from the labeling system, importers need to understand the procedure and sequence of actions, obtain the codes, label the products, complete customs clearance, and avoid liability for violations.
All About "Chestny ZNAK"
This is a unified system for product labeling and traceability, which applies to the production and sale (including import) of the following products:
- Fur products
- Tobacco and tobacco products
- Medicines
- Footwear
- Photographic goods
- Perfumes
- Tires
- Light industry goods (from 01.01.2021)
When is the product labeled during import?
Either abroad or at specialized warehouses in the EAEU, or at customs warehouses in Russia. Labeling is applied to the product or its packaging. For large shipments, an aggregate code (including the data for all identification marks in the package) is used.
If an unlabeled product enters Russia, it must first be placed under customs transit, then at a customs warehouse for labeling, and only then declared for domestic consumption.
The customs declaration must specify control and identification mark information, which is matched against operator data. On successful verification, the product is released for sale.
Not all customs offices are ready to accept products for labeling due to low capacity and lack of required equipment.
Failure to follow labeling procedures incurs liability. Fines (per Article 15.12 of the Administrative Offenses Code) can be up to 300,000 rubles for legal entities.
What changes on 01.01.2021?
Light industry goods now require labeling:
- Leather and faux leather clothing
- Men’s outerwear
- Women’s outerwear
- Women’s blouses
- Home textiles
Until February 1, unsold goods can be stored without labeling, but only in warehouses. To place goods on store shelves, appropriate codes must be added. From February 1 onward, storing unlabeled products is illegal, with penalties for entrepreneurs.
Labeling requirements across the EAEU
Currently, each union country sets its own labeling rules, but it's logical that a single standard will eventually emerge—currently being developed in Russia. Russia's large market and the aim of the union to minimize barriers and unify control standards support this. Unified labeling will encourage healthy trade growth and eliminate gray imports.
In current practice, Belarus has already announced readiness to join Russia in a joint system for tracking and labeling certain goods to curb counterfeit and low-quality imports. In Kyrgyzstan and Kazakhstan, many carriers refuse to accept unlabelled goods, understanding the risks. If incorrectly labeled, products are subject to mobile customs control; this results in vehicle removal from the supply chain during investigations, downtime and lost income, as well as the seizure and destruction of the importer’s goods.
It's more effective to set up labeling and logistics correctly from the start, using ready-made solutions, rather than fighting the system.
Atlas LLC offers a turnkey solution for your business, from obtaining marking codes to decommissioning goods from the warehouse or retail outlet. You can act quickly, clearly, and confidently.
Advantages of working with Atlas LLC:
Automation of labeling, inventory, and decommissioning processes, provided through:
- Three-level software integration with 1C system:
- Data upload for code generation;
- Filling in primary documents with identification marks;
- Comprehensive accounting and reliable reporting for labeled goods;
- Automation of accounting and sorting, enabling optimized logistics:
- Aggregating goods into transport packages, preserving labeling data;
- Assembling boxes via mobile application;
- Box-level shipment controls;
- Streamlined consignment preparation for marketplaces;
- Synchronization of labeling equipment with the 1C system:
- Data terminals at the warehouse—acceptance, decommission, stock control;
- POS equipment ensuring accurate documentation for product decommissioning and data transfer to regulators.
We are ready to organize your logistics, provide customs clearance, and arrange delivery of goods from abroad using any mode of transport, including multimodal shipments.
Importer’s Steps for Product Labeling:
- Prepare for work in the "Chestny ZNAK" system.
- Generate DATA MATRIX labeling codes.
- Label the goods.
- Enter goods into the "Chestny ZNAK" system.
- Define decommissioning procedures.
- Label inventory stock.
- Set rules for transfer between participants (sale, commission, agency, etc.).
Wishing you successful solutions, profitable deals—and don’t let changing market conditions limit your potential.
Atlas LLC is a reliable partner for importers.