The goal is maximum: to eliminate the smuggling of shoes on the Russian market and not to strangle small businesses

As the Shoes Report wrote earlier, from 1 on July 2018 of the year, a pilot project on marking shoes with identification means (hereinafter - SI) was launched, which will last until 30 on June 2019 of the year. The shoe labeling system will allow the Ministry of Industry and Trade of the Russian Federation to ensure absolute “transparency” of the business, that is, to track the movement of each unit of goods throughout the entire life cycle in Russia - from the manufacturer or importer to the retail consumer. The operator and coordinator of the pilot project was chosen to be CRPT, its task is to develop a mechanism that will allow businesses to implement and use the marking system in the enterprise in the most simple and convenient way.

According to the Federal State Statistics Service, for the 2017 year, the share of footwear imports in Russia amounted to about 80%. If we talk about the benefits of introducing labeling on shoes, this is a significant reduction in unfair competition and the elimination of smuggling. For the retail buyer, the mandatory labeling of goods will guarantee the declared quality and origin of shoes. Today, the main attention of experts is focused on minimizing the negative consequences of such an innovation.

What awaits us in the future:

• Firstly, the MDCT provides a free SI release only as part of a pilot project. From July 1 to 2019, the cost of issuing and re-issuing each SI will be 0,5 rubles.

• secondly, the business will need to buy equipment (scanners, printers) and the media on which the label will be printed.

• thirdly, the business will need to refine software and accounting systems, train staff.

• fourthly, if the shoes are purchased abroad, the importer must ensure that SI is applied to each product box, taking into account errors and re-grading due to the fault of the manufacturer.

As practice shows, most Chinese and part of European factories have some difficulties with the application of codes. This imposes on the importer the need to label the goods in specialized logistics centers.

Step-by-step instructions on how to apply a barcode:

1. A trade participant registers in the GS1 system a complete list of goods that are planned for import or will be produced on the territory of the Russian Federation.

2. After that, he appeals to the CRPT for the release of SI.

3. SI is generated on the basis of GTIN, serial number and TNVED (Commodity Nomenclature of Foreign Economic Activity).

4. As a result, a data set is generated in the DataMatrix format and a verification code. The verification code is stored only in the MDG database.

5. The barcode is printed and applied to the packaging.

The generation speed of one SI is from a split second to 15 minutes, depending on the load on the equipment. Received SIs are not limited in terms of use and can be transmitted by any means of communication, the only condition is the readability of the code after it is applied to the packaging.

Regarding printing and applying the identification number on each box, the most efficient approach is for the manufacturer to embed the identification number in DataMatrix format directly into the standard label. However, many foreign manufacturers will be unable to implement this requirement for their Russian importers for various reasons. Smartlines is ready to offer a turnkey solution. Given that the government will consistently implement anti-counterfeiting policies, the footwear industry will have to accept these new realities in the summer of 2019.