Another Traceability System for Russia… But No Product Marking Required

In July, Russia’s new National Product Traceability System (NPTS) transitioned from being experimental and voluntary, to a mandatory scheme for businesses dealing in certain types of products.

The new scheme was implemented alongside the already existing Chestny ZNAK (‘honest mark’) product traceability system, introduced in 2019. However, the two systems are completely independent, non.interchangeable, and noticeably different in terms of operating principles and scope.

For a start, the Chestny ZNAK scheme is coordinated by Russia’s Ministry of Industry and Trade, as a tool for combating widespread counterfeiting of consumer products in the country.

NPTS, on the other hand, is a programme managed by the Federal Tax Service for ensuring the collection of VAT and other tax and customs payments on specific imported goods. It forms part of a supranational agreement between members of the Eurasian Economic Union (EAEU) – namely Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia – to implement a traceability mechanism for goods imported into the EAEU customs territory. NPTS is therefore at various stages of implementation in the other member countries.