The "Honest Label" CRPT is a system for electronic tagging and tracking of goods information launched by the government of the Russian Federation, officially in operation since 2019. The system uploads product data to the Federal Tax Service and Quality Supervision Department to assist in taxation and product quality regulation.
Tobacco products were among the first goods included in this system. Prior to the introduction of labels, the illegal tobacco market in Russia was rapidly expanding. However, since the implementation of labels, it has been steadily decreasing year by year. By 2022, the illegal market share had decreased by a quarter, falling from 15.6% in 2019 to 11.5% in 2021.
Honest Labels on Products/Image Source: YANDEX
According to the data from the Russian Ministry of Industry and Trade, the effectiveness of market control and product supervision enforcement has significantly improved due to "honest labeling." In the first quarter of 2022, the number of illegal tobacco products seized was 11.1 million packs, a 72.5% increase compared to a year ago. At the same time, the number of legally registered tobacco sales outlets increased by 29%.
Currently, the system has implemented the issuance of electronic tags for tobacco products, certain pharmaceutical products, shoes, clothing, cameras, tires, and perfumes. In the future, electronic tags will be extended to all production fields, from bicycles and household chemicals to pipelines and industrial cables, among other industries.
Starting on December 1st, 2022, all electronic cigarette products will be required to have "honest labeling" and products without proper labeling will be prohibited from being sold on the market.
Currently, the illegal distribution of electronic cigarettes is rampant in the Russian market, and the government regulatory agencies have been lacking effective means to regulate the market. The Ministry of Finance has repeatedly stated that it plans to increase the tax budget for electronic cigarette products by 2023, and tighter regulation is the trend.
The mandatory implementation of "honest labeling" will impact the illegal circulation market. Incomplete statistics indicate that less than half of the electronic cigarette products on the market have been labeled. The budget proposal for regulating electronic cigarettes in the Russian Duma Parliament shows that the legalization of the electronic cigarette market will increase government tax revenue by over 100 billion rubles. Building on their success in regulating the traditional tobacco market, the Russian federal government will continue to push for the mandatory inclusion of electronic cigarette products in "honest labeling.
2FIRSTS will continue to bring you related news on 'honest labeling'.
1) This article is solely intended for internal industry communication and discussion and does not serve as an endorsement or recommendation for any brand or product. 2) Smoking is harmful to one's health. Minors are prohibited from reading this article.
This article is an original creation of Shenzhen 2FIRSTS Technology Co., Ltd, and its copyright and permission to use belongs to the company. Any unauthorized reproduction, reprinting, or other infringement of the company's copyright by any individual or entity is strictly prohibited. The company reserves the right to take legal action against violators.
Disclaimer
This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.
Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.
The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.
This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.
Copyright Notice
This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.
No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.
For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.
AI-Assisted Translation and Editing Notice
Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.
Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.
