On August 9th, in Moscow, according to a draft resolution released by the Russian Federation Ministry of Industry and Trade, Russia will implement mandatory digital labeling for electronic cigarettes and liquids starting on November 1st.
According to explanatory notes provided by the project, the government and the operator of the electronic marking system, CRPT, and the operator of the digital marking system "Honest Label," have received a large number of requests from industry business circles and stakeholders in nicotine products to complete related experiments as soon as possible. The company stated that the industry has requested the introduction of mandatory labeling starting from November 1, 2022, to combat the high market share of counterfeit nicotine products.
Given the above situation, the introduction of mandatory labeling through liquid recognition is viewed as the only effective method to quickly identify and combat illegal trafficking of these products. The Russian Ministry of Industry and Trade believes that supporting the early completion of experiments and the introduction of mandatory labeling through product recognition starting November 1st, 2022, is advisable, according to the draft.
Meanwhile, starting from April 2023, the wholesale and retail industries will be obligated to transmit information about the sale of marked products to the system.
The organization also referred to data from the research company Euromonitor International, according to which last year Russia sold over 67 million electronic cigarettes and 9,000 to 10,000 liters of e-liquid, totaling 35.5 billion rubles. At the same time, analysts estimate that the budget loss due to unpaid consumption taxes on these types of products is $2.85 billion.
CRPT states that the introduction of labels will rid the market of illegal products, leading to increased revenue and consumer confidence in product quality. Furthermore, according to industry representatives, market participants are prepared to implement the labels in this field.
Since 2019, Russia has launched a digital labeling system called "Honest Mark" (operated by CRPT, an advanced technology development center). Currently, dairy products and mineral water are being labeled during production, while tobacco, pharmaceuticals, tires, perfume, light industrial products, shoes, fur coats, and photographic equipment have also been labeled.
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