Compliance with the Chestny ZNAK System for Exports to the Russian Market

What is Chestny ZNAK

The Chestny ZNAK (Честный ЗНАК = Honest MARK) system is a product track & trace system implemented by the Russian government to ensure the authenticity and quality of products.

How it Works

1. Products are marked with a unique digital code
   The Chestny ZNAK system assigns a unique digital code (Data Matrix or another form of marking) to each product. The manufacturer or importer of the products to the Russian market marks each product’s packaging with this code.
2. The product’s journey is recorded at each stage of the supply chain
   The unique digital code acts as a passport that cannot be lost or falsified. It allows for the tracking of the product’s entire journey from the factory to the consumer at each stage of the supply chain.
3. Products reach the store and are placed on shelves
   The system records the transportation of products at all stages of the supply chain, including their placement on store shelves, eliminating the possibility of counterfeit products being introduced.
4. Products are sold at the checkout, and the system is updated
   When products are sold through the electronic checkout, the system is automatically updated, preventing the sale of counterfeit products. The tracking of product movements at each stage prevents the appearance of counterfeit goods and the re-entering of products into the market, including those with expired shelf life.
5. All product information is available to consumers
   The Chestny ZNAK mobile app allows consumers to easily check all information about a product and verify its legitimacy, ensuring they only purchase genuine and quality products.

Who is Affected

Compliance with the Chestny ZNAK system applies to companies, manufacturers, and traders exporting products to Russia, such as pharmaceuticals, cosmetics, beverages (e.g., bottled waters, beers, etc.), food products (e.g., dairy, dietary supplements, etc.), tobacco products, chemicals (e.g., tires), etc.

Initially, the use of the system was mandatory for specific product categories but is gradually being extended to all products circulating in the Russian market

Benefits of Using it

Consumers gain more trust when purchasing genuine, high-quality products, and their health and safety are protected. The marking system also provides a tool for public control and the protection of consumer rights.

Businesses increase revenue and competitive advantage as customer trust and loyalty grow. They also optimize processes and reduce costs by gaining access to real-time data on the path of their products within the supply chain, easing product tracking and management, and analyzing consumer trends.

The state benefits from a reduction in the black market and an increase in labor productivity. Additionally, it boosts tax revenues and saves on government spending for market control.

Theodorou Group Solutions for Compliance with Chestny ZNAK

The Theodorou Group provides solutions for the coding, marking, and tracking of products (individual items, boxes, pallets) in accordance with Russian legislation requirements to ensure compliance with the Chestny ZNAK system’s specifications.

Specifically, the Theodorou Group offers:

1. Industrial coding and marking systems for directly printing unique codes onto product packaging (inkjet/laser/TTO printing) or printing unique codes onto labels and applying them to product packaging (print & apply). With their expertise, they help companies integrate Data Matrix codes into their products, ensuring compliance with Chestny ZNAK.
2. Industrial product tracking and traceability systems that integrate Data Matrix codes, allowing companies to track their products at every stage from production to the final consumer. This ensures full compliance with the Chestny ZNAK system, providing transparency and protection against counterfeit products.
3. Software solutions for integrating Data Matrix codes into companies’ internal processes, along with the development of customized applications for managing and using codes on customer platforms.
4. Training and technical support services for the smooth and effective implementation of the Chestny ZNAK system. Theodorou Group customers can benefit from their expertise and services to ensure seamless integration of Data Matrix codes into business processes.
5. Consulting services to ensure compliance with the Chestny ZNAK system and Russian regulatory requirements.

With its expertise in industrial coding and marking, as well as modern industrial automation and robotics solutions, the Theodorou Group can help businesses properly prepare their production and processes to ensure compliance with the Chestny ZNAK system, facilitating the entry and distribution of their products in the Russian market.