Deputy Minister of Industry and Trade of the Russian Federation Viktor Yevtukhov and the first deputy head of the Federal Customs Service of Russia Ruslan Davydov inspected the trade pavilions with fur products that lacked control identification marks (PPE).

During the next inspection of the goods of the Moscow Customs, illegal trade in foreign-made fur products was suppressed. More than 2,400 fur products were seized in a large shopping center in the east of the capital. There were no control identification marks on the products, which means that the goods were imported into Russia and sold illegally.The absence of labeling on the product allowed sellers not only to avoid paying customs duties and taxes, but also to significantly inflate the prices of fur products.

An Italian label is glued to a cheap Chinese product, and this fur coat will be sold for two hundred thousand rubles, although the actual overhead costs are ten times less. Mandatory labeling is the chipping of each fur product. The buyer can install a special program on his smartphone and get all the information about the product he likes. A damaged chip or a mismatch of product information read by a smartphone indicates an attempt at falsification.

Ruslan Davydov,First Deputy Head of the Federal Customs Service of Russia

According to statistics from Rosstat and the Federal Customs Service of Russia, before the start of the pilot project on labeling of natural fur products, the turnover of fur products for the whole of 2015 was about 300 thousand units, retail sales, according to marketing research, were estimated at 8.5 billion rubles, and the forecast indicators of industry associations for 2016 the number of goods on the market amounted to 2.5 million units.

"The pilot project on the labeling of natural fur products since its introduction, on August 12, 2016, has proved to be the most effective tool for countering illegal trafficking in industrial products."

Viktor Yevtukhov, Deputy Minister of Industry and Trade of the Russian Federation

As notesViktor Yevtukhov, more than 20% of the participants in the pilot project have legalized their business, since they had not previously submitted reports to the tax authorities. For business, the labeling system is a progress in automation of reporting and logistics. The system makes it possible to increase business efficiency due to greater availability of information, as well as optimize costs through optimal planning of working capital and production processes with minimal changes in business processes in logistics. In addition, manufacturers can protect their own brands from reputational risks associated with counterfeit products, as well as increase the transparency of interaction with their own contractors.

According to Ruslan Davydov, the institute of labeling of goods is one of the elements of the national traceability system, which will allow linking into a single chain all operations with goods from importation into the customs territory of the EAEU to sale to the end consumer.

Source: Federal Customs Service