Economic Integration Department of NCE RK "Atameken" explained to domestic businessmen the procedure of introduction of labeling for fur products

As it is known, since 12 August of the current year on the territory of the EAEU will be officially launched the system of labeling of fur products. It is planned to introduce this system in Kazakhstan in January 2017.

Labeling of fur products - is application of control (identification) signs (CIS) on goods, the aim of which is to support healthy competition and the fight against "gray" businesses.

In this regard, NCE in order to clarify the issue held a "round table", at which domestic entrepreneurs working in the field of fur, had the opportunity to ask some important questions. In particular, businesses that sell fur products, wondered what should be done for labeling, what does entry into GS1 Association give, how to carry out the order GTIN numbers, how to use labeling system, etc.

In this regard, the Department of Economic Integration of NCE RK "Atameken" considers it is necessary to clarify further some aspects related to the labeling of fur products.

Labeling of fur products applies only to business activities related to the production, importation and sale of fur products.

Requirements for the labeling of products are used in the following cases:

• when importing goods from third countries;
• manufacture (sewing) of fur products in the Republic of Kazakhstan;
• cross-border trade (import from / export to EAEU Member States);
• in commission trade;
• labeling of leftovers of products;
• CIS for goods returned (exchanged) by customers;
• CIS for goods, on which CIS is damaged or lost.

We address entrepreneurs’ attention that since the launch of the labeling on the territory of Kazakhstan, only fur products with applied control characters can be in the turnover.

As it is known, labeling was launched in Russia and Belarus. At the same time, Russian entrepreneurs are faced with a shortage of control marks, as JSC "Goznak" responsible for their production does not have time to make the necessary amount in a timely manner. As a result, entrepreneurs, who failed to get CIS for their unsold goods, were forced to suspend trading.

In order to avoid the development of a similar situation in Kazakhstan, NCE RK "Atameken" is currently working to clarify the amount of unsold goods (leftovers of goods) for the settlement with the Banknote Factory of the National Bank of Kazakhstan the issue of manufacturing of the required number of CISs.

In this regard, we urge entrepreneurs to conduct an inventory of the remnants of fur products, as unsold products (leftovers) are subject to labeling in the first place, and provide information on the number of unsold goods to the regional chambers of entrepreneurs, or directly to the DEI NCE RK "Atameken” (dei@palata.kz ).

CISs on unsold goods must be ordered within sixty calendar days from the start of functioning of the labeling system, and the filling in of data from the customs declaration for the goods is not compulsory.

In addition, in order to avoid other problematic situations, as well as to clarify the labeling algorithm to entrepreneurs, the Department of Economic Integration of NCE RK "Atameken" has prepared an information presentation on the basic requirements for the labeling of fur products.

The algorithm of actions of an entrepreneur during the labeling of fur products consists of the following stages:

1. Registration at the Association GS1 Kazakhstan;
2. Adding of products to the GS1 system and obtaining a GTIN;
3. Registration in the information system of labeling (hereinafter – IS labeling);
4.  Application for the personalization of control signs in IS Labeling;
5. Getting personalized control signs;
6. Application of control signs on the fur goods.

We remind you that the entrepreneur can put for sale fur products only after attachment of control signs to them.

1. With regard to joining the Association GS1 Kazakhstan

Association GS1 Kazakhstan – is a voluntary non-profit association, which is the regional office of the organization GS1 International, represented in 108 countries worldwide.

Entrepreneurs need to join the Association for getting a global identification number of a trade item Global Trade Item Number (hereinafter - GTIN) on a product that will allow to order control signs in IS Labeling.

Following the talks, NCE RK "Atameken" and the Association GS1 Kazakhstan established the following amounts of payment:

The annual membership fee for 2017 is as follows: LLP – 50 USD, Individual Entrepreneur - 25 USD.

The procedure of joining the Association and the order of GTIN number can be found on slides 6-8, in the presentation of GS1 Association or on the website (www.gs1.kz), where there is a video with a detailed explanation of the registration and ordering the GTIN.

DEI NCE RK "Atameken" reminds us that without a GTIN it is impossible to carry out the order of signs in the labeling system, and therefore it is very important to join the Association prior to the start of labeling of goods on the territory of Kazakhstan.

2. With respect to the information labeling system

Since the launch of IS Labeling, entrepreneurs will have to register in it. To do this you need: EDS (at Centers for Servicing Population), to specify the type of activity (importer, producer, seller), telephone number, e-mail address. Access to IS Labeling will be carried out through the website on the Internet after the launch of the program, which is scheduled for January 2017.

After registration in the information system, the entrepreneur will be able to order control signs.

• First of all, an entrepreneur should apply for obtaining control marks on unsold products (leftovers) (if any remain) within 60 days since the launch of the system. The information that must be listed in the application is reflected on slide number 15.
• When sending the application by the importer - a person who carries out the import of fur products from third countries (non EU countries), fills in the information, which is specified in slide number 10.

The importer must submit a request no later than two working days after the end of the customs procedures (customs clearance and release of goods).

• Manufacturers of fur products must also be ordered with control (identification) signs on manufactured goods. The application form can be found on slide number 12.

In this case the manufacturer is required to submit an application for getting signs within the next working day from the date of recognition (reflection) of goods in accounting as a finished product.

In commission trade of goods on the basis of concluded commission contracts with individuals, the entrepreneur (seller commission) should implement labeling of fur products. Before exhibition for sale, a salesman prepares an application for getting signs in accordance with the slide number 14. Representatives of the domestic business

In addition, we pay your attention that entrepreneurs should input information in the information system of labeling:

- Cross-border trade.

In the case of acquisition of goods within the framework of cross-border trade on the territory of the Union, entrepreneurs must fill in information in the information system of labeling, referred to in slide number 17.

In the framework of cross-border trade (EAEC) only labeled goods are allowed into circulation.

- Sale / purchase (resale) of goods

Entrepreneurs, engaged in retail trade of goods, enter information to the system of control (identification) signs, attached to the goods, sold and marketed under the trade (slide number 18).

- Refund (Exchange) of Products

When returning (exchanging) goods with a control sign in the period established by law (14 days), businesses needs to submit the information mentioned in slide number 19.

In the case of return of good with a damaged / destroyed sign or a period longer than specified in the legislation, the goods shall be subject to re-labeling.

-  damage and loss of goods or control sign

Upon damage and loss of goods, an entrepreneur inputs information into the system, that the goods are lost.

In case of damage and loss of control (identification) signs, an entrepreneur should again label the goods (see slide number 20).

We remind you may contact by telephone the Department of Economic Integration for clarification of the labeling of fur products: 8 7172 91 93 73.

The step by step action algorithm of labeling for entrepreneurs can be found here.

The presentation "On cooperation with the Association GS1 Kazakhstan" can be found here.