Experts assessed the effect of abandoning paper labeling of tobacco

After the introduction of digital labeling requirements for tobacco products, manufacturers received a more convenient and transparent tracking mechanism for their products, and tax authorities were able to simplify administration processes. At the same time, the transition period is accompanied by certain challenges that require attention, experts say.

"The transition to digital labeling is not only about simplifying administration, but also about strengthening the competitiveness of bona fide manufacturers. It is important to understand that the illegal segment of the tobacco market today seriously undermines budget revenues and honest business. Digital labeling, due to its security and complexity of forgery, minimizes these risks," said Vladlen Maksimov, President of the Small Format Trade Association.

Igor Stroganov, Associate Professor of the Department of Strategic and International Management at the HSE Graduate School of Business, PhD in Economics, agrees that the introduction of digital codes reduces the likelihood of fraud, since every movement of goods is recorded in a single system.

"This is convenient for everyone: manufacturers, suppliers and sellers receive a convenient tool for tracking goods, and consumers receive an additional quality guarantee. This step will increase the level of legal protection of bona fide market participants, however, one should not forget about the existing difficulties in coordinating the data of the "Fair Sign" between the EAEU members, which require additional study," the expert emphasized.

Vladlen Maksimov also fears that the share of the shadow market may increase during the transition period if the regulatory authorities do not ensure an adequate level of supervision. In his opinion, it is important not only to monitor compliance with the new requirements, but also to actively inform consumers about the signs of product legality. "It should be borne in mind that the new labeling format requires a higher culture of consumption: buyers should know how to verify the authenticity of goods through mobile applications," he said.

A new format for labeling tobacco products has been in effect in Russia since September last year. The main criterion of legality was the two-dimensional digital code of the Honest Sign system, information about which is recorded in the State Information System for Monitoring Goods (GIS MT). The gradual abandonment of paper special stamps should be completed by July 2025, when digital labeling will become the only acceptable way to confirm the legality of products.

According to experts, the process of adaptation to new requirements will continue in the coming months, while government agencies will focus on eliminating possible risks and improving control effectiveness.