Chestny ZNAK: Why is compliance an opportunity for export growth?
5 min read
Russia’s new digital transformation, Chestny ZNAK, is fundamentally changing the way the market works in Russia, as well as in the countries that export products to it. Chestny ZNAK enforces strict digital traceability and brings new challenges for businesses that intend to export.
Many suppliers may face difficulties in timely compliance and risk being excluded from the market.
However, organized businesses do not see change as an obstacle, but as a strategic opportunity.
What is Chestny ZNAK and why does it bring so many changes to product exports?
Chestny ZNAK is the Russian national traceability system. In fact, it is one of the most innovative systems for tracking, tracing, and locating products in a supply chain using DataMatrix codes. Its goal is to ensure the authenticity of products, protect consumers from counterfeiting, and enhance transparency in the supply chain.
Among other things, this system requires all companies exporting products to the Russian market to register them with a unique digital identity that allows for tracking at every stage in the distribution chain.
What challenges do businesses face?
Complying with the rules imposed by Chestny ZNAK is not a simple matter, as many suppliers do not have the know-how to meet the new requirements. As a result, many companies, regardless of whether they are established in the field or not, risk being excluded from the market, for five main reasons.
Lack of digital infrastructure
Many businesses either use older ERP systems or do not use them at all, and choose to record in Excel or even in handwritten files. If they do not use a modern ERP system then it is impossible to create and manage the DataMatrix codes that Chestny ZNAK requires.
Inability to integrate with the Russian system
Chestny ZNAK requires constant data exchange between the company and the Russian state platform. If the company does not have the appropriate software or a reliable technology partner, it is almost impossible to have proper communication, successful registration and possibly order cancellations and possible legal consequences.
Lack of internal expertise
Many times, businesses have the technology, but employees lack the expertise and familiarity with new tools, making it impossible to implement the required processes.
Delay in adopting solutions
Bureaucracy, procrastination, and fear of cost lead many businesses to wait until the last minute to take action. However, deadlines are tight and there is a risk of losing customers, canceling contracts, and long-term damage to the company’s export reputation.
Insufficient cooperation with external providers
Many businesses trust providers, who, however, lack expertise in the Russian market or the Chestny ZNAK system in particular, resulting in errors and delays.
The opportunity for all businesses
All challenges for some are an obstacle, while for others an opportunity! Mandatory compliance with the Chestny ZNAK is not just a bureaucratic procedure, it is a filter that separates ready and technologically mature businesses from those that struggle to adapt. As many companies will be excluded from the Russian market due to lack of compliance, a gap is created. A gap that can be filled by businesses that operate flexibly, invest in modern ERP systems, understand the importance of traceability and real-time data monitoring, and are willing to evolve and integrate new tools into the way they work.
Which companies can seize the opportunity to comply with Chestny ZNAK?
The companies that must, for the time being, comply with the rules of Chestny ZNAK and have the greatest opportunity for growth are those operating in the food, beverage, cosmetics and pharmaceutical sectors.
At the same time, many companies that want to start exporting to the Russian market have the opportunity to build Chestny ZNAK compliance procedures from the very beginning without making any transformation in the future.
How can Hubin help with Chestny ZNAK compliance?
For businesses that decide to comply with Chestny ZNAK, two things are essential. The first is a modern ERP system and the second is a technology partner that understands the specifications and can offer immediately applicable solutions.
Hubin has both! A modern ERP platform, specifically designed to meet the needs of digital traceability, interconnection with external authorities and export procedures, is ideal for businesses that want to comply and stand out.
Hubin’s ERP platform enables interconnection with the state-owned Chestny ZNAK platform, thereby creating unique DataMatrix codes, automatically sending the required information to the Russian platform, as well as monitoring the progress of each product from its production to its arrival on the shelf.
At the same time, it offers real-time traceability, limiting errors and offering transparency and reliability. Hubin also undertakes guidance based on the needs of the business, adapting solutions to each professional while providing ongoing training.
Of course, Hubin and its ERP platform are flexible for small and medium-sized businesses!
Compliance with Chestny ZNAK is not just an obligation, but an opportunity for every business to stand out and expand, but also to become more competitive in a demanding international market.
All that businesses that decide to take this step need is the right technology and the right partners, so that the transition becomes simple, targeted and beneficial!
Chestny ZNAK Compliance FAQ
Which businesses are required to comply with Chestny ZNAK?
Currently, compliance is required for products such as food, beverages, pharmaceuticals and parapharmaceuticals, cosmetics, clothing and footwear, tobacco products, and electronic devices.
However, the list is constantly growing and it is important for every business to monitor developments if they intend to export to the Russian market.
Why should a company comply with the Chestny ZNAK regulation?
Compliance with the Chestny ZNAK is a legal obligation and a strategic opportunity to access a huge market. Many companies are unable to adapt to the new requirements, creating a gap in the market. Thus, companies that will move quickly, purposefully and strategically will have the opportunity to capture market share that others are leaving, build a reputation for reliability in the international market, adapt from the beginning to a model of transparency that other countries are gradually adopting, and utilize technology as a lever for internal improvement and efficiency.
Compliance becomes not only a means of access to the Russian market, but also a springboard for growth.
How complex is the Chestny ZNAK compliance process?
The Chestny ZNAK compliance process involves creating unique DataMatrix codes, connecting to the Russian state platform, and submitting data for each product. Without the right ERP, expertise, and partners, the process can become complex.
What happens when a company does not comply with Chestny ZNAK?
Non-compliance can lead to rejection of products at customs, cancellation of orders and loss of cooperation. In some cases, there may even be sanctions. But beyond the legal issues, the biggest risk is the loss of credibility and market share.
How can Hubin help with Chestny ZNAK compliance?
Hubin offers a modern ERP with the ability to interface with the Chestny ZNAK system. At the same time, it provides guidance, personalized implementation and ongoing support so that every business can meet market requirements without delays or errors.
