Preparing for Chestny Znak Product Labeling: Where Should Businesses Start?

Artur Baigazakov 1C Analyst at Cinimex The Chestny Znak system has already become mandatory for many product categories. In practice, companies that prepare their processes in advance tend to have a much smoother launch than those that simply connect to the system at the last minute. The labeling system is based on a Data Matrix code that allows products to be tracked from production or import through to sale. Manufacturers, importers, wholesalers, and retailers — all participants in the supply chain — are required to work with the system.

The labeling system is based on a Data Matrix code that allows products to be tracked from production or import through to sale. Manufacturers, importers, wholesalers, and retailers — all participants in the supply chain — are required to work with the system.

It is better to start preparing for labeling not by purchasing a printer, but by analyzing the entire product flow: where Data Matrix codes should be applied, who will be responsible for production, warehousing, and shipment, how quality control and document exchange will be organized, and, finally, how products will be placed into circulation.

For manufacturers and importers, the mandatory setup includes a Chestny Znak personal account, interaction with GS1 Rus, and work with the National Catalog. A GTIN is required to order marking codes, while manufacturers and importers working with Russian GTIN ranges need to register with GS1 Rus. Product cards in the National Catalog are primarily created by manufacturers and importers, as they are responsible for providing the product information required for placing goods into circulation.

Another important step is choosing how the code will be applied: by printing directly on the packaging, direct marking, or labeling. In practice, labeling is often the most flexible starting option for small and medium-sized manufacturers, while large production facilities with continuous production lines may benefit from direct marking, provided that packaging material, surface quality, and code readability requirements are taken into account in advance.

The most effective approach is to first design the process and only then select the necessary equipment and software. This ensures that product labeling becomes part of the company's operating model rather than a constant source of emergency fixes and operational disruptions.

Day-to-Day Operations in Chestny Znak: From Ordering Codes to Removing Products from Circulation

After the preparation stage, business operations in the Chestny Znak system follow a straightforward logic: a product receives a code, undergoes the required operations in the system, is transferred to the next participant in the supply chain, and is ultimately removed from circulation.

Specific requirements may vary depending on the product category, but the basic sequence of operations in Chestny Znak is generally similar for businesses.

Ordering labeling codes

First, the participant orders labeling codes for the required products. In practice, this step should be linked to the production or supply plan to avoid code shortages or unnecessary excess codes.

Applying codes and submitting the application report

Once the codes have been received, they are applied to the product or packaging, after which a corresponding application report is submitted. Until this report is submitted, the codes remain in the “emitted” status and cannot proceed to the next stage.

Placing products into circulation

Once the codes have been applied and the relevant information has been submitted to the system, the products are placed into circulation. This means that the labeled products officially enter the legal supply chain and can continue moving through the market.

Aggregation

If a company works with boxes and pallets, the next step may be aggregation — combining individual product codes into transport packages. In practice, this is one of the most useful stages because it speeds up receiving and shipping and eliminates the need to scan every individual product.

Transferring products via electronic document management

When labeled products are transferred to another participant in the supply chain, the relevant information must be transmitted through electronic document management. The Universal Transfer Document (UPD) contains the labeling codes, and once the document is signed, the system records the transfer of ownership of the products and their associated codes.

Removing products from circulation

The final step is removing the product from circulation. This may occur as a result of a retail sale, use in the production of other goods, use for the company's own needs, loss, damage, or another legally permitted reason.

It is important to record the reason for removal correctly. Otherwise, the codes will continue to appear as active in the system and may create discrepancies in inventory records.

Working with equipment

Operations involving code application, reporting, placing products into circulation, and aggregation are often performed using data collection terminals and handheld barcode scanners. This is particularly important where there are high volumes of goods and where the cost of an error in the warehouse or production process is significant.

This is why day-to-day operations in Chestny Znak require more than a series of individual actions — they require a well-structured operational framework.

In our experience, the most sustainable processes are built by companies that formalize the entire workflow of a supply-chain participant from the outset and integrate it into their existing accounting environment, primarily 1C.

As a result, ordering codes, applying labels, placing products into circulation, transferring them through electronic document management, and removing them from circulation become not a collection of disconnected operations, but part of a unified accounting and management system.