All articles

Empowering Transparency: PMP Group’s Experience with Electronic Labeling Systems

The adoption of an electronic excise tax stamp in Ukraine marks a significant stride towards establishing a transparent and efficient system for regulating the circulation of excise goods. After all, this opens up many opportunities for efficient and transparent economic processes.

The transition towards electronic labeling of excise goods yields numerous benefits for businesses. This strategic move ensures the growth of legitimate commerce, fosters confidence in the Ukrainian market, and instills effective oversight of excise goods’ circulation. The introduction of an electronic excise tax stamp breathes new life into the country’s economic progress, becoming a pivotal tool in combating illicit activities within the excise goods trade.

In Great Britain, for example, the introduction of an electronic excise tax stamp on alcoholic beverages and tobacco products contributed to an increase in government revenues. And in Spain, it contributed to the reduction of smuggling and the growth of legal sales. Similar processes are taking place in many countries because electronic solutions always help the economy to function more efficiently and transparently.

At PMP Group, a leading high-tech IT company, we possess valuable expertise in electronic labeling systems. Even before the presidential endorsement of this law, PMPG pioneered the development of the innovative Track & Trace System, which exemplifies how technology can bolster socially vital initiatives and propel the Ukrainian market towards legitimacy.

The Ministry of Digital Transformation of Ukraine, in collaboration with USAID partners, sought PM Partners Group’s assistance in creating the Track & Trace system that would help implement an electronic excise tax stamp. The task was extremely important, since the country’s ability to control and monitor the circulation of excise goods, reduce smuggling and illegal trade, and ensure the growth of budget revenues potentially depended on the success of the project.

Being at the forefront of social initiatives, PMP Group readily embraced this venture. The Track & Trace system’s development transcended a mere electronic excise tax stamp implementation; it constituted a transformative leap in controlling and managing the circulation of excise goods. Driven by an unwavering commitment to top-notch quality and efficacy, the PMP Group team devised a unique ecosystem where cargo movements undergo digitization and transparent management through supply chains, effectively thwarting counterfeiting and illicit activities.

The Track & Trace System envisioned becoming a nationwide identification platform for goods and objects, not merely restricted to the electronic excise tax stamp, but also encompassing customs control, tax tracking, licensing, and permitting at every stage of circulation. This groundbreaking system promised to mitigate supply risks and optimize inventory across all tiers of the supply chain, fostering direct communication with customers.

Despite the setback caused by Russia’s full-scale military invasion of Ukraine, impeding the complete implementation of Track & Trace, PMP Group’s pioneering efforts provided a tangible testament to the necessity of introducing an electronic excise tax stamp. The project exemplifies how technology can emerge as a potent instrument in establishing a transparent and lawful market, bolstering the Ukrainian economy, and fortifying the rule of law. We believe that the use of the Track & Trace system will be an important asset for the formation of a sustainable and prosperous society.