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The Authentication Times
Issue 27
TheAuthenticationTimesAugust 2015 | Volume 9 | Issue 27
www.aspaglobal.com
The official newsletter of Authentication Solution Providers’ Association (ASPA)
Tax
Stamp
in
India:
An overview

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The Authentication Times
Issue 27
SMART
BONDING
Business Contact in South Asia
TION ENTERPRISES PVT. LTD.
T +91 9819387220, 9820828832
info@tiongroup.com
www.tiongroup.com
Adhesivesfor Security Systems

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The Authentication Times
Issue 27
Dear Reader,
Welcome to the latest issue of “The Authentication
Times”.
“TAX Stamps have always been an important
authentication solutions used by Government
authorities to curb the illicit trade, protect
consumer and to increase the excise revenue. It
was only 20 years ago; due to the globalization
many countries started using tax stamps for the
first time, especially in the Eastern Europe and
Former Soviet Union. Today across the globe,
81 countries are using approximately 130 billion
cigarette tax stamps and 14 billion alcohol tax
stamps.
In India also, the revolution of first tax stamp was
introduced by Tamilnadu State Excise Department
in early eighties. Today, 22 States (including Union
territories) are using approximately 11 billion tax
stamps per annum. In contrast to globally, all these
tax stamps are for alcohol, excluding cigarettes
industry. The tax stamps were introduced in India
to prevent and minimizing the hooch tragedies,
curbing the menace of duplication, as well as in
increasing the excise revenue collection.
Our current cover story is on “Tax Stamp in
India – An overview”. It also cover global expert
view on “Product security solutions currently
implemented in Turkey”. Apart from these, the
issue also covers industry updates, ASPA and
member news, counterfeit seizure report and
global patents.
If you have any news, contributions, or comments
for the editorial team, please email at info@
aspaglobal.com.
Chander Shekhar Jeena
Editor
In this issue
9
16
Viewpoint
Industry updates
Counterfeit seizure report 17
Global patents 18
Upcoming events 19
News bytes
ASPA News
4
An overview
Tax Stamps
in India

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News Bytes
De La Rue launches the next generation
of identity management solutions
Responding to a changing
dynamic and the evolving
requirements of the Identity
market, De La Rue announces
the launch of DLR Identify™, a
new citizen centric web based
software solution, complemented
by three new physical document
security features and two new
thin film laminates for passport
bio-data page protection.
Unveiled at last month’s Security
Document World conference
and exhibition in London, De
La Rue launched their latest
digital offering, DLR Identify™,
to the market; a web-based
software solution for the secure
management, personalisation
and storage of citizen identity
data.
This new system provides the
functionality needed to underpin
eGovernment and eCitizen
applications, as well as border
and document control solutions.
Built using MIDIS™ technology
to power its personalisation
module, DLR Identify™ allows
governments to record, validate,
retrieve, update, certify and issue
documents to citizens. Modular,
scalable and configurable, DLR
Identify™ is comprised of six core
elements; ID Register / ID Enrol
/ ID Verify / ID Perso / ID Issue
/ ID Control, is fully compliant
to ICAO and ISO requirements,
and delivers integrated reporting
with strong proven security
credentials.
In addition to their new digital
solution, De La Rue launched
a series of physical product
innovations to market as a
direct response to a number of
specifically identified security
threats to the bio-data page
for passports and ePassport
documents:
Skylight™
A specialist, unique and complex
watermarking feature, where
small areas appear lighter and
thinner than their background,
positioned to register across
the sheet. This process has been
developed and patented by De
La Rue to prevent the splitting
of paper, the lifting of the
laminate and its reassembly with
fraudulent data.
Continuous bio-data
page™
A new patented method of book
construction where the bio-data
page continues across the spine
to also form the rear end page of
the book. This technique greatly
hinders the removal of the
biodata page; the prime target
of most fraudulent attempts of
document alteration.
Spectrum™
Spectrum™ is a colour changing
print feature with “movement”
and “on/off” effect using
proven latent image technology
providing a sophisticated
anticopy feature that is resistant
to colour copiers, scanners or
attempted desktop reproduction.
De La Rue also launched two
new thin film holographic
laminate patches, the first
products to market as a result
of their recently announced
partnership with Dai Nippon
Printing Co Ltd for cooperation
on the development of new
anti-counterfeit technologies to
be used in the secure identity
document solutions;
Shield embossed™
holographiclaminateAhigh-gloss
thin film laminate protection
solution created using e-beam
technology to deliver the highest
resolution and definition of
quality. A striking use of complex
3-dimensional models ensures
immediate recognition and
provides a powerful verification
feature.
Shield volume™
holographic laminate Using
Lippmann holographic
technology, SHIELD Volume™
displays a strong monochrome
image with high movement
and exceptional depth with 3D
models that transition in both the
horizontal and vertical directions
and can be easily viewed under
a mix of different lighting
conditions.
A complete communications
campaign entitled “The
Next Generation of Identity
Management Solutions”
including new animations,
interactive presentations, house
book samples, printed materials
& features guides supports this
launch and is to be rolled out over
the coming weeks.
Source: www.delarue.com

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News Bytes
Nepal renewed passport contract
with Oberthur
Loparex to acquire 100% ownership
of India joint venture
The Government of Nepal
has extended the contract
of France-based Oberthur
Technologies to print
machinereadable passports
(MRP) for two years. According
to the decision, the Oberthur
Technologieswillprint2.5million
passports at $4.89 a passport
against the current rate of $3.59.
It will cost an additional NPR
(Nepal Rupees) 332.82 million to
the government.
The Cabinet’s Economic and
Infrastructure Committee has
decided to extend the bid of the
existing printer rather than going
for a fresh tender, citing time
constraint and other logistical
difficulties after the major
earthquakes to meet the deadline
set by the International Civil
Aviation Organization (ICAO).
The French company has printed
4.5 million passports as the
existing agreement, of which 3.5
million have already been issued
to the applicants. Under the new
agreement, Oberthur will have to
install around 50 live enrollment
centres in 7-8 countries that have
higher number of Nepalis. The
companywillhandovertheentire
data to the government after the
completion of the contract in two
years before initiating a fresh
tenderfore-passportorbiometric
passport—a mandatory
provision of the international
civil aviation authority.
Source: www.ekantipur.com
Effective August 1, 2015,
Loparex Group will assume
100% ownership of the India
joint venture company, Kaygee-
Loparex India Private Ltd.
Mike Apperson, Loparex CEO
comments, “We are delighted to
addtheworldclassmanufacturing
capabilities of Kaygee-Loparex
to the global Loparex family. In
addition to the assets, we also
welcome an incredibly talented
anddedicatedgroupofemployees
to our Loparex team, which will
synergize our ability to bring
additional value, not only to our
local India-based customers, but
also to our customers throughout
the world”. Apperson adds,
“The addition of Loparex-India
compliments our unique and
continuing investment strategy
and our long term commitment
to serving the diverse needs of
our global customers”.
Established as a joint venture
in 2001, Kaygee-Loparex is
India’s largest release liner
manufacturer. The state-of-theart
facility, located in Silvassa (near
Mumbai), produces a wide array
of custom-engineered silicone
coated papers and films which
support the diverse release liner
needs of key industries including
medical, tapes, hygiene, labels,
security, Composites and other
industrial markets.
In-house product development,
combined with IMS Certification
(ISO 9001:2008, ISO14001:2004
and OHSAS 18001:2007),
practiced GMP, and robust quality
management methodology
ensure the highest standards of
quality, efficiency, regulatory and
EHS compliance.
Loparex, the leadi-ng global
supplier of release liners, also
has manufacturing, product
development and commercial
operations in the US, Europe,
China and Thailand.
Source: www.loparex.com

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UAE banknotes
with Braille
features on the
way
Researchers demonstrate‘no-ink’
color printing with nanomaterials
The UAE Central Bank is
making efforts to assist the
visually impaired with new
specialised banknotes being put
into circulation.
Notes in denominations of Dh500
and Dh5 have been printed with
distinct tactile features. The
Dh500 note will feature a pair of
three horizontal lines separated
by a recognisable distance and
located in the middle of the right
and left sides of the note.
Apart from these changes, the
overall design of the two notes
will remain the same as those
currently in circulation.
The notes will be dispensed
to banks in accordance with
the Central Bank’s established
procedures for cash withdrawal
and deposit.
The Central Bank issued
instructions last July for anknotes
to be printed using Braille
characters. The move means the
UAE has joined Hong Kong, China
and the Eastern Caribbean
Central Bank in issuing notes
with Braille features. China was
the first nation to use Braille on
banknotes, more than a decade
ago.
When the announcement was
made, Sheikh Abdullah bin Zayed,
the Minister of Foreign Affairs,
tweeted: “I call on the UAE
Central Bank to use Braille script
in banknotes to make it easier
for those without the blessing of
eyesight.”
Source: www.thenational.ae
Missouri S&T researchers
have developed a method to
accurately print high-resolution
images on nanoscale materials.
They used the Missouri S&T
athletic logo to demonstrate the
process.
The method described in
the Scientific Reports article
“Structural color printing based
on plasmonic metasurfaces of
perfect light absorption” involves
the use of thin sandwiches of
nanometer-scale metaldielectric
materialsknownasmetamaterials
that interact with light in ways
not seen in nature.
Figure: The Dh500 note consists of a pair of three horizontal
lines, separated by a recognizable distance, around the middle
of the right and left shorts sides of the note
Figure: Missouri S&T athletic logo to demonstrate the process. At top left is the original logo.
At right are examples of the logo printed at the nanoscale level.
News Bytes

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ASPA Members exhibited at trade forums
Experimenting with the interplay
of white light on sandwichlike
structures, or plasmonic
interfaces, the researchers
developed what they call “a
simple but efficient structural
color printing platform” at the
nanometer-scale level. They
believe the process holds promise
for future applications, including
nanoscale visual arts, security
marking and information storage.
The researchers’ printing surface
consists of a sandwichlike
structure made up of two
thin films of silver separated
by a “spacer” film of silica.
The top layer of silver film is
25 nanometers thick and is
punctured with tiny holes created
by a microfabrication process
known as focused ion beam
milling. The bottom layer of silver
is four times thicker than the top
layer but still minuscule at 100
nanometers. Between the top and
bottom films lies a 45-nanometer
silica dielectric spacer.
The researchers created a
scaled-down template of the
athletic logo and drilled out tiny
perforations on the top layer
of the metamaterial structure.
Under a scanning electron
microscope, the template looks
like a needlepoint pattern of
the logo. The researchers then
beamed light through the holes to
create the logo using no ink – only
the interaction of the materials
and light.
By adjusting the hole size of the
top layer, light at the desired
frequency was beamed into
the material with a perfect
absorption. This allowed
researchers to create different
colors in the reflected light and
thereby accurately reproduce the
S&T athletic logo with nanoscale
color palettes. The researchers
further adjusted the holes to
alter the logo’s official green and
gold color scheme to introduce
four new colors (an orange
ampersand, magenta “S” and “T,”
cyan pickaxe symbol and navy
blue “Missouri”).
“To reproduce a colorful artwork
with our nanoscale color palettes,
we replaced different areas in
the riginal image with different
nanostructures with specified
hole sizes to represent various
visible colors,” says Dr. Xiaodong
Yang, an assistant professor at
Missouri S&T, who leads the
Nanoscale Optics Laboratory
in the university’s mechanical
and aerospace engineering
department. “We chose the
athletic logo to fill that need.”
“Unlike the printing process of an
inkjet or laserjet printer, where
mixed color pigments are used,
there is no color ink used in our
structural printing process – only
different hole sizes on a thin
metallic layer,” says Dr. Jie Gao, an
assistant professor of mechanical
and aerospace engineering at
Missouri S&T and a co-author of
the paper.
In their paper, the authors note
that the process resulted in “pure
colors with high brightness”
with little need for protective
coatings. The researchers believe
the process could lead to “high
performance, pigment-free color
printingandrelevantapplications
such as security marking and
information storage.”
Source: www.news.mst.edu
ASPA members Alpha Lasertek participated at Pharma Pro Pack &
Expo held on May 13 to 15, 2015 at Mumbai Exhibition Centre, India.
ASPA members Shree Lamipack participated at Pack Plus held on
July 30 to August 2, 2015 at India Trade Promotion Organisation
(ITPO), New Delhi, India.
News Bytes

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Tax Stamps
Tax stamps is a stamps affixed to
certain products or documents to
indicate that a required tax has
been paid. According to its usage,
it is known by a variety of names
for example cigarette tax stamps,
excise stamps, excise adhesive
label (EAL), banderols etc etc.
Tax stamps in India
In India, tax stamps are classified
in two categories; a) polyester
based security hologram and b)
paper based excise label. The tax
stamps in India are produced
in different sizes, around 15
mm (width) x 60/75/80 mm
(length). The polyester based
security hologram are produced
in different multi color to be used
for different variety of liquors
like for IMFL, Country Liqur,
Beer, wine and Overseas (Foreign
Liquor) etc. All these tax stamps
included various overt, covert
and forensic features included
as per requirements of Excise
Departments. These tax stamps
are produced with a high grade
of tamper evident features and
security cuts in form of “T” or “I”.
These cuts are provided atboth
the ends of the tax stamps for
better affixation on the substrate
as well as to make sure that the
tax stamps can’t be re-used by
any person (see figure 1).
The first tax stamps was used
by Tamilnadu Government in
early eighties. These were on a
thin glassine based paper with
a strong adhesive. These tax
stamps was serial numbered
and was given by Tamilnadu
Government to companies that
filled IMFL against payment of tax
(See figure 2). Then again in 1999-
2000 Tamilnadu Government
enhanced the security of these
stamps and started using
full polyester based security
hologram. In a similar way, Uttar
Pradesh State Excise Department
started using security hologram
in 2001. In 2002, the next year,
Kerala introduced paper based
tax stamps. Today, more than
22 States (including Union
Territories) in India are using
approximately 11 billion tax
stamps. 75 percent of these
are in forms of full polyester
security hologram and 25 percent
paper based, with or without a
holographic element. (see figure
3).
“TAX Stamps have always been an important authentication solutions used by Government
authorities to curb the illicit trade, protect consumer and to increase the excise revenue. It
was only 20 years ago; due to the globalization many countries started using tax stamps
for the first time, especially in the Eastern Europe and Former Soviet Union. Today across
the globe, 81 countries are using approximately 130 billion cigarette tax stamps and 14
billion alcohol tax stamps1
. In India also, the revolution of first tax stamp was introduced
by Tamilnadu State Excise Department in early eighties. Today, 22 States (including Union
Territories) in India are using approximately 11 billion tax stamps per annum2
. In contrast to
globally, all these tax stamps are for alcohol, excluding cigarettes industry. The introduction
of tax stamps has help State Excise Department in minimizing the hooch tragedies,
curbing the menace of duplication, as well as in increasing the excise revenue collection.
This article is an overview of TAX STAMPS in INDIA.
by C S Jeena
Figure 1: Example of a tax stamp
with security cuts in form of “T”
Figure 2: Holographic tax stamp
produced by holostik in 1999.
1. Reconnaissance International, UK
2. Authentication Solution Providers’ Association (ASPA)
Tax stamps in India:
An overview
Cover Story

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10
Jammu & Kashmir
Uttarakhand
Delhi
Uttar Pradesh
Sikkim
Arunachal Pradesh
Assam
Chhattisgarh
Goa
Karnataka
Kerala
Madhya Pradesh
Manipur
Meghalaya
Mizoram
Nagaland
Orissa
Rajasthan
Tamil Nadu
Tripura
Puducherry
Telangana
Andhra
Pradesh
Lakshadweep
Maharashtra
Gujarat
Daman and
Diu
Haryana
Punjab
Chandigarh
Himachal
Pradesh
Bihar
Jharkhand
West Bengal
Andaman and
Nicobar
Sources: ASPA and State excise tender documents.
15 States using full polyester based security hologram
6 States using paper based excise label
1 State using BOPP label
Only state in India which stopped using tax stamps
Tax stamps in India (2014-15)Figure 3:
Fact file
Population 1.27 Billion (2014)
GDP $ 2.067 trillion (2014)
GDP rank 7th (Nominal) / 3rd (PPP)
GDP growth 7.3% (2014-15)
GDP per capita $ 1627 (2014)
Annual tax stamps consumption: 11 billion
Cover Story

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Latest developments:
Recently, few States Excise
Department have started
combination of physical
authentication with digital
technologies. For example
Andhra Pradesh is using security
hologram comprising hologram
for authentication and bar code
for track & trace. In other case,
Chhattisgarh Excise Department
is using a combination of
security hologram with SMS
authentication. However, track
and trace technology is not
a “silver bullet” that will kill
off counterfeit products and
may itself have vulnerabilities.
Physical and sensory
authentication tools will still be
needed both during and after the
development of track and trace
systems around the world. If we
do not integrate both digital and
nondigital (physical and sensory)
authentication methods into our
approach, then we risk wasting
the major investments that are
about to be made in track and
trace. Examiner may need to
verify the liquor bottle visually
due to lack of availability of
reader, power failure, network
failuresorsimpletimeconstraints
at crowded control sites. An
electronic authentication is not
possible everywhere especially
in remote areas so it generate a
requirement of an instant visual
authentication like a hologram
with advanced levels of security
features for authentication (One
suchexampleisVisa/MasterCard
which is continuously using
hologram as overt feature since
1998).
Why tax stamps
being used by states
government?
Tax stamps in India are adopted
for various reason. For example
a) Curbing Illicit liquor
industry:
There has been a rapid rise in the
production and sale of beverage
alcohol in India, over the last five
decades. Parallel to this, the illicit
liquor industry has also seen an
increase in India. A significant
proportion of the alcoholic drink
in India, is produced illicitly by
the informal sector or consists
of “Second or D Market” (tax
evaded beverages) and therefore
remain undocumented. There
is also a considerable volume of
smuggling of alcoholic beverages,
especially scotch into the country.
Since, no government revenues
are paid, illicit liquor is sold at
low a price which causes hooch
tragedy. Although it has been
speculated that such unrecorded
consumption may be as much
as 45 percent of all use, there is
very little recent data. Evidence
that such use is widespread is
evident in the regular occurrence
of poisoning (hooch tragedies)
following drinking spurious
liquor, often on a mass scale
(Recent Maharashtra case is
current example). Reports of
excise raids on illegal distilleries
and confiscation of illicit alcohol
are also regularly featured in the
media. Alone in Karnataka (2010-
11), the department conducted
59,124 illicit distillation centres
in State, registered 10,924 cases
and arrested 4,597 persons.
In Maharashtra, the state
excise department from April-
December 2014 witnessed
over 2000 cases of illicit liquor
business in the city and suburbs
of Mumbai (Maharashtra state
capital).
b) Enhance State image/
goodwill
The hooch tragedies occur due to
illicit liquor consumption eroded
the image of state governments
which create challenge for state
government to ensure consumer
confidence.
Cover Story

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Table 1: Revenue Receipts of State and Union Territories for F.Y. 2014-15 (Budget Estimates)
State A) Tax Revenue B) State own Tax Revenue C) Excise Revenue D) Contribution of Excise
(INR million) (INR million) (INR million) revenue in State own tax
revenue (%)
Andha Pradesh 5,42,364 37,39,77 40,267 11
Arunachal Pradesh 17,305 5,469 687 13
Assam 2,54,505 1,13,454 7,637 7
Bihar 6,74,380 2,56,630 37,000 14
Chhattisgarh 2,78,077 1,79,263 31,500 18
Goa 50,926 40,756 2,900 7
Gujarat 7,47,043 6,30,675 933 0
Haryana 3,43,847 3,03,748 43,500 14
Himachal Pradesh 87,023 53,383 9,407 18
Jammu & Kashmir 1,26,870 74,959 4,620 6
Jharkhand 2,26,913 1,18,127 8,500 7
Karnataka 8,64,298 6,98,698 144,300 21
Kerala 5,18,329 4,,24,675 32,084 8
Madhya Pradesh 6,66,711 3,89,899 67,300 17
Maharashtra 13,88,535 11,85,890 1,15,000 10
Manipur 23,742 6,208 145 2
Meghalaya 27,930 12,063 2,052 17
Mizoram 13,012 2,704 35 1
Nagaland 15,896 3,868 45 1
Orissa 3,81,521 1,98,627 19,838 10
Punjab 3,38,803 2,84,800 46,000 16
Rajasthan 6,34,105 4,06,550 53,188 13
Sikkim 14,535 4,974 1,209 24
Tamilnadu 11,08,496 9,18,354 64,830 7
Telangana 4,51,276 3,53,786 28,235 8
Tripura 31,134 12,784 1,795 14
Uttarakhand 1,21,573 80,233 13,4545 17
Uttar Pradesh 15,75,016 8,10,000 1,45,0005 18
West Bengal 7,32,108 4,54,140 38,104 8
Delhi NCR (UT) 3,15,710 3,15,710 36,000 1
Puducherry (UT) 21,000 21,000 5,600 27
Cover Story
c) Importance of excise
revenue:
Revenue from excise duties on
alcohol has always become a
significant contributor for many
States in India accounting for
more than 10 percent of their
own tax revenue. Under the
Indian constitution, liquor is one
commodity which the States are
entitled to charge excise duty
(Article 246). In fact, the revenue
from excise duties was the
second largest source of income
for States after Sales Tax (see
table 1).
Source: Budget Document of State Governments / RBI State Finance Study 2014-15
A) Tax Revenue = State own tax revenue + Share in Central Taxes
B) State own Tax Revenue = Taxes on Income + Taxes on Property and Capital Transactions + Taxes on Commodities & Services
D) Contribution of Excise Revenue in State Own Tax Revenue = C x 100 / B
*Liquor prohibited State = Gujarat

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Table 2: Comparison of state using tax stamps vs. not using any technology/authentication solution
State 2005-06 2010-11 Increased in Population of State
Revenue (revenue) revenue in in 2011 (Cr)
(Rs Cr) (Rs Crore) last 5 years
Tamilnadu 3,177 8,116 4,939 7
Uttar Pradesh 3,089 6,726 3,637 20
Andhra Pradesh 2,685 8,265 5,580 8
Maharashtra* 2,824 5,800 2,976 11
Bihar* 319 1,523 1,205 10
Cover Story
d) Increased tax revenue
According to various reports
and ASPA, the mandated usage
of tax stamps in States such
as Uttar Pradesh, Tamil Nadu,
Uttrakhand, Madhya Pradesh,
Pondicherry, Chhattisgarh etc.
have increase revenue collection.
For example Tamil Nadu and
Uttar Pradesh, excise revenues
were Rs 8116 crores and Rs 6725
crores respectively in 2010/11.
By contrast, in states similar
in size and population such as
Maharashtra excise revenue
was much lower at Rs 5800
crores. Recently Maharashtra
excise minister Eknath Khadse
announced to make security
holograms compulsory.
According to him this step will
likely earn the state INR 14 billion
in additional revenue.
e) Easy identification:
Tax stamps (security hologram)
plays an important role for visual
authentication to differentiate
fake liquor bottle from genuine,
for both enforcement authorities
and for individual consumer.
These tax stamps are customized
with overt and covert features,
beingovertforalayman onsumer
and covert & forensic feature for
enforcement authorities which
can be proof of the authenticity
of bottle. Further, holograms
are be best overt authentication
feature available, as an electronic
authentication is not possible
everywhere especially in remote
areas (India).
f) Save enforcement
expenditure cost
As counterfeiting, tampering,
and diversion grows government
need to allocate a greater portion
of their security budgets toward
efforts ensuring integrity of
liquor.
Conclusion
Tax stamps is the main tool now
used by the government and the
enforcement to authenticate
sealed IMFL and Beer bottles sold
in the State. Hence the efficacy of
these tax stamps, as an advanced
and true tamper evident seal,
has great value. This is true
regarding other Indian States
also. There are no magic bullets
in anti-counterfeiting, but, it can
be curbing to a great extent with
proper combination of overt
and covert feature, and proper
anti-counterfeiting strategy
comprising proper co-ordination
between government officials,
enforcement teams and
anticountering technology
suppliers.
* States not using tax stamps.

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Global View
Despite accelerating pace
of growth in the share of
privately-owned firms due to
mounting sense of urgency to
ensure that commercial rights
granted to them by respective
jurisdictions are not merely
nominal protection mechanisms
by employing product security
solutions; governments accross
the globe and their affiliated
public or semi-public institutions
continue to dominate the demand
side of the product security
(product authentication/track/
trace systems) market.
The situation and market
trajectory of product security
solutions in Turkey is no
exception in this regard, and
goes hand in hand with the
prevailing global trend. Attempts
of Turkish government to design
and implement product security
solutions to reap mutiple benefits
as diverse as safeguarding public
health, securing high amount of
tax revenues and protecting both
consumer and commercial rights
via installing track and trace
systems that cover various vital
goods go back to early 2000s.
The current situation in Turkey
with respct to different product
security solutions enforced by
the government is as follows:
- The tax stamp system applied
to tobacco products and
alcoholic beverages since
2007 is being implemented
by the Presidency of Revenue
Administration, a Finance
Ministry affiliate institution.
- Security holograms applied to
books, CDs and other cultural
worksareusedbytheMinistry
of Culture and Tourism.
- The system that enables
authorities to track human
medicinalproductscirculating
within the pharmacy chain
and which facilitates the
prevention of potential
movement of counterfeited
and smuggled medicines
or any other abuses of the
system via applying two-
dimensioned data matrixes is
carried out by the Ministry of
Health.
- The track and tracing system
that operates by adding a
special chemical liquid called
‘national marker’ to gasoline,
diesel and other petroleum
products is implemented by
a Energy Ministry affiliate
institution, namely the Energy
Market Regulatory Authority.
For the time being, no other
products, except those cited
above, are tracked or traced
by government agencies using
any type of security solution.
However, there has been
extensive press coverage recently
making the headlines across
national dailies, aboutthe plans
and intentions of the Ministry of
Food, Agriculture and Livestock
and Ministry of Health to install
a track and trace system for
sensitive food products such
as drinking water, tea, honey,
olive oil, baby food, energy
drinks, dietary supplement and
vegetable oil.
As we learned from the press
realeses, the implementation of
a system tailored to track these
7 group of food products via
uniquely-numbered labels has
been postponed to the begining
of the next year(2016) due to
mounting pressure and lobbying
by interest groups predominantly
consisting of large industrial
associations made up of food
producers that consider a
massive project of this nature
would bring unbearable cost to
their enterprises.
On the other hand, Ministry of
Health has been carrying out
preparational operations with
respect to a security system that
would enable the related public
authority to track drinking water
and cosmetics, a yet another
significant step taken in the
context of government’s wider
attempt to bring the circulation
of some crucial products under
control.But so far, there has been
no official announcement made
nor any declared information
regarding legal and technical
dimesions of such a project.
Tax Stamp System
The main motivation and logic
behind government’s desire to
track and trace tobacco products
andalcoholicbeverages,asbriefly
stated above, is the necessity to
guarantee the high amount of tax
levied on these products. Both
tobacco products and alcoholic
beverages alike, irrespective of
whether they are domestically
produced or imported, are taxed
quite heavily in the form of one-
time imposition of a high rate of
excise duty (special consumption
tax) and value added tax.
Since the highly complicated
and eleborate nature of the
computation method of excise
duty and value added tax for
each one of these products is
beyond the scope and aim of
this article, we will be brief
on technical details by noting
only that the percentage of tax
Product security solutions
currently implemented in Turkey

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The Authentication Times
Issue 27
Global View
amount in relation to the unit
price may exceed 80% for some
products and the total annualtax
derived from these two group
of products (tobacco products
and alcoholic beverages) has
reached approximately 10% of
the aggregate national budget
revenue.
Serialisation of Medicinal
Products
The primarydrive for the
surveillanceof human medicinal
productsthrough serialisation
method which would pose
potential risks to the wider
public health in case of mass
circulation of counterfeited or
smuggled products, on the other
hand,ismore associated with
the government’s desire to stem
grave financial losses that would
be otherwise suffered by the
Social Security Institution, rather
than ensuring the collection of
tax amounts levied on each unit
package of medicines.
The Social Security Institution is a
public body covering the medical
expenses of almost the entire
population within the context
of the ‘general health insurance
scheme’ already in effect for many
years now. Serialisation method
which functions by implementing
unique 2D codes to the inner
unit packages is employed by
Health Ministry. These 2D codes
provide the feature of uniqueness
to all unit medicines which
in turn enable Social Security
Institution, the agency that buy
theoverwhelming majority of
medicines in the market, to
successfully track medicines and
determine any wrong-doing or
abuses.
Add to that, systematic and
regulated organization of the
pharmacychain,besidestheSocial
Security Institution being virtually
the sole buyer in the medicine
market, have also contributed to
the success of the system.
Holograms in Cultural
and Artistic Products
Given the fact that books and CDs
are taxed with a mere 8% VAT, an
insignificant amount compared
to the heavy taxation of some
of the products cited above, the
principal stimuli for the Ministry
of Culture and Tourism to include
books and CDs within the
framework of ‘track&trace
system via security holograms’
can be described as the Nation’s
longstanding effort to keep up
with the need to reduce the
number of cases of copyright
violations that are notoriously
detrimental to the development
of cultural and artistic
production. The system operates
with one single firm authorized
by the concerned public body to
produce and distribute security
holograms to the entire market.
This system has so far delivered
on its original goals of coping
and eventually diminishing
the number of unauthorized
circulationofculturalandartisitic
works such as books and CDs.
National Marker System
Thehightaxcontentofoilproducts,
analogues to that of tobacco
products and alcoholic beverages,
leaded to the emergence of
urgent need to track and trace
fuel for the sake of securing such
a significant amount of tax for the
national budget.This mounting
need was finally satisifed to a
gerat extent by the establishment
of the ‘national marker system’, a
tracking mechanism that operates
by adding a speacial chemical
mixture to all oil products. This
tracking scheme is carried out
and supervised by the Energy
Market Regulatory Authority to
tackle illicit trade of fuel, which
would otherwise be widespread
in the absence of such an effective
security solution due to Turkey’s
geographical proximity to
world’s top oil producers and its
heavy reliance on importation.
Considering that approximately
%17 of the national budget is
made up of VAT and excise duty
generated from oil products, the
vitality of installing a tracking
system of this nature become
more evident.
As eleborately cited above, all
four major product security
systems in Turkey are being
enforced and carried out by the
government agencies. No matter
how fast the market share of
private actors in the product
security sectorgrows, the sheer
importance of the strategic
concerns and dimensons such as
public health, commercial rights,
budget targets and to some
extent national security which
are all inherently associated with
product security is likely to keep
government and its affiliated
institutions as the leading market
players in coming years.
Diyadin Yakut
Tax Inspector
Finance Ministry
A. Menaf
Product Track&Tracing Expert
Finance Ministry

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ASPA VP attends workshop on stolen
and falsified medicines in London
ASPA participated at
Pharma Pro & Pack
Expo 2015
ASPA enter
agreement with
Reconnaissance
for upcoming
industry events
ASPA News
ASPA Vice President Nakul
Pasricha attended a workshop on
Stolen and Falsified medicines,
hosted jointly by KPMG and
The Global Fund to fight AIDS,
Tuberculosis and Malaria, held
in London on 24th and 25th June,
2015.
The workshop had attendees
representing global pharma
companies, solution providers
as well as experts in the field of
drug counterfeiting. The agenda
focused on coming up with
practical, implementable ways in
whichpharmacompaniescanjoin
hands with solution providers as
well as donor agencies like the
Global Fund in order to tackle the
problem.
Mr. Pasricha gave a presentation
highlighting the advances
made in India both in terms of
enacting regulations as well as
implementing solutions that can
satisfy those regulations. India’s
leading role in countering this
issue was well-appreciated and
recognized.
The group agreed to work
together in the coming months
to ensure that the plans laid out
at the workshop are followed
through and implemented.
Source: www.aspaglobal.com
The 3rd international edition of
Pharma Pro&Pack Expo 2015
was held on May 13 to 15, 2015 at
Mumbai Exhibition Centre along-
with concurrent exhibitions
PharmaLab Expo, iPHEX and
Reverse Buyer & Seller meet.
The 3rd edition is the industry’s
very own exhibition to offer a
common business platform for
the pharmaceutical industry and
jointly organised by GPE Expo
Pvt. Ltd, Pharmexcil, EEPC India
and Indian Pharma Machinery
Manufacturers Association. ASPA
was the association partner for
this event and exhibited at the
Show. ASPA exhibited at the event
with an aim to create awareness
of the ASPA and importance
of authentication solutions for
pharmaceutical industry. The
next edition of Pharma Pro Pack
& Expo will be held on April 27-
29, 2016 at Mumbai Exhibition
Centre, Mumbai, INDIA.
For more information visit
www.pharmapropack.com
ASPA has partnered with Reconnaissance
International for following important
industry events;
- Tax Stamp Forum, 11-13 November, 2015
(Miami, USA), http://www.taxstampforum.
com/
- The Holography Conference, 2-4
December, 2015 (Shanghai, China), http://
www. theholographyconference.com/
- High Security Printing Asia, 7-9 December,
2015 (Jakarta, Indonesia), http://www.
hspasia.com/
All ASPA members are entitled for special
20% discount on delegate fees at all
these events. To avail the discount, please
contact KATE POWELL, Conference
Manager, Reconnaissance at kate@
reconnaissanceintl.com or ASPA Secretariat
at info@aspaglobal.com.

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The Authentication Times
Issue 27
Counterfeit Blackhawks gear worth $180,000 seized during Final
www.chicagotribune.com
April 2015: 75,000 counterfeit sunglasses seized at Mumbai port
www.dnaindia.com
June 2015: Counterfeit medicines worth £16m seized in Britain’s
biggest ever haul
www.mirror.co.uk
July 2015: Over 8 million counterfeit cigarettes seized in
Grâce-Hollogne
www.brusselstimes.com
JULY 2015: Police seize counterfeit watches, clothing and
viagra worth £2 million in a series of raids in the Strangeways
area
www.manchestereveningnews.co.uk
July 2015: Counterfeit notes seized
www.thehindu.com
July 2015: Italy Seizes 600K Counterfeit Condoms Made with
Noxious Chemicals
www.news.vice.com
Jun 2015: Perth counterfeit cash manufacturer raided, fake
$50 notes seized
www.abc.net.au
July 2015: Customs Seizes $6 Million in Counterfeit Van Cleef &
Arpels Jewelry
www.jckonline.com
July 2015: KPDNKK seizes counterfeit mobile phones worth
RM500,000
www.nst.com.my
July 2015: Tk 25 lakh fake stamps seized, 2 held
www.thedailystar.net
June 2015: Large quantity of packaged water bearing fake ISI
mark seized
www.business-standard.com
July 2015: Fake L&T electronics shops busted, items worth Rs
25 lakh seized
www.iamin.in
July 2015: Fake iPhones being sold in popular Delhi markets
www.indiatoday.intoday.in
July 2015: Police in China seize 20,000 tonnes of low-grade
‘fake’ salt sold to restaurants and supermarkets
www.scmp.com
July 2015: Fake rice seized in Davao submitted for lab analysis
www.cnnphilippines.com
Counterfeit seizure report
Industry Updates
11–13 NOVEMBER 2015
Miami, USA
The only global event to focus on strategic
and practical solutions to protect
government revenues and combat the
illicit trade in tobacco and alcohol.
www.taxstampforum.com
07–09 DECEMBER 2015
Jakarta, Indonesia
Strategies and solutions for
printing banknotes, passports and
identity documents across Asia,
the Middle East and Africa.
www.hsp-asia.com
02–04 DECEMBER 2015
Shanghai, China
The event examines all aspects of
commercial holography and holographic
technologies, in particular their traditional
use in authentication and security,
packaging and printing.
www.theholography
conference.com
Email us at events@reconnaissance-intl.com for more details
RECONNAISSANCE INTERNATIONAL Tel: +44 (0)1932 785 680 www.reconnaissance-intl.com
ASPAmemberssave
20%standarddelegaterates
ASPA AD.indd 1 16/07/2015 15:01

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The Authentication Times
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Industry Updates
Publication Title Int. Application Applicant / Inventor
DD.MM.YYYY Class Number
26.02.2015 WO/2015/103396 A61J 1/03 PCT/US2014/073005 I-property holding
Pharmaceutical product corp. / Glendenning,
Packaging to prevent paul
Counterfeits co., Ltd.
Brief Abstract: Pharmaceutical tablets and dosage forms are stored in a blister pack (24) or other type of
packaging (24) which include additional anti-counterfeiting measures that are difficult to simulate and easy to
reveal with a laser pointer (22). The blister pack (24) is embossed with a hidden security feature (20) including
hidden information (46) that is revealed only when a laser beam is directed through the packaging (24) to be
deflected at the hidden security feature (20). The hidden security feature (20) may also accompany other covert
and/or overt security features, including multi-level hologram features (60, 78) embossed into the blister pack
(24) at the same time as the hidden security feature (20).
01.07.2015 2888116 Security document B42D 15/00 13750059 Bayer materialscience
and/or document of value ag / tziovaras
containing a visually changeable georgios
window with a hologram
Brief Abstract: : The present invention relates to a security document and/or document of value with a hologram
in a visually changeable window as a novel security element, and also to a method for producing the same.
18.06.2015 20150170019 Vehicle G06K 19/16 14414499 Tönnjes ISI Patent
identification means Holding GmbH / Björn
Beenken
Brief Abstract: A vehicle identification means (10) that has an at least partially electrically conductive film (12)
and a hologram (36) and/or a reflective film. In addition, at least one data carrier (26), which can be read out in a
contactless manner, having an antenna is provided. The hologram (36) is implemented as an antenna for the data
carrier (26). A separate antenna is therefore no longer necessary. In addition, multiple antennas can be provided
in parallel.
25.06.2015 20150174945 Methods for B42D 25/378 14406903 SICPA HOLDING SA /
printing tactile security features Christophe Garnier
Brief Abstract: The present invention is related to a process for manufacturing a security feature comprising
a tactile pattern, said method comprising the steps of applying on a substrate a radiation-curable basecoat
composition by a process selected from the group consisting of inkjet, offset, screen printing, flexo printing and
rotogravure; at least partially or fully radiation-curing said radiation-curable basecoat composition so as to obtain
a radiationcured basecoat; applying on the radiation-cured basecoat obtained under step ii) a radiation-curable
topcoat composition in a form of indicia by a process selected from the group consisting of screen printing, flexo
printing and rotogravure; radiation-curing said radiation-curable topcoat composition so as to form a radiation-
cured topcoat, wherein the radiation-curable basecoat composition and/or the radiation-curable topcoat
composition comprises one or more machine readable feature substances independently selected from the
group consisting of cholesteric liquid crystal pigments, luminescent compounds, infrared-absorbing compounds,
magnetic compounds and mixtures thereof, and wherein the radiation-cured basecoat has a surface energy at least
15 mN/m less than the surface energy of the radiation-cured topcoat. The present invention is furthermore related
to a corresponding security feature and it use for the protection of a security document against counterfeiting or
fraud.
Global patents

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Upcoming events Published by
Authentication Solution Providers’ Assciation
(ASPA)
Editorial Team
Issue Editor : C S Jeena
Designed & : EYEDEA Advertising
Printed by 1250/13, Govindpuri,
Kalkaji, New Delhi-19
(India)
eyedeaadvertising@gmail.com
www.artworxindia.in
The Authentication Times is a quarterly
newsletter published by ASPA with an aim
to provide latest developments, research,
articles, patents and industry news to a
wide audience related to Authenticatoni in
India and World.
The editorial team welcomes your news,
contributions and comments. Please send
your product updates, press releases,
conference announcements or other
contributions to ASPA:
21-Ground Floor, Devika Tower 6
Nehru Place, New Delhi 110019, India
Telfax: +91 (11) 41617369
Email: info@aspaglobal.com
Website: www.aspaglobal.com
Disclaimer:
The data used here are from various
published and electronically available
primary and secondary sources. Despite
due diligence the source data may contain
occasional errors. In such instances, ASPA
would not be responsible for such errors.
ASPA is the Authentication
Solution Providers’
Association formerly known
as Hologram Manufacturers
Association of India (HoMAI).
Founded in 1998 as HoMAI
it has now been re-launched
in 2014 as ASPA with a
mission to provide a platform
where authentication solution
providers can converge
and collaborate to develop
customised cutting edge
authentication solutions for
their customers. For more
details, please visit:
www.aspaglobal.com
Diverse technologies, common goal.
* ASPA participating events. Meet us at these event’s to know more about us.
Industry Updates
Date Event Name / Place / Website
8-11 October, 2015 INDPACK 2015*
Mumbai, India, www.indiapack.org
21-23 October, 2015 The Coin Conference
Madrid, Spain, www.thecoinconference.com
11-13 November, 2015 Tax Stamp Forum
Miami, USA, www.taxstampforum.com
25-26 November, 2015 Brand Protection & Anti-Counterfeiting
Germany, www.brandprotectionevent.com
01-04 December, 2015 Label Expo Asia
Shanghai, www.labelexpo.com
2-4 December, 2015 The Holography Conference*
Shanghai, China, www.theholographyconference.com
7-9 December, 2015 High Security Printing Conference
Jakarta, Indonesia, www.hsp-asia.com
Cartoon Corner

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