1. COMBATING ILLICIT
TOBACCO TRADE;
COLLABORATIVE
SOLUTIONS FOR INDIA
The Official newsletter of Authentication Solution Provider's Association (ASPA) Apr - Jun 2018 | Volume 12 | Issue 34
CELEBRATING
YEARS OF
AUTHENTICATION
1998-2018

3. Viewpoint
Dear Readers,
th
Welcome to the 34 edition of The Authentication Times.
In, The Authentication Times, we continue to raise the issue of
counterfeiting, which impacts the consumers and society by large.
After a grand and successful 2nd Authentication Forum, our current
edition highlights the recent development and initiative by the Indian
government on pharma, tobacco, land management, high security
registration plate and others. The cover highlights the issue of combating
illicit tobacco trade, India policy & collaborative solutions in fighting this
menace.
We would like to express our gratitude to Shri. Suresh Prabhu, Hon’ble
Union Minister of Ministry of Commerce & Industry & Civil Aviation,
Government of India for taking his precious time and gracing the 2nd
Authentication Forum.
We are very hopeful that the recent announcements will make a very
modern Intellectual Property Rights (IPR) era in India.
Special thanks to Ministry of Agriculture, Central Board of Excise &
Customs and all industry association and partners for supporting this
important event.
We are also thankful to eminent dignities from Government, Media,
Industry Association and member companies.
We hope you will found this issue informative and interesting and as
always, we look forward to receiving your feedback.
Chander S Jeena
Editor, The Authentication Times
In this issue
PUBLISHED BY Authentication Solution Providers’Association (ASPA)
EDITORIAL TEAM Issue Editor: C S Jeena
Principal Correspondent: Sanjiv Singh
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Upcoming Event's
Security Document World
25-27 June, UK
African Currency Forum
02-05 September, Zimbawe
The Holography Conference
15-16 November, Belarus
INDEXIssue 34
COMBATING ILLICIT 1
TOBACCO TRADE;
COLLABORATIVE
SOLUTIONS FOR INDIA
UAE's FTA launches 5
tax stamp on tobacco
to combat tax evasion
Govt mulling unique 6
codes to check menace
of fake medicines
High Security No. Plates 7
will come factory fitted
Project: E- 8
Pattadar Passbook for
transparent land records
Industry mourn the 9
passing of Peter Frei
Chinese police seize 10-11
fake Penfolds, Swisse,
Blackmores in multi-million-
dollar counterfeiting
crackdown
Nanotech, Holostik and 11
Kumbhat Sign Distribution
Agreements for India
Maharashtra FDA takes 12
steps for tamper proof
cosmetic products
Event review: 13-16
The Authentication
Forum 2018

4. 1
COVER STORYIssue 34
Introduction:
ombating illicit tobacco trade is an
Cissue that is being seriously
addressed by not only those in the
tobacco industry but also governments
around world and international bodies such
as World Health Organisation (WHO) and
Interpol. According to an estimate by
WHO, eliminating the illicit trade in
tobacco would generate an annual tax of US
$ 31billionsfor governments.
In Indian scenario, as per media sources,
illegal Cigarette trade comprising
international smuggled and locally
manufactured tax-evaded cigarettes
accounts for as much as 1/4th of the
Cigarette Industry in India. According to
s t u d i e s b y F I C C I – C A S C A D E
(Committee against Smuggling and
Destroying Economy), the grey market in
the tobacco industry has grown
significantly since 2010 and has grown
from 15.7 percent in 2010 to 20.2 percent in
2012 - an increase of 28.7 percent.
Government of India alone bears the losses
INR 13 billion per annum because of illicit
tobacco trade. Based on the current tax
rates on cigarettes, it is estimated that the
Government loses Rs. 13,000 crores per
annumbecauseofillegalcigarettetrade.
According to Devchandan Mallick,
Research Analyst – Drinks & Tobacco at
Euromonitor International, India is the
third largest market in the world in terms of
illicit cigarettes sales. We estimates total
illicit cigarette sales in 2016 was at 24.9
billion sticks in 2016, more than 20 percent
of theoverallcigarettevolumesales.
India’s Policy to Combat Illicit
Trade of Tobacco Products
Taking a positive step in curbing illicit
tobacco trade, on 2-May-2018, The Union
Cabinet Chaired by Prime Minister Shri
Narendra Modi has given approval to
accede to the Protocol under World Health
Organization (WHO) Framework
Convention on tobacco control to eliminate
illicit trade in tobacco products. It will be
applicable to both smoking and chewing or
smokeless tobacco (SLT) forms as
negotiated and adopted under Article 15 of
the World Health Organization Framework
Convention on Tobacco Control (WHO
FCTC). Indiais apartytoWHO FCTC.
What is FCTC Protocol?
The WHO FCTC is a treaty adopted by the
56th World Health Assembly held in
Geneva, Switzerland on 21 May 2003
developed in response to the globalization
of the tobacco epidemic. The illicit tobacco
trade is regulated under Article 15 of the
WHO FCTC. It spells out supply chain
control measures that must be adopted by
the parties viz. licensing of manufacture of
tobacco products and machinery for
manufacturing of tobacco products, due
diligence to be kept by those engaged in
production, tracking and tracing regime,
record keeping, security; and measures to
be taken by those engaged in e-commerce,
manufacturing in free-trade zones and
duty-freesales.
COMBATING
ILLICIT TOBACCO
TRADE;
COLLABORATIVE
SOLUTIONS FOR
INDIA
Table: Illicit Tobacco Trade in India
* Indirect taxes represent excise duty
and VAT on domestic manufacture and
import duty and VAT on imports, whilst,
Direct taxes represent corporate income
tax.
F. Y. Loss of Sales Loss of Revenue
to Industry to Government
(Direct +
Indirect Taxes*)
2013-14 INR 13,130 INR 9,139
2011-12 INR 8,965 INR 6,239

5. Fig: Kenya Revenue Authority Stamp Checker App
explaining how to check authenticity of tax stamps
on applications alcohol, cigarette,
soft drinks and beer.
FCTC requirements – Is Tax
stamps and Authentication
measures
FCTC requires the implementation of
systems to track and trace tobacco products
throughout the supply chain by means of
technology such as tax stamps (either paper
or digital), bar codes and radio-frequency
identification(RFID).
Tax Stamps
Often referred as Tax stamp, excise stamps,
excise adhesive label, banderol etc it is a
stamp affixed to certain products or
documents to indicate that a required tax
has been paid. Tax stamps serve two
purposes. One is to provide a record of
payment of tax i.e. tracking of cigarette
packs throughout their distribution would
enable tax authorities to ensure proper tax
collection. The other is to provide evidence
that the stamp, and hence the product to
whichitisaffixed,isgenuine.
The use of tax stamps not only ensures that
tax payment records can be kept but also
provides assurance that the products they
are affixed to are genuine.According to the
Kenya Revenue Authority (KRA), excise
revenue grew by more than 28 percent in
the 2015/16 year to almost KES 49bn
($485m) following adoption of the secure
QR code tax stamps. The same period also
saw domestic excise revenue grew by 43
percent, contributing an additional KES
8bn ($79m) to the country's exchequer and
signalling the highest growth ever recorded
in the country's history of excise collection
– strong evidence of the enhanced stamp
programme's success. Moreover, since
implementation between 2013 and the
present day, excise revenue has increased
by 82 percent, enabling more than KES
200bn ($2bn) to be recovered from KRA
projectsprogrammes.
While, tax stamps could be an answer for
cigarette and bidis, the chewing tobacco
sectorcanused varioussolutionsincluding
 Holographictaggerfoilfor tinboxes
 Holographicstripe
 Holographicpouchfor gutkhaindustry
 Re-sealablelabelsfor loosetobacco
 High security paper label with security
hologram
 Completeholographicsolutions
In recent years, many governments (for
example, UAE (see news also on page no
2), Ghana, Kenya) having adopted tax
stamps to reduce the risks of counterfeit
stamps, monitor domestic producers more
efficiently, and increase the efficiency in
information flow. Even all most, all Indian
neighbouring countries (Bangladesh,
2
COVER STORYIssue 34

6. COVER STORY
3
Issue 34
Bangladesh
Year of Introduction - 2002
Benefit
As a result, illicit trade in cigarette was reduced from 20 per cent in 2000
to 1.2 per cent in 2009. Tax banderols were also introduced on bidis. The
banderols were almost long enough in size to wrap around the entire pack.
Then in 2016, the tax stamp programme was upgraded to include five
types of stamps and banderols for cigarettes and bidis, as well as stamps
for soap products. Currently, about 11 percent of revenue earned by the
National Board of Revenue comes from the tobacco sector, which is quite a
significant amount compared to the single-digit percentages of many
other countries.
Phillipines
Year of Introduction - 2014
Benefit
Bureau of Internal Revenue (BIR) issued stamp with a dimensional size of
23 millimeters (mm) by 43 mm containing multi layered security features
and an IRSIS - assigned Unique Identifier Code and a Quick Reference
Code containing information pertinent only to the cigarette container (e.g.
pack) to which the IRS is affixed. The IRS comes in six different color
designs according to whether the cigarettes are packed by hand or by
machine (with colors for high or low tax bracket), for locally manufactured
cigarettes or imported cigarettes with different colors (for high or low tax
bracket) or for export. An IRS is usually located on the top seal or closure
of cigarette packs.
Nepal
Year of Introduction - 2003
Benefit
Nepal introduced tax stamps on tobacco in 2003 on cartons. Further it
enhanced the systems and started using tax stamps on cigarette packets,
whilst, on chewing tobacco, it is still used on carton boxes.
Pakistan
Announced
To be implemented in 2019
Fig: Example of Tax Stamp Programmes in Neighbouring Countries:
Lesson to be learnt
Indonesia
Year of Introduction - 1970
Benefit
Indonesia is among the world's fastest-growing market for tobacco
products, partly due to cheap prices of cigarettes in the country with a
population of over 250 million. The government expects to secure 147.59
trillion rupiah (10.071 billion U.S. dollars) revenues from cigarette tax by the
year-end. Approximately 18 billion stamps for all tobacco products are
currently in usage.
Vietnam
Year of Introduction - 1989
Benefit
Policy resulted in an increase in government revenue of VND 300–500
billion (US$ 18.75–31.25 million) annually.

7. COVER STORYIssue 34
4
Nepal, Sri-Lanka and announced in
Pakistan) are using them. Pakistan, Kenya,
Morocco, Brazil andArmenia, among other
countries that already impose excise tax on
sugary drinks, have implemented, or are in
the process of implementation, systems like
this – systems that originated in tobacco
and alcohol tax stamp programmes but that
are now being extended across other
product sectors. Today across the globe, 81
countries are using approximately 130
billioncigarettetaxstamps.
European Union Doing
To tackle illicit trade, the European Union
(EU Tobacco Products Directive
( 2 0 1 4 / 4 0 / E U ) p r o v i d e s f o r t h e
establishment of an EU-wide track and
trace system for the legal supply chain of
tobacco products (article 15), as well as a
system of security features to help detect
illicit products (article 16). The European
Union has taken a big step forward in
combating the illicit trade in tobacco
products by ensuring that tobacco products
in the EU are easily traceable with a unique
identifier for each product. The track and
trace system and the security requirements
should be in place by 20 May 2019 for
cigarettes and roll-your-own tobacco and
by 20 May 2024 for all other tobacco
products (such as cigars, cigarillos and
smokeless tobacco products). Under the
security features system, all unit packets of
tobacco products placed on the EU market
will be required to carry a tamper-proof
security feature composed of visible and
invisible elements, enabling authorities and
consumerstoverifytheirauthenticity.
Companies operating in smokeless tobacco
space will need to strengthen supply chain
monitoring system in order to successfully
implementthisregulation.
Cigarettes companies operating in India are
very limited and may easily be able to help
the government in enforcing this
regulation. Proper monitoring of supply
chain and distribution should help in
controlling illicit tobacco consumption.
Increase in information sharing between
various stakeholders and regulatory
authorities will lead to better tracking of the
illicit tobacco trail and curtail illicit
tobacco. This regulation will be easy to
implementinthecigarettescomparedtothe
highly fragmented market of smokeless
tobacco, says, Devchandan Mallick,
Research Analyst – Drinks &Tobacco at
EuromonitorInternational.
Whilst, Indian Government can benefit of
tax stamps from learning of neighbouring,
these are not something which is not new to
country. Tax stamps (Excise Adhesive
Labels) are already used on alcohol. tested
and implemented successfully on alcohol
by State Excise Department. Although, the
application is different, the central
government authorities take benefit of
tested and implemented solutions from
State Excise Departments. Today, more
than 22 States (including UnionTerritories)
in India are using approximately 20 billion
taxstampsonliquorbottlesperannum.
According to various reports and
authentication trade body (ASPA), “the
usage of authentication solutions in these
States like Tamilnadu, Uttar Pradesh,
Karnataka, Madhya Pradesh, Puducherry,
Chhattisgarh etc. has not only minimized
the tragedies due to spurious liquor but
have also substantially increased the excise
revenue collection by more than 15-20
percent on year to year basis”. A
comprehensive approach to tobacco tax
stamping could be an important tool in
reducing illicit trade and revenue loss in
I n d i a . A p p l y i n g t a x s t a m p s o r
authentication solutions (combining
physical + digital) to all tobacco products in
country will make an important impact on
reducing illicit trade and further reduce
smoking and associated health care costs as
well as recoup lost revenues from illicit
trade.
Conclusion
photo courtesy: De La Rue

8. Issue 34
UAE's FTA launches tax stamp on
tobacco to combat tax evasion
Dubai: The Federal Tax Authority
(FTA) has announced the launch
of a new electronic tracking
system which uses tax stamps to ensure that
the excise tax on tobacco products has been
paid. The announcement came across at an
awareness meeting held in Dubai. Set to go
into effect in early 2019, the system seeks to
combat tax evasion and commercial fraud,
supporting the FTA's efforts to successfully
implement excise tax systems and verify
paymentof excisetaxontobaccoproducts.
The step confirms the part of policy shift of
the six countries of the Gulf Cooperation
Council (GCC) – namely Bahrain, Kuwait,
Oman, Qatar, Saudi Arabia and UAE –
which have intensified efforts to increase
non-oil revenues as part of a major shift in
tax policy that includes the introduction of
VAT, as well as excise tax on tobacco and
sugary drinks. In order to administer these
new tax regimes, the UAE has established a
federal tax authority, which is a first for this
countryofsevenconstituentmonarchies.
Source:KhaleejTimes /TaxStamp News
Picture: FTA Director General His Excellency
Khalid Ali Al Bustani, addressing an
awareness meeting held in Dubai
Ghana mandates tax stamps on
imported textiles
n order to curb illegal imports & saving
Ilocal textile industry, Ghanaian
authorities will put a tax stamp on
textiles entering the country beginning
June 1, 2018.And from September 1, after a
3-month grace period, traders will not be
able to sell textiles that do not have tax
stamp.
According to Minister of trade and industry
Alan Kyerematen, “The step would ensure
that all imported textiles are regulated, and
it may also force foreign companies to shift
their production base to Ghana”. The
shifting of manufacturing to where demand
is, would also mean more revenue and
employmentfor Ghana,theministeradded.
Of the 120 million yards of fabric needed
annually, local producers are able to supply
only 30 million yards. The minister,
however, made it clear that the government
does not intend to put a complete ban on
textile imports; it only wants to
manage/restrict imports so that domestic
manufacturers are not pushed out of the
business.
The tax stamp, that would be put on every
piece of fabric entering the country, would
be issued by the ministry of finance. The
government constituted anti-piracy task
force and would have power to seize
textilesthatdonothavetaxstamps.
POLICY INITIATIVES
5

9. Issue 34
6
Govt mulling unique codes to check
menace of fake medicines
onsumers will be able to text the
Cunique code printed on a
medicine's package to a number to
checkwhethertheproductisgenuine.
New Delhi: India's highest advisory body
on drugs had discussed a mechanism to end
the menace of fake medicines at a meeting
onMay 16.
According to the proposal to be discussed at
the Drug Technical Advisory Board
meeting, consumers will be able to check
whether the medicines that they have
purchased are genuine by texting a unique
code to be printed on the medicine's
package to a number, said two people aware
of the matter, both of whom requested
anonymity.
According to them, the government is
planning to initially build a data bank of
3 0 0 m e d i c i n e b r a n d s a n d t h e i r
consumption pattern in various parts of the
country.“Drug companies will then be
asked to print a unique 14-digit
alphanumeric code on the package of the
drug. Consumers buying the medicine can
then inquire via a text message whether the
code—and therefore the medicine—is
genuineornot,”thepeoplesaid.
“The unique identification code will help
consumers avoid buying fake products.The
idea is that within seconds, the person
should receive a reply indicating whether
the drug is legitimate,” said a person with
directknowledgeofthematter.
Fake medicines lead to drug resistance in
humans and cause a significant number of
deaths, according to public health experts.
A government survey conducted between
2014 and 2016 to check the proportion of
substandard drugs in India had found 3.16
percent of the samples it tested to be
substandard, while 0.02 percent were
spurious.
Significantly, even samples from big drug
makers were found to be not of standard
quality during the survey carried out
through the National Institute of
Biologicals, according to regulator Central
Drugs StandardControlOrganisation.
“We must have a robust tracing and
tracking mechanism...with emphasis on
transparency and accountability,” said
Bejon Misra, founder of Partnership for
SafeMedicinesIndia.
“Quality and safety should be paramount
and people indulging in the sale of spurious
medicines should not be spared,” Misra
said.
IMS Health Information and Consulting
Services India Pvt. Ltd. will assist the
government in gathering the drug-related
data.According to a report released by the
World Health Organization (WHO) in
2017, approximately 10.5 percent of all
medicines in low and middle-income
countriesaresubstandardor fake.
India expects to bring down the proportion
of substandard drugs in the country to 2
percent over the next three years, with the
aimofmatchingglobalstandards.
The country's drug regulator has also been
engaged in risk-based inspections of
manufacturing plants as part of its efforts to
achievethisgoal.
Source:Mint
POLICY INITIATIVES

10. 7
POLICY INITIATIVES
7
Issue 34
High Security No. Plates will come
factory fitted
ew Delhi: In its bid to ensure that
Nall vehicles have tamperproof
high security registration plates
(HSRP), the Indian government will allow
automobile manufacturers to fit them
before vehicles are rolled out of the factory.
"The embossing of registration number
will be done at the dealer's level," Road
TransportMinisterNitinGadkarisaid.
This will make the entire process hassle
free for buyers and the registration or
number plate will have 15 years' guarantee.
Sources said in case of any defect, the
dealerwillberesponsiblefor replacement.
This will also end the monopoly of a few
HSRP manufacturers in the market. Even
13 years after the government made HSRP
mandatory, several states are yet to enforce
it. HSRPs are uniform and have in-built
security features such as a self-destructive
sticker with engine and chassis number of
the car, which cannot be tampered with.
HSRPs also serve as a deterrent to car
thieves.
Since vehicle manufacturers will buy
HSRPs in bulk, prices will fall drastically.
But what is more important is there will be
huge relief for people, they will have
assured service from the dealer concerned
and there will be 100 per cent compliance,
said,atransportexpert.
At present, the registration number is
issued by the district-level Regional
Transport Office (RTO) of respective states
and the shop owners authorised by HSRP
manufacturers fix the number plates on
vehicles. HSRPs will also aid in creating a
nationaldatabaseofallmotorvehicles.
Government officials said to introduce the
change in norms, they will invite
suggestions and objections from people
beforenotifyingthechanges.
Sources:
Times of India
Motor Vehicles Statistical Year Book India 2017
Blog: Highsecurityplates.com
States Avg. price of Number of registered
number plate (Rs) vehicles (in million)
Andhra Pradesh 620 7.9
Arunachal Pradesh 0.1
Assam 320 2.5
Bihar 4.7
Chhattisgarh 4.3
Goa 1.0
Gujarat 18.7
Haryana 7.9
Himachal Pradesh 1.0
Jammu & Kashmir 1.2
Jharkhand 2.0
Karnataka 14.7
Kerala 9.6
Madhya Pradesh 146 11.1
Maharashtra 25.5
Manipur 1330 0.3
Meghalaya 1040 0.2
Mizoram 0.1
Nagaland 0.3
Orissa 5.2
Punjab 128 6.2
Rajasthan 110 12.3
Sikkim 0.04
Tamil Nadu 112 22.5
Telangana 7.8
Tripura 0.2
Uttarakhand 234 1.8
Uttar Pradesh 21.6
West Bengal 340 7.4
Total States 198.14
Union Territories
A&N Islands 0.1
Chandigarh 0.6
D. & N Haveli 0.1
Daman & Diu 0.1
Delhi 119 -214 8.8
Lakshadweep 0.01
Puducherry 0.8
Total UT’s 10.51
Total in India 208.65
Table: Registered Motor Vehicles across the country
(as on 31st March 2015)

11. Project: E-Pattadar Passbook for
transparent land records
In a historical move, The State
Government of Telangana is all set to
launch the new website 'Dharani' for
transparent online land records which will
be a one-stop solution for all land-related
needs. The new website will also be helpful
for hassle-free up-dation of land records,
and it would integrate and deliver services
of revenue, registration, survey, agriculture
and financial institutions to curtail fake
passbooks and to ensure that the subsidies
given by the government reach only the
genuinefarmers.
Under the initiative ownership of 14.2
million acres of land clearly established and
recorded and more than 5.8 million farmers
will be benefited. All the digitized records
will now be saved on Government website
“DHARANI”. The Government is
providing free passbooks “Pattadar
Passbook” to the farmers of the State as the
onesingleproof of ownership.
Details of Pattadar Passbook
Farmers in Telangana can now use their
pattadar passbooks in electronic form in
ordertosecurecroploans.
The existing pattadar passbooks are prone
to counterfeiting. In 2017, a case had been
reported when an unknown person by
generating fake pattadar passbook on their
name and mortgaged them and availed loan
of Rs 18.5 million from Bank. The culprits
have mortgaged the lands of one farmer,
who is not in the village as he is staying in
Australia. Out of his 30 acres land, fake
passbooks were generated for 20 acres and
they were mortgaged with the Corporation
Bank.
To overcome this, the new passbooks will
come with a host of security features like
Letter Screen Image (LSI), barcoding,
laminated film, dicuts (horizontal and
oblique security lines), optical character
recognition (OCR). Besides, it will be a
waterproof-enabled document whose
security features will be intact even if it is
keptinwaterfor 15 to20 days.
A senior official from the agriculture
department said that the revenue
department has been assigned the work of
bringing out the new passbooks. The
officials, who were dealing with the
passbooks, had difficulty in identifying
tampering. The major problem faced by the
officials of the revenue, agriculture and
registrations department were photo
substitution, deletion, and alteration of
data, construction of a fraudulent
document, or some parts of it, using
material from legitimate documents.
Removal and substitution, deletion of
entries, assuming the identity and altered
appearance and the like were the some of
theproblemswiththepresentpassbooks.
In some cases, the mandal revenue
officials, who were transferred and those
retired from the services, kept the official
seals with them. They helped beneficiaries
in validating the manipulated documents
with their signatures and seals affixed on
them with back dates. This helped many
landsharks to grab government lands, to
claim an adverse position of lands as well as
sourcing huge sums of loans from the
banks, pledging the counterfeited pattadar
passbooks as well as sale deeds and
agreements. The new security features of
passbooks, however, would not give scope
for such manipulation,theofficialsaid.
The security printing press has been handed
over the task of printing close to 72 lakh
pattadar passbooks with 18 security
features making them tamper proof
recently. The passbooks are being planned
in such a way that each farmers will be
given a unique 13-digit identity which
gives the precise location of the land in
villages along with the details of the
owners.
The new dark green 20-page passbooks will
have 18 security features with six columns.
It will have barcode, QR code, fingerprint
and unique ID number compressing State,
district, mandal and village codes. (For eg
TK indicates – Telangana – Karimnagar
district). It will also have farmer's bank
account number, IFSC code, mobile
number,landmapandtransactionsdetails.
Sources said the Pattadar passbooks will
have 18 security features and the colour of
the passbook will be green representing the
farming community. The book will have 20
pages,eachhavingsixcolumns.
Each farmer will get a 13 digit unique code
number on the passbook. The code includes
special numbers given to state, district,
mandal and village.The number will haveT
letter in the third place indicating the State.
In the sixth place, the district letter will be
placed. For example, if the passbook
belongs to Adilabad, the letter A will be
included in the sixth place and if it is
WarangaltheletterWwillbementioned.
The passbooks will also have land map, the
boundaries of the land and the details of the
sale and purchase of that particular piece of
land. Hereafter, all the agriculture land
purchase or sale will take place only with
the support of Pattadar passbooks. The
bankers too will not insist on submitting
Pattadar passbooks to the banks for
sanctioning agriculture loans. Each
Pattadar passbook will be linked with
Aadhar with a bar code and it will have the
fingerprints of farmers, photos of farmers,
the bank account details and the IFSC code
of the bank for depositing money into
farmers accounts. In a scheme announced
earlier, the State government has decided to
deposit 4,000 per acre to each farmer from
May 15 onwards for taking up of
agriculturalactivities.
8
POLICY INITIATIVESIssue 34

12. he PANTEC group is sad to
Tannounce that Peter Frei, CEO of
the PANTEC print decoration
business, has passed away unexpectedly
duetoanaccidentontheApril29, 2018.
We would like to extend our deepest
condolences to his wife and three children,
as wellas hisrelatives.
Peter was born on the June 30, 1963 in
Zürich, Switzerland. In 1988 he graduated
from ETH Zürich as a mechanical engineer
and started working as a development
engineerandprojectmanager.
In 1996, he began his career in the printing
industry as a director of new business
development and system sales before
joining PANTEC in 2008. During the next
10 years, he transformed the newly formed
print decoration business unit into a leading
player in the field of hot foil embossing
machines with 3 product lines for narrow
andwideweb.
Everybody at PANTEC highly respected
Peter's vision and expertise, with which he
ledthecompanytogreatsuccess.
Sparking a paradigm shift amongst the
industry was one of his greatest
achievements. He convinced printing
houses worldwide to change their
production concepts to in-line processing,
allowing them to utilize PANTEC's high
performance hot foil embossing
technologyfor greaterefficiency.
Due to Peter's management, PANTEC was
s u c c e s s f u l l y p o s i t i o n e d a s t h e
unchallenged leader in their market sector.
The multitude of installed RHINO™
flatbed hot foil embossing systems and
CHEETAH™ rotary hot foil stamping units
as well as the great amount of satisfied
customers around the world, confirm the
business unit's claim – efficient high
qualityrefining.
"Peter was not only a great business
developer with technical aptitude and
tenacity, but also a passionate leader,
building up a very strong team around him
with extensive application and engineering
know-how. Through this, he was able to
achieve an outstanding market position in
such a short time", said Reinhard Braun,
Pantecowner andchiefexecutiveofficer.
"I will always remember Peter as a great
entrepreneur with an inspiring personality
and a huge passion for the printing
industry," Braunadded.
Industry mourn the passing of
Peter Frei
Issue 34 TRIBUTE
79

13. POLICY INITIATIVESIssue 34
10
Chinese police seize fake Penfolds,
Swisse, Blackmores in multi-million-dollar
counterfeiting crackdown
PHOTO: Blackmores vitamins are popular
with daigou shoppers. (ABC News: Emily
Stewart)
olice in southern China have seized
Pmore than 30 million yuan ($6.3
million) worth of counterfeit
products, including large hauls of popular
Australian-branded wines, vitamins, foods,
andcosmetics.
In the other case, police said they seized
about $2 million worth of wines and
dismantled "a criminal chain" of 13
suspects who sold cases of fake Penfolds
mixedwithrealbottles.
Police said the criminal chain formally
registered companies that were in charge of
different stages of the operation, and
mostly sold the counterfeits through e-
commerce websites and social media
platformsincludingWeChat.
LocalpaperTheSouthern MetropolisDaily
quoted Guangdong Police as saying that the
criminal groups used tag lines such as
"overseas direct sales" for products from
Australia, and "direct postage from
overseas and franchise stores", to attract
customers.
Police added that some counterfeit
products reportedly made about a 1,000 per
cent profit, even though they were selling
for a 50 per cent discount compared to the
realproduct.
For example, the criminal chain selling
fake Penfolds wines reportedly bought
generic wines for some 19 yuan ($4) and
sold them as the famedAustralian brand for
200-300 yuan ($42-$62), which was
significantly cheaper than the 600 yuan
marketprice($125).
A spokesman for Penfolds owner Treasury
Wine Estates encouraged customers to seek
out authorised retail stores to buy their
wines.
The company's chief executive, Mike
Clarke, told the Australian Financial
Review earlier this year that it would stamp
out operators who were producing copycat
Penfolds wines.
The company has reportedly set up an
internal investigations team and is working
closely with authorities in China and
Australia.
China's rising middle class is driving
increased demand for Australian-sourced
foods and produce and a huge phenomenon
known as "daigou", fuelled by a network of
tens of thousands of shoppers who buy
goods in Australian stores to send to
relatives, friends and social media
followersinChina.
However, many Chinese consumers are
being cheated, with fake products offered
by dishonest daigous who not only sell
knock-off products but also attach fake
documentation purporting to show the
productswereboughtoverseas.
An Austrade spokesman said while there
had been significant improvement in the
ability to register and protect intellectual
property in China, Austrade was aware of
companies that had still suffered
commercial losses."Austrade always urges
businesses entering the China market to
address this issue early on in the process,"
he said."That includes, where possible,
registering trademarks, patents, copyright
and trade secrets with relevant Chinese
agencies."
Sophisticated anti-counterfeit and
traceability technology is also providing
new solutions,thespokesmansaid.
He pointed to the Adelaide-based Beston
Global Food Company, which had
developed a three-part traceability, anti-
counterfeit and global e-commerce
platform,inpartbasedCSIRO technology.
“The system allows consumers to buy
online and offline, trace the origin of
products, and verify their authenticity," he
said.
Counterfeit is rife around the world, but
China is the world leader in producing and
exporting counterfeit goods, according to a
2016 United States Chamber of Commerce
report. The report, titled Measuring the

14. 11
NEWSIssue 34
Magnitude of Global Counterfeiting, said
China alone was estimated to be the source
of more than 70 per cent of global physical
trade-related counterfeiting, amounting to
morethan$US285 billion($377 billion).
Last November, Chinese police raided a
string of factories, warehouses and offices
in an operation to crack down on
counterfeit Peppa Pig products. They
seized toothbrushes, toothpaste and
shampoo among other children's products
branded with the British cartoon character
thatishugelypopularinChina.
E-commerce giant Taobao, a subsidiary of
Alibaba Group, is also fighting against
counterfeits. In the company's Annual
Report of Intellectual Property Protection
2017, the group said they assisted Chinese
police in arresting more than 1,600 suspects
in the manufacturing and selling of
counterfeit products and destroying more
than 1,300 manufacturing sites. The report
said they also shut down 240,000 online
shops which were suspect in selling
counterfeitsin2017.PHOTO: China is estimated to be the source of
more than 70 per cent of the world's physical
trade-related counterfeiting. (Weibo: Guangdong
Provincial Public Security Department)
De La Rue raises
focus on Product Authentication
D
e La Rue Malta has opened a new
€ 2 7 m i l l i o n p r o d u c t
authentication facility, a project
which started two years ago. The facility
will produce tax stamps, authentication and
brand protection products, including brand
protection labels for Microsoft, one of the
world's most famous brands. De La Rue's
Malta factory employs 567 staff across its
three core business areas of Currency,
IdentityandBrandProtection.
The facility is part of five-year strategic
plan to transform De La Rue from a
banknote and passport manufacturer into a
technology led security product and service
provider, set out in 2015. Subsequently, in
December 2016, De La Rue acquired the
US-based brand protection company,
DuPont Authentication, for $25m, its first
acquisitioninlast14years.
Product Authentication & Traceability
( PA & T ) d e l i v e r e d a n e x c e l l e n t
performance in the year 2015/16. Revenue
increased by 20% to £34.6m (2015/16:
£28.8m), driven by growth in tax revenue
protection. Source:De La Rue
Nanotech, Holostik and Kumbhat
Sign Distribution Agreements for India
ancouver: Nanotech, Holostik
VIndia Limited (“Holostik”) and
Kumbhat Holographics Co.
Limited (“Kumbhat”) announced
comprehensive agreements for the
®
distribution of Nanotech's KolourOptik
nano-optic image and colour shifting
opticalthinfilm(“OTF”)productsinIndia.
The supply and license agreements follow
several months of production trials and
appoints Holostik and Kumbhat as
Nanotech's authorized distributors and
converters for the non-banknote market in
India for an initial period of three years.
Under the agreements, both the companies
will pay Nanotech annual licensing fees
and adhere to annual minimum purchase
requirements. Specific commercial terms
werenotdisclosed.
Initial focus will be on the tax stamp and pharmaceutical markets

15. 12
Maharashtra FDA takes steps for tamper
proof cosmetic products
i t h a v i e w t o p r e v e n t
Wadulteration of cosmetic
products, the Maharashtra
Food and Drugs Administration (FDA) has
decided to urge cosmetic manufacturers to
make their products tamper proof by
putting a seal on the packaging, the way it is
puton pharmaceuticalproducts.
As part of this exercise, FDA headed by
Commissioner Dr Pallavi Darade, is
planning to organise a seminar of
manufacturers of cosmetic products soon.
In the seminar, the ill effects of adulterated
products will be highlighted, Assistant
Commissioner Suhas Mohite told media
person.
Although the seal on pharmaceutical
products is essential under the Drugs and
Cosmetics Act, such a seal is not required
for the cosmetic products available across
thecounter.
Since used bottles of cosmetics are easily
available, the racket of recycling and
refilling these bottles with spurious
products goes on rampantly and many
beauty parlours too contribute to this
clandestine business by making available
used bottles, Mohite said, adding, that in
fact all used bottles should be destroyed.
“Besides there is a possibility of some of
the beauty parlours themselves using
counterfeit products since gullible
customers are anxious only to beautify
themselves.”
In a recent case, spurious shampoo and
related raw material worth over Rs1 crore
was seized after raiding three places in the
western suburbs and an FIR (No244/2018)
was registered against three accused at
Amboli police station in Andheri in North
West Mumbai. During the raid, it was
revealed that the spurious shampoo was
being refilled in recycled bottles of L’Oréal,
at Yamunabai Chawl located at Andheri
East. The bottles filled with spurious
shampoo worth Rs40 lakh and raw material
worth Rs3.38 lakh was seized from this
place.
Similarly, in a simultaneous raid on a room
at Sethia Nagar, Pol Chawl No.2, Saki
Naka, Andheri East, raw material worth
Rs90 lakh was sized and one person called
Pujari was detained for interrogation. In the
third case, the raw material worth Rs4.88
lakh was seized from D’Souza Chawl,
located at Vile Parle and one Henry D
Souza was detained. The FDA officers also
detained one Khingar Ravaria, involved in
refilling and repacking the shampoo for
selling it online through his trading
company “Bio Cosmetics”. The raid was
conducted by the officers under the
directions of Joint Commissioner Arjun
Phadtare.
Ironically the accused D’Souza, was
booked after raiding his first floor work
shop located at D’ Souza Chawl on 13th
September last year machinery and goods
worth Rs18 lakh including empty bottles of
L’Oréal Professional hair colour cream,
Matrix shampoo, L’Oréal Deactivator, a
machine used to churn out liquid shampoo
and a stirrer, was seized. The FIR lodged at
Vile Parle Police station under section
27(A) of Drugs and CosmeticsAct, 1940, is
still pending. Even the accused Khingar
Ravaria, engaged in sourcing out semi-
finished products like shampoo, cream,
ointment, oil and other products of the
reputed brand and refilling them, was
interrogated earlier. FDAhad recorded nine
cases of spurious cosmetics sale in 2016
andsevencasesin2017.
Source:https://www.moneylife.in
NEWSIssue 34

16. 13
NEWSIssue 34
ew Delhi, 20th March 2018: In a
Nbid to eradicate the menace of
counterfeiting a two-day
International Leadership Summit on Anti-
Counterfeiting and Brand Protection “The
Authentication Forum 2018” was held on
March 15-16, 2018 at India's national
capital.
The second edition of the Authentication
forum was organised by Authentication
Solutions Providers Association (ASPA)
and was inaugurated by Union Minister of
Ministry of Commerce & Industry & Civil
Aviation,Mr. Suresh Prabhu.
In his inaugural address, Mr. Prabhu
reiterated the government's resolve to deal
harshly with the rising menace of
counterfeiting. “We are going to make a
very modern Intellectual Property Rights
(IPR) era in India and that would lead to
creating people investing into the brand and
that will lead to a knowledge economy
which in turn will make India a far better
placeanddevelopedplace,”hesaid.
The Minister further said that to make
‘Brand India’ a clearly acceptable brand we
must 'first protect IPR' because countries,
companies, even Indian companies that are
going to invest huge amount of money into
brand building, creating new rights in form
of patents, copyrights or new product
development or molecule development all
of them would need IPR protection.
“If Indian brands want to become global
then they must also be able to respect global
brands inIndia,”hesaid.
Day one of the summit witnessed three
panel discussion — Role of Govt. and
Industry in fighting fake and protecting
consumer, understanding 5W’s of
Counterfeiting and engaging consumers in
fightagainstcounterfeiting.
At the first panel discussion, eminent
dignities including Registrar General,
Protection of Plant Varieties and Farmers
Right Authority, Central Board of Excise
and Customs along-with ASPA President
and FICCI Chairman shared their views on
Role of Govt. and Industry in fighting fake
andprotectingconsumer.
Event review:
The Authentication
Forum 2018
Picture caption: From left to right: Mr Anil
Rajput, Chairman FICCI CASCADE, Mr.
Nakul Pasricha, Gov. Body Member - ASPA,
Mr. Arun Agarwal, Vice-President-ASPA, Shri
Suresh Prabhu Honb'le Union Minister,
Ministry of Commerce & Industry and Civil
Aviation, Government of India, Mr. U K
Gupta, President – ASPA & Mr. Luv D
Shriram, Gen. Secreary & Treausrer – ASPA at
lamp lighting ceremony.

17. 14
NEWSIssue 34
The panel was moderated by leading
journalist Mr. Rajeev Dubey from India
TodayGroup.
Dr. R. C. Agrawal, Registrar General,
Protection of Plant Varieties and Farmers
Right Authority, Ministry of Agriculture &
Farmers Welfare said, “Even as industry
revenues take a major hit by counterfeits,
the biggest loss is to the consumer.All of us
need to work together to address this
growing concern and the panel discussion
with various cross-sector stakeholders at
this important forum will serve this
purpose.”
At the occasion, Dr. S. K. Singh, Scientific
Advisor to Union Minister of Agriculture,
said, “Indian government is taking big steps
in digitising agriculture sector to ensure
farmers rights.” He also emphasised on the
need of measures like traceability & anti-
counterfeiting solutions which will ensure
the quality commitment of agricultural
productsproduceinIndia”.
It is being noted that the size of the spurious
pesticide market in India is as high as 30 per
cent by volume and 25 percent by value. It
is predicted that the market for spurious
Agrochemicals will reach 40 percent by
value of pesticides sold in the country by
2019.
At the occasion, ASPA President, Mr. U.K.
Gupta, said, “Counterfeiting is increasing
globally. In India also, the problem is
growing with an alarming rate of almost 44
percent per year. As per industry body
F I C C I - C A S C A D E , f r o m t h e
counterfeiting activity the Indian
government incurred a loss of Rs. 26,190
crores in fiscal year 2011-12 which has
increased to Rs. 39,239 crores in 2013-14, a
growth of 49.8% percentintwo years.
“The market for fakes are on a constant rise
in India and has surpassed over Rs. 40,000
crore in the organised sector alone, as law
enforcement remains weak and fraudsters
freely make inroads into the market,” Mr.
Guptasaid.
The second session mainly focussed on
understanding 5W’s of Counterfeiting at
which panellist including shared their
expertcomments.
The third session of the day focussed on
engaging consumers in fight against
counterfeiting.
At the last session of day companies
including Holostik, Manipal Technologies
and Rolling Optics delivered presentation
on current authentication solutions against
counterfeiting.
Panellists at session I brainstorming Role of
Government & Industry to fight against Fake
Products & Consumer Protection, From Left
to Right: Dr. S K Singh, Scientific Advisor,
Union Minister, Ministry of Agriculture and
Farmers, Mr. Anil Rajput, Chairman FICCI
CASCADE, Mr. U K Gupta, President ASPA,
Mr. Rajeeev Dubey, Editor, BusinessToday.In
& Managing Editor, Business, TV Today
Network, Dr. R.C. Agrawal, Registrar General,
Protection of Plant Varieties and Farmers
Right Authority, Ministry of Agriculture &
Farmers Welfare and Mr. S P Sahu,
Commissioner, Central Board of Excise &
Customs.

18. 15
Issue 34
The day two of summit started with case
studies from brand owners understanding
their perspectives. Whilst, Dr. Bakul Joshi,
B r a n d P r o t e c t i o n E x p e r t , F M C
Corporation shared case study on
protecting Agrochemicals products, Mr.
Naveen Chauhan, Head Sales & Marketing
(Parts Business) Hero MotoCorp shared
automotiveperspective.
Presenting pharma perspective Mr. Sourav
Mitra, Associate Vice-President Packaging
Strategy – OSD, Mylan Laboratories said,
“Health is Wealth and to ensure it, we need
tofirmstandagainstfakes.”
The event also witnessed a dedicated
session on future of anti-counterfeiting
technologies including blockchain, NFC,
Opticalandofflineauthentication.
The audience also got a chance to have
presentation on importance of branding,
IPR andeffectiveintelligence.
The forum concluded with a “The Big
D e b a t e - G l o b a l G r o w t h o f
Counterfeiting Trade - Why is it
increasing – lack of intent, of action or of
awareness?”
In the debate a question arises who’s
important consumer or profit? Replying to
it one of moderator said, “Both are
important but, we must keep in mind that if
consumer survives, then only the profit
exists.”
One of panellist expressed his views as that
sometime consumer himself buys
counterfeit products especially in
electronics products like mobile.
Answering this one of delegate disagreed
with speakers and question will any parent
buy a fake medicine for his/her child. The
brand is baby of brand owners and it is he,
who is mainly responsible for its
protection. The debate ended with
conclusion is that Today, having an
effective anti-counterfeiting and brand
protection strategy is no longer an option
but an essential part of any business
strategy. Consumer protection is very
important and authentication solutions in
integration with digital technologies can
playavitalandimportantroleinit.
Panelist sharing Brand owners perspectives,
From left to right: Mr. Sourav Mitra, Associate
Vice-President Packaging Strategy, Mylan
Laboratories, Dr. Bakul Joshi, Brand
Protection Expert, FMC Corporation, Mr.
Chanchal P Chauhan, Renowed Auto Experts
& Mr. Naveen Chauhan, Head Sales &
Marketing (Parts Business) Hero.
NEWS

19. 16
NEWSIssue 34
Photo: ASPA members at the closing ceremony of conference.