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The Authentication Times Issue 34

Dear Readers,
Welcome to the 34th 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

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The Authentication Times Issue 34

  1. 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
  2. 2. 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 IMAGE CONSULTANT P R Mantra PRINTED BY Gopsons Papers Ltd. A - 2&3, Sector 64, Phase 3, Noida, India 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 Authentication 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 Telefax: +91 (11) 41617369 | Email: | Website: 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. 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
  3. 3. 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
  4. 4. 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
  5. 5. 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.
  6. 6. 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
  7. 7. 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
  8. 8. 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
  9. 9. 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: 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)
  10. 10. 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
  11. 11. 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
  12. 12. 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
  13. 13. 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
  14. 14. 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: NEWSIssue 34
  15. 15. 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.
  16. 16. 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.
  17. 17. 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
  18. 18. 16 NEWSIssue 34 Photo: ASPA members at the closing ceremony of conference.

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Dear Readers, Welcome to the 34th 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


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