The jewelry market in Kazakhstan is currently facing a significant challenge. An estimated 99% of the market is considered a ‘shadow market’, causing serious problems for legitimate enterprises. This shadow market is characterized by shops selling items with fake stamps indicating foreign origins, thereby pushing honest manufacturers out of the market.
Introduction of Mandatory Labeling
In an effort to combat this issue, the government of Kazakhstan has announced that starting from July 1, 2024, mandatory digital marking will be introduced for jewelry made of precious metals and stones, whether they are imported into Kazakhstan or produced within its territory. The primary goal of introducing this digital labeling and traceability system is to ensure transparency in trade turnover.
Enhancing Consumer Trust and Business Responsibility
Experts believe that the introduction of digital labeling will improve product traceability, ensure the authenticity of purchased products, and create conditions for the sustainable development of the industry. It is anticipated that joint efforts with the state and increased liability of businesses, including criminal liability, will ensure the purity and transparency of the market, thereby increasing consumer confidence.
Fines and Training Period
Currently, the sale of remnants of unmarked products is allowed. However, amendments to the legislation will involve fines for entrepreneurs who violate these rules. The Committee for Technical Regulation and Metrology of the Ministry of Trade and Integration plans to fine businesses of all sizes.
In addition, representatives of the Unified Operator of Labeling and Traceability of Goods will conduct training seminars in Astana, Almaty, and Shymkent over the course of the year. These seminars aim to educate businesses about the new regulations and ensure compliance.
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