In 2006, Turkey’s Ministry of Finance sought proposals for a nationwide banderol-applied product tracking system. The government’s three-fold objective was to introduce improved enforcement measures to prevent tax evasion, reduce unfair competition against local manufacturers arising from illicit trade, and provide additional protection to consumers.

Turkey is the first country in the world to implement a single technology to securely monitor all excisable tobacco, alcohol and beer products. According to the Turkish Board of Revenue’s estimation, over seven billion items will be protected per year.

Sicpa-Assan was awarded the contract on the basis of its record in deploying high-technology security tracking solutions, as well as for the cost-effectiveness of its proposal. Sicpa-Assan is a Turkish joint-venture company established by Sicpa and Kibar Holding to develop product security and related technologies for product authentication and supply chain security.

Under the terms of the deal, Sicpa-Assan will be responsible for the implementation, training, maintenance, repair and technical assistance of all modules of the system, which combines integrated security technologies, inks and systems, hardware and software.

The product tracking system will require the installation of non-intrusive automatic tracking systems onto manufacturers’ packing and filling lines for product monitoring and transmission of the relevant information to a central data management system. To handle the monitoring of imported products, dedicated facilities are being set-up close to the customs points of Istanbul, Izmir and Mersin.

All local manufacturers and importers have until June 19, 2007 to comply with the new requirements.