Confidentiality note - Aventri

© 2019, SICPA holding, Switzerland | CONFIDENTIAL 2

Confidentiality note—

All information and material contained in these pages, including

text, layout, presentation, logos, icons, photos, processes, data

and all other artwork including – but not limited to – any derivative

works are business sensitive and confidential information and/or

information and material protected by patents, designs, trade-

marks or copyrights in the name of SICPA or any of its affiliates

and shall be kept strictly confidential.

The material and information contained in – or derived from –

these pages may therefore not be copied, exploited, disclosed or

otherwise disseminated, in whole or in part, without SICPA’s prior

written approval.

03/06/2019

Enabling trust

Facilitating document and physical inspection of excisable goods

—

WCO IT/TI Conference & Exhibition 2019

Ruggero Milanese

Director Product Marking & Traceability

Solutions

SICPA

June 2019

4

Ensuring protection of

IP rights

Ensuring payment

of applicable

taxes and duties

Protecting businesses and the

country as a whole from

• Counterfeiting

• Health & safety risks

• Financing of organized crime

• Tax evasion

Contributing to building a fair

market and formal economy

Customs play a key role in the fight against illicit trade—

© 2019, SICPA holding, Switzerland | CONFIDENTIAL 03/06/2019

Ensuring imported

goods are

authorized

and comply with

applicable quality and

safety standards

Percentage of world trade that is counterfeit

(US$1 trillion) according to WTO

7%

of cigarettes are illicit.

12% 30%

Percentage of all alcohol consumed

globally that is illegally produced or unrecorded.

Illicit trade robs governments of

essential revenue: US$40 billion on tobacco annually

according to WHO

$40BN

However, fighting illicit trade is an ongoing battle—

03/06/2019© 2019, SICPA holding, Switzerland | CONFIDENTIAL

The problem is, Customs cannot thoroughly control compliance of all consignments at all border crossings—

B

O

R

D

E

R B

O

R

D

E

R

03/06/2019© 2019, SICPA holding, Switzerland | CONFIDENTIAL 6

7© 2019, SICPA holding, Switzerland | CONFIDENTIAL 03/06/2019

Some questions still remain un-answered for the final customer—- Could this product contain toxic

substances?

- Is this product authentic?

- Has this product been legally imported?

HOW can we help?


Creating an unalterable link between physical and digital worlds—

CONFORMITYPRODUCTION TRANSPORTATION IMPORT


Introducing secure track & trace—

FACILITATING

DOCUMENTARY

AND PHYSICAL

INSPECTIONS

ENSURING QUICK

DETECTION OF

NON-COMPLIANT

PRODUCTS IN THE

MARKET AND

RETRIEVAL OF

RELEVANT DATA

INTERCONNECTED

WITH ALL

RELEVANT PARTIES

AND SYSTEMS


SICPATRACE®

—


CONSUMER VERIFICATION

DATA SERVICES

TRACK & TRACEINSPECTION & ENFORCEMENT

PRODUCT MARKING

ADMNISTRATION

IMPORTS

DOMESTIC PRODUCTION

AUTOMATED ACTIVATION

AGGREGATION & SHIPMENT TRACEABILITY

MANUALACTIVATION

WAREHOUSE RETAIL EXPORTS

CENTRAL REPOSITORY

INTEGRATION WITH OTHER

SYSTEMS


Secure fiscal & conformity marks—

03/06/2019

• Banknote-grade security featuresprotecting against counterfeiting

• Overt

• Semi-covert

• Covert

• Forensic

• Unique Identification Codes enablingtraceability

• Machine readable

• Human readable

• Anti-tampering features protectingagainst removal / replacement

SICPA Horizona smart and secure platform for field inspections—


FIELD INSPECTION DEVICE

COMPANION TABLET OR SMARTPHONE

BACK-OFFICE TOOL FOR CAMPAIGN PLANNING &

PERFORMANCE MANAGEMENT


Empowering citizens to verify compliance—

• Open: available for Android & iOS devices

• Secure: capable to distinguish original vs. copy of 2D barcode (anti-copy feature, fingerprint)

• Fast: scan, authentication and retrieval of data in ~2 sec

03/06/2019

Verification of product

compliance by consumers

(self-serve)

Reuse of data collected by

consumers to improve

risk management


• …

03/06/2019

Data integrity and immutability accrued by BlockChain—

BLOCKCHAIN

PRODUCER

Hash Merkletree

CARRIER

Hash Merkletree

IMPORTER

Hash Merkletree

CUSTOMS

Data repository

Data repository

Data repository

Data repository


Data services—

A suite of tools allowing Customs and other law enforcement agencies to collect, combine and analyze data from different sources within seconds

It generates actionable insights supporting decision making

03/06/2019

Ecuador use-case—

Ecuador use-case—


• Customs Management System

• SICPATRACE®

• APIs enabling automated

exchange of import requests and

tax stamp UIDs (range)

INTEGRATION

CUSTOMS MGT SYSTEM

SICPATRACE

IMPORTER CUSTOMS

• Alcoholic beverages

• Security features

• Traceability

TAX STAMP

IMPORT

REQUEST

TAX STAMPS

AUTOMATIC

ORDERING TAX STAMPS

ACTIVATION

Ecuador use-case—



• SICPATRACE®

• APIs enabling automated

exchange of import requests and

tax stamp UIDs (range)

INTEGRATION

CUSTOMS MGT SYSTEM

SICPATRACE

IMPORTER CUSTOMS

• Alcoholic beverages

• Security features

• Traceability

TAX STAMP

INSPECTION

Uganda use-case—

Uganda use-case—


• Security

features

• Traceability

CONFORMITY MARK

CUSTOMS MGT SYSTEM

CERTIFICATION IMS SICPATRACE

SICPATRACE® integration with:

• Certification Information

Management System

• Laboratory Information

management System


• Standards Information

Management Systems

INTEGRATED CENTRAL

REGISTERY

Uganda use-case—


• Security

features

• Traceability

CONFORMITY MARK

CUSTOMS MGT SYSTEM




Management System


management System



Management Systems

INTEGRATED CENTRAL

REGISTERY

FOREIGN PRODUCER

REGISTRATION

CERTIFICATION

CONFORMITYASSESSMENT

BODY

Uganda use-case—


• Security

features

• Traceability

CONFORMITY MARK

CUSTOMS MGT SYSTEM




Management System


management System



Management Systems

INTEGRATED CENTRAL

REGISTERY

FOREIGN PRODUCER

CONFORMITY MARK

LOGISTICS & ACTIVATION

IMPORTER

Uganda use-case—


• Security

features

• Traceability

CONFORMITY MARK

CUSTOMS MGT SYSTEM




Management System


management System



Management Systems

INTEGRATED CENTRAL

REGISTERY

DOCUMENTARY &

PHYSICAL INSPECTION

IMPORTER CUSTOMS

27

Uganda use-case: benefits—

• Import declaration data augmented by exporter (HS classification, volume, origin, valuation) → Reduced risk of mis-declaration by importer

• Powerful inspection device & smartphone app provide immediate access to available certificates of conformity through scanning

• Strong protection against counterfeiting and wrong / fraudulent documentation

• Integration between systems leverages data for improved risk profiling

• Post-clearance access to information trail to all stakeholders


A provensolution since 2004—


CALIFORNIA

1 BNOf secured products

per year

CANADA

1.4 BNOf secured products

per year

MASSACHUSSETS

200 MNOf secured products

per year

MOROCCO


per year

ALBANIA

284 MNOf secured products

per year

GEORGIA


per year

TURKEY


per year

KENYA

+1 BNOf secured products

per year

MALAYSIA

+1 BNOf secured products

per yearBRAZIL


per year

ECUADOR

1.7 BNOf secured products

per year

International backing—

29

• “Tracking and tracing regime

to secure the distribution

chain and assist in the

investigation of illicit trade”.

• Independent from the tobacco

industry

• “Unique, secure and non-

removable identification

markings”

• Ratified by 52 countries –

entered into force in September

2018.


WORLD HEALTH ORGANISATION

FCTC) Protocol to Eliminate Illicit

Trade in Tobacco Products

• Require the use of secure excise

tax stamps and other product

markings

• Establish effective track and trace

systems to follow products from

production to sale to consumers

• Establish effective enforcement

teams equipped with automated

reporting devices

• Develop a risk profile to target

inspections

• Educate the public

• Successful country experiences:

Kenya, Ecuador, Chile, Georgia

WORLDBANK

Confronting Illicit

Tobacco Trade, 2019

INTERNATIONAL MONETARY FUND

Uganda Country Report No.

19/125, [May 2019]

Why SICPATRACE®

—


01

SECURE

TRACK & TRACE

creating a link between the

physical and digital worlds

02

INTER-

CONNECTIVITY

with all relevant parties and

systems aligning with and

capitalizing on existing

processes

03

FACILITATING

INSPECTIONS

facilitating documentary

and physical inspections

04

QUICK

DETECTION

OF NON-COMPLIANT

PRODUCTS

ensuring quick detection of

non-compliant products in

the market and retrieval of

relevant data

Thank you

for your attention

—


Confidentiality note - Aventri

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