The Authentication Times issue 27 August 2015

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The Authentication TimesIssue 27 The Authentication Times

August 2015 | Volume 9 | Issue 27

www.aspaglobal.com

The official newsletter of Authentication Solution Providers’ Association (ASPA)

Tax STampin india:an overview

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The Authentication TimesIssue 27

SMARTBONDING

Business Contact in South Asia

TION ENTERPRISES PVT. LTD.

T +91 9819387220, 9820828832

[email protected]

www.tiongroup.com

Adhesivesfor Security Systems



Dear Reader,

Welcome to the latest issue of “The AuthenticationTimes”.

“TAX Stamps have always been an important authentication solutions used by Government authorities to curb the illicit trade, protect consumer and to increase the excise revenue. It was only 20 years ago; due to the globalization many countries started using tax stamps for the first time, especially in the Eastern Europe and Former Soviet Union. Today across the globe, 81 countries are using approximately 130 billion cigarette tax stamps and 14 billion alcohol tax stamps.

In India also, the revolution of first tax stamp was introduced by Tamilnadu State Excise Departmentin early eighties. Today, 22 States (including Union territories) are using approximately 11 billion tax stamps per annum. In contrast to globally, all these tax stamps are for alcohol, excluding cigarettes industry. The tax stamps were introduced in India to prevent and minimizing the hooch tragedies, curbing the menace of duplication, as well as in increasing the excise revenue collection.

Our current cover story is on “Tax Stamp in India – An overview”. It also cover global expert view on “Product security solutions currently implemented in Turkey”. Apart from these, the issue also covers industry updates, ASPA and member news, counterfeit seizure report and global patents.

If you have any news, contributions, or comments for the editorial team, please email at [email protected].

Chander Shekhar JeenaEditor

In this issue

9

16

Viewpoint

Industry updates Counterfeit seizure report 17 Global patents 18 Upcoming events 19

News bytes

ASPA News

4

an overview

Tax STampS in india

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News Bytes

de La Rue launches the next generationof identity management solutions

Responding to a changing dynamic and the evolving

requirements of the Identity market, De La Rue announces the launch of DLR Identify™, a new citizen centric web based software solution, complemented by three new physical document security features and two new thin film laminates for passport bio-data page protection.

Unveiled at last month’s SecurityDocument World conference and exhibition in London, De La Rue launched their latest digital offering, DLR Identify™, to the market; a web-based software solution for the secure management, personalisation and storage of citizen identity data.

This new system provides the functionality needed to underpineGovernment and eCitizen applications, as well as border and document control solutions. Built using MIDIS™ technology to power its personalisation module, DLR Identify™ allows governments to record, validate, retrieve, update, certify and issuedocuments to citizens. Modular, scalable and configurable, DLR Identify™ is comprised of six coreelements; ID Register / ID Enrol / ID Verify / ID Perso / ID Issue / ID Control, is fully compliant to ICAO and ISO requirements, and delivers integrated reporting with strong proven security credentials.

In addition to their new digital solution, De La Rue launched a series of physical product innovations to market as a direct response to a number of specifically identified security threats to the bio-data page

for passports and ePassport documents:

Skylight™A specialist, unique and complex watermarking feature, where small areas appear lighter and thinner than their background, positioned to register across the sheet. This process has been developed and patented by De La Rue to prevent the splitting of paper, the lifting of the laminate and its reassembly with fraudulent data.

Continuous bio-datapage™A new patented method of book construction where the bio-data page continues across the spine to also form the rear end page ofthe book. This technique greatly hinders the removal of the biodata page; the prime target of most fraudulent attempts of document alteration.

Spectrum™Spectrum™ is a colour changing print feature with “movement” and “on/off” effect using proven latent image technology providing a sophisticated anticopy feature that is resistant to colour copiers, scanners or attempted desktop reproduction.

De La Rue also launched two new thin film holographic laminate patches, the first products to market as a result of their recently announced

partnership with Dai Nippon Printing Co Ltd for cooperation on the development of new anti-counterfeit technologies to be used in the secure identity document solutions;

Shield embossed™holographic laminate A high-gloss thin film laminate protection solution created using e-beam technology to deliver the highest resolution and definition of quality. A striking use of complex 3-dimensional models ensures immediate recognition and provides a powerful verification feature.

Shield volume™holographic laminate Using Lippmann holographic technology, SHIELD Volume™ displays a strong monochrome image with high movement and exceptional depth with 3D models that transition in both thehorizontal and vertical directionsand can be easily viewed under a mix of different lighting conditions.

A complete communications campaign entitled “The Next Generation of Identity Management Solutions” including new animations, interactive presentations, house book samples, printed materials & features guides supports this launch and is to be rolled out overthe coming weeks.

Source: www.delarue.com



News Bytes

nepal renewed passport contractwith Oberthur

Loparex to acquire 100% ownershipof india joint venture

The Government of Nepal has extended the contract

of France-based Oberthur Technologies to print machinereadable passports (MRP) for two years. According to the decision, the Oberthur Technologies will print 2.5 million passports at $4.89 a passport against the current rate of $3.59. It will cost an additional NPR (Nepal Rupees) 332.82 million to the government.

The Cabinet’s Economic and

Infrastructure Committee has decided to extend the bid of the existing printer rather than goingfor a fresh tender, citing time constraint and other logistical difficulties after the major earthquakes to meet the deadlineset by the International Civil Aviation Organization (ICAO).

The French company has printed 4.5 million passports as the existing agreement, of which 3.5 million have already been issued to the applicants. Under the new

agreement, Oberthur will have to install around 50 live enrollment centres in 7-8 countries that havehigher number of Nepalis. The company will hand over the entire data to the government after the completion of the contract in two years before initiating a fresh tender for e-passport or biometric passport—a mandatory provision of the international civil aviation authority.

Source: www.ekantipur.com

Effective August 1, 2015, Loparex Group will assume

100% ownership of the India joint venture company, Kaygee-Loparex India Private Ltd.

Mike Apperson, Loparex CEO comments, “We are delighted to add the world class manufacturing capabilities of Kaygee-Loparex to the global Loparex family. In addition to the assets, we also welcome an incredibly talented and dedicated group of employees to our Loparex team, which will synergize our ability to bring additional value, not only to our

local India-based customers, but also to our customers throughoutthe world”. Apperson adds, “The addition of Loparex-India compliments our unique and continuing investment strategy and our long term commitment to serving the diverse needs of our global customers”.

Established as a joint venture in 2001, Kaygee-Loparex is India’s largest release liner manufacturer. The state-of-theartfacility, located in Silvassa (near Mumbai), produces a wide array of custom-engineered silicone coated papers and films which support the diverse release liner needs of key industries including medical, tapes, hygiene, labels,

security, Composites and other industrial markets.

In-house product development, combined with IMS Certification (ISO 9001:2008, ISO14001:2004 and OHSAS 18001:2007), practiced GMP, and robust qualitymanagement methodology ensure the highest standards of quality, efficiency, regulatory andEHS compliance.

Loparex, the leadi-ng global supplier of release liners, also has manufacturing, product development and commercial operations in the US, Europe, China and Thailand.

Source: www.loparex.com

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UaE banknoteswith Braillefeatures on theway

Researchers demonstrate ‘no-ink’color printing with nanomaterials

The UAE Central Bank is making efforts to assist the

visually impaired with new specialised banknotes being put into circulation.

Notes in denominations of Dh500 and Dh5 have been printed with distinct tactile features. The Dh500 note will feature a pair of three horizontal lines separated by a recognisable distance and located in the middle of the right and left sides of the note.

Apart from these changes, the

overall design of the two notes will remain the same as those currently in circulation.

The notes will be dispensed to banks in accordance with the Central Bank’s established procedures for cash withdrawal and deposit.

The Central Bank issued instructions last July for anknotesto be printed using Braille characters. The move means the UAE has joined Hong Kong, Chinaand the Eastern Caribbean

Central Bank in issuing notes with Braille features. China was the first nation to use Braille on banknotes, more than a decade ago.

When the announcement was made, Sheikh Abdullah bin Zayed,the Minister of Foreign Affairs, tweeted: “I call on the UAE Central Bank to use Braille script in banknotes to make it easier for those without the blessing of eyesight.”

Source: www.thenational.ae

Missouri S&T researchers have developed a method to

accurately print high-resolution images on nanoscale materials. They used the Missouri S&T athletic logo to demonstrate the process.

The method described in the Scientific Reports article “Structural color printing based on plasmonic metasurfaces of perfect light absorption” involves the use of thin sandwiches of nanometer-scale metaldielectric materials known as metamaterials that interact with light in ways not seen in nature.

Figure: The Dh500 note consists of a pair of three horizontal lines, separated by a recognizable distance, around the middle of the right and left shorts sides of the note

Figure: Missouri S&T athletic logo to demonstrate the process. At top left is the original logo. At right are examples of the logo printed at the nanoscale level.

News Bytes



aSpa members exhibited at trade forums

Experimenting with the interplay of white light on sandwichlike structures, or plasmonic interfaces, the researchers developed what they call “a simple but efficient structural color printing platform” at the nanometer-scale level. They believe the process holds promise for future applications, including nanoscale visual arts, security marking and information storage.

The researchers’ printing surface consists of a sandwichlike structure made up of two thin films of silver separated by a “spacer” film of silica. The top layer of silver film is 25 nanometers thick and is punctured with tiny holes created by a microfabrication process known as focused ion beam milling. The bottom layer of silver is four times thicker than the top layer but still minuscule at 100 nanometers. Between the top and bottom films lies a 45-nanometer silica dielectric spacer.

The researchers created a scaled-down template of the athletic logo and drilled out tiny perforations on the top layer

of the metamaterial structure. Under a scanning electron microscope, the template looks like a needlepoint pattern of the logo. The researchers then beamed light through the holes to create the logo using no ink – only the interaction of the materials and light.

By adjusting the hole size of the top layer, light at the desired frequency was beamed into the material with a perfect absorption. This allowed researchers to create different colors in the reflected light and thereby accurately reproduce the S&T athletic logo with nanoscale color palettes. The researchers further adjusted the holes to alter the logo’s official green and gold color scheme to introduce four new colors (an orange ampersand, magenta “S” and “T,” cyan pickaxe symbol and navy blue “Missouri”).

“To reproduce a colorful artwork with our nanoscale color palettes, we replaced different areas in the riginal image with different nanostructures with specified hole sizes to represent various

visible colors,” says Dr. Xiaodong Yang, an assistant professor at Missouri S&T, who leads the Nanoscale Optics Laboratory in the university’s mechanical and aerospace engineering department. “We chose the athletic logo to fill that need.”

“Unlike the printing process of an inkjet or laserjet printer, where mixed color pigments are used, there is no color ink used in our structural printing process – only different hole sizes on a thin metallic layer,” says Dr. Jie Gao, an assistant professor of mechanicaland aerospace engineering at Missouri S&T and a co-author of the paper.

In their paper, the authors note that the process resulted in “pure colors with high brightness” with little need for protective coatings. The researchers believe the process could lead to “high performance, pigment-free color printing and relevant applications such as security marking and information storage.”

Source: www.news.mst.edu

ASPA members Alpha Lasertek participated at Pharma Pro Pack & Expo held on May 13 to 15, 2015 at Mumbai Exhibition Centre, India.

ASPA members Shree Lamipack participated at Pack Plus held on July 30 to August 2, 2015 at India Trade Promotion Organisation (ITPO), New Delhi, India.

News Bytes

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Tax StampsTax stamps is a stamps affixed to certain products or documents to indicate that a required tax has been paid. According to its usage, it is known by a variety of names for example cigarette tax stamps, excise stamps, excise adhesive label (EAL), banderols etc etc.

Tax stamps in India In India, tax stamps are classified in two categories; a) polyester based security hologram and b) paper based excise label. The tax stamps in India are produced in different sizes, around 15 mm (width) x 60/75/80 mm (length). The polyester based security hologram are produced in different multi color to be used for different variety of liquors like for IMFL, Country Liqur, Beer, wine and Overseas (Foreign Liquor) etc. All these tax stamps included various overt, covert and forensic features included as per requirements of Excise Departments. These tax stamps are produced with a high grade of tamper evident features and security cuts in form of “T” or “I”. These cuts are provided atboth the ends of the tax stamps for

better affixation on the substrate as well as to make sure that the tax stamps can’t be re-used by any person (see figure 1).

The first tax stamps was used by Tamilnadu Government in early eighties. These were on a thin glassine based paper with a strong adhesive. These tax stamps was serial numbered and was given by Tamilnadu Government to companies that filled IMFL against payment of tax (See figure 2). Then again in 1999-2000 Tamilnadu Government enhanced the security of these stamps and started using full polyester based security hologram. In a similar way, Uttar Pradesh State Excise Department started using security hologram in 2001. In 2002, the next year, Kerala introduced paper based tax stamps. Today, more than 22 States (including Union Territories) in India are using approximately 11 billion tax stamps. 75 percent of these are in forms of full polyester security hologram and 25 percent paper based, with or without a holographic element. (see figure 3).

“TAX Stamps have always been an important authentication solutions used by Government authorities to curb the illicit trade, protect consumer and to increase the excise revenue. It was only 20 years ago; due to the globalization many countries started using tax stamps for the first time, especially in the Eastern Europe and Former Soviet Union. Today across the globe, 81 countries are using approximately 130 billion cigarette tax stamps and 14 billion alcohol tax stamps1. In India also, the revolution of first tax stamp was introduced by Tamilnadu State Excise Department in early eighties. Today, 22 States (including Union Territories) in India are using approximately 11 billion tax stamps per annum2. In contrast to globally, all these tax stamps are for alcohol, excluding cigarettes industry. The introduction of tax stamps has help State Excise Department in minimizing the hooch tragedies, curbing the menace of duplication, as well as in increasing the excise revenue collection. This article is an overview of TAX STAMPS in INDIA.

by C S Jeena

Figure 1: Example of a tax stamp with security cuts in form of “T”

Figure 2: Holographic tax stamp produced by holostik in 1999.

1. Reconnaissance International, UK2. Authentication Solution Providers’ Association (ASPA)

Tax stamps in india:An overview

Cover Story

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10

Jammu & Kashmir

Uttarakhand

Delhi

Uttar Pradesh

Sikkim

Arunachal Pradesh

Assam

Chhattisgarh

Goa

Karnataka

Kerala

Madhya Pradesh

ManipurMeghalaya

Mizoram

Nagaland

Orissa

Rajasthan

Tamil Nadu

Tripura

Puducherry

Telangana

AndhraPradesh

Lakshadweep

Maharashtra

Gujarat

Daman andDiu

Haryana

PunjabChandigarh

HimachalPradesh

Bihar

Jharkhand

West Bengal

Andaman andNicobar

Sources: ASPA and State excise tender documents.

15 States using full polyester based security hologram

6 States using paper based excise label

1 State using BOPP label

Only state in India which stopped using tax stamps

Tax stamps in India (2014-15)Figure 3:

Fact file

Population 1.27 Billion (2014)

GDP $ 2.067 trillion (2014)

GDP rank 7th (Nominal) / 3rd (PPP)

GDP growth 7.3% (2014-15)

GDP per capita $ 1627 (2014)

Annual tax stamps consumption: 11 billion

Cover Story



Latest developments:Recently, few States Excise Department have started combination of physical authentication with digital technologies. For example Andhra Pradesh is using security hologram comprising hologram for authentication and bar code for track & trace. In other case, Chhattisgarh Excise Department is using a combination of security hologram with SMS authentication. However, track and trace technology is not a “silver bullet” that will kill off counterfeit products and may itself have vulnerabilities. Physical and sensory authentication tools will still be needed both during and after the development of track and trace systems around the world. If we do not integrate both digital and nondigital (physical and sensory) authentication methods into our approach, then we risk wasting the major investments that are about to be made in track and trace. Examiner may need to verify the liquor bottle visually due to lack of availability of reader, power failure, network failures or simple time constraints at crowded control sites. An electronic authentication is not possible everywhere especially in remote areas so it generate a requirement of an instant visual authentication like a hologram with advanced levels of security features for authentication (One such example is Visa / MasterCardwhich is continuously using hologram as overt feature since 1998).

Why tax stampsbeing used by statesgovernment?Tax stamps in India are adoptedfor various reason. For example

a) Curbing Illicit liquorindustry:There has been a rapid rise in the production and sale of beverage alcohol in India, over the last five decades. Parallel to this, the illicit liquor industry has also seen an increase in India. A significant proportion of the alcoholic drink in India, is produced illicitly by the informal sector or consists of “Second or D Market” (tax evaded beverages) and therefore remain undocumented. There is also a considerable volume of smuggling of alcoholic beverages, especially scotch into the country. Since, no government revenues are paid, illicit liquor is sold at low a price which causes hooch tragedy. Although it has been speculated that such unrecorded consumption may be as much as 45 percent of all use, there is very little recent data. Evidence that such use is widespread is evident in the regular occurrence of poisoning (hooch tragedies) following drinking spurious liquor, often on a mass scale (Recent Maharashtra case is current example). Reports of excise raids on illegal distilleries and confiscation of illicit alcohol are also regularly featured in the media. Alone in Karnataka (2010-11), the department conducted 59,124 illicit distillation centres in State, registered 10,924 cases and arrested 4,597 persons. In Maharashtra, the state excise department from April-December 2014 witnessed over 2000 cases of illicit liquor business in the city and suburbs of Mumbai (Maharashtra statecapital).

b) Enhance State image/goodwillThe hooch tragedies occur due to illicit liquor consumption eroded the image of state governments which create challenge for state government to ensure consumer confidence.

Cover Story



Table 1: Revenue Receipts of State and Union Territories for F.Y. 2014-15 (Budget Estimates)

State A) Tax Revenue B) State own Tax Revenue C) Excise Revenue D) Contribution of Excise (INR million) (INR million) (INR million) revenue in State own tax revenue (%)

Andha Pradesh 5,42,364 37,39,77 40,267 11

Arunachal Pradesh 17,305 5,469 687 13

Assam 2,54,505 1,13,454 7,637 7

Bihar 6,74,380 2,56,630 37,000 14

Chhattisgarh 2,78,077 1,79,263 31,500 18

Goa 50,926 40,756 2,900 7

Gujarat 7,47,043 6,30,675 933 0

Haryana 3,43,847 3,03,748 43,500 14

Himachal Pradesh 87,023 53,383 9,407 18

Jammu & Kashmir 1,26,870 74,959 4,620 6

Jharkhand 2,26,913 1,18,127 8,500 7

Karnataka 8,64,298 6,98,698 144,300 21

Kerala 5,18,329 4,,24,675 32,084 8

Madhya Pradesh 6,66,711 3,89,899 67,300 17

Maharashtra 13,88,535 11,85,890 1,15,000 10

Manipur 23,742 6,208 145 2

Meghalaya 27,930 12,063 2,052 17

Mizoram 13,012 2,704 35 1

Nagaland 15,896 3,868 45 1

Orissa 3,81,521 1,98,627 19,838 10

Punjab 3,38,803 2,84,800 46,000 16

Rajasthan 6,34,105 4,06,550 53,188 13

Sikkim 14,535 4,974 1,209 24

Tamilnadu 11,08,496 9,18,354 64,830 7

Telangana 4,51,276 3,53,786 28,235 8

Tripura 31,134 12,784 1,795 14

Uttarakhand 1,21,573 80,233 13,4545 17

Uttar Pradesh 15,75,016 8,10,000 1,45,0005 18

West Bengal 7,32,108 4,54,140 38,104 8

Delhi NCR (UT) 3,15,710 3,15,710 36,000 1

Puducherry (UT) 21,000 21,000 5,600 27

Cover Story

c) Importance of exciserevenue:Revenue from excise duties on alcohol has always become a significant contributor for many States in India accounting for more than 10 percent of their own tax revenue. Under the

Indian constitution, liquor is one commodity which the States are entitled to charge excise duty (Article 246). In fact, the revenue from excise duties was the second largest source of income for States after Sales Tax (see table 1).

Source: Budget Document of State Governments / RBI State Finance Study 2014-15A) Tax Revenue = State own tax revenue + Share in Central TaxesB) State own Tax Revenue = Taxes on Income + Taxes on Property and Capital Transactions + Taxes on Commodities & ServicesD) Contribution of Excise Revenue in State Own Tax Revenue = C x 100 / B*Liquor prohibited State = Gujarat



Table 2: Comparison of state using tax stamps vs. not using any technology/authentication solution

State 2005-06 2010-11 Increased in Population of State Revenue (revenue) revenue in in 2011 (Cr) (Rs Cr) (Rs Crore) last 5 years

Tamilnadu 3,177 8,116 4,939 7

Uttar Pradesh 3,089 6,726 3,637 20

Andhra Pradesh 2,685 8,265 5,580 8

Maharashtra* 2,824 5,800 2,976 11

Bihar* 319 1,523 1,205 10

Cover Story

d) Increased tax revenueAccording to various reports and ASPA, the mandated usage of tax stamps in States such as Uttar Pradesh, Tamil Nadu, Uttrakhand, Madhya Pradesh, Pondicherry, Chhattisgarh etc. have increase revenue collection. For example Tamil Nadu and Uttar Pradesh, excise revenues were Rs 8116 crores and Rs 6725 crores respectively in 2010/11. By contrast, in states similar in size and population such as Maharashtra excise revenue was much lower at Rs 5800 crores. Recently Maharashtra excise minister Eknath Khadse announced to make security holograms compulsory. According to him this step will likely earn the state INR 14 billionin additional revenue.

e) Easy identification:Tax stamps (security hologram) plays an important role for visual authentication to differentiate fake liquor bottle from genuine, for both enforcement authorities and for individual consumer. These tax stamps are customized with overt and covert features, being overt for a lay man onsumer and covert & forensic feature for enforcement authorities which can be proof of the authenticity

of bottle. Further, holograms are be best overt authentication feature available, as an electronic authentication is not possible everywhere especially in remote areas (India).

f) Save enforcementexpenditure costAs counterfeiting, tampering, and diversion grows government need to allocate a greater portion of their security budgets toward efforts ensuring integrity of liquor.

ConclusionTax stamps is the main tool now used by the government and the enforcement to authenticate sealed IMFL and Beer bottles sold in the State. Hence the efficacy of these tax stamps, as an advanced and true tamper evident seal, has great value. This is true regarding other Indian States also. There are no magic bullets in anti-counterfeiting, but, it can be curbing to a great extent with proper combination of overt and covert feature, and proper anti-counterfeiting strategy comprising proper co-ordinationbetween government officials, enforcement teams and anticountering technology suppliers.

* States not using tax stamps.



Global View

Despite accelerating pace of growth in the share of privately-owned firms due to mounting sense of urgency to ensure that commercial rights granted to them by respective jurisdictions are not merely nominal protection mechanisms by employing product security solutions; governments accrossthe globe and their affiliated public or semi-public institutionscontinue to dominate the demandside of the product security (product authentication/track/trace systems) market.

The situation and market trajectory of product security solutions in Turkey is no exception in this regard, and goes hand in hand with the prevailing global trend. Attempts of Turkish government to design and implement product security solutions to reap mutiple benefitsas diverse as safeguarding publichealth, securing high amount of tax revenues and protecting both consumer and commercial rightsvia installing track and trace systems that cover various vital goods go back to early 2000s.

The current situation in Turkey with respct to different product security solutions enforced by the government is as follows:

- The tax stamp system applied to tobacco products and alcoholic beverages since 2007 is being implemented by the Presidency of Revenue Administration, a Finance Ministry affiliate institution.

- Security holograms applied to books, CDs and other cultural works are used by the Ministry of Culture and Tourism.

- The system that enables authorities to track human medicinal products circulating within the pharmacy chain and which facilitates the prevention of potential movement of counterfeited and smuggled medicines or any other abuses of the system via applying two-dimensioned data matrixes is carried out by the Ministry of Health.

- The track and tracing system that operates by adding a special chemical liquid called ‘national marker’ to gasoline, diesel and other petroleum products is implemented by a Energy Ministry affiliate institution, namely the Energy Market Regulatory Authority.

For the time being, no other products, except those cited above, are tracked or traced by government agencies using any type of security solution. However, there has been extensive press coverage recentlymaking the headlines across national dailies, aboutthe plans and intentions of the Ministry of Food, Agriculture and Livestock and Ministry of Health to install a track and trace system for sensitive food products such as drinking water, tea, honey, olive oil, baby food, energy drinks, dietary supplement and vegetable oil.

As we learned from the press realeses, the implementation of a system tailored to track these 7 group of food products via uniquely-numbered labels has been postponed to the begining of the next year(2016) due to mounting pressure and lobbying

by interest groups predominantlyconsisting of large industrial associations made up of food producers that consider a massive project of this nature would bring unbearable cost to their enterprises.

On the other hand, Ministry of Health has been carrying out preparational operations with respect to a security system that would enable the related public authority to track drinking water and cosmetics, a yet another significant step taken in the context of government’s wider attempt to bring the circulation of some crucial products under control.But so far, there has been no official announcement made nor any declared information regarding legal and technical dimesions of such a project.

Tax Stamp SystemThe main motivation and logic behind government’s desire to track and trace tobacco products and alcoholic beverages, as briefly stated above, is the necessity to guarantee the high amount of tax levied on these products. Both tobacco products and alcoholic beverages alike, irrespective of whether they are domestically produced or imported, are taxed quite heavily in the form of one-time imposition of a high rate of excise duty (special consumptiontax) and value added tax.

Since the highly complicated and eleborate nature of the computation method of excise duty and value added tax for each one of these products is beyond the scope and aim of this article, we will be brief on technical details by noting only that the percentage of tax

product security solutionscurrently implemented in Turkey



Global View

amount in relation to the unit price may exceed 80% for some products and the total annualtax derived from these two group of products (tobacco products and alcoholic beverages) has reached approximately 10% of the aggregate national budget revenue.

Serialisation of MedicinalProductsThe primarydrive for the surveillanceof human medicinal productsthrough serialisation method which would pose potential risks to the wider public health in case of mass circulation of counterfeited or smuggled products, on the other hand,ismore associated with the government’s desire to stem grave financial losses that would be otherwise suffered by the Social Security Institution, rather than ensuring the collection of tax amounts levied on each unit package of medicines.

The Social Security Institution is a public body covering the medical expenses of almost the entire population within the context of the ‘general health insurance scheme’ already in effect for many years now. Serialisation method which functions by implementingunique 2D codes to the inner unit packages is employed by Health Ministry. These 2D codes provide the feature of uniqueness to all unit medicines which in turn enable Social Security Institution, the agency that buy theoverwhelming majority of medicines in the market, to successfully track medicines and determine any wrong-doing or abuses.

Add to that, systematic and regulated organization of the pharmacy chain, besides the Social Security Institution being virtually the sole buyer in the medicine market, have also contributed to the success of the system.

Holograms in Cultural and Artistic ProductsGiven the fact that books and CDs are taxed with a mere 8% VAT, aninsignificant amount compared to the heavy taxation of some of the products cited above, the principal stimuli for the Ministry of Culture and Tourism to includebooks and CDs within the framework of ‘track&trace system via security holograms’ can be described as the Nation’s longstanding effort to keep up with the need to reduce the number of cases of copyright violations that are notoriously detrimental to the development of cultural and artistic production. The system operates with one single firm authorized by the concerned public body to produce and distribute security holograms to the entire market. This system has so far delivered on its original goals of coping and eventually diminishing the number of unauthorized circulation of cultural and artisitic works such as books and CDs.

National Marker SystemThe high tax content of oil products, analogues to that of tobacco products and alcoholic beverages, leaded to the emergence of urgent need to track and trace fuel for the sake of securing such a significant amount of tax for the national budget.This mounting need was finally satisifed to a

gerat extent by the establishment of the ‘national marker system’, a tracking mechanism that operates by adding a speacial chemical mixture to all oil products. This tracking scheme is carried out and supervised by the Energy Market Regulatory Authority to tackle illicit trade of fuel, which would otherwise be widespread in the absence of such an effective security solution due to Turkey’s geographical proximity to world’s top oil producers and its heavy reliance on importation. Considering that approximately %17 of the national budget is made up of VAT and excise duty generated from oil products, the vitality of installing a tracking system of this nature become more evident.

As eleborately cited above, all four major product security systems in Turkey are being enforced and carried out by the government agencies. No matter how fast the market share of private actors in the product security sectorgrows, the sheer importance of the strategic concerns and dimensons such aspublic health, commercial rights, budget targets and to some extent national security which are all inherently associated withproduct security is likely to keep government and its affiliated institutions as the leading marketplayers in coming years.

Diyadin YakutTax InspectorFinance Ministry

A. MenafProduct Track&Tracing ExpertFinance Ministry



aSpa Vp attends workshop on stolen and falsified medicines in London

aSpa participated atpharma pro & packExpo 2015

aSpa enteragreement withReconnaissancefor upcomingindustry events

ASPA News

ASPA Vice President Nakul Pasricha attended a workshop onStolen and Falsified medicines, hosted jointly by KPMG and The Global Fund to fight AIDS, Tuberculosis and Malaria, held in London on 24th and 25th June, 2015.

The workshop had attendees representing global pharma companies, solution providers as well as experts in the field of

drug counterfeiting. The agenda focused on coming up with practical, implementable ways inwhich pharma companies can join hands with solution providers as well as donor agencies like the Global Fund in order to tackle theproblem.

Mr. Pasricha gave a presentationhighlighting the advances made in India both in terms of enacting regulations as well as

implementing solutions that can satisfy those regulations. India’s leading role in countering this issue was well-appreciated and recognized.

The group agreed to work together in the coming months to ensure that the plans laid out at the workshop are followed through and implemented.

Source: www.aspaglobal.com

The 3rd international edition of Pharma Pro&Pack Expo 2015 was held on May 13 to 15, 2015 at Mumbai Exhibition Centre along-with concurrent exhibitions PharmaLab Expo, iPHEX and Reverse Buyer & Seller meet.

The 3rd edition is the industry’s very own exhibition to offer a common business platform for the pharmaceutical industry and jointly organised by GPE Expo Pvt. Ltd, Pharmexcil, EEPC India and Indian Pharma Machinery

Manufacturers Association. ASPA was the association partner for this event and exhibited at the Show. ASPA exhibited at the event with an aim to create awareness of the ASPA and importance of authentication solutions for pharmaceutical industry. The next edition of Pharma Pro Pack & Expo will be held on April 27- 29, 2016 at Mumbai Exhibition Centre, Mumbai, INDIA.

For more information visitwww.pharmapropack.com

ASPA has partnered with Reconnaissance International for following important industry events;- Tax Stamp Forum, 11-13 November, 2015(Miami, USA), http://www.taxstampforum.com/- The Holography Conference, 2-4 December, 2015 (Shanghai, China), http://www. theholographyconference.com/- High Security Printing Asia, 7-9 December,2015 (Jakarta, Indonesia), http://www.hspasia.com/

All ASPA members are entitled for special 20% discount on delegate fees at all these events. To avail the discount, please contact KATE POWELL, Conference Manager, Reconnaissance at [email protected] or ASPA Secretariat at [email protected].



Counterfeit Blackhawks gear worth $180,000 seized during Finalwww.chicagotribune.com

April 2015: 75,000 counterfeit sunglasses seized at Mumbai portwww.dnaindia.com

June 2015: Counterfeit medicines worth £16m seized in Britain’sbiggest ever haulwww.mirror.co.uk

July 2015: Over 8 million counterfeit cigarettes seized inGrâce-Hollognewww.brusselstimes.com

JULY 2015: Police seize counterfeit watches, clothing andviagra worth £2 million in a series of raids in the Strangewaysareawww.manchestereveningnews.co.uk

July 2015: Counterfeit notes seizedwww.thehindu.com

July 2015: Italy Seizes 600K Counterfeit Condoms Made withNoxious Chemicalswww.news.vice.com

Jun 2015: Perth counterfeit cash manufacturer raided, fake$50 notes seizedwww.abc.net.au

July 2015: Customs Seizes $6 Million in Counterfeit Van Cleef &Arpels Jewelrywww.jckonline.com

July 2015: KPDNKK seizes counterfeit mobile phones worthRM500,000www.nst.com.my

July 2015: Tk 25 lakh fake stamps seized, 2 heldwww.thedailystar.net

June 2015: Large quantity of packaged water bearing fake ISImark seizedwww.business-standard.com

July 2015: Fake L&T electronics shops busted, items worth Rs25 lakh seizedwww.iamin.in

July 2015: Fake iPhones being sold in popular Delhi marketswww.indiatoday.intoday.in

July 2015: Police in China seize 20,000 tonnes of low-grade‘fake’ salt sold to restaurants and supermarketswww.scmp.com

July 2015: Fake rice seized in Davao submitted for lab analysiswww.cnnphilippines.com

Counterfeit seizure report

Industry Updates

11–13 NOVEMBER 2015Miami, USAThe only global event to focus on strategic and practical solutions to protect government revenues and combat the illicit trade in tobacco and alcohol.www.taxstampforum.com

07–09 DECEMBER 2015Jakarta, IndonesiaStrategies and solutions for printing banknotes, passports and identity documents across Asia, the Middle East and Africa.www.hsp-asia.com

02–04 DECEMBER 2015Shanghai, ChinaThe event examines all aspects of commercial holography and holographic technologies, in particular their traditional use in authentication and security, packaging and printing.www.theholography conference.com

Email us at [email protected] for more detailsRECONNAISSANCE INTERNATIONAL Tel: +44 (0)1932 785 680 www.reconnaissance-intl.com

ASPA members save20%standard delegate rates

ASPA AD.indd 1 16/07/2015 15:01



Industry Updates

Publication Title Int. Application Applicant / InventorDD.MM.YYYY Class Number

26.02.2015 WO/2015/103396 A61J 1/03 PCT/US2014/073005 I-property holding Pharmaceutical product corp. / Glendenning, Packaging to prevent paul Counterfeits co., Ltd.

Brief Abstract: Pharmaceutical tablets and dosage forms are stored in a blister pack (24) or other type ofpackaging (24) which include additional anti-counterfeiting measures that are difficult to simulate and easy toreveal with a laser pointer (22). The blister pack (24) is embossed with a hidden security feature (20) includinghidden information (46) that is revealed only when a laser beam is directed through the packaging (24) to bedeflected at the hidden security feature (20). The hidden security feature (20) may also accompany other covertand/or overt security features, including multi-level hologram features (60, 78) embossed into the blister pack(24) at the same time as the hidden security feature (20).

01.07.2015 2888116 Security document B42D 15/00 13750059 Bayer materialscience and/or document of value ag / tziovaras containing a visually changeable georgios window with a hologram Brief Abstract: : The present invention relates to a security document and/or document of value with a hologramin a visually changeable window as a novel security element, and also to a method for producing the same.

18.06.2015 20150170019 Vehicle G06K 19/16 14414499 Tönnjes ISI Patent identification means Holding GmbH / Björn Beenken

Brief Abstract: A vehicle identification means (10) that has an at least partially electrically conductive film (12)and a hologram (36) and/or a reflective film. In addition, at least one data carrier (26), which can be read out in acontactless manner, having an antenna is provided. The hologram (36) is implemented as an antenna for the datacarrier (26). A separate antenna is therefore no longer necessary. In addition, multiple antennas can be providedin parallel.

25.06.2015 20150174945 Methods for B42D 25/378 14406903 SICPA HOLDING SA / printing tactile security features Christophe Garnier

Brief Abstract: The present invention is related to a process for manufacturing a security feature comprising a tactile pattern, said method comprising the steps of applying on a substrate a radiation-curable basecoat composition by a process selected from the group consisting of inkjet, offset, screen printing, flexo printing and rotogravure; at least partially or fully radiation-curing said radiation-curable basecoat composition so as to obtain a radiationcured basecoat; applying on the radiation-cured basecoat obtained under step ii) a radiation-curable topcoat composition in a form of indicia by a process selected from the group consisting of screen printing, flexo printing and rotogravure; radiation-curing said radiation-curable topcoat composition so as to form a radiation-cured topcoat, wherein the radiation-curable basecoat composition and/or the radiation-curable topcoat composition comprises one or more machine readable feature substances independently selected from the group consisting of cholesteric liquid crystal pigments, luminescent compounds, infrared-absorbing compounds, magnetic compounds and mixtures thereof, and wherein the radiation-cured basecoat has a surface energy at least 15 mN/m less than the surface energy of the radiation-cured topcoat. The present invention is furthermore related to a corresponding security feature and it use for the protection of a security document against counterfeiting or fraud.

Global patents



Upcoming events PUBLISHED BYAuthentication Solution Providers’ Assciation(ASPA)

EDITORIAL TEAMIssue Editor : C S Jeena

Designed & : EYEDEA AdvertisingPrinted by 1250/13, Govindpuri, Kalkaji, New Delhi-19 (India) [email protected]

www.artworxindia.in

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 Authenticatoni 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 6Nehru Place, New Delhi 110019, IndiaTelfax: +91 (11) 41617369Email: [email protected] Website: www.aspaglobal.com

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.

ASPA is the Authentication Solution Providers’ Association formerly known as Hologram Manufacturers Association of India (HoMAI). Founded in 1998 as HoMAI it has now been re-launched in 2014 as ASPA with a mission to provide a platform where authentication solution providers can converge and collaborate to develop customised cutting edge authentication solutions for their customers. For more details, please visit: www.aspaglobal.com

Diverse technologies, common goal.

* ASPA participating events. Meet us at these event’s to know more about us.

Industry Updates

Date Event Name / Place / Website

8-11 October, 2015 INDPACK 2015* Mumbai, India, www.indiapack.org

21-23 October, 2015 The Coin Conference Madrid, Spain, www.thecoinconference.com

11-13 November, 2015 Tax Stamp Forum Miami, USA, www.taxstampforum.com

25-26 November, 2015 Brand Protection & Anti-Counterfeiting Germany, www.brandprotectionevent.com

01-04 December, 2015 Label Expo Asia Shanghai, www.labelexpo.com

2-4 December, 2015 The Holography Conference* Shanghai, China, www.theholographyconference.com

7-9 December, 2015 High Security Printing Conference Jakarta, Indonesia, www.hsp-asia.com

Cartoon Corner



The Authentication Times issue 27 August 2015

Government & Nonprofit