The Association of Beverage and Juice Producers of Uzbekistan (UzBev) has called on the government to engage in dialogue regarding the implementation of the digital labeling (RM) system. The association highlights serious risks associated with the introduction of an aggregation stage, set for April 1, 2026, which involves tracking each individual bottle. In a statement, UzBev emphasized that while it fully supports the state's policy of digitalizing the economy and combating the shadow economy, the current model contains technical and economic contradictions that could lead to reduced production rates, decreased sales, and negative social consequences.

The association points out that the RM system is misaligned with beverage distribution practices. Uzbekistan has over 85,000 retail points selling water and soft drinks, with the majority being small shops, kiosks, and family-run outlets, many operating on consignment basis. The introduction of aggregation will limit deliveries to such points, potentially halting their operations and inadvertently expanding the shadow economy instead of curbing it. This could force thousands of legal retail points, even those with cash registers, to become unable to accept goods, undermining the very transparency the system aims to promote.

Technical complexities in aggregation and logistics processes further exacerbate the issue. The beverage industry typically operates on a pallet-based system, but the RM requires individual bottle tracking, leading to potential errors in scanning or misplacement of products. For instance, if a bottle intended for store A accidentally ends up in store B, the system may block its sale even if it is legally produced. Additionally, the system's sole operator, CRPT Turon, poses a risk of system failures that could disrupt product turnover, with all producers dependent on its stability.

UzBev also raises concerns about billions of sums worth of product residuals. Industry estimates place the annual market for water and soft drinks at around 23 trillion Uzbek soums, with approximately 3 trillion soums worth of products likely stored in warehouses at the time aggregation is implemented. These pre-packaged goods cannot be technically aggregated, necessitating costly and complex mandatory inventory processes. Other challenges include disproportionate fines based on total revenue rather than labeled products only, lack of stable mechanisms for returns, and absence of tools for retailers to verify codes, increasing error risks in small businesses.

The association proposes constructive solutions, such as implementing aggregation in a trial mode for at least 12-18 months, phasing in the system first in large retail chains with technical capabilities, allowing sale of residual products without mandatory inventory, softening penalties, and developing mobile applications for code verification. UzBev urges the government, relevant authorities, and the system operator to continue open dialogue with the industry and ensure a gradual, secure transition to digital labeling, arguing that effective digitalization must account for real market structures and business realities to avoid destabilizing the sector amid global economic uncertainties.

Source: www.gazeta.uz