Using Int'l Numbering stds.

What is barcoding?

Why Barcode?

What are horizontal applications of barcoding?

What are Key drivers for barcoding?

What are advantages of barcoding?

How to barcode?

What are relevance & benefits of using International Numbering stds. As part of barcode
symbology?

What is the scheme for financial assistance for registration for barcoding under (SSI-MDA) Ministery of Commerce, Govt. of India?

Who are eligible for funding under the scheme?

What are the guidelines for financial assistance under SSI-MDA scheme for registration for barcoding?

What id Quantum of Assistance?

What is Barcoding?

Barcoding is one of the IT tools used for automatic data capture. As opposed to manual data entry, which is tedious and prone to inaccuracies, errors, it enables data capture with 100% accuracy and in micro-seconds.
Barcodes are represented through a series of black bas & white spaces and printed as :-
i) part of product / consignment packaging (source marking)
or
ii) as barcoded labels (stickers) - generally pasted
or
iii) as tags (attached to items / consignments).

Barcodes can be used to represent information related to :-
i) Product attributes
ii) Other supplementary information - batch number, mfg/expiry dates, consigner / consignee etc.

When Int'l Numbering stds are used, as symbology, it enables universal & unique identificaion of companies and their products / consignments.

Why Barcode?

Barcodes are extensively used worldwide, over past 25 years across industry sectorsandtradefor a wide number of applications. Some applications of barcoding are : -
i) In manufacturing -
a) for inventory management of finished goods / raw materials
b) work-in-progress
c) product track & trace

ii) In retail -
a) at point-of-sale
b) stock management
c) demand forcasting
d) automated stock ordering
e) track & trace of products

iii) In distribution -
a) for ware-housing
b) cross-docking operations

iv) In transport -
a) for consignment track & trace
b) consolidation & container stuffing
c) ensuring correct dispatches and correlation between transport documents and consignments
d) asset tracking
e) facilitating trans-shipments
f) facilitating loading / unloading operations

v) In import-export infrastructure -
1. By Customs -
a) correlation of export-import documents with consignments
b) facilitating in physical consignments inspection
c) in transmission & processing of documents over EDI (Electronic Data Interchange)
2. By Custodians - Airport Authority of India / Seaports - in proper storage dispatch of goods during import-export operations.
3. By Freight forwarders - for global track & trace of consignments world-wide in multi-model transport.

What are horizontal applications of Barcording?

i) Facilitating generation of automatised packing lists, delivery challans, invoices.
ii) Facilitating generation of MIS reports through data capture of digitized information contained within barcodes and its integration with in-house software applications (ERP's etc.)
iii) Integration with EDI (Electronic Data Interchange)
iv) Streamlining of suply chain business process.
v) Enabling product recalls where required
vi) Will enable Airports Authority / Customs etc. to efficiently process import-export consignments clearance, timely loading of consignments etc.

What are Key drivers for barcoding?

Prevalent Int'l best practice for past 25 years.
i) Enhanced product / exporter's image by virtue of compliance with Int'l practice.
ii) Growing buyer requirements across industry segments.
iii) National IT Task Force, Govt. of India has mandated barcoding and DGFT has prioritized exporters as part of operationalisation of this national manadate.
iv) Automated physical goods flow normally precedes EDI which is a national priority.
v) Barcoded cargo gets faster clearance worldwide by Customs, freight forwarders etc.

What are advantages of barcoding?

The applications stated above would already give an insight into the many advantages of barcoding. To enumerate a few :-
i) Accurate stock management of raw-materials / finished goods.
ii) Effecting correct and timely goods dispatches and their track & trace.
iii) Removing repetitive and costly errors in manual data entry and associated administrative costs.
iv) Enabling speedy and accurate consignment clearance by Freight Forwarders / Airports Authority /Customs / Ports.
v) Enabling integration with EDI.
vi) Enabling systematic and scientific work processes.
vii) Enabling more stringent quality assurance.
viii) Enabling higher product acceptance globally and possible higher export price realization.
ix) Low barcoding costs v/s benefits and easy availability of service providers across the country.

How to barcode?

1) Barcoding companies are available across the country. They supply labels / tags as per supplier's / buyer's designs. Label cost is low (from 50 paise / label upwards). Alternatively barcodes can be printed on product package itself (if feasible)
2) EAN India, a non-profit organisation Govt-Industry initiative and responsible for allocation of International Numbering stds used in barcoding has been extending technical advice. EAN India's web-site-www.eanindia.com provides guidance on barcoding.

What are relevance & benefits of using International Numbering stds. As part of barcode symbology?

Worldwide, the de-facto standard, over past 25 years especially in retail all International Numbering stds (EAN.UCC) used to enable universal and unique product / company identification by supply hain trading partners. Retailers worldwide (K-Mart / J.C. Penny/ Otto Versand / Federated etc. ) already ask their Indian suppliers to barcode using these Int'l Numbering stds. Suppliers are free to use the Int'l symbologies recommended as directed by their buyers..

It is however beneficial if exporters can offer their buyers to accept barcoded goods following Int'l Numbering stds. This will offer the Indian exporters, the following additional benefits :-

i) Company data will be hosted by national EAN organizations. Use of Int'l Numbering stds (unique company prefix) will enable buyers using B2B internet exchanges. This will be the future direction of transacting business between buyers and suppliers.

ii) GCI (Global Commerce Initiative) comprising the world's leading FMCA mfrs / retailers have already endorsed use of these Int'l Numbering stds and will be doing so for textile / apparel and general merchandise as well. It will therefore be mandatory for global suppliers to adopt these stds in barcoding as well, besides in EDI processes.

iii) Facility for hosting products catalogoues electronically will be available at later date for B2B E-Commerce.

iv) Leading freight forwarders Europe have endorsed the use of these Int'l Numbering stds for unique consignment identification and their track & trace.

v) Large number of consumer products in India have commenced using these Int'l stds in barcoding allocated nationally. Overseas buyer's barcode numbers will not enable unique identity with supplying goods in Indian market place for compliance with the National IT Task Force mandate. It is therefore recommended to use one single Int'l Numbering std with barcoding for both domestic and international supplies.

vi) ECR (Efficient Consumer Response) movement has commenced in India as well. This will mandate in the coming years, use of barcoding following Int'l Numbering stds.

vii) Organised retail fas emerging in India will drive use of Int'l Numbering stds across industry segments.

What is the scheme for financial assistance for registration for barcoding under (SSI-MDA) Ministery of Commerce, Govt. of India?

In continuation to the Office Memorandum of even number dated 20th August, 2001 regarding approval of the Plan Scheme for Market Development Assistance for SSI exporters which came in to operation w.e.f. 30th August, 2001, it has also been Ministry of Commerce decided to include provision for financial assistance to SSI units to adopt Bar-coding. Accordingly, a component has been added to this scheme to provide for financial assistance to the tune of 75% of the one the time registration fee required to be paid by SSIs to EAN India (under Ministry of Commerce, Govt. of India) for adoption of Bar-coding.

Who are eligible for funding under the scheme?

(i) (a) Individual assistance for participation in overseas fairs / exhibitions.
(b) Individual overseas study tours, or tours of individuals as member of a trade delegation going abroad
(c) Production of publicity material for overseas publicity
(ii) Sector specific market studies by Industry Associations / Export Promotion
(iii) Initiating / contesting anti-dumping cases by SSI Associations.
(iv) Reimbursement of 75% of the registration fee paid to EAN India by SSI units.

What are the guidelines for financial assistance under SSI-MDA scheme for registration for barcoding.

Financial assistance will be given to SSI's for adoption of international numbering standards used in Bar-Coding / E-commerce applications. The first step towards adoption of bar coding, consists of applying to EAN India (Under Ministry of Commerce) for an EAN number to enable universla identification of their products worldwide for use with the bar code printed/labeled on the product package/consignment. However, SSI's intending to export exclusively to the USA and Canada need to use only a UPC number which would be allocated through EAN India. This same UPC number will be valid for exports to European countries as well. In case any SSI wants to export to countries other than USA and Canada, they need to use only an EAN - Code.

What id Quantum of Assistance?

EAN India charges one time registration fee of Rs. 15,000/- (Rupees Fifteen thousand only) from an SSI unit and Rs. 10,000/- (Rupees Ten thousand only) from a tiny unit. Financial assistance under the Scheme will be limited to 75 % of the above amount i.e Rs. 11,250/- ( Rs. Eleven thousand two hundred fifty only) fro an SSI unit and Rs. 7,500/- (Rupees Seven thousand five hundred only) for a tiny unit. In addtition. In addition, Rs. 3000/- (Rupees Three thousand only)is charged by EAN India as annual reneewal fee from all units.

What procedure has to be adopted for Financial Assistance?

Reimbursement under the Scheme will be available to registered SSI/Tiny sector units. Applicant unit should not have availed of any subsidy/financial assistance for the same purpose through any other scheme available through an industrial body or association with whom the company may be affiliated.

In order to avail of the financial assistance, an SSI/Tiny sector unit should first register with EAN for allocation of their unique EAN or UPC company prefix along with the necessary documents as detailed herein and requisite payment as detailed above (Rs. 15,000/- + Rs. 3000/- amounting to Rs. 18,000 for SSI and Rs. 10000/- + Rs. 3000/- amounting to Rs. 13000/- for tiny sector company).

After allocation of the EAN or UPC number, the concerned SSI/Tiny sector unit may apply to the Development commissioner (SSI) in form VI accompanied by a pre receipt in Form-VII for reimbursement of 75 % of the one-time registration fee paid (Rs. 11,250/- for an SSI unit and (Rs. 7,500/- for a Tiny sector unit against submission of the following documents).

1. Self declaration form, duly filled in (Form VII)
2. Copy of the allotment letter received from EAN India towards allocation of the EAN or UPA company prefix number.
3. Copy of the SSI/Tiny sector registration certificate.

The one time registration fee and annual renewal fee as mentioned in this scheme refers to the current fee structure stipulated by EAN India. In the event of any changes in the fee structure by EAN India, the revised fee structure will be applicable. Financial assistance shall remain unchanged at 75 % of the one-time registration fee.