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Frequently Asked Questions (FAQs)

Frequently Asked Questions (FAQs)

1. What is the purpose of the TTS?

The TTS system is being implemented to:

  • Safeguard the interests of tax revenue collection
  • Act as a deterrent to tax fraud
  • Reduce illicit trade and counterfeiting
  • Ensure a level playing field for all stakeholders in notified sectors

2. What is the mandate for the Track and Trace System?

Section 40C of the Sales Tax Act, 1990 read with Chapter XIV-B of the Sales Tax Rules, 2006 mandate FBR to implement “monitoring or tracking of production, sales, clearance, stocks or any other related activity through electronic…means.”

3. What is a UIM?

UIM stands for Unique Identifying Mark, it is the tax stamp. The term “UIM” and “tax stamp” are synonymous and used interchangeably.

4. Which products must be stamped?

All products that are manufactured/imported in the notified sectors, including Tobacco, Cement, Sugar and Fertiliser.

5. Which tobacco products must be stamped at the inception of the TTS?

The initial focus will be on packs of cigarettes. FBR will notify manufacturers/importers when additional tobacco product categories will become part of the TTS.

6. Where does the stamp need to be located on tobacco?

The stamp needs to be applied over the package opening such that opening the pack of cigarettes destroys the UIM. However, FBR will work with the manufacturer to confirm the location that meets this requirement and is readily accessible based upon the packaging line equipment in use.

7. Where does the stamp need to be located on cement, sugar and fertiliser products?

The stamp needs to be applied on the surface of the product in a location that is most accessible based upon the presentation of the bags to the applicator.

8. What do the manufacturers/importers need to provide?

Manufacturers/Importers will need to provide:

  • High speed internet connectivity
  • Suitable location for the installation of equipment
  • Isolated power terminal point of 220v 15 Amp.
  • Floor space for the UIM applicator
  • Additional detail will be provided in the Tri-Partite Agreement.

9. How are the stamps affixed by manufactures/importers?

Stamps are affixed using an automated applicator.

Manufacturers/Importers may also contact the manufacturer of automated applicators directly to procure the applicators.

10. What happens when the production monitoring system goes down?

The production monitoring system contains an external storage device. If network connectivity is lost, the system will continue to operate and will upload the data when the connection is restored.

A help desk operating is also available to address any technical issues. Technical issues that cannot be resolved remotely will be addressed with an onsite visit to troubleshoot and restore operability.

11. How do the stamps need to be stored?

Stamps need to be stored in a dry, climate-controlled environment between 5 degrees Celsius to 30 degrees Celsius, with relative humidity less than 50%.

12. What are the suitable temperatures for stamp application?

The stamps can be applied to products that are in the range of 5 degrees Celsius to 90 deg Celsius.

13. How will the stamps be delivered?

The stamps will be delivered by secure truck logistics to the premises of the manufacturer/importer specified at the time of order.

14. What is the delivery time for the stamps?

The stamps will be delivered within fourteen (14) days from the order approval date.

15. Are tobacco exporters required to order separate set of stamps for export goods?

For Tobacco manufacturers that already comply with exporting requirements to countries requiring tax stamps, an additional export UIM is not required.

Tobacco manufacturers producing product for export to a country that does not already have a tax stamp program, will be required to purchase and apply Export UIMs. These UIMs have a different appearance, but the same size, as compared to the domestic tobacco tax stamps.

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