In jewellery the certificate and the packaging can be counterfeited as readily as the product itself.
Implementation
By giving every piece or series a unique number, Tagvex records every change of hands from the workshop to the wholesaler, the window and the service bench. An item brought in for maintenance or repair is scanned at service and its record is checked. A duplicated number comes to light through scans at an unexpected point or repeated scans.
Jewellery and watches carry high value in a small volume. The purity of gold, the quality of a stone or the movement of a watch cannot easily be judged by eye or in a brief look; the customer usually relies on the seller's statement and the documents accompanying the product. That makes certificates, warranty cards and boxes open to imitation too. Being able to verify the product's identity together with these documents is the basis of trust for both the customer and the point of sale.
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Data
Sector sales lost in the EU to counterfeit jewellery and watches (2013-2017 annual average)
Source: EUIPO, 2020 Status Report on IPR Infringement, Tablo 1, 2020Annual direct sales lost by the jewellery and watch sector in the EU (2013-2017 average)
Source: EUIPO, 2020 Status Report on IPR Infringement, Tablo 1, 2020Share of post and express consignments in seizures of counterfeit watches, bags, leather goods and jewellery
Source: EUIPO, 2020 Status Report on IPR Infringement (citing the OECD-EUIPO small parcels study), 2020Risks
A genuine product's certificate or warranty card can be copied and sold together with a counterfeit or lower-purity item. Without a verifiable link between the document and the product, the customer cannot know whether the document in their hand belongs to that product.
There is a risk of original parts or stones being replaced during watch servicing or jewellery repair. If the product's entry to and exit from service is not recorded, it becomes hard to determine at which stage a change noticed later took place.
Counterfeit watches and jewellery mostly circulate through post and express consignments in small-quantity parcels. These items can later be offered alongside genuine ones in online listings or at small points of sale.
Questions about the origin of inputs such as gold and diamonds are becoming steadily more important for customers and business partners. Without a record at product level, it is difficult to trace the care taken in the supply chain through to the finished item.
Regulation
Under the scheme, in force since 2003, every export of rough diamonds is accompanied by a valid certificate confirming the diamonds are conflict-free. Because the scheme focuses on trade in rough diamonds, the later changes of hands of a finished piece of jewellery can be tracked separately through the business's own records.
Since 1 January 2021, EU importers of tin, tantalum, tungsten and gold are obliged to run a five-step supply chain due diligence process based on the OECD guidance. Although businesses downstream of the metal stage are not directly in scope, they are expected to report their due diligence processes more transparently.
In force since 12 March 2021, the law requires actors in the supply chain to keep a record of whom they bought a product from and whom they sold it to, and makes the recall of unsafe products compulsory. Records of changes of hands kept at product level can support preparation for these obligations.
Rights holders can apply through the Ministry of Trade's electronic system for goods infringing their rights to be detained at customs; where there is clear evidence, the customs administration can detain the goods ex officio for three working days. Having information that identifies the genuine product ready makes assessing suspect consignments easier.
This section is for information only; official sources prevail for current obligations.
FAQ
Tagvex numbering can be done at unit or batch level. On small pieces where a label cannot be applied directly, the number is associated with the product box or the certificate and verification runs through those items.
No. Verification happens with the mobile app on a smartphone. The jeweller, the service technician, the dealer and the customer can all use the same method; no special reader or authorisation is needed.
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The first meeting reviews your product, sales channels and the risks you face, and recommends a suitable method.
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