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Tobacco Track & Trace in Ukraine -
compliant, secure, ready for eExcise.

Honeywell’s end-to-end solution for digital excise code scanning, seamless integration with Ukraine’s eExicse system, secure data exchange and real-time regulatory reporting

Building Trust and Transparency in Ukraine’s Tobacco Supply Chain

Ukraine has implemented a national electronic excise system (eExcise) as part of its Track & Trace (T&T) framework for tobacco products. The system is developed and digitally administered by the Ministry of Digital Transformation of Ukraine in cooperation with the Ministry of Finance and the State Tax Service of Ukraine.

Designed in line with Ukraine’s EU integration objectives and international commitments under the WHO Framework Convention on Tobacco Control (FCTC), the eExcise platform establishes a centralized digital infrastructure for monitoring the movement of tobacco products across the entire supply chain.

Ukraine’s Track & Trace system is intended to combat illicit trade and counterfeit tobacco products, strengthen excise tax control, and ensure full transparency and accountability — from manufacturing and importation to wholesale distribution, logistics operations, and retail sales.

Electronic Excise Amendments

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New Tobacco Track & Trace Rules  in  Ukraine

Under Law of Ukraine No. 3173-IX (based on Draft Law No. 8287), Ukraine introduced a national Electronic Excise system (eExcise) covering tobacco products, alcohol beverages and liquids for e-cigarettes.

The eExcise system is digitally administered by the Ministry of Digital Transformation of Ukraine in cooperation with the Ministry of Finance and the State Tax Service of Ukraine.

The reform introduces mandatory digital traceability at the unit-pack level. Each pack must carry a unique DataMatrix code (ECC 200) compliant with ISO/IEC 16022 standards.

All participants, from producers to retailers, must implement end-to-end systems for unit-pack level traceability.

This requires scanning production or aggregate codes and reporting all data directly to the eExcise system. These measures are designed to ensure fiscal control, protect legitimate market players, and eliminate illicit trade.

Compliance Timeline & Implementation Phases

Ukraine adopted a phased implementation model to allow businesses to adapt their IT and logistics systems.

Approved Implementation Schedule:

  • Until 11 October 2026 – The system operates exclusively in test mode.
  • 12–31 October 2026 – Mandatory registration of economic operators, creation of electronic cabinets and assignment of identifiers.
  • From 1 November 2026 – Full operational launch of all components of the eExcise system. Digital marking and reporting become mandatory for tobacco products.
  • Until 1 May 2027 – Businesses may return unused paper excise stamps.

Paper excise stamps remain permitted during the transition period in accordance with CMU Resolution No. 1756, but their use will be discontinued after the final deadline.

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Risks and Penalties for Non-Compliance

Non-compliance with excise legislation and digital reporting obligations may result in significant financial penalties under the Tax Code of Ukraine and related administrative legislation.

Depending on the nature of the violation, sanctions may include:

  • For Legal Entities:
    • From UAH 17,000 (minor administrative violations)
    • Up to UAH 500,000+ for serious breaches related to production, storage or circulation of unmarked excisable goods
    • Confiscation of goods and equipment in severe cases
  • For Company Officials:
    • From UAH 8,500 to UAH 34,000 for violations of excise procedures
    • Higher fines for repeated offenses
  • For Entrepreneurs / Individual Operators:
    • From UAH 17,000 to UAH 102,000, depending on the type and severity of violation
  • Additional Risks:
    • Suspension or revocation of production/import licenses
    • Seizure of goods
    • Administrative or criminal liability in cases involving large-scale illicit trade

Sanctions depend on the type of violation (absence of proper marking, failure to register movement events, obstruction of inspections, use of non-compliant codes, etc.), and repeat offenses may result in increased penalties.

Explore Key Components of Ukraine’s eExcise Track & Trace System

Collect Track & Trace data across the supply chain and securely transmit it to the national eExcise platform in full compliance with Ukrainian legislation and technical regulations.

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Production Codes
(Unique Identifiers)

Each unit pack must carry a production code generated via the eExcise system. Optional "alternative codes" can also be linked.

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Challenges Faced by Stakeholders

Manufacturers, importers, distributors, logistics operators, and retailers face several critical challenges in aligning with Ukraine’s eExcise and Track & Trace requirements. Each stage of implementation requires precise technical and operational coordination to ensure compliance and maintain business continuity.

System Integration

Aligning production lines, serialization systems, warehouse management systems (WMS), and ERP platforms with the national eExcise API infrastructure.

Event Accuracy & Timing

Ensuring correct timestamp generation, proper registration of aggregation and disaggregation events, accurate shipment declarations, and correct sequencing of dispatch and receipt confirmations.

Transition Period Management

Handling the coexistence of paper excise stamps and electronic DataMatrix codes during the phased rollout, including correct operator registration and system configuration before full mandatory enforcement.

Operational Efficiency

Maintaining regulatory compliance while minimizing disruption to manufacturing throughput, aggregation processes, logistics workflows, and retail operations.

Data & Error Management

Managing API rate limits, processing standardized response codes, handling validation errors, and implementing retry mechanisms that prevent duplicate submissions or inconsistent reporting.

Cybersecurity & Infrastructure Resilience

Ensuring secure data transmission, protection against cyber threats, and operational continuity in conditions of increased infrastructure risks and potential connectivity disruptions.

Unlock Value: Master Ukraine Supply Chain Compliance

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Your End-to-End Compliance Partner for the Ukrainian Market

We deliver a complete, reliable compliance solution tailored to Ukraine’s eExcise and Track & Trace requirements. Our system supports every stage of your operations — from production and import to distribution and retail — ensuring full legal compliance while giving you real-time visibility and control over your supply chain.

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– who we are –

Let's improve your supply chain

Found in 2018 and based in Germany, we are a young international team of Software developers committed to Agile approach and high quality timely delivery of integrated solutions.

Compliance and Operational Efficiency

How Our Solution Supports Ukraine’s eExcise Compliance

With Ukraine’s eExcise system entering full implementation, every movement of tobacco products — from warehouse receipt to outbound dispatch — must be properly scanned, recorded, and reported to the national platform. Our Track & Trace solution is tailored for distributors, importers, wholesalers, and logistics operators operating under Ukrainian regulations.

Rather than adapting manufacturing-focused tools, we concentrate on what matters most to supply chain operators: seamless compliance embedded into daily warehouse and transport workflows.

Quickly scan and register incoming shipments into your warehouse, with automatic timestamping, DataMatrix validation, and secure reporting to the eExcise system.

Create, split, or reorganize pallets, cartons, and master cases while maintaining full aggregation logic. Parent-child relationships are automatically updated and reported in compliance with Ukrainian requirements.

Whether delivering to retail chains, transferring goods between warehouses, or processing returns, each dispatch event is securely transmitted to eExcise, including shipment identifiers and transport references.

Integrated with your existing WMS, ERP, and scanning infrastructure, ensuring real-time inventory accuracy while reducing manual operations and duplicate data entry.

Our API-first architecture connects smoothly with enterprise systems and mobile devices, minimizing implementation time and operational disruption.

Join our dynamic development team and help build a better future!

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Prepare Your Business for Ukraine’s Track & Trace

— Talk to Our Experts!

Introduction to Ukraine’s Tobacco Track and Trace System and Honeywell’s Enabling Solution

Overview of Ukraine’s Tobacco Track and Trace Requirements

In alignment with the European Union’s Tobacco Products Directive (TPD), the WHO Framework Convention on Tobacco Control (FCTC) and Ukraine’s national excise reform, Ukraine has implemented a comprehensive electronic  Track and Trace (T&T)  system for tobacco products through the eExcise (Electronic Excise) platform. This system is designed to:

  • Combat illicit trade and counterfeit tobacco products.
  • Ensure compliance with excise tax regulations.
  • Provide transparency across the supply chain—from manufacturing to retail.
 

Key components of Ukraine’s T&T system include:

  • Unique Identifier Codes (UICs) on every tobacco product unit.
  • Mandatory data capture and reporting  at every stage of the supply chain.
  • Secure data exchange with national and EU-level repositories.
  • Real-time traceability for enforcement and auditing purposes.

Challenges Faced by Market Participants

Manufacturers, importers, distributors, logistics providers, and retailers face several operational challenges in complying with Ukraine’s eExcise and T&T regulations:

  • Integration of T&T processes with existing production lines, warehouse management systems (WMS), transport management systems (TMS), and ERP platforms.
  • Real-time scanning, aggregation, and reporting of unique excise identifiers during shipment and receipt.
  • Ensuring hardware and software compatibility with government-approved digital excise systems.
  • Maintaining regulatory compliance while preserving operational speed and supply chain efficiency.


How Honeywell’s Solution Supports Compliance and Efficiency

Honeywell provides a scalable, secure and field-proven solution designed to meet the requirements of the Ukrainian Track & Trace system for tobacco products and eExcise. Our solution includes:

1. Advanced Data Capture Devices

  • Rugged handheld scanners and mobile computers (e.g., Honeywell Dolphin™, CK65) engineered for high-volume barcode scanning in manufacturing plants, warehouses, and retail environments.
  • Accurate and reliable scanning of UICs in various formats and conditions.


2. Integrated Software Platform

  • Honeywell Operational Intelligence™ for real-time data monitoring, reporting, and analytics of T&T events.
  • Seamless and easy integration with ERP, WMS, and government eExcise systems through secure APIs and standardized data exchange protocols.

 
3. Secure Connectivity and Regulatory Compliance

  • End-to-end data encryption and secure transmission aligned with Ukrainian regulatory requirements.
  • Automated generation and validation of compliance reports required by the State Tax Service of Ukraine and EU standards.


4. Scalable Deployment and Local Support

  • Modular architecture adaptable for small distributors, national logistics operators, and large-scale tobacco manufacturers.
  • Local support, configuration services, and staff training to ensure smooth onboarding and sustained compliance.