In Kyrgyzstan, there is a proposal to introduce molecular marking of cement to combat the black market

The Kyrgyz Cabinet of Ministers has submitted for discussion a resolution on the introduction of a system for labeling certain goods with a molecular marker. The new requirements will primarily apply to cement, the trade of which the authorities intend to make as transparent as possible.

If the document is adopted, cement classified under HS code 2523 will be subject to mandatory marking starting June 1, 2026. Additionally, a ban on the circulation of remaining unmarked cement within the country will take effect on December 1, 2026.

The government notes that the introduction of molecular marking is aimed at ensuring complete accounting of cement production and import volumes, as well as increasing tax collection. The new system will allow for tracking the movement of products at all stages—from production and import to sale on the domestic market.

The use of molecular markers has already proven effective in combating the illegal trade of goods. In particular, following the introduction of fuel marking, tax revenues from oil traders increased by 8.5 billion KGS.

According to the document’s authors, the total production capacity of Kyrgyzstan’s cement plants reaches 8.4 million tons per year, though actual production volumes are significantly lower. At the same time, there are substantial differences in the level of tax payments by companies in the industry. This may indicate risks of concealing actual production and sales volumes.

In addition, there has been a significant increase in cement imports—up to 1.1 million tons in 2025—with a price difference of 1,800 KGS per ton between domestic and imported products. This may be a sign of customs value underreporting. Potential budget losses from VAT alone are estimated at approximately 237.6 million KGS per year.

The Cabinet of Ministers expects that the introduction of labeling will double the size of the legal cement market within three years and generate up to 3 billion KGS in tax revenue annually from manufacturers alone. It is also expected to “clean up” related industries—concrete and construction companies—which could bring in an additional 8 billion KGS per year to the budget.

The labeling system involves adding a special molecular marker to the product’s composition, which does not affect its physical and chemical properties. The presence of the marker will be verified using specialized equipment. The operator of the labeling system will be designated by the Cabinet of Ministers—it may be a government agency or an organization with state ownership.