In the area of international trade, there is a tendency to simplify and standardize processes inside and outside the company. Systems with GLN and GTIN numbers have been introduced exactly for this purpose. For the import of goods into the EAEU area as well as for their successful sale, a confirmation of conformity is required, for the issuance of which the GLN and/or GTIN is required. This article is about what GLN and GTIN numbers are, what they are used for, what advantages they have and what role they play in the EAC conformity assessment.
GLN number
What is the GLN number?
The GLN number is a global location number or global identification number. The international special code is used in electronic data exchange and e-commerce systems. It determines the exact location of manufacturer, physical objects and functional units.
The GLN number consists of 13 digits, the last of which is the check digit. The GLN provides a clear reference to the agency or production or functional unit of a company. This enables every unit required in the supply chain to be identified and a single e-commerce solution to be created between contractors.
Purpose of the GLN number
The GLN number helps to identify objects inside and outside the company. This number provides information about the type of property (e.g. production facility, sales office, company headquarters), region, postal address, contact details and persons, bank details, delivery conditions and restrictions, etc.
In particular, the GLN number is used to identify information about the following objects / subjects:
- function of the object
- manufacturer
- digital location
- actual location of the property
Strict standards are used for electronic data interchange (EDI). Electronic data exchange is therefore not possible without a GLN. As each country has its own coding systems in place, a consistent format should be used when creating international trade documents. The GLN number serves as a universal means of identification.
When using paper documents, contracts and invoices must include the names, addresses and details of the parties to the commercial transactions for each transaction. This can be error-prone and requires constant updating of all working documents. In the electronic document flow, especially with direct interaction between ERP systems (Enterprise Resource Planning), workstations and information systems of different business partners, it is sufficient to only enter the GLN number. It means that all required information can be automatically obtained. The data accessed by the GLN number is stored by partners in internal systems and in the global register.
With the help of the GLN number, objects are identified both inside and outside the company. If a company has to identify individual objects in the supply chain, a separate GLN is set up for each of them (e.g. for distribution centers in different regions). Therefore, one distribution center can be distinguished from another in the electronic document circulation.
In addition, the GLN number can be used to determine not only the location of objects, but also individual parts of these locations (e.g. floors, rooms, certain places on shelves, berths in the port, etc.). Separate GLN numbers do not have to be used with special components. One GLN number can be used for different shelves in the warehouse (in the form of GLN + x, GLN + y, GLN + z). This is particularly useful for inventory management and tracking solutions.
With the growth of the organization, its expansion, the opening of new branches, one GLN number may not be enough. In this case, additional numbers must be assigned. For example, numbers for different functionalities can be assigned to different departments: e.g. vehicle fleet, composition, accounting. Several different departments in a company can use different GLN numbers. This enables the partner to understand which department the documents need to be sent to. Such a structure is also relevant for companies whose structure has different manufacturers responsible for each industry.
GLN number in the EAC conformity assessment procedure
In recent years, changes have been made to the indication of GLN and GTIN numbers in the conformity assessment procedure. One of these documents is the Regulation of the Ministry of Economic Development and Trade No. 877 of December 30, 2020, which determines changes in the indication of the manufacturer's GLN number and the GTIN number of products in the EAC declaration process. On July 1, 2021, Government Resolution No. 936, which lays down the procedure for registering EAC declarations, and Government Resolution No. 935 amending Resolution No. 1856, were adopted.
According to the regulations, the following data must be provided in the application for the entry of the EAC declaration or when entering the information on the EAC certificate in the uniform register:
- the name and location of the manufacturer of the products, the address (addresses) of the place(s) of the activity for the manufacture of products, including the indication of the global location number GLN (Global Location Number)
If there is no information on the Global Location Number GLN (Global Location Number), the following information must be provided:
- another individual identifier which makes it possible to automatically identify the address (addresses) of the place(s) of the activity for the manufacture of products from the list of these identifiers
If there is no information about the global location number GLN and about another individual identifier that enables automatic identification of the address (addresses) of the place(s) of the activity for the manufacture of products, the following data is available to indicate:
- geographic (geocentric) coordinates (latitude, longitude) of the place (s) of the activity for the manufacture of products, which are determined from the signals of the GLONASS Global Navigation Satellite System
How to obtain the GLN number?
In order to receive a GLN number, a company must become a member of the national GS1 association. GS1 is a network of international not-for-profit organizations that are responsible for the standardization of bookkeeping and barcodes for logistics units. In each country there are official operators of the specified association who are involved in the examination of applications and documents, and the allocation of GLN numbers. In order to receive a GLN number, an application has to be filled out, a certain package of documents has to be provided and a membership fee has to be paid. Depending on the required number of GLN numbers, the annual turnover of the organization, the required additional numbers (e.g. GTIN), the price of the membership fee varies.
GTIN number
The GTIN (Global Trade Item Number) is the number of a specific product in the international product database. The GTIN number enables the product to be uniquely identified worldwide.
Special features of the GTIN number
- GTIN number does not contain any information about the product
- GTIN number is used to uniquely identify goods in every country in the world and cannot be assigned to any other goods. The administration of the GTIN number in each country is the responsibility of the GS1 organization
- GTIN number has a clear structure. It is structured according to certain rules. Depending on the intended use of the product, it can be assigned a GTIN number with 8, 12, 13 or 14 digits
- GTIN number is sent as a barcode according to the standard rules
Types of GTIN numbers
The length of the GTIN number depends on the type of product and the country in which it is sold. Here are the types of GTIN numbers that are most commonly used:
- UPC or GTIN-12 (in North America) - 12-digit number. Eight-digit UPC-E IDs must be converted into 12-digit UPC-A
- EAN or GTIN-13 (in Europe) - 13-digit number
- JAN or GTIN-13 (in Japan) - 8 or 13 digits
- ISBN (for books) - 13-digit number. If you only have an ISBN-10 identifier, you will need to convert it to ISBN-13 format
- ITF-14 or GTIN-14 (for multipacks) - 14-digit number
Use of GTIN numbers
GTIN number on the market
In order to sell or accept a product, a means of automatically identifying the product is required. A barcode is used for this so that all processes run quickly and without personnel errors.
Global Barcode GTIN is used precisely to create a single database of barcodes as a catalog of goods for the whole world.
GTIN number and mandatory product identification
Since 2019, the Russian Federation has introduced mandatory labeling of certain product groups in the “Chestny Znak” (“honest mark”) system. One of the steps in labeling goods is assigning a GTIN number. Without a GTIN code, it is not possible to mark goods and accordingly export them to the EAEU area.
If the products are subject to mandatory product labeling, the following must be observed:
- the products that are subject to mandatory product labeling may not be sold without a GTIN number. If the number is generated by the company, it is suitable for the company's internal accounting, but not for placing products on the market
- The numbers are assigned by GS1. The organization ensures that every item that goes on sale with a GTIN is assigned a unique code
- The Global Trade Item Number looks the same in all industries. The GTIN numbers for dairy products, medicines, shoes or other products are based on the same principle. No special equipment is required to get information about a product. The number is read by a standard scanner in a smartphone or numbers are entered on special pages.
Advantages of GTIN numbers
The GTIN number is used in 135 countries worldwide as it simplifies the movement of goods and the associated electronic documents between the participants in the supply chain. In addition, each item is clearly labeled at all packaging levels. The GTIN number has the following advantages:
- The GTIN numbers are suitable for all industries
- The GTIN numbers are unique in the world. GS1 Organization guarantees that each item number is assigned a unique number. There are 111 agencies in different countries that generate numbers and enter information into the general register.
- The GTIN numbers are protected against errors. The GTIN numbers have a fixed length and a simple number format. The number is easy to track in the global database. This means that the number is written and read correctly
- The GTIN numbers are suitable for all participants in the supply chain. The brand owner assigns a number to the product. But then it can be used by internal users and all trading partners. One number can be used for a number of identical products
- The GTIN numbers are used for automated data collection. The international GTIN number is not only applied to goods in the form of a barcode. It is entered as part of data matrix codes or RFID tags. The numbers can be quickly scanned in a production or warehouse and give the owner information about where the goods are
GTIN number in the EAC conformity assessment procedure
In recent years, changes have been made to the indication of GLN and GTIN numbers in the conformity assessment procedure. One of these documents is the Regulation of the Ministry of Economic Development and Trade No. 877 of December 30, 2020, which determines changes in the indication of the manufacturer's GLN number and the GTIN number of products in the EAC declaration process. On July 1, 2021, Government Resolution No. 936, which lays down the procedure for registering EAC declarations, and Government Resolution No. 935 amending Resolution No. 1856, were adopted.
According to the above regulations, the following data must be provided in the application for entry of the EAC declaration or when entering the information on the EAC certificate in the uniform register:
- Global Trade Item Number (GTIN) (if available, at the choice of the applicant)
This means that if the product is not subject to labeling in the “Chestny Znak” system (“honest sign”), the GTIN number is optional in the EAC declaration or EAC certification of the product and is at the discretion of the applicant.
How to obtain the GTIN number?
In order to receive a GTIN number, a company must become a member of the national GS1 association. GS1 is a network of international not-for-profit organizations that are responsible for the standardization of bookkeeping and barcodes for logistics units. In each country there are official operators of the specified association who are involved in the examination of applications and documents, and the allocation of GTIN numbers. In order to receive a GTIN number, an application has to be filled out, a certain package of documents has to be provided and a membership fee has to be paid. Depending on the required number of GTIN numbers, the annual turnover of the organization, the required additional numbers (e.g. GLN), the price of the membership fee varies.
The GLN and GTIN numbers were introduced to standardize and facilitate work within organizations and when selling goods. Their use can help to avoid human errors, to make the processes of the exchange of goods and data faster and smoother, to expand sales markets and to win new customers.