In order to understand tax stamps and the process for ensuring secure and safe tax stamp application, there are a few components you must first understand. In this blog we’ll cover what a tax stamp is and what makes it different from other consumer stamps. We’ll also share common industries who may use tax stamps and identify automation equipment that could increase your packaging efficiencies.
What is a tax stamp?
A tax stamp is a sticker placed over the opening of a consumer good or controlled substance that prevents tampering and shows proof that federal tax was applied.
Tax stamps can be applied to an assortment of goods, such as alcohol, tobacco, cannabis, cigarettes, and more. Oftentimes tax stamps are also referred to as excise stamps; which are most commonly applied over the top of pouches, containers, caps on bottles, boxes, jars and more.
Elements of a Tax Stamp
A tax stamp is typically created using security papers and embedded data (i.e. codes or serial numbers). Modernized stamps may feature holograms, security inks, and more. These elements ensure the stamp is able to safeguard the product and is trackable through serialization technology.
The tax stamp contains seven important visual elements to protect its integrity:
- Unique identifier number
- Duty paid status
- Jurisdiction (country)
- Stamp type (product)
- Anti-copy linework
- Intaglio Image
- Color shift ink
For goods being exported internationally, a color-coded tax strip may be used on the product or good; tax strips on liquor bottles are a common example. Learn more about federal tax strips here.
Tax Stamp Application
In order to accurately and efficiently apply tax stamps to your consumer product or controlled substance, there are a few things you should know. For starters, do you work in an industry that requires this type of packaging/stamp?
The most common types of tax stamps we see at Multifeeder Technology are tobacco tax stamps, however drug tax stamps and cannabis tax stamps are on the rise. Any product or consumer good that needs to verify duty and tax payment will likely use a tax stamp. Products that need additional tamper evidence are also going to benefit from this sticker and the way it seals the product. Another common form of this sticker is a liquor tax stamp.
With cannabis production increasing across the United States, items like drug tax stamps could be new to some. And on top of that, figuring out how to apply the stamps in an automated way can be challenging. We have good news - keep reading to find out how you can automate the process of applying these stamps and get more of your product out the door in a compliant manner.
Tax Stamp Labeler & Equipment
For a tax stamp application to be successful and efficient, it’s essential to have the right automation equipment. The MFT Tax Stamp Labeling System is an excellent system to consider if you’re looking for ways to improve your automation process. The system features the following components:
- MFT Impresso Labeler
- Camera verification system
- Product rejection (for any products that don’t meet your standard specs)
Cannabis Tax Stamp Example
The MFT Tax Stamp Labeling System is built with guarding around the perimeter to ensure safety of personnel in the production environment. To begin, the labeling system will automatically accept a container of cannabis, typically this is in a jar or box format. Next, the container is transported by hugger belts to the MFT Impresso Labeler. This automatic labeler machine then applies a tax stamp to the top of the cannabis container.
Once the stamp is applied, an air cylinder folds the stamp around the edge of the container, making the stamp tamper-resistant. Because this security is in place, the stamp will need to be teared to open the container; a tear would indicate a container or product has been used or is not sealed for safety.
To ensure the stamp is safely and securely applied, a camera verifies its placement which can be reviewed on the digital screen in the top left of the system. If the camera identifies a stamp that has not been applied properly to the product, it will be removed from the line using the reject system. This reject system ensures that only excellent products will exit the system, saving you time and money in your packaging process.
If you consistently apply tax stamps to your products and goods but don’t have the appropriate automation equipment, you’re putting your process and business at risk. Reach out to one of our labeling experts to see if the MFT Tax Stamp Labeling System is right for your application. Click here or the button below to get started!