Frequently asked questions

Here you will find frequently asked questions regarding the evolution of the Michigan Department of Treasury's Encrypted Digital Stamp Program. 

Q: Why the change from the current system? 

A: Michigan’s current contract for Digital Cigarette Stamps expires in April 2022. A competitive procurement was conducted, and the State selected the solution proposed by SICPA Product Security because it provided the best value based on the proposed solution, vendor experience and team, and pricing. We are excited to be transitioning to the SICPATRACE® encrypted digital stamping platform which has been running successfully for more than 10 years for the other three digital tax stamp programs in North America (CA, MA, and Canada). With this flexible, shared platform SICPA can meet the evolving needs of the market while ensuring compatibility with the stamping equipment implemented in Michigan.

Q: What can we expect will be different? 

A: Our goal is to deliver the enhanced functionality and service with minimal disruption to Michigan Authorized Stamping Agents. Existing stamping equipment and hardware will remain the same. The main differences will be the new stamp design and a new stamp ordering system.

Q: Why an encrypted digital tax stamp? 

A: The SICPATRACE® encrypted digital tax stamp provides a range of authentication features to allow all stakeholders to confidently and immediately authenticate legitimate, tax-paid cigarettes from illicit products. The proprietary encryption built into the SICPATRACE® digital tax stamp ensures that only authorized field inspectors and enforcement agents will have access to the data associated with each tax stamp to validate legitimate operations and uncover illicit activity.

Q: What can I expect in the coming months? 

A: We plan to launch the new system in May 2022. Leading up to this transition, we will provide periodic program updates sent directly through the MiMATS system and posted to https://mitrace.com. In March and April, we will share more detailed information on the rollout, conduct training sessions, and open the online ordering system for the new stamp to ensure all stamping agents are prepared.

Q: Will I need to invest in new hardware or software?

A: No. The SICPATRACE® platform and stamps are fully compatible with the existing High Volume Stamping Machines (HVSMs) that are currently in use by Michigan Authorized Stamping Agents. 

Q: Will I get training? 

A: Yes. We will provide interactive, web-based training sessions and will publish training materials on the new Stamp Ordering System for Authorized Stamping Agent personnel. Training sessions will be offered in March/April timeframe to prepare for the launch of the new ordering system.

Q: Will the stamp look different? 

A: Yes, the stamp features a new design and we look forward to sharing a sample as we get closer to the rollout date.

Q: Is it as secure as the previous stamp? 

A: Yes, the new stamp features a multi-layered approach to security to ensure that all stakeholders have a way to authenticate the stamp – and to ensure that the stamp cannot be successfully counterfeited, replicated, or reused. SICPA is known globally as the leading provider of anti-counterfeiting and fraud prevention solutions for tax stamps, banknotes, identity credentials, product security, and much more.

Q: Can we use up our tax stamp inventory? How long will current stamps be honored? 

A: As we publish more details on the rollout plan, we will confirm when you can start using the new stamps and when you must stop using the old stamps. If at the time of the cutover, you have any remaining inventory of the current stamps, those stamps will be returned to Treasury for destruction. Current stamp orders will be fulfilled with the existing stamps and you may continue to order stamps as needed.

Q: Will we be allowed to comingle the stamps?  

A: No. We plan to have a clean transition window from the old stamp to the new stamp to ensure effective tracking and management of the associated data. Specific cutover plans for your location(s) will be provided in the coming months.

Q: If we have an inventory of stamped packs that have not been sold, will we need to restamp these packs with the new stamp after the transition? 

A: No. Once the cigarette packs have been stamped, they will not need to be restamped. Specific cutover plans for your location(s) will be provided in the coming months.