In this letter, we propose a new scheme for the tag structure of the EPCglobal Class-1 Generation-2 (EPC C1 Gen2) standard equipped with a channel encoding block and the corresponding decoding block in the receiver of the reader system. The channel coded tag is designed to fully accommodate the EPC C1 Gen2 standard. The use of the proposed channel encoding block increases the number of logic gates in the tag by no more than 5%. The proposed reader system is designed to be used in the mixed tag modes as well, where the channel coded tags and existing tags co-exist in the same inventory round. The performances of the proposed tags and the corresponding reader systems are also presented by comparing the number of EPC error frames and the tag identification time with those of the conventional tags and reader systems.