Key conclusions
The problem of counterfeit goods is a global one and is intensifying
“It is obvious that the problem of counterfeit goods is not in our country alone. <…> Let me begin with the research carried out by leading international associations in this sphere. They assert that the problem is a global one, continues to exert pressure on countries’ economies, entails risks to the health and life of consumers. In 2021, virtually all researchers confirm that about 3 million jobs are lost in the world every year because of parallel production and 1.5 million people lose their lives per year from taking substandard medicines. The studies also all agree that the main source of counterfeit goods are the countries of South-East Asia, while the US is one of the biggest consumers of these goods,” Baysolt Khamzatov, First Deputy Director, National Scientific Competence Centre in the Field of Combating Illegal Circulation of Industrial Products.
“There are counterfeit goods in all countries. On any Mediterranean beach, one can buy virtually anything. Now that there are parallel imports, the danger of counterfeit production is growing. Goods subject to labelling are brought into the country as parallel imports and must be labelled in the customs warehouse. On the other hand, our competent authorities have all the possibilities to cut off this inflow,” Viktor Evtukhov, State Secretary – Deputy Minister of Industry and Trade of the Russian Federation.
PROBLEMS
The ban on certain goods will increase counterfeit goods turnover
“Here, the tobacco industry comes second after oil and gas in providing budget revenues. The potential we see, – [is] virtually, at the five-year time horizon, revenues possibly of one trillion roubles. We have received in the order of 10 billion [roubles] in investments, meaning there are 10 thousand employees directly in this sector. It is an important strategic and economic sphere. <…> Now, an attempt [is being made] to ban products containing nicotine. My position as an expert is that there should not be a complete ban. Everything we prohibit will, outside the scope of the budget, be presented in our country in the same volume. Regulation, on the other hand, provides an opportunity to determine the quality of the goods (thereby protecting people’s health), to replenish the budget and, in general, exercise control over who imports what,” Sergey Katasonov, Co-Chairman of the Expert Council of the State Duma of the Federal Assembly of the Russian Federation on the Development of Competition in Markets for Nicotine-containing Products, Issues of State Regulation of Relations in the Field of Production and Circulation of Tobacco and Innovative Nicotine-containing Products.
SOLUTIONS
Draft laws on the trade in tobacco and alcohol-containing products helps increase excise revenues and reduce the trade in counterfeit goods
“We work in two main directions where we see, primarily, participation on the alcohol and tobacco markets because that is where, thanks to the labelling systems, the sums taken in excise can be raised. And two main directions where we see that the budget is not receiving the revenues it should. These are beer production, because we have a number of small breweries that do not pay excise, and tobacco and tobacco goods imports. <…> We have worked all year along these two tracks and, during the spring session period, drew up proposals for regulations and legal acts to be approved by the Government. We are currently having them approved by the Presidential Administration and we hope that, during the autumn session, they will be adopted. These concern a register of beer breweries and, accordingly, introduction of full licensing of importation of tobacco products and raw tobacco material,” Alexey Sazanov, State Secretary – Deputy Minister of Finance of the Russian Federation.
“The efforts made by the State Duma and the Government have produced a whole series of bills we have adopted [in relation to tobacco products]. The first is a restriction on individuals moving [tobacco products], whereas there used to be absolute chaos with products being brought in by truck and claimed to be for personal consumption. Second, we passed a law on a unified minimum price; today we are going in roughly the same direction as with respect to alcohol containing goods,” Sergey Katasonov, Co-Chairman of the Expert Council of the State Duma of the Federal Assembly of the Russian Federation on the Development of Competition in Markets for Nicotine-containing Products, Issues of State Regulation of Relations in the Field of Production and Circulation of Tobacco and Innovative Nicotine-containing Products.
“As part of a systemic approach to countering illegal goods, the Government has decided to establish a National Scientific Competence Centre in the Field of Combating Illegal Circulation of Industrial Products. In essence, the NSCC is an analytical centre under the Ministry for Industry and Trade and participates in providing information and analytical support to the State Commission for combating illegal circulation of industrial products,” Baysolt Khamzatov, First Deputy Director, National Scientific Competence Centre in the Field of Combating Illegal Circulation of Industrial Products.
For more details, see the roscongress.org Information and Analytical System.
