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06 / 04 / 2017

Governmental commission members discuss problem of counterfeit products

The State Commission for the Suppression of Illegal Distribution of Industrial Goods met on March 29, 2016, under the chairmanship of Russian Industry and Trade Minister Denis Manturov.

As a rule, illegal and semi-legal distribution stands for dumping and counterfeit products. The amount of such products varies from 20% to 30% of the entire goods turnover in the country, which reduces the cost-efficiency of legal production and hinders promotion of legit products.

Operation on the EAEU market of goods and services requires coordinated interstate measures to suppress every type of illegal distribution of goods, senior officials of the Russian Industry and Trade Ministry, the Interior Ministry, the Federal Customs Service, the Federal Tax Service and some other agencies said at the meeting.

Illegal distributors of light industry goods alone make billions of dollars in Russia every year, speakers at the meeting said. The vast size and the high consumer capacity of the Russian market encourage shadow business to secure its position on the market. This is facilitated by the transparent customs and other control within the EAEU borders.

The meeting participants set a two-pronged task: it would be necessary not so much to tighten the liability for illegal distribution of products as to create conditions in which ‘illegal production and distribution would become unprofitable.  Reportedly, at least 15% of domestic light industry enterprises have had to shut down or to drastically reduce their output.
In the opinion of the Soyuzlegprom head and other experts, a package of economic, technological and legislative measures should be taken (within the EAEU framework) to encourage legal production of textile items, on the one hand, and to force shadow businesses to either legalize their production and distribution or to stop the counterfeit business – on the other. The measures should include compiling a register of legal manufacturers and distributors of light industry products in the EAEU member countries.

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