Russia has prepared a list of goods for which parallel imports will be allowed. The list was developed by the Ministry of Industry and Trade, the corresponding order is now being registered with the Ministry of Justice.
In other words, the Russian authorities gave the go-ahead for the import of products from Apple, Samsung, Tesla, Bentley and other brands that left Russia without their permission.
On March 30, the Russian government legalized parallel imports, allowing the import of goods without the permission of the copyright holder. Further, the Ministry of Industry and Trade joined the work, the task of which was to determine the list of brands for which parallel imports will be officially allowed.
how report Izvestia, the list is ready, and it includes two hundred brands.
Brands are back
According to the source, without the appropriate permission of the copyright holder, it is proposed to allow the sale of more than fifty groups of goods. And we are talking not only about finished goods, but also about various components.
Among them were auto parts, leather and fur products, as well as hygiene products, computers, smartphones, and transport.
It is worth noting that when working on this issue, the department used two fundamentally different approaches – in some cases it is proposed to allow parallel imports for the entire category of goods, and in others – only for certain brands.
In particular, parallel imports will be allowed for smartphones, headphones and watches from Apple, gadgets from Siemens, HP, Nokia, Sony, Samsung. The Ministry of Industry and Trade also plans to arrange deliveries of Tesla, Volvo, Cadillac, Jeep, Jaguar and many others.
It is important that the list included a large number of components for cars: Continental, Goodyear, Michelin, Bridgestone tires, Wabco sensors and blocks, engines from Hyundai, Nissan, Volkswagen, Toyota, Deutz, Kubota.
The list also includes equipment for various industries – mining, electric power, railway and shipping transport, agriculture, timber processing and others.
It is noteworthy that the final list did not include jewelry and furniture. The Ministry of Industry and Trade noted that the former are devoid of any strategic importance, and otherwise domestic producers are able to successfully occupy the vacant niche.
If we talk about the categories in which the department has abandoned the point approach, then this is, for example, clothing and footwear. This means that these goods are proposed to be allowed in full, without any restrictions.
FAS position
The Federal Antimonopoly Service, which previously advocated a ban on parallel imports, has now changed its mind, noting the need to protect enterprises that ensure the continuous production of goods in Russia under the current conditions.
Previously, such actions of suppliers were considered undesirable, and if such schemes were discovered, the violator had to not only destroy the entire imported batch, but also pay the copyright holder a decent compensation in the amount of one hundred thousand to five million rubles.
It should be noted that in Russia, as a country of the EAEU, there is a regional principle of exhaustion of the exclusive right to a trademark. However, now companies will not face liability for the import of parallel imports according to the list.
“Customs officers are now verifying whether there is a company that wants to import goods in the list of authorized persons of the copyright holder, if there is, then they let it through, if not, then they notify the copyright holder, and we will not do this if parallel imports are allowed,” he explained earlier. First Deputy Head of the Federal Customs Service Ruslan Davydov.
Good or bad?
The opinions of experts regarding the legalization of parallel imports are divided. Despite the fact that most of them note the obvious need and advantages of such a decision, some worry about the possible negative consequences.
In particular, imports to Russia have already decreased by about a third. The new supply regime will make it possible to compensate for the voluntary withdrawal of Western companies from the market, but will not solve the problem of sanctions restrictions, experts say.
For example, the parallel import of spare parts is considered by many to be a “savior for the industry”, otherwise in the future all equipment, especially commercial ones, will stop.
Indeed, now, according to the law, vehicles can only be repaired under warranty using original spare parts, while only the brand owner can import them into the country. At the same time, it is important to clarify that the import of products by parallel importers to Russia does not deprive consumers of the right to warranty service and technical support.
Director of the International Center for Competition Law and Policy of the BRICS Countries at the National Research University Higher School of Economics notesthat the measure is not a full-fledged transition to the international principle of exhaustion of rights, but it will make it possible to create alternative supply channels that are currently relevant.
Now importers will be able to purchase spare parts, for example, in Turkey, the UAE or Kazakhstan, which will lead to a change in logistics flows.
At the same time, the measure will not solve the problem of importing those goods that are subject to sanctions, since their turnover will most likely be closely monitored by American and European regulators, so any supplier company also risks being blacklisted.
According to Deloitte partner Tatyana Kofanova, in the current situation it is absolutely logical to allow parallel imports of premium car brands. Indeed, due to the current sanctions, it simply will not work to deliver them to Russia in any other way.
However, the expert also notes the possible risk of secondary sanctions by the United States or the European Union in this matter. Do not forget about the difficulties of delivering spare parts for such cars.
Green light for counterfeit?
The government emphasizes the fact that parallel imports involve the supply of exclusively branded products. It’s just that goods will be bought in a “different place” and according to a “different scheme”. However, it is obvious that the risk of counterfeiting in such a situation will greatly increase.
According to officials, the original spare parts for cars of Japanese or European brands imported from Turkey or Kazakhstan will not differ in any way from those that were previously supplied to the country by the concerns themselves and official dealers.
At the same time, technical support and warranty service for customers will be maintained in the same volume as before.
However, common sense dictates that these statements should not be fully trusted. The risk of counterfeit imports increases, if only because it is impossible to prove the origin of products supplied under its trademark without brand representation in Russia. And if so, then why buy an expensive original, if you can get by with a cheaper fake?
how assures Head of the Federal Customs Service of Russia Vladimir Bulavin, the legalization of parallel imports will not open borders for counterfeit goods. He insists that these innovations involve the import of only original quality products.
However, one should not forget that the goal of any business is to make money, and counterfeit in this sense is more profitable, especially if we take into account the serious costs of companies when organizing a parallel import scheme.
In addition, it is not yet clear who exactly will issue the guarantee promised by the Federal Antimonopoly Service for the repair and maintenance of household appliances and other complex products imported through alternative channels and fulfill obligations to consumers.
In addition, the legalization of parallel imports leads to a weakening of customs control, which, in turn, causes the growth of the shadow sector of the economy.
Another important point, subject to the use of the parallel import scheme, was noted by the representative of the RATEK association Anton Guskov. According to him, it is important to organize the process in such a way as to exclude the possibility of a deterioration in the situation of production facilities operating in Russia, as well as those manufacturers that supply goods using direct import mechanisms.
The difficult question of price
What will be the price of goods imported to Russia by parallel imports, so far neither manufacturers nor experts undertake to predict.
Due to the complexity of the scheme, the cost of such products can increase significantly.
However, it is possible that in some cases the products may be cheaper compared to those goods that were imported into the country with the consent of the copyright holder.