November 2015

Bulgaria Deputy PM: Counteracting smuggling of excise goods one of govt’s main priorities

Rumyana Bachvarova, Bulgarian Deputy Prime Minister for Coalition Policy and Public Administration and Minister of Interior, held a working meeting at the ministry building with representatives of five leading tobacco companies in Bulgaria.
Market research ordered by the five companies was presented at the meeting, the press centre of the ministry announced.
“Counteracting the smuggling of excise goods is one of the main priorities of the government – the motives for that are both of fiscal and general nature,” said Minister Bachvarova, speaking at the event.

Uganda adopts SMS to check fake farm inputs

REAL DEAL: Each year, Uganda loses $1.5 billion of revenue in counterfeit agricultural items, like seeds which experts say will be saved by the E-tag system. KAMPALA, UGANDA – Uganda has tightened the fight against counterfeit and substandard agricultural inputs like seeds, fertilizers, chemicals among other items flooding the Uganda market by launching the E-tag electronic verification system. “Proliferation of substandard agro inputs in the Ugandan market is very high at 30% across the country. This is not only causing economic loss, but also leading to destruction of livelihoods.
“Agriculture being the backbone of Uganda, we cannot afford to lose anymore,”  Dr. Ben Manyindo, the Chief Executive Officer, Uganda National Bureau of Standards said, at the launch of the E-tag system last week.

Seminar on ‘Curbing Counterfeiting and Smuggling – An Imperative for Indian Economy’, Hyderabad

10/16/2015 | Hyderabad

FICCI CASCADE with a view to engage all relevant stakeholders like government representatives, enforcement agencies, excise and customs, consumer activists, media as well as industry and legal experts; and to sensitize them on the issues of counterfeiting and smuggling organized a seminar in Hyderabad on “Curbing Counterfeiting and Smuggling – An Imperative for Indian Economy” on October 16, 2015. The seminar brought experts from different disciplines of life under one roof to raise the concern over the growing illicit trade and to create large-scale awareness among the impacted segments of the society.
Counterfeit trade has attracted considerable attention among trade associations, government and enterprises. Therefore, to support the cause, the seminar witnessed huge participation of over 80 delegates who were very enthusiastic to fight the menace.
Mr. Devendra Surana, Co-Chairman, FICCI Telangana & Andhra Pradesh State Council & Managing Director, Bhagyanagar India Ltd, welcomed the dignitaries and highlighted the objectives of the seminar like generating awareness, interaction with law enforcement agencies and sharing best practices. He said that the market for smuggled, counterfeits and contraband products was spreading rapidly and was one of the biggest challenges faced by the Indian industry. He further added that  knowledge and innovation needed not only be protected but also encouraged.
FICCI CASCADE adviser Mr. P C Jha pointed out that counterfeiting was the biggest scourge impairing the world’s economy at present and it accounted for almost 10% of the current global trade. Mr. Jha discussed the magnitude of the problem and cited that in India the total loss to the government in respect of the seven items, as per a FICCI CASCADE study, had increased steeply from Rs. 26,190 crore to Rs. 39,239 crores.  He highlighted the fact that loopholes in the taxation policy encouraged tax evasion leading to smuggling of goods.  He also stated that counterfeiting wass the number one crime of 21^st century. It stakes brand owner’s reputation, causes loss of revenue to the public exchequer, and poses a serious threat to the security – nationally and internationally.
The seminar also marked the enthusiastic and encouraging support of the Consumer rights activist Mr. Thakur Raj Kumar Singh, Chairperson & Managing Trustee, Human Rights & Consumer Protection Cell. Mr. Singh emphasized on the role of organizations like FICCI and appealed to the industry to help protect the “Consumer”.  He underlined the fact that consumers were the ultimate victims of counterfeiting and smuggling, and their rights were being violated by counterfeiters and smugglers. He stressed on strengthening the penal provision to instill fear in counterfeiters and smugglers to curb the menace.
Mr Deep Chand, Adviser FICCI CASCADE and former Special Police Commissioner, Delhi Police, pointed out that the problem of counterfeiting and smuggling needed consumer support and active involvement towards the cause. Healso stressed on the need for registering complaints with the police and customs.  Mr. Chand stated that the laws were adequate but the need was to put this evil as the priority agenda of the government while enforcing laws and regulations.  He also said that problem of counterfeiting and smuggling gave rise to unscrupulous and anti-social elements in the society, creating a major security threat to the nation. Mr. Deep Chand emphasized on awareness among the stakeholders as a very important aspect in the enforcement of laws and appreciated FICCI CASCADE for its move to make a dent in this vast field which has remained unexplored so far.
Mr. Sunil Jain, Commissioner of Customs, Central Excise and Service Tax, Hyderabad Zone said that counterfeiting and smuggling continued to thrive globally due to the consumers’ propensity  to acquire branded products at low cost, while the lack of awareness of the attached hazards added to this menace. Mr. Jain said that the role of customs has become more challenging with the growing sophistication in the manufacturing of counterfeit products. He invited the growing cooperation of the right holders to help the customs authorities for better management of the problem.
Mr. Srinivas Reddy, Deputy Inspector General of Police, Telangana expressed his concern towards the growing level of illicit trade and said that the problem could not be neglected. He also stated that smuggling, counterfeiting and other such illicit practices surreptitiously cascaded into national security issues like trade in narcotics, money laundering and terrorism.  He cautioned the audience that our nation’s economic security was at stake and illicit economic activities were damaging the country’s economic vitality.
The subject of counterfeiting and smuggling is very vast and complex and there is a need to target and educate the masses to buy genuine products. The seminar witnessed vigorous interactions with delegates demonstrating an active interest in the issue. The seminar ended with a common view that the problem of counterfeiting and smuggling was multifaceted and complex and needed to be discussed time and again, with government, to emphasize on effective and adequate laws and enforcement; increasing engagement with the industry and, most importantly, creating awareness in the society to curb the menace of counterfeiting and smuggling.

Interactive Session on ‘Illicit Trade – A Threat to our National Interests, Hyderabad

10/15/2015 | Hyderabad

In order to highlight the magnitude of illicit trade activities such as counterfeiting and smuggling, FICCI CASCADE organized a press conference, preceding the seminar, on ‘Illicit Trade – A Threat to our National Interest’ on October 15^th, 2015 in Hyderabad. Mr. Ravi Verma (IPS), Deputy Inspector General of Police, Telangana was the key speaker at the press conference. Mr. Verma stated that the magnitude of counterfeiting and smuggling was significant and was affecting India’s growth trajectory. He said that information sharing between the stakeholders was very important to contain the menace. In this regard, he observed that developing a list of regular offenders across the country and sharing of this data by the police departments across the states would be an effective step.

Seminar on ‘Curbing Counterfeiting and Smuggling – An Imperative for Indian Economy’, Ahmedabad

10/10/2015 | Ahmedabad

“The damage caused by counterfeiting and smuggling is threefold – impacting producers, consumers and government. We should all participate in this collaborative process initiated by FICCI CASCADE in order to uproot this menace.” This was stated by Dr. Kiritbhai Solanki, Hon’ble Member of Parliament in a seminar organized by FICCI CASCADE in Ahmedabad on addressing counterfeiting and smuggling and aiming to spread consumer awareness against the menace of illegal products. Hon’ble MP also urged industry and consumers to come forward and help the Government and police in preventing illicit trade. As a member of Standing Committee on Finance, Dr. Solanki assured that he will take up the cause to the committee so that brainstorming can be done in this direction.

FICCI CASCADE, with a view to engage all relevant stakeholders like government representatives, enforcement agencies, excise and customs, consumer activists, media as well as industry and legal experts, and to sensitize them to fight against counterfeiting and smuggling, organized this seminar in Ahmedabad on “Curbing Counterfeiting and Smuggling – An Imperative for Indian Economy” on 10^th October, 2015. The seminar brought together experts to raise concerns over the growing illicit trade and to create large-scale awareness among the impacted segments of the society. Illicit trade has attracted considerable attention among trade associations, government and enterprises.

Mr. Jatin Trivedi, Chairman, Legal sub-committee, FICCI Gujarat State Council stated that FICCI has always been a torch bearer with the betterment of society and the country at large. FICCI CASCADE is one of the lamp under which the responsibility is taken by it to spread public awareness about the issues of counterfeiting and smuggling. Mr. Trivedi welcomed the dignitaries and highlighted the objectives of the seminar like generating awareness, interaction with law enforcement agencies and the need for sharing best practices. He observed that India was at the world’s spotlight with a most dynamic economy. Hence, safeguarding the rights of legitimate industries is imperative. Mr. Trivedi added that the growing illicit markets undermined the business environment and restrained development of the country’s much anticipated growth trajectory.

FICCI CASCADE advisor, Mr. P. C Jha, also an ex- Chairman, CBEC pointed out that as illicit trade had become an economic problem of international importance and has been growing dramatically across the globe. Strict legislations, enforcement, protection of intellectual property rights are required to curb the peril. Mr. Jha further emphasized that it order to completely eradicate of this global menace, demand side of counterfeiting should be fought first. Genuine brand owners, media and other government agencies should join hands to educate consumers and to make them aware of the need to shun counterfeit and smuggled products willfully. Mr. Jha also shared his thoughts on how high rates of taxation on products are aggravating the problem of counterfeiting and smuggling. For example an increase in excise and VAT rates on products such as tobacco and alcohol incentivizes counterfeiting, thereby, causing heavy losses to the ex-chequer. Thus, enforcement of high taxed goods should be of high priority for governments to avoid tax evasion.

Dr. Bhagirath Patel, Chairman, Innovation Programme Drive, Gujarat Innovation Society, in his address said that over the years quality of life has changed because of innovation, however counterfeiting hampers the innovation leading to a poor quality of life. He also emphasized on the need for protection for legitimate products.

The seminar also marked the enthusiastic and encouraging support of Ms. Anindita Mehta, DGM, Consumer Education and Research Center, Ahmedabad. Ms. Mehta stressed on the fact that sustained awareness was required amongst consumers which should also include awareness on quality standards. Ms. Mehta complimented FICCI CASCADE on its initiatives which she said were not only in public interest, but in the larger interest of the nation.

Following the Inaugural Session, a panel discussion on Organized Crime Surge in India – Role of Enforcement Agencies in Combating Smuggling and Counterfeiting was held, which saw lively interactions of representatives from enforcement agencies and the audience. Panelists included Mrs. Meera Ramnivas, Addl. DGP (CID Crime), Government of Gujarat and Ms. Vrindaba Gohil, Additional Commissioner, Customs, Mundra, Gujarat, The session was chaired with by Mr. Deep Chand, Advisor FICCI CASCADE and former Special Commissioner of Police, New Delhi. Mr. Deep Chand remarked that illicit trade activities are a huge challenge before enforcement agencies.  He emphasized the role of enforcement officials in fighting this menace, however he stated that this not possible with adequate support from Industry players and consumers.  All the panelists agreed that on information sharing among all stakeholders as being a key to curb this menace.

Mr. Param Shah, Head, FICCI Gujarat State Council proposed the vote of thanks. The event was supported by Gujarat Innovation Society (GIS) and was attended by more than 125 industry captains, representative from consumer forums, Government officials and stakeholders in this segment.

Candle Light Congregation- Fight Against Counterfeiting and Smuggling, Ahmedebad

30/9/2015 | Ahmedebad

As a part of its series of nation-wide awareness campaigns to highlight the issue of growing menace of counterfeiting and smuggling, FICCI CASCADE (Committee against Smuggling & Counterfeiting Activities Destroying the Economy), organized a seminar and candle light congregation at East Bourne Hotel, Shimla on September 30, 2015. Over 100 students with candles in their hand and banners stating ‘Buy Make in India’ and ‘Say No to Smuggled Goods’ participated in this congregation with much zest and zeal.

Mr. Anirudh Singh, MLA from Kasumpti was the Chief Guest at the congregation.  He said that counterfeits and smuggled goods were threatening the key elements of India’s growth strategy vis-à-vis technology, invention and innovation which were the key elements in India’s economic developmental agenda.Congratulating FICCI CASCADE for taking the initiative to generate awareness among consumers on the perils of counterfeits and smuggled goods, Mr. Singh emphasized that illicit trade curbes country’s economic independence.  He urged the participating students to take a pledge against using fake products and to fight the menace of smuggling which was in the larger interest of the nation’s economy.

Mr. P C Jha, Advisor, FICCI CASCADE & former Chairman, CBEC stated that according to a recently released FICCI CASCADE study,the total loss to the government estimated for 2014, on account of the illicit markets in respect of seven manufacturing sectors was Rs 39,239 crores. Further, during the last twenty years, the volume of the counterfeiting activity has increased 100 times and the size of trade in counterfeited goods is 10% of the legal international trade.He observed that the need for awarenessof consumers,particularly the youth, on illicit trade practices as vital. Mr. Jha also emphasized that purchases, as far as possible, should be done against bills.

Mr. Deep Chand, Advisor, FICCI CASCADE and former Special Commissioner, Delhi Police, stated that the Indian Government had initiated various steps to address counterfeiting, piracy and smuggling. Despite these actions, a study by FICCI CASCADE reveals that counterfeiting and smuggling rates are still very high. Mr. Chand said that illicit trade such as counterfeiting and smuggling was an economic offence, created a black market or underground economy, in which goods and services were traded illegally. Consumer participation at large in the fight against counterfeiting and smuggling is crucial to determine the growing circulation of such goods.

Over 100 students with candles and banners participated in the fight smuggling and counterfeiting.  The candle light congregation was organised to highlight the issue and focus on the growing menace of counterfeiting and smuggling.\

Interactive Session on ‘Illicit Trade – A Threat to our National Interests, Shimla

29/09/2015 | Shimla

In order to highlight the magnitude of illicit trade activities like counterfeiting and smuggling, FICCI CASCADE also organized an Interactive Session with media on ‘Illicit Trade – A Threat to our National Interest’, on 29 September, 2015 in Shimla. Mr. Sanjay Kundu, Additional Director General of Police, Government of Himachal Pradesh was the key speaker at the press conference. Mr. Kundu observed that counterfeiting and smuggling encouraged the culture of fraud causing huge losses of revenue to the government as well as industry. Currently, it was important for India to have a positive perception in the global market for which conscious efforts have to be made by all stakeholders to work concertedly in curbing this menace of illicit trade for sustained economic development. The police would play a very important role here as economic frauds need to be addressed at all the levels by the police department. Mr. Kundu also stressed on the need for continuous capacity building of police officers to help them play an effective role. The interactive session was well attended and covered by the media.