Interactive Session on “Illicit Markets – Impacting the Indian Growth Trajectory”, New Delhi
07/04/2015 | New Delhi
FICCI’s Committee Against Smuggling & Counterfeiting Activities Destroying Economy (FICCI CASCADE) organized an interactive session on Illicit Markets – Impacting the Indian Growth Trajectory on April 7, 2015 in New Delhi. The session enabled a dialogue between the stakeholders on the alarming magnitude of unfair trade practices such as counterfeiting and smuggling and spread awareness about its adverse socio economic impact.
Shri Ram Vilas Paswan, Minister of Consumer Affairs, Food and Public Distribution, chief guest at the event emphasised that illegal trade activities such as smuggling and counterfeiting is a major setback to India’s growth and development. This not only hinders the nation’s progression but also leads to corruption and black money generation.Given the current emphasis on the‘Make in India’ campaign, it becomes imperative that the quality of the products available is not substandard and fake. The Minister further added that illicit trade impacts all sections of society hence it becomes essential to control the quality of goods available in the market.Hon’ble Minister also stated that his ministry would be keen to work with FICCI CASCADE in addressing these issues and invited recommendations in this regard.
On this occasion, the Minister also released 9 sector specific reports entitled ‘Illicit Market: A Threat to Our National Interest’. This is perhaps the first quantitative study in India on the impact of illicit markets on various economic aspects. These sector wise reports, broadly classified into two sections; firstly, the Manufacturing Industry, including FMCG Packaged Foods and Personal Goods, Computer Hardware, Automobiles, Mobile Phones, Tobacco and Alcohol, and secondly, the Media & Entertainment Industry including Broadcasting and Motion Pictures sectors. These reports not only estimates the size of the grey market in the industry sectors, but also highlights the losses to the industry in sales and to the Government in revenue. The studies further assess the impact of illicit markets on innovation, investment, tax arbitrage and financing of organised crime and terrorism.
Dr. Jyotsna Suri, President FICCI in her welcome address stated that the need of the hour today is tangible actions to strengthen our laws, and increase enforcement against illicit trade practices. A coordinated strategy with participation from policy makers, industry, civil society and organizations, is needed to work together and comprehensively address this complex challenge.
Mr. Anil Rajput, Chairman FICCI CASCADE presented the highlights of the study and said that stakeholders must put national interests above anything else. Due to India’s growing economic clout in the world market, we must be weary of being targeted by illicit trade operators.Mr. Rajput further added that national economic policies will need to give more attention to protecting the domestic economy from smuggled and counterfeit products that can wipe value creation from legitimate players in the economy, and cause loss of potential employment.
The study estimates that the loss to manufacturing related sectors has increased by 44.4% in just two years, from ₹ 72,969 crores in 2011-12 to ₹105,381 in 2013-14. Loss of sales to the manufacturing industry sectors has increased across all industries. The largest increase is seen in the alcoholic beverages and mobile phones industries, where losses have risen by 151% and 111%, respectively. The total loss to the government for manufacturing industries estimated for 2014, on account of the illicit markets is ₹ 39,239 crores, up from ₹ 26,190 crores in 2012. In the motion pictures industry the loss to the industry for 2014 is expected to be ₹ 1,300 crores approximately.Among all the sectors in the manufacturing industry, loss to the government is highest from the tobacco industry (23 percent) followed by mobile phones industry (17 percent), alcohol industry (16%), FMCG Packaged Food (16%), and FMCG Personal Goods (15%). In the motion pictures industry the loss to the industry for 2014 is expected to be ₹ 1,300 crores approximately.
The study also establishes a relationship between high taxes and availability of illicit products. High tax rates tend to exacerbate illicit markets by creating greater demand for cheap and counterfeit substitutes. A significant reason being, that high tariffs and taxes create opportunities for those involved in illicit markets to step in and supply ‘reduced’ versions of the original product at lower prices. This is true for the tobacco and alcohol Industry. These industries are not only highly taxed; the tax structure is highly intense and dual in nature.Besides, there are considerable differences in tax rates between states which open up opportunities for illegal cross-border trade.
Earlier, during National Consumer Rights Week, FICCI CASCADE had organized a youth festival – ‘Youth for Consumer Rights – Towards Socially Responsible Citizens’ in New Delhi. Over 200 students from various schools of Delhi enthusiastically participating in the inter-school Elocution and Painting Competition themed: ‘Youth Against Smuggling and Counterfeiting’. Hon’ble Minister also felicitated the winners of both these competitions during the event.
The interactive session was attended by over 100 participants from industry, policy makers, consumer organizations and was well covered by media.
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Lear MorePolice Officers Training- Capacity Building Programme, New Delhi
01/04/2015 | Specialized Training Centre, Rajender Nagar Police Station, New Delhi
The Police department is the primary law enforcement agency. It Administers the Government’s economic, trade and tariff policies, handles international traffic of imports & exports, and aids to minimize demerit goods from augmenting in the markets. With low barriers to market entry and infiltration, the Police play a very significant role in ensuring and enforcing the protection of right owners. Keeping the above in view,FICCI CASCADE organized a training programme for the Delhi Police officers on April 01, 2015 at the Rajender Nagar Police Station, New Delhi,with an objective of equipping the police officers to understand and take requisite action against counterfeiters and smugglers.
Mr. S. B. K. Singh, IPS, Special Commissioner Security, Delhi Police, the Chief Guest at the programme,emphasized that the police had a significant role in fighting the menace of smuggling and counterfeiting. He stated that although counterfeiting waslooked at as a victimless crime, it had many far-reaching consequences and it was extremely important for a police officer to understand the consequences before taking actions on ground. Only then will an officer investigating a case related to smuggling and counterfeiting be able to understand and take suitable actions. He further added that awareness generation on counterfeit and smuggled items is a must as this acted as a deterrent to the illicit market operations.
Mr. Deep Chand, Advisor, FICCI CASCADE,in his address informed about FICCI CASCADE’s mandate of capacity building of law enforcement agencies including for Judges, Police and Customs Officers, and how CASCADE had been working extensively in this area nationally. The emphasis was on organizing training programmes and seminars along with continuous interactions with the law enforcement authorities to underline the importance of increased awareness on the serious problem of counterfeit and smuggled goods.
Mr. Chand correlated smuggling and counterfeiting activity with the security challenge in different environments around the world. He cited that illicit trade especially in two product categories i.e. tobacco and alcohol were being increasingly used to fund anti-social and terrorist activities. Mr. Chand also observed that the need of the hour was tangible actions to increase enforcement, and to impose increased punishments. This was imperative to reassure legitimate business owners and consumers that the government was serious about protecting right owners which, in turn, would elicit greater support for government policies.
The training programme was attended by over 60 police officers and provided a useful platform for the exchange of ideas and experiences in the enforcement of laws and practices while dealing with counterfeiters and smugglers.The speakers deliberated on the various aspects that a police officer needed to keep in mind while investigating cases of smuggling and counterfeiting, including: Legal Provisions to Offences & Penalties for Counterfeiting and Smuggling, Provisions under Patents, Design, Trademarks and Geographical Indications Acts and Practical know-how of Investigation of IP and related Economic Crimes. The speakers included Dr. Alka Chawla, Professor, Faculty of Law, University of Delhi and Advisor, FICCI Intellectual Property Education Centre, Ms. Prem Lata, Senior Assistant Registrar, Trade Marks & G.I., Delhi Patent Office, Mr. I K Jha, Inspector, Delhi Police and Mr. Sandeep Kumar, Inspector, Delhi Police.
The participating police personnel found the presentations constructive and interacted actively with the speakers.
Facebook Slogan Writing Competition on: “Fight Against Counterfeiting and Smuggling”
31/01/2015 | FICCI CASCADE
Ongoing Event
FICCI CASCADE is organizing a Slogan Writing Competition on “Fight Against Counterfeiting and Smuggling” at FICCI CASCADE Facebook page. The idea is to engage the creative minds on the problem and deepen the understanding of “grey markets” for counterfeit and smuggled goods and their impact on the society.
Guidelines for the Competition
1. The competition is open to public at large.
2. The last day for acceptance of entries is 31st January, 2015 at 11:59 pm.
3. Entries are accepted only in word format, to be mailed only to cascade@ficci.com.
4. Entries will include slogans on counterfeiting and smuggling of products.
5. Results will be announced on 15th February 2015, on the FICCI CASCADE page on Facebook.
6. The winning entries will be published in the FICCI CASCADE newsletter
7. Also, there will be a separate category called “People’s Favourite”, where the slogan getting
maximum likes will be awarded.
8. First 50 entries will be awarded with a magic mug.
9. The winning entries will be given cash prizes.
Lear MorePolice Officers Training- Capacity Building Programme, Lucknow
30/1/2015 | Lucknow
The existence and operation of illicit markets has been an enduring problem that has escalated in scope and magnitude, impacting industries, consumers, government and economies as a whole. In fact, it is today one of the biggest challenges faced by Indian industry, impacting ‘Brand India’ globally. Intellectual Property is a tool to incentivize innovation and creativity to strengthen the economic growth of a nation. Enforcement agencies, the police and the customs, play a pivotal role in protection of these rights. There are adequate laws available, but it is the enforcement of these laws that makes the role of enforcement officers extremely important to fight against counterfeiters and smugglers.
FICCI’s Committee Against Smuggling and Counterfeiting Activities Destroying the Economy (FICCI CASCADE), in its endeavor to fight the twin menace over the years, has been sensitizing enforcement officers on this issue, equipping them to understand and take requisite action against counterfeiters and smugglers. On January 30, 2015, FICCI CASCADE conducted capacity building programme for police officers in Lucknow.
Police Department is the primary law enforcement agency, which administers the Government’s economic, trade and tariff policies, handles international traffic of imports & exports, and aids to minimize demerit goods from augmenting in the markets. With low barriers to market entry and infiltration, the Police play a significant role in ensuring and enforcing the protection of right owners. Keeping the above in view, FICCI CASCADE organized the capacity building programme with Police officers in Lucknow.
Mr. AK Jain, DGP Police (Training) UP was the chief guest at the programme. He congratulated FICCI CASCADE on this constructive initiative to train officers on this very pertinent issue. In his address, he said that the awareness among the enforcement agencies on the growing need to save the consumers from the hazards of counterfeiting & smuggling was a very essential. Products like counterfeited cosmetics, baby food, medicines, auto components, in particular,impacted consumers directly and hence was a serious health and safety concern for consumers, which needed to be addressed urgently. Mr. Jain also expresses his keen interest to develop a course for the officers in collaboration with FICCI CASCADE.
During the training, police officers were extensively briefed on the trend of counterfeiting and smuggling of various products, the extent of such products sold in open markets and the resultant loss of revenue to the Government and industry. Mr. Deep Chand, (Rtd. Special Commissioner of Police, Delhi) and Advisor FICCI CASCADE discussed the alarming presence of counterfeit products in the markets and its impact on the socio economic growth of the nation. He highlighted the finding of the study commissioned by the FICCI CASCADE, which estimated the magnitude of the grey market in respect of seven key sectors which were among the most vulnerable to counterfeiting and smuggling in India, including automotive parts, alcoholic beverages, computer hardware, personal goods, mobile phones, tobacco products, and packaged foods, and the ensuing impact on the economy. The study stated that in these seven sectors, the annual tax loss to the government in the year 2012 was estimated at Rs. 26,190 crore. It further assessed that an annual sales loss to the industry in these sectors was Rs. 72,969 crore in the year 2012. The maximum tax loss on account of smuggled and counterfeit products to the government was from the tobacco sector at Rs. 6,240 crore, followed by Fast Moving Consumer Goods.
The training programme, attended by over 40 police officers from Lucknow and Kanpur zones, provided a useful interactive platform for the exchange of ideas and experiences in the enforcement of laws and practices while dealing with counterfeiters and smugglers.
Customs Training Programme- Capacity Building Programme, Bangalore
30/1/2015 | Bangalore
Smuggling and counterfeiting in India are growing in scope and magnitude with every passing day. The extent and effects of smuggling and counterfeiting are of such significance that they compel strong and sustained action from governments, enforcement agencies, business, media, legal experts and consumers.
More effective enforcement is critical in this regard, as we need to build public support to combat smuggling and counterfeiting. With this view, FICCI CASCADE organised a training program of Customs officers to sensitize them on the menace of smuggling and counterfeiting, in Bangalore on 30th January, 2015.
Mr. Harish Kumar Additional Commissioner, Customs, Bangalore, while inaugurating the programme, shared his views and insights on the menace of counterfeiting and smuggling. Mr. Kumar welcomed FICCI CASCADE for bringing such an important issue of counterfeiting and smuggling. Welcoming the training programme for Customs officers organized by FICCI CASCADE, he said that these forums proved useful for industry-customs collaboration in understanding and tackling the growing menace of illicit trade practices, and these programs should be organized across the country.
Mr. P C Jha, Advisor, FICCI CASCADE and Ex-chairman, CBEC, sharing while his experience, highlighted the importance of creating public opinion to curb this menace. Mr. Jha emphasized that the high rates of taxes and the inter-state tax variations led to higher tax evasion. He cited the example of tobacco products such as cigarettes where the rate variation was so wide that it gave impetus to counterfeiting and smuggling activities.
The training programme was attended by over 30 customs officials, and provided a useful platform for the exchange of ideas and experiences in the detection and prevention of the entry of counterfeit and smuggled goods into the country.
Representatives of Harley Davidson and Puma gave presentations and exhibited samples of their original products alongside the counterfeit copies. The objective was to inform the participating Customs officials about the growing problem of counterfeiting and smuggling in the respective industry segments, and to highlight key technical aspects of their products which could facilitate the detection of counterfeit products. The participating Customs officials found the presentations constructive and interacted actively both with the company representatives and among themselves.
National Consumer Rights Week, 2014, New Delhi
23/12/2014 | New Delhi
FICCI CASCADE with the Department of Consumer Affairs celebrated the National Consumer Rights Week, 2014. The celebration was flagged off with a ‘Capacity Building Programme’ for Police Officials on 22 December, 2014at the Rajender Nagar Police Station, New Delhi.
Intellectual property is a tool to incentivize innovation and creativity to strengthen the economic growth of a nation. Enforcement agencies, police and customs play a pivotal role in protection of consumer rights. There areadequate laws available but enforcement of the laws makes the role of police officers most important to fight against counterfeiters and smugglers.
The training programme was organized with an objective of equipping the police officers tounderstand and take requisite action against counterfeiters and smugglers.Mr. Dipankar Barkakati, Head, FICCI CASCADE, welcomed the dignitaries and the participants at the programme.
Dr. Karunakaran, DCP training, Delhi police was the Chief Guest at theprogramme. He congratulated FICCI CASCADE on this great initiative to train officers on this very pertinent issue of counterfeiting and smuggling which is causing a huge socio economic loss. In his address he said that spreading awareness among the enforcement agencies to save the consumers from the hazards of counterfeiting & smuggling is a very essential. Products like counterfeited cosmetics, baby food, medicines, auto components impacts consumer directly and hence it is a serious health and safety concernsfor the consumers, which needs to be addressed urgently.
Mr. Deep Chand, Advisor, FICCI CASCADE, in his address said that we must pledge to ensure consumer safety on this National Consumer Rights Week. He informed about FICCI CASCADE’s mandate of capacity building of law enforcement agencies and how CASCADE had been working extensively and intensively in this areanationally, to increase awarenesson this issue. Mr. Chand also informed that leading intelligence and law enforcement agencies have found conclusive evidence of increasing involvement of terrorist organizations and thus urged the stakeholder to take tangible actions to strengthen enforcement of IP laws and ensure protection of the consumers.
At the training programme, IP experts discussed the impact of laws in our country on innovation, investments and most importantly on the general public as well as the search and seizures for strengthening the enforcement agencies. Dr. Alka Chawla, Associate Professor, Faculty of Law, University of Delhi sensitized the officers on the legal provisions relating to offences and penalties for counterfeiting.Mr. Vikrant Rana, Partner, S S Rana & Co. addressed the gathering on the current enforcement procedures and trends for prevention of smuggling and counterfeiting.
Industry members discussed the latest technologies to distinguish the original product from the fake ones. The training programme was successfully attended by over 60 police officers and provided a useful platformfor the exchange of ideas and experiences in the enforcement of laws and practices whiledealing with counterfeiters and smugglers. The industry speakers included Ms. Meenu Chandra, Director, IP Policy, Microsoft Corporation India Pvt Ltd. and Mr. Farooq Saleem, Deputy Manager Marketing (Brand Protection & Market Research), Hyundai Mobis India whodeliberated on the various aspects that a police officer needs to keep in mind whileinvestigating cases of smuggling and counterfeiting. The training programme ended with intensive dialogues on this issue.
While on one hand enforcement agencies such as the police play a fundamental role in protection of consumer rights, on the other hand, it is also the level of awareness amongst consumers which empowers them to know the alarming magnitude and seek discontinuance of unfair trade practices like smuggling and counterfeiting.
India has young population profile and is set to be the youngest country by 2020. Youth of India being the country’s future, it becomes imperative to understand the power of the consumers of tomorrow. With the youth becoming a key stakeholder for advocating socially responsible behavior, FICCI CASCADE believes that it is important to bring today’s youth onboard the awareness campaign and through them influence the society as a whole. An idea planted in their minds can become an instrument of change. On the occasion of National Consumer Rights Week, FICCI CASCADE organized a youth festival – ‘Youth for Consumer Rights – Towards Socially Responsible Citizens’ on December 23, 2014 at the Indraprastha World School in New Delhi. The youth festival saw participation of over 200 students from various schools of Delhi. Along with song and dance performances on the subject ‘Smuggling and Counterfeiting – A Menace’, students enthusiastically participated in the interschool Elocution and Painting Competition themed: ‘Youth Against Smuggling and Counterfeiting’. Through the competitions, not only did all witness the skills and creative abilities of the school children, but also saw the passion in them in making a change in the society by shunning fake products and saying no to smuggled goods.
To reiterate, awareness generation is extremely crucial in bringing change in attitudes from considering counterfeiting and smuggling activities as victimless crime to the realization that these cause major risks, both social and economic. A pro-active and preventative approach and strategy is the need of the hour to curb the twin menace.
Customs Training Programme, Chennai
26/09/2014 | Chennai
Smuggling and counterfeiting in India are growing in scope and magnitude with every passing day. The extent and effects of smuggling and counterfeiting are of such significance that they compel strong and sustained action from governments, enforcement agencies, business, media, legal experts and consumers.
More effective enforcement is critical in this regard, as we need to build public support to combat smuggling and counterfeiting. With this view,FICCI CASCADE organised a training program of Customs officers to sensitize them on the menace of smuggling and counterfeiting,in Chennai on September 26, 2014.
Mr. BidhanChantra, Joint Commissioner of Customs, Chennai, while inaugurating the programme, shared his views and insights on the menace of counterfeiting and smuggling. Mr. Chantra observed that taking advantage of the technology revolution, counterfeiters and smugglers were coming up with very good imitation products, and active interaction between industry and customs was the key to mitigate this growing illicit trade. Welcoming the training programme for Customs officers organized byFICCI CASCADE, he said that these forums proved useful for industry-customs collaborationin understanding and tackling the growing menace of illicit trade practices, and these programs should be organized across the country
Mr. Dipankar Barkakati, Head, FICCI CASCADE in his special address, highlighted the initiatives taken by FICCI CASCADE so far. He also emphasised on the need to curb smuggling and counterfeiting by strengthening the legal and regulatory frameworks, enhancing enforcement and generating awareness of the consumers on the need to fight the twin menace.
The training programme was attended by over 75 customs officials, and provided a useful platform for the exchange of ideas and experiences in the detectionand preventionof the entry of counterfeit and smuggled goods into the country.
Representatives ofMicrosoft, Dow Corning and Puma gave presentations and exhibited samples of their original products alongside the counterfeit copies. The objective was to inform the participating Customs officials about the growing problem of counterfeiting and smuggling in the respective industry segments, and to highlight key technical aspects of their products which could facilitate the detection of counterfeit products. The participating Customs officials found the presentations constructive and interacted actively both with the company representatives and among themselves.
This initiative of FICCI CASCADE was supported by Microsoft Corporation India Pvt. Ltd and Ranjan Narula Associates, IP Attorney.
Seminar on Curbing Counterfeiting and Smuggling – An Imperative for Indian Economy, Hyderabad
18/9/2014 | Hyderabad
India’s economic growth story has attracted the world’s attention, bringing new challenges for the domestic economy. One of the major issues for the economy and the industry is the uninhibited growth of counterfeit, fake and smuggled goods. The market for fake and counterfeit products is thriving in India and is today one of the biggest challenges faced by Indian industry. FICCI’s Committee Against Smuggling and Counterfeit Activities Destroying the Economy – FICCI CASCADE, with the participation of all leading industries from all sectors of the economy, is committed to fight this twin menace of counterfeiting and smuggling.
FICCI CASCADE, with a view to engage all relevant stakeholders including 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 a seminar on “Curbing Counterfeiting and Smuggling – An Imperative for Indian Economy” on 18 September, 2014 in Hyderabad. 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.
Police Officers Training- Capacity Building Programme, Delhi
FICCI CASCADE organized a Police Officers Training Programme at the Specialized Training Center, Rajender Nagar Police Station, New Delhi on August 06, 2014. The principal purpose of the program is to share with the police officers some of the issues and challenges faced by industry which could help in understanding some of the real problems face on ground, and to keep these aspects while taking action against counterfeiters and smugglers. Mr. Kishan Kumar, Special Commissioner, Training, Delhi Police was the Chief Guest at the programme.
Seminar ReportDownload Pdf
Seminar on ‘Curbing Counterfeiting and Smuggling – An Imperative for Indian Economy’, Bangalore
FICCI CASCADE organized a Seminar on ‘Curbing Counterfeiting and Smuggling – An Imperative for Indian Economy’ on August 05, 2014 at Bengaluru. The seminar discussed the role of media and consumer organisations in increasing awareness on the subject and enforcement issues in addressing this menace. Besides focusing on the losses to the government and industry, the seminar also highlighted growing link between counterfeit & smuggled activities and organized crime. Shri Dinesh Gundu Rao, Minister for Food, Civil Supplies and Consumers Affairs, Government of Karnataka was the chief guest at the programme.
Seminar Report