Tuesday, May 5, 2015

In Russia, to impose a parallel import of medical equipment, medicines and spare parts – RBC

At a meeting in late April, Prime Minister Dmitry Medvedev has approved the legalization of so-called parallel imports for a number of goods, Interfax reported Tuesday. This RBC confirmed one of the officials of the government.

A list of specific product groups, for which will be allowed parallel imports, virtually formed told RBC several participants. According to them, in the first place the government will offer three groups of products: automotive parts, pharmaceutical products and medical devices (tested on different HS codes).

On behalf of Medvedev to May 22, 2015 the full list should be prepared by the relevant ministries. According to federal officials, only the first phase is planned to determine the five groups of products for which will be lifted restrictions on parallel imports.

What is parallel import

In Russia since 2002 the national principle of ownership of the right: the owner of the brand controls all sales of goods and has the right to prohibit its importation. That is, under the current Code of goods under the brand name can be used in Russia or by the rightholder or with his authorization, all the rest – counterfeiting. But while the subsequent resale of violation of the law shall not be considered.

Question rates

The president of association “Russian Automobile Dealers» (ROAD) Mozhenkov Vladimir, who was present at the April meeting with Medvedev, confirmed RBC that it it was really about these three product categories. The Secretariat First Deputy Prime Minister Igor Shuvalov said that the medical equipment, car parts and medicines were chosen “to be the most sensitive for the citizens.” “The original products for the people shall not come to Russia at high monopoly prices. Their price should not differ from the prices in other countries, “- he handed the position Shuvalov.

About the examples of price discrimination at the conference said the head of the Federal Antimonopoly Service (FAS) Igor Artemyev. In his presentation (there RBC) as an example, in particular, leads coronary stents manufactured by Abbott. According to the presentation of the head of the Federal Antimonopoly Service, the official distributors they cost from 62 to 110 thousand. Rub. apiece, while the supply of independent importers do not exceed 40 thousand. rub.

Reducing the cost of goods for the end consumer – the main argument, which appeals to the supporters of the resolution of parallel imports. At the April meeting, Medvedev also said that the transition to the so-called international exhaustion of rights could be “an important anti-crisis measure” (this principle allows to import products not only through the official channels of exclusive distributors, but also in parallel without the permission of the owners of the brands anywhere in the world). “The products can be purchased in third countries, where it is cheaper to import it into our territory without the consent of the manufacturer or the copyright holder. Naturally, this could affect the prices towards their reduction, “- Medvedev hopes (quoted by a transcript published on the government website).

« For “and” against “

«Opinions on account of the introduction of parallel imports at the meeting were divided – says Mozhenkov. – Unanimity was not even in the ROAD: on the advice of the association had to be put to a vote, but after the meeting, most participants expressed “for”. “Importers are now the monopoly and a quarterly rise in the price of spare parts and the dealer does not have the right to purchase any one part is not the importer,” – he says. By his estimation, parallel imports will reduce the average price on the market: spare parts imported in this way, will cost 30-60% less.

For authorized dealers appearance of parallel imports is not only an opportunity to attract car owners that cater to cars Warranty (in this case, you still need to buy spare parts from authorized distributors), but also those with the machine age is 4-6 years. “And here it would have helped cheaper parts, because of which car owners after the end of the guarantee go to informal services,” – said Mozhenkov.

But the producers themselves – strongly opposed. The Executive Director of the Association of International Pharmaceutical Manufacturers (AIPM) Vladimir Shipkov told RBC that the position of the association members to resolve parallel imports “extremely negative”. “We believe that its introduction is fraught with the legalization of treatment of substandard counterfeit medicines”, – he explains. Contrary to the fears of importers, the lack of restrictions on parallel imports into Europe does not lead to an increase in counterfeit and gray import objects representative Shuvalov.

Concerns about authorization of parallel imports has always expressed and participants of the market of home appliances and electronics. Since its introduction, many players may move their production to neighboring countries, according to the presentation of one of the participants in the meeting with the Prime Minister. According to estimates of market players, likely due to the transfer of procurement operations abroad, the outflow of capital in 2016 could reach $ 20 billion, while the shortfall of taxes – nearly $ 3 billion. However, according to the interlocutors RBC attending the meeting, the question of the resolution parallel importation of consumer electronics is not discussed.

The FAS provides several measures to protect against counterfeiting: the creation of specialized customs posts, the same supervision by the Federal Customs Service for traditional importers and parallel imports, as well as providing guaranteed ability of a manufacturer to check the goods for authenticity (the measures listed in the presentation Artemyev).

In order not to hurt foreign investment and import substitution, FAS offers foreign holders further localization of production, including the production of consumables and spare parts. In this case, the import of similar goods owner, produced abroad can be left under the ban.

The FAS has several times offered in pilot mode to lift restrictions on imports. In mid-2014 the agency prepared a bill, which proposed to exclude from Article 1487 of the Civil Code indicates the possibility of imports of goods protected by trademark, only in the case if the copyright holder has given express consent to their import to the territory of Russia. Change, in fact, meant that the product can be purchased from anyone if the manufacturer sold it anywhere in the world, not just in Russia. It was assumed that the amendments will enter into force on 1 January 2020, and the government will be able to identify individual species and groups of products, for which parallel imports will be allowed before the specified date. The document has been posted for public examination, which ended in October last year, but the decision was taken.

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