Latest update April 23rd, 2024 12:59 AM
Mar 22, 2010 News
Many consumers who are able to buy products at slightly lower prices than the norm will do so happily in these tough times; but most of them are also aware on some level that by the unspoken law of ‘You get what you pay for’, these products may fall short when it comes to quality. What most consumers may not want to consider however is the possibility that they could perhaps be exposing both themselves and their families to harm from products that may not satisfy required production and safety standards since they are counterfeits or fakes.
These days it is possible to get a fake version of almost anything, from a Gucci handbag, Prada sunglasses and Nike sneakers to more risky items, like ‘knock-off’ versions of cigarettes, alcohols, food items and even certain Generic medicines. According to the International Chamber of Commerce (ICC), counterfeiting and piracy have grown into a global business valued at more than US$750 billion. A report by the Organisation for Economic Co-operation and Development (OECD) indicates that up to US$200 billion of pirated and counterfeit products is moving through international trade channels alone, and it is no secret that the ‘fake’ business is good business here in Guyana, surely raking in more than a billion dollars a year when one considers the range of products for which counterfeit versions can be found.
One local company that has a serious problem with this issue and is doing their utmost to combat it is Demerara Tobacco Company (DEMTOCO). According to the Managing Director of DEMTOCO, Chandradat Chintamani, their stand against the matter has more to it than protecting their profit line but also because there are real and serious health risks associated with smoking a cigarette that contains more than just nicotine. He said that upon examination of samples of seized copies of their products, they have found fragments of insect bodies, saw dust and other unidentifiable substances in these cigarettes.
Large amounts of goods are shipped into the country and across the borders illegally to avoid paying the necessary taxes as well as to avoid having the goods inspected at the risk of seizure and destruction for being a health risk. This trade he pointed out hurts the Government as well since it heavily impacts on the revenues they receive for the goods being sold in the country.
Consider cigarettes, one of the most heavily taxed items on the market according to Chintamani. Every container of cigarettes imported into the country legally generates literally millions of dollars in taxes for the Government but it is lost when fake versions of these cigarettes are smuggled into the country.
When asked what’s being done to deal with the problem, he said that DEMTOCO has been working hand in hand with the Guyana National Bureau of Standards (GNBS) to address the problem. He noted that it was one thing to inspect retailers for the counterfeits but this course of action would be a strain on the available resources of the GNBS, considering that they have some 5000 plus outlets on record.
So instead they try to locate the persons behind the scenes bringing the items into to country in an attempt to halt the flow – hacking at the roots rather than the branches in a manner of speaking. This position was confirmed by Shailendra Rai, Head of the Legal Metrology and Standard Compliance Department who noted that they recently seized and destroyed a large amount of these products after a successful collaboration with DEMTOCO.
Taking the matter to the streets, one vendor noted that she has seen fakes with the word ‘Suriname’ written on the tear strip of the package, but she knows there are fakes that look identical to the real thing, so she does her best to purchase from the company itself or a trusted retailer who’s been in the business for years. Her reason was simple, she couldn’t afford the setback of having her stock confiscated if inspected and having to pay the fines, so as a result, she just pays for the original product. She noted however, that not all vendors thought that way and there was no way for people to tell the difference when they purchase the fakes. According to her, “Is jus time, til somebody get sick and then dey gun be problems.”
The problem spans all the products on the open market, from clothing to alcohol and is a pervasive threat to the well being of manufacturers and business owners, but moreso, it is a serious issue when consumer safety is taken into consideration, because the mere fact that a product is cheaper than the same product sold elsewhere may be that taxes have not been paid on it so the mark up price can be set at a lower figure. However, that lack of payment would also imply a lack of inspection which in itself is a much more serious risk for any consumer.
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