Counterfeit products threaten jobs, businesses

COUNTERFEIT products produced or imported into Papua New Guinea (PNG) weaken employment of locals and the domestic economy, Panamex Pacific (PNG) Ltd general manager Erich Illemann says.
“Foreigners involved in counterfeits for business are threatening the job market and the wellbeing of locals,” he added.
Illemann spoke after police and customs officers seized 268 boxes of counterfeit Waswas brand soap packed in a 20ft container in Lae and were about to be transported to Mt Hagen, Western Highlands, on Thursday.
He said replacing imports on some products produced locally was the way to help the country reduce imports.
“Unfortunately, many onshore companies are starting to manufacture products locally and brand it as PNG made.
“When we start applying import tax on raw materials, the same as the manufactured goods, then manufacturing of PNG-made products could fall, leading to other associated impacts.
“This is because the cost of producing those PNG-made products in the country now is much higher than the cost of producing those same products offshore,” he added.
Illemann gave an example as the recent constant power outages which caused manufacturers heavy losses and other impacts affecting business.
He warned that if the same import tax was to be charged on import of raw materials together with other finished products from offshore, then there was a possibility of a fall in manufacturing goods onshore.
“With the circulation of counterfeit products being manufactured in the country or being imported, it is a serious concern now that has to be addressed fully to protect jobs and other aspects for Papua New Guineans,” he said.
An inside source revealed that this was the second time the same counterfeit brand of soap boxes was seized.
The first was earlier this year but because of sketchy information, it was not reported.
Lae Metropolitan commander Chief Superintendent Chris Kunyanban said the Government had to tighten laws to protect the interests of business houses and the people.
“This is a national security issue on our economy and needs to be addressed fully so that business houses onshore are supported in this trying times when forex is becoming an issue now. One aspect is the forex issue facing the business houses like Lae Biscuit Company, Panamex PNG and others.
“Counterfeit products are sold at low prices and people are buying them thinking it was genuine, threatening genuine products produced domestically,” he added.
Kunyanban warned foreigners involved in counterfeit products that they would be deported.
“Such foreigners should be heavily fined as well,” he added.