Counterfeiters winning: Scovell

By DALE LUMA
THE country is losing the war to stop counterfeit products because penalties meted out to offenders are too low, says PNG Manufacturers Council chief executive officer Chey Scovell.
He told The National that the country’s fiscal regime had “incentivised illicit trade with the State losing almost half a billion kina a year from the sale of the locally grown brus product alone”.
“We have counterfeiting of local brands such as Colgate toothpaste, SP beer, Pepsi, National No 1 Tea, and of imported brands such as Panasonic batteries, Tulip, 777, Mah Ling, and of course all the sporting and apparel brand sporting goods,” Scovell said.
“Customs has found itself at the mercy of bad policy from its parent – the Treasury.
“We’ve seen the same across the board in the public service as key agencies have been without required budgets to deliver on their plans – one only has to look at the funding of the MTDP or Connect PNG.”
He said while acknowledging the good work of Customs, “we are only seeing the tip of the iceberg here”.
“They’ve picked up a few shipments for tobacco, alcohol and batteries.
“A quick walk around markets and small retailers shows there are still large volumes of these counterfeit and illicit items for sale.”
Scovell said still to be address was the “massive avoidance of duty, which also causes reduced employment and investment, in the importation of fabricated steel products, prefabricated housing, undervaluing and double invoicing of general consumer goods, through to today we still see the majority of sporting uniforms being smuggled undeclared”. “It’s illegal to grow tobacco commercially, and more importantly, none of the health regulations are complied with,” he said.
He blamed this on the failure of the State and provincial governments to stop the sale and commercial growing. “We see the same issue in the production of alcohol products,” he said.
“The State has taxed into existence a thriving illicit sector for tobacco and alcohol products.”