What's to stop contraband in Ukraine?

This question was discussed by household appliances and electronics market participants, executive and legislative branches officials during the round table on the topic: «How household appliances smuggling kills legal business in Ukraine»

On the 5th of July executives of the sector biggest companies – «Samsung Electronics Ukraine», «Sony Ukraine», «Сanon Ukraine», «Foxtrot», «Аllо», Rozetka.ua and officials of the Department dealing with customs violations of the State Fiscal Service and Committee on Taxation and Customs Policy of the Verkhovna Rada of Ukraine members, – discussed the reasons why Ukraine still fails to overcome situation with home appliances and electronics smuggling.  


Deal of the contraband goods is growing up precipitously in this sector. For example, in the category of IT products it varies from 15% to 40%, and among smartphones is about 25% (according to the Association of Information Technology Enterprises of Ukraine (AITEU) data. According to «Sony Ukraine» CEO, Tatsyo Takahasi, taking into account premium-smartphones Sony it makes up 45%, and in situation with large screen TVs – it rises up to 60%.


Dealers are no less categorical in situation estimation.

- There is contraband in the every country, but it is 3-5% of the total market, in Ukraine this figure reaches 40%, – considers Valery Makovetskiy, the head of «Foxtrot» group of companies.  


On his opinion the matter is in the imperfection of the legislation regulating the import of equipment for personal use by individuals and lack of Ukrainian sellers commitment to work with transactions’ registrar only.

Valery Makovetskiy reminded, that previous year there was unsuccessful attempt to implement legislative provision on the mandatory use of transactions’ registrars.

- The crowds of protesters gathered under the Rada then, explaining their protest by registrars’ high cost, complexity of the business environment. We are working – and paying taxes and wages, and do not see the problem! Mandatory use of registrars for import sellers will lead to the fact that 90% of contraband automatically vanish from our market. In case we won’t do it – will have empty budget, low teachers’ and other state employees’ salaries, bad roads, Crimea, East.

How should State act in order to change situation for the better?

Discussion participants, gathered by portal for business «Kontracty.UA» offered comprehensive approach. The companies – official importers and household appliances sellers offered the government to introduce stricter customs control over the so-called «parallel» import of equipment and forced further audit.

One of the first steps in the fight against «grey import» – introduction of mandatory trademark indication on the legislative basis.

But the real smuggling and «grey import» killer is, without any doubt, cash machine for import sellers.  

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