malvernmugadzikwa
Michael Tome
THE Government says it will intensify efforts to curb the proliferation of counterfeit products and the importation of substandard goods into the domestic market.
According to the Ministry of Industry and Commerce, this will take the form of coordinated interventions by ministries, departments, agencies and the private sector to nip the problem in the bud.
Trade in counterfeit products is a widespread problem across the world and it is growing in scope at a worrying pace while it has a considerable economic and social impact.
In Zimbabwe, counterfeit goods continue to flood the market despite the existence of legislation, enforcement and efforts to discourage the illegal trade in the goods.
According to the Consumer Protection Commission (CPC), some of the counterfeits are being made in backyard industries around the country. The products include toothpaste, peanut butter, shoe polish, cooking oil, baked beans, relish mixes, drinks and cough syrups.
Recently, the Ministry of Industry and Commerce received complaints from Tregers on the proliferation of counterfeits of its trademark Kango black pots and kitchenware in the domestic market.
Some of the products are being smuggled into the country through porous borders, putting unsuspecting customers at risk when using the substandard goods. The smuggled goods include detergents, alcohol and food products.
The United States dollar in the domestic market is considered one of the magnets attracting and promoting smuggling of the goods into the country.
To address the challenges, the Government, in March 2022, engaged global standards firm Cotecna to provide services that include testing, inspection and certification in six key areas — agriculture, food, minerals, metals, consumer goods and pharmaceuticals.
Earlier, the Government had roped in another inspection firm, Bureau Veritas, to ensure only safe and standard products found their way into the domestic market.
Nonetheless, counterfeit and substandard goods continue to find their way into the local market.
“There are several complaints that have come through and the major problem are smuggled goods, which are finding their way downtown to mop up the US dollar and it goes out of the country. This is happening as these imports are coming at the mercy of our local manufacturers,” Industry and Commerce Minister Mangaliso Ndlovu said in an interview on Thursday.
“We are getting reports that products labelled Kango are finding their way into the country. We met with guys from Kango and they showed us products labelled Kango that are coming from China. When you look at it, it means goods are smuggled through the borders, and official ports of entry.
“And it is something that we are working on as we speak because most of them are selling for cash on the streets and are not contributing to the fiscus, nor VAT, literally no benefit coming to the economy. That is the major challenge that we will be confronting,” he added.
“You find that there is an influx of South African brands, detergents, which are coming at very low prices. You know they have not paid their tariffs or duties. They are sold out there on the streets . . . We are not blocking imports, but let them go through the proper channels.”
He said local firms and small enterprises were being affected by the unfair competition from products that do not go through the formal channels and find their way into the local market.
A multi-stakeholder approach was needed to curb this menace, including the participation of the private sector, he added.
“In our view, we would want the private sector to be our watchdogs because they know imitations of their products, but also they know if these products are coming through the border officially or not.
“ Once we identify the outlets that are selling the products, we are going to be taking back the products. We’ll ask: ‘Where did you stock it from? Where did you buy it from?
“That person has to tell us how it got into the country, show us the paperwork at the border, and the law will take its course if you fail to produce the required paperwork,” said Minister Ndlovu.
Confederation of Zimbabwe Industries president Mr Kurai Matsheza said goods were getting into the country through porous borders without paying duties, threatening local manufacturers.
“While the issue of counterfeits is real, the broader issue are leaky borders. It is the border management system that must improve to curb this illicit trade practice. We suspect that those responsible for controlling and enforcing proper controls are complicit.
“We know that some products are coming in bulk through official ports of entry and as an industry, we do not control the border. Those mandated to do so must discharge their responsibilities in the interest of the economy,” said Mr Matsheza.
Worryingly, some of the products are medications.
CPC research and public affairs manager Mr Kudakwashe Mudereri said his organisation was working with the Zimbabwe Revenue Authority, police, Medicines Control Authority of Zimbabwe and other relevant authorities to curtail the supply of counterfeits.
He said the commission was worried about the proliferation of counterfeit products, which violated Section 10 of the Consumer Protection Act, which speaks about the right to health and safety.
“Most of them (substandard products) are sold on the streets and in unregistered shops, and there is no competent authority to certify these products. By that, they are exposing our consumers to health risks.
“We have carried out an enforcement blitz to make sure we get to the bottom of the issue,” said Mr Mudereri.
He said the two main sources of the counterfeit products were imports and backyard industries, including Mbare in Harare.
Bongani Ndlovu
Online Reporter