ECCP airs concern over influx of fake imported products in RP

The European Chamber of Commerce of the Philippines (ECCP) expressed its concern yesterday over the influx of imported fake products into the country.

In a position paper, the ECCP warned that "unobstructed, fakes and smuggled imports equate to systemic economic plunder," stressing that "fakes and the entry of smuggled imports, left unchecked, result in serious damage to the country, economically and diplomatically."

The ECCP estimates that the entry of fakes and smuggled imports lead to substantial business tax revenue loss to the government amounting to P1.3 billion annually.

The ECCP cited the fact that the aggregate sales of products of 11 multinational companies that are being faked stood at over P3 billion in 2001.

On top of the lost revenue stream, the ECCP said, the 11 MNCs polled indicated having spent between a nominal P30,000 plus a one-page nationwide ad, to a staggering P30 million in total legal fees and intellectual property rights (IPR) investigations over the past 14 months.

The ECCP stressed that the lack of IPR protection deters new investments.

"The government needs to act urgently. It needs to make addressing the problem a priority, and be seen doing it," the group said.

The ECCP pointed out that in Thailand, fakes still proliferate, but the country is viewed as having made considerable progress by making the fight against fakes a national concern.

Thus, the ECCP said, "We believe the Philippines must do the same."

The ECCP further disclosed that the problem cuts across several industries.

It noted that although audio/video and business software piracy rank highest in recall and media attention, the problem of counterfeits spans industries including car parts, dry cell batteries, electric light bulbs/fluorescent lamps, industrial and home use adhesive products, power tools, hacksaws, motorcycle lubricants, liquefied petroleum gas, cigarettes, etc.

But even more disturbing, the ECCP complained, is the presence of counterfeit pharmaceuticals, personal care products, electric circuit breakers and LPG tanks which could pose serious public safety hazards.

The ECCP identified China as the main source of imported fakes, but noted that some local production has started.

Taiwan and Thailand were likewise cited as sources of fake products.