National 6 (Spotlight Weekly)

Too Little, Too Late

Department stores and other retail outlets are full of counterfeit products, undermining revenue collection and consumers' interests

By A CORRESPONDENT

Despite the efforts of the government to check the inflow of illegal goods, department stores and groceries are filled with such products. Apart from hampering indigenous industries, the large-scale sale of such spurious products is hitting revenue collection in a cash-strapped economy.

Nepal Lever Limited has been suffering from the illegal import of such products into the Nepalese market. Although the government's Label Act prohibits the import of such products, soaps, toothpastes and cold creams produced for sale only in Indonesia, Malaysia and India are easily available in the market. Most of these products have clear labels suggesting that they are not intended for sale in Nepal.

Nepal Lever brands : Hit by counterfeit products

With the initiative of Nepal Lever, the government had taken action against some importers a few months back. But such products continue to adorn store shelves. Because of lapses in the agencies concerned with enforcing the rules and improper coordination, such products are being allowed to enter Nepal.

Nepal Lever Ltd. has exclusive rights over the sale of certain toothpastes and Lux soaps, but nobody seems to be bothered about this reality. Although the Departments of Customs and Industry have already issued directives against allowing such imports, the market is full of these products.

If such products continue to enter the market, they will not only continue to undermine domestic industries like Nepal Lever but will also deprive the government of revenue. According to an estimate, the government is currently losing revenue worth millions of rupees because of the easy entry of such products into the Nepalese market.

In an effort to generate greater awareness on the key issues involved, a brand specialist from India recently discussed the matter with government officials, entrepreneurs and the media. "The entry of illegal products in the country will cost revenue as well as deprive the consumers of quality products," said Sujata Tiwari of the Federation of Indian Chamber of Commerce and Industry's Brand Protection Committee. "Because of economic recession in certain countries, such products are travelling to other countries."

Experts argue that these problems cannot be solved without increasing the level of consumer awareness. "A massive consumer awareness program needs to be launched to discourage this practice," said Tiwari. Nepal has a Brand Protection Act and other legal instruments on protecting consumer rights, but they are not implemented effectively.

Had the government enforced the acts with determination, industries like Nepal Lever would not have had to worry. "Joint action is needed to discourage such practices. If the government were to show more serious concern, more than 80 percent of the problems could be solved," said Tiwari.

In a country where only a few consumers are aware about brands and products, the government must take strong action against those who sell spurious products and items that are not intended for the Nepalese market.

General's Album

Despite being in the thick of things, General Prajwalla SJB Rana, Chief of Army Staff, Royal Nepalese Army (RNA) along with Smdhu Rana, his wife has come up with four music albums simultaneously. An avid army-man, General Rana found time to pen his thoughts and write some splendid songs for the albums. On Saturday last week (May 18), General Rana released the albums amid an informal function. The four albums included "Dhanya Pirati", "Bhakti Bhajan Bhawana", "Mato Samau" and "Rashmi Prem Prarthana". General Rana's better half Sindhu Rana is also a known lyricist. The songs in the albums range from patriotic to religious and also emotional love songs. Popular musicians have scored the music of the albums and reputed singers have lent their voice.