Flood of counterfeit goods hurting the national economy

Counterfeited products carrying trademarks of original brands are widely-spread among venders in lower prices.

The private sector is behind an inflow of counterfeit and expired goods to the country which are causing numerous economic problems, said Dr. Ali al-Zabaidi, the head of the Customs Authority.

He called private enterprises to cooperate with the authorities, especially commercial courts, to help oversee the fight against counterfeiting

Al-Zabaidi submitted a working paper to the National Symposium of intellectual property – composed of judges and lawyers, which ended last week.

He said that the agents of the businesses products are responsible for providing information and data about counterfeited goods to enable concerned authorities to seize the violations. He said "some agencies are involvement for purchasing counterfeit goods, particularly spare parts, to pass on cheaper cost to customers. Some of these agencies have the original spare parts but are unable to sell them in prevailing market conditions.

There are a few businessmen in the field of industry and commerce who are cooperating with authorities to protect their products and the national economy. But there is an army of distributors, especially young people who are the real force behind the circulation. 

Al-Zabaidi said there should be an awareness campaigns against counterfeited and adulterated goods which have negative health, economic and social effects.

Al-Zabaidi stressed that there is no cooperation between agents and owners of brands, wholesalers and retailers dealers, importers, in addition to the carelessness of the owners of registered trademarks in protecting their rights.
The smuggling of counterfeited medicines has become a phenomenon dominating the smuggling operations in Yemen, saying that "every month the customs reveals a number of seizures of smuggled counterfeit and adulterated medicines, although they are exempt from customs tariff and taxes." 

The Head of Customs attributed the causes of counterfeit good proliferation to an insufficient quantity of laboratories at customs entries belonging either to the Specifications and Standards Organization or the Customs Authority, an expansion of the domestic market, a poor level of awareness about the dangers of counterfeited goods – in terms of the cost of maintenance and repairs, as well as health and environmental effects. Additionally there is a shortage of trained inspectors to carry out anti-fraud policing in Yemen.

There are many other causes of counterfeited goods spreading such as the weakness of the collective role of bodies and institutions involved in combating commercial imitation and counterfeiting of goods, not putting many fake and counterfeit goods in the lists of prevention for entering to the country, and a lack of financial incentives for those making seizures. 

Al-Zabaidi stressed the need to revise the prices of goods to fit with the purchasing power of consumers. He raised the need to improve the quality of current laboratories of Customs Authority or Specifications Organization, and providing them with specialized officials to reveal the violations and bring them to court.

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