Parallel imports not illegal say channel

Zia Askari New Delhi, Oct 27

While Korean electronics major Samsung is moving ahead full
steam with its campaign to counter parallel imports, the channel community in
the region feel that the practice of parallel imports is not illegal in any way.

"This is an age of globalization. If dealers buy Samsung
products from other markets like Singapore, Hong Kong or Taiwan, it is not
wrong. Dealers pay duty to the government, so where is the question of
illegality here? We too are against resellers and dealers who are importing
counterfeit products. I think that Samsung should concentrate its efforts on
addressing the issue of counterfeiting instead," explained Jaideep Poddar,
from Chandigarh-based Independent Business Machines.

Speaking about the issue, Puneet Singhal, President of New
Delhi-based CMDA (Computer Media Dealers Association) said that there is no
question of parallel imports as channel players pay the required duty to the
government. "I agree that channel players should provide proper MRP
stickers and information about the products that they sell. Associations across
the country are here to promote ethical practices, but the concept of parallel
import is not illegal," he added.

Dismayed by the company's move, there are channel players who
are looking at discontinuing their business with Samsung. "If I am getting
legal notices from Samsung, why would I sell the company's products? I am sure
that other vendors will be closely watching this issue as well," added a
channel player from Kolkata on conditions of anonymity.

Meanwhile, Samsung has moved ahead to withdraw cases against
those channel players, who have acknowledged the fact and given an undertaking
that they will henceforth not indulge in parallel imports of Samsung branded
products.

"The matter has been amicably resolved with a majority of
those named in the case. For those who have given the undertaking, we will be
withdrawing the cases against them," informed Sanjay Sharma, VP- IT
Division, Samsung India.

"Samsung has withdrawn their case against Kolkata-based
Saboo Computers and we are now looking at educating our channel players in terms
of ethical best practices in association with Samsung," informed, VK
Bhandari, CEO of Kolkata-based Supertron Electronics.

As a part of its broader strategy to counter parallel imports,
sources close to the company say it is working on 'internal alarms' being
put into service when there is a big sale in geographies like Hong Kong,
Singapore or Taiwan.