Contents
- What is parallel import?
- Is parallel import legal under international norms?
- How does parallel import work?
- What goods are allowed for import?
- Customs requirements for goods
- Risks of parallel import
- Features of parallel import
What is parallel import?
Parallel import is a legal process of bringing original products into a country without the consent of the rights holder or manufacturer. This process occurs alongside supplies from official distributors, which makes it "parallel." It is important to note that parallel import ensures the availability of goods that may be absent in the domestic market, thus promoting diversity and competition.
Is parallel import legal under international norms?
According to international law, parallel import is considered legitimate and is applied in several countries. For example, in the USA, there is a system that supports the "gray" market, allowing the import of registered goods from a special list without the permission of rights holders. In European Union countries, unofficial import of certain patented medicines is also permitted. The basis for parallel import is the principle of exhaustion of exclusive rights, which means that after the first sale of a product, the rights holder loses their exclusive rights, and the new owner can freely distribute the product. There are two modes of exhaustion of rights: international, where import permission is not required, and national, where such permission is necessary.
How does parallel import work?
The essence of parallel import is that a supplier purchases products outside the country and imports them without the consent of the rights holder. If parallel import is prohibited, the rights holder organizes the import of products into the country themselves. It is important to note that parallel import was used in Russia in the 1990s and early 2000s, but it was abandoned in 2002 to attract foreign investment. However, in 2022, after the exit of foreign companies, the government again permitted parallel import to ensure the domestic market has the necessary goods.
What goods are allowed for import?
Parallel import concerns products from brands registered in Russia. The list of goods allowed for parallel import is established by the state and includes categories of products whose deliveries are limited or ceased. The list approved by the Ministry of Industry and Trade of the Russian Federation includes, among others, cars, electronics, household appliances, perfumes, cosmetics, detergents, medicines, gaming consoles, clothing, and footwear. However, it is important to remember that not all goods can be imported, and there are restrictions and exceptions for some of them.
Customs requirements for goods
The process of processing parallel imports includes standard customs procedures. When crossing the border, it is necessary to present documents for the products, submit a customs declaration, and pay duties, VAT, and customs fees. The importer must comply with several conditions to avoid recognition of the goods as counterfeit, including the presence of the product on the Ministry of Industry and Trade's list, possession of necessary documents confirming the originality of the product, and confirmation that the product was legally sold in the foreign market.
Risks of parallel import
Despite the advantages, parallel import is associated with certain risks. For example, goods imported through parallel import may not have a warranty from the manufacturer, as official distributors are released from obligations. In case of problems with the functionality of devices, such as the absence of a Russian-language interface, consumers may face difficulties. Additionally, changes in logistics chains may lead to increased costs for goods, as they may be imported through other countries, raising transportation expenses.
Features of parallel import
Parallel import in Russia has its own characteristics. The legislative framework on this issue continues to develop, and there is a possibility of changes to existing rules. Mandatory labeling of goods also remains relevant, which helps prevent counterfeit trade. Suppliers of parallel imports can only be legal entities or individual entrepreneurs, while individuals can import products only for personal use. It is important to monitor changes in legislation and compliance with all requirements for successful business operations in this field.