Parallel imports not illegal say channel

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,”
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. 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“Samsung has withdrawn their case against Kolkata-based Saboo Computers and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.