Tougher Rules Won't Stop Uzbek Bootleggers
Tougher Rules Won't Stop Uzbek Bootleggers
The introduction of more rigorous alcohol and tobacco excise duties is unlikely to stamp out sales of contraband goods in Uzbekistan, NBCentralAsia analysts say.
On March 10, the state-run website Gazeta.uz reported that from April 1, alcohol and tobacco will be required to carry new labeling to show proof of excise duty payment. The new design has better security features.
Local producers have six months to acquire the new labels, after which time improperly marked items will be subject to confiscation.
The authorities want to curb sales of illicit alcohol and tobacco being smuggled in from neighbouring countries, a trade which has increased recently as economic downturn in Russia and Kazakstan has encouraged greater smuggling from those countries to the Uzbek market.
Although no official data is available, NBCentralAsia analysts say the new excise rules suggest the trade has gather pace.
Previous attempts to reduce smuggling include a 2007 ban on the sale of alcohol in supermarkets and open markets, so that it is now sold only in special shops. Domestic production is in the hands of a state monopoly.
The rules introduced in 2007 have not, however, strangled the bootleg trade. Foreign-made drinks of unknown provenance are still available in the shops at attractive prices.
A drinks store shop owner in one of the smaller towns said that like other vendors, he has a lot of imports for sale, and most came into Uzbekistan as contraband.
Many analysts support the decision to introduce new excise labels, saying it will encourage local producers and force inferior-grade products off the shelves.
Tashkent-based economist Viktor Ivonin says government policy is “designed to harmonise the interests of citizens, entrepreneurs and the state”.
Vladimir Paramonov, a political and economic analyst based in Tashkent, argues that when the new labels come into force, local producers will be able to take over the domestic market.
“I would call it a measure to support local producers,” he said.
However, other commentators warn that government policy amounts to creating artificial barriers to competition, and that this will simply curtail the size of the market because local manufacturers are not in a position to fill the gap.
Ravshan Nazarov, another economist in Tashkent, predicts that the benefits of the new regulations will be short-lived at best.
“It will take the black marketeers a while to adjust, make up the counterfeit labels and stick them on,” he said. “After that everything will go on as before.”
(NBCentralAsia is an IWPR-funded project to create a multilingual news analysis and comment service for Central Asia, drawing on the expertise of a broad range of political observers across the region. The project ran from August 2006 to September 2007, covering all five regional states. With new funding, the service has resumed, covering Uzbekistan and Turkmenistan.)
On March 10, the state-run website Gazeta.uz reported that from April 1, alcohol and tobacco will be required to carry new labeling to show proof of excise duty payment. The new design has better security features.
Local producers have six months to acquire the new labels, after which time improperly marked items will be subject to confiscation.
The authorities want to curb sales of illicit alcohol and tobacco being smuggled in from neighbouring countries, a trade which has increased recently as economic downturn in Russia and Kazakstan has encouraged greater smuggling from those countries to the Uzbek market.
Although no official data is available, NBCentralAsia analysts say the new excise rules suggest the trade has gather pace.
Previous attempts to reduce smuggling include a 2007 ban on the sale of alcohol in supermarkets and open markets, so that it is now sold only in special shops. Domestic production is in the hands of a state monopoly.
The rules introduced in 2007 have not, however, strangled the bootleg trade. Foreign-made drinks of unknown provenance are still available in the shops at attractive prices.
A drinks store shop owner in one of the smaller towns said that like other vendors, he has a lot of imports for sale, and most came into Uzbekistan as contraband.
Many analysts support the decision to introduce new excise labels, saying it will encourage local producers and force inferior-grade products off the shelves.
Tashkent-based economist Viktor Ivonin says government policy is “designed to harmonise the interests of citizens, entrepreneurs and the state”.
Vladimir Paramonov, a political and economic analyst based in Tashkent, argues that when the new labels come into force, local producers will be able to take over the domestic market.
“I would call it a measure to support local producers,” he said.
However, other commentators warn that government policy amounts to creating artificial barriers to competition, and that this will simply curtail the size of the market because local manufacturers are not in a position to fill the gap.
Ravshan Nazarov, another economist in Tashkent, predicts that the benefits of the new regulations will be short-lived at best.
“It will take the black marketeers a while to adjust, make up the counterfeit labels and stick them on,” he said. “After that everything will go on as before.”
(NBCentralAsia is an IWPR-funded project to create a multilingual news analysis and comment service for Central Asia, drawing on the expertise of a broad range of political observers across the region. The project ran from August 2006 to September 2007, covering all five regional states. With new funding, the service has resumed, covering Uzbekistan and Turkmenistan.)
