Samsung warns UAE over parallel imports

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By  Published  October 31, 2006

THE PRESIDENT of Samsung Gulf Electronics has called on the UAE Government to implement tougher restrictions on the parallel importation of branded consumer electronics goods, warning that the current level of grey market trade could impact foreign investment.

The revelations come as sister company Samsung India Electronics secured a court injunction against several Indian retailers selling Samsung products outside of regulated distribution channels.

A recent ruling by the Indian Supreme Court declared that grey market trade was illegal and contravened copyright laws.

Je Hyoung Park claimed Dubai’s role as a major international base for the redistribution of consumer electronics goods made it particularly vulnerable to parallel imports.

“Discounted goods are being picked up by grey market distributors and shipped to markets where legitimate established channel distribution agreements exist,” he claimed.

“Samsung and its Gulf partners have pleaded with UAE authorities to rein in grey market trade. But very often we are told that there is nothing that can be done to stop it. If the Dubai government wants to maintain economic growth then they must act to halt this trade.”

The situation in Dubai stands in contrast to the recent developments in India, which has seen government authorities raiding grey market distributors and shutting down their businesses. Sanjay Sharma, VP of Samsung India, hailed the ruling as “historic” and described it as a victory for consumers and vendors alike.

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