Half of online IT retailers in Ukraine sell grey imports – vendors

Vendors of foreign A and B brands that sell IT goods in Ukraine warn against the growth of grey imports, saying that half of online retailers sell consumer electronics without required certificates.

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Head of Audio Video at Samsung Electronics in Ukraine Andriy Skira says that about half of online retailers in Ukraine that sell IT products offer uncertified products imported into Ukraine illegally.

"There are about 170 online retailers of Samsung television sets, 74 of them import uncertified goods. That means that about half of the retailers sell illegal goods without any restrictions. About 25% of all Samsung TV models have not been brought to Ukraine legally," Skira said referring to a study that was conducted by the Hotline website.

At the same time, he said, every year grey imports of IT products onto Ukraine constantly grow, and the national budget falls short of tens of millions of hryvnias.

"As we see, it is an upward trend. We estimate the lost market at at least UAH 500 million annually, and the loss of tax payments is estimated at UAH 30 million minimum," Skira said.

Consumer 4P Leader at Lenovo Taras Dzhamalov warns that the share of uncertified IT products may even double in the short-term outlook if the state fails to take decisive measures to safeguard the IT market against grey imports.

Senior Key Account Manager from Epson Europe B.V. in Ukraine Alexandra Tkachenko adds that online stores sell uncertified products at lower prices to attract buyers, especially against the backdrop of consumers' low purchasing power. However, the uncertified equipment tends to be of poor quality and therefore its service life is short.

As UNIAN reported earlier, on May 10, the Association of Information Technology Enterprises of Ukraine sent an official letter to Prime Minister of Ukraine Volodymyr Groysman, requesting to improve the Ukrainian legislation to protect the domestic market from grey imports. Annually, the national budget falls short of UAH 3.6 billion because of illegal imports.

On March 25, the Association also urged Chief of the State Fiscal Service Roman Nasirov to take actions against retailers that sell consumer and household appliances of well known brands without required certification.

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