bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Monday 16.07.2018 | Name days: Hermīne, Estere

Fake jewellery, wristwatches and bags cause losses worth EUR 3.5 billion to Europe

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUProduction of counterfeit jewellery, wristwatches and travel bags causes losses worth EUR 3.5 billion to the European Union annually.

Two new studies of the Office for Harmonisation in the Internal Market (OHIM) show that counterfeit jewellery and wristwatch sales in EU member states have steadily decreased by 13.5%. Sales of counterfeit hand bags and travel bags have decreased by 12.7%.

Losses caused by counterfeit products in both sectors mean 27,000 lost jobs, because manufacturers are forced to hire fewer employees.

In addition these losses, the total decline of budget revenue is estimated ad EUR 1.1 billion in both sectors in the EU. Losses to the state budget are made up of non-paid taxes like VAT, social fees and PIT.

OHIM Antonia Campinos emphasizes that jewellery, wristwatches, hand bags and travel bags are manufactured in the EU mainly by small companies that employ ten or fewer people. Most of those companies suffer major losses due to counterfeit goods.

The study estimates that sales of jewellery and wristwatches in Latvia suffer losses of 14.7% (EUR 5 million). The situation in Lithuania is very similar to Latvia. Sales in Estonia suffer losses of 12.9% (EUR 3 million).

The situation with sales of hand bags and travel bags in Latvia shows a decline of 27.8% (EUR 4 million). A comparison of relative indexes shows that the situation in Latvia is one of the worst in the EU.

More than half of hand bags and travel bags produced in EU are made in Italy (the sector’s volume was EUR 6.5 billion in 2012). Italy provides 40% of exports and 35% of jobs in this sector in the EU. Counterfeit products cause losses worth EUR 520 million to the Italian market. It is also one-third of the lost trade volume in the EU. Italy is one of the largest producers of jewellery in the EU. Italy suffers losses worth approximately EUR 400 million annually due to counterfeit goods.

«Unfortunately, Latvia’s hand bag market suffers from counterfeit products significantly. Big brand products are counterfeited the most. As mentioned in the study, companies suffer millions worth of losses. People buy counterfeit products and this only increases the criminals’ desire to keep producing them. It is clear to me why this happens. People want to acquire good quality products, but most of the time they cannot afford them. Counterfeit products cost less but look almost identical the real deal. Designer products are classified as items of luxury. By buying counterfeit goods, the buyer makes it look like he or she can afford such things. Unfortunately, counterfeit products are usually of very poor quality. Not only does this practice hurt producers, it also supports illegal activities,» – says designer Iveta Semenova.

Ref: 102.109.109.6678


Leave a reply

Rezekne Council deputies will not be penalized for releasing newspaper in Russian language

The court has lifted fines previously applied by Corruption Prevention and Combating Bureau on nine deputies of Rezekne City Council for releasing a newspaper produced by the council in Russian language in addition to Latvian.

Volume of imported petrol in Latvia down 2% in five months

The volume of motor fuel imported to Latvia in the first five months has declined 2% in comparison with the same period of 2017. The volume of diesel fuel has declined 14.9%.

Corruption watchdog ends case about Bi-2 concert in Riga

Corruption Prevention and Combating Bureau ended in May the case regarding possible misuse of administrative resources on pre-election promotion by Riga City Council in the form of a free Bi-2 concert in Lucavsala.

Thailand's rescued boys honour casualty of 17-day rescue operation

In Thailand, a 12 boys trapped in a cave have been rescued in a rescue operation that lasted for 17 days and ended with one casualty, a rescue diver.

Latvian political party Progresīvie to nominate women as candidate list leaders

Latvia political party Progresīvie has revealed its list of candidates for 13th Saeima elections. Five women have been stated as leaders of candidate lists.

Estonia earns 150 000 euros from military evaders annually

Estonian compulsory military service is evaded by about 1 000 young men each year, who have to pay fines that annually exceed the combined total of 150 000 euros.

Chairman: FCMC’s competence should end with termination of licenses if banks are liquidated

In the event of liquidation or insolvency, Finance and Capital Market Commission’s competence should end with revoking affected banks’ license and without the need to appoint an administrator, says FCMC chairman Pēters Putniņš.

Minister: Latvia may terminate MPC system in the next three years

In the next three years or so Latvia could completely terminate the mandatory procurement component system, said Economy Minister Arvils Ašeradens in an interview to Rīta Panorāma programme of LTV.

In pictures: French victory in World Cup celebrated by tens of thousands in Paris

After the football World Cup was won by the French national team on Sunday, an enormous crowd of people gathered in central Paris to celebrate.

Another case of African swine fever infection recorded for domestic pigs in Latvia

African swine fever infection was recorded for domestic pigs in Tērvete on Monday, 16 July. 16 pigs were liquidated because of the infection, as reported by Food and Veterinary Service.

MEP Artis Pabriks becomes political party «Attīstībai/Par!» prime minister candidate

Latvian political party «Attīstībai/Par!» has picked Daniels Pavļuts, Juris Pūce, Ilze Viņķele, Artis Pabriks and Mārtiņš Bondars as its regional candidate list leaders. Artis Pabriks will also be the party’s prime minister candidate.

Russian-U.S. presidents meet in Helsinki

U.S. President Donald Trump and Russian President Vladimir Putin are meeting on Monday in Helsinki.

Heat of up to +30° C expected in Latvia this week

Weather in Latvia will be warm and even hot at times this week, as air temperature reaches up to +30° C. At night, air temperature is not expected to go below +20° C. Many regions will likely experience thunderstorms closer to the middle of the week, Environment, Geology and Meteorology Centre reports.

Week in Lithuania. Lithuania's Tripartite Council fails to reach agreement

Lithuania's Tripartite Council on Tuesday, July 10, failed to reach agreement on raising the minimum wage. Employers are inclined to back the government's proposal to raise the minimum pay to 420 euros. Meanwhile, trade unions want it increased to 450 euros.

BNN summary of the week: NATO to increase and ABLV Bank loses its license

BNN offers a summary of this week’s topical news in a variety of categories: Future; Deal; Fight; Decline; Decision; Opinion.

SEB Bank to unite life insurance companies working in Baltic States

SEB Bank will unite life insurance companies working in Baltic States, BNN was told by SEB Bank’s representative Agnese Strazda.

Saeima deputy Askolds Kļaviņš becomes suspect in criminal case

Saeima deputy from the Union of Greens and Farmers Askolds Kļaviņš has been made a suspect in the criminal case regarding abuse of official power.

Minister: E-health system has stabilized, but improvements are still needed

Functionality of the E-health portal has stabilized. Disconnection errors have ceased. Nevertheless, we have to continue improving the system further, said Latvian Healthcare Minister Anda Čakša said in an interview to Rīta panorama programme of LTV.

Six to eight Finance and Capital Market Commission officials may work at ABLV Bank

Six to eight FCMC trusties may work at the liquidated ABLV Bank, says Finance and Capital Market Commission chairman Pēters Putniņš.

Latvia’s Cabinet of Ministers receives expanded draft on deposit system

Environment Protection and Regional Development Ministry has submitted to the Cabinet of Ministers an expanded legislative draft regarding amendments to the Packaging Law and Environment Protection Law for their review in the State Chancellery, as confirmed by the ministry’s representatives.

Latvia will not escape talks on increasing defence spending

It is necessary to develop Latvia’s defensive capabilities. Because of that, Latvia cannot escape talks on increasing defence spending to more than 2% of GDP, said Defence Minister Raimonds Bergmanis, who is participating in the NATO summit in Brussels.

Russia extends food product embargo until end of next year

On Thursday, 12 July, Russian President Vladimir Putin decided to extend the embargo on food product imports from countries of the European Union and other countries until the end of next year.

Heat in Latvia to remain for longer; thunderstorms and heavy rain expected, as well

Next week in Latvia will be appropriately hot for summer, as air temperature is expected to reach +30° C at times. Nevertheless, most of Latvia will experience rain and thunderstorms, as reported by State Environment, Geology and Meteorology Centre.

US President announces «tremendous amount of progress» in defence spending matter

On Thursday, 12 July, US President Donald Trump announced having achieved a great deal of progress in the NATO member states’ defence spending matter during the summit.

Providus: it is impossible for Latvian parties to attract large funding honestly

«If we look at political parties’ ability to attract funding from large companies, for example, conclusions are rather sad – there is no way for parties in Latvia to attract funding in an honest way,» Providus think tank researcher Iveta Kažoka said in an interview to BNN.

Newest comments