parallel importing

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parallel importing

the practice whereby independent importers buy a particular manufacturer's product from a low-priced market source and sell it in direct competition with the manufacturer's appointed distributors in the local market, usually at a lower price. Parallel importing has been prominent in the European Union where differences between member countries' price levels, along with manufacturers' practices of granting lucrative EXCLUSIVE DEALING rights to selected local distributors, have created profitable segments for independents to exploit.

Parallel importing is seen as beneficial by advocates of FREE TRADE and COMPETITION POLICY as it breaks down barriers to INTERNATIONAL TRADE and PRICE DISCRIMINATION between markets, leading to a greater harmonization of international price levels. See IMPORTING.

Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

parallel importing

a form of ARBITRAGE whereby an independent importer buys a particular supplier's product at a low price in one country and resells it in direct competition with the supplier's appointed distributors in another national market where prices are higher.

Parallel importing helps promote FREE TRADE and competition by breaking down barriers to INTERNATIONAL TRADE and undermines PRICE DISCRIMINATION between markets by suppliers. See IMPORT.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
(158.) See id.(discussing the current status of parallel imports in Mexico; and recent regulations and treatment in the areas of patents, copyrights, and trademarks).
He pointed out that invariably when such cases came to light, it turned out that parallel imports were to blame.
Price discrepancies among Member States of the European Union (EU) have resulted in a practice known as "parallel imports," whereby individuals purchase products on the market in low-price countries, export them to high-price countries for resale at a profit, and still undercut the manufacturer's official selling price.(2) General principles of economics suggest that such actions will continue as long as the costs of transportation are less than the profit derived on resale.
In placing South Africa on the list, USTR objected not only to South Africa's authorization of compulsory licensing and parallel imports, as well as other intellectual property policies.
Parallel imports purchased privately abroad and brought to the UK by their new owners are excluded.
It said the alcohol products consumed by the victims were suspected to be fake and most likely smuggled into Malaysia under the guise of parallel imports of the original product as they were neither Malaysian products nor bottled by licensed bottlers in the country.
Global diaper majors operating in Russia may bear significant losses in the local market this year, due to a recent decision from the Russian Constitutional Court, the highest court in Russia, to legalize parallel imports in Russia.
Therefore, it is the pressing need of the hour to take decisions to curb parallel imports of cell phones.
The EU Commission's position is that parallel imports increase price competition as the import of goods from a country with lower prices forces sellers in the country of destination to reduce prices.
Imports of same goods and services by several companies (or parallel imports) are legally permitted, and there is no additional commission or agency fee for such imports.
In an effort to correct the situation, the auditor recommended changing the way the average wholesale price was set, revoking the licence of companies that repeatedly and without justification, refuse to take part in public competitions, prohibiting the same company from holding permits for more than one alternative drug, and simplifying procedures for importing pharmaceuticals through parallel imports to increase competition.
Industry players had long wanted the government to crackdown on smuggling and parallel imports. Eddy Cherfan, CEO of Cherfan, Tawil & Co.

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