The proposed Anti-Counterfeit Goods and Services Bill 2023 will comprehensively address the growing issue of counterfeit goods and services trade, says Bugiri Municipality MP Asuman Basalirwa.
Basalirwa emphasized that the need for the Anti-Counterfeit Goods and Services law arose from the increasing trade in counterfeit and substandard goods in Uganda, which current laws do not adequately address.
The proposed legislation includes severe penalties and fines for those involved in the counterfeit goods trade.
“We aim to make the trade in counterfeit and substandard goods and services a very risky venture. We want to hold accountable even those who facilitate the sale or manufacture of these goods,” Basalirwa stated.
He explained that Uganda lacks a unified law addressing counterfeit and substandard goods, highlighting the necessity for specific legislation to tackle this issue.
Basalirwa made the remarks during a consultation meeting with private sector players and the government on the proposed Anti-Counterfeit Goods and Services Bill 2023 at the Sheraton Hotel in Kampala.
He pointed out that the consumption of counterfeit and substandard goods contributes to the rising number of cancer cases in the country, with many patients unable to afford treatment.
“Increasingly, people with cancer seek herbal treatments before turning to the Uganda Cancer Institute when it’s already too late,” he noted.
In July 2023, the House granted Basalirwa leave to introduce a Private Member’s Bill entitled “The Anti-Counterfeit Goods and Services Bill, 2023.” The proposed law seeks to ban counterfeit goods that infringe on intellectual property rights, focusing on copyrights and trademarks. It also introduces penalties for trading in counterfeit products and grants confiscation authority to the Uganda Revenue Authority and inspectors from the Uganda National Bureau of Standards.
Agnes Ssali, Legal Director at Uganda Breweries, citing data from the Economic Policy Research Centre (EPRC), stated that nearly forty percent of Ugandan businesses suffer due to unfair competition from counterfeit and substandard products.
She emphasized that counterfeit products and services create an unfair playing field for legitimate businesses, as those involved in counterfeiting do not pay taxes or comply with legal standards.
“This regulatory imbalance threatens legal investors and could ultimately drive them away to countries that are more protective of legitimate investments. The alcohol industry, for instance, has seen a market penetration of illicit alcohol at 65%, according to a 2021 Euromonitor Study,” Ssali said.
The fiscal loss from illicit alcohol trade is estimated to be USD 458 million (UGX 1.724 Trillion) in unpaid tax revenues annually.
“Illicit trade also threatens the livelihoods of over 1.3 million Ugandans employed by the Alcohol Sector and the over 6.3 million people supported by the sector across the value chain, including manufacturers, grain farmers, distributors, depots, retailers, bars, and clubs,” Ssali added.
Fred Muwema, Chairman of the Anti-Counterfeit Network (ACN), stated that counterfeiting is the biggest threat to human existence, encompassing the challenges people face due to consuming counterfeit products.
Thadeus Musoke, Chairman of the Kampala City Traders Association (KACITA), urged the government to increase funding for agencies such as the Uganda National Bureau of Standards (UNBS) to ensure market products meet the right standards.
“We need to increase budgetary allocations for implementing entities like UNBS and URSB. Corrupt officers promoting trade in counterfeits need to be dealt with effectively by this bill,” Musoke concluded.
