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Title

Theoretical Aspects of Parallel Imports’ Situational Impact on the Range of the Shadow Economy

Author

Oleksandr Hrebelnyk, Vadym Borsa, and Mykhailo Ishchuk

Citation

Vol. 22  No. 1  pp. 609-617

Abstract

Contemporary international trade experiences an increasing part of export and import operations comprised by goods referring to intellectual property. A significant problem in this area is a certain contradiction of how parallel imports run in the national market of Ukraine. Such contravention provokes monopolization and brings the intellectual property market underground. The purpose of the paper is comprehensive justification of the “parallel import” as an economic category, and determination of the optimal mechanism for state regulation of the movement of foreign goods of intellectual property across the customs border of Ukraine. The article analyzes the problems and theoretical issues related to the flow of parallel imports, counterfeit and fake goods across the customs border of Ukraine. Our analysis of markets proves that the implementation of an international or transnational principle opens the market for an unlimited number of sellers, which should guarantee the minimal margins. Our research on the intellectual property market in Ukraine reveals a certain contradiction between legislative decisions and their practical implementation. It is discovered that Ukraine actually has the national principle of exhaustion of intellectual property rights, backed up by customs regulation through such an instrument as the customs register. In our opinion, the best solution would be to implement a legally established international principle saving the option for a national principle, for example, for industries with low inter-brand competition.

Keywords

digitalization, intellectual property rights, customs register, counterfeit goods, parallel import, shadow economy.

URL

http://paper.ijcsns.org/07_book/202201/20220180.pdf