FAS STUDIES A TATARSTAN INITIATIVE ON COMBATTING ILLEGAL BREWING PRODUCTS

 Tatarstan is going to launch an experiment on 1 April 2020 for marking transport packaging – kegs

FAS took part in a video-conferencing conducted jointly with Tatarstan Gosalcoholinspection [State Alcoholic Inspection of the Republic of Tatarstan] and beer producers that supply brewery products to Tatarstan.

The discussion focused on the keg marking experiment in Tatarstan.

As agreed upon with Rosalcoholregulirovanie [the Federal Service for Alcohol Market Regulation] and to counter illegal trade with draught beer, an experiment will be launched in April 2020, where market participants are asked to voluntarily mark kegs. It is estimated that all bona fide market participants will support the experiment. Therefore, draught beer will be traded only in marked kegs, freeing the market from illegal products.

Representatives of the brewing industry highlighted absence of the necessary regulations on the experiment, technological ill-preparedness to include the keg marking chain in the USAIS system*, inability to reconstruct production and recording technologies in such short span of time, as well as some excessive requirements that complicate logistical flows. At the same time, the discussion participants were unanimous about the importance of undertaking efficient steps to suppress off-the-book sales that, according to some experts, reach up to 70% in this segment.

Head of FAS Fiscal Control Department, Vladimir Mishelovin also supported the efforts of Tatarstan Gosalcoholinspection to counter circulation of illegal products. He emphasized the importance of an open dialogue with representatives of business in a broad sense, particularly, involving economic entities of Tatarstan, representatives of small and medium business.

At the same time, Vladimir Mishelovin drew attention of the video-conference participants that FAS continues investigating statements concerning the experiment under discussion.

“Within the scope of powers of the antimonopoly authority, FAS is verifying conformity of the regulatory framework to the federal law in the part of the market regulation powers assigned to the levels of the subjects of the Russian Federation.  We will watch the situation in order to prevent preferential conditions for particular economic entities or creating discriminatory conditions for others”, pointedout Head of FAS Fiscal Control Department.

Finally, Vladimir Mishelovin added that it is also necessary to discuss organizational and technical support from Rosalcoholregulirovanie [the Federal Service for Alcohol Market Regulation] as the federal regulator that signed the agreement with Tatarstan Gosalcoholinspection to carry out an experiment.

Reference:

*USAIS – United State Automated Information System.