Parallel Import: Theory, Practice and Specifics in the Context of Sanctions Restrictions

Abstract

Parallel import refers to one of the controversial and ambiguous issues actively discussed in scientific literature over the past decades. On the one hand, parallel import is associated with the violation of intellectual property rights of trademark owners, and on the other hand, it is an indirect tool to combat price discrimination on the world market. Parallel import as a forced measure under sanctions is of particular research interest. The legalization on parallel imports in Russia, which allows to freely import certain goods into the country without the copyright holders’ permission, is aimed at countering large-scale anti-Russian sanctions, maintaining stable trade turnover and protecting the domestic industrial sector. The purpose of the work is to study the reasons for parallel import existence, its positive and negative aspects, as well as the specifics of importing goods into the country under sanctions. The methodology of the study is based on the analysis of international and Russian legislative framework, generalization of scientific and practical approaches to parallel import issues, as well as statistical data. The results of the study allows us to conclude that using the term «parallel import» to characterize the processes of importing goods under sanctions is not entirely legitimate due to the absence of the main, authorized import channel in most cases. The work provides a risk map related to the use of a parallel import scheme in the activities of Russia’s enterprises. The findings can be applied by commercial and industrial enterprises in devising a risk minimization strategy in conditions of sanctions restrictions.