The Belarusian authorities introduce identification marks for footwear and some other goods in an effort to protect market from cheap poor-quality imports. The introduction of identification marks on December 7 can result in the disappearance of cheap goods of good quality from shopping centers and outdoor markets. The number of "individual entrepreneurs" can decrease because the sale of goods without identification marks is punishable by a fine of 20 times the Base Rate (31,000 rubels at present) and the confiscation of goods and proceeds from their sale.
When the Council of Ministers and sectoral ministries are failing to meet targets, they suddenly become concerned with national economic interests and risks for domestic manufacturers. Since import duties are very high, official opt for non-tariff barriers. When the range of measures like import limits, sanitary certificates etc. is exhausted, authorities introduce new marking requirements, allegedly to protect the market from poor-quality and fake-brand goods. The goal seems noble, but the means are harmful and costly.
The Council of Ministers initially persuaded the president to apply the new marking requirements to 21 items, including beer, motor oils, vegetable oil, detergents and non-alcoholic beverages. However, manufacturers in other sectors insisted that the list should be expanded.
The Council of Ministers' directive adds coffee, tea, food supplements, footwear, CDs, DVDs and mobile phones to the list of goods that must carry identification marks (stamps). The sale of the listed goods without identification marks will be prohibited starting December 7. This was the third time authorities expanded the list. When consumers go to stores to buy tea, coffee, DVDs, CDs, mobile phones and footwear before Christmas and New Year's Day, they will be surprised to find out that prices of these goods are 15 to 30 percent higher and there is not much choice. Some goods can disappear from market shelves.
When the government introduces a new measure, it usually forgets about logistics. It forgets to supply marking stamps, approve the application form, limits stamp issue hours or fails to do something else.
Given modest income of households in the provinces, pensioners, big families and students will fall the first victims of the government's marking war with consumers. Vendors are Target N2. Experts estimate that the measure can force up to 50,000 vendors out of business.
Shop owners will have to buy stamps, queue up at the post office to pick up the stamps and register their contracts with tax authorities. They will be subjected to regular inspections for compliance with the marking requirement. It all takes money and time. This means that the cabinet complicates conditions for small businesses in defiance of the Belarusian leader's recommendation that authorities refrain from creating new obstacles.
The Council of Ministers has not yet explained the mechanism of implementing the directive. It would be easy to mark all the listed items, but footwear. Neither manufacturers nor wholesalers have equipment and technologies for applying stamps to shoes. They do not have any idea where these marks should be applied.
On the other hand, it would be quite easy for big smugglers to fake the marks. The government's fight against smugglers and the so-called "grey" sector definitely affects vendors and consumers. Later, when thousands of vendors will gather in central Minsk to protest the move, officials will pretend as if they do not understand why people are angered by their solicitous policies.