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Scotch Whisky producers will urge
European Commissioner Sir Leon Brittan when he visits
Edinburgh tonight to intensify his fight against
imitation whiskies in Taiwan. |
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Scotch Whisky has had considerable
success in Taiwan, with exports worth £72 million in
1996. But this achievement has been undermined in the
last eighteen months by an explosion of counterfeit,
imitation and Scotch Whisky look-a-like products. |
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Fraudsters are deliberately
deceiving Taiwanese consumers with products whose
packaging strongly resembles those of well-known
international brands, with the use of false age
statements, or with product which is described as Scotch
although it contains little or no Scotch Whisky. |
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Packaging and labelling to give a
product a Scottish appearance is also used to deceive
consumers. |
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Industry reports indicate that
imitation products now account for as much as 60 per cent
of all whisky sold in Taiwan. |
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The growth of these imitation
products is a direct result of the current tax
differentials between Scotch Whisky and other whiskies,
and the lack of any legal definitions of spirit drinks in
Taiwan, including internationally recognised geographical
descriptions such as Scotch Whisky. |
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The
present tax regime levies NT$440 a litre on Scotch
Whisky, but only NT$198 a litre on other whiskies. The
lower rate provides an incentive for imitations and
allows them to undercut Scotch Whisky. |
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But
changes to the tax system are expected. Proposals to
introduce a uniform tax rate for all spirits are
currently before parliament. |
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In
a bid to combat the imitators, The Scotch Whisky
Association has submitted proposals to the Taiwanese
authorities for the introduction of definitions in line
with international standards. |
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Hugh
Morison, Director General of The Scotch Whisky
Association, said: "Taiwan is becoming the dumping
ground for these imitation products. As a result,
consumers are being misled, the genuine trade in Taiwan
and the Scotch Whisky industry are being undermined and
losing sales, and the Taiwanese government is losing tax
revenue. |
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"We
are delighted that Taiwan is now looking to introduce tax
changes and would urge them to complete the job this year
by implementing the necessary legislation on tax,
definitions and labelling. This would bring about an
orderly market, eliminate fakes and be in everyone's
interests. |
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"We
have already sought the help of the new President of the
Board of Trade, and will be urging the European
Commission to stress to Taiwan the importance the EC
attaches to resolving this problem this year." |
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