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Fluke and Comtest send a warning to 'grey goods' importers

8 August 2007 News

‘Parallel importing’ or the selling of ‘grey goods’ has become a common occurrence in the South African marketplace.

Unfortunately this often results in products being sold in South Africa that have not been designed for use in this market and therefore do not meet the local standards. Products destined for the Chinese market, for example, with Chinese markings and instructions with ranges, resolutions and accuracies required for that country, find their way to mines and industrial companies around South Africa.

First time users who cannot read Mandarin have no idea how to use the equipment or whether it is compliant with South African regulations. When the equipment in question is used on high voltage installations which could result in injury or even death to the person testing it, something needs to be done to make parallel importing very difficult for the companies selling and distributing these products. Even products that find their way onto our shores that are compliant with local standards are not guaranteed or serviced by the official distributor or its principal, and often the companies buying these products find out too late that they have been duped.

Fortunately the South African government has taken a stand on this issue and Notice No. 107 of 2007, published in the Government Gazette of 9 February 2007, requires persons selling or distributing 'parallel imports' or 'grey goods' to prominently display notices and affix appropriate notifications on the products being traded, to the effect that the goods in question are 'grey goods' and are not supplied with the authority of the official South African distributor of such goods, nor are they necessarily guaranteed or serviced by the official distributor or its principal. Failure to do so constitutes a criminal offence.

To further safeguard the Fluke electronic test tools brand and ensure that the stringent safety and quality standards used in the manufacture of its products are complied with, the Fluke Corporation recently assigned the South African copyright in the Fluke copyright works to Comtest. Peter Verwer, MD of Comtest says: "This will effectively make it much harder and more costly for Fluke 'parallel imports' or 'grey goods' to be sold in South Africa. If the companies currently parallel-importing Fluke products into South Africa do not abide by the South African laws governing 'parallel imports' or 'grey goods', Comtest is entitled to lay criminal charges and institute legal proceedings against these companies."

Peter Verwer, MD of Comtest
Peter Verwer, MD of Comtest

The Fluke copyright agreement gives Comtest the exclusive right to reproduce, or to authorise others to reproduce the Fluke copyright works in South Africa. These works include labels and features of get-up, instruction leaflets, booklets and the like, describing characteristics and/or the manner of use of the products. This gives Comtest the right to give effect to, and protect, the rights granted to them in terms of its distribution agreement for electronic testing equipment with the Fluke Corporation. "Any 'parallel importer' can therefore not import and sell any Fluke product in its original box, nor can they provide the original instruction manuals and/or copied versions, but need to completely repackage the instruments and rewrite the instruction manuals themselves," adds Verwer.

Letters have been sent to the companies known to be importing and/or offering Fluke products for sale or distribution, that are not supplied by Comtest, or under Comtest's authority, instructing them to cease all activities of this nature.

Letters have also been sent to dealer outlets and clients in industry, asking them to ensure that they only buy their Fluke products through a Comtest authorised Fluke outlet to safeguard the Fluke brand, their company and most importantly the safety and welfare of South Africans working with this equipment in electrical applications. This will ensure that the stringent safety and quality standards used in the manufacture of Fluke products are complied with.



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