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The business supports 4 steps to reduce the amount of illegal alcohol

24/ 10/ 2019
  On October 22, the Ministry of Economy hosted a meeting on the reform of the alcohol sector, which was attended by representatives of the European Business Associations Committee on Imports and Retail Alcoholic Beverages. According to the WHO, in Ukraine, the proportion of illegal alcohol is about 45%. In terms of money, it is approximately UAH 10 billion. Thus, according to business, the main violations are observed during: Production of alcohol by the State Enterprise Ukrspirt. In particular, it is a monopoly on the alcohol market, the lack of flow meters at most plants, the release of denatured alcohol without electronic accounting, the operation of factories that do not function. For example, having around 80 distilleries in Ukraine, only about half of them are factually working. However, almost $ 250 million is allocated from the budget for their support. That’s why the first step in resolving the issue of the monopoly could be the adoption of draft law № 2300 on demonopolization. Shipping and delivery. In alcohol delivery, the documents are either not issued or are not authentic. At the same time, control of individuals parcels and their content does not take place during the mailing, which makes it possible to send alcohol of any quantity, any quality and without documents. Implementations. The main offenders are illegal online stores, so-called «rozlyvayky», small shops in remote country places. This is due to a lack of control, overregulation of the license cancellation process, etc. Taking into account the current situation, the business community proposed to the supervise bodies shorty to make a stocktaking (with the involvement of business as an independent commission) of the factories and identify non-working ones, restrict the transfer of alcohol to individuals, and develop clear rules of trade via the Internet. Christina Linichenko. Head of FMCG direction of the European Business Association. Besides, one of the proposals that were also actively discussed – this year to develop an electronic system that should control the movement of alcohol and excise goods. It is now imperative to minimize the impact of the human factor when exercising control. After all, the presence of a person in the excise warehouse confirms the ineffectiveness of the control system. We hope that these steps will be made soon. Otherwise, the amount of illegal alcohol will only increase.

On October 22, the Ministry of Economy hosted a meeting on the reform of the alcohol sector, which was attended by representatives of the European Business Association’s Committee on Imports and Retail Alcoholic Beverages.

According to the WHO, in Ukraine, the proportion of illegal alcohol is about 45%. In terms of money, it is approximately UAH 10 billion.

Thus, according to business, the main violations are observed during:

  • Production of alcohol by the State Enterprise Ukrspirt. In particular, it is a monopoly on the alcohol market, the lack of flow meters at most plants, the release of denatured alcohol without electronic accounting, the operation of factories that do not function. For example, having around 80 distilleries in Ukraine, only about half of them are factually working. However, almost $ 250 million is allocated from the budget for their support. That’s why the first step in resolving the issue of the monopoly could be the adoption of draft law № 2300 on demonopolization.
  • Shipping and delivery. In alcohol delivery, the documents are either not issued or are not authentic. At the same time, control of individuals parcels and their content does not take place during the mailing, which makes it possible to send alcohol of any quantity, any quality and without documents.
  • Implementations. The main offenders are illegal online stores, so-called «rozlyvayky», small shops in remote country places. This is due to a lack of control, overregulation of the license cancellation process, etc.

Taking into account the current situation, the business community proposed to the supervise bodies shorty to make a stocktaking (with the involvement of business as an independent commission) of the factories and identify non-working ones, restrict the transfer of alcohol to individuals, and develop clear rules of trade via the Internet.

Christina Linichenko Head of FMCG direction of the European Business Association
Besides, one of the proposals that were also actively discussed – this year to develop an electronic system that should control the movement of alcohol and excise goods. It is now imperative to minimize the impact of the human factor when exercising control. After all, the presence of a person in the excise warehouse confirms the ineffectiveness of the control system.

We hope that these steps will be made soon. Otherwise, the amount of illegal alcohol will only increase.

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