Domestic producers and business associations in Kyrgyzstan once again turn to the authorities demanding the repeal of KR law number 187 on the Marking of goods control (latent) marks.

On February 18, 2010 AmCham initiated a Press Conference at the Information Agency “Kabar”.

Participants included: Ainura Cholponkulova- Executive Director, AmCham; Kuban Ashyrkulov- Executive Director, IBC; Nurbek Belbaev- Head of Center of Legal Support, Union of Entrepreneurs Association as well as representative manufacturers of goods subject to mandatory labeling with (latent) marks: Dinara Iskakova, Finance Director, CJSC "Coca-Cola Bishkek Bottlers, Marlis Alseitov- Sales Director, LLC" Abdysh-Ata", Izida Kulusheva- Lawyer "Artezian" LLC and Eugene Kim- Lawyer, CJSC "Shoro Firm".

According to Ainura Cholponkulova, approving a law on labeling of goods affects the consumers in the first place because the need for application of latent marks on manufactured goods would raise the wholesale and retail price. In addition, this law will create a favorable environment for offenders who, by means of latent marks, will be able to legalize products. "We need other measures to combat counterfeiting," added Dr Cholponkulova.

The Law “On labeling control (latent) marks” will benefit neither entrepreneurs nor the government, said Kuban Ashyrkulov. The introduction of control marks will bring additional expenses to businesses. It is not desirable during the crisis and will increase the cost of the product in the market.

Finance Manager of Coca-Cola Bishkek Bottlers (IBC member) Dinara Iskakova said that with the introduction of the law, the company would have to buy special equipment at 126 thousand Euros. Given the depreciation of equipment, additional manpower and other expenses, the price of Coca-Cola products will increase by 3-4 percent (about 0.80 som).

“In addition, the building will have to be reconstructed. The product price will increase, reducing the sales volumes, and therefore reducing tax payments to the treasury of the country," explained Marlies Alseitov, representative of the Abdysh Ata Comoany.

"In the end, Law-abiding businesses and consumers will be hurt," added Dinara Iskakova.

"It is not a fact that the State can provide entrepreneurs with latent marks. Therefore the business community will have to suspend production. After all, the authorities make provisions for violation of the law," said press conference participant Izida Kulusheva.

In 2006, the Kyrgyz parliament adopted a law on labeling control (latent) marks »№ 187", which establishes the obligation of domestic producers and importers to produce control (latent) marks on the labeling of products.

On the multiple and reasonable treatment of private and commercial organizations, the Government initiated a project in 2009 of the Law of the KR, to repeal the law on labeling control (latent) marks, and all related regulations. 

However, during the reconciliation procedure in the government, the Presidential Administration deemed it desirable not to repeal the Act, and requested the Government to proceed with its implementation.