NZ escapes parallel importing sin bin

By BRIAN FALLOW

WELLINGTON - The United States has removed New Zealand from a trade sin bin where it was sent following the decision two years ago to relax curbs on parallel importing.

Parallel importing allows anyone to import branded products, bypassing local franchise holders, distributors or agents.

The New Zealand Government justified permitting parallel imports as a pro-competitive move, but the US complained that it would make it more difficult to detect and combat piracy.

US Trade Representative Charlene Barshefsky initiated a review of New Zealand's intellectual property regime and placed this country on a "watch list" last April.

Last August, the Government introduced legislation to strengthen the protection of intellectual property.

This included making trademark violations a criminal offence, increasing the maximum jail term for copyright and trademark violations from three months to five years, allowing forfeiture of goods and extending Customs' power to detain goods.

The legislation remains before Parliament.

In addition, the new Government has pledged to ban parallel imports of CDs, videos, films and software for up to two years after first release. The US would like the ban made permanent.

US Ambassador Carol Moseley Braun said yesterday that the US appreciated New Zealand's commitment to strengthen its copyright and trademark laws.

"The extent to which New Zealand follows through on this issue will figure largely in the Special 310 review next year," Ms Moseley Braun said.

Under Section 301 of the US Trade Act the Administration must hold an annual review of the intellectual property protections provided by its trading partners.