Parallel Importing, Grey Market, and the Law - Business Wholesale Distributor Products Forum

SundryWhatNots · 09-09-2006, 08:52 AM

Greetings, all!

Does any one have some information or links on the laws in the United States concerning parallel importing (a.k.a. Grey Market)?

It appears that purchasing U.S. trademarked products (iPod, XBox, cosmetics, etc) from a wholesaler outside of the U.S., importing those products back to the US, and reselling the products ("parallel importing") in the U.S. could be a violation of the law.

I say "could be" because, as I understand it, one section of the law says that the manufacturer cannot impose resell restrictions on the initial purchaser of the product ("first use"), yet another part of the law does allow control if that product is imported.

As I understand it, this means that a good portion of the "NIB" consumer electronic products sold on eBay are illegal.

So...does anyone have experience in this area? I probably need a lawyer, but I thought I'd ask here first. Thanks!

BW · 09-09-2006, 10:08 AM

this whole process is grey market. i believe many people sell on ebay are under grey market too.

xeron · 09-09-2006, 12:54 PM

Wow..you people suprise me on what you know..sigh

Selling items from Grey Market can be illegal if you don't have licence from the Brand Company or the manufacture you brought from does not have the license.Usually the manufacture you brought from should have licenses from these Brand Companys, which give them legal rights to sell these OEM's to their customer's.
If you or the manufacture do not present the license to the shipping customs then they will be held up there, until one of you provide the document of licenceing.

And yes, 98% of electronics on eBay are from the grey market, generally speaking they are OEMs.

BW · 09-09-2006, 01:40 PM

if the supplier have the license documents to show to customs ,this is direct importing, this is not grey market, grey market is meaning you buy from low retail price one country and sell back to high retail price country market.and this is unauthorized importing. this process is call grey market. so most companies will not allow their distribution channel have grey market, this mean you are not legal to sell anything in the grey market. Xeron, what is surprised you? Am i wrong? many seller on ebay bought under grey market and sell on ebay

also what is oem mean to you

xeron · 09-09-2006, 03:42 PM

No, Grey Market products means that they had by passed third party distrubutors, resulting in you getting a lower price.All grey market products are OEM, which stands for Orignal Equiment Manufactured. When you have the license, you can order the same equipment that Brand Manafacures from them, and then this other Manufacture puts together the units.
Great Market is LEGAL.

SundryWhatNots · 09-09-2006, 04:16 PM

Thank you for the clarification. So it's a Low-Retail to High-Retail situation, but as long as the supplier is licensed to sell the product - for example, OEM - then you're good to go.

BW · 09-09-2006, 05:16 PM

ok, let me clear this out, grey market is legal but not to the company point of view. they are losing profit in grey market, from the company point of view are not legal. howerver, some company still allow selling under grey market, why? cux their market strategy is low cost products to boom their productivity.

xeron · 09-09-2006, 05:36 PM

"The term grey import, in reference to the grey economy refers to an item that has been imported into a country, legally, but without the agreement of the manufacturer."

Just found this little text, and it seems that BW is slightly correct. But again it stats, that you don't have to get permission from the Brand Manufacure to import Grey Market Products.

xeron · 09-09-2006, 05:42 PM

SundryWhatNots, I'll sum it all up for you now.

You can import the grey market products, and sell them here, and you don't have to worry about anything. Everything in this situation is legal, and doesn't violate anything.
Before I got a bit messed, saying that the good may be held at customs if there is no License. I had gotten confused when posting, but now remembering, that that manfucture needs the licence is they are selling ODM products. Which is Orignal Design Manufactures, this is one they must get a license.

Have a good day.

Regards,
Martin

BW · 09-09-2006, 05:58 PM

i dont agree "safe" to buying from grey market, there are things to worry, first, depends on what brand name you are buying , second, large or small quantity you buying from, if you have huge quantity under unauthorized brand name company. you better watch your back, once they found out, you are in seriously trouble. usually company will file a law suit againest you. then i don't know what happen next.