By SEBASTIAN MRINDOKO, 4th July 2010 @ 22:00 Daily News INVESTIGATIONS have revealed that some investors from Asia are now producing fake goods locally. A recent research carried out by some economists from the University of Dar es Salaam (UDSM) on counterfeits and substandard goods in some urban centres, has established that such investors register their businesses as factories, but end up assembling products for the local market. The economists say in assembling fake products locally the investors dodge regulatory authorities like the Tanzania Bureau of Standard (TBS), Tanzania Revenue Authority (TRA) and the Tanzania Foods and Drugs Authority (TFDA) at entry points. The leader of the research team, Dr Haji Semboja, said that the report has been submitted to the government for further action. "The research established that most of the godowns used by these greedy business people are in fact places for assembling these fake and substandard goods which enter into the circulation for consumer use," he said. He warned that the influx of counterfeit goods in the market has negative effects on the national economy. "This malpractice is economic sabotage. It is a serious crime and should be punished severely," he said. He said it is rare to find contraband activities in countries like Kenya and Uganda, because they have a strict system that can control any registered business. He challenged the government to play its role in curbing such a trend especially through regulatory bodies. He added that the public should be involved in offering information that could lead to the arrest of culprits. He added that if such practice is not stopped, the government efforts to boost the private sector would be meaningless. He further said that the government should build capacity for regulatory authorities tasked to check goods at entry points by training the officials to be able to detect fake goods. He said some people use popular brands like Sony, Phillips and Samsung to reap maximum profit. The Director of Policy and Advocacy with the Confederation of Tanzania Industries (CTI), Mr Hussein Kamote, said continued circulation of counterfeit and substandard goods has adversely affected local manufactures. "The imitated and fake products are sold cheaply which make local manufacturers fail to compete," he said. He said that the country is losing between 15 and 25 per cent of revenue due to counterfeit products. He also said that a lot of foreign currency was being used to import fake products, describing the practice as wastage. He said some imported fake goods included construction equipment, spare parts of motor vehicles, television and radio sets. The chairperson of the Private Sector Foundation (TPSF), Ms Esther Mkwizu, said continued influx of fake or substandard goods has negative impact on the promotion of the private sector. "Local business people intending to dedicate their capital into production are discouraged for fear of cheap products in the market," she said. She said the practice also contributes to unemployment because no new businesses are established.