Battling Grey Goods? Advantages of ITC Now Writ in Black and White

Customers in the United States often pay more for valued branded goods than buyers of the same goods in less well-developed economies. Higher prices here in the U.S. in turn support profits and shareholder value for manufacturers of branded goods, and strengthen domestic industry.

Yet this pricing disparity for the same products in different markets creates an incentive for the so-called grey market ' genuine and non-counterfeit trademarked products that are imported and sold here outside authorized distribution channels at below-market prices. Rather than purchasing products from a U.S. manufacturer and selling it at the manufacturer's suggested retail price (MSRP), dealers and resellers often can realize higher margins by purchasing at a discount in foreign markets goods that are not authorized for domestic sale, and then importing them to ' and selling them in ' the U.S. When the U.S. dollar appreciates against foreign currencies, the incentive for dealers and resellers in the U.S. to purchase grey market goods is even greater. In many instances, dealers or resellers who are not authorized dealers of a particular manufacturer feel that they have no choice but to rely on grey market goods because they cannot purchase directly from the U.S. manufacturer.