Influx of counterfeits: a torch into UNBS’ Q-Mark

It is a policy and practice by the ministry of Trade and Industry that every manufacturer or producer must obtain a Q-mark (Quality Mark) as a quality control tool to prevent fake products on the market.

The rationale is to safeguard the health and value for money for consumers. The Uganda National Bureau of Standards (UNBS) is mandated to enforce and monitor this. However, in the past two decades, there has been a rise in counterfeit products on the market despite UNBS’s attempt to reduce these.

From a survey conducted by Gateway Research Centre, we found out that there are several domestic infant producers, especially herbal medicine dealers, cosmetics, food, and beverage processors whose legal names are different from the names known in their localities. The survey randomly sampled 50 local manufacturers from whom only about 24 per cent had their own Q-marks.

37 per cent did not have Q-marks but were paying loyalty or franchise fees to other local companies to allow them to use their names and Q-marks. 39 per cent of the surveyed manufacturers had not bothered to look for Q-marks but their goods are on the market. Further inquiries and probing revealed that infant industries operating in their local settings try for quite long beyond one year to apply for Q-marks from UNBS but are unable to succeed due to bureaucratic tendencies.

Even after application, it takes a lot of time to receive positive feedback from UNBS. Eventually, they resort to illegal production of substandard goods that are below UNBS’ quality assurance standards, majority of these operate behind scenes, only to see their goods on the market. It is noteworthy to highlight the rising levels of local producers who are not bothered by Q-Mark and UNBS certification due to fear of the bureaucratic tendencies.

The Q-mark acquisition bureaucratic tendencies have not only resulted in failure of many businesses to operate on large scale or increase their production for distribution in various parts of the country, but also hindered some businesses from starting. Such businesses operating from hidden premises end up not paying taxes on profits, a notion that denies government of its would-be revenue.

Wouldn’t this be a betrayal of Uganda Revenue Authority (URA) by UNBS? Oftentimes, UNBS confiscates substandard goods and does not take adequate measures to support the local producers to ensure improvement in quality to the ideal standards. This weakens the potential of entrepreneurial growth, undermines self-employment, and Uganda’s ability to alleviate the current rampant unemployment that cannot be solely curbed by the government.

Going forward, UNBS should consider lowering the Q-mark application fees to a maximum of 10 Uganda currency points (Shs 200,000) especially for Micro, Small, and Medium Enterprise (MSMEs).

UNBS should conduct a country-wide survey to find out local manufacturers that do not comply with the compulsory standards provided for within the UNBS Act.

These should not be closed, neither their goods confiscated, but instead, be guided on how to improve to the desired standards. This should be done to increase local infant industry startups, employment, and reduction of businesses that operate from hidden premises. Further, it will prevent local infant manufacturers from being exploited or charged exorbitant royalty fees by already established large businesses that have Q-marks.

Lastly, UNBS should minimize the bureaucratic tendencies that limit local manufacturers from applying for the Q-mark and moreover when applied for, there are delays in issuing it out to the applicant.

The authors are researchers and directors at Gateway Research Centre, Uganda