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Trade fairs regulations: Where are we?
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Trade fairs regulations: Where are we?
In the 1990s, trade fairs, which are usually exceptional events, had become a permanent feature in Mauritius. Trade fairs were being held simultaneously all over the island and throughout the year. The majority of these fairs were merely lucrative commercial operations with mass sales of goods and not for the promotion or marketing of products as should be the case for professional trade fairs.
The Chamber had always strongly protested against this state of things, which was causing serious disturbances to the trading activities of the local business community.
Firstly, there was a substantial increase in the number of trade fairs being organised at the same time throughout the island, sometimes in the same areas and on the same themes, resulting in unfair competition to established retailers and traders. Participants in these trade fairs were not subject to the same legislation regulating local traders such as payment of taxes, licensing, after-sales service, supply of spares and so on.
Secondly, there was a substantial increase in the number of duty-free trade fairs organised or sponsored by foreign governments.
Thirdly, an increasing number of foreigners were selling goods in trade fairs and the imported goods were not re-exported after the fair, but moved from one trade fair to another.
Fourthly, trade fairs were often organised in a very unstructured way and often held in locations that were not suitable.
Since 1999, there have been numerous representations by the Chamber on the urgent need to review the legislation in order to set clear parameters for the organisation of trade fairs so that normal trading activities would not be penalised. In 2000, following several protests from the Chamber on the unfairness of the duty remission to trade fair participants, the policy regarding the ho-lding of duty-free fairs was reviewed.
New guidelines and procedures were issued by the Ministry of Finance restricting the number of duty-free trade fairs organised or sponsored by foreign governments. Since then there have been several attempts to try to set clear parameters to regulate the organisation of trade fairs.
On 3rd April 2003, the Ministry issued new regulations governing the organisation of trade fairs and exhibitions. Although the new legislation improved the legal and administrative framework for the holding of trade fairs and exhibitions, it however contained a number of provisions that were very restrictive. Concerns were raised regarding the serious constraints of the new law, which would result in a complete cessation of all trade fair and exhibition activities in Mauritius.
As a consequence, the legislation was repealed on 22 April 2003 and the previous legislation was re-introduced pending the setting up of new regulations. The Ministry subsequently issued a press communiqué stating that only trade fairs held by local organisers with local participants would be authorised, which is being applied up to now.
Parameters for the organisation</B>
The Chamber’s stand on this issue has always been very clear. The Chamber has strongly advocated the need to have an appropriate legal and administrative framework, which would ensure that trade fairs and exhibitions are held in a regulated, transparent and orderly way. There are a number of essential parameters, which need to be considered, when elaborating an appropriate legislation for the holding of trade fairs and exhibitions in Mauritius:
There should be level playing field between the local traders and participants in trade fairs in terms of licensing, payment of taxes, after-sales service, supply of spares, etc.
There should be a clear distinction between trade exhibitions destined to professionals and potential importers and commercial trade fairs organised for sales to the public.
There should be clear and transparent rules so that trade fairs are held in a professional manner that would improve the quality of the trade fairs and exhibitions whilst at the same time limiting the number of fairs. This will ensure that trade fairs are held in an orderly way and that established traders are not penalised.
Participation of foreigners in trade fairs should be regulated – more specifically with regard to sale of goods on the local market which results in unfair competition to the local traders.
There are actually no clear regulations on the organisation of trade fairs and this is resulting in a disorderly situation, especially for this end of year period. In an attempt to make progress on this issue, the Chamber has had several meetings with the Ministry and also with the different stakeholders to try to resolve the trade fairs issue.
For the Chamber, our main objective is to try to strike the right balance in the trade fair regulations so as to ensure that the interests of the local traders are safeguarded while the appropriate environment is created for trade fairs, which are important promotional events and marketing tools, to be organised in a professional manner.
<B>Rooma NARRAINEN
Manager –Trade Division </B>
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