While the government trumpets that it is easing the lives of citizens through the reduction of VAT for basket products, the reality in the Albanian market is being dictated by a completely different scheme. Behind the scenes, a serial monopolization is being installed that annihilates any tax cuts.
At the center of this dangerous game that is killing free competition is Dritan Bellaj, the owner of the company “Eurolab International Group shpk”. Through successive decisions of the customs administration, Bellaj is turning into one of the most powerful and untouchable monopolists in the country.
The most recent case is two orders of the General Directorate of Customs, which put more than 20 imported products of daily consumption in monopoly regime, with sole trader Mr. Bellai.
After “Lemon Soda”, they reach for “Peroni” and “Disaronno”
After securing the blocking of “parallel imports” for Lemon Soda last year, which led to an immediate and drastic increase in the market price, Dritan Bellajt’s company has already obtained the exclusive right to totally control the import of some of the biggest brands of foreign drinks, which include Birra Peroni and the Amaro alcoholic drink brand, with the justification of the importer holding the exclusive license from the producer.
Customs has ordered the blocking of all other importers of popular brands Disaronno, Artic and Tia Maria. In parallel, “Eurolab” has acquired the exclusive right to block at the border for 11 brands related to Peroni beer (including Peroni Nastro Azzurro, Peroni Beer, Nastro Azzurro and the official bottle design).
This administrative block means that no other economic operator in Albania can bring these products into the country. The absolute power to set their prices has officially passed to only one man: Dritan Bellaj.
How are consumers and supermarket chains being harmed?
Until today, large supermarket chains such as Conad or SPAR or parallel traders managed to protect the Albanian consumer by importing these products at cheaper prices directly from their branches in Italy or the Netherlands. This is called “parallel import” and is the main mechanism that protects the free market from abuse.
With the new orders of the Customs, this mechanism is collapsing. Supermarkets and bars are obliged to buy these drinks only from “Eurolab”, at the prices set by the company itself.
This situation reveals the predictable failure of the Fiscal Package. What is the value of the government reducing VAT by 5% or 10% to lower prices, when at the same time Customs is monopolizing the trade for almost every product, giving importers the power to increase the price of goods on the shelf by 30% or 40%?
Distorting EU laws in an isolated market
The law on industrial property, allegedly changed to align Albania with the European Union, is being used in a distorted way. In the EU, the creation of such monopolies is impossible due to the principle of the “Common Market”.
If you have the franchise of a brand in Germany, you cannot legally stop another dealer from buying it in Spain and selling it on the German market.
But in Albania, this law is serving to install pure private monopolies. Moreover, Customs has taken on the role of the Court. Agreements and conflicts over exclusive licenses are matters for civil courts between private parties.
Interference with administrative paperwork by the customs administration shows that the state is going against the public interest—which requires a free market and competition—to protect the private interests of a handful of people.
If this scheme, which is being led by Dritan Bellaj’s business, will also be extended to other basic products of the food basket, the Albanian market will turn into a monopoly where prices will not be set by supply, demand or state taxes, but only by the will of exclusive importers./ cAPITAL
