Zespri has denied it colluded with the importers at the centre of a duty avoidance scandal in Taiwan, despite admitting its controversial dual-invoicing system was used in the Asian nation, according media reports.
Late last month, New Zealand’s single-desk kiwifruit marketer revealed it had terminated its business relationship with three importers in Taiwan after discovering they had created fraudulent invoices to reduce their duty payments.
The dual invoicing or “pro forma” system saw Zespri issue two invoices, one for the actual value of the fruit and another to lower the value for customs purposes. Zespri claim this was a legitimate practice when the final value of the fruit was not known.
The process hinged on the importer supplying both pro forma invoices, along with the final sales invoice, on which the duty would be paid. Zespri claim its former importers changed the details on the sales invoice before handing it to Taiwanese officials.
However, sources close to the importers told stuff.co.nz that Zespri supported the falsifying process. Zespri moved to deny such claims.
“Lain Jager specifically asked the importers if any Zespri employees knew of or had assisted with the importers' duty declarations,” a Zespri spokesperson told stuff.co.nz. “The importers said no Zespri employee was involved.”
The dual invoicing system was also being used in China when a similar duty avoidance scandal arose, which led to Zespri paying a multimillion-dollar fine last year.
