New Zealand Customs Service v Federation Clothing Limited [2016] NZDC 17794 (9 September 2016)

Last Updated: 31 January 2017

_{EDITORIAL NOTE: NO SUPPRESSION APPLIED.}

IN THE DISTRICT COURT AT AUCKLAND

CRI-2015-004-011283 [2016] NZDC 17794

NEW ZEALAND CUSTOMS SERVICE

Prosecutor

v

FEDERATION CLOTHING LIMITED PUBLIC GALLERY LIMITED ONLY FOUND YOU LIMITED Defendants

Hearing:	9 September 2016
Appearances:	J Blythe for the Prosecutor H Ford for the Liquidators
Judgment:	9 September 2016

_{NOTES OF JUDGE C J FIELD ON SENTENCING}

[1] The defendant companies face nine charges in relation to breaches of the Customs and Excise Act 1996. The companies are Public Gallery Limited, Federation Clothing Limited and Only Found You Limited.

[2] The companies are in the hands of the liquidator at the moment and a plea of not guilty was initially entered. The liquidators are not wishing to have pleas of guilty formally entered. This then is set down as a formal proof and the liquidators are represented by Mrs Ford, the informant by Ms Blythe.

[3] I have read the memorandum regarding the issues for trial. As I have indicated, the companies face multiple charges under the Customs and Excise Act

_{and the representatives of the company, Ms Joblin and Mr Clegg, have also been}

NEW ZEALAND CUSTOMS SERVICE v FEDERATION CLOTHING LIMITED [2016] NZDC 17794 [H Ford for the Liquidators]

charged personally, pleaded guilty and have been fined for their role in the offending. The prosecutor relies on the formal written statements of witnesses, pursuant to s 18

Evidence Act 2006 and I accept the written statements accordingly.

[4] The evidence relied upon is attached at tab 4 of the submissions, relating to erroneous entries in relation to clothing imported from China by the defendant companies and another company by the name of Minti Design Limited between December 2010 and February 2014. Ms Joblin and Mr Clegg, to whom I have already referred, were directors of all four companies.

[5] An analysis of the individual charges and the maximum penalties attaching to each have been referred to under tab 4, together with the draft summary of facts. It is a lengthy document and I do not intend to read it in its entirety other than to note that, as a result of the investigation, Customs have identified 114 erroneous import entries submitted and two imports that had no entries lodged as the invoices were undervalued. The imports were undervalued by $2,830,394.59 and as a result the total revenue evasion by the companies is $680,120.48.

[6] I have read Mr Thompson’s formal statement which forms the basis of the evidence upon which the informant relies and I accept his statement and analysis as being correct and reliable.

[7] In all the circumstances then and having regard to the other statements lodged, I am satisfied that the charges have been made out by way of formal proof and the companies are convicted accordingly.

[8] Now this will need to be adjourned for sentencing on the basis that there are still outstanding issues concerning possible forfeiture applications and other matters to be tidied up. It seems to me that that could be done by any Judge, given that liability has been established and the only issue now outstanding is one of penalty. However, that remains to be seen.

C J Field

District Court Judge