Transnational freight forwarder Kerry Logistics is fighting off a $2.2 million claim from importer Vienna Group after extra excise duty was imposed following incorrect paperwork understating alcoholic strength for Vienna’s imported German beer.
The expansive name of importer Vienna Group Ltd somewhat overstates reality; the company was a husband and wife operation controlled by Scott Browne, operating out of their Auckland home. In 2015, it went into liquidation insolvent after Customs imposed an extra $2.2 million duty. How beer imported between 2011 and 2015 was declared understrength is in dispute. Kerry Logistics, which cleared the consignments through Customs, says it completed customs entry forms on the basis of oral information provided by Mr Browne. Commercial invoices lacked full information. Mr Browne disputes he provided the wrong information.
With Vienna Group in liquidation, liquidators sued Kerry Logistics (Oceania) Ltd to recover the understated duty claimed by Customs. Kerry denies liability.
In the High Court, Kerry argued Vienna Group was out of time, beyond the six year Limitation Act rule for bringing its claim. Associate judge Sussock ruled it is reasonably arguable that the six years did not start running until Vienna’s liability arose when the extra duty was imposed. Detailed legal argument requires a full trial.
Kerry Logistics also argues that, even if liable, terms of trade with Vienna Group limits its liability to $100.
Separate from the High Court case, Kerry Logistics was fined $67,700 by Customs who said it was not reasonable for the freight forwarder to rely, as claimed, solely on Mr Browne’s verbal confirmation as to the beer’s alcohol strength.
Vienna Group Ltd v. Kerry Logistics (Oceania) Ltd – High Court (23.06.22)
22.110