Fiji Islands Revenue and Customs Authority CEO Jitoko Tikolevu has admitted that the US$24 per carton export duty imposed on Natural Waters of Viti Limited products may be high, but defended their decision to impose this rate while giving evidence under oath in the High Court this morning.

While being grilled by Fiji Water lawyer David Goddard, Tikolevu stressed that the decision was reached based on the information provided by the Company and that further information required to reach a definite export price has still not been provided by Natural Waters of Fiji.

The lawyer also suggested that if Tikolevu agrees that the US$24 per carton may be wrong, then why is it not withdrawn, the FIRCA CEO maintained that the decision could be revisited if all the relevant information is provided, and that they would be ready to consult the company on their future decisions.

The FIRCA CEO explained that Fiji Water exports 13.9 million cartons annually to the US and the trend they noticed is that in 2005 the company exported US$46.5 million worth of products, US$55.7 million in 2006 and US$76.5 million last year showing an average growth rate of 36 percent a year.

Tikolevu said subtracting the sales to local retailers and re-exporters like Coca Cola Amatil and from the information provided on the Fiji Water Website, they reached an assumption that 11.2 million cartons is home delivery in the US, meaning sales to offices and other retailers in the American market and determined that a carton of Fiji Water is sold at around US$42 after mark up.

He said based on this and various calculations, they reached the US$24 per carton export duty. Tikolevu also highlighted that one interesting conclusion is that $3 million worth of sales of Fiji Water products are unaccounted for in their financial records provided.

The case continues this afternoon before High Court Judge Justice Jocelyn Scutt.