The Fiji Islands Revenue and Customs Authority has today come out with a strong statement following the revelation by the Natural Waters of Viti Limited that FIRCA has been blocking their shipping agents from being able to export their bottled water out of Fiji on multiple times since December 2007.

FIRCA Chief Executive, Jitoko Tikolevu first sets the record straight that Natural Waters is not a Fijian company as it claims. He said the company is wholly owned by American interest.

Tikolevu said contrary to Natural Waters of Viti Limited's claim that Fiji is losing 3 to 4 million dollars a week in exports after the consignment of bottled water have been blocked by FIRCA, is also false.

FIRCA said there is no gain to foreign reserves of Fiji occasioned by the exports carried out by the company. According to Tikolevu, this is because the company sells its product to its American parent company, at or below cost landed in the US at about US$4 per carton. He said the products are then sold in America at greatly enhanced prices of up to US$50 per carton.

FIRCA said the public of Fiji should be aware that the mere fact that a company exports substantial quantities of water from Fiji does not itself benefit Fiji, if there is no contribution to the balance of payments or enhancement of foreign reserves, and a gain if the entity has tax free status.

Tikolevu also stresses that the advice on which FIRCA is acting is directed to the preservation of Fiji's reserves and is wholly in accordance with the mandatory provisions of law enacted in the public interest. He said they are relying on documentation of Natural Waters of Viti Limited, or the Fiji Water Group, provided to them as irrefutable, and rejects the company's claims that FIRCA is acting on incorrect information.

Meanwhile, this afternoon the US State Department has also made a statement on the issue.

The State Department said the US government stresses that American companies receive fair and impartial treatment by the interim government, including the customs and tax authorities.

It said "rule of law" and "a level playing field" are critically important factors in decisions by foreign investors, including American investors, on where they will direct their funds.

The US State Department said actions taken by FIRCA could threaten the long term relationship between Fiji and key foreign investors. It said Fiji Water Limited has successfully built the "Fiji" label's reputation around the world and has contributed to Fiji's exports at a time when other sections have been in decline.

The US said Fiji Water Limited's parent company has been in negotiation for additional significant investments in Fiji, potential investments that now appear threatened. The State Department urges a prompt conclusion to the current dispute.