Trader admits selling counterfeit clothes - but blames Chinese suppliers
A MAN pleaded guilty to selling fake luxury fashion out ofBournemouth Airport.
Christopher Vailes, 27, from HurnWay in Christchurch, claimed he was duped by Chinese suppliers but admitted six offences at Bournemouth Magistrates Court.
He was the director of Kick Stores Limited, based at Cirrus Court, and sold goods online after importing them from China.
Francisca da Costa, prosecuting for Dorset County Council Trading Standards, said officers bought a New Era cap for £18.99 and a pair of Nike trainers for £65.94 and both turned out to be fake.
Officers executed a search warrant last May and seized 147 items.
All the specimens sent off for testing also turned out to be counterfeit.
Vailes admitted five charges of selling counterfeit goods, which also included Louis Vuitton boots, a Ralph Lauren T-Shirt, and more Nike Trainers.
He also admitted one charge of a making a false claim on the company website by saying it had established industry relationships over 20 years.
Kick Stores was only incorporated in 2010.
Miss DeCosta said the firm mainly used PayPoint for sales and records showed customers spent more than £66,000.
The defendant told the court: “Everything I brought into the country and sold on, I sold in good faith, and I personally feel I was duped by the suppliers.
“The products I dealt with aren’t high street products, they are one-off limited edition lines, so it’s increasingly difficult to determine what is correct and what isn’t.”
Sentencing was adjourned for reports until November 22.
District Judge Roger House told Vailes that the sentence was likely to be a community punishment.
After the case, principal trading standards officer Richard Herringshaw told the Echo: “Traditionally, counterfeit goods were sold in markets but we are seeing that drop-off.
Christopher Vailes, 27, from HurnWay in Christchurch, claimed he was duped by Chinese suppliers but admitted six offences at Bournemouth Magistrates Court.
He was the director of Kick Stores Limited, based at Cirrus Court, and sold goods online after importing them from China.
Francisca da Costa, prosecuting for Dorset County Council Trading Standards, said officers bought a New Era cap for £18.99 and a pair of Nike trainers for £65.94 and both turned out to be fake.
Officers executed a search warrant last May and seized 147 items.
All the specimens sent off for testing also turned out to be counterfeit.
Vailes admitted five charges of selling counterfeit goods, which also included Louis Vuitton boots, a Ralph Lauren T-Shirt, and more Nike Trainers.
He also admitted one charge of a making a false claim on the company website by saying it had established industry relationships over 20 years.
Kick Stores was only incorporated in 2010.
Miss DeCosta said the firm mainly used PayPoint for sales and records showed customers spent more than £66,000.
The defendant told the court: “Everything I brought into the country and sold on, I sold in good faith, and I personally feel I was duped by the suppliers.
“The products I dealt with aren’t high street products, they are one-off limited edition lines, so it’s increasingly difficult to determine what is correct and what isn’t.”
Sentencing was adjourned for reports until November 22.
District Judge Roger House told Vailes that the sentence was likely to be a community punishment.
After the case, principal trading standards officer Richard Herringshaw told the Echo: “Traditionally, counterfeit goods were sold in markets but we are seeing that drop-off.
Firm fights US giant to stop destruction of clothes
A SMALL Irish store is taking retail giant Abercrombie & Fitch back to the courts after a judge ordered that more than 800 items of clothing seized in the store should be destroyed.
Conor Twomey (49) of McGazz -- a small clothing shop in Limerick city -- confirmed to the Irish Independent that it is appealing the outcome of a legal case that was brought against it by Abercrombie & Fitch earlier this month.
The US company, which is due to open its first Irish flagship store in Dublin tomorrow, brought the store before Limerick District Court for selling its clothes without permission.
However, the shop will fight its corner and is appealing the verdict.
McGazz opened up in Limerick in July 2011 and Conor Twomey bought clothing at Abercrombie & Fitch outlet stores in New Jersey and Pennsylvania in America.
He posted the goods to Limerick and paid excise duty and tax, before selling them at a cheaper price than the US clothing company charges here.
On June 13 last, more than 800 items of clothing, estimated to be worth up to €32,000, were seized at the McGazz shop at Cornmarket Row, Limerick, after Abercrombie & Fitch was granted a court order.
Under the 1996 Tradesmarks Act, it is illegal to sell trademarked goods from the US in Ireland unless they are licensed to be sold here and the manufacturer has given consent.
Abercrombie & Fitch only allows the sale of its clothes through stores that it owns and operates.
Judge Aeneas McCarthy ruled that the law was on the side of the US clothing giant.
But Conor Twomey, who runs the store with his brother John, said they have now instructed their solicitors to appeal the case to the Circuit Court.
"I feel very strongly about this," Mr Twomey said. "McGazz is a legitimate enterprise importing and selling legitimate product, paying all Irish taxes and duties, providing local investment and employment.
"Abercrombie & Fitch has been making substantial profits from Irish customers for many years. It should now clarify exactly how much Irish corporation tax it has ever paid, and whether those profits are retained in Ireland or repatriated elsewhere," Mr Twomey said.
"It would be ironic if it has paid a minimal amount of corporation tax to the Irish state while fully availing itself of its laws and benefits. This would be an offence to common sense and decency," he added.
Conor Twomey (49) of McGazz -- a small clothing shop in Limerick city -- confirmed to the Irish Independent that it is appealing the outcome of a legal case that was brought against it by Abercrombie & Fitch earlier this month.
The US company, which is due to open its first Irish flagship store in Dublin tomorrow, brought the store before Limerick District Court for selling its clothes without permission.
However, the shop will fight its corner and is appealing the verdict.
McGazz opened up in Limerick in July 2011 and Conor Twomey bought clothing at Abercrombie & Fitch outlet stores in New Jersey and Pennsylvania in America.
He posted the goods to Limerick and paid excise duty and tax, before selling them at a cheaper price than the US clothing company charges here.
On June 13 last, more than 800 items of clothing, estimated to be worth up to €32,000, were seized at the McGazz shop at Cornmarket Row, Limerick, after Abercrombie & Fitch was granted a court order.
Under the 1996 Tradesmarks Act, it is illegal to sell trademarked goods from the US in Ireland unless they are licensed to be sold here and the manufacturer has given consent.
Abercrombie & Fitch only allows the sale of its clothes through stores that it owns and operates.
Judge Aeneas McCarthy ruled that the law was on the side of the US clothing giant.
But Conor Twomey, who runs the store with his brother John, said they have now instructed their solicitors to appeal the case to the Circuit Court.
"I feel very strongly about this," Mr Twomey said. "McGazz is a legitimate enterprise importing and selling legitimate product, paying all Irish taxes and duties, providing local investment and employment.
"Abercrombie & Fitch has been making substantial profits from Irish customers for many years. It should now clarify exactly how much Irish corporation tax it has ever paid, and whether those profits are retained in Ireland or repatriated elsewhere," Mr Twomey said.
"It would be ironic if it has paid a minimal amount of corporation tax to the Irish state while fully availing itself of its laws and benefits. This would be an offence to common sense and decency," he added.
Malawi advised to ban luxury imports
Market analysts have asked government to impose a temporary ban on luxury imports to lessen foreign currency drainage.
Capital Alliance chief executive officer (CEO) James Chikavu Nyirenda said in an interview on Friday that this can help to contain the country’s appetite for imported goods.
Nyirenda’s call comes barely two weeks after another economic commentator Frederick Changaya made a similar suggestion.
“What we have to ask ourselves is, do we really need imported toothpicks, chickens, onions, tomatoes? Is it not a question of some Malawians getting machines abroad and start producing toothpicks locally?”
Nyirenda was commenting on the recent demand for foreign currency which has prompted the Reserve Bank of Malawi (RBM) to revise upwards Malawi’s monthly foreign exchange demand from $129 million (K41 billion) to $189 million (K60 billion).
Such a huge aggregate demand for foreign currency has puzzled RBM Governor Charles Chuka who said two weeks ago that the current mismatch between demand and supply of foreign cash is unsustainable considering Malawi’s low export base.
Malawi needs foreign currency to meet its import bills, service foreign debt and pay government expenditures overseas, among others.
If government buys Nyirenda and Changaya’s proposal, Malawi—a net importing country—will cut its surging import bill which has over the years been widening its trade deficit, an economic measure of a balance between imports and exports.
“Import substitution, export diversification, reduction in imports and perhaps even a short-term ban on agreed luxurious imports and food items is the way to go,” said Nyirenda.
While acknowledging principles of free market, Nyirenda cited China which, imposed a temporary ban on non-essential imports.
He said it was worrisome to compare this year’s tobacco earnings of about $177 million (K56 billion) against the monthly foreign exchange demand of $189 million (K60 billion).
According to latest figures, as at October 5 2012, there was a marginal decline from K176 million (K55 billion) in gross official reserves recorded on September 28 2012 to $169 million (K53 billion).
Such a mismatch between supply and demand for foreign exchange has fuelled the depreciation of the kwacha against major international currencies.
But Chancellor College economics professor Ben Kaluwa said the best way is to impose heavy taxes on importation of luxury goods rather than banning them completely.
“You can still devise clever policies which are price-based. Banning is not price-based but it is coercive. If you raise prices of such things, you discourage people from buying them,” said Kaluwa.
During the 2012/13budget consultation meeting, Economics Association of Malawi (Ecama) vice-president Edward Chilima also asked Finance Minister Dr Ken Lipenga to consider imposing punitive taxes on luxuries and second hand clothes which, he said, contribute to the depletion of foreign currency.
Lipenga could not be reached for comment as he was reportedly in Tokyo, Japan for the 2012 joint annual meetings by the International Monetary Fund (IMF) and the World Bank.
Capital Alliance chief executive officer (CEO) James Chikavu Nyirenda said in an interview on Friday that this can help to contain the country’s appetite for imported goods.
Nyirenda’s call comes barely two weeks after another economic commentator Frederick Changaya made a similar suggestion.
“What we have to ask ourselves is, do we really need imported toothpicks, chickens, onions, tomatoes? Is it not a question of some Malawians getting machines abroad and start producing toothpicks locally?”
Nyirenda was commenting on the recent demand for foreign currency which has prompted the Reserve Bank of Malawi (RBM) to revise upwards Malawi’s monthly foreign exchange demand from $129 million (K41 billion) to $189 million (K60 billion).
Such a huge aggregate demand for foreign currency has puzzled RBM Governor Charles Chuka who said two weeks ago that the current mismatch between demand and supply of foreign cash is unsustainable considering Malawi’s low export base.
Malawi needs foreign currency to meet its import bills, service foreign debt and pay government expenditures overseas, among others.
If government buys Nyirenda and Changaya’s proposal, Malawi—a net importing country—will cut its surging import bill which has over the years been widening its trade deficit, an economic measure of a balance between imports and exports.
“Import substitution, export diversification, reduction in imports and perhaps even a short-term ban on agreed luxurious imports and food items is the way to go,” said Nyirenda.
While acknowledging principles of free market, Nyirenda cited China which, imposed a temporary ban on non-essential imports.
He said it was worrisome to compare this year’s tobacco earnings of about $177 million (K56 billion) against the monthly foreign exchange demand of $189 million (K60 billion).
According to latest figures, as at October 5 2012, there was a marginal decline from K176 million (K55 billion) in gross official reserves recorded on September 28 2012 to $169 million (K53 billion).
Such a mismatch between supply and demand for foreign exchange has fuelled the depreciation of the kwacha against major international currencies.
But Chancellor College economics professor Ben Kaluwa said the best way is to impose heavy taxes on importation of luxury goods rather than banning them completely.
“You can still devise clever policies which are price-based. Banning is not price-based but it is coercive. If you raise prices of such things, you discourage people from buying them,” said Kaluwa.
During the 2012/13budget consultation meeting, Economics Association of Malawi (Ecama) vice-president Edward Chilima also asked Finance Minister Dr Ken Lipenga to consider imposing punitive taxes on luxuries and second hand clothes which, he said, contribute to the depletion of foreign currency.
Lipenga could not be reached for comment as he was reportedly in Tokyo, Japan for the 2012 joint annual meetings by the International Monetary Fund (IMF) and the World Bank.