Mr Xiao Long Fang was fined $9,000 pa’anga to be paid within 48-hours from 23 June or face six-months imprisonment, for importing a large number of counterfeit exercise books manufactured in China, which he falsely represented to have been from New Zealand’s Croxley Stationery Ltd.

The accused had pleaded guilty.

Hon Mr Justice Cato said the counterfeit exercise books of various sizes were plainly imported by the accused to be able to compete more profitably when they were sold in Tonga.

The amount required to produce such a large number of books would have been around NZ$40,000 as confirmed by Croxley. However, the price that it cost to manufacture the goods in China was significantly cheaper that would have allowed the company to sell it to retailers at a much lower price than it would have been able to do had they been from the legitimate source, he said.

Mr Justice Cato said potentially Croxley and other suppliers could have been seriously affected had the accused succeeded to sell the exercise books in Tonga but Customs seized the product on delivery in Tongatapu and he was not able to sell it.

The prosecution said this was an evasion of the laws of Tonga and for manufacturing was misleading customers and had the potential to deprive the government and manufacturer and private retailers of revenue.

The Crown submitted that the maximum penalty for this offending is a fine not exceeding $100,000 pa’anga or a term of imprisonment not exceeding 10-years or both.

The accused who is married had no previous convictions. He is the director and one of the shareholders of the corporate business involved, and importer in this case.

"The fine imposed is intended to reflect the seriousness of the offending and deter others from participating in such an activity which does undermine the integrity of merchandising in Tonga and affecting business."

The judge set as a starting point a fine of $13,000 pa'anga. "It would have been higher if the objects had been sold," he said. However, he reduced this to $9,000 due to the accused's guilty plea and the fact that he was a first time offender.