A subsidiary of the kiwifruit marketer Zespri is pleading not guilty to charges of criminal smuggling in China.

Zespri's China-based subsidiary – Zespri Management Consulting Corporation - is charged with Customs offences relating mostly to the invoicing practices and the manner in which the pro-forma invoice price was reached by the importers, between 2008 and 2010.

Zespri subsidiary Zespri Management Consulting Corporation is pleading not guilty to charges in China.

The legal obligation to meet all customs requirements sits with the importer. In a press release Zespri claims it always acted at the direction of the importer and in good faith, believing its processes were in accordance with Chinese law and regulations.

There is no evidence that Zespri or New Zealand kiwifruit growers benefited from the customs under-declaration, says a Zespri spokesperson.

A Zespri employee who is not a New Zealand citizen also pleaded not guilty in court to the same charges. The Zespri spokesperson says Zespri continues to offer support to him and his family, and his government is offering consular assistance.

The current trial follows on from a China Customs investigation into the under-valuation of New Zealand kiwifruit imported into China.

The investigation began in 2011 and resulted in Zespri's former Shanghai-based independent importer, Liu Xiongjie, pleading guilty to charges of criminal smuggling in May 2012.

The court rejected his mitigating defence that he was not responsible for meeting customs obligations on the importation of New Zealand kiwifruit. Mr Liu is appealing the 13-year sentence he received. He has repaid 37million RMB, approximately $NZ7 million, which was the amount of the underpaid customs duties.

Zespri says it has cooperated with China Customs throughout its investigation, including providing key information and face-to-face meetings between senior executives and authorities.

This case is not expected to impact on Zespri's sales in China in the 2013 season. As it is still before the court, Zespri will not make any further comment until after the court has issued its judgment, expected sometime in the next two to three months.