Cettire shares tank as it rejects reports of duties discrepancy
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The news: Shares in online luxury retailer Cettire tanked more than 20% after the Australian Financial Review reported that duties charged by the company on goods were not paid to the federal government. Cettire has now rejected the claims in the report.
The numbers: Cettire shares were trading 22.1% lower at $3.63 by 12:30pm AEDT.
The context: On Wednesday morning, the AFR published an article on Cettire claiming that, during a test order as part of an investigation into the retailer, "none of the duties paid as part of the order were handed over by Cettire to Australian customs officials." It also said that its courier DHL confirmed there were no duties charged for the shipment.
Melbourne-based Cettire released a response to the article after its shares tumbles on Wednesday, stating the company "believes that all applicable duties and other import charges are paid to the relevant authorities at the point of customers clearance".
What they said: Cettire said: "In this specific example, Duties & Taxes Unpaid simply means that that service was not provided by DHL on the relevant shipment. It does not mean that there is any outstanding duty payable by the customer or by Cettire in relation to the shipment.
"Any implication in the article to the contrary is incorrect. In Australia, Cettire has a direct debit arrangement in place with the Department of Home Affairs to facilitate direct payment of applicable duties prior to customs clearance."
The source: ASX announcement
