A company that tried to export electronics that could be used to make weapons, without telling authorities, has been fined nearly $19,000.
In March 2025, New Zealand-based APVM Electronics Private Limited was caught trying to export 9098 integrated circuits to Singapore and Hong Kong in two shipments of 9000 and 98, respectively.
While the circuits have legitimate uses in consumer electronics like computers and communications systems, they could also be incorporated into military technology.
“These components may appear harmless, but in the wrong hands they could support drones, weapons-guidance systems or missile technology," Customs Investigations Manager Dominic Adams said.
"The consequences could be devastating."
The company did not notify the Ministry of Foreign Affairs and Trade about the shipment, and Customs seized the components before they could leave the country.
Under the Customs and Excise Act, exporters must tell MFAT if they know or should reasonably know that goods may be used in the production or development of military goods.
The company pleaded guilty to two charges in the Manukau District Court yesterday and was fined $18,720, in what Customs called a "first-of-its-kind" case.
Adams said it set a precedent that businesses "cannot treat export controls as a box-ticking exercise".
“Exporters have a legal responsibility to understand what they are sending overseas, where it is going and how it may ultimately be used. Notifying the Ministry of Foreign Affairs and Trade allows authorities to assess the goods, the destination, the intended recipient, and its proposed use.
“Customs’ enforcement of these controls helps prevent weapons proliferation and reassures our international partners that New Zealand will act when exporters fail to meet their legal obligations.”
MFAT advises exporters to carry out due diligence by checking for attempts to conceal an end user or end use, use intermediaries, split shipments, or otherwise dodge export controls.
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