COMMERCE AND EMPLOYMENT has denied misleading HM Treasury about steps to restrain growth in export sales that take advantage of Low Value Consignment Relief and avoid VAT.

A spokesman said the department had developed guidelines for companies that set out a range of principles.

‘The code of conduct provides a level of self-regulation as well as a benchmark of standards that signatory companies are expected to maintain,’ he said. ‘The first principle of the code relates to maintaining Guernsey’s international reputation and integrity and companies complying with the code will not engage in activities that will do damage to the international reputation and integrity of the island.

‘The department will be extremely disappointed if any of the signatories to the code of conduct are in breach of this fundamental principle and is looking into these allegations.’

The department’s stance and work on the code was recognised by Treasury minister Stephen Timms during an adjournment debate in the House of Commons.