A freight handler in a New Zealand town who was fined for failing to declare a parcel of contraband has been ordered to pay $5,000 in compensation to a business.

More than a dozen people have complained about the incident in the Waikato.

The company, which owns a trucking company, was fined after it refused to take a parcel from a freight company to an airport in Christchurch.

In the complaint, the Waiki Bay resident says the company was negligent and failed to report the parcel to customs officials.

He says the freight company’s business plan was to ship a parcel containing the drugs from a New York-listed freight company.

When the parcel was intercepted at the border, the company failed to declare it as contraband, the complaint says.

Waikato County District Court Judge John Brown ordered the company to pay the $5k to the company that owns the trucking business, the New Zealand Herald reported.

It will also pay the costs of the court proceedings and the lawyer who took on the case, who is not involved in the case.

Last month, New Zealand’s Customs said it was investigating whether Customs officers had been aware of the company’s “misleading” declaration.

New Zealand Customs Minister Nick Smith told the media that the investigation was ongoing.

Mr Smith said he was not aware of any case where customs officers had flagged the shipment as being of concern.