BAT Challenges Polish Tax Authorities as 200,000 Pods Seized, Potential Loss Exceeds $2.7 Million

Key points:

·British American Tobacco (BAT) is questioning the actions of Polish customs in seizing e-cigarette pods. 

·Over 200,000 e-cigarette pods have been confiscated due to suspected abuse of the law. 

·BAT is considering legal action against the country.

【2Firsts News Flash】According to Biznes Alert on July 17th, lawyers for British American Tobacco (BAT) have strongly questioned the actions of the Polish National Tax Administration (KAS) in seizing over 200,000 e-cigarette pods. BAT believes that this action may constitute legal abuse and could potentially harm Poland's national finances.

Last week, the Ministry of Finance claimed that this action was in compliance with procedures. However, information provided by BAT suggests that the situation may not be as straightforward.

Legal professionals have stated that the detention actions may lack a legal basis, therefore violating constitutional standards, and potentially leading to the country bearing financial responsibility. According to Article 33 of the National Tax Administration Law passed on November 16, 2016, the responsibilities of the customs director include identifying, investigating, and cracking down on clearly defined illegal activities. However, the explanation provided by KAS does not fully clarify these key points.

The incident involves British American Tobacco partner Nicoventures Trading Limited importing 200,000 e-cigarette pods into Poland, with plans to legally launch the product on the market before the new tax rates take effect.

The value of the seized goods is estimated at 1.5 million zloty (around $410,000). The company is facing potential losses of over 10 million zloty (approximately $2.77 million) due to the change in exchange rates.

It all began in March 2025, when customs unexpectedly conducted a search, taking samples, inspecting the ingredients and packaging, and seizing the entire batch of goods.

On May 15, 2025, the police received a letter dated May 15, 2025, alleging criminal activity.

On June 23rd, the police reported that there was no reason to bring a motion for penalty to the court.

At the same time, the new consumption tax regulations will take effect in July 2025. Despite the fact that British American Tobacco had previously assessed these goods as being eligible for release, the goods were still seized.

Legal expert Anna Partyka-Opiela has warned that countries must have a legal basis for their actions and cannot act arbitrarily. The BAT project may file lawsuits against KAS by invoking domestic laws and international treaties and agreements, accusing KAS of engaging in illegal expropriation.

This incident may lead to BAT becoming the first company to sue the country for illegal commercial appropriation. Behind this are issues of policy confusion, selective regulation, and tense business relationships. This incident has become a test for the rule of law and fair treatment of investments in the country.