British American Tobacco (BAT) has strongly contested the seizure by the Polish State Tax Administration of more than 200,000 vape cartridges imported by its partner company, arguing that the move lacks a legal basis or constitutes an unlawful expropriation. The seizure, which took place even though the goods were scheduled to be legally marketed before the new tax rate came into effect, is estimated to cost more than PLN 10 million (approximately US$2.77 million), and BAT is considering prosecuting the case through both domestic and international legal avenues.
Core Watch:
- British American Tobacco (BAT) has challenged the seizure of vape cartridges by Polish customs.
- Over 200,000 vape cartridges were seized due to suspected legal abuse.
- The value of the seized goods is estimated to be approximately $410,000, and the estimated loss to the company as a result of the exchange rate change could exceed approximately $2.77 million.
- BAT is considering legal action against the state.
British American Tobacco questions Polish tax authority enforcement
Lawyers for British American Tobacco (BAT) have strongly contested the seizure of more than 200,000 vape cartridges by Poland’s National Tax Administration Service (KAS), Biznes Alert reported July 17. BAT argues that the action may constitute an abuse of the law and could be detrimental to Poland’s state treasury.
Last week, the Ministry of Finance claimed that the action was in line with procedures. However, information provided by BAT suggests that this may not be the case.
Legal sources have indicated that the seizure action may lack a legal basis, thus violating constitutional standards and potentially leading to financial liability for the state. According to Article 33 of the Law on State Tax Administration, adopted on November 16, 2016, the duties of the Director General of Customs include identifying, detecting, and combating clearly defined violations. However, the explanation provided by KAS does not adequately address these key points.
200,000 cigarettes seized or over $2.7 million in damages
The incident involved 200,000 vape cartridges imported into Poland by British American Tobacco partner Nicoventures Trading Limited, which were planned to be legally marketed before the new duty rate was implemented.
The value of the seized goods was estimated at PLN 1.5 million (approximately $410,000). Losses to the company as a result of the change in the exchange rate are estimated to potentially exceed PLN 10 million (about $2.77 million).
It all started in March 2025, when Customs conducted a surprise search, took samples, checked the composition and packaging, and seized the entire shipment.
On May 15, 2025, the police received a letter dated May 15, 2025, stating that a crime was suspected.
On June 23, the police reported that there were no grounds to file a motion for sanctions in the District Court.
Meanwhile, a new excise tax statute went into effect in July 2025. The goods were seized despite the fact that British American Tobacco had previously assessed them as suitable for release.
Legal expert Anna Partyka-Opiela warned that the state needs to have a legal basis and cannot act arbitrarily plans to potentially file a lawsuit through domestic laws and international treaties and agreements, alleging that KAS’s actions were an unlawful expropriation.
This incident may result in BAT becoming the first company to sue the state for unlawful commercial expropriation, with confused policies, selective deregulation, and business tensions behind it. This incident becomes a test of the rule of law and fair treatment of investments.
