Nike’s €1.5 Billion Import Dispute: The Costly Risks of Underestimating Customs Regulations

Even industry giants like Nike are vulnerable to customs planning errors, as seen in the recent scrutiny of their EMEA Logistics Center for potential customs violations.

Even the biggest names in the industry aren’t immune to customs planning errors. Recent developments indicate that Nike faces scrutiny for potential customs violations at its EMEA Logistics Center in Laakdal. This distribution hub serves as a gateway for Nike’s footwear and apparel to reach markets across Europe, the Middle East, and Africa. However, customs authorities have flagged Nike’s import practices for allegedly falling short of compliance.

Since 2018, Nike has been reported to have underpaid import duties on goods entering the European Union. The root of the issue lies in how Nike structures its transactions: before reaching the EU, products pass through various internal Nike entities, each time increasing the value of the goods. Customs authorities argue that Nike calculated its import duties based on the ‘first sale’ value—the lower price point in the chain—rather than the ‘last sale’ value, which reflects the final transaction before entering the EU. Additionally, the Special Tax Inspectorate suspects that VAT payments have also been understated.

It’s worth noting that relying on the earlier sale for customs valuation was once a common and accepted practice. Many companies, including major brands, used this tried-and-tested approach as part of their customs planning strategy. However, the EU revised its stance on this method in May 2016, shifting towards the ‘last sale’ principle for determining the customs value. Despite this change, some businesses continue to use outdated valuation methods, resulting in significant compliance risks, as seen in Nike’s dispute.

Nike disputes these claims and has taken the matter to court. However, the stakes are high. The potential customs duties, VAT, and penalties being sought amount to a staggering €1.5 billion. This case serves as a stark reminder of how even well-established brands can find themselves in customs hot water when they don’t fully control their risks.

As customs consultants, we know that proper valuation and compliance aren’t just about paying duties; they’re about managing risk and safeguarding a brand’s reputation. The trial is set to begin on February 26, 2026, leaving Nike ample time to prepare its defence—and providing a lesson for other companies on the importance of getting customs compliance right the first time.

Adam Wood, Head of Commercial at Barbourne Brook, comments:

“We believe that a periodic, independent review of your customs function is key to managing risk and demonstrating good corporate governance. If Nike has allowed this big exposure to escalate, how sure are you that your team has this nailed down?”