(Reuters) -German tax authorities are pursuing ASOS for unpaid customs duties in a legal dispute that is adding to the struggles of the British fast-fashion retailer, the Financial Times reported on
UK's ASOS in talks with German authorities over customs duty claims
Overview of ASOS's Customs Duty Dispute
(Reuters) -British fast-fashion retailer ASOS said on Friday it is in talks with the German customs authority relating to a legal dispute over import duty underpayments.
Details of the Legal Dispute
The Financial Times reported earlier in the day that German tax authorities are pursuing ASOS for unpaid customs duties in a legal dispute over customs declarations on the retailer's shipments crossing the German border over several years.
ASOS's Financial Implications
ASOS said it was contesting the assessments by the German customs authority and that it considered the maximum exposure to be immaterial.
Company's Strategy Amid Competition
The company said it has reviewed more than 95% of the tens of thousands of customs declarations under scrutiny.
Based on its analysis, ASOS estimates the additional liability at about 0.5 million euros ($585,900).
The company had warned last month that its annual revenue would fall short of market expectations due to weak consumer demand, with profit expected to land at the lower end of its forecast range.
It has been working to revive its fast-fashion appeal among its core base of shoppers in their 20s, while cutting costs amid intensifying competition from Chinese rivals and the impact of U.S. trade tariffs.
($1 = 0.8534 euros)
(Reporting by Disha Mishra, DhanushVignesh Babu, Nithyashree R B and Gnaneshwar Rajan in Bengaluru; Editing by Janane Venkatraman and Nivedita Bhattacharjee)
