WT/TPR/S/71 Trade Policy Review
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III. TRADE POLICIES AND PRACTICES BY MEASURE
(1) INTRODUCTION
1. Poland's transformation to a market economy has been accompanied by significant trade and
investment liberalization.  It has generally resisted protectionist measures, with certain notable
exceptions, both in key agricultural and manufacturing industries.  Despite considerable progress,
Poland continues to selectively apply a range of tariffs and non-tariff measures, at both the border aswell as internally, including regulations and standards, government procurement preferences, and
provision of state aid.
1
2. Border measures overall have declined in Poland since the last Trade Policy Review in 1992.
MFN tariffs averaged 15.9% in 1999, and rates are mainly bound, albeit at ceiling levels on many
products.  The import surcharge applied for balance-of-payments reasons was terminated from 1997.Much higher tariffs, averaging 34.6%, apply to imports from non-WTO members; and much lower
tariffs, averaging 6% in 1999, to imports from partners of regional free-trade agreements, such as the
EU, EFTA and CEFTA, especially on manufactured products.  This has reduced considerably the
scope of Poland's MFN trade, which currently accounts for about one quarter of total merchandise
imports.  The large differential between preferential and MFN tariffs is likely to be diverting tradeaway from MFN sources.
3. Selective tariff increases on certain, mainly agricultural, products go against this liberalization
trend.  Moreover, while Poland tariffied its variable levies during the Uruguay Round, higher tariffs
were adopted on many products.  Poland's agricu ltural liberalization following the Uruguay Round
has also been frustrated by the widespread application of tariff quotas with substantial underutilization
of in-quota levels, as well as reliance on safeguard measures.  In addition, a number of key
agricultural commodities, such as sugar, potato starch, and pigmeat, are assisted by export subsidies,as well as by pricing and market arrangements and other measures providing significant domestic
support, including access to concessional credit.
4. Outside agriculture, import prohibitions and licensing apply to several industrial goods,
including motor vehicles and components, and Poland's anti-dumping actions provide targeted
protection against specific imports, such as steel, textiles, and yarns.  The imposition of excise andother duties, including customs fees, also discriminate against certain imports, such as clothing.
5. Progress has been made in harmonizing Polish standards and technical regulations with
international and particularly European norms.  However, Poland requires mandatory standards and
"B-safety" certification on many products, aimed at protecting consumers.  Poland increasingly
recognizes international conformity testing results, and has a number of mutual recognitionagreements with foreign testing bodies.  It has successfully attracted foreign direct investment, aided
by certain fiscal incentives, which in principle generally apply equally to foreign and domestic
investors.
                                                          
1 Tariffs and non-tariff border measures provide assistance by raising the prices of competing imports,
thereby sheltering domestic producers from foreign competition and enabling them to charge higher prices than
they could otherwise.  Some internal measures, such as standards, may also protect domestic producers by
raising the cost of imports.  While some other internal measures, including preferential government procurementpractices, also enable domestic suppliers to charge highe r prices, other measures provide protection by enabling
them to charge a lower price and therefore be more competitive against imports.  These measures include the
provision of state aid and other subsidies.Poland WT/TPR/S/71
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6. Poland has modernized its rules on protecting intellectual property, including on patents,
copyrights and trade-marks, mainly to meet EU and WTO requirements.  However, some deficiencies
remain, especially on enforcement, and these are being addressed in current legislation.  Poland's
incidence of piracy and counterfeit products, mainly due to imports, remains high.
7. A key feature of Poland's recent trade policy reforms has been the large scale-and successful
privatization of state-owned enterprises, such as major state banks, with high participation fromforeign investors.  The private sector now accounts  for some two-thirds of total value added and GDP,
and supplies two thirds of jobs.  Privatization has accelerated in recent years, and the Government's
goal is to privatize 70% of remaining state-owned enterprises by 2001.  However, many remaining
state-owned enterprises are in difficult areas, such as defence, hard-coal mining, steel, chemicals,
shipbuilding, electricity generation, sugar, liquor, a nd railway transport.  Privatization receipts for
1999 were estimated at Zl 15 billion.
8. To accompany privatization, competition policies have been strengthened with a view to
controlling anti-competitive and monopolistic behaviour.  As in most other areas, Poland has focused
on harmonizing its legislation with European requirements to meet its EU accession objectives.
(2) M
EASURES DIRECTLY AFFECTING IMPORTS
(i) Registration, documentation, and customs administration
9. Poland has no restrictions on the rights of individuals and entities, including foreign
companies, to import goods and services, subject to the terms and conditions specified in its customs
and trade-related legislation.  The main regulation governing importation is the Customs Code of
January 1997 – implemented from 1 January 1998.  Customs agents must be licensed and registered
with the Central Board of Customs.
10. The main documents required for import clearance are a single administrative document
(SAD); a commercial invoice and declaration of customs value; a certificate of origin, if subject to
preferential duty rates; a certificate for provision of security over payment of duty; a certificate for tax
identification number (NIP); and a REGON statistical identification number.  Import or transit permits
are also required, where relevant, as well as transp ortation documentation verifying that imports from
developing countries have been directly delivered to Poland.  Customs formalities are currently underreview, to simplify clearance procedures, including reducing the number of documents required, such
as abolishing the NIP and REGON certificates and the transportation document.  The new Customs
Services (Administration) Act of 1999 provides a legal foundation for customs services by specifying
the rights and obligations of customs officers.  Other recent changes include the reorganization of the
Central Board of Customs and the formation of th e General Customs Inspectorate and the Department
of Prevention and Customs Supervision.
11. These changes have been made primarily to harmonize Poland's customs regulations with
those of the EU.  However, despite major improvements, problems are claimed to exist over the lack
of uniform implementation of the customs legislation at central, regional, and border levels, as well as
serious deficits in implementation capacity along with persistent corruption.
2  This is consistent with
on-going concerns of exporters experiencing long delays; that rules are often applied inconsistently;
and that the paperwork required is excessive.  Efforts to computerize the customs service are
incomplete.  The system of integrated customs tariff  database (ISZTAR) is to be harmonized with the
EU's TARIC system, and is due to be implemented in 2000.  Moreover, a customs integrated
                                                          
2 EC (1999).WT/TPR/S/71 Trade Policy Review
Page 36
information system, including a system for processing  customs declarations, is not yet available.  A
recent feasibility study has suggested the adop tion of an existing system, such as ASYCUDA++.3
12. According to authorities, no data are available on clearance times of goods through customs.
Clearance times depend upon the type of products imported and vary substantially between ports.  A
simplified procedure, implemented in 1998, enables certified traders to declare imported goods for
clearance without inspection, provided the traders are registered in advance with customs.  Theseprocedures require a supplementary customs declaration within one month of importation.  Although
some 600 firms are currently registered with customs to use these simplified procedures, the share of
merchandise imports cleared through the system remains low.
13. A comprehensive system of risk analysis of importers and products for customs control is
being developed.  This includes the development of a database to support the application of riskanalysis to enable more selective and effective targeting of customs' resources.  Recent changes have
also included an expansion of the list of guarantees accepted by customs to secure customs debts to
cover general and lump-sum guarantees.
14. Appeals against customs decisions are provided for in the legislation.  Appeals must be made
to the Central Board of Customs within 14 days from the decision.  A review decision from Customscan be appealed to the Central Administrative Court within 30 days from the decision.  On receiving
evidence from Customs, the Court may reject the appeal, or confirm or annul the decision.  Either
party may request that the Court's decision be re-examined.  In 1998, over one quarter of decisions
taken by Customs were appealed.  Over thr ee fifths of these appeals were successful.
(ii) Tariffs
15. Poland's tariff is based on the Harmonized System (HS), and is disaggregated to the nine-digit
level.  The first eight digits of the Polish Cu stoms Nomenclature (PCN) correspond to the HS.  The
Polish schedule, of approximately 10,600 tariff lines, contains two general duty rates.  The
autonomous rate is applied to non-WTO members while the conventional rate corresponds to the
WTO bound rate.  The MFN applied rate for WTO Members is therefore the conventional rate, unless
it is above the autonomous rate, in which case the latter rate is also applied to WTO Members.  Thus,
the applied MFN tariff is the lower of the conventional (bound) or autonomous rates. The schedulealso specifies much lower rates levied on imports from 15 preferential sources, including developing
countries, under various regional trading arrangements (see section (g)).
16. Tariff policy is mainly the responsibility of the Ministry of Economy.  Main changes to tariff
rates are set annually during budgetary deliberations at the commencement of each calendar year.  A
draft tariff schedule, prepared by the Ministry of Economy in close consultation with other relevantministries, such as Finance and Agriculture, is s ubmitted to the Council of Ministers for approval.
The schedule reflects Poland's multilateral and bilateral trade commitments as well as domestic
factors, such as whether to provide selective tariff protection to domestic producers.  Tariffs may also
be changed at other times throughout the year with the approval of the Council of Ministers.  Tariff
changes – both increases and decreases – do not require legislative amendment by parliament.
(a) Average levels
17. Poland's simple average applied MFN tariff across all imports from WTO Members was
15.9% in 1999  (Table III.1).  The average rate was 18.4% at the time of the previous Trade Policy
                                                          
3 The Automatic System for Customs Data is a computerized customs management system, developed
by UNCTAD, which covers most foreign trade procedures, including the production of trade statistics.Poland WT/TPR/S/71
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Review.4  The simple average tariff rate applied to imports from non-WTO members in 1999 was
34.6%, more than double that for WTO Members.  Reductions in applied MFN tariffs have been
much less pronounced than for preferential tariffs subject to regional trading arrangements, such as
with the EU and CEFTA members.  As a result, Poland's preferential tariffs were much lower than its
MFN duties in 1999, averaging 6%, excluding developing country preferences (section (g)).
Table III.1
Tariff indicators, 1999
(Per cent)
INDICATOR All goods AgricultureaManufacturinga
Bound tariff linesb93.5 100.0 92.2
Duty-free tariff linesc2.5 0.2 3.2
Simple average bound MFN tariff rateb19.9 55.5 10.5
Simple average applied rateb
- MFN rate for WTO Members 15.9 34.2 11.1
- Rate to non-WTO members 34.6 39.4 33.4
Simple average applied MFN ratec15.9 32.8 10.9
Domestic applied MFN tariff "spikes" (% of tariff lines over three times the
overall tariff average, i.e. above 47.7%)b2.4 11.6 0
- Range of MFN applied rates 0-293 0-293 0-55
Applied MFN tariff standard deviation (dispersion)d23.8 11.3 24.6
Simple average applied preferential tariff (excluding developing country
preferences)d6.0 9.2 5.9
Ad valorem  duties (per cent of tariff lines)c91.2 65.7 98.9
a Sectoral tariff averages vary with the definition used.  The HS definition of agriculture (HS 01-24) includes fishing and fore stry,
and for manufacturing (HS 25-97) excludes food processing, beverages and tobacco products.  While conventional, these
definitions do not correspond precisely to those for "agricultural" and other products negotiated in the Uruguay Round.  TheWTO Agreement on Agriculture excludes fish and fish products (HS chapters 3 and parts of chapter 16) and includes items
regarded as "agricultural" from HS chapters 29, 33, 35, 38, 41, 43, 50, 51, 52 and 53 (Annex 1 of the Agreement).  Petroleum
products (HS 2709 and 2710) are also excluded from both agricultural and manufacturing sectors.  The breakdown of tariffs bythe International Standard Industrial Classification (ISIC) attempts to clarify the distinction between the agriculture/process ed
food, beverage and tobacco sectors by including such processing as manufactured products (as distinct from the primary
activities).
b Sectoral averages based on the WTO classification, which coincides with the definition of agriculture adopted in the Agreement
on Agriculture.
c Sectoral averages based on the HS definition.d Sectoral averages based on the ISIC definition.  On an ISIC basis, Poland’s average MFN tariff rate was 17% on agriculture (an d
fisheries) and 16.1% on manufacturing in 1999.
Source : WTO Secretariat based on data from the Polish Government.
18. The 1999 simple average applied MFN tariff rate for agricultural – including fishing –
products (HS Chapters 1 to 24) was 32.8%, compared  with 10.9% for industrial products (HS
Chapters 25 to 97).5  Tariffs on imports from WTO Members were, on average, much lower on
industrial products relative to non-WTO members (Charts III.1 and III.2).  Unlike for industrial
goods, agricultural imports from both WTO and non-WTO members have, on average, similar non-
preferential duties, except mainly for the HS categories of products of animal origin, nes; vegetable
plaiting materials and vegetable materials nes; beverages, spirits and vinegar; and tobacco andmanufactured tobacco substitutes.
                                                          
4 GATT (1993).
5 Sectoral tariff averages vary with the definition used  (see note (a) in Table III.1).  On an ISIC basis,
Poland's average MFN tariff was 17% on agriculture (and fishing) and 16.1% on manufacturing  in 1999.WT/TPR/S/71 Trade Policy Review
Page 38
19. The much higher tariffs in 1999 on agricultural compared with industrial products largely
reflect the tariffication of variable levies agreed by Poland during the Uruguay Round.  In the early
1990s, Poland increased MFN applied duties on a wide range of imports, especially on agricultural
products, with the introduction of variable levies.  Consequently, with tariffication, Poland adopted
relatively high tariffs on many such products.6  Because Poland was a non-market economy for the
base years of 1986-88, selected in the Uruguay Round for estimating tariff equivalents of non-tariffbarriers prohibited on agricultural products, Poland applied the generally much higher EU tariff rates
as the basis for tariffication.  Tariff protection continues to be well above pre-tariffication levels.
20. Poland's tariff reforms since 1995 have been aimed primarily at meeting its Uruguay Round
commitments, including as a signatory of the Information Technology Agreement, and have coincided
with much broader and substantive reductions in preferential rates under regional trade agreements.However, tariffs on a range of certain, predominantly agricultural products have been increased
recently to maximum bound levels due to competitive pressures mainly from preferential, imports.
These include raising the MFN tariff rate on imported flavoured yoghurt from 9% to 35% (later
lowered to 29%); wheat from 3% to 27.5%; butter from 40% to 111.7%; as well as on sugar, rapeseed
and pigmeat.  Preferential tariffs previously granted to CEFTA countries on wheat, pigmeat andpoultry imports were also suspended.  Tariffs were raised from 2000 on several products, including
flour and bran, where the rate was increased from 10% to 25%.  Tariff suspensions on certain goods,
permitted under Polish legislation, cover only products with low duties (Council of Ministers
Regulation on Suspension of Collection of Custom s Duties from Some Goods, 1998).  Thus, their
impact is relatively minor, reducing the overall average MFN tariff rate by less than one percentage
point.
21. Some 91% of Poland's tariff rates are ad valorem  (Chart III.3).  The remainder comprises
mainly composite or alternate duties applying primarily to agricultural products.
7  Some 66% of
agricultural tariffs are ad valorem  duties;  for manufacturing this figure rises to 99%.  A higher
reliance on ad valorem  import duties would improve the transparency of Poland's tariff structure
(Box III.1).
                                                          
6 These usually took the form of tariff quotas whereby much higher duties were set on above-quota
imports.  The Secretariat's estimates of tariff averages contained in this Report used the above-quota rate.  Whilethis is likely to over-estimate the rate of tariff pr otection afforded such products in cases where there are no
above-quota imports, the Secretariat's tariff level estimates are also under-stated by using only the ad valorem
component of mixed or composite duties.   This was necessary because ad valorem  equivalents were not
available.  For the same reason a few specific duties, affecting only 30 tariff lines, were also excluded from the
Secretariat's calculations.
7 Composite tariffs contain both a specific and ad valorem  duty, such as 10% plus a specific duty of a
certain amount per unit of import.  Alternate tariffs apply either the higher or lower of two duties, one of whichis a specific duty, such as 10% or, if lower, a certain amount per unit of import.Poland WT/TPR/S/71
Page 39
Chart III.1                                             
Tariff averages by HS agricultural products, 1999
020406080100120140
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24Per cent
MFN averages in Chapters 06 and 12 are higher than autonomous averages due to a difference in the number of 
specific duty lines.
WTO Secretariat calculations based on data provided b y the Polish authorities.Average MFN rate
 (32.8%) 
HS
01
020304 
05
0607080910
11
1213141516
17
1819202122
23
24Description
Live animals
Meat and edible meat offalsFish and crustaceans, molluscs and other aquatic invertebratesDairy produce, birds eggs, natural honey, edible products of animal origin  
Products of animal origin, n.e.s.
Live trees and other plants;  bulbs, roots and the like;  cut flowersEdible vegetables and certain roots and tubersEdible fruit and nuts;  peel of citrus fruits or melonsCoffee, tea, mate and spicesCereals
Products of the milling industry;  malt;  starches;  wheat gluten
Oil seeds and oleaginous fruits;  miscellaneous grains, seeds and fruitLacs;  gums, resins and other vegetable saps and extractsVegetable plaiting materials;  vegetable products n.e.s.Animal or vegetable fats and oils and other cleavage products;  prepared edible fats; etc.Preparations of meat, or fish or of crustaceans, molluscs or other aquatic invertebrates
Sugars and sugar confectionery
Cocoa and cocoa preparationsPreparations of cereals, flour, starch or milk;  pastrycooks' productsPreparations of vegetables, fruit, nuts or other parts of plantsMiscellaneous edible preparationsBeverages, spirits and vinegar
Residues and waste from the food industries;  prepared animal fodder
Tobacco and manufactured tobacco substitutesAutonomous rate
Applied MFN 
Note:
Source : WT/TPR/S/71 Trade Policy Review
Page 40
01020304050607080
25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 78 80 82 84 86 88 90 92 94 96Per cent
Average 1999
applied rate 
(10.9%)
HS       Description
25         Salt; sulphur; earths and stone, etc.
26         Ores, slag and ash27         Mineral fuels, mineral oils, etc.
28         Inorganic chemicals; organic or 
             inorganic compounds of precious             metals, etc.29         Organic chemcials30         Pharmaceutical products31         Fertilizers    
32         Tanning or dyeing extracts etc. 
33         Essential oils and resinoids;             perfumery, cosmetic or toilet             preparations34         Soap, organic surface-active              agents washing prep., etc.    35         Albuminoidal substances;
             modified starches; glues, etc.
36         Explosives; pyrotechnic products;             matches, etc37         Photographic or cinematographic              goods38         Miscellaneous chemical products
39         Plastics and articles thereof
40         Rubber and articles thereof41         Raw hides and skins and leather42         Articles of leather, etc.43         Furskins and artifical fur;              manufactures thereof
44         Wood and articles of wood, etc.
45         Cork and articles of cork46         Manuf. of straw, of esparto, etc.   47         Pulp of wood or of other              fibrous cellulosic materialHS       Description
48         Paper and paper board, etc.
49         Printed books, newspapers, etc.50         Silk
51         Wool; fine or coarse animal
             hair, etc.52         Cotton53         Other vegetable textile fibres 54         Man-made filaments   55         Man-made staple fibres 
56         Wadding, felt and non-wovens;
             special yarns; twine, cordage, etc.57         Carpets; other textile floor             coverings58         Special woven fabrics; lace, etc.59         Impregnated, coated, covered or             laminated textile fabrics, etc.
60         Knitted or crocheted fabrics    
61         Articles of apparel and clothing             accessories, knitted or crocheted62         Articles of apparel and clothing             accessories, not knitted, etc.63        Other made-up textile articles;
             sets, worn clothing, etc.
64         Footwear, gaiters, etc.65         Headgear and parts thereof66         Umbrellas, walking-sticks, etc. 67         Prepared feathers and down, etc.68         Articles of stone, plaster, etc.
69         Ceramic products
70         Glass and glassware71         Natural or cultured pearls,             precious or semi-precious             stones, precious metals, etc.HS       Description
72         Iron and steel
73         Articles of iron and steel74         Articles of iron and steel
75         Nickel and articles thereof
76         Aluminium etc. 77         unassigned chapter78         Lead and articles thereof   79         Zinc and articles thereof 80         Tin and articles thereof
81         Other base metals, etc.
82         Tools, implements, cutler             spoons and forks, etc.83         Misc. articles of base metals84         Nuclear reactors, boilers,             machinery, etc.85         Electrical machinery and
             equipment, etc.
86         Railway or tramway              locomotives, etc.87         Vehicles other than railway             or tramway rolling-stock; etc.88         Aircraft, spacecraft, etc.
89         Ships, boats, etc.
90         Optical, photographic, etc.              apparatus91         Clocks and watches, etc.92         Musical instruments, etc.93         Arms and ammunition, etc.
94         Furniture, bedding, etc.
95         Toy, games, etc.96         Miscellaneous manuf.              articles97         Works of art, antiques, etc.Chart III .2
Tariff averages by HS manufactured products, 1999
No entries for HS Chapter 77. 
WTO Secretariat calculations based on data provided by the Polish authorities.Autonomous rateApplied MFN 
Note:
Source:Poland WT/TPR/S/71
Page 41
Share of lines in per cent
WTO Secretariat estimates based on data provided b y the Polish authorities.Chart III.3
Composition of Poland's tariff, 1999
Source :Agricultural sector [HS 01-24] Manufacturing sector [HS 25-97]
Compound 
duties
18.6%Mixed duties
15.2%
Total lines: 8,153Ad valorem
98.9%Compound & 
mixed duties
1.1%
Ad valorem
65.7%Specific duties
0.4%Avg. MFN rate
32.8%Avg. MFN rate
10.9%
Total lines: 2,470
(b) Tariff bindings
22. Poland increased its coverage of bindings during the Uruguay Round from zero to 93.5% of
tariff lines.  In agriculture, all tariffs were bound, compared with 92.2% of lines for manufacturing.
Poland adopted ceiling bindings for many of its products, especially in agriculture, whereby bound
rates considerably exceed applied MFN rates on many products.  Overall, the simple average bound
tariff rate was 19.9%, well above the average applied MFN rate of 15.9% in 1999.  This difference is
greatest on agriculture products, where the bound average tariff rate was 55.5%, almost two thirdshigher than the average applied MFN rate in 1999.  Poland recently used this leeway to substantially
raise applied tariffs to bound levels on a range of agricultural products.
(c) Tariff structure and dispersion
23. Poland's tariff structure comprises many different rates specified to one decimal place.  Ad
valorem  tariffs in 1999 ranged from zero to 293.3% (the minimum duty rate set by the ad valorem
component of alternate duties applying to alcoholic beverages).  The modal group of rates was 10% or
below, with some 54% of tariff lines subject to these duties (Chart III.4).  Some 2.5% of tariff lines
were duty free;  9% of lines have MFN rates above 30%, and 0.6% of lines have rates above 100%.
Considerable scope exists to rationalize and simplify Poland's tariff structure by rounding off duties
and reducing the large number of different rates.WT/TPR/S/71 Trade Policy Review
Page 42
Box III.1:  A d valorem  versus specific tariff rates
Just as tariffs are economically superior to non-tari ff barriers because of their greater transparency and
predictability, ad valorem  duties are preferable to specific rates.  Ad valorem  duties are more transparent
as they provide a known level of protection that is given by the tariff rate.  Thus, the level of protectionafforded domestic producers is readily apparent and constant over time.  It is unaffected by changes inworld prices for reasons, such as exchange rate movements.  In contrast, the level of protection from
specific duties is not obvious;  it will vary inversely wi th any change in world prices, and is thus affected
by exchange rate movements.  A fall in world prices due to surplus world production, or induced by anappreciation in the importing country's exchange rate, will, for example, increase protection from anygiven specific rate.  A specific tariff rate structure ma y therefore counteract the beneficial price effects of
a country's currency realignment.
Ad valorem  duties can only change the level of protection if the Government changes the tariff rate.  In
most economies, this normally requires the Government to openly justify such increases.  Specific rates,on the other hand, automatically provide greater protection against lower import prices and cushion
domestic producers from declining international compet itiveness.  Specific tariffs can therefore conceal
high, and increasing, tariff protection.
Assessing the protective effects of specific duties is therefore difficult.  They require ad valorem
equivalents, that are likely to change over time, to be continually estimated.  This makes specific tariffs
non-transparent and economically more distorting.
The economic costs of specific rates are compounded by the fact that they distort production patterns
more than ad valorem  tariffs.  This is because they provide disparate levels of assistance for similar goods
by more heavily taxing imports of cheaper goods.  This encourages domestic firms to produce lessexpensive products on which import protection is greater.  By distorting relative prices, specific rates may
be more regressive than ad valorem  duties since they impose a proportionately heavier burden on the
cheaper range of products usually most consumed by the poor.
On the other hand, specific duties are relatively simple to administer in instances where the value-for-duty
cannot be easily observed.  They may also reduce pressure to resort to anti-dumping or countervailingmeasures for protection because the duty co llected is unaffected by falls in prices.
Source: WTO Secretariat.
24. The efficiency losses associated with Poland's tariff structure depend not just on the average
level of tariff protection, but also on the dispersion in applied tariff rates across products.  The higher
the dispersion in tariff rates, particularly within groups of similar and, thus, highly substitutable
products, the greater the likelihood of consumers' and producers' decisions being distorted by the tariff
structure.  The Polish tariff structure remains relatively disparate overall, with a degree of dispersion,
as measured by the standard deviation, of 24 percentage points (Table III.1).  The highest appliedMFN tariffs are on alcoholic and other beverages; tobacco products; and a wide range of agricultural
and food commodities. Thus, on an ISIC sector basis, tariff dispersion is highest in the manufacturing
sector, where the standard deviation is 24.6%, compared with 11.3% in agriculture (and fisheries), and
lowest in mining (standard deviation of 3.1%).
8  Some 250 tariff lines, or just over 2%, in 1999, had
duties that constituted domestic "peaks" in that they exceeded three times the overall simple averageapplied tariff of 15.9%, i.e. their tariff rate exceeded 47.7%.  All these peaks were on agricultural
products (using the WTO sectoral definitions), wh ere 11.6% of tariff lines were affected in 1999.
                                                          
8 Because the highest dispersion is associated wi th food, beverages and tobacco, average dispersion
measures are sensitive to the sectoral definition used.  On an HS definition of sectors, which includes food
processing, agriculture has the highest degree of dispersion.Poland WT/TPR/S/71
Page 43
(2.2%)(6.2%)(13.1%)(21.2%)
(2.5%)(54.2%)
(0.6%)
01,0002,0003,0004,0005,0006,0007,000
Duty free >0- 10 >10-20 >20-30 >30-40 >40-100 >1000102030405060708090100Chart III .4
Frequency distribution of MFN tariff rates, 1999a
Number of tariff lines Per cent
Cumulative per cent
Number of lines (% of total)
Based on 10,593 tariff lines (excl. specific rates) 
WTO Secretariat calculations based on data provided by the Polish authorities.a
Source :
(d) Tariff escalation
25. Poland's tariff structure exhibits significant tariff escalation that favours domestic processors
of mainly food, beverages and tobacco; textile a nd leather; and of wood and wooden furniture (Chart
III.5).  However, final processors are disadvantaged by the tariff structure relative to semi-processors
in the manufacture of some goods, including mainly paper, printing and publishing products and basic
metal products.
(e) Tariff concessions and exemptions
26. Temporary importation, for example, of goods for repair, is allowed for up to one year,
provided collateral security is deposited with customs to cover the import duty and tax that would
otherwise be payable.  The security is refunded in full if the goods are exported within six months
from importation, and partially (50%) where exportation takes place within six to twelve months.
Refunds are payable within 30 days from the date of exportation.  Applications for such refunds mustbe lodged to Customs within 14 days with suppo rting documentation, including proof of payment of
the initial duty when the inputs were imported and confirmation of export.
27. Imported inputs processed into exports may either be exempt from tariff duty, under the
suspension system, or have the duty refunded on export under the drawback scheme.WT/TPR/S/71 Trade Policy Review
Page 44
05101520253035404550
Food, beverages
and tobaccoTextile and
leatherWood and
wooden furniturePaper, printing
and publishingChemicals Non-metal
mineral productsBasic metal Fabricated metal
products,
machineryOther
manufacturingPer centChart III.5
Tariff escalation by 2-digit ISIC industry, 1999a
Based on 10,593 tariff lines (excl. specific rates).
WTO Secretariat calculations based on data provided b y the Polish authorities.a
Source :Average 
MFN rate
15.9%First stage of processing
Semi-processed
Fully processed
(f) Surcharges, fees, and taxes
28. The temporary tariff surcharge of 6%, introduced on all imports in 1994 and gradually
reduced to 3% from 1 January 1996, was abolished from 1 January 1997.  The removal of the
surcharge was accompanied by upward adjustments in applied customs duties.
29. Poland currently levies a range of customs clearance fees (1997 Customs Code).  Most of the
fees are unrelated to services rendered by customs, and as such are equivalent to an additional importtariff.  The collection of such fees recovered around half of customs' budgetary allocation in recent
years.  However, these fees would be removed, upon Poland's EU accession.  Poland intends to retain
only the fees collected in the EU.  The collection of five categories of customs clearance fees was
eliminated from June 1999, and the aim is to abolish the rest by 2001.
30. Indirect commodity taxes comprise the goods and services (value-added) tax and excise
duties.  Both were introduced in 1993 and are administered by the Ministry of Finance.  Poland has
been taking steps to align its VAT and excise taxes to the EU since 1997.  For example, the coverage
of the VAT is being increased, and excise duties on motor fuels and cigarettes were raised
considerably in 1998 to approximate the minimum rates set by the EU.
9  The VAT applies to a wide
range of goods and services at one of two rates (Table III.2).  The basic rate of 22% is applied mainlyto industrial products, while the intermediate rate of 7% is applied on most food products and
services.  A range of products are subject to a zero rate of tax, such as unprocessed foodstuffs, farm
                                                          
9 Draft laws were approved in June 1999 to extend the VAT to cover goods and services in agriculture,
forestry, and fisheries.Poland WT/TPR/S/71
Page 45
machinery including tractors, fertilizers, pesticides, and certain medical and sanitary products made of
plastic and rubber.  In addition, a number of products and services are exempt from the tax.  This
includes most foodstuffs, forestry and fishing products, and related services.  Thus, the agriculture
sector is essentially excluded from the VAT.  A tax refund system also applies to certified domestic
handicraft products.  Exports are zero-rated for VAT purposes.  Exporters also benefit from a refund
of any VAT paid on inputs.10  As from September 1999, foreign travellers acquiring goods to take out
of Poland have been entitled to a VAT refund.
Table III.2
Taxes levied on imported and domestic goods and services
Tax baseTax Product Rate (%)Import Domestic
Most products, including electricity, gas and heating oil 22
Food products (unless exempted); certain children’s goods;
medicines and medical supplies (0% or 4% before 2000);
building materials; basic appliances; passenger transport (except
taxis and public transportation); and domestic air services7
Exports; newspapers; periodicals; books; housing units; feed;
fertilizers; pesticides; and farm machinery and equipment0VATa
Unprocessed foodstuffs; water; horticultural products; cultural
services; some legal services; and R&D activitiesExemptC.i.f. price plus
all duties and
charges andexcise if
applicableSale price less
amount of tax due
plus excise ifapplicable
Excise Certain luxury and consumer goods, including mainly alcoholic
beverages, tobacco, fuels, passenger cars, luxury electronicequipment, gambling equipment, salt, plastic packaging, furs,
cosmetics, yachts and sailboatsWide range of
specific and ad
valorem ratesSame as VAT
baseSame as VAT
base
a Small businesses (up to Zl80,000 annual turnover) and farmers are exempt.
Source :  WTO Secretariat, based on material supplied by the Polish authorities.
31. In addition, excise taxes apply to a range of products, including most tobacco products,
alcoholic beverages, matches, motor vehicles, and petroleum products.  Excise rates on some productsare ad valorem .  Excise rates are levied specifically on imported products under Polish legislation, and
are additional to (and not a component of) the customs duties.
32. Both VAT and excise duties are levied on imports and domestically produced goods.  While
indirect taxes are generally levied on imports in a non-discriminatory manner, there appear to be some
notable exceptions.  Although some of the discrepancies in excise duties have been removed, such ason beer in January 1998, others remain.  The VAT or excise rates on some products are higher if
imported, such as pharmaceuticals, motor vehicles, sea-yachts, perfumes, clothing, fur apparel,
unleaded petrol, and chewing gum (Table III.3).  Acco rding to the Polish auth orities, the remaining
differences in excise tax rates between imported and domestic products are not discriminatory, since
they compensate for using different tax bases.  The products are therefore claimed to be taxed equallyas they are levied the same excise amount. However, large differentials, of up to 25 percentage points,
exist on some products, such as expensive yachts; and other products, including clothes and lower-
priced yachts, attract excise only if imported.  Moreover, levying various tax rates between imported
and domestic products according to different tax bases is complex and non-transparent, and is likely
                                                          
10 While producers of goods and services subject to 0% VAT may claim a refund for VAT paid on
inputs, this is not the case for suppliers of tax-exempt products, unless specified in the legislation.  Producers inseveral tax-exempt activities, including the slaughte r of cattle, pigs, and poultry; preparing carcasses for
processing; and milk processing, are entitled to a refund of VAT paid on equipment.  Mineral explorers andproducers are also entitled to a refund of VAT paid on inputs.WT/TPR/S/71 Trade Policy Review
Page 46
to create uncertainty among traders.11  The lump-sum VAT, levied exclusively on foreign hauliers on
the transport of goods and supply of certain passenger services into Poland, was abolished in January
1998.
Table III.3
Imported goods subject to different excise taxes
Rate of excise
Producer descriptionImport Domestic Difference
Chewing gum 25% 20% 5%
Fruit, nuts and other edible plant parts with alcohol Zl 5,677 0 Zl 5,677
Bitter flavour bases, with sugar and spices Zl 5,677 0 Zl 5,677
Certain fermented and non-alcoholic drinks Zl 89 Zl 66 Zl 23
Cigarettes 150% Zl 63.70 – Zl 97.40aCannot be calculated
Salt 7.5% or 17.7% 7% or 15% 0.5% or 2.5%
Unleaded petrol Zl 1,186 Zl 1,086 Zl 100
Diesel fuels 25% Zl 198 Cannot be calculated
Perfumes, beauty preparations and cases 25% 20% 5%
Glues for eyelashes and wigs 25% 0 25%
Tanned or finished fur hides 25% Free or 20% 25% or 5%
Fur apparel 17.7% 0 or 15% 17.7% or 2.5%
Clothing articles 17.7% 0 17.7%
Video cameras, recorders and TVs 11.1% 10% 1.1%
Motor vehicles
- Engines above 2000cc 11.1% 10% 1.1%
- Other 2.3% 2% 0.3%
Sea-going yachts
- Priced above ECU2400 25% 20% 5%
- Other 25% 0 25%
Hunting guns and gas weapons 25% 20% 5%
Playing cards (excluding for children) 33.3% 25% 8.3%
Specialized equipment for gambling 17.7% 15% 2.7%
a Excise duties on domestic cigarettes vary:  Zl 97.40 per 1,000 cigarettes for foreign-brand cigarettes made in Poland; Zl 83.4 0 for
Polish brand cigarettes longer than 70 mm, and Zl 65.60 if shorter; and Zl 63.70 for filterless cigarettes.
Source : WTO Secretariat, based on material supplied by the Polish authorities.
(g) Tariff preferences and rules of origin
Tariff preferences33. Poland provides substantial tariff preferences to various trading partners under regional
arrangements and free-trade agreements.  These include tariff preferences for imports from the EU, as
well as from EFTA and CEFTA members, and bilaterally on imports from a number of other
countries, such as Estonia, Croatia, and Turkey.  Most of Poland's trade (some three quarters of
exports and imports) is conducted under these preferential arrangements (Chapter I).  This shareincreased during the 1990s in line with Poland's implementation of tariff preferences with
                                                          
11 Uniform taxation of imported and domestic products means that they are levied the same ad valorem
rate, which does not necessarily correspond to them being levied the same amount of duty.  This is because ofprice differences between the imported and domestic products.  Thus, imposing the same specific tax onimported and domestic products would not constitute equal tax treatment if significant price differentials existedbetween the two products.Poland WT/TPR/S/71
Page 47
neighbouring countries, especially with the EU, whereby Polish tariffs on industrial imports were
phased out by 1999, and preferences, without quota,  were extended on some agricultural products.12
Consequently, less than a quarter of Poland's trade is currently conducted on an MFN basis.
34. Tariff preferences under regional trade agreements vary considerably between trading
partners and across products (Table III.4).  In 1999, preferential tariffs were, on average, lowest on
imports from the Czech and Slovak Republics, at 3.8 %, and highest for Israel, at 8.8%.  Preferential
tariffs on Poland's imports averaged 6%, compared with an average MFN tariff of 15.9%. The
agriculture sector (using the ISIC definition) had an average preferential tariff rate of 8.7%, compared
with 5.7% for the manufacturing sector.  These are well below the corresponding MFN sectoral
averages of 17% and 16.1%, respectively, especially for manufacturing, where the average
preferential rate is about one third of the MFN level.
35. Moreover, wide sectoral differences in preferential tariffs enjoyed by bilateral trading partners
reflect the uneven coverage of such preferences; many goods, especially agricultural products, are
excluded from the tariff reductions.  Sectoral differences are most pronounced for the EU, where the
average preferential rate for agricultural products is just over one third of that for manufacturing.  For
EFTA, the Faroe Islands, Estonia, and Israel, the preferential rate is about half.  The averagepreferential rate on manufacturing exceeds that for agriculture only for Lithuania.
36. Substantial differences between MFN and preferential tariffs imply that Poland's tariff
structure is likely to be diverting imports away from MFN sources.  Imports from the EU, which
account for some two thirds of Poland's total merchandise imports, were dutiable at an average
preferential tariff of 6.5% in 1999.  On accession, the EU's common external MFN tariff that Poland
must adopt will lower its MFN tariffs by on aver age two thirds;  EU tariffs currently average 5%
(simple).  This will decrease considerably the gap between Poland's preferential and MFN rates.  A
priori , and with the possible exception of agricultural products, this could be expected to reduce the
degree of trade diversion induced by Poland's current tariff structure.
13
37. Poland has a GSP scheme that provides prefer ential tariffs to imports from developing
countries.  Such imports are generally dutiable at 70% of the applied MFN rate.  Imports from least
developing countries (LDCs) enter duty free.  Howe ver, access to these tariff preferences is subject to
numerous exceptions.  Consequently, the average tariff rate applied to developing country imports in
1999 was 14.1%, while tariffs on imports from LDCs averaged 9.9%.  Poland's preferential tariffs for
developing and least developed countries therefore substantially exceed, on average, those applied to
imports from other preferential sources.
Rules of origin38. Poland applies rules of origin prescribed under its regional agreements with the EU, EFTA
and CEFTA members, and other bilateral agreements.  As from 1997, Poland has applied the EU
system of european cumulation of origin.
                                                          
12 Exceptions on industrial products include a 15% tariff on imports of passenger and commercial
vehicles, to be abolished from 2002; and tariffs of 5% and 11% on petrol and fuel oil, respectively, to beabolished from 2001.  Tariffs of 3% on steel were abolished from 2000.
13 Trade diversion of agricultural products is more  likely to increase following Poland's EU accession
due to adoption of the EU's more restrictive common agricultural policies.WT/TPR/S/71 Trade Policy Review
Page 48
Table III.4
Poland's selected preferential tariff rates by ISIC 3-digit category, 1999a
Preferential tariff rates
Code Description No.
of linesMFN
(%)EU (15)
(%)EFTA
(%)Czech
Rep.
(%)Hungary
(%)Lithuania
(%)Israel
(%)GSP
(%)LDC
(%)
Total 10,623 15.9 6.5 7.0 3.8 4.9 6.0 8.8 14.1 9.9
1 Agriculture 705 17.0 15.3 13.2 3.1 5.5 4.2 16.0 12.4 6.1
111 Agricultural and
livestock production514 18.0 15.9 17.3 4.2 7.6 5.8 16.8 13.4 7.7
121 Forestry 27 14.2 14.1 14.1 0.0 0.0 0.0 14.1 10.6 10.5
122 Logging 20 3.0 0.0 0.0 0.0 0.0 0.0 0.0 1.1 0.0
130 Fishing 144 15.9 15.8 0.4 0.1 0.1 0.0 15.8 11.1 0.3
2 Mining 137 2.1 0.0 0.0 0.0 0.0 0.0 0.0 1.8 0.4
210 Coal mining 6 4.0 0.0 0.0 0.0 0.0 0.0 0.0 3.2 0.0
220 Crude petroleum
and natural gasproduction9 3.0 0.0 0.0 0.0 0.0 0.0 0.0 3.0 3.0
230 Metal ore mining 27 0.6 0.0 0.0 0.0 0.0 0.0 0.0 0.4 0.0
290 Other mining 95 2.4 0.0 0.0 0.0 0.0 0.0 0.0 1.9 0.3
3 Manufactures 9,780 16.1 5.9 6.7 3.9 4.9 6.2 8.4 14.4 10.3
311 Food products 1,456 28.8 26.8 24.6 7.5 11.2 18.1 28.8 25.4 21.9
312 Other food products
and animal feeds154 30.8 29.0 29.2 15.8 18.9 16.5 30.6 27.7 22.2
313 Beverages 197 101.9 49.2 101.4 101.0 101.0 101.2 101.9 101.8 101.8
314 Tobacco
manufacturing10 226.6 226.6 226.6 226.6 226.6 226.6 226.6 226.6 226.6
321 Textiles 1,066 13.7 0.1 0.1 0.1 1.2 3.1 4.7 13.2 11.6
322 Manufacture of
wearing apparel,
except footwear225 21.5 0.0 0.0 0.0 4.3 5.6 9.7 21.4 21.4
323 Leather products,
except footwear andwearing apparel102 17.6 0.0 0.0 0.0 0.0 0.0 0.0 15.5 7.0
324 Footwear, except
vulcanized rubber orplastic footwear58 11.9 0.0 0.0 0.0 0.0 4.1 0.0 11.9 11.9
331 Wood and wood
products, exceptfurniture181 8.8 0.0 0.0 0.0 0.0 0.0 0.0 4.9 0.0
332 Manuf. of furniture
& fixtures, exceptprimarily of metal38 11.7 0.0 0.0 0.0 0.0 0.0 0.0 11.6 11.4
341 Paper products 200 8.4 0.0 0.0 0.0 0.0 0.0 0.0 6.7 0.0
342 Printing and
publishing and alliedindustries41 6.8 0.0 0.0 0.0 0.0 0.0 0.0 5.5 0.0
351 Industrial chemicals 1,155 8.4 0.0 0.0 0.0 0.0 0.0 0.0 6.7 0.2
352 Other chemicals,
incl. pharm.426 10.5 0.5 0.6 0.1 0.1 0.5 1.3 8.1 2.6
353 Petroleum refineries 65 17.9 2.7 2.7 2.7 2.7 2.7 4.4 17.4 15.6
354 Manuf. of
miscellaneous
petroleum & coalproducts17 4.8 0.0 0.0 0.0 0.0 0.0 0.0 3.8 0.0
355 Rubber products 106 10.6 0.0 0.0 0.0 0.0 1.2 0.0 9.1 3.2
356 Manufacture of
plastic productsn.e.s.35 10.0 0.0 0.0 0.0 0.0 0.0 0.0 8.1 0.5
Table III.4 (cont'd)Poland WT/TPR/S/71
Page 49
Preferential tariff rates
Code Description No.
of linesMFN
(%)EU (15)
(%)EFTA
(%)Czech
Rep.
(%)Hungary
(%)Lithuania
(%)Israel
(%)GSP
(%)LDC
(%)
361 Pottery and china 25 10.7 0.0 0.0 0.0 0.0 0.0 0.0 8.6 0.0
362 Manufacture of glass
and glass products137 11.6 0.0 0.0 0.0 0.0 0.0 0.0 10.0 5.1
369 Other non-metallic
mineral products133 7.9 0.0 0.0 0.0 0.0 0.0 0.0 6.4 0.0
371 Iron and steel basic
industries524 13.9 2.5 2.5 2.3 3.8 4.9 4.9 13.9 13.8
372 Non-ferrous metal
basic industries255 7.3 0.0 0.0 0.0 0.0 0.0 0.0 6.4 2.6
381 Fabricated metal
products, exceptmachinery & equip.354 11.8 0.2 0.2 0.3 1.9 0.4 0.4 11.0 7.6
382 Non-electrical
machinery incl.computers1,022 8.8 0.0 0.0 0.0 0.0 0.0 0.0 7.2 1.0
383 Electrical machinery
apparatus, appliances& supplies683 9.9 0.0 0.0 0.0 0.0 0.0 1.0 8.9 4.9
384 Transport equipment 423 14.0 2.6 2.6 2.9 2.9 3.1 3.9 11.5 8.1
385 Professional and
scientific equipment384 9.2 0.0 0.0 0.0 0.0 0.0 0.0 7.7 2.0
390 Other manufacturing
industries308 12.7 0.5 0.5 0.0 0.5 0.2 0.5 10.9 4.6
400 Electricity 1 3.0 0.0 0.0 0.0 0.0 0.0 0.0 2.4 0.0
a Analysis excluding all specific rates and specific components of compound duties.
Source: WTO Secretariat estimates based on data provide by the Polish authorities.
(iii) Customs valuation and preshipment inspection
39. Tariffs are levied on the c.i.f. (cost, insurance and freight) value of imports.  Poland is a
member of the World Customs Orga nization (WCO).  Customs valuation methods are specified in the
Polish Customs Code (Section 3):  the transaction value of goods, or price actually paid, is to be used
as the primary means for customs valuation;  failing this, the transaction value of identical or similar
goods exported to Poland is to be applied.  If such a valuation is not possible, the products will be
valued for customs purposes in accordance with WTO rules.  Explanations concerning customsvaluation are to be in accordance with the WTO and the WCO.
14  Regulation of the Council of
Ministers (December 1999) stipulates detailed procedures for determining the customs value.15
40. Poland does not set any minimum import or reference prices for customs valuation.  Its
Customs Code prohibits the use of minimum import values for determining customs value (Article
29).
41. Poland does not require preshipment inspection of imports and does not intend to introduce
such arrangements.
                                                          
14 Regulation of the President of the Central Customs Office, September 1997.
15 Exchange rates to be used for determining customs values are stipulated in Regulation of the
Minister of Finance, October 1997.WT/TPR/S/71 Trade Policy Review
Page 50
(iv) Trade prohibitions, sanctions, and quantitative restrictions
42. According to authorities, Poland has removed many of its import bans and quotas since the
last Trade Policy Review.  For example, quotas on the import of oil products were lifted from
1 January 1997.  Nevertheless, Poland currently prohibits, for health and environmental reasons,
imports of used passenger motor cars older than ten years and commercial vehicles (including taxis)
more than six years old; as well as certain engines (Table III.5).  These bans are to be eliminatedby 2002.  Poland does not maintain any trade sanctions.
Table III.5
Import prohibitions and restrictions, 1999
Product description Type GATT 1947
legal basisDuration Duration
Petroleum oils and oils obtained from bituminous minerals,
other than crude; preparations n.e.s., containing by weight
70% or more of petroleum oils or obtained from bituminous
minerals, these oils being the basic constituents of thepreparations
Petroleum gases and other gaseous hydrocarbonsLicensing
(concession)Art. XXI(b) Temporary Temporary
Halogenated derivatives of hydrocarbons
Prepared binders for foundry moulds or cores, other
chemical products, residual products of the chemical or
allied industriesAutomatic
licenceMontreal
Protocol and
Art. XX(b)31.12.2001 31.12.2001
Gelatine (including gelatine in rectangular and square
sheets, whether or not surface-worked or coloured) and
gelatine derivatives; isinglass; other glues of animal origin,excluding casein glues of HS No. 3501 – concerns only
gelatine for industryAutomatic
licenceArt. XX(b) 31.12.1999 31.12.2001
Motor cars and other motor vehicles principally designed for
the transport of persons (other than those of HS No. 8702),
including station wagons and racing carsChassis fitted with engines, for the motor vehicles of HS
Nos. 8701 to 8705
Bodies (including cabs), for the motor vehicles of HSNos. 8701 to 8705
Motor vehicles for the transport of goodsProhibition Art. XX(b) 31.12.2001 31.12.2001
Spark-ignition reciprocating or rotary internal combustion
piston enginesProhibition Art. XX(b) 31.12.2001 31.12.2001
Spark-ignition reciprocating or rotary internal combustion
piston engines
Motor cars and other motor vehicles principally designed forthe transport of persons (other than those of HS No. 8702),
including station wagons and racing cars
Chassis fitted with engines, for the motor vehicles of HS
Nos. 8701 to 8705b
Bodies (including cabs) for the motor vehicles of HS Nos.
8701 to 8705b
Parts and accessories for the motor vehicles of HS Nos.
8701 to 8705bLicensing(concession)Art. XX(b) Temporary Temporary
Compression-ignition internal combustion piston engines
(diesel or semi-diesel engines)c
Chassis fitted with engines, for the motor vehicles of HSNos. 8701 to 8705c
Bodies (including cabs) for the motor vehicles of HS Nos.8701 to 8705c
Parts and accessories for the motor vehicles of HSNos. 8701 to 8705cLicensing
(concession)Art. XX(b) Temporary Temporary
Table III.5 (cont'd)Poland WT/TPR/S/71
Page 51
Product description TypeGATT 1947
legal basisDurationDuration
Propellent powdersa
Prepared explosives, other than propellent powdersa
Safety fuses, detonating fuses, percussion or detonating
caps, igniters and electric detonatorsa
Fireworks, signalling flares, rain rockets, fog signals andother pyrotechnic articlesa
Revolvers and pistols, other than those of HS Nos. 9303 to
9304
Parts and accessories of articles of HS Nos. 9301 to 9304Licensing
(concession)Art. XXI(b) Temporary Temporary
a Other than those specified in the Regulation of 3 August 1999  of the Minister of Economy establishing the list of goods and
technologies that are subject to special import and export controls.
b Applies only to goods for the purpose of industrial assembling of motor vehicles of HS No. 8703 (cars).
c Applies only to goods for the purpose of industrial assembling of motor vehicles of HS No. 8701 (agricultural and forestry
tractors), except HS No. 8701.20 (road tractors for semi-trailers).
Source : Government of Poland.
43. Most import quotas have been phased out in line with Poland's commitments under regional
trade agreements.  Poland maintains duty-free quotas for imports of passenger and commercial motorvehicles and components from the EU, subject to local assembly provisions.
(v) Licensing arrangements
44. For health and environmental reasons, Poland maintains import licensing on a number of
products (Table III.5).  Non-automatic licensing covers imports of petroleum oils and gases; certain
engines and other components for assembly into motor vehicles, including tractors; and militarygoods.  Automatic licensing applies to imported gelatine for industrial use and for halogenated
derivatives of hydrocarbons under the Montreal Protocol.
16
45. Import licences are also required for some food preparations, alcoholic beverages, tobacco
products, mineral oils and fuels.  Products requiring a licence (concession) to be imported are
contained in the Minister of Economy (1998) Regulation Concerning the List of Goods for theForeign Trade for which Concessions are Required.
46. The Ministry of Economy is mainly responsible for administering import permits (or
concessions).  All registered entities are eligible to apply for an import licence.  However, in the case
of non-automatic licences, only existing holders of licences may apply.  Licences are usually granted
for a period of three months, and are non-conditional.
(vi) Tariff quotas
47. In July 1995, Poland implemented its agricultural commitments under the Uruguay Round to
tariffy non-tariff measures, including variable levies and import quotas.  Poland implemented tariff
quotas on a range of agricultural products; abov e-quota rates were set at or below bound levels.
Products subject to global tariff quotas include beef, pork, poultry meat, and live poultry; milk and
cream; sugar; eggs; honey; certain fruit and vegetables, such as apples, pears, cucumbers, and
tomatoes; spices; vegetable oils; flour; wine; and certain tobacco products.  Some tariff quotas, suchas on cucumbers and apples, are applied seasonally to correspond with the domestic off season.  The
Ministry of Economy administers quotas, in conjun ction with the Ministry of Agriculture.  Import
                                                          
16 Poland is examining the further relaxation of its licensing arrangements.WT/TPR/S/71 Trade Policy Review
Page 52
entitlements are allocated among importers on a first-come, first-served basis according to historical
levels.  Details of the administration of tariff quotas applied to cucumbers and apples in 1998 were
notified to the WTO.17
48. Tariff quotas have consistently been substantially underutilized (Table III.6).18  No imports
occurred in 1999 in several product categories, while the quotas were fully used in only a few cases.
This may indicate that the in-quota tariff rate on many products had been set too high given marketconditions.  Poland also introduced additional tariff rate quotas on several agricultural products in
1999.  For example, tariff quotas were introduced on imports of sweetcorn from Hungary in April
1999; and on sugar beet seeds in June 1999.
Table III.6
Tariff quotas maintained on agricultural imports, 1999
Product description Tariff quota
(volume)In-quota imports Quota utilization
(%)
Live poultry, including fowls, ducks, geese, etc. 5 million pcs 2,880,000 pcs 58
Meat of bovine animals, fresh or chilled 5,200 t 0 0
Meat of bovine animals, frozen 16,148 t 18.05 t 0
Meat of swine, fresh, chilled or frozen 42,770 t 29,672 t 69
Meat and edible poultry offal, fresh, chilled or frozen 43,512 t 12,838 t 30
Milk and cream concentrated or containing added sugar 4,620 t 312 7
Butter and other fats and oils 15,100.9 t 1,288.3 t 9
Bird's eggs not in shell, egg yolks, fresh, cooked by steaming dried,
etc.116.3 t 31.3 t 27
Natural honey 312.8 t 311.6 t 99
Stomachs of poultry 308 t 5 t 2
Cut flowers of roses, chrysanthemums and carnations, fresh 667 t 46.3 t 7
Cucumbers, fresh or chilled 5,308 t 100 t 2
Apples, pears and quinces, fresh, 32,308 t 1,000 t 3
Other fruit, fresh 17 t 0 0
Ginger, saffron, turmeric, thyme, bay leaves, curry and other spices 79.5 t 51.8 t 65
Wheat and meslin 388,000 t 49,814 t 13
Wheat or meslin flour 8,962 t 4,717 t 53
Other cereal flours 1,552 t 23.9 t 2
Flour, meal, flakes, granules and potato pellets 584 t 0 0
Malt, whether or not roasted 8,280 t 8,280 t 100
Starches 2,400 t 2,400 t 100
Rape or colza seeds 26,890 t 0 0
Seeds, fruit and spores, used for sowing 3.2 t 0 0
Hop cones, fresh, ground, or in pellet form; inulin 38 t 13 t 34
Vegetable saps and extracts 18.4 t 2 t 11
Rape, cola or mustard oil, whether or nor refined 8,000 t 2,950 t 37
Cane or beet sugar 60,000 t 0 0
Other sugars, glucose and glucose syrup 292 t 290.7 t 99
Malt extracts, food preparations of flour 120 t 32.3 t 27
Table III.6 (cont'd)
                                                          
17 WTO document G/AG/N/POL/21, 8 September 1998.
18 Tariff quotas maintained in 1997 along with in-quota imports were notified by Poland to the WTO in
document G/AG/N/POL/15, 25 February 1998).Poland WT/TPR/S/71
Page 53
Product description Tariff quota
(volume)In-quota imports Quota utilization
(%)
Tomatoes, prepared or preserved 3,183 t 3,110 t 98
Other vegetables, prepared or preserved 100 t 0 0
Sauces and preparations 635,200 l 1,784.9 l 0
Food preparations nes 929 t 860 t 93
Wine 7,670 hl 0 0
Vermouth and other wine 635,200 l 0 0
Other fermented beverages .. .. ..
Undenatured ethyl alcohol 231,000 l 5,005.6 l 2
Ethyl alcohol or other spirits 6,362,100 l 793,490.1 l 12
Cigars, cigarettes, etc. 20 million pcs
6 billion pcs9,700,000 pcs
955.9 million pcs49
16
Other manufactured tobacco 1,300 t 1,299.6 t 100
Albumin, dried 0.51 t 0 0
Gelatin 126 t 0 0
Dextrin, etc. 361 t 0 0
.. Not available.
Source : WTO document G/AG/POL/32, 2 March 2000.
49. Outside agriculture, Poland maintains tariff quotas, both globally and bilaterally, on imports
of certain motor vehicles and components imported from the EU, and certain inputs for thepharmaceutical, shipping, and electro nics industries (Table III.7).
Table III.7
Tariff quotas on industrial products, 1999
Product Regulation of Council of Ministers Establishing Tariff Quota
Motor vehicles from the EU Motor Vehicles from the EU, 15.12.98
Products from the Czech, Slovak, Slovenian & Bulgarian Republics, & Hungary, 15.12.98
Products from Israel, 15.12.98
Products from Estonia, 15.12.98
Products from Faeroe Islands, 15.12.98
Motor vehicle components Machinery and Equipment for the Motor Industry, 30.12.98
Motor vehicle components Goods for the Motor Industry, 30.12.98
Pharmaceutical components Goods for the Pharmaceuticals Industry, 30.3.99
Raw Materials for Food Production for People on Gluten-Free Diets, 13.4.99
Goods for Shipping, 13.4.99
Chemicals for the Electronics Industry, 15.6.99
Machinery and Equipment for the Electronics Industry, 14.6.99
Goods for the Metallurgic Industry, 15.6.99
Goods for Environmental Protection, and Materials Used in Forestry, 15.6.99
Goods for Car Part Plants, 15.6.99
Goods for the Telecommunications Industry, 15.6.99
Source : Government of Poland.
(vii) State trading agencies and countertrade
50. Pursuant to GATT 1947Article XVII, Poland has notified two agencies that have features of
state trading entities.  These are the Agricultural Market Agency (AMA) and the Polish Oil and GasWT/TPR/S/71 Trade Policy Review
Page 54
Company.  The AMA was created in 1990 and is responsible for implementing the Government's
policies aimed at stabilizing the domestic agricultural market and protecting farmers.  The
Government funds the AMA's stock management ope rations.  However, the AMA does not directly
engage in foreign trade and has no exclusive controls over imports.  The main products covered by theAMA are wheat, rye, pork meat, butter, skim milk powder, sugar, and potato starch.
51. The Polish Oil and Gas Company, a public ut ility, owns the Polish gas network and is
responsible for supplying gas in Poland from domestic and foreign sources.  It is the sole importer ofhigh methane natural gas, which it imports mainly from Russia.
52. Since embarking on its economic reforms, Poland has not engaged in countertrade. It has
terminated all previous international agreements envisaging countertrade and has entered into no newagreements.  Private firms may still engage in countertrade, but only with the acceptance of the
National Bank of Poland, which is required to register and control such transactions.  To date, no
acceptance has been given.
(viii) Anti-dumping and countervailing actions
53. Anti-dumping action may be imposed under Polish legislation (Anti-dumping Law of
December 1997) to protect domestic industries from material injury caused or threatened by imports
at dumped prices.  Such measures and procedures are to observe the requirements of the WTO and are
to be subject to Poland's administrative procedure code (Article 1 of the Anti-dumping Law).  Anti-
dumping investigations are initiated and conducted by the Ministry of Economy.  Anti-dumpingprocedures should be completed within 12 months, and in special situations, not longer than 18
months from the date of initiation.  The Minister of Economy, in consultation with the President of the
Office of Competition and Consumer Protection, determines what final action, if any, is needed,
including the possible application of provisional duties.  Poland's current anti-dumping actions are
summarized in Table III.8.
54. Poland has not taken countervailing action against subsidized exports.
Table III.8
Anti-dumping action by Poland, 1999
Product Exporting country Anti-dumping measure Date of investigation and
imposition
Gas lighters China Anti-dumping duty of ECU0.09 per unit 21.11.97 and 5.11.98
X-ray film Germany Investigation on-going 15.3.99
Cable Republic of Belarus Investigation on-going 26.5.99
Synthetic fibres Republic of Belarus Investigation on-going 26.5.99
Gas lighters Chinese Taipei, Vietnam,
Indonesia, ChinaCircumvention 21.6.99
Hard coal Russian Federation Import quotas for 3 years: 690,000, 724,000 &
760,000 tonnes30.07.98 and 7.1.99
Footwear China Additional customs fee, ranging from ECU1.5 to
ECU4 per pair6.8.98 and 15.1.99
Refractorary clay Ukraine Non-automatic registration – maximum import
licence of 250 tonnes23.11.98 and 10.9.99
Steel sheets All countries Investigation on-going 19.6.99
Synthetic fabrics Chinese Taipei, Korea,
Rep. ofImport quota on Chinese Taipei for 3 years: 9.8
mill, 10.4 & 11 mill cm3.  Korean investigation
on-goingChinese Taipei 29.4.99 and
14.9.99; Korea 29.4.99
Acrylic yarns Lithuania Investigation on-going 14.9.99
Ammonia sulphate Russian Federation Investigation on-going 27.9.99
Hot rolled steel
sheetsRussian Federation, Ukraine,
KazakstanInvestigation on-going 22.10.99
Source : Government of Poland.Poland WT/TPR/S/71
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(ix) Safeguard actions
55. Safeguard actions are permitted under Polish legislation (Law on the Safeguards Against an
Excessive Importation of Goods into the Polish Customs Territory of December 1997).  Poland
notified this legislation to the WTO in July 1998.  The legislation is to be consistent with the WTO
Agreement on Safeguard Measures (Article 3), and does not apply to excessive importation of goods
subject to restrictions under separate international agreements, or imported goods subject tocountervailing duties.  Safeguard measures, in the form of additional customs duty or import quota,
may be implemented where imports cause or threaten to cause serious injury to domestic producers.
19
The Ministry of Economy is responsible for initiating safeguard procedures, including the possibleimposition of provisional measures, subject to the safeguard provisions and those of the
Administrative Procedure Code.
56. Poland has used safeguard provisions under regional trading agreements to restrict
preferential imports.  For example, Poland im plemented temporary commercial defence measures
under the Europe Agreement against EU yoghurt imports from 1999.  The tariff preference was
withdrawn and the tariff raised from 9% to the MFN rate of 35%, before being reduced to 29%.
According to Polish authorities, this action followed  a substantial rise in the volume of subsidized
imports from the EU.  Safeguard proceedings were initiated in June 1999 against imports of coated
steel sheets.
57. Poland has also introduced specific safeguard legislation covering imports of textiles and
clothing (Law on the Protection Against an Exce ssive Importation of Certain Textile and Clothing
Products into the Polish Customs Territory of December 1997).  Poland has submitted its list of
textiles and clothing products, covering more than 16% of the quantity of imports in 1990, that are
included in the first and second integration into GATT 1994.  This list covers 25 six-digit items,mainly yarns, fibres, and certain garments, such as hats, ties, and babies' articles.  The Ministry of
Economy initiates such procedures to ascertain whether imports have caused or are threatening to
cause serious injury to domestic producers.  Three safeguard actions were initiated in 1999 affecting:
imports of textured polyester yarns from Turkey; synthetic fibres from the Republic of Korea and
Chinese Taipei; and certain acrylic yarns from Lithuania.
58. Poland reserved the right in the Uruguay Round to take transitional actions on agricultural
products tariffied in line with the WTO Agreement on Agriculture.  Safeguard actions in the form of a
variable levy are activated whenever the import price (or volume) falls below (or rises above)
predetermined trigger levels set annually by the Ministry of Agriculture and Rural Development.
Poland has taken such measures against imports on numerous occasions and has notified them to theWTO Committee of Agriculture.  In its latest notification, Poland indicated that it had applied
extensive price-based action on imports of poultry and pig meats as well as cut flowers from 17 June
1999; wheat or meslin flour, maize starch and ot her sugars from 6 November 1999; and on cane or
beet sugars from 17 November 1999.  Volume-based actions were implemented on imports of hop
cones from 6 November 1999 (WTO document G/AG/ N/POL/33, 2 March 2000).  Trigger levels are
set annually for a wide range of agricultural imports, especially meat, flour, starches, and sugar, and
imports that are monitored for possible safeguard action (Table III.9).
                                                          
19 Some other measures may be applied to imports from non-WTO members (Article 9).WT/TPR/S/71 Trade Policy Review
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Table III.9
Agricultural products subject to trigger levels and import monitoring for possible safeguard action, 1999
Product description Tariff line code
Meat of swine, fresh, chilled or frozen 0203 (14 tariff
lines)11.10.0, 12.11.0, 11.19.0, 19.11.0, 19.13.0, 19.15.0, 19.55.0, 21.10.0, 22.11.0,
22.19.0, 29.11.0, 29.13.0, 29.15.0, 29.55.0
Meat and edible offal of poultry 0207 (82 tariff lines) 11.10.0, 11.30.0, 11.90.0, 12.10.0, 12.90.0, 13.10.0, 13.20.0, 13.30.0, 13.40.0,
13.50.0, 13.60.0, 13.70.0, 13.99.0, 14.10.0, 14.20.0, 14.30.0, 14.40.0, 14.50.0,14.60.0, 14.70.0, 14.99.0, 24.10.0, 24.90.0, 25.10.0, 25.90.0, 26.10.0, 26.20.0,
26.30.0, 26.40.0, 26.50.0, 26.60.0, 26.70.0, 26.80.0, 26.99.0, 27.10.0, 27.20.0,
27.30.0, 27.40.0, 27.50.0, 27.60.0, 27.70.0, 27.80.0, 27.99.0, 32.11.0, 32.15.0,32.19.0, 32.51.0, 32.59.0, 32.90.0, 33.11.0, 33.19.0, 33.51.0, 33.59.0, 33.90.0,
35.11.0, 35.15.0, 35.21.0, 35.23.0, 35.25.0, 35.31.0, 35.41.0, 35.51.0, 35.53.0,
35.61.0, 35.63.0, 35.71.0, 35.79.0, 35.99.0, 36.11.0, 36.15.0, 36.21.0, 36.23.0,36.25.0, 36.31.0, 36.41.0, 36.51.0, 36.53.0, 36.61.0, 36.63.0, 36.71.0, 36.79.0,
36.85.0
Cut flowers, fresh or dried 0603 (4 tariff lines) 10.11.0, 10.25.0, 10.51.0, 10.65.0
Wheat or meslin flour1101 (3 tariff lines) 00.11.0, 00.15.0, 00.90.0
Starches and inulin 1108 (1 tariff line) 12.00.0
Cane or beet sugar 1701 (1 tariff line) 99.10.0
Other sugar 1702 (1 tariff line) 30.51.0
Source : Government of Poland.
(x) Standards and other technical requirements
(a) Standards, testing, and certification
59. Poland has developed an extensive system of standards and certification to protect consumer
interests; in the main they do not appear to be harmonized with international norms.  Many of these
product standards are mandatory and must be certified by accredited Polish testing agencies.  A Polish"B" safety certificate has been required since 1997 for imports and domestic production of many
goods.
20  Poland does not automatically accept the EU "CE"  mark or other international product
standards, nor self-certification by manufacturers, primarily because it has no product liability
legislation (although pending).  Non-acceptance of many international standards, certification, and
conformity testing procedures have been associated with long delays, involving expensive testingprocesses.
60. Harmonization of standards, certification, and testing procedures with the EU, including
greater reliance on voluntary standards, is now th e main objective of Polish standardization policy.
Under the European Conformity Assessment Agr eement of 1997, Poland agreed to introduce an EC-
compatible certification system.  Poland agreed, inter alia , to gradually align its regulations and
certification procedures with the EU; to remove from mandatory certification those products free from
certification in the EU; and to automatically provide a B safety certificate to EU products subject to
mandatory certification.  However, while the list of products requiring mandatory certification in
Poland was reduced from 1,400 industrial products to 700 in 1997, major delays have occurred in
implementing the Agreement.  Products covered by the B-mark requirement cover about one third ofall goods marketed in Poland.  They include wire rods, steel pipes and castings, motor vehicle
components, bicycles, personal computers, fertilizers, and shampoo.  The number of B certificates
issued increased from 8,594 in 1997 to 11,810 in 1998.
                                                          
20 Introduction of the B certificate had been postponed from 1995. Failure to obtain the B mark risks
fines amounting to 100% of the value of goods sold.Poland WT/TPR/S/71
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61. Compulsory testing is performed by bodies mandated by the government certification agency,
the Polish Centre for Testing and Certification (PCBC).  Formed in 1994 under the Act on Testing
and Certification of 1993, the PCBC is the national body responsible for the creation and supervision
of testing and certification policies.  Its main duties include organization and supervision of the testing
and certification system; the accreditation of testing laboratories and certification bodies; and carrying
out product testing and certification.  ISO rules on accreditation are applied.  As well as compulsorytesting, the PCBC performs a range of voluntary pr oduct testing and certification, such as certification
of the Q quality mark as well as ISO 9000 and 14000 certification.  By end-1998, there were 70
accredited certification bodies, up from 59 in 1997, and 232 certificates for testing laboratories had
been issued.
21
62. Poland's Standardization Law, effective from 1 January 1994, provides the foundation for
moving towards a system based on voluntary standards and for greater harmonization with EU and
international norms.  The Polish Committee for Standardization (PKN) sets Polish standards.22  Much
of its recent work has focussed on reviewing Polish standards.  There are currently 18,000 Polish
standards, of which about 75% comply with EU norms, and about 15% cover international standards
(ISO and IEC) not adopted by the EU.  The remaining 10% of standards are Polish-based.  Theobjective is to have at least 80% of Polish standards harmonized with EU norms by 2002.
23  Poland
will invoke EU norms in cases where there are differ ent EU and international standards.  Legislation
allowing type approval of vehicles entered into force on 1 July 1999.
63. Poland has established, and notified to the WTO, a number of bilateral mutual recognition
agreements concerning standards and conformity testing procedures between the PCBC and overseas
bodies.24  Partners to these agreements include bodies from Ukraine, China, Belarus, Germany, the
Czech Republic, the Russian Federation, Italy, and Switzerland.  Legislation was amended in July1999 to allow the importation of certain products from countries with which Poland has signed mutual
recognition agreements based on conformity statements issued by the foreign producer.
64. Certain imported foodstuffs must be inspect ed by the Agricultural and Food Quality
Inspection Agency to ensure that they are fit fo r human consumption (Law on State Standardization
Supervision of Food and Agricultural Products in Foreign Turnover of 1996).  Products covered are
listed in the Regulation of the Ministry of Agriculture of July 1999.
(b) Sanitary and phytosanitary arrangements
65. SPS standards in Poland are primarily the responsibility of the Ministry of Agriculture and
Food Economy (called the Ministry of Agriculture and Rural Development since late 1999).
Regulations governing phytosanitary measures include the Law on Protection of Crop Plants of 1995;and the 1996 Directives from the Ministry of Agriculture on the Control of Harmful Organisms and
on Principles for Granting the Authorization of Plant Protection Products to be Placed on the Polish
                                                          
21 EC (1999).
22 PKN participates in the UN/ECE Working Party on Technical Harmonization and Standardization
Policies.  It is a member of the International Organization for Standardization (ISO) and the InternationalElectrotechnical Commission (IEC), and an affiliate of  the European Committee for Standardization and the
European Committee for Electro technical Standardization.
23 Poland's standards and certification procedures are seen as providing several parallel conformity
assessment systems for different products, and requiring obligatory certification for considerably more products
than in the EU.  The Polish system is also reported to be slow, costly and administratively non-transparent (EC,1999).
24 Prior to the WTO, Poland was not a signatory to the Tokyo Round Agreement on Technical Barriers
to Trade.WT/TPR/S/71 Trade Policy Review
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Market.  Since 1996, a number of phytosanitary measures have been implemented, including systems
for plant and animal export certification and bord er control.  Imports of a number of weeds are
prohibited, and quarantine regulations on imported grains stipulating minimum weed contamination,
such as for ragweed, are claimed by exporters to be particularly stringent.
66. Plant protection regulations are administered by the State Plant Protection Inspection Service,
established in 1996.  It is responsible for phytosanitary inspection of imported plants and plantproducts as well as issuing phytosanitary certificates on exports.  Imports of a number of plants and
plant products are banned, including seed potatoes from the Netherlands, or require a phytosanitary
certificate issued from the relevant authority in the exporting country.  Phytosanitary permits are also
required to import live plants, fresh fruit and vegetables.  According to the authorities, these
regulations are in accordance with international standards, and do not discriminate against imports.
67. Poland also maintains phytosanitary restrictions on imports of animals and animal products
for health reasons.  Import permits, requiring a phytosanitary certificate from the exporting country,
are required for meat, dairy, semen, embryos, gelatine and live animals.  Poland introduced new
regulations on genetically modified food in November 1999.  Sale of such food requires permission
and an evaluation of risks for human health and the environment.  New milk-quality standards,implemented in January 2000, prohibit third-grade milk from being sold off-farm.  Processing plants
may only procure high quality milk that meets EU requirements.
68. Since 1992, Poland has signed bilateral agreements concerning phytosanitary matters with the
Russian Federation, Ukraine, Bulgaria, the Republics of Belarus and Lithuania, and the Slovak
Republic (1994); China and Turkey (1995); Morocco, Croatia, Slovenia, and Macedonia (1996);
Federal Republic of Yugoslavia and the Czech Republic (1997); and Brazil (1999).
69. In accordance with the provisions of the SPS Agreement, Poland has regularly submitted
notifications to the WTO on its SPS measures, for comment, prior to their entry into force.  The
Ministry of Agriculture and Rural Development is the national notification authority and enquiry
point.
(c) Marking, labelling, and packaging
70. Poland maintains regulations regarding labelling of food products and additives.  These are
harmonized with EU requirements, and according to  the authorities, are based on the General Codex
Standard on Food Labelling.  From November  1999, products containing genetically modified
organisms must be labelled accordingly.
(xi) Government procurement
71. Government procurement in Poland is governed by the Public Procurement Act of 1994 and
overseen by the centralized Office of Public Procurement.  The independent Office is not a central-
purchasing agency, but has a policy-making and coordinating role.  It is responsible for ensuring that
the public procurement provisions are implemented.  The Office publishes unlimited tenders in the
official Public Procurement Bulletin  and issues administrative decisions on when, for example, other
than unlimited tenders can be used.  Government procurement has been reviewed in recent years tobroaden its scope and transparency in line with EU arrangements.  Poland has had observer status in
the WTO's Committee on Government Procurement since September 1997, and is considering joining
the Government Procurement Agreement.
72. The primary procedure for conducting public procurement is by unlimited tender, whereby
procurement is open to all suppliers.  This method is obligatory for all contracts above ECU 30,000.Poland WT/TPR/S/71
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All such tenders are to be published by the Office in the Public Procurement Bulletin .  Domestic and
foreign suppliers can participate in procurement letting on an equal basis (Article 18).  However,
contracts below ECU 30,000 (increased from ECU 20,000 in 1997) may be let by limited tender,
whereby the procuring entity restricts procurement to invited contractors, who may be only domestic
suppliers and/or foreign contractors with branches in Poland.  The procuring entity is obliged to treat
all contractors for procurement equally and to ensure fair competition in the selection process.
73. Other forms of tendering are permitted, but only under special circumstances.  These include
two-stage tendering whereby suppliers are requested to submit initial specifications and technical
details of the contract without specifying price; certain suppliers are subsequently selected to
participate in a limited tender.  Negotiations can  be used in urgent situations to enable the
procurement entity to negotiate a contract with at least two suppliers to ensure competition.  Requests
for quotations can be used to procure readily available goods or services with established quality
standards, and must be obtained from a minimum of  four suppliers.  Single-source procurement using
only one supplier, may be used for example, research contracts or where the value of the contract is
ECU 3,000 or below.  The use of single-sourced tendering on contracts above ECU 20,000, or other
than unlimited tenders on contracts above ECU 200,000, require the Office's consent.  Moreover,procurement deadlines specified in the legislation may only be shortened in special circumstances,
and then only with the prior approval from the Office on contracts worth above ECU 50,000.
74. Domestic price preferences apply to procurement contracts.  The rate of preference for
domestic suppliers of goods, services, and construction activities is 20% – the tender price is lowered
by this percentage in the appraisal.  However, to be eligible for domestic preferences, suppliers must
source at least 50% of raw materials locally.  In addition, for construction procurement, domestic
firms must account for at least half of the procurement contract.  Where construction contracts exceedECU 200,000, procuring entities may, with the Office's approval, require that domestic suppliers
using local materials complete the entire contract.  The Office can approve the waiver of domestic
preferences or reduce the local-content requirements where there is a shortage of domestic raw
materials or insufficient national suppliers to ensure competition.  In 1998, 279 requests for domestic
preference waiver were received by the Office of Government Procurement; over 80% of theserequests were approved.
75. Appeal provisions apply on procurement c ontracts worth over ECU 30,000.  Suppliers may
object to a decision and request that it be reviewed by the procurement entity; the review must be
completed within 7 days.  This objection must be lodged before the contract has been signed.  Appeals
may then be made to the Public Procurement Office, and subsequently to the courts under the CivilProcedure Code.  The Office must make its decision within 14 days.  In 1998, the Office received
1,195 appeals, up from 1,005 cases in 1997, of which over half were dismissed.
76. In 1998, some 94% of contracts over ECU 30,000 were let by unlimited tender, at a total
value of over Zl 17.5 billion, up from Zl 13.6 billion in 1997.  Legislative changes were made in
September 1997 to restrict the use of single-source tenders:  the minimum threshold value for suchtenders, requiring the Office's permission, was lowered from ECU 200,000 to ECU 20,000.  Some
two thirds of government procurement in 1998 was for construction;  one fifth for goods; and over
one tenth for services.  On average, around five bids were received for each tender let in 1998.
Moreover, over two thirds of contracts let by unlimited tender went to the cheapest bid, and for almost
half of the other cases, the winning bid was less than 10% more expensive than the lowest bid.  Apart
from price, the most common criteria for letting contracts was the experience and technical
capabilities of the bidder; the bidder's financial reliability; and ability to meet the deadline for contractcompletion.  No information was available on the share of government procurement let to foreign
suppliers.WT/TPR/S/71 Trade Policy Review
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77. The Public Procurement Office investigates the public procurement of entities to ensure that
the proper procedures are followed.  In 1998, it initiated 292 investigative proceedings, and found
legal irregularities in 10% of cases.  The main violations detected were applying different criteria to
award the contract than specified in the tender; fai ling to ensure equal treatment of all bidders as well
as fair competition; and failure to use unlimited tenders.  Since November 1997, government
procurement entities have also been subject to inspection by the Supreme Audit Chamber to ensure
that public funds are managed properly.  An audit study of procurement entities in 1998 uncovered
numerous cases where public procurement was awarded through single-source tendering without
meeting the statutory requirements, and that several smaller procurement contracts were sometimes
used to avoid applying the threshold procedures required by law.25
78. Defence procurement is not, in principle, excluded from government procurement legislation.
However, such procurement is subject to the 1996 Regulation of the Council of Ministers Regarding
Public Procurement in the Interests of National Security, State Secrets and Natural Disasters.
(xii) Local-content requirements
79. According to the authorities, Poland has no legislation on local content.  Polish industrial
policy objectives are to encourage foreign firms to establish production in Poland.  For example,licences for the duty-free importation of motor vehicles and their components for domestic assembly
stipulate that the importer must assemble a minimum volume of vehicles, and the expectation is that
the importer will eventually move to the assembly of imported completely-knocked-down (CKD)
packs.  Prior to late 1996, regulations required the company to have assets in Poland worth a
minimum of ECU 10 million, to produce annually at least 8,000 cars, and to employ a minimum of
1,000 workers.  Many of the EU car producers established assembly operations in Poland under these
arrangements.  In January 1998, the regulations were amended to discouraging new car assemblers inPoland using imported kits.
80. The larger income tax rebate, which was provided to businesses from 1994, on the
compulsory introduction of domestic automatic tax-recording cash registers when purchasing
domestically produced machines (65% instead of 50% of the purchase price), was eliminated from
1997.
26  The tax rebate of 50% now applies to all cash registers.
(xiii) Measures implemented in exporting countries
81. The Government has no agreements with foreign governments or enterprises designed to
influence the quantity or value of goods and services exported to Poland.  Polish law prohibits Poland
from being a party to any such agreements or to  participate in any negotiations with overseas
governments to restrict exports to Poland that would contravene its international treaties.  Accordingto the authorities, no Polish firm is a party to any such VER arrangement.
(xiv) Other measures
82. Poland maintains no surveillance measures on imports.  Except for the previous 6% import
surcharge, which was introduced in 1993 and gradually reduced until its elimination as from 1997,
Poland has not used the WTO balance-of-payments provisions to impose import restrictions.
                                                          
25 Office of Public Procurement (1999).
26 This was notified by Poland to the WTO as a trade-related investment measure in September 1995.
To count as a domestically produced machine, the value of assembly parts and components of foreign origincould not exceed 60% of the "technical manufacturing cost" of the register (WTO documentG/TRIMS/N/1/POL/1, 6 October 1995).Poland WT/TPR/S/71
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(3) MEASURES DIRECTLY AFFECTING EXPORTS
(i) Duties and taxes
83. No export taxes, charges or other fees are levied by Poland.  Exports of goods and services
are zero-rated for VAT purposes.  Exporters can claim a tax credit for VAT paid on inputs.  However,
no rebate of excise duties paid on inputs, such as petroleum products, is available to exporters.
(ii) Export prohibitions, quotas, and licensing
84. Export prohibitions and licensing restrictions are maintained by Poland on a number of
products, mainly aimed at preventing domestic shorta ges, such as during drought.  Exports of live
ducks, geese and turkeys, wheat and meslin, rye, barley, and oats are banned.
85. Export quotas apply to hides and skins as well as to non-ferrous scrap (replacing a prohibition
in 1996), including copper, aluminium, nickel, lead, zinc, and tin.  In 1999, the scrap quota wasincreased substantially, to 20,000 tonnes.  The export quota on ferrous scrap was removed in 1999.
86. From April to end-1999, Poland implemented a system of double checking of certain steel
products (H-beams and profiles of non-alloy steel) expo rted to the EU.  According to the authorities,
such automatic registration procedures and licensing, by the Ministry of Economy, were implemented
to counteract the threat of anti-dumping proceedings against Poland.
87. According to the authorities, Poland is not a party to any voluntary arrangements restricting
exports.  However, a number of Polish firms have agreed to price and export-volume undertakings,
such as on exports of wooden pallets, as part of EU anti-dumping action against Polish exports.
88. Exports of certain foodstuffs must be insp ected by the Agricultural and Food Quality
Inspection Agency to ensure that they are fit fo r human consumption (Law on State Standardization
Supervision of Food and Agricultural Products in Foreign Turnover of 1996).  Products covered are
listed in the Regulation of the Minister of Agriculture of July 1999.
(iii) Export subsidies
89. Poland maintains export subsidies on certain agricultural products, especially sugar and
potato starch.  Export subsidies were also paid on pig carcasses in 1999.  Poland notified to the WTO
direct export subsidies of US$13.2 million and US$0.7 million on sugar and potato starch,
respectively, in 1998 and of US$8.8 million on sugar in 1997.
27  It had made value and volume
commitments during the Uruguay Round binding direct export subsidies in 1998 to a total of
US$550 million, including several other commodities, such as animal products, meat, fruit and
vegetables, and rape and rape oil.28
                                                          
27 These payments were well below Poland's committed annual amounts made in the Uruguay Round
of US$41 million and US$38 million for 1997 and 1998, respectively, on sugar, and US$8.2 million on potato
starch in 1998.  However, its annual quantity commitments on sugar were met in each of the years 1996, 1997and 1998 by carrying over unused quantities from 1995.  At the end of 1998, Poland had accumulated unused
quantities of 26,440 tonnes.
28 Specific products along with the value of the Uruguay Round commitments made for 1998 are:
animal husbandry products (US$80.1 million); proce ssed meats (US$101.9 million); meat, including poultry
(US$56.4 million); powdered milk (US$6.6 million); casein (US$9.7 million); molasses (US$12.1 million);
spirit products (US$24.7 million); fresh fruit and vegetabl es (US$76.3 million); processed fruit and vegetablesWT/TPR/S/71 Trade Policy Review
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(iv) Duty and tax concessions
90. Poland has a duty drawback scheme and a duty suspension scheme that benefit exporters
processing imported inputs (Customs Code 1997).  The suspension scheme enables inputs that are
processed into exports but not released on the domestic market to be imported without payment of
duty.  The drawback system enables duties paid on imported inputs to be refunded to exporters upon
exportation.  Certain time limits apply on the export of the goods.
91. Exporters also benefit from the provision of an investment-related tax rebate that
preferentially taxes export income.  While other inve stors also benefit from the tax rebates, firms with
more than half of their yearly revenue from exports , or with export receipts exceeding ECU 8 million
(reduced from ECU 10 million in 1995), may deduct for income tax purposes up to 50% of the value
of exports.  Information is not available on the value of this tax concession to exporters.  However, thetotal amount of investment allowances paid in 1998 was Zl 1.5 billion, down from Zl 1.9 billion in
1997.
(v) Export insurance and guarantees
92. Export insurance has been provided in Poland since 1994 by the government-owned Export
Credit Insurance Corporation (KUKE).
29  It provides exporters with export credit insurance against
short-term commercial risks (of up to 1 year).  This includes cover against bankruptcy, insolvency,
and protracted default in payment by overseas buyers.  It also provides export contract insurance
guaranteed by the Government against political or catastrophic risks (natural disasters) or the
protracted default by a state or public debtor.  The coverage of export risks is provided through a
surety granted by the Minister of Finance on bank loans negotiated by KUKE, and by direct loans
granted from the government budget.  Products covered by insurance must contain a minimum Polish
content of 50%.
93. In recent years, KUKE has not had to resort to state loans or state guarantees on bank credits
but has relied on its own resources.  Each year the Government sets limits on the amount of export
contract insurance that KUKE can provide.  These limits increased from Zl 2.5 billion in 1994 to
Zl 3.4 billion in 1997 and 1998.  However, these limits have not been achieved by KUKE in recent
years.  In 1998, 46%, or some Zl 1.6 billion of the limit on export contract insurance was realized;  in1997, the share was 33%.
94. In 1998, export contract insurance for short-term commercial risks and insurance guaranteed
by the state covered exports to the value of US$531.8 million, up from US$371.9 million in 1997.
Total premiums collected by KUKE amounted to US$5 million and US$2.3 million, respectively.
Legislation is to be introduced to broaden KUKE's activities to cover investment projects undertakenabroad by Polish firms.
95. Poland became a member of the OECD Working Party on Export Credits and Credit
Guarantee Group in April 1997, and an observer, in 1998, of OECD meetings on Arrangements on
Guidelines for Officially Supported Export Credits.
                                                                                                                                                                                    
(US$125.2 million); sowing materials (US$7.4 million); rape oil (US$14.5 million); rape (US$17.8 million);
and potatoes (US$16.8 million).
29 Act of 1994 on Export Contract Insurance Guaranteed by the State Treasury.Poland WT/TPR/S/71
Page 63
(vi) Export promotion and finance
96. Export promotion is a central feature of Poland's trade policies.  Export promotion
encompasses official support for Polish enterprises pa rticipating in international fairs and exhibitions;
overseas promotion through activities of Polish embassies; the development of export information
systems, including use of the Internet, to provide exporters with access to information on exports,
foreign markets and potential barriers; the "trade mark for trade mark" programme, aimed at re-establishing the role and importance of intern ationally recognized Polish trade marks; and
implementing legislation to protect Polish intellectual property.
97. The Export Promotion Council was established in December 1998 to more effectively
coordinate such promotional activities.  It is an advisory body to the Minister of Economy on export
competitiveness and promotion, and encompasses government as well as members of several privateorganizations.  Its responsibilities include defining rules and guidelines on export promotion; advising
on the promotional programme; and recommending the level of state spending on export promotion.
98. The Government provides export finance mainly in the form of subsidized loans and state
loan guarantees to exporters.  The state subsidizes the interest charged by banks on export credits
(Law of 1995 on Subsidies to the Interest from Some  Bank Credits).  Banks are compensated for the
difference between the capped rate and their own interest costs.  Exports of goods and services are
eligible for such subsidies on all contracts exceeding EC U0.5 million, or if the value of the bank
credit exceeds ECU 0.1 million.
30  Export contracts must be insured with KUKE to receive the credit
subsidy.  Subsidized bank credits are not widely used by exporters;  in 1998, export credits covered
only 3% of Polish exports.
99. State guarantees are available on bank credit used in projects leading to exports of goods and
services representing above 20% of total sales value, or on projects exceeding ECU 10 million forexporting manufactured investment goods.  Guarantees are approved by the Minister of Finance (or
the Council of Ministers on large loans), and are usually limited to 60% of the loan (plus interest).
31
(vii) Free-trade and export-processing zones
100. Eight foreign trade zones or "free customs areas" exist in Poland.  Imported goods are exempt
from duties, quotas, and permits, and goods sold into Poland receive special custom preferenceswhere Polish content exceeds 50%.  Foreign entities may operate in such zones.  Most zones are
involved mainly in storage and packaging.
101. Special economic zones were also introduced in 1994 to accelerate the economic
development of selected regions;  there are currently 15 designated zones.  Activities in the zone
require a permit from the Minister of Industry.  This is often made conditional on a number of factors,such as meeting minimum investment or employment levels.  Fiscal concessions available in the
                                                          
30 These limits on access to subsidized bank credit do not apply if the exports cover turnkey facilities;
vehicles, aircraft, floating vessels, and transportation facilities; machines, appliances, and electrical equipment;
instruments, tools, and measurement apparatus; and construction/assembly and technical services (Regulation ofthe Council of Ministers on the Detailed Principles, Scope and Procedures for Granting Subsidies to the Interest
from Bank Credits Allocated to Financing Exports Contracts, of 1995).
31 The Council of Ministers may increase the guarantee to cover 100% of the loan and interest
(Regulation by the Council of Ministers on the Conditions and Procedures for Granting Guarantees andGuaranteeing the Repayment of Bank Credits from  State Budget Resources and Charges Resulting from
Guarantees and Warrantees Granted, of 1995).WT/TPR/S/71 Trade Policy Review
Page 64
zones include full and partial income tax exemptions .  According to authorities, these zones do not
provide special preferences for exporters.32  Most zones have attracted little activity.
(viii) Other measures
102. According to the authorities, no export cartels exist in Poland.
103. Poland's exports benefit from GSP treatment extended by OECD countries.
(4) INTERNAL MEASURES
(i) Adjustment and regional assistance
104. Poland provides financial assistance designed to facilitate industrial restructuring.
Concessional loans and grants are provided to help firms restructure or liquidating firms to leave the
industry under schemes financed by the World Bank.  This provides "one off" support to mainly state-
owned enterprises.  In 1998, total payments amounted to Zl 53.6 million, down from Zl 75.5 millionin 1997;  well over three quarters represented loan s.  At end-1998, approximately 86% of funds had
been used.  The main industries benefiting from the scheme have been pulp and paper, chemicals,
metallurgy, machinery, and transport.
105. Specific industrial restructuring schemes, including the provision of state loan guarantees,
loans, and grants, operate for the iron and steel and mining industries (Chapter IV).  Loan guaranteesamounting to Zl 60 million and Zl 57 million, as well as loans and grants of Zl 12 million and
Zl 0.7 million, respectively, were made in 1997 to facilitate iron and steel restructuring.
33  In 1998,
direct government outlays, including grants, totalling approximately Zl 1billion, were made available
to the hard-coal mining industry, compared with Zl  700 million in 1997.  Mining of salt, sulphur, and
other minerals also received assistance in the form of grants totalling Zl 17.9 million in 1998 and
Zl 19.9 million in 1997.
106. The government-owned Industrial Development Agency (IDA) also runs other loan
programmes to assist firms to restructure their activities and financial affairs, using funds from a
variety of sources, including foreign aid.  It runs programmes to restructure the leather and footwear,
and iron and steel industries.  In addition, the Agency contributes equity capital to restructuring firms,
often involving debt-for-equity conversions.  In 1998, the IDA had equity holdings in 85 companies
valued at Zl 228.6 million.
107. Regional development has been promoted by programmes to assist firms locating in poorer
areas with high unemployment.  Apart from the fiscal benefits available to firms in specific economic
zones, tax incentives, including investment deductions, also assist firms to invest and employ labour
in designated areas that suffer from high structural unemployment.  Firms receive increased benefits
depending upon their employment levels.  Ceiling thresholds cap the amount of tax relief in any year;these limits have been phased down, and from 2000 have been set at 25% of taxable income for
investment deductions and 10% for other tax abatement measures.  In 1998, the value of such tax
relief to regional centres amounted to Zl 10.1 million, compared with Zl 14.8 million in 1997.
                                                          
32 WTO document G/SCM/N/38/POL, 12 May 1999.
33 Notifications by Poland contained in WTO documents G/SCM/N/48/POL, 3 February 2000, and
G/SCM/N/38/POL, 12 May 1999.Poland WT/TPR/S/71
Page 65
(ii) State-owned enterprises and privatization
108. Privatization of state-owned enterprises (SOEs) has been a key feature of Poland's transition
to a market economy.  The Government recognizes that private ownership of resources will not only
improve the economy's efficiency and competitiveness, but contribute significantly to rectifying the
country's public finances.  State financing of major losses of SOEs has traditionally provided direct
assistance to significant segments of Polish industry, and has been a heavy drain on public finances.A multi-track privatization programme was commenced  in 1990 with the passing of the Privatization
Law and the formation of the Ministry of Privatization.  A mass privatization programme began in
1995 with the establishment of 15 National Investment Funds.
109. A substantial share of the Polish economy has been Privatized.  In 1998, some two thirds of
the economy's total value added and GDP were generated by the private sector, which also accountedfor two thirds of all jobs.  The number of SOEs had fallen from 8,454 in 1990 to around 3,000 at end-
1998.  Some 1,580 state-owned enterprises have been liquidated as part of the privatization process.
Privatization of the food processing sector, is currently 95%, compared with 5% in 1990.
Nevertheless, the remaining SOEs have an estimated book value equivalent to one third of GDP;
about 400 SOEs account for almost all food processing production.
110. Privatization has accelerated since 1998 following implementation of new regulations.  The
Government's privatization strategy is to divest 70% of remaining state assets by 2001.  Guidelines
were adopted by the Council of Ministers to accelerate privatization in 1999 to cover 70 enterprises,
including in particular the banking and telecommunication sectors.  Privatization receipts increased to
Zl 7.1 billion in 1998, from Zl 6.6 billion in 1997, and were expected to reach Zl 15 billion in 1999.
Plans included involvement of major foreign participants in key utility and other sectors.  By
October 1999, a large number of privatizations had been realized, including sales of shares to foreigninvestors in Pekao Bank (Zl 4.2 billion), Bank Zachodni (Zl 2.3 billion) and Patnow-Adomow-Konin
power station (Zl 0.4 billion).
34  Other priority areas for privatization include segments of PZU
Insurer, Polish Telecom and Polish (LOT) Airlines.
111. Despite major successes in privatization, many of the remaining SOEs are in difficult sectors,
such as defence, hard-coal mining, steel, chemicals, shipbuilding, electricity generation, sugar, liquor,and railway transport. Thus, SOEs remain a major, albeit declining, financial and efficiency drain on
the economy.
(iii) Competition policy
112. Poland introduced legislation to counteracting monopolistic practices in 1990 when the Anti-
monopoly Office was formed.  Since then, there have been numerous amendments to Poland'scompetition policy legislation, including the transformation of the Anti-monopoly Office into the
Office for Competition and Consumer Protection (OCCP) in 1996.  On 1 January 1999, the initial
1990 legislation (with amendments) was renamed the Act on Counteracting Monopolistic Practices
and Protection of Consumer Interests.
35  Many of the changes were directed at harmonizing Poland's
competition policy with the EU, in cluding strengthening the OCCP's role in consumer protection.  A
new law on competition and consumer protection, with implementing legislation, is to be introduced
in 2000.  It is aimed at achieving full conformity with the EU.
113. The aim of the legislation is threefold: to ensure the development of competition; to protect
economic entities from monopolistic practices; and to protect consumer interests.  The legislation
                                                          
34 OECD (2000).
35 Other relevant legislation includes the Act on Combating Unfair Competition of 1993.WT/TPR/S/71 Trade Policy Review
Page 66
prohibits firms from engaging in monopolistic practices that have an effect in Poland, and thus can
apply to foreign suppliers exporting to the Polish market.  Such practices are defined to include price
or volume fixing agreements between firms, as well as a firm abusing its dominant market position.
Dominance is presumed to occur at market shares exceeding 40%.  Monopolistic practices, including
abuse of a dominant market position, are prohibited un less exempted by the OCCP.  This requires the
firm in question to prove that the arrangements are necessary to conduct business and do notsignificantly restrain competition.  The OCCP mainta ins a public register of firms that have a market
share exceeding 80%.
114. Firms merging must notify the OCCP if certain minimum threshold conditions based on the
sales value are met.  Threshold limits were relaxed (raised) in 1998.  The OCCP is likely to prohibit a
merger if it would result in the creation or strengthening of a dominant market position, which ispresumed to apply at a market share exceeding 40%.  However, a dominant position does not
automatically rule out the merger.  Although technically the legislation does not allow an "efficiency
defence", the OCCP may consider the impact of the merger on economic efficiency.  The OCCP must
complete the investigation and announce its decision within two months from the date of notification.
More than 60% of all cases handled by the OCCP concern mergers;  most are assessed favourably.
115. Decisions by the OCCP can be appealed to the anti-monopoly court, which deals exclusively
with anti-monopoly cases.  The court may re-examine factual as well as legal matters.  Compliance
with desist orders issued by the OCCP are enforc ed by pecuniary sanctions.  On firms, fines can be
imposed of 1% of income for mergers and of up to 10% in other cases;  on individuals fines may be
up to ten times their average salary.
(iv) Production assistance, and tax and credit concessions
116. Activities in many sectors benefit from a range of investment-related tax concessions, as well
as subsidized credit and loan guarantees.  Loan guarantees, for example, are provided on investment
loans extended for the purposes of maintaining ex isting infrastructure; for environmental protection;
to privatized state-owned enterprises; and to introduce new technology resulting from research and
development.  Such guarantees can be granted on domestic and international borrowings.  The total
value of state loans guaranteed in 1998 was Zl 390.9 million, compared with Zl 1.2 billion in 1997.
36
Losses paid by the State on default of guaranteed loans were Zl 131.1 million in 1998, and
Zl 197.2 million in 1997.  The main sectors to benefit from these arrangements in recent years have
been iron and steel, transport, food and agriculture, energy, construction, and pharmaceuticals.
117. Loan guarantees and credit warrants are also extended to small and medium-sized business
enterprises through a Loan Guarantee Fund established by the Government in 1994 at the BankGospodarstwa Krajowego, the scheme's administrator.  In 1997, the Fund's scope was broadened into
the National Loan Guarantee Fund.  The guarantee is available on any loan, up to ECU 1.5 million,
for investment or purchase of material inputs.  The guarantee can be up to 70% of the loan (excluding
interest).  In 1998, 186 loan guarantees were made totalling Zl 71.4 million.
118. Under certain social and economic conditions, the Minister of Finance may partially or fully
absolve taxpayers, both individuals and companies, from payment of taxes (Tax Code of 1997).
According to Poland's notification to the WTO, the value of taxes abolished, including overdue taxes,
amounted to Zl 273.8 million in 1998.  Other investment-related tax relief provided to companies in
1998 amounted to Zl 1.5 billion.
                                                          
36 WTO documents G/SCM/N/38/POL, 12 May 1999, and G/SCM/N/48/Pol, 3 February 2000.Poland WT/TPR/S/71
Page 67
119. The banking sector has also received grants, loans, and tax incentives to encourage
cooperative banks to restructure and to establish regional banks.  The scheme is administered jointly
by the Ministry of Finance and the National Bank of Poland.
120. The agriculture sector receives subsidized credit to assist farmers to purchase land and invest
in equipment or new production methods.  The scheme is run by the Ministry of Finance.  Grants
award the banks the difference between the actual interest rate and the subsidized rate paid byborrowers.  In 1998, the value of the interest rate subsidy was Zl 0.5 million.  Another scheme, run
jointly by the Ministry of Agriculture and Rural Development and the Agency for Agriculture
Restructuring and Modernization, subsidizes farmers' interest payments on loans used to purchase
inputs, such as fertilizers, fuels, and periodic storage of surplus produce, as well as on investment
loans.  In 1998, the scheme cost a total of Zl 1.1 billion.  Farmers also received grants of Zl 0.3millionin 1998 to assist with animal and plant breeding.  Poland notified to the WTO interest rate
concessions of Zl 0.5 million as part of its Aggregate Measure of Support (AMS) in 1998.
37
121. Agricultural production also benefits from the free or subsidized provision of services and
other national and municipal schemes, aimed at assisting rural development.  These have been
notified by Poland to the WTO as "green box" measures exempt from its agricultural reductioncommitments.  Poland estimated the total value of these measures at Zl 3 billion in 1997.  The main
items covered were modernization of rural infrastructure and environment protection (Zl 1.1 billion);
farmer extension and advisory services (Zl 0.8 billion); research (Zl 0.2 billion); and natural disaster
relief (Zl 0.4 billion).  Farmers also received subsidized hybrid and high-quality seeds and breeding
animals, estimated to cost Zl 0.1 million in 1998.
38
122. In addition, a deficiency payment programme was introduced for wheat and rye in 1999 to
support farm income.   A scheme to assist farmers engaging in organic farming was also introduced.
Payments range from US$13 per hectare for organically cultivated meadows to US$63 per hectare for
organically managed orchards.
123. Production subsidies continue to be paid to producers of calcium fertilizers.  Fertilizer
manufacturers are paid subsidies based on the proportion of calcium and magnesium oxide used.  In
1998, the subsidy was paid directly to farmers in some regions.  The cost of the subsidy in 1998 wasZl 0.1 million.  This subsidy is intended to assist farmers by lowering fertilizer prices.  However, as
the subsidy is not paid on imported fertilizers, there  is little competitive pressure for fertilizer
manufacturers to pass on the full benefits of the subsidy to farmers in the form of reduced prices.
(v) Pricing and marketing arrangements
124. Since the reform programme began in 1990, most price controls have been removed.  Prices
are generally set in the market place.  However, the prices of some products and services remain
controlled.  These include energy, including gas, public transport, rents, pharmaceuticals and spirits.
125. Pricing and marketing arrangements are mainly confined to the agriculture sector.  Supply
control measures and price support programmes assist selected agricultural products, especially
wheat, rye, milk, and pigmeat, and occasionally butter and honey (Chapter IV).  The AgriculturalMarket Agency intervenes and purchases products to support set minimum prices.  A production
quota has covered sugar since 1994.  According to Poland's WTO notifications on domestic support,
market price support totalled Zl 236 million in 1998, mainly for wheat, but also for rye and honey.
Poland notified a total Aggregate Measure of Support (AMS) for agriculture in 1998 of Zl 1.1 billion.
                                                          
37 WTO document G/AG/N/POL/26, of 6 September 1999.
38 WTO document G/AG/N/POL/26, of 6 September 1999.WT/TPR/S/71 Trade Policy Review
Page 68
(vi) Protection of intellectual property
126. Poland is a signatory to most international agreements protecting intellectual property, and is
a member of the World Intellectual Property Organization (WIPO) (Table III.10).39  During the 1990s,
Poland introduced various legislation aimed at protecting intellectual property rights.  Poland initially
signed a bilateral agreement with the United States – the Business and Economic Relations
Agreement – in 1990 to provide adequate and effective enforcement of intellectual property rights.Because of U.S. concerns over the implementation of these arrangements, Poland was placed on the
US "301 Watch List" until 1998.
127. Poland was committed to implementing the TRIPS Agreement by early 2000 at the latest.
40
New legislation on industrial property protection al ong with amendments to copyright laws were to be
introduced from 1 January 2000, aimed at meeting these multilateral commitments.  Moreover, therevised legislation was aimed at harmonizing remaining differences with EU requirements for
accession.  According to the EU, prior to these changes Poland had achieved a moderate level of
compliance in intellectual property, but needed to make serious efforts to significantly improve the
protection of intellectual, industrial and commerci al property rights to match the EU, including
improvements in enforceability.
41  Changes were needed particularly in copyright legislation and
patent protection.  Poland has been invited to accede to the European Patent Convention, from July
2002.  It has had observer status in the European Patent Organization since 1997.
128. Foreign applicants for patents must be represented by a patent agent domiciled in Poland.
Key features of Poland's intellectual property protection are summarized in Table III.11.  In 1998,
2,633 patents were granted.  At end-1998, there were 13,589 patents in force.
Table III.10
Membership of international agreements, conventions and treaties on intellectual property protection, 1999
Title Date of Poland's membership
Convention Establishing the World Intellectual Property Organization (WIPO
Convention of 1967)March 1975
Paris Convention for the Protection of Industrial Property
- Paris Convention 1883 November 1919
- Stockholm Act 1967 March 1975
Patent Co-operation Treaty (PCT 1970) December 1990
Budapest Treaty on the International Recognition of the Deposit of Micro-
organisms for the Purposes of Patent Procedures (Budapest Treaty 1977)September 1993
International Convention for the Protection of New Variety of Plants
(UPOV)(Geneva Act 1978)November 1989
Madrid Agreement Concerning the International registration of marks
- Madrid Agreement – Marks 1891 March 1991
- Stockholm Act 1967 March 1991
Table III.10 (cont'd)
                                                          
39 Poland is not, however, a signatory to two new WIPO treaties: the Copyright Treaty and the
Performances and Phonograms Treaty.
40 As a centrally planned economy undergoing transition to a market economy and revising its
intellectual property system, Poland was entitled to the same transitional arrangements as developing countries,
i.e. a four-year transitional period until 2000.  However,  these transitional arrangements did not extend to the
implementation of national treatment and most-favoured-nation treatment.  The WTO Council for TRIPSreviewed Poland's intellectual property legislation and enforcement in November 1997 (WTO documentIP/Q4/POL/1).
41 EC (1999).Poland WT/TPR/S/71
Page 69
Title Date of Poland's membership
Madrid Agreement for the Repression of False or Deceptive Indications of Source
of Goods
- Indications of Source 1891 December 1928
- The Hague Act 1925 December 1928
Bern Convention for the Protection of Literary and Artistic Works
- Bern Convention 1886 January 1920
- Rome Act 1928 November 1935
- Paris Act 1971 Articles 22 to 38:  August 1990; Articles 1 to 21:
October 1994
Universal Copyright Convention
- Geneva Act 1952 March 1977
- Paris Act 1971 March 1977
Rome Convention for the Protection of Performers, Producers of Phonograms and
Broadcasting Organizations1997
Protocol Relating to Madrid Agreement Concerning International Registration of
MarksMarch 1997
Nice Agreement Concerning International Classification of Goods and Services for
the Purpose of Registration of MarksMarch 1997
Vienna Agreement establishing an International Protection of Figurative Elements
of MarksMarch 1997
Strasbourg Agreement Concerning the International Patent Classification December 1997
Nairobi Agreement on the Protection of the Olympic Symbol November 1996
Source : Government of Poland.
(a) Industrial property
Patents129. Patent legislation was initially contained in the 1972 Law on Inventive Activities.
42  Patents
are processed by the Polish Patent Office.  They are valid for 20 years from the date of filing of the
application.  Patents are granted on the basis of novelty, non-obviousness, technical character and
applicability.  A patent holder must not abuse his rights by, for example, engaging in prohibited
monopolistic practices, in which case the Office may issue compulsory licences, but only after thepatent has been issued for three years.
43  This has happened in only a few cases.  The Government
may, in some cases, use patents but this has not occurred to date;  a number of state-owned enterprises
have used them, for example, in pharmaceuticals.
                                                          
42 This law was amended in April 1993.  Also relevant is the Law on the Patent Office of 1962, as
amended in April 1993.
43 Article 3(3) of the Law on Counteracting Monopolistic Practices may also be relevant.WT/TPR/S/71 Trade Policy Review
Page 70
Table III.11
Summary of intellectual property protection in Poland, 1999
Form Main legislation Coverage Duration Sanctions
Patents Law on the Inventive
Activity of 1972Any invention that is a new solution
of a technical character and capable
of practical application20 years from date of
filingImprisonment for from 3 to
12 months and fine
Copyright
and related
rightsLaw on Copyright and
Neighbouring Rights of
1994Any and all manifestations of
creative activity of an individual
nature established in any form
irrespective of destination or
manner of expressionLife of author plus
50 yearsImprisonment of up to 3
years and fine
Trade marks Law on Trademarks of
1985Words, designs, ornaments, colours,
three-dimensional forms, melodies,
acoustic signals10 years from the
filing, renewable for
periods of 10 yearsImprisonment of up to
1 year and fine
IndustrialdesignsOrder of the Council of
Ministers Covering the
Protection of Designs
of 1963Designs of forms, surface, lines or
colours, etc. of an industrial
product, which conveys an aesthetic
effect5 years, renewable for
an additional 5 years…
Layout
designs of
integrated
circuitsLaw on the Protection
of Topographies of
Integrated Circuits of
1992; Ordinance on theProtection of
Topographies of
Integrated Circuits of1993Any original solution consisting of
three-dimensional arrangement of
the elements (at least one active
element) and of all or someinterconnections in an integrated
circuit10 years from filing or
from when first
commercially
exploited, whicheverterm expires earlierImprisonment of up to
1 year and fine
… Not available.
Note: Based on legislation before the changes due to have commenced in 2000.
Source : Government of Poland
130. Registered models, utility models and ornamental designs can be patented for five years, and
be extended for another five years.  Layout designs (topographies) of integrated circuits are protected
for ten years.  All patent holders have the right to license, by contract, other persons to use this right.According to Polish authorities, the new Industrial Property Law will extend protection to industrial
designs and geographical indications.
131. Poland's legislation does not provide for the 20-year pipeline protection on pharmaceuticals.
It is claimed that Poland's legislation does not provide adequate patent protection for
pharmaceuticals.
44
Trade marks
132. Trade mark protection is provided in the Law of Trademarks of 1985.  Trade marks, service
marks and collective marks may be registered.  Registrations are handled by the Patent Office.  A
registered trade mark is valid for ten years from the date of filing, and may be renewed for ten-year
periods.  Trade mark protection lapses if it has not been used consecutively for three years.  A
registered holder of a trade mark may be licensed.  In 1998 there were 11,686 new trade mark
registrations, and total registered trade marks amounted to 92,750 at end-1998.
                                                          
44 EC (1999).Poland WT/TPR/S/71
Page 71
(b) Copyright
133. Poland's copyright legislation (Law on Copyright and Neighbouring Rights) provides for
protection of literary, musical, and graphic works as  well as computer software, audio-visual works
and industrial patterns.  Copyright protection was extended in 1994 from 25 to 50 years, and applies
to authors, producers, artists, and performers.  Compulsory licensing of copyright may occur for cable
network operators; informative purposes; research and educational institutions; libraries, archives and
schools; and research and technical information and documentation centres.  The Ministry of Culture
and Arts administers copyright legislation.
134. New legislation amending the Act on Copy right and Neighbouring Rights, which was
introduced in 1999, is aimed at further strengthening Poland's copyright laws by harmonizing them
with those of the EU, and increasing compliance with WTO requirements under TRIPS.  Inadequaciesin Poland's copyright system, identified by the EU as part of the accession process, concerned the
scope of the rental directive (in particular the rights for broadcasting foreign sound recordings); no
protection for pre-1974 sound recordings and artistic performers; the period of protection for
neighbouring rights; post-mortem author copyrights; and the legal protection afforded databases.
45
135. The new copyright legislation made a number of changes, including the removal of statutory
licence for retransmission of programmes by cable network operators; introduction of "secondary
protection" of 25 years after the date of first performance or publication; protecting pre-1974 sound
recordings and artistic performances for up to 50 years; removal of limitation on protection of artistic
performances, sound recordings, and videos to works created within 20 years prior to legislation; and
extension of the period of protection from 50 to 70 years.46
136. Sole distributorships for selling copyright material are permitted in Poland.  Thus, a foreign
copyright holder can license a sole distributor in Poland and prevent other domestic distributors fromimporting genuine products from other foreign licensed manufacturers.
(c) Enforcement
137. Enforcement of intellectual property in Poland resides in the Ministry of Culture and Arts,
with legal redress possible through the ordinary courts and subject to the Civil Procedure Code.
Foreigners seeking to take legal action are required to use a lawyer or agent domiciled in Poland.
138. Poland's intellectual property legislation enables the courts to protect the right holder by
ordering the cessation of the illegal activities.  Courts may also order any profits from such illegal
activities to be surrendered to the right holder;  the infringing party pay to compensation for damages
to the right holder; and seizure of counterfeit goods violating a registered trade mark.  Poland's
industrial property legislation requires that action for infringement commence within three years fromthe date the alleged violation became known.
139. Polish copyright legislation also contains penal provisions.  These were made more severe in
the new legislation.  Fines of up to US$11,000 and imprisonment of up to five years are possible.
140. Intellectual property holders have been able, since 1997, to apply in writing to the Customs
Office for protection against the importation of pirated or counterfeit goods (Regulation of theCouncil of Ministers on the Procedure and Operating Principles for Customs Authorities for
Withholding Goods in Instances of Suspected Violation of Provisions on Protecting Intellectual,
                                                          
45 EU (1999).
46 The protection of databases is to be governed by separate legislation currently being finalised.WT/TPR/S/71 Trade Policy Review
Page 72
Commercial and Industrial Property).  Payment of security, usually set at 10% of the customs value,
must accompany the application.47  The applicant must provide a court order supporting the claim
within ten working days from the date of being notified by Customs that the goods have been
suspended.
141. Provisions concerning customs control and seizure procedures over counterfeit and pirated
goods are to be incorporated in the new Industrial Property Law.  In 1999, a decree gave PolishCustoms clear authority to seize suspected pirated goods without an application from the right holder.
Moreover, Customs and the recording, motion picture, and business software industries signed a
Memorandum of Understanding in January 2000 aimed at improving cooperation in detecting illegal
goods.
142. Past enforcement of intellectual property rights by Poland has been criticized by several of its
major trading partners.  The EU, for example, stated  that Poland had to pay special attention to the
enforcement of intellectual property rights at administrative and judicial levels, including better
border enforcement and anti-piracy measures.
48  The International Intellectual Property Alliance
(IIPA) recommended that Poland be placed on the "priority 301 watch list" by the USTR for 2000,
mainly because of what it regarded as lax enforcement.49  Importation by Poland of pirated and
counterfeit goods, especially sound recordings, movie videos, computer and entertainment software, is
claimed to be substantial, and there is also some evidence of illegal production internally.50  T h e
piracy rates in Poland on movie videos, sound recordings, and computer and entertainment software,
were estimated to be 30%, over 40%, 59% and 62%, respectively, in 1998.51
                                                          
47 Customs may oblige the applicant to increase the amount of security paid to cover its costs of
withholding goods and investigating their authenticity.
48 EC (1999).
49 International Intellectual Property Alliance (IIPA), Press Release , 18 February 2000.  According to
the IIPA, the Polish judicial enforcement system has been highly inadequate.  Long delays occur, and the courts
do not impose sufficient criminal penalties and civil damages in commercial piracy cases, even where these areprovided for in the law.  The IIPA is a coalition formed  in 1984 to represent the U.S. copyright-based industries
– films, videos, recordings, music, business software, interactive entertainment software, books and journals – in
bilateral and multilateral efforts to improve international protection of copyrighted works.
50 The Polish Ministry of Justice stated, in April 1999, that approximately 80% of the illegal material
sold in Poland is imported; the rest is locally produced. (IIPA, 2000).
51 IIPA (1999).