WORLD TRADE
ORGANIZATIONS/C/N/141
14 February 2001
(01-0720)
Council for Trade in Services Original:  English
NOTIFICATION PURSUANT TO ARTICLE III:3 OF THE
GENERAL AGREEMENT ON TRADE IN SERVICES
The following notification has been received from the delegation of the Republic of Poland.
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1. Member notifying:
The Republic of Poland
2. Notification under:
Article III, paragraph 3 of the General Agreement on Trade in Services
3. Date of entry into force:
11 January 1999, with the exception of Article 30 which entered into force on 1 January 1999.
Duration
Indefinite
4. Agency responsible for implementati on and enforcement of the measure:
 National Bank of Poland
5. Description of the measures:
Measure
(i) mode of supply covered by the measure:  (3) commercial presence
(ii) effect on trade in services:  liberalization measure
(iii) the measure has impact on commitments in the financial services:
The Foreign Exchange Law of 18 December 1998 is based on the following assumptions:
(a) within the scope of current operations, full freedom is allowed, both as regards the
conclusion of transactions as regards payments and transfers resulting from these
transactions;
(b) within the scope of capital operations, the extent of freedom complying with the
obligations assumed by Poland in view of its accession to OECD has been designed,S/C/N/141
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meaning that a substantial portion of capital operations is not subject to any
restrictions;
(c) the restrictions maintained with respect to capital operations are of an interim
character and will be gradually eliminated;
(d) a departure from the internal convertibility system and an introduction of equality of
Polish currency with foreign exchange abroad has been adopted.
Foreign Exchange Restrictions:
Foreign Exchange Law contains a detailed catalogue of foreign exchange transactions, which
require a permit.  Where foreign exchange abroad is concerned, these restrictions in principle
pertain only to capital operations.  Capital trade restrictions are based on the criterion of
duration of a transaction (e.g. credit facilities with the term of repayment of one year or less or
short term securities), the criterion of the place of making investments or the place ofresidence of the entity performing a given transaction (non-OECD countries), and finally, on
the criterion of an especially "liquid" nature of a given transaction (derivative instruments).
In accordance with the Foreign Exchange Law a foreign exchange permit shall be required:
1. for residents to make direct investments in the countries not members of the
Organization for Economic Cooperation and Development (OECD) or in thecountries with which the Republic of Pola nd has not concluded agreements on the
promotion and mutual protection of investments, except for loans and credits granted
to a company by its shareholders and transfers of means of payment for the purpose
of maintaining a branch;
2. for residents to make portfolio investments in the scope of securities issued by non-
residents not domiciled or not having their seat in the OECD countries or in the
countries with which the Republic of Pola nd has not concluded agreements on the
promotion and mutual protection of investments as well as units of participation in a
collective investment funds not having their seats in the aforesaid countries;
3. to make portfolio investments in short term securities and derivative financial
instruments, with the exception of derivati ve financial instruments traded on Warsaw
Stock Exchange S.A., Polish Financial Stock S.A. and CeTO S.A;
4.  to engage in credit operations resulting in a debt with the maturity less than one year;
5. for non-residents to engage in deposit operations, if:
a) the operations include depositing Polish currency in term deposits with the maturity
less than three months and in the amount exceeding PLN 500,000, or
b) the exchange of Polish currency deposited in the form of term deposits with the
maturity exceeding three months and in the amount over PLN 500,000 for foreign
means of payment and the transfer of the funds obtained from such exchange within
three months from the deposit date;S/C/N/141
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6. for residents to engage in deposits operations other than:
a) operations related to expenses incurred as part of direct or portfolio investments
which do not require a foreign exchange permit,
b) operations with respect to accounts owned by natural persons during their stay
abroad;
7. to engage in guarantee operations concerning claims under the restrictions hereof,
excluding the claims for origination of which the exemption or foreign exchange
permit was granted.
The act contains security measures making it possible to introduce on an interim basis far-
reaching special foreign exchange restrictions in the event of any risk to the stability and
integrity of the financial system of Poland.
6. Members specifically affected, if any:
OECD countries and the countries with which the Republic of Poland has concluded
agreements on the promotion and mutual protection of investments.
7. The texts are available from:
Official Journal of Laws No. 160/1998, item 1063
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