WORLD TRADE
ORGANIZATIONG/SCM/N/38/POL
12 May 1999
(99-1949)
Committee on Subsidies and
Countervailing MeasuresOriginal:  English
SUBSIDIES
New and Full Notifications Pursuant to Article XVI.1 of the GATT 1994 and
Article 25 of the Agreement on Subsidies and Countervailing Measures
POLAND
The following communication, dated 30 April 1999, has been received from the Permanent
Mission of Poland.
_______________
The following notification covers the specific subsidies applied in Poland in 1997 in the
industrial and agricultural sectors.
All data concerning the amounts of subsidies contained herein are given in new Polish Zlotys
(ZI)1.
                                                     
1 *In 1997, the average exchange rate between Polish Zloty and US dollar was: 1 ZI = 0.3084 US$G/SCM/N/38/POL
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A. SUBSIDIES APPLIED IN 1997 IN THE INDUSTRIAL SECTOR
CONTINUED FROM THE PREVIOUS YEARS ............................................................5
1. LOAN FROM E FSAL F UNDS.............................................................................................5
2. INVESTMENT TA X  REDUC TIONS..................................................................................8
3. DIRECT  GRANTS  FOR  EXTRA CHARGES  TO  PRODUCTS AND SERVICES......11
4. ASSISTANCE FOR RESTRUCTURI NG OF THE BANK ING SECT OR ........................14
5. REDUCTION  OF LIABILITIES RESULTING  FROM SOCIAL INSURANCE
PREMIUMS....................................................................................................................... ..17
6. GUARANTEES AND WARRANTS OF THE TR EASURY.............................................19
7. CREDIT WARRANTS FOR SMALL AND MEDIUM ENTE RPRISES ..........................22
8. SUPPORT OF REGI ONAL PROGRA MMES....................................................................23
9. RESTRUCTURING PROGRAMME  FOR STEEL AND IRON INDUSTRY..................25
10. RESTRUCTURING PROGRAMMEME   FOR MINING SECTOR .................................26
11. TAX INCENTIVES  – SUPPLEMENTARY INFORMATION ON RECENT
YEARS .......................................................................................................................... ......29
B. GRANTS FOR THE INDUSTRIAL SECTOR AWARDED IN 1997 – NEW
PROGRAMMES................................................................................................................30
1. SUPPORT FOR SPECIAL ECONOMIC ZONES - SPECIAL ECONOMIC ZONE
OF CZĘSTOCHOW A .........................................................................................................30
2. SUPPORT FOR SPECIAL ECONOMIC ZONES - SPECIAL ECONOMIC ZONE
OF KOSTRZYN - SL UBICE RE GION ..............................................................................32
3. SUPPORT FOR SPECIAL ECONOMIC ZONES - SPECIAL ECONOMIC ZONE
OF KAMIE NNA GÓRA .....................................................................................................34
4. SUPPORT FOR SPECIAL ECONOMIC ZONES - SPECIAL ECONOMIC ZONE –
TECHNOLOGICAL PARK  OF CR ACOW........................................................................35
5. SUPPORT FOR SPECIAL ECONOMIC ZONES - SPECIAL ECONOMIC ZONE –
MAZOVIA TECHNOPAR K OF MODLIN........................................................................37
6. SUPPORT FOR SPECIAL ECONOMIC ZONES - SPECIAL ECONOMIC ZONE –
STARACHOW ICE..............................................................................................................38
7. SUPPORT FOR SPECIAL ECONOMIC ZONES - SPECIAL ECONOMIC ZONE
OF TARNO BRZEG.............................................................................................................40G/SCM/N/38/POL
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8. SUPPORT FOR SPECIAL ECONOMIC ZONES - SPECIAL ECONOMIC ZONE
OF TCZEW....................................................................................................................... ...41
9. SUPPORT FOR SPECIAL ECONOMIC ZONES - SPECIAL ECONOMIC ZONE
OF WARMIA AND MA ZURY RE GION ..........................................................................43
10. SUPPORT FOR SPECIAL ECONOMIC ZONES - SPECIAL ECONOMIC ZONE
OF KATOWICE ..................................................................................................................44
11. SUPPORT FOR SPECIAL ECONOMIC ZONES - SPECIAL ECONOMIC ZONE
OF LEG NICA..................................................................................................................... .46
12. SUPPORT FOR SPECIAL ECONOMIC ZONES - SPECIAL ECONOMIC ZONE
OF ŁÓDŹ.............................................................................................................................47
13. SUPPORT FOR SPECIAL ECONOMIC ZONES - SPECIAL ECONOMIC ZONE
OF SŁUPSK ........................................................................................................................49
14. SUPPORT FOR SPECIAL ECONOMIC ZONES - SPECIAL ECONOMIC ZONE
OF SUWA ŁKI.....................................................................................................................50
15. SUPPORT FOR SPECIAL ECONOMIC ZONES - SPECIAL ECONOMIC ZONE
OF WAŁBRZYCH “INV ESTPAR K”.................................................................................52
16. SUPPORT FOR SPECIAL ECONOMIC ZONES - SPECIAL ECONOMIC ZONE
OF ŻARNOWIE C ...............................................................................................................53
C. SUBSIDIES SUPPORTING EXPORTS – CONTINUED FROM RECENT
YEARS.......................................................................................................................... ......55
1. INSURANCE SYSTEM SUPPORTING EXPORT CONTRACTS,
GUARANTEED BY TH E TREASU RY.............................................................................55
2. INVESTMENT RELATED TAX REBATE COINNECTED WITH  RESULTS OF
EXPORT ACTI VITIES.......................................................................................................57
D. SPECIFIC SUBSIDIES APPLIED IN THE AGRICULT URAL SECTOR ................57
1. GRANTS  TO SUPPORT  PRODUCTION OF CALCIUM FERTILIZERS
PRODUCTI ON....................................................................................................................5 7
2. FINANCIAL SUPPORT FO R SUGAR EX PORT..............................................................58
3. SUBSIDIZING THE INTERESTS  ON BANKING LOANS  FOR
AGRICULTURAL PURPOSES..........................................................................................59
4. WORKING CAPI TAL LOANS ..........................................................................................60
5. INVESTMENT  LOANS ......................................................................................................62
INTERVENTION PURCHASE OF FOOD AND AGRICULTURAL PRODUCTS
BY THE AGRICULTURAL MA RKET AGENCY (AMA)...............................................64
6. THE GRAIN MARKET ......................................................................................................64G/SCM/N/38/POL
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7. THE MILK MARKET.........................................................................................................65
8. THE POTATOES MARKET ..............................................................................................66
9. THE RAW HOPES  MARKET............................................................................................67
10. THE BEE HONE Y MARKET ............................................................................................68
11. GRANTS FOR BIOLOGICAL PR OGRESS IN AGRI CULTURE....................................69G/SCM/N/38/POL
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A. SUBSIDIES APPLIED IN 1997 IN THE INDUSTRIAL SECTOR CONTINUED FROM
THE PREVIOUS YEARS
1. LOAN FROM EFSAL FUNDS
1.1 Purpose of the programme
Support of enterprise restructuring and provision of “hedging” in case of the liquidation,
when it is impossible to obtain resources for these purposes from other sources.
1.2 Legal basis
The Council’s of Ministers regulation of 23 November 1993 concerning the guidelines for the
state budget implementation regarding the expenditures for support enterprise restructuring and
“hedging” in case of the liquidation (Journal of Laws No 119, item 531, of 1995 No 128, item 621, of1997 No 30, item 167).
1.3 The government agency responsible for the programme implementation
The Minister of Finance empowered by the Council of Ministers.
1.4 Form of the assistance
Grant (exclusively for the “hedging” purposes) and investment loan.
1.5 Basic characteristics
Support of businesses involved in restructuring or liquidation processes, especially those
located in the regions particularly endangered with unemployment, through:
1. Provision of resources (loans) for restructuring investments and for “hedging” purposes (grant
for allowances for personnel dismissed due to group reductions, pension and retirement allowances,
remuneration for unused annual leaves, compensations for shortened notice of termination).
 
2. Support of buyout  by the Industrial Development Agency (IDA) the outstanding debts frombanks provided that the bank is not involved in conciliatory proceedings pursuant to the law of
3 February 1993 concerning financial restructuring on enterprises and banks and changing some laws
(Journal of Laws No 18, item of 1996, No 52, item 235, No 106, item 496, No 118, item 561 of 1997,
No 98, item 603, No 141, item 943) and buyout of the cl aims of the debtor’s providers (the amount of
the debts bought out by the IDA must represent 10per cent of the total amount of the debtors
liabilities, however must not be less than ZI 100 000.-, or the sum of these liabilities represents 20per
cent of the total amount of the debtor’s liabilities).
The following entities are eligible for the assistance, which can be granted only once:
• state owned enterprises;
 
• companies  whose stock is owned by the Treasury;
 
• companies  whose stock is owned by the Treasury and the employees (farmers, fishermen);
 G/SCM/N/38/POL
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• companies whose stock is owned by the Treasu ry and other organizational units and natural
persons, where the liabilities were converted into stocks (shares) pursuant to conciliatoryagreements reached with the banks according to the procedures determined by the law  of
February 13, 1993 concerning financial restructuring on enterprises and banks and changing
some laws – for the “hedging” purposes only;
 
• companies whose stocks have been contributed as a share in Sugar Partnerships, as long as
their stock is held by the Treasury, Sugar Partnerships, employees and sugar beets producers,or when the Treasury is the only shareholder.
The entities requesting the EFSAL assistance must submit an application that inter alia
includes  information concerning their current economic and financial standing as well as their
financial standing during the preceding years, forecasts for the coming years, the programme of short,
medium and long term actions, SWOT analysis and:
- restructuring or liquidation programme;- a copy of the application submitted to the relevant minister concerning transformation of the
enterprise into a company whose stock is held exclusively by the Treasury, and in case ofcompanies information of the forecasted date of making the stocks of the Treasury publicly
available;
- information  concerning the legal status of  the real estate: buildings and land; opinions of:
financing bank, Tax Office;
- standpoint of the principal  borrowers  concerning the debts restructuring;- information  on the effects of the actions aimed at obtaining financial resources from other
sources;
- the programme for making the unnecessary assets productive;- proposals related to restructuring, employment and wages freeze agreed with the trade unions.
The conditions of the loans awarded within the first Tranche were more advantageous
compared to commercial loans – the interests rate from 1/3 to 0.8 of the refinanced credit rate (mostly
0.5), the maturity periods were from 2 to 6 years, and the repayment grace period was in most cases 1
year, the principal repayment – quarterly and the interests monthly.
According to the recommendations of the World Bank, the loans awarded within the second Tranche
are less advantageous (the interests rate may not be lower than the WIBOR rate).
The decision concerning allocation of  the resources is made by the Minister of Finance (up to
ZI 2 million in case of a loan and up to ZI 0.5 million in case of a grant). The assistance that exceeds
these amounts is allocated by the decision of the Council of Ministers.
1.6 Amount  of  assistance granted
In 1997 the total assistance provided amounted to ZI 75.5 million, including: grants – ZI 12.8
million, and loans – ZI 62.6 million.
As per the end of 1997 approximately 76per cent of the EFSAL loans were consumed.G/SCM/N/38/POL
Page 7
1.7 Duration of the  programme
The agreement between the International Bank for Reconstruction and Development (IBRD)
and the government of Poland (GoP) assumed extend ing of adaptation loans  for the enterprises and
financial sector in three tranches:
1st Tranche – USD 125 million2nd Tranche – USD 100 million3rd Tranche – USD 125 million
The first tranche (being an equivalent of USD 125 million) amounting to ZI 282 356 805.-
was made available in 1994. The second tranche (being an equivalent of USD 100 million) amounting
to ZI 261 920 000.- was received by the Treasury  in April 1995. The total amounts to ZI 544 276
805.-.
It is assumed that the second tranche of the loan would be consumed by the end of 1998.
The Polish Side has resigned from applying for the third tranche of the EFSAL  resources.
1.8 Beneficiaries
in ZI
No. Branch of economy Total
assistance
granted
in 1997Grants LoansGlobal
assistance
structure
1. Food industry 500.000 500.000 - 0,7%
2. Fishery 166.745 166.745 - 0,2%
3. Pulp and paper industry 17.100.000 - 17.100.000 22,7%
4. Chemical industry 500.000 500.000 - 0,7%
5. Light industry 4.489.814 4.489.814 - 5,9%
6. Leather industry 2.481.378 1.481.378 1.000.000 3,3%
7. Shipbuilding 450.000 450.000 - 0,6%
8. Construction 5.428.775 1.428.775 4.000.000 7,2%
9. Typography 1.900.000 - 1.900.000 2,5%
10. Metallurgy 23.210.350 1.392.350 21.818.000 30,8%
11. Machine industry 9.538.808 1.878.808 7.660.000 12,6%
12. Electronics 2.185.546 185.546 2.000.000 2,9%
13. Extraction and mining 368.711 368.711 - 0,5%
14. Transport 7.158.200 - 7.158.200 9,4%
Total 75.478.327 12..842.127 62.636.200 100%
1.9 Evaluation of the effects on trade
The programme does not directly impact the foreign trade.G/SCM/N/38/POL
Page 8
2. INVESTMENT TAX REDUCTIONS
2.1 Purpose of the programme
Encouraging the taxpayers’ investments; including the investments in  the areas endangered
with high structural unemployment rate.
2.2 Legal basis
1. Regulation of the Council of Ministers of 24 January 1995 concerning deducting the
investment expenditures from the income and tax abatements  in the municipalities (gminas)
especially endangered with high structural unemployment (Journal of Laws No 14, item 63, and of
1996 No 63, item 293).
 
2. Law of 15 February 1992 on the Corporate Income Tax  (Journal of Laws of 1993r. No 106,item 482, No 134, item 646 of 1994, No 1, item 2;  No 43, item 163, No 80, item 368 , No 87, item
406 , No 90, item 419;  No 113, item 547;  No 123, item 602; No 127, item 627, of 1995, No 5, item
25; No 86, item 433; No 96, item 478; No 133, item 654;  No 142, item 704 of 1996, No 25, item
113;  No 34, item 146;  No 90, item 405;  No 137, item 639 ; No 147, item 686; and of  1997, No 9,
item 44, No 28, item 153, No 79, item  484, No 96 , item  592, No 107, item 685 , No 118, item 754,
No 121, item 770, No 123 , item 776 and 777, No 137, item 926, No 139, item 932, 933 and 934, No
140 , item 939, No 141 , item  945).
2.3 The government agency responsible for the programme implementation
Minister of Finance.
2.4 Form of the assistance
Tax reductions.
2.5 Basic characteristics
The incentives consist in possibility to deduct wholly or partially from the income before tax
the expenses incurred for purchase of fixed assets specified in the above mentioned legal acts.
The tax incentives granted for businesses operating in the areas endangered with high
unemployment are based on investment/employment fo rmula, i.e. part of the expended investment
costs may be  deducted from the income, after employment of specified number of persons officially
registered as unemployed. This incentive consists in  deduction from the taxable income thefollowing:
• 50per cent of the investment costs, or
• 75per cent of the investment costs if incurred in a municipality of the population not
exceeding 5000 people.
If the amount of the deductions exceeds the taxable income obtained during the fiscal year in
which the investment costs were incurred then,  ther e is a possibility to deduct the difference from the
income obtained during the following years (up to three consecutive years).
The right for deductions from the income pursuant to the provisions of  the ordinance of the
Council of Ministers of 24 January 1995 is vested if:G/SCM/N/38/POL
Page 9
• the taxpayer obtained the required index of  employment increase, and the number of
personnel employed calculated on the full time basis is equal or exceeds the sum of  total
number of employed persons and the employment increase index;
• the investment expenditures were incurred during the period when the municipality was
recognized as endangered with unemployment, or within six months from deleting the
municipality from the list [of the municipalities recognized as endangered with
unemployment], and the taxpayer was conducting the business activities in the territory of the
municipality;
• the taxpayer does not have any  liabilities resulted from taxes, social security  and labor fund
contributions, before making the deduction;
• the investment costs are documented according to the regulations binding in this respect;
• the taxpayer does not apply any tax incentives and abatements resulted from other
regulations.
The provisions of the law of  15 February 1992 are applicable to all the taxpayers meeting the
requirements determined therein. The law provides subject systemic exemptions. The actually
incurred  investment costs for the categories of fixed assets specified in the law may be deducted fromthe taxable base. However, these costs must be actually expended by the taxpayer during  the given
fiscal year and the VAT and excise taxes must be first deducted. The deductions of investment costs
are treated equally as depreciation deductions. The taxpayers may deduct  the incurred costs wholly or
partially, however the deductions ceiling must not exceed:
• within the period till December 31, 1997 20% of the taxable base
• within the period till December 31, 1998 15% of the taxable base
• within the period till December 31, 1997 10% of the taxable base
Certain category of taxpayers specified in the law is entitled to  higher amounts of the
deductions amounting respectively:
• within the period till December 31, 1997 40% of the taxable base
• within the period till December 31, 1998
 35% of the taxable base
• within the period till December 31, 1999 30% of the taxable base
• from January 1, 2000 25% of the taxable base
Irrespective from these deductions, the taxpayers are entitled to additional tax abatement  that
is strictly connected with  the amounts expended for investment purposes and with amounts of the
revealed income. However, this additional abatement is applicable only in the fiscal year that follows
the year during which the taxpayer deducted  the investment expenditures from the taxable base. The
additional deduction consists in decreasing the income taxable base with half of the investmentexpenditures deducted from the taxable in the preceding year, however not more than:
• within the period till December 31, 1998 20% of the taxable base
• within the period till December 31, 1999 15% of the taxable base
• from January 1, 2000 10% of the taxable base
The taxpayers, who during the year  preceding the fiscal year in which the deductions
connected with  the investment expenditures have been made, obtained profitability (revenue to profitratio) not less than 8per cent, enjoy the right to the deductions or abatements. For the low-profitabilityG/SCM/N/38/POL
Page 10
areas, as for example agricultural and food, construction and housing construction,  this ratio is set as
low as 4per cent. Form January 1, 1998  the taxpayers operating in the area of waste collection,
purchase and segregation, who  during the year preceding the fiscal year obtained  the profitability at
the level of 2per cent, may deduct the investment expenditures.
Analogous incentives are provided for natural persons conducting business activities
(excluding the taxpayers taxed on the lump sum basis). Provisions of the law of  26 July 1991 on
Personal Income Tax  are the represent the legal basis for application  of the tax incentives (Journal of
Laws z 1993, No 90, item 416, No 134, item  646 z 1994, No 43, item 163, No 90, item 419, No 113,
item 547, No 123, item 602 , No 126, item 626, of 1995, No 5, item 25, No 133, item 654, of 1996,
No 25, item 113, No 87, item 395, No 137, item 638; No 147, item 686, No 156, item 776 and  of
1997, No 28, item 153, No 30 , item 164, No 71 , item  449, No 85, item 538, No 96, item 592, No121 , item 770, No 123 , item 776, No 137, item 926. No 139, item 932, 933, 934,  No 141, item  943
and 945).
The taxpayers who during the fiscal year meet the following conditions are eligible for the
investment incentives:
• do not benefit  from incentives or abatements based on other titles;
• during the year preceding the fiscal year  in which they apply  the deductions, they have
obtained the  required revenue/profit ratio;
• the taxpayers’ liabilities concerning  the social insurance contributions and due taxes before
making each deduction of the investment costs cannot exceed 3per cent of the due
contributions and taxes respectively;
• the expenditures shall be documented according to the requirements of  the relevant
regulations (e.g. VAT invoice, simplified invoice, and notary act).
2.6 Amount  of  assistance granted
1. In 1997 the tax relieves resulted from the provisions of the Council’s of Ministers regulation
of 24 January 1995 concerning deductions of the investments expenditures from the income and
reduction of the income tax rates in the municipalities especially endangered with high structural
unemployment amounted to ZI 14.8 million.
2. In 1997 the tax relieves resulted from the provisions of the law of 15 February 1992
concerning  the Corporate Income Tax amounted to ZI 1 876.2 million.
2.7 Duration  of the programme
The timeframe for application of the investment tax relieves is not limited.
2.8 Beneficiaries
1. 117 beneficiaries took advantage from the tax relieves mentioned in item 2.6. above; the
average subsidy amounted to ZI 126.6 thousand per beneficiary.
2. 2,440 beneficiaries took advantage from the tax relieves mentioned in item 2.6. ii) above; the
average subsidy amounted to ZI 768.9 thousand per beneficiary.G/SCM/N/38/POL
Page 11
2.9 Evaluation of the effects on trade
The purpose of the programme is to support investments; including the investments of both
Polish and international businesses in the areas es pecially endangered with structural unemployment.
The programme is not aimed directly at foreign trade.
3. DIRECT  GRANTS  FOR EXTRA CHARGES TO PRODUCTS AND SERVICES
3.1 Purpose of the programme
Lowering the prices of: domestic passenger transport, meals sold in milk bars, specialized
school and university  books in order to provide increased accessibility  of some services to specificsocial groups
3.2 Legal basis
1. The law of 5 January 1991 – The Budget Law (Journal of Laws of 1993,   No 72, item 344, of
1994, No 76, item 344, No 121, item 591, No 133, item 685, z 1995,  No 78, item 390, No 124, item
601, No 132, item 640, of 1996r. No 89, item 402, No 106, item 496, No 132, item 621, No 139, item
647, of 1997, No 54, item 348, No 79, item 484, No 121, item 770, No 123, item 775 and 778, No 80,
item 491, No 121, item 770, No 123, item 778,  No 133, item 883, No 137, item 926, No 141, item
943, No 158, item 1042).
2. Regulation of the Minister of Finance of 11 May 1991 concerning the rules and procedures
for  awarding direct grants (Journal of Laws No 43, item 191 and of 1994 No 140, item 792). The
provisions of the regulation are binding for all businesses conducting the activities included in the
scope of the grants, irrespective from the sector of industry
3. Regulation of the Minister of Finance of 28 June 1991 concerning the rules and procedures
for awarding direct grants for meals sold in milk bars (Journal of Laws No 60, item 256 and of 1993
No 48, item 220).
4. Regulation of the Minister of National Education of 27 August 1992 concerning the detailed
rules and procedures for awarding direct grants for school and university books (The Polish MonitorNo 30, item 209 and of 1995 No 29, item 339).
 3.3 The government agency responsible for the programme implementation
1. Grants for meals sold in milk bars are contained in the budget of the Ministry of Finance.
2. The Minister of Transport and Maritime Economy is the disposer of the grants for railways
and bus passenger transport.
3.  The Voivod of Katowice is the disposer of the direct grants for inter-municipal transport
organized by local governments and municipal associations of the Katowice urban area.
4.  The Minister of National Education is the disposer of the direct grants for school and
university books.
 3.4 Form of the assistance
Grants from the state budget.G/SCM/N/38/POL
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3.5 Basic characteristics
1. Grants for the meals sold in milk bars
The businesses conducting the activities included in the scope of the regulation receive grants
within the limits determined by the budget law. The businesses may obtain  grants for the meals sold
in milk bars after fulfilment of the criteria :
they run milk bars, defined as self-service, non-alcoholic, catering enterprises for public, which sell
meals produced of milk, dairy and vegetable products used for prepare regular meals.
the above mentioned milk bars apply margin not exceeding 25per cent of the value of  used food
products.
they maintain quantitative-qualitative ledgers of the food products used for preparing the meals in the
milk bars.
2. Grants for railway and bus passenger domestic transport
In 1997 direct grants for railway passenger transport were awarded for the transport: within
urban agglomerations, regional (local), inter-regional (long distance) by means of regular passenger
trains, speeded-up trains, excluding passenger transport by means of  express, Inter-City, Euro-City
and  Euronight (hotel)  trains in domestic and international communication.
The regulation  of the Minister of Finance promulgated annually, beside setting the level of
the  grant rates , determines the scope of subsidies for railway and bus transport and sets the
conditions to be met by the carriers in order to ob tain grants for transport services they provide. In
1997 these issues were regulated by the Minister’s of Finance regulation of 31 July 1997 on setting
the rates of direct grants for passenger railway and bus transport (Journal of Laws No 94, item 574).
In order to obtain the grants the carriers had to fulfill all the following conditions:
• provide transport services in accordance with the trains schedule,
• apply tariffs not exceeding the official prices determined by the Minister of Transport and
Maritime Economy,  and the tariffs or price-lists set by the carriers according to the
provisions of  the law of 15 November 1984 – Transport Law ( Journal of Laws of 1995 No
119, item 575 and of 1997 No 23, item 117, No 96, item 591, No 101, item 629, and No 141,
item 942).
• to accept as valid rights of  some persons to enjoy free or reduced price tickets as provided by
the law of 20 June 1992 concerning the rights to free  and reduced price tickets  for publictransport (Journal of Laws No 54, item 254, of 1994  No 40, item 150, No.80, item 368, No
113, item 547, of 1995 r. No. 50, item 261 and of  1996 r.  No100, item 460).
• to submit a list of the subsidized transport units to the Minister of Transport and Maritime
Economy and obtain confirmation of including these units in  the aggregated amount of the
grant for the given fiscal year, in order  to determine rate of the subsidy.
3. Grants for passenger bus transportG/SCM/N/38/POL
Page 13
In 1997 the grants for bus passenger transport were awarded for the regular domestic inter-
city transport.
In order to obtain the grants the carriers had to fulfill all the following conditions:
• provide transport services in accordance with the buses schedule agreed by all the carriers
during the district schedule conferences;
• to apply official prices for regular domestic bus transport, as determined by the Minister of
Transport and Maritime Economy in consultation with the Minister of  Finance;
• to accept as valid  the some persons rights to enjoy free or reduced price tickets according to
the provisions of the law of 20 June 1992 concerning the rights to free  and reduced price
tickets  for public transport;
• to submit a list of the subsidized transport units to the Minister of Transport and Maritime
Economy, and those who organize transport within the Voivodship of Katowice to the Voivodof Katowice,   and obtain confirmation of incl uding these units in  the aggregated amount of
the grant for the given fiscal year, in order  to determine rate of the subsidy.
4. Grants for publication of specialized school and university books
These grants are awarded for publishers of school and university books:
• for teaching specialized subjects in vocational schools;
• for schools of national minorities;
• for special schools;
• for university books.
The above mentioned grants may be awarded  for the publication of the books  approved for
use in schools, therefore fulfilling the education programme requirements.
The Minister of National Education determines the list of the approved and recommended
books for use in schools.
The books subsidized by the grants are published in small number of copies, which increases
the publication costs.
Without the above-mentioned grants the publishing houses would be scarcely interested in
publishing the books the demand for which is limited.
The Ministry of National Education evaluates the applications of publishers willing to obtain
the above-mentioned grants. The specimen of the application  form is included in the ordinance of the
Minister of National Education of 27 August 1992.
The grants are awarded to the publishers of the school and university books on the basis of
rates for the printed sheet.
The Minister of National Education annually determines the rates of grants for school and
university books.G/SCM/N/38/POL
Page 14
3.6 Amount of assistance granted
In 1997 the categorical grants amounted to ZI 928.4 million.
3.7 Duration  of the programme
The value of the  grants is  set in the state budget every year.
3.8 Beneficiaries
Pursuant to art. 20 of the state budget for 1997 – and similarly during the proceeding years –
the  grants were  awarded for:
in millions of ZI
meals sold in milk barspassenger domestic railway transportpassenger inter-city bus transport, including grants for inter-city connections in
the urban agglomeration of Katowice organized (delegated) by localgovernments, and municipal associations
publication of specialized school and university books13.9
710.0
193.4
11.0
3.9 Evaluation of the effects on trade
Considering the purposes of the programme, there are no effects on the foreign trade.
4. ASSISTANCE FOR RESTRUCTURING OF THE BANKING SECTOR
4.1 Purpose of the programme
Restructuring of the banking sector
4.2 Legal basis
Law of 3 February 1993 concerning financial re structuring of enterprises and banks and on
change of some other laws (Journal of Laws No  18, item 82) and law of  24 June 1994 concerning
restructuring of cooperative banks and Bank Gospodarki Żywnościowej ( Food Economy Bank)  and
on change of some other laws (Journal of Laws No 80, item 369).
4.3 The government agency responsible for the programme implementation
Minister of Finance and National Bank of Poland
4.4 Form of the assistance
Grants, loans, tax incentivesG/SCM/N/38/POL
Page 15
4.5 Basic characteristics
1. Treasury bonds for increasing the capital of  Bank Gospodarki Żywnościowej S.A. (BG Ż) and
regional banks and for restructuring of claims of the cooperative banks.
 
 Pursuant to the provisions of the above-mentioned law of  3 February 1993, the BG Ż obtained
the Treasury bonds amounting to ZI 1 622.4 million for increase of  the bank’s own capital.
According to the conditions of the issue of the Treasury bonds the buy-out of the bonds (issued in
1994) will take place by the year 2009.
 
 At the same time, within the issue of 1994 and pu rsuant to the provisions of  the Minister’s of
Finance ordinance of 2 June 1995 concerning  the proportion of the split of the Treasury bonds for
restructuring of claims, between the regional banks  and associated cooperative banks (Journal of
Laws  No 64, item 330), part of the bonds amounting to ZI 45 million  was earmarked for increasing
the reserves of  the regional banks established according to the provisions of the above-mentioned law
of 24 June 1994. Starting from 1995 the bonds are transferred to the  successively emerging regional
banks.
 
 The Treasury bonds are also earmarked for restructuring of the  claims of cooperative banks
associated with the regional banks. Pursuant to the provisions of the law  of 24 June 1994 and the
provisions of the Minister’s of Finance ordinance  of  2 June 1996 the Treasury bonds of the value
that on the day of the issue was over ZI 251 million were earmarked for that purpose.
 
 According to the conditions of the Treasury bonds issue, the buy-out of the bonds (issued  in
1994) will take place successively within the period 1996-2009.
 
2. The refundable assistance for cooperative banks implementing the repair programmes
 
 According to the resolution adopted by the Sejm on 12 July 1995 concerning  support of the
repair processes carried out by cooperative banks, the amount of ZI 40 million was earmarked for
refundable assistance to the cooperative banks taking over other cooperative banks being in crisis.
 
 The National Bank of Poland in consultation with the Ministry of Finance provides this
assistance within the limits of  the earmarked funds by respective decrease of the portion of profits
paid to the state budget.
 
3. Tax incentives  for cooperative banks establishing regional banks
The provisions of  the ordinance of the Minister of Finance concerning abstaining form
income tax collection form some cooperative banks, granted additional financial support to the
cooperative banks.
Moreover, by the virtue of the Minister’s of Finance ordinance of 4 July 1996 (Polish Monitor
No 42, item 406) the collection of the taxes from BG Ż S.A, regional banks and cooperative banks on
income related  to the Treasury bonds destined for  restructuring of cooperative banking sector, was
also abstained. The overall financial results of the above-mentioned ordinance  are estimated  to reach
ZI 620.4 million by the year 2009.
4.6 Amount of assistance granted
In 1997  the assistance provided to the  cooperative banking sector totaled approximately
ZI 137.5 million, including the assistance provided in the form of:G/SCM/N/38/POL
Page 16
- Treasury bonds earmarked for  restructuring of the cooperative banks and newly established
regional banks – ZI 69.3 million;
- loans extended by NBP – ZI 45.2 million;  and
- tax incentives – ZI 23 million.
4.7 Duration of the programme
According to the conditions of  the Treasury bonds issue, being the main component of the
assistance provided within the scope of the above-mentioned programme, the buy-out of the bondswill be terminated in the year 2009.
4.8 Beneficiaries
1. The process of reconstruction of the cooperative banking sector continued throughout the year
of 1997 according to the provisions of the law of 24 June 1994 concerning  restructuring of
cooperative banks and Bank Gospodarki Żywnościowej ( Food Economy Bank)  and change of some
other laws (Journal of Laws No 80, item 369, of 1995 No 142, item 704, of 1996 No 106, item 496,
and of 1997 No 121, item 770, No 140, item 939). The programme was aimed at creation of three-tier
cooperative banking group that would include local cooperative banks, regional banks and nationalbank. The undertaken actions resulted with  establishment of all 9 regional banks predicted by the
law.
In 1997, pursuant to the provisions of  the above-mentioned law, the regional banks obtained
the Treasury bonds totalling ZI 69.3 million (according to the bond’s value on the day of the issue),including  ZI 36.3 million  earmarked for restructuring of the  claims of the associated cooperative
banks and ZI 33.0 million for increase of the capital reserves of the regional banks. Together –
including the  Treasury bonds transferred to the banks in the period of 1995-1996 – the regional banks
obtained  the Treasury bonds totalling ZI  194.4 million,  of which ZI 131.4 million was earmarked
for claims restructuring and ZI 63.0 million for capital reserves increase.
 
Refundable assistance for cooperative banks implementing the repair programmes
 
In 1997 within the limits of  the earmarked funds, The National Bank of Poland in
consultation with the Ministry of Finance provided the assistance totalling ZI 9.8 million to 5
cooperative banks.
In the period 1995-1997 such assistance totalling ZI 39.8 million was provided to 31
cooperative banks.
Moreover, according to the resolution adopted by the Sejm on January 11, 1996 concerning
the assumptions of the financial policy for 1996, NBP has earmarked the amount of ZI 40 million forrefundable  assistance to support the banks taking over other cooperative banks being in crisis. In
1997 NBP in consultation with the Minister of Finance provided assistance totalling ZI 25.7  million
to 15 banks out of the resources earmarked for this purpose and not consumed in 1996.
Altogether,  from the resources  earmarked for support of the cooperative banking sector and
in connection with the resolution adopted by the Sejm on January 11, 1996, the assistance totalling ZI
36.7 million  was provided to 21 banks.
In attempt to further support  the process of cooperative banks restructuring  and
implementing  the Sejm resolution of January 24, 1997 concerning the assumptions for the financialpolicy for the year 1997,  NBP has decided to earmark the next tranche of the assistance of ZI 20G/SCM/N/38/POL
Page 17
million. Within the limits of these resources, in 1997 NBP in consultation with the Minister of
Finance has provide the assistance amounting to ZI 9.6 million to 7 banks.
1. Tax incentives for the cooperative banks
The ordinance of the Minister of Finance concerning abstaining form income tax collection
form some cooperative banks (Polish Monitor No 5, item 39), granted additional financial support to
the cooperative banks. According to the provisions  of the ordinance the abstaining regarded the
following:
- 70 per cent of the income tax due for 1996 of the cooperative banks that establish new
regional banks according to the provisions of the law of 24 June 1994 concerningrestructuring of cooperative banks, BG Ż and change of some other laws;
- the income tax due for the year 1997 from the remaining cooperative banks up to the
equivalent of 70 per cent of the tax due for 1996.
The condition  making possible to use this abatement was to transfer at least 80 per cent of the
1996 balance surplus  to the undivided fund of cooperative banks' resources and transfer all the means
obtained due to the abstained taxes.
The estimated outcome of implementation of the above-mentioned ordinance  is for the 1996
budget – approximately ZI 50 million and for 1997 budget – about ZI 23 million.
The support actions undertaken in the period of 1994-1997 implemented inter alia in the form
of tax abatements or Treasury bonds for restructuring, contributed to improvement of the financial
standing of the cooperative banks.
It was reflected by  increase  of  net equity, total receivables  and improvement of the
solvency ratio of the cooperative banks as well as by decrease of the general loses of these banks.
4.9 Evaluation of the effects on trade
No effects of the foreign trade.
5. REDUCTION OF LIABILITIES RESULTING FROM SOCIAL INSURANCE
PREMIUMS
5.1 Purpose of the programme
Restructuring of the debts of state own enterprises and companies with the Treasury capital
share, resulted from non-payment of the contributions for the social insurance.
5.2 Legal basis
1. The state budget for 1997 enacted on 21 February 1997 (Journal of Laws No 19, item 106).
2. ordinance of  the Council of Ministers of 8 July 1997 concerning  terms of submitting the
applications, split principles and procedures for allocating by the budget of grants for restructuring the
debts resulted from non-payment of the contributions for social insurance (Journal of Laws No 81,
item 513).G/SCM/N/38/POL
Page 18
5.3 The government agency responsible for the programme implementation
The Minister of Finance
5.4 Form of the assistance
Grants from the state budget.
5.5 Basic characteristics
In 1997 the possibility to support the operation of state owned enterprises and the companies
whose stock is held by the Treasury trough extending grants from the state budget for  restructuring of
their debts related to non-payment of social insurance contributions, contracted before December 31,
1995, was maintained. The grants were awarded to those categories of state owned enterprises andcompanies whose stock is held by the Treasury, in  relation to which the following decisions become
binding in 1996:
- court decisions approving  the conciliatory agreements concluded pursuant to the provisions
the ordinance issued by the President of the Republic of Poland on 24 October 1934 – Law onConciliatory Proceedings (Journal of Laws No 93, item 836
 of 1950,  No 38, item 349 and of
1990 No 55, item 320 and of 1996 No 6, item  43 and No 43, item 1890);
- bank arrangement pursuant to the provisions of the law of 3 February 1993 concerning
financial restructuring of enterprises and banks and changes of some laws (Journal of LawsNo 18, item 82  of  1996, No 52, item 235, No 106, item 496, No 118, item 561 of 1997, No
98, item 603, No 141, item 943).
 
 The volume of the grants from the state budget  for repayment of the debts  was determined as
the amount not exceeding the product of the debt and the claims decrease ratio, of the debts subject of
the conciliation resulted from the conciliatory agreem ent,  or debt writing-off ratio resulted from the
bank arrangement. The volume of the grant calculated this way  cannot exceed 50 per cent of the totaldebt.  In companies with stock shared by the Treasury, the volume of the grants was calculated
proportionally to the Treasury’s share as per 31 December 1995.
 
 Moreover, the grant could not  be higher on the day of coming into force the conciliatory
agreement or court decision approving the arrangement.
 
 According to the provisions of the above-mentioned ordinance of 8 July 1997, decisions
concerning awarding the grants were taken by the Minister of Finance following the request of
founding organ of the enterprise or an agency representing the Treasury in the company.
 
 The awarded grants were transferred to the founding organ of the enterprise or an agency
representing the Treasury in the company, which in turn, was transferring the obtained funds to the
Social Insurance Office (ZUS).
 
 5.6 Amount of assistance granted
 
 In 1997 the state budget earmarked ZI 100 million for restructuring the debts of state owned
enterprises and  companies whose stock is held by the Treasury resulted from non-payment of social
insurance contributions.
 
 5.7 Duration  of the programme
 G/SCM/N/38/POL
Page 19
 The 1998 budget  does not provide resources for grants for restructuring the debts of state
owned enterprises and  companies whose stock is he ld by the Treasury resulted from non-payment of
social insurance contributions.
 
 5.8 Beneficiaries
 
 In 1997  the grants  for restructuring the debts resulted from non-payment of social insurance
contributions  were awarded to 65 businesses, including:
 
- 40 enterprises and companies subordinated to the Ministry of  Treasury;
- 25 enterprises and companies subordinated to Voivods.
5.9 Evaluation of the effects on trade
The state assistance provided in this form was meant to improve the liquidity of state owned
enterprises and companies whose stock is held by the Treasury, and the grants were awarded
irrespective from the markets the enterprises and comp anies used to sell their products ant services to.
The assistance supported implementation of restructuring of these enterprises and companies
and was supplementing the court or banking conciliatory arrangements, since the debts towards SocialInsurance Office (ZUS) are by the force of law excluded from the conciliatory arrangements.
The described form of the state assistance  in restructuring of state owned enterprises and
companies  of the stock held by the Treasury must not be confused with export and price equalization
subsidies, which unnaturally change relations between costs and prices.
6. GUARANTEES AND WARRANTS OF THE TREASURY
6.1 Purpose of the programme
Support of the investment efforts through facilitating access to loans
6.2 Legal basis
1. The law of  8 May 1997 concerning guarantees and warranties of the Treasury and some other
legal persons (Journal of Laws No 79, item 484, Journal of Laws No 80, item 511).
2. Ordinance of the Council of Ministers of 5 August 1997 concerning  detailed conditions and
procedures regarding extending by the Treasury guarantees and warranties and charges for the
guarantees or warrants extended (Journal of Laws No 99, item 606).
6.3 The government agency responsible for the programme implementation
The Council of Ministers and the Minister of Finance.
6.4 Form of the assistance
Warranting complete or partial repayment by the Treasury of  banking loans  and related
interests to national or international borrowers, provided that  the warranty value does not exceed
ECU 1.5 million.G/SCM/N/38/POL
Page 20
Extending guarantees to the foreign banks or foreign financial institutions to repay loans,
interests and other related costs, if international practices or procedures require such guarantee.
Warrants securing performance of obligations related to bonds.
Guaranteeing to national or foreign parties compensation for loses resulted by: default or
improper performance of obligations by state owned enterprises, local government units, state
administration agencies or businesses in which the Treasury holds majority stock or share,
guaranteeing agreements related to performance of investments and guarantees against ban on profits
transfer or ban on exchange of national currency into a the currency determined for payment.
6.5 Basic characteristics
The system of loan warrants and guarantees does not include any initial screening of the
firms. Businesses may apply for guarantee or warranty regardless of their  legal form of ownership
structure. However, the scope of loans that may be guaranteed by the Treasury is limited. The
Treasury guarantee may be provided for repayment of investment loans extended for the following
purposes:
• maintenance of the existing infrastructure,
• development of expert of products and services,
• environment protection,
• support of  adaptation and development processes in privatized state owned enterprises,
• introducing new technical or technological solutions resulted from research and development.
Also, repayment of the loan extended for purchase of materials or ready products for
performance of undertakings related to production of investment goods for export, the unit value of
which exceeds ECU 10 million and the production cycl e is not longer than 6 months may be covered
by the guarantee.
Only the liabilities related to bonds issued for public subscription, and which maturity period
is not less than one year from the date of issue can be covered by the guarantee.
The guarantee may be extended on the condition that the resources obtained due to the issue
would be destined for funding the undertakings that ensure maintenance or development of the
infrastructure and environment protection.
What concerns the guarantees for compensation of loses, such guarantee may be extended in
connection with implementing in Poland an investment crucially important for the national economyand related to the infrastructure development or environment protection and the forecasted period for
return of the invested capital is at least 5 years.
The warranties and guarantees are extended for fixed time and up to the amount determined
up-front. The total amount that may be covered by the warranties or guarantees of the Treasury is
determined in annual state budget.
The loan warranties or guarantees may cover up to 60 per cent of the consumed amount of the
guaranteed loan and up to 60 per cent of the relevant interests.G/SCM/N/38/POL
Page 21
Applications for guarantees or warranties are submitted to the Minister of Finance for the
approval. The Minister of Finance extends guarantees or warranties the value of which does not
exceed ECU 15 million and up to up to 60 per cent of the consumed amount of the guaranteed loan,
and up to 60 per cent of the relevant interests. In case of guarantees ensuring performance of liabilities
resulted from bonds – up to 60 per cent of the basic liability (the par value) and 60 per cent ofadditional liability (relevant interests).
In the remaining cases the warranties or guarantees are extended by the Council of Ministers.The condition for obtaining the warranty or guarantee is to issue of a bill of exchange or
providing a notary act in which the debtor declares  to surrender to the enforcement for the benefit of
the Treasury within the scope resulted from the extended guarantee, or provision of other type of
collateral determined by the guarantor.
Commission fees are charged for the extended guarantees of warranties. The commission fees
are transferred to the state budget.
6.6 Amount of  assistance granted
In 1997 seven businesses obtained guarantees to repay the local loans. The total amount of
these guarantees is ZI 708.6 million. Four other businesses obtained the Treasury guarantees to repay
international loans totalling ZI 451.7 million.
The total amount of Treasury guarantees extended in 1997 is ZI 1 160.3 million.The expenditures incurred by the Treasury in 1997 resulted from the extended guarantees for
defaulted local loans amounted to ZI 196.9 million, including repayment of the principals totalling ZI111.8 million and interests ZI 85.1 million.
The expenditures resulted from the defaulted international loans guaranteed and repaid by the
Treasury in 1997 amounted to ZI 0.3 million, including ZI 0.2 million for repayment of the principal
and ZI 0.1 million for interests.
6.7 Duration of the programme
The time frame for the programme of Treasury warrants and guarantees was not determined.
6.8 Beneficiaries
The guarantees and warrants extended by the Treasury in 1997 covered the banking loans for
financing the following undertakings (within the total amount of the guarantees and warranties
extended by the Treasury):
• two investments in modernization of steel and iron sector 42.27%
• investment in infrastructure in the transport sector 23.26%
• investment in infrastructure of food and agricultural sector 8.35%
• investment in modernization of the energy sector 4.44%
• investments in infrastructure carried out by local governments and municipal
enterprises (guarantees extended on behalf of the banking sector)9.58%
• investment in the construction sector 4.75%
• investment in pharmaceutical sector 7.35%G/SCM/N/38/POL
Page 22
6.9 Evaluation of the effects on trade
The guarantees and warranties extended by the Treasury involving repayment of  the
defaulted loans by the state budget are not supposed to directly influence the foreign trade.
7. CREDIT WARRANTS FOR SMALL AND MEDIUM ENTERPRISES
7.1 Purpose of the programme
SME support
7.2 Legal basis
Law of 8 May 1997 concerning guarantees and warrants of the Treasury and some other legal
persons (Journal of Laws No 79, item 484, Journal of Laws No 80, item 511).
7.3 The government agency responsible for the programme implementation
Minister of Finance
7.4 Form of the assistance
Loan guarantees
7.5 Basic characteristics
In 1994 the Loan Guarantee Fund was established in Bank Gospodarstwa Krajowego whose
mission includes implementing responsibilities delegated by the Minister of Finance. The purpose of
the Fund is to guarantee loans extended to SMEs.
ZI 45 million was allocated from the state budget to establish the Fund. In 1997, pursuant to
the provisions of the law of 8 May 1997 concerning guarantees and warranties of the Treasury and
some other legal persons, the Loan Guarantee Fund was transformed into National Loan Guarantee
Fund, and consequently the subjective and objective scope of the Fund was extended.
7.6 Amount of assistance granted
In 1997 Bank Gospodarstwa Krajowego extended 62 loan guarantees totalling
ZI 12.1 million.
7.7 Duration of the programme
The law does not determine the timeframe for loan guarantees extended to SMEs.
7.8 Beneficiaries
Currently any Polish business may apply to BGK for loan guarantee, irrespective of volume
of its income and employment level. Any invest ment loan or loan for purchase of production
materials or raw materials. The guarantees are provided up to 60 per cent of the used portion of theextended loan, and up to 60 per cent of the corresponding interests, or up to 70 per cent of the
principal excluding the interests.G/SCM/N/38/POL
Page 23
The maximum guaranteed amount must not exceed ECU 1.5 million. The guarantee is
extended after the debtor has provided the guaranto r with collateral in the form of a blank bill of
exchange or additionally is so required by the ba nk other collateral determined by BGK. Businesses
pay a fee for extending the guaranty, however BGK may charge a not more than 2 per cent of the
guarantee value. Guarantees may be obtained directly from BGK or through one of 33 banks whichhave concluded cooperation agreements with BGK (altogether 760 branches).
BGK may extend guarantees for banks loan portfolio of which the loans would be provided
for local businesses employing up to 250 persons and whose annual income does not exceed ECU 20
million, and balance sheet total does not exceed ECU 10 million. The amount of a single guarantee
within the portfolio must not exceed ECU 50 thousand, and must not exceed 50 per cent of the loan.
Moreover, in 1997 the scope of the guarantees extended by BGK from the resources of the
National Loan Guarantee Fund was broadened to include loans for financing repairs and
reconstruction of buildings and production assets and purchase of production and raw materials in
connection with liquidation the effects of 1997 floods. The maximum value of these guaranties wasset at 80 per cent of the used portion of the provided loan and 80 per cent of relevant interests. The
deadline for submitting the applications concerning  the guarantees for loans for liquidation of the
floods results expired on 31 December 1997.
7.9 Evaluation of the effects on trade
Considering the purposes of this programme, there is hardly or no impact on the foreign trade.
8. SUPPORT OF REGIONAL PROGRAMMES
8.1 Purpose of the programme
Increased financing of investments in restructuring and infrastructure in some regions of the
country.
8.2 Legal basis
1. Art. 37i, items 1 and 2 and art. 37h, item 2 of the law of 14 December 1994 concerning
employment and protection against unemployment (J ournal of Laws of 1997 No 25, item 128, No 41,
item 255, No 63, item 403, No 93, item 569, No 107, item 692, No 121, item 770, No 123, item 776).
2. Art. 27, item 2 of the 1997 budget (Journal of Laws No 19, item 106).3. Ordinance of the Council of Ministers of 30 April 1996 concerning procedures and conditions
for awarding grants from the state budget for in creased funding of investments in infrastructure
implemented within the system of public works as own responsibilities of the municipalities
especially endangered with high level of structural unemployment (Journal of Laws No 56, item 253
and of 1997, No 110, item 720).
4. Ordinance of the Council of Ministers of 25 March 1997 concerning scope procedures and
conditions of supporting implementation of regional restructuring programme with the 1997 budget
resources and establishing of local institutions (Journal of Laws No 31, item 175 and No 110, item
717).G/SCM/N/38/POL
Page 24
8.3 The government agency responsible for the programme implementation
The Minister of Finance and relevant Voivods.
8.4 Form of the assistance
Grants from the state budget.
8.5 Basic characteristics
In 1997 the following restructuring investments categorized in the following regional
programmes were supported financially with grants from the state budget:
1. Restructuring programme for the Voivodship of Koszalin,2. Restructuring programme for the Voivodship of Łódź,
3. Restructuring  programme for the Voivodship of Wa łbrzych,
4. Programme including investments determined in Environment Protection Programme –
MASTERPLAN for the Region of Mazurian Great Lakes and co-financed by the Foundation for
Protection of Great Mazurian Lakes in Gi życko which are carried out by municipalities of Olsztyn
and Suwa łki Voivodships.
Grants from the state budget for increased funding of investments in infrastructure
implemented within the system of public works as own responsibilities of the municipalities
especially endangered with high level of structural unemployment were projected for investmentsconcerning water, energy and heat supply, sewage and municipal water treatment plants, sanitary
appliances, waste disposal and recycling, municipal roads and streets, gas pipelines and gas
processing plants and sport and recreations utilities.
8.6 Amount of  assistance granted
In 1997 ZI 57.5 million was expended for increased funding of regional programmes. In the
state budget for 1998 ZI 60.0 million was earmarked for this purpose.
Grants for increased funding of investments in infrastructure implemented within the system
of public works as own responsibilities of the municipalities especially endangered with high level of
structural unemployment amounted in 1997 to ZI 70.1 million. In the state budget for 1998 ZI 65.0
million was earmarked for this purpose.
8.7 Duration of the programme
The provisions of Ordinance of the Council of  Ministers of 25 March 1997 concerning scope,
procedures and conditions of supporting implementation of regional restructuring programme with the
1997 budget resources and establishing of local institutions (Journal of Laws No 31, item 175 and No
110, item 717) were binding in 1997 only. Implementation of regional restructuring programmes shall
be also supported with the resources from the state budget for 1998 (Art. 25, item 1, point 1 of the
1998 state budget of 19 February 1998 - Journal of  Laws No 28, item 156). Scope, procedures and
conditions of this support shall be determined by new ordinance of the Council of Ministers in this
respect. In 1997 regarding the increased financing by the resources from the state budget of
investments in infrastructure implemented within the system of public works as own responsibilities
of the municipalities especially endangered with high level of structural unemployment the
regulations of the ordinance of the Councils of Ministers of April 30, 1996 (Journal of Laws No 56,G/SCM/N/38/POL
Page 25
item 253 and of 1997 No 110, item 720) were binding . This ordinance will be also binding in 1998
(after correcting the regulations considering specific conditions that emerged in the municipalities
affected by 1997 floods).
8.8 Beneficiaries
In 1997 ZI 57.5 million was expended for increased funding of investments determined in
regional restructuring programmes.
68.8 per cent of these resources were expended for increased funding of own investments of
municipalities, 24.4 per cent for increased funding of businesses and 6.8 per cent for increased
funding of investments carried out  by other organizational units.
Grants from the state budget for increased funding of investments in infrastructure
implemented within the system of public works as own responsibilities of the municipalities
especially endangered with high level of structural unemployment amounted in 1997 to ZI 70.1
million. This assistance was provided exclusively for increased financing of own investments ofmunicipalities in 18 Voivodships.
8.9 Evaluation of the effects on trade
No impact on the foreign trade.
9. RESTRUCTURING PROGRAMMEME FOR STEEL AND IRON INDUSTRY
9.1 Purpose of the programme
- improvement of economic effectiveness of steel and iron production through the technology
modernization (increase share of continuous steel founding processes from 8 per cent to 75
per cent) and adjusting the production potential and employment level to the market
requirements (decrease of  annual foundry ir on production  from 19 to 11.7 million tons, and
employment reduction from 147 to 43.5 thousand persons).
- adjusting the products range and quality to the current market demands;
- protection of the environment against damages caused by steel industry.
9.2 Legal basis
The 1997 state budget (Journal of Laws No 19, item 106) and ensuing state budgets in the
subsequent years of the programme operation.
9.3 The government agency responsible for the programme implementation
The Minister of Economy.
9.4 Form of the assistance
Government loans guarantees, specific grants.G/SCM/N/38/POL
Page 26
9.5 Basic characteristics
The programme of steel and iron industry restructuring provides for expending
US$1.8 million for investments and US$550 million for financial restructuring purposes. The
investment efforts are implemented based mostly on own resources of the steel plants and bankingloans, if necessary, guaranteed by the government. In the period 1995-2000 the needs related to credit
guarantees for the consecutive years – assuming the cu rrent dollar rate of exchange – are estimated at
ZI 520 million, 520 million, 950 million, 25 million and 10 million respectively.
9.6 Amount  of  assistance granted
In 1997 the guarantees extended within the scope of the guarantees programme amounted to
ZI 59.79 million and DEM 57.10 million. Also specific grant amounting to ZI 655 thousand was
awarded and loan amounting to ZI 12 million was extended.
9.7 Duration  of the programme
The programme of steel and iron industry restructuring covers the period of 1995-2000.
9.8 Beneficiaries
In 1997 one steel plant benefited from the credit guarantees.
One steel plant benefited also from the loan and specific grant.
9.9 Evaluation of the effects on trade
Considering the purposes of the programme, its impact on the foreign trade, if any, is not
direct and difficult to estimate.
10. RESTRUCTURING PROGRAMMEME FOR MINING SECTOR
10.1 Purpose of the programme
- increasing  the economic and technical effectiveness of the mines
- continuation of liquidation of permanently inefficient mines
- employment restructuring
- limitation of the hard coal production
- generating new jobs
 
 10.2 Legal basis
 
- Programme “Hard Coal Mining – the State and Sectoral Policy in the period 1996-2000”
adopted by the Council of Ministers on 30 April 1996;
- Law of 27 August 1997 concerning financial restructuring  of the hard coal mining enterprises
and introduction of hard coal dues;
- The 1997 state budget (Journal of  Laws No 19, item 106);G/SCM/N/38/POL
Page 27
- Ordinance of the Minister of Economy of 20 May 1997 concerning detailed  rules, procedures
and way of awarding and use of grants for mining;
- Ordinance of the Minister of Economy of 17 July 1997 concerning conditions to obtain
entitlements, ways of calculation, detailed rules and procedures of payment in 1997 of socialprotection allowances related to miners’ vacations, social welfare and one time allowances for
underground employees of mining sector.
10.3. The government agency responsible for the programme implementation
The Minister of Economy.
10.4. Form of the assistance
Direct subject grants, remission of liabilities and interests, writing off debts, relieve from
user’s fees and dues for exploitation of the environment.
10.5. Basic characteristics
The government programme provides support for restructuring of the mining sector through:
1. Direct support:
- subject  grants (mining damages, liquidation of mines, social protection allowances);
- investment grants,
2. Indirect support:
- leaving the interests of the principal at discretion of hard coal mining partnerships;
- guaranteeing repayment of banking loans;
- resignation from collecting part of the  income tax in order to facilitate  conciliatory
agreements of  hard coal mining partnerships;
- settlement of the hard coal partnerships' income tax obligations by supplies of the hard
coal to the state reserves.
 
 10.6. Amount of assistance granted
 
 Direct assistance in 1997:
 
 Hard coal mining:
 G/SCM/N/38/POL
Page 28
- grants for physical liquidation of the coal mines
- increased funding for alleviation of mining damages
- claims of former employees
- social protection allowances for dismissed employees
- remuneration in cash for dismissed workers
- liabilities towards creditors
- necessary expenditures  for liquidation
- creation of new jobs
- transfers and retrainingZI 452.92 million
ZI 37.2 million
ZI 46.5 million
ZI 59.9 million
ZI 7.1 millionZI 1.9 million
ZI 67.8 million
ZI 5.0 million
ZI 5.1 million
Grants from the state budget for increased funding of central government investments in
1997:
- total amount for hard coal mining ZI 16.2 millionMining of salt, sulfur and other minerals:
- total amount of grants: ZI 155.6 million
10.7. Duration  of the programme
Period of 1996-2000
10.8. Beneficiaries
The following entities of the hard coal mining sector obtained the assistance:
Type of grant Number of entities Average grant per grantee (in
millions ZI)
liquidation of mines
mining damages alleviationliabilities towards the creditorsexpenditures necessary for liquidationclaims of employees
social protection
cash allowances for dismissed workerscreation of new jobs39
23
247
62
9
1211.4
1.6
0.9516.9
0.8
16.7
3.6
13.1
In the sector of mining of salt, sulfur and other minerals in 1997 the grants were awarded to 8
entities, average grant was ZI 19.9 million
10.9. Evaluation of the effects on trade
                                                     
2 including ZI 8.9 million for  supervision of the restructuring processes (experts’ opinions, evaluation
of the liquidation processes and the costs related to the supervision over the liquidation)G/SCM/N/38/POL
Page 29
No direct effects on trade.
11. TAX INCENTIVES – SUPPLEMENTARY INFORMATION ON RECENT YEARS
11.1. Purpose of the programme
Protection of enterprises against bankruptcy or liquidation.
11.2. Legal basis
Law of 19 December 1980 concerning tax liabilities (Journal of Laws of 1993, No 108, item
486 and No  134, item 646 of  1995 No 5, item 25 and No 85, item 426 of 1996, No 75, item 357 andof 1997 No 121, item 770).
11.3. The government agency responsible for the programme implementation
The Minister of Finance and the tax authorities.
11.4. Form of the assistance
Remission of tax wholly or partially, deferring tax payments and providing possibility to pay
the taxes in instalments, forgiveness of overdue taxes wholly or partially.
11.5. Basic characteristics
The law regulates the rules concerning the emergence, execution and termination of tax
liabilities. The tax liability is the obligation result ed from the commitment to pay to the Treasury or to
local government a pecuniary performance called the tax. The liability arises when the decision
stating its value is delivered. In some economically and socially justified cases, the Minister of
Finance may order not to determine the tax value wholly or partially and resign from the tax
enforcement. Following the application of taxpayer the deadline for tax payment may be deferred or
the payment may be divided into instalments, however  in such situation the interests not exceeding 50
per cent are charged, unless the deferred tax payment is connected with bank arrangement or
conciliatory agreement.
In some economically and socially justified cases, the overdue taxes or interests on delayed
payments may be  wholly or partially forgiven (t ogether with the interests on the delayed payment) by
the Minister of Finance of by other tax authority.
11.6. Amount  of  assistance granted
1. in 1995
3
assessment and collection of taxes due to the Treasury was abolished as follows: value of the
abolished taxes from corporate entities: ZI 71.3 million and taxes from natural persons ZI 23.1
million.
 
2. in 1996
                                                     
 3 There are no financial data concerning payment the taxes due in instalments or deferring the payments
covering 1995 and preceding years.G/SCM/N/38/POL
Page 30
Assessment and collection of taxes due to the Treasury was abolished as follows: value of the
abolished taxes from corporate entities: ZI 141.2 million and taxes from natural persons ZI 12.5
million.
The value of the forgiven taxes not paid to the Treasury by corporate entities amounted to ZI
116.0 million, and by natural persons ZI 28.9 million. The total value of taxes allowed to be paid in
instalments amounted to ZI 612.6 million, including payments from lifted taxes ZI 116.6 million,
corporate income tax ZI 199.9 million, personal income tax ZI 162.4 million.
Moreover, the total amount of deferred tax payments totaled ZI 1 195.3 million including
lifted taxes – ZI 368.5 million, corporate income tax  ZI 664.4 million, personal income tax ZI 162.7
million.
iii) in 1997Assessment and collection of taxes due to the Treasury was abolished as follows: value of the
abolished taxes from corporate entities: ZI 104.3 million and taxes from natural persons ZI 16.7
million.
The value of the forgiven taxes not paid to the Treasury totaled ZI 643.7 million, including
lifted taxes ZI 491.6 million, corporate income tax ZI 106.9 million and personal income tax ZI 45.1
million.
The total value of taxes allowed to be paid in instalments amounted to ZI 443.8 million,
including payments from lifted taxes ZI 24.2 million, corporate income tax ZI 170.4 million, personalincome tax ZI 249.1 million.
Moreover, the total amount of deferred tax payments totaled ZI 813.4 million including lifted
taxes – ZI 98.7 million, corporate income tax ZI 444.5 million, personal income tax ZI 270.2 million.
11.7. Duration  of the programme
1. The law was binding till the end of 1997. From 1 January 1998 the new law of 13 November
1997 – Tax Code (journal of Laws No 137, item 926, No 160, item 1083) entered into force. The new
law replaced still binding law of 19 December 1990 concerning tax liabilities, and now this law is a
foundation of the tax system in Poland.
11.8. Beneficiaries
Natural and legal persons; any taxpayer may apply for tax relief.
11.9. Evaluation of the effects on trade
Considering the purposes of this programme, there is no direct impact on the foreign trade.
B. GRANTS FOR THE INDUSTRIAL SECTOR AWARDED IN 1997 – NEW
PROGRAMMES
1. SUPPORT FOR SPECIAL ECONOMIC ZONES - SPECIAL ECONOMIC ZONE OF
CZĘSTOCHOWAG/SCM/N/38/POL
Page 31
1.1 Purpose of the programme
Creation of new jobs.
Economic activation of the region through stimulation of investments in infrastructure needed
by Częstochowa to become a modern tourist – pilgrimage center.
1.2 Legal basis
Ordinance of the Council of Ministers of 9 September  1997 concerning establishment of
special economic zone in Cz ęstochowa (Journal of Laws No 135, item 902)
1.3 The government agency responsible for the programme implementation
The Minister of Economy
1.4 Form of the assistance
An entrepreneur having a permission to operate in the zone may be granted the following
forms of assistance:
1. Those investing ECU 1500 thousand, or empl oying 100 workers may obtain the following
benefits:
• full exemption from the income tax for the first 10 years of  operation;
• exemption from 50 per cent of the income tax in the following years till the end of the zone’s
operation.
2. For those investing less, the income equal to the invested amount is exempted from the
income tax, or if the employment level is the reason for the tax exemptions, the tax exemption is equal
to 10 per cent for every 10 employed, however not more than 100 per cent.
3. The entrepreneur  having no title to tax exemptions may obtain the following forms of the
assistance:
• increase of the depreciation rate of fixed assets (accelerated depreciation);
• including the costs of purchase of non-material, legal values into the costs of obtaining the
income in given fiscal year.
The above mentioned forms of the assistance may be applied alternatively.
1.5 Basic characteristics
The zone of the area of 144 hectares was established in the territory of the municipality of
Rędziny. The purpose is to create modern economic and social infrastructure for the town and the
region. In the Voivodship of Cz ęstochowa in 1995 the GNP rate was 80.8 per cent per capita. The
special economic zone located near the city of Cz ęstochowa should allow to create there an
industrialized area that guarantees jobs for the local population and for the nearby region of Silesia. It
is estimated that establishment of the zone will result with creation of 10 thousand of new jobs in the
zone and in the influenced areas.G/SCM/N/38/POL
Page 32
Taking into account the natural and human resources of the region, the preferential industries
include electrical machinery, electro-technics, agri cultural and food processing, construction materials
and light industry.
1.6 Amount  of  assistance granted
In 1997 the assistance was not provided.
1.7 Duration  of the programme
For 20 years in the period 1997-2017
1.8 Beneficiaries
No beneficiaries in 1997
1.9 Evaluation of the effects on trade
The applied instruments do not directly impact the foreign trade.
There are no pro-export preferences.
2. SUPPORT FOR SPECIAL ECONOMIC ZONES – SPECIAL ECONOMIC ZONE OF
KOSTRZYN – S ŁUBICE REGION
2.1 Purpose of the programme
Creation of new jobs through establishment of  strong high-tech based industrial center.
Creation of close-border Center for Cooperat ion with the Federal Republic of Germany.
Radical decrease of the unemployment level, particularly in rural areas.
2.2 Legal basis
Ordinance of the Council of Ministers of 9 September 1997 concerning establishment of
special economic zone in  Kostrzy ń –Słubice region (Journal of Laws No 135, item 904)
2.3 The government agency responsible for the programme implementation
The Minister of Economy
2.4 Form of the assistance
An entrepreneur having a permission to operate in the zone may be granted the following
forms of assistance:
1. Those investing ECU 1000 thousand, or em ploying 50 workers may obtain the following
benefits:
• full exemption from the income tax for the first 10 years of  operation;G/SCM/N/38/POL
Page 33
• exemption from 50 per cent of the income tax in the following years till the end of the zone’s
operation.
2. For those investing less, the income equal to the invested amount is exempted from the
income tax, or if the employment level is the reason for the tax exemptions, the tax exemption is equal
to 10 per cent for every 10 employed, however not more than 100 per cent.
 
3. The entrepreneur  having no title to tax exemptions may obtain the following forms of theassistance:
• increase of the depreciation rate of fixed assets (accelerated depreciation);
• including the costs of purchase of non-material, legal values into the costs of obtaining the
income in given fiscal year.
The above mentioned forms of the assistance may be applied alternatively.
2.5  Basic characteristics
The zone of the area of 144 hectares was established in the territory of  the urban municipality
of Kostrzy ń on Odra River and municipality of S łubice. The unemployment rate in the area of the
zone drastically exceeds the national average and in 1996 amounted to 23 per cent, and in 1995 GDP
per capita was 83.5 per cent. The main reasons for such a bad socio-economic situation is the collapse
of state owned farms (PGRs) and low level of indus trialization of the region. The main activity of the
people of the region is the bazaar type trade, and therefore it is necessary to create alternativepossibilities, since the bazaar trade declines due to construction of supermarkets on both sides of the
border.
It is estimated that  due to establishment of the zone the targeted  increase of the number of
new jobs in the zone and in the neighbouring areas would come to 9 thousand.
2.6 Amount of assistance granted
In 1997 the assistance was not provided.
2.7 Duration of the programme
For 20 years in the period 1997-2017
2.8 Beneficiaries
No beneficiaries in 1997
2.9 Evaluation of the effects on trade
The applied instruments do not directly impact the foreign trade.
There are no pro-export preferences.G/SCM/N/38/POL
Page 34
3. SUPPORT FOR SPECIAL ECONOMIC ZONES - SPECIAL ECONOMIC ZONE OF
KAMIENNA GÓRA
3.1 Purpose of the programme
Limitation of unemployment.
Making productive the assets left over after liquidated enterprises.Development of small and medium size entrepreneurship the environment friendly industries.
3.2 Legal basis
Ordinance of the Council of Ministers of 9 September 1997 concerning establishment of
special economic zone in Kostrzy ń –Słubice region (Journal of Laws No 135, item 903)
3.3 The government agency responsible for the programme implementation
The Minister of Economy
3.4 Form of the assistance
An entrepreneur having a permission to operate in the zone may be granted the following
forms of assistance:
1. Those investing ECU 400 thousand, or employing 40 workers may obtain the following
benefits:
• full exemption from the income tax for the first 10 years of  operation;
• exemption from 50 per cent of the income tax in the following years till the end of the zone’s
operation.
2. For those investing less, the income equal to the invested amount is exempted from the
income tax, or if the employment level is the reason for the tax exemptions, the tax exemption is equal
to 10 per cent for every 10 employed, however not more than 100 per cent.
 
3. The entrepreneur  having no title to tax exemptions may obtain the following forms of the
assistance:
• increase of the depreciation rate of fixed assets (accelerated depreciation);
• including the costs of purchase of non-material, legal values into the costs of obtaining the
income in given fiscal year.
The above mentioned forms of the assistance may be applied alternatively.
3.5 Basic characteristics
The zone of the area of 234 hectares was established in the territory of the town of Kamienna
Góra.G/SCM/N/38/POL
Page 35
As the result of the systemic transformations, the light industry that used to prevail  in the
Voivodship of Jelenia Góra (silk and linen production) - similarly  to the other regions of the country
– was affected with deep recession. After 1990, 20 light industry enterprises were liquidated because
of economic reasons, which consequently increased the unemployment rate in the region of Kamienna
Góra to 24.3 per cent  at the end of 1996. In 1995 the per capita GDP in the Voivodship of JeleniaGóra was 82.2 per cent. It is estimated that  due to establishment of the zone the targeted  increase of
new jobs in the zone and in the neighbouring areas would come to 4.5 thousand.
Taking into account the natural and landscape values of the region as well as business
traditions of the people of the region, the preferential activities to be performed in the zone include
garment production, plastic products, office supplies production, traditional crafts and souvenirs.
3.6 Amount  of  assistance granted
In 1997 the assistance was not provided.
3.7 Duration of  the programme
For 20 years in the period 1997-2017
3.8 Beneficiaries
No beneficiaries in 1997
3.9 Evaluation of the effects on trade
The applied instruments do not directly impact the foreign trade.
There are no pro-export preferences.
4. SUPPORT FOR SPECIAL ECONOMIC ZONES - SPECIAL ECONOMIC ZONE –
TECHNOLOGICAL PARK OF CRACOW
4.1 Purpose of the programme
Development of the high-tech sector using the R&D potential of the universities and research
institutes of Krakow.
Stimulation the process of emerging  new enterprises in the high-tech dependent sectors.
Effective use of the available land, including post-industrial areas and the existing technical
infrastructure, without the need to expand the industrial areas of the city.
4.2 Legal basis
Ordinance of the Council of Ministers of 14 October 1997 concerning establishment of
special economic zone – technological park of Krakow  (Journal of Laws No 135, item 912)
4.3 The government agency responsible for the programme implementation
The Minister of Economy
4.4 Form of the assistanceG/SCM/N/38/POL
Page 36
An entrepreneur having a permission to operate in the zone may be granted the following
forms of assistance:
1. Those investing ECU 2 000 thousand may obtain the following benefits: full exemption from
the income tax for the first 6 years of  operation, exemption from 50 per cent of the income tax in the
following years till the end of the zone’s operation.
 
2. For those investing less, the income equal to the invested amount is exempted from the
income tax.
 
3. The entrepreneur  having no title to tax exemptions may obtain the following forms of theassistance:
• increase of the depreciation rate of fixed assets (accelerated depreciation);
• including the costs of purchase of non-material, legal values into the costs of obtaining the
income in given fiscal year.
The above mentioned forms of the assistance may be applied alternatively.
4.5 Basic characteristics
The zone of the area of 66 hectares was established in Krakow, in the territory of the
academic campuses of the Jagiellonian University, Polytechnic University of Krakow and unused land
of the steel plant named after T. S ędzimir.
The zone will accommodate firms, research centers and institutions dealing with modern
technology transfer with particular focus on high vacuum techniques, medical and materialsengineering, biotechnology and genetic engineering, as well as laboratory and industrial measurement
devices.
4.6 Amount  of  assistance granted
In 1997 the assistance was not provided.
4.7 Duration  of the programme
For 12 years in the period 1998-2010
4.8 Beneficiaries
No beneficiaries in 1997
4.9 Evaluation of the effects on trade
The applied instruments do not directly impact the foreign trade.
There are no pro-export preferences.G/SCM/N/38/POL
Page 37
5. SUPPORT FOR SPECIAL ECONOMIC ZONES - SPECIAL ECONOMIC ZONE –
MAZOVIA TECHNOPARK OF MODLIN
5.1 Purpose of the programme
Transfer of modern techniques and technologies to the industrial branches preferred in the
zone in cooperation with inter alia scientific and education and research and development centers of
Warsaw.
Stimulation the process of emerging  new enterprises in the high-tech dependent sectors.
Generating new jobs in the North Mazovia region, which is endangered by structural unemployment
in agricultural sector.
5.2  Legal basis
Ordinance of the Council of Ministers of 14 October 1997 concerning establishment of
special economic zone – Mazovia Technopark of Modlin (Journal of Laws No 135, item 911)
5.3 The government agency responsible for the programme implementation
The Minister of Economy
5.4 Form of the assistance
An entrepreneur having a permission to operate in the zone may be granted the following
forms of assistance:
1. Those investing ECU 2 000 thousand may obtain the following benefits: full exemption from
the income tax for the first 6 years of  operation, exemption from 50 per cent of the income tax in the
following years till the end of the zone’s operation.
 
2. For those investing less, the income equal to the invested amount is exempted from the
income tax.
 
3. The entrepreneur  having no title to tax exemptions may obtain the following forms of theassistance:
• increase of the depreciation rate of fixed assets (accelerated depreciation);
• including the costs of purchase of non-material, legal values into the costs of obtaining the
income in given fiscal year.
The above mentioned forms of the assistance may be applied alternatively.
5.5 Basic characteristics
The zone of the area of 1256 hectares was established in the territory of the municipalities of:
Zakroczym, Nowy Dwór Mazowiecki, and Pomiechówek. The zone includes the military airfield that
together with its auxiliary units covers the area of 900 hectares. The future transformation of the
military airfield into passenger and cargo airport is planned.  The special economic zone was
established within the scope of the project  “Mazovia Economic Development Zone” aimed atcomplex solution of current and future social and economic problems of the Northern Mazovia region,
through developing  a strong regional development center.G/SCM/N/38/POL
Page 38
Investments required high inputs related to advanced technologies in the area of electronics,
industrial automation, materials engineering, biotechnology and agricultural and food processing will
be preferential.
5.6 Amount  of assistance granted
In 1997 the assistance was not provided.
5.7 Duration  of the programme
For 12 years in the period 1998-2010
5.8 Beneficiaries
No beneficiaries in 1997
5.9 Evaluation of the effects on trade
The applied instruments do not directly impact the foreign trade.
There are no pro-export preferences.
6. SUPPORT FOR SPECIAL ECONOMIC ZONES - SPECIAL ECONOMIC ZONE –
STARACHOWICE
6.1 Purpose of the programme
Generating of the new jobs.
Utilization of the redundant infrastructure of the „STAR” track factory.Development of local technical potential through the transfer of modern technologies.
6.2 Legal basis
Ordinance of the Council of Ministers of 14 October 1997 concerning establishment of
special economic zone in Starachowice (Journal of Laws No 135, item 906)
6.3 The government agency responsible for the programme implementation
The Minister of Economy
6.4 Form of the assistance
An entrepreneur having a permission to operate in the zone may be granted the following
forms of assistance:
1. Those investing ECU 1000 thousand, or empl oying 100 workers may obtain the following
benefits:
• full exemption from the income tax for the first 10 years of  operation;G/SCM/N/38/POL
Page 39
• exemption from 50 per cent of the income tax in the following years till the end of the zone’s
operation.
2. For those investing less, the income equal to the invested amount is exempted from the
income tax, or if the employment level is the reason for the tax exemptions, the tax exemption is equal
to 10 per cent for every 10 employed, however not more than 100 per cent.
 
3. The entrepreneur  having no title to tax exemptions may obtain the following forms of theassistance:
• increase of the depreciation rate of fixed assets (accelerated depreciation);
• including the costs of purchase of non-material, legal values into the costs of obtaining the
income in given fiscal year.
The above mentioned forms of the assistance may be applied alternatively.
6.5 Basic characteristics
The zone was created on the unused territory of the truck production plant “STAR” S.A.
covering the area of  124 hectares, located in the town of Starachowice. The economic decline of the
major factory - the truck production plant “STAR” S.A., which as recently as in 1989 employed 25
thousand workers was the reason of the decline of the whole region. The unemployment rate in
Starachowice  in 1996 was 29.2 per cent doubling the national average. The per capita GDP was 72.8
per cent in 1995. It is estimated that  due to establishment of the zone the targeted  increase of  newjobs in the zone and in the neighbouring areas would come to 4.5 t housand.
Taking into account  the natural  and human resources  of the region, the preferential activities
in the zone include: precision mechanics, automotive industry, metallurgy, timber and wood
processing, construction materials.
6.6 Amount  of the assistance granted
In 1997 the assistance was not provided.
6.7. Duration of the programme
For 20 years in the period 1997-2017
6.8 Beneficiaries
No beneficiaries in 1997
6.9 Evaluation of the effects on trade
The applied instruments do not directly impact the foreign trade.
There are no pro-export preferences.G/SCM/N/38/POL
Page 40
7. SUPPORT FOR SPECIAL ECONOMIC ZONES - SPECIAL ECONOMIC ZONE OF
TARNOBRZEG
7.1 Purpose of the programme
Limitation of the structural unemployment.
Minimizing the negative outcome of restructuring of sulfur and military industries.Diversification of the industry with special focus on that industry lines capable to use the
existing human and environmental resources and the existing technical potential.
7.2 Legal basis
Ordinance of the Council of Ministers of 9 September 1997 concerning establishment of
special economic zone of Tarnobrzeg (Journal of Laws No 135, item 907)
7.3 The government agency responsible for the programme implementation
The Minister of Economy
7.4 Form of the assistance
An entrepreneur having a permission to operate in the zone may be granted the following
forms of assistance:
1. Those investing ECU 2000 thousand, or empl oying 100 workers may obtain the following
benefits:
• full exemption from the income tax for the first 10 years of  operation;
• exemption from 50 per cent of the income tax in the following years till the end of the zone’s
operation.
2. For those investing less, the income equal to the invested amount is exempted from the
income tax, or if the employment level is the reason for the tax exemptions, the tax exemption is equal
to 10 per cent for every 10 employed, however not more than 100 per cent.
 
3. The entrepreneur  having no title to tax exemptions may obtain the following forms of the
assistance:
• increase of the depreciation rate of fixed assets (accelerated depreciation);
• including the costs of purchase of non-material, legal values into the costs of obtaining the
income in given fiscal year.
The above mentioned forms of the assistance may be applied alternatively.
7.5 Basic characteristics
The zone was created on the territory of the town and municipality of Nowa D ęba, the  city of
Tarnobrzeg, the town and municipality of Staszów, municipality of Tucz ępy and the city of Stalowa
Wola. The deep recession in the sulfur extraction an d processing industry and in the military industryG/SCM/N/38/POL
Page 41
(steel plant of Stalowa Wola and mechanical enterprise “Damzet”) resulted with rapid growth of
unemployment rate reaching the level of 22 per cent in 1996, and GDP per capita dropped to 81.3 per
cent in 1995. It is estimated that establishment of the zone will result with creation of 11 thousand of
new jobs in the zone and in the influenced areas.
Taking into account  the existing  technical potential as well as  the natural resources of the
region, the preferential activities in the zone include: electro-machine industry,  timber and wood
processing, agricultural and food processing.
7.6 Amount  of  assistance granted
In 1997 the assistance was not provided.
7.7 Duration of the programme
For 20 years in the period 1997-2017
7.8 Beneficiaries
No beneficiaries in 1997
7.9 Evaluation of the effects on trade
The applied instruments do not directly impact the foreign trade.
There are no pro-export preferences.
8. SUPPORT FOR SPECIAL ECONOMIC ZONES - SPECIAL ECONOMIC ZONE OF
TCZEW
8.1 Purpose of the programme
Generating new jobs.
Stimulating the economic development  of the region and changing the industry structure
focusing those branches capable to  use the ex isting human and environmental resources and the
existing technical potential.
8.2 Legal basis
Ordinance of the Council of Ministers of September 9, 1997 concerning establishment of
special economic zone in  of Tczew (Journal of Laws No 135, item 908)
8.3 The government agency responsible for the programme implementation
The Minister of Economy
8.4 Form of the assistance
An entrepreneur having a permission to operate in the zone may be granted the following
forms of assistance:G/SCM/N/38/POL
Page 42
1. Those investing ECU 1000 thousand, or empl oying 100 workers may obtain the following
benefits:
• full exemption from the income tax for the first 10 years of  operation;
• exemption from 50 per cent of the income tax in the following years till the end of the zone’s
operation.
2. For those investing less, the income equal to the invested amount is exempted from the
income tax, or if the employment level is the reason for the tax exemptions, the tax exemption is equal
to 10 per cent for every 10 employed, however not more than 100 per cent.
 
3. The entrepreneur  having no title to tax exemptions may obtain the following forms of the
assistance:
• increase of the depreciation rate of fixed assets (accelerated depreciation);
• including the costs of purchase of non-material, legal values into the costs of obtaining the
income in given fiscal year.
The above mentioned forms of the assistance may be applied alternatively.
8.5 Basic characteristics
The zone was created on area of 102 hectares in the territory of the urban municipality of
Tczew and the municipal area of Tczew. The deep recession in the  shipbuilding industry as well ascollapse of state owned farms resulted with rapi d growth of unemployment rate the level of 24 per
cent in 1996 which is twice the national average. It is estimated that establishment of the zone will
result with creation of 4.5 thousand of new jobs in the zone and in the influenced areas.
Taking into account  the existing  technical potential as well as  the natural resources of the
region, the preferential activities in the zone include: metal industry, machine industry and
agricultural and food processing.
8.6 Amount of assistance granted
In 1997 the assistance was not provided.
8.7 Duration of the programme
For 20 years in the period 1997-2017
8.8 Beneficiaries
No beneficiaries in 1997
8.9 Evaluation of the effects on trade
The applied instruments do not directly impact the foreign trade.
There are no pro-export preferences.G/SCM/N/38/POL
Page 43
9. SUPPORT FOR SPECIAL ECONOMIC ZONES - SPECIAL ECONOMIC ZONE OF
WARMIA AND MAZURY REGION
9.1 Purpose of the programme
Generating new jobs.
Protection from gradual social and economic deterioration of the region.Efficient use of the raw materials for agricultural food processing and timber industries.Implementation of new solutions  based on modern  technologies used in the industry lines
preferred in the zone.
Expanding possibilities of multi-tier cooperation with the district of Kaliningrad (Russia).
9.2 Legal basis
Ordinance of the Council of Ministers of 9 September 1997 concerning establishment of
special economic zone of Warmia and Mazury region (Journal of Laws No 135, item 909)
9.3 The government agency responsible for the programme implementation
The Minister of Economy
9.4 Form of the assistance
An entrepreneur having a permission to operate in the zone may be granted the following
forms of assistance:
1. Those investing ECU 350 thousand, or employing 50 workers may obtain the following
benefits:
• full exemption from the income tax for the first 10 years of  operation;
• exemption from 50 per cent of the income tax in the following years till the end of the zone’s
operation.
2. Those investing less, the income equal to the invested amount is exempted from the income
tax, or if the employment level is the reason for the tax exemptions, the tax exemption is equal to
10 per cent for every 10 employed, however not more than 100 per cent.
 
3. The entrepreneur  having no title to tax exemptions may obtain the following forms of theassistance:
• increase of the depreciation rate of fixed assets (accelerated depreciation);
• including the costs of purchase of non-material, legal values into the costs of obtaining the
income in given fiscal year.
The above mentioned forms of the assistance may be applied alternatively.G/SCM/N/38/POL
Page 44
9.5 Basic characteristics
The zone of the area of 335 hectares was created on the territory of the town of Dobre Miasto,
urban  municipality of Bartoszyce, municipal area  of Bartoszyce and municipality of Szczytno. The
Voivodship of Olsztyn is the region particularly affected with structural unemployment, hardlyattractive for investors, who unless granted incentives, would prefer to invest in other more developed
regions, near big urban centers. The unemployment rate in 1996 was 23.8 per cent  which is double
the national average (collapse of state owned farms  and enterprises) and GDP per capita  in  Olsztyn
Voivodship was 76.6 per cent in 1995. It is estimated that establishment of the zone will result with
creation of 10 thousand of new jobs in the zone and in the influenced areas.
Taking into account  the existing  technical potential as well as  the natural resources of the
region, the preferential activities in the zone include: agricultural and food processing, timber wood
industry and fodder production.
9.6 Amount  of  assistance granted
In 1997 the assistance was not provided.
9.7 Duration of the programme
For 20 years in the period 1997-2017
9.8 Beneficiaries
No beneficiaries in 1997
9.9 Evaluation of the effects on trade
The applied instruments do not directly impact the foreign trade.
There are no pro-export preferences.
10. SUPPORT FOR SPECIAL ECONOMIC ZONES - SPECIAL ECONOMIC ZONE OF
KATOWICE
10.1 Purpose of the programme
Generating new jobs.
Changing the industrial structure of the region  to replace the traditional heavy industry
(mining, steel production) with modern economic structure.
10.2 Legal basis
Ordinance of the Council of Ministers of 18 June 1996 concerning establishment of special
economic zone in Voivodship of Katowice (Journal of Laws No 88, item 397, Journal of Laws of
1997 No 28, item 155)
10.3 The government agency responsible for the programme implementation
The Minister of EconomyG/SCM/N/38/POL
Page 45
10.4 Form of the assistance
An entrepreneur having a permission to operate in the zone may be granted the following
forms of assistance:
1. Those investing ECU 2000 thousand, or empl oying 100 workers may obtain the following
benefits:
• full exemption from the income tax for the first 10 years of  operation;
• exemption from 50 per cent of the income tax in the following years till the end of the zone’s
operation.
2. For those investing less, the income equal to the invested amount is exempted from the
income tax, or if the employment level is the reason for the tax exemptions, the tax exemption is equal
to 10 per cent for every 10 employed, however not more than 100 per cent.
 
3. The entrepreneur  having no title to tax exemptions may obtain the following forms of the
assistance:
• increase of the depreciation rate of fixed assets (accelerated depreciation);
• including the costs of purchase of non-material, legal values into the costs of obtaining the
income in given fiscal year.
The above mentioned forms of the assistance may be applied alternatively.
10.5 Basic characteristics
The zone was created on the area of 827 hectares located in the territory of the municipality of
Godów and Paw łowice and the city of D ąbrowa Górnicza, Gliwice, Jastrz ębie Zdrój, Sosnowiec,
Tychy and Żory in order to support restructuring of heavy industry in Silesia – mostly hard coal
mining and steel industry.
It is estimated that establishment of the zone will result with creation of 25 thousand of new
jobs in the zone and in the influenced areas.The zone supports development of industries based on advanced environment friendly technologies.
10.6 Amount  of  assistance granted
In 1997 – ZI 1 779 thousand.
10.7 Duration  of the programme
For 20 years in the period 1996-2016
10.8 Beneficiaries
In 1997 – one enterprise
10.9 Evaluation of the effects on trade
The applied instruments do not directly impact the foreign trade.G/SCM/N/38/POL
Page 46
There are no pro-export preferences
11. SUPPORT FOR SPECIAL ECONOMIC ZONES - SPECIAL ECONOMIC ZONE OF
LEGNICA
11.1 Purpose of the programme
Generating new jobs.
Reactivation the deteriorated areas returned by the Soviet Army (Krzywa airfield – 206
hectares);
 Support of planned restructuring of copper  industry that will limit the employment.
11.2 Legal basis
Ordinance of the Council of Ministers of 15 April 1997 concerning establishment of special
economic zone in Legnica (Journal of Laws No 44, item 274)
11.3 The government agency responsible for the programme implementation
The Minister of Economy
11.4 Form of the assistance
An entrepreneur having a permission to operate in the zone may be granted the following
forms of assistance:
1. Those investing ECU 850 thousand, or employing 100 workers may obtain the following
benefits:
• full exemption from the income tax for the first 10 years of  operation;
• exemption from 50 per cent of the income tax in the following years till the end of the zone’s
operation.
2. For those investing less, the income equal to the invested amount is exempted from the
income tax, or if the employment level is the reason for the tax exemptions, the tax exemption is equal
to 10 per cent for every 10 employed, however not more than 100 per cent.
3. The entrepreneur  having no title to tax exemptions may obtain the following forms of the
assistance:
• increase of the depreciation rate of fixed assets (accelerated depreciation);
• including the costs of purchase of non-material, legal values into the costs of obtaining the
income in given fiscal year.
The above mentioned forms of the assistance may be applied alternatively.G/SCM/N/38/POL
Page 47
11.5 Basic characteristics
The zone, created on  the area of  383 hectares includes three districts located in the territory
of the urban municipality of Legnica and Polkowice , municipality Warta Boles ławiecka and
Gromadka.
The zone was established in order to create an alternative for homogeneity of copper industry,
and to reactivate the areas degraded by the Soviet Army that used to station in Krzywa.
It is estimated that establishment of the zone will result with creation of 15 thousand of new
jobs in the zone and in the influenced areas.
The industry lines preferred  by the zone tale into account local industrial traditions, i.e.
production of musical instruments, industrial chemistry and development of new branches, such as
machine, metal, automotive (spare parts and accessories) industrial plants processing.
11.6 Amount of assistance granted .
In 1997 the assistance was not provided.
11.7 Duration  of the programme
For 20 years in the period 1997-2017
11.8 Beneficiaries
No beneficiaries in 1997
11.9 Evaluation of the effects on trade
The applied instruments do not directly impact the foreign trade.
There are no pro-export preferences.
12. SUPPORT FOR SPECIAL ECONOMIC ZONES - SPECIAL ECONOMIC ZONE OF
ŁÓDŹ
12.1 Purpose of the programme
New jobs creation.
Supporting the restructuring of the textile industry.Increase  the economic activity level.Utilization of industrial plants left after liquidated state owned enterprises.
12.2 Legal basis
Ordinance of the Council of Ministers of 15 April 1997 concerning establishment of special
economic zone in Łódź (Journal of Laws No 46, item 289)G/SCM/N/38/POL
Page 48
12.3 The government agency responsible for the programme implementation
The Minister of Economy
12.4 Form of the assistance
An entrepreneur having a permission to operate in the zone may be granted the following
forms of assistance:
1. Those investing ECU 2000 thousand, or empl oying 100 workers may obtain the following
benefits:
• full exemption from the income tax for the first 10 years of  operation;
• exemption from 50 per cent of the income tax in the following years till the end of the zone’s
operation.
2. For those investing less, the income equal to the invested amount is exempted from the
income tax, or if the employment level is the reason for the tax exemptions, the tax exemption is equalto 10 per cent for every 10 employed, however not more than 100 per cent.
 
3. The entrepreneur  having no title to tax exemptions may obtain the following forms of the
assistance:
• increase of the depreciation rate of fixed assets (accelerated depreciation);
• including the costs of purchase of non-material, legal values into the costs of obtaining the
income in given fiscal year.
The above mentioned forms of the assistance may be applied alternatively.
12.5 Basic characteristics
The zone was created on the area of 208.5 hectares located in the territory of the following
cities: Łódź, Zgierz, Ozorków and municipality of Pabian ice in order to support restructuring of the
textile industry and to ease the effects of the recession in this branch of the industry. Theunemployment rate in 1996 was 16.4 per cent i.e. 15 per cent than the national average. It is estimated
that establishment of the zone will result with creation of 15 thousand of new jobs in the zone and in
the influenced areas.
The activities preferred by the zone include development of traditional industries such as
chemistry, pharmaceutical, precise and other industry lines based on modern technologies and
producing  environment protection appliances.
12.6 Amount of  assistance granted.
In 1997 the assistance was not provided.
12.7 Duration  of the programme
For 20 years in the period 1997-2017G/SCM/N/38/POL
Page 49
12.8 Beneficiaries
No beneficiaries in 1997
12.9 Evaluation of the effects on trade
The applied instruments do not directly impact the foreign trade.
Since it is not allowed there are no pro-export preferences.
13. SUPPORT FOR SPECIAL ECONOMIC ZONES - SPECIAL ECONOMIC ZONE OF
SŁUPSK
13.1 Purpose of the programme
Creation of new jobs.
Utilization of non-used  natural resources  w ith maintaining environmental balance  and use
of the existing assets and economic infrastructure.
13.2 Legal basis
Ordinance of the Council of Ministers of 9 September 1997 concerning establishment of
special economic zone in S łupsk (Journal of Laws No 135, item 905)
13.3 The government agency responsible for the programme implementation
The Minister of Economy
13.4 Form of the assistance
An entrepreneur having a permission to operate in the zone may be granted the following
forms of assistance:
1. Those investing ECU 700 thousand, or employing 100 workers may obtain the following
benefits:
• full exemption from the income tax for the first 10 years of  operation;
• exemption from 50 per cent of the income tax in the following years till the end of the zone’s
operation.
2. For those investing less, the income equal to the invested amount is exempted from the
income tax, or if the employment level is the reason for the tax exemptions, the tax exemption is equal
to 10 per cent for every 10 employed, however not more than 100 per cent.
 
3. The entrepreneur  having no title to tax exemptions may obtain the following forms of theassistance:
• increase of the depreciation rate of fixed assets (accelerated depreciation);G/SCM/N/38/POL
Page 50
• including the costs of purchase of non-material, legal values into the costs of obtaining the
income in given fiscal year.
The above mentioned forms of the assistance may be applied alternatively.
13.5 Basic characteristics
The zone was created on the area of 136 hectares located in  territory of the town and
municipality of S łupsk.
The industrialization level of the Voivodship of S łupsk is very low. Before 1989 most of the
jobs were offered by state owned farms, which in effect of the systemic transformations were
liquidated. As the result the per capita GDP dropped to 66.3 per cent in 1995 and the unemploymentrate is one of the highest in the country - –5.7 per cent in 1996 – i.e. more than twice-national average.
Establishment of the special economic zone is intended to address these negative phenomena.
The targeted increase of jobs  in and outside the zone  is estimated at 10 thousand.
Taking into account the specific features of the region, where plants on low process level
prevail, development of   new technologies for  f ood processing, particularly fish, and development of
furniture production are preferred. At the same time, striving to diversify  the industry,  also  electro-
machine and plastics industries will be given preferences.
13.6 Amount of  assistance granted
In 1997 the assistance was not provided.
13.7 Duration of the programme
For 20 years in the period 1997-2017
13.8 Beneficiaries
No beneficiaries in 1997
13.9 Evaluation of the effects on trade
The applied instruments do not directly impact the foreign trade.
There are no pro-export preferences.
14. SUPPORT FOR SPECIAL ECONOMIC ZONES - SPECIAL ECONOMIC ZONE OF
SUWAŁKI
14.1 Purpose of the programme
Development of the region of Suwa łki through implementation of solutions stimulating
optimal use of the resources existing in the zone and in the whole region.
14.2 Legal basis
Ordinance of the Council of Ministers of 25 June 1996 concerning establishment of special
economic zone in the Voivodship of Suwa łki (Journal of Laws No 93, item 421).G/SCM/N/38/POL
Page 51
14.3 The government agency responsible for the programme implementation
The Minister of Economy
14.4 Form of the assistance
An entrepreneur having a permission to operate in the zone may be granted the following
forms of assistance:
1. Those investing ECU 350 thousand, or employing 40 workers may obtain the following
benefits:
• full exemption from the income tax for the first 10 years of  operation;
• exemption from 50 per cent of the income tax in the following years till the end of the zone’s
operation.
2. For those investing less, the income equal to the invested amount is exempted from the
income tax, or if the employment level is the reason for the tax exemptions, the tax exemption is equal
to 25 per cent for every 10 employed, however not more than 100 per cent.
 
3. The entrepreneur  having no title to tax exemptions may obtain the following forms of the
assistance:
• increase of the depreciation rate of fixed assets (accelerated depreciation);
• including the costs of purchase of non-material, legal values into the costs of obtaining the
income in given fiscal year.
The above mentioned forms of the assistance may be applied alternatively.
14.5 Basic characteristics
The zone was created on the area of 431.67 hectares located in the territory of the urban
municipality of Suwa łki and municipality of Suwa łki, municipality of Go łdap and urban municipality
of Ełk in order to economically activate the region and creation of 15 000 new jobs. The per capita
GDP in the Voivodship of Suwa łki  was 73.8 per cent in 1995, and the unemployment rate in 1996
was 26.6 per cent, which is much higher than the national average. Due to the specific features of the
region where petty farming is prevailing, SME development operation in food industry, timber and
wood processing and production of tourist appliances is therefore preferred.
14.6 Amount  of the  assistance granted
Abated taxes in 1997 – ZI 1 645 thousand.
14.7 The timeframe of the programme
For 20 years in the period 1996-2016
14.8 Beneficiaries
In 1997 – 2 enterprises.G/SCM/N/38/POL
Page 52
14.9 Evaluation of the effects on trade
The applied instruments do not directly impact the foreign trade.
There are no pro-export preferences.
15. SUPPORT FOR SPECIAL ECONOMIC ZONES - SPECIAL ECONOMIC ZONE OF
WAŁBRZYCH “INVESTPARK”
15.1 Purpose of the programme
Creation of new jobs and easing the social and economic effects of mining restructuring
through:
Economic activation of the region,
Making the technical infrastructure left after liquidated coal mines and old industrial assets productive
again.
15.2 Legal basis
Ordinance of the Council of Ministers of 15 April 1997 concerning establishment of special
economic zone in Wa łbrzych (Journal of Laws No 46, item 290)
15.3 The government agency responsible for the programme implementation
The Minister of Economy
15.4 Form of the assistance
An entrepreneur having a permission to operate in the zone may be granted the following
forms of assistance:
1. Those investing ECU 500 thousand, or employing 50 workers may obtain the following
benefits:
• full exemption from the income tax for the first 10 years of  operation;
• exemption from 50 per cent of the income tax in the following years till the end of the zone’s
operation.
2. For those investing less, the income equal to the invested amount is exempted from
the income tax, or if the employment level is th e reason for the tax exemptions, the tax exemption is
equal to 20 per cent for every 10 employ ed, however not more than 100 per cent.
 
3. The entrepreneur  having no title to tax exemptions may obtain the following forms
of the assistance:
• increase of the depreciation rate of fixed assets (accelerated depreciation);G/SCM/N/38/POL
Page 53
• including the costs of purchase of non-material, legal values into the costs of obtaining the
income in given fiscal year.
The above mentioned forms of the assistance may be applied alternatively.
15.5 Basic characteristics
The zone of total area of 256 hectares is dispersed and includes four sub-zones located in the
city of Wa łbrzych, city and municipality of K łodzko, city and municipality of Nowa Ruda and city
and municipality of Dzier żoniów.
The region of Wa łbrzych for many years had been connected with hard coal mining.
Liquidation of coal mines resulted with important recession of the industries servicing the coalmining. The effect was the rapid drop of per capita GDP to 72.8 per cent in 1995 and increase the
unemployment rate to 23.5 per cent in 1996, while the national average was 14.3 per cent.
It is estimated that establishment of the zone will result with creation of 6.5 thousand of new
jobs in the zone and in the influenced areas.
Due to the need to change the dependence on mining, the preferred lines of industry in the
zone include: electo-technical industries, electronics, machine industry, metallurgy, plastics
processing and garment industry.
15.6 Amount of  assistance granted
In 1997 the assistance was not provided.
15.7 Duration of the programme
For 20 years in the period 1997-2017
15.8 Beneficiaries
No beneficiaries in 1997
15.9 Evaluation of the effects on trade
The applied instruments do not directly impact the foreign trade.
There are no pro-export preferences.
16. SUPPORT FOR SPECIAL ECONOMIC ZONES - SPECIAL ECONOMIC ZONE OF
ŻARNOWIEC
16.1 Purpose of the programme
Making the assets left over after the abandoned project of erection of nuclear power plant in
Żarnowiec productive through effective use of the existing buildings and infrastructure.
16.2 Legal basis
Ordinance of the Council of Ministers of 9 September 1997 concerning establishment of
special economic zone in Zarnowiec (Journal of Laws No 135, item 910)G/SCM/N/38/POL
Page 54
16.3 The government agency responsible for the programme implementation
The Minister of Economy
16.4 Form of the assistance
An entrepreneur having a permission to operate in the zone may be granted the following
forms of assistance:
1. Those investing ECU 1000 thousand, or  employing 100 workers may obtain the
following benefits:
• full exemption from the income tax for the first 10 years of  operation;
• exemption from 50 per cent of the income tax in the following years till the end of the zone’s
operation.
2. For those investing less, the income equal to the invested amount is exempted from the
income tax, or if the employment level is the reason for the tax exemptions, the tax exemption is equal
to 10 per cent for every 10 employed, however not more than 100 per cent.
 
3. The entrepreneur  having no title to tax exemptions may obtain the following forms of the
assistance:
• increase of the depreciation rate of fixed assets (accelerated depreciation);
• including the costs of purchase of non-material, legal values into the costs of obtaining the
income in given fiscal year.
The above mentioned forms of the assistance may be applied alternatively.
16.5 Basic characteristics
Making the specific infrastructure left over after the abandoned project of erection of nuclear
power plant requires special tools. It was resolved that the optimal solution will be to grant to thelocation the status of special economic zone, which due to its influence on the neighbouring areas
affected with unemployment resulted by the reces sion in the shipbuilding industry, would generate
new jobs. The increase of new jobs is estimated as 5.5 thousand.
Due to the specific features of the area covered by the zone investors that do not need much
space will be located there. The following industries will be preferred: metal, machine, automation
devices for energy production, chemistry, electronics and food and agricultural products processing.
16.6 Amount  of  assistance granted
In 1997 the assistance was not provided.
16.7 Duration of the programme
For 20 years in the period 1997-2017G/SCM/N/38/POL
Page 55
16.8 Beneficiaries
No beneficiaries in 1997
16.9 Evaluation of the effects on trade
The applied instruments do not directly impact the foreign trade.
There are no pro-export preferences.
C. SUBSIDIES SUPPORTING EXPORTS – CONTINUED FROM RECENT YEARS
1. INSURANCE SYSTEM SUPPORTING EXPORT CONTRACTS,  GUARANTEED BY
THE TREASURY
1.1 Purpose of the programme
Support of Polish exports and protecting domestic enterprises against loses that may arise due
to implementation of export contracts.
1.2 Legal basis
Law of 7 July 1994 concerning export contracts insurance guaranteed by the Treasury
(Journal of Laws No 86, item 398; of 1996 No 106, item 496; of 1997 No 28, item 154, No 121, item
770)
1.3 The government agency responsible for the programme implementation
Decisions are taken by Committee for Credits Insurance and Insurance Guarantees Policy
appointed by the Prime Minister. The Committee consists representatives of certain ministries –
including the Ministry of Finance - and representative of the National Bank of Poland.
1.4 Form of the assistance
The assistance may be provided in the form of:
• loan funded from the state budget resources extended for KUKE Export Credits Insurance
Corporation S.A.( Korporacja Ubezpiecze ń Kredytów Exportowych -  KUKE)
• guarantees extended by  the Minister of Finance  securing banking loans drafted by KUKE
1.5 Basic characteristics
The law determines the rules for export contracts insurance guaranteed by the Treasury. The
payment of compensations for businesses implementing export contracts is granted by the Treasury inthe form of rendering the following services to KUKE:
• guarantees extended by the Minister of Finance on behalf of the Treasury  to secure banking
loans drafted by KUKE,
• loan for KUKE extended by the Treasury.G/SCM/N/38/POL
Page 56
Export contracts insurance covers the loses incurred by the insurance due to lack of
possibility to perform the contract or due to im proper implementation of the contract by a foreign
contractor caused by:
• risk related to political changes
• risk  related to disasters
• risk of excessive lengthiness in fulfilling the payment obligations by a state or public debtor.
The budget for specific fiscal year may determine:
• the limit of  insurance for the export contracts for the given fiscal year,
• volume of the loans extended  to KUKE from the Treasury resources,
• volume of the loan guarantees extended by the Minister of Finance to secure banking loans
contracted by KUKE. Until now there was no need to determine them in the state budget.
1.6 Amount of  assistance granted
In 1997 the Export Credits Insurance Corporation S.A. did not use any forms of the state
assistance, i.e. neither loans from the state budget resources nor banking loans guarantees to secure
the credits contracted by the Corporation. Own reso urces of the Corporation were sufficient for the
insurance.
33.1 per cent, i.e. ZI 1 124.9 million of the limit for insurance of export contracts determined
in the 1997 budget was consumed.
1.7 Duration  of the programme
The law does not determine a timeframe. The export contracts insurance system established in
Poland is new and tends to expand, especially in respect with the contracts related to the Eastern
markets.
1.8 Beneficiaries
The Export Credits Insurance Corporation is the direct beneficiary of the assistance while
businesses using this form of assistance are indirect beneficiaries.
1.9 Evaluation of the effects on trade
The assistance may influence the foreign trade, es pecially with respect to the exports to the
eastern markets. However taking into account high risk related to the transactions concluded in this
area, the impact of this form of insurance is rather in significant.  This fact is proved by the fact of not
consuming the limit for insurance of the export transactions.G/SCM/N/38/POL
Page 57
2. INVESTMENT RELATED TAX REBATE CONNECTED WITH  RESULTS OF
EXPORT ACTIVITIES4
2.1 Amount of  assistance granted
It is difficult to evaluate the volume of the provided assistance since only the aggregated data
are available covering all kinds of investment allowances resulted from the provisions of the law of
February 15, 1992 concerning  corporate income tax (Journal of Laws of 1993 No 106, item 482,
No 134, item 646 of 1994 No 1, item 2;  No 43, item 163, No 80, item 368, No 87, item 406, No 90,
item 419;  No 113, item 547;  No 123, item 602; No 127, item 627, of 1995 No 5, item 25; No 86,
item 433; No 96, item 478; No 133, item 654;  No  142, item 704 of 1996 No 25, item 113;  No 34,
item 146;  No 90, item 405;  No 137, item 639 ; No 147, item 686; and of  1997 No 9, item 44, No 28,item 153, No 79, item 484, No 96, item 592, No 107, item 685, No 118, item 754, No 121, item 770,
No 123, item 776 and 777, No 137, item 926, No 139, item 932, 933 and 934, No 140, item 939, No
141, item  943 and 945) including those related to export activities. The amount of investment
allowances in 1997 was
ZI 1 876 116.0 thousand (see item A point 2.6. ii).
2.2 Beneficiaries
The investment allowances are granted to all taxpayers who meet the criteria determined by
the law of 15 February  1992 concerning corporate income tax, not just those businesses conducting
export activities. The basic condition to be eligible for allowances is incurring investment expenses
determined in details by the regulations.
D. SPECIFIC SUBSIDIES  APPLIED IN THE AGRICULTURAL SECTOR
1. GRANTS FOR  TO SUPPORT  PRODUCTION OF CALCIUM FERTILIZERS
PRODUCTION
1.1 Purpose of the programme
To reduce prices of calcium fertilizers used by farmers to de-acidify the soil.
1.2 Legal basis
Ordinance of the Minister of Agriculture and Food Economy of 18 July 1997 concerning
grant rates for the agricultural sector and detailed rules and procedures for awarding these grants in
1997 (Journal of Laws No 92, item 568).
1.3 The government agency responsible for the programme implementation
Supervision as to the essence of the programme - the Minister of Agriculture and Food
Economy.
Financial implementation – the Minister of Finance.
1.4 Form of the assistance
Grants from the state budget.
                                                     
4 This part does not include the detailed description of the programme since the description is included
in item A point 2 if this paper .G/SCM/N/38/POL
Page 58
1.5 Basic characteristics
In 1997 the state assistance consisting in subsidizing production of calcium fertilizers was
continued (subsidizing of the production costs and sales). The subsidies are meant to reduce the priceof this type of fertilizers to enable applying them by broad range of Polish farmers. The assistance is
justified by the need to de-acidify considerable part of arable land (acidification of the soil adversely
influences the crops) from one hand, and form the other hand by the low profitability of large part of
the farms, what prevents them to purchase calcium fertilizers at their full price.
The state assistance involves grants awarded to the fertilizers' producers, proportionally to the
number of tons of pure CaO and MgO in the volume of the produced and sold fertilizers.
Despite the fact that the assistance was granted directly to producers of the fertilizers, it
supports farmers by allowing them purchase of the fertilizers at lower price.
1.6 Amount  of  assistance granted
In 1997 the grants from the state budget amounted to ZI 192 014 thousand.
1.7 Duration of the programme
The presented form of assistance is related to 1997 and continuation of the assistance is
expected.
1.8 Beneficiaries
All calcium fertilizers producers were awarded the grants.
1.9 Evaluation of the effects on trade
Due to the universal scope of the assistance, all the calcium fertilizers producers could benefit
from the assistance, and indirectly farmers. Therefore there is no negative influence on the
competition.
2. FINANCIAL SUPPORT FOR SUGAR EXPORT
2.1 Purpose of the programme
Speeding up the process of adjusting the agriculture and food processing sector to the market
economy requirements.
2.2 Legal basis
Law of 26 August 1994 (Journal of Laws No 98, item 473 with further amendments)
Ordinance of the Council of Ministers of 25 March  1997 (Journal of Laws No 31, items 178 and 179)
2.3 The government agency responsible for the programme implementation
The Ministry of Agriculture and Food Economy and Agency for Agriculture Restructuring
and Modernization.
2.4 Form of the assistanceG/SCM/N/38/POL
Page 59
Direct grants supporting exports.
2.5 Basic characteristics
Sugar is subsidized by the Agency at two st ages – advance payment amounting to ZI 140 for
each tone of sugar exported within the period 1 January– 31December  this year, and final subsidy
within  the deadline determined in ♣ 6, item 2 of the ordinance of the Council of Ministers of
25 March 1997 in the amount resulted from the calculations according to ♣ 2 and ♣ 3 of the
ordinance.
2.6 Amount  of  assistance granted
In 1997 the Agency for Agriculture Restructuring and Modernization supported the export of
sugar with the amount of ZI 28 406 823.47 for the exported volume of 176 532.26 tons.
2.7 Duration  of the programme
The  regulations do not determine a timeframe of the programme.
2.8 Beneficiaries
According to the provisions of the law of 26 August 1994 the grants supporting sugar export
are awarded to the producers, i.e. Sugar Partnerships. In 1997, 64 producers received subsidies for the
exported sugar.
2.9 Evaluation of the effects on trade
The grants directly support export of sugar.
3. SUBSIDIZING THE INTERESTS  ON BANKING LOANS  FOR AGRICULTURAL
PURPOSES
3.1 Purpose of the programme
Assisting farmers in purchase of land, making it productive and adjusting to food production
by applying ecological methods, assisting in purchase of machines.
3.2 Legal basis
The 1997 budget resolved on February 21, 1997 (Journal of Laws No 19, item 106) – art. 45,
item 2.
Ordinance of the Council of Ministers of 21 May  1991 concerning the scope and rules as
well as the detailed scope and rules for funding by the state budget of partial repayment of the
interests on the banking loans extended in 1993 (Journal of Laws No 30, item 137).
3.3 The government agency responsible for the programme implementation
The Minister of FinanceG/SCM/N/38/POL
Page 60
3.4 Form of the assistance
Grants from the state budget for partial repayment of the interests due to banks in connection
with extended loans.
3.5 Basic characteristics
The grants from the state budget represent partial repayment of the interests due to banks and
they are equal to the difference between the interests rate charged by the bank and the interests rate
paid by the debtor.
3.6 Amount of assistance granted
Amount of ZI 535.2 thousand
3.7 Duration  of the programme
Until full repayment of the loans (the maximum timeframes for repayment of individual loans
are determined by the above-mentioned legal acts).
3.8 Beneficiaries
Farms
3.9 Evaluation of the effects on trade
No impact on foreign trade
4. WORKING CAPITAL LOANS
4.1 Purpose of the programme
Actions aimed at improving of the financial liquidity of the agricultural producers and food
processing companies. The working capital loans are meant to ease periodic cash shortages, support
development of effective economic entities and facilitate their operation in the market economy
environment.
4.2 Legal basis
Ordinance of the Council of Ministers of 21 February  1995 concerning detailed rules, scope
and procedures for subsidizing the interests rates on loans extended for agricultural purposes (Journal
of Laws No 19, item 92, of 1996 Journal of Laws No 3, item 18, No 52, item 229, of 1997 No 36,
item 219, No 82, item 519, No 97, item 597, No 105, item 665, No 144, item 964).
4.3. The government agency responsible for the programme implementation
The Ministry of Agriculture and Food Economy and Agency for Agriculture Restructuring
and Modernization.
4.4 Form of the assistance
The agency subsidizes the repayment of the interests on loans extended for:G/SCM/N/38/POL
Page 61
- purchase of mineral fertilizers and plants pesticides;
- purchase of qualified seeds and seedlings;
- purchase of breeding animals;
- purchase of bee-mothers for breeding and production purposes;
- purchase of material liquid assets for food production applying ecological methods and
adjusting farms for such production;
- purchase of fuels for agricultural purposes;
- purchase and storage of seed material form national producers;
- storage or purchase and storage of  periodic powdered milk surplus, butter, hard cheeses, pork
half-carcasses, and bee-honey produced in the country.
 
 4.5 Basic characteristics
 
 The amount of the loan cannot exceed the equiva lent of 10 quintals of rye per one hectare of
the arable land calculated according to the prices used for calculation of the agricultural tax in the
same fiscal year when the loan agreements were concluded. The maximum period of the loan is 12
months. For the entities running farms and special agricultural production who suffered significant
loses by the flood of July 1997 and who concluded the loan agreements after 1 July  1996, or will
conclude loan agreements before 30 June 1998, this period was extended to 24 months.
 
 4.6 Amount of  assistance granted
 
 In 1997 the Agency for Agriculture Restructuring and Modernization allocated resources for
additional cash payments for:
 
- interests on loans extended for purchase of liquid production assets for agricultural production
– ZI 357 933.20 thousand;
- interests on loans for purchase of  agricultural products and storage or purchase of periodical
surplus of agricultural products – ZI 260 910.00 thousand.
4.7 Duration of the programme
The  regulations do not determine the termination date of the programme operation.
 4.8 Beneficiaries
 
- Domestic economic entities involved in the agricultural production may apply for loans for
purchase of liquid production assets for agricultural production.
- Domestic economic entities involved in food processing or food storage may apply for loans
for purchase of agricultural products;G/SCM/N/38/POL
Page 62
- Domestic economic entities producing or storing periodical surplus of powdered milk, butter,
hard cheeses, pork half-carcasses, and bee-honey may apply for loans for purchase and
storage of these products.
4.9 Evaluation of the effects on trade
No direct impact.
5 INVESTMENT LOANS
5.1 Purpose of the programme
Initiating and speeding up the process of adjusting the agriculture, food processing and
agricultural services sectors to the requirements of market economy.
5.2 Legal basis
Law of 29 December 1993 concerning establishmen t of Agency for Agriculture Restructuring
and Modernization (Journal of Laws of 1994 No 1, item 2, No 80, item 369, No 98, item 473, and of
1997 No 41, item 255, No 70, item 4 and No 141, item 943).
Ordinance of the Council of Ministers of 30 June 1996 (Journal of Laws No 16, item 82, No
63, item 295, No 127, item 596, and of 1997 No 34, item 204 and No145, item 972).
5.3 The government agency responsible for the programme implementation
Agency for Agriculture Restructuring and Modernization and 35 banks that concluded
agreements with the Agency.
5.4 Form of the assistance
Subsidies to the interests due to investment loans extended by the banks from their own
resources.
5.5 Basic characteristics
Pursuant to the provisions of the ordinance of the Council of Ministers of 30 January  1996 in
1997 the Agency subsidized interests on investme nt loans extended by 35 banks with whom the
Agency concluded agreements concerning rules, terms and procedures for transfer the Agency’s
resources for subsidizing the investment loans. The interests’ rates vary depending on credit line, and
cannot exceed 1.25 or 1.0, or the annual rediscount rate of bills of exchange of the banks accepted by
National Bank of Poland for rediscount. The interest rate on loans for the debtor represents thedifference between the interests’ rate claimed by the crediting bank and the amount of the Agency’s
subsidies.
Until 31 December 1997 the Agency used to subsidize the loans as follows:
- basic investment loans for  implementation of agricultural undertakings, food processing,
special agricultural production sectors and agricultural services;
- loans for purchase of  agricultural land;
- loans for establishing farms by persons not older than 40 years;G/SCM/N/38/POL
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- loans for business sectors and regions  within the scope of programmes approved by the
Minister of Agriculture and Food Economy;
- loans for implementation of undertakings in agriculture  and special agricultural production
sectors aimed at utilization of  the existing production base of the farms and special
agricultural production sectors through starting up or increasing the production;
- loans for implementation of undertakings in agriculture  and special agricultural production
sectors aimed at utilization of  the existing production base of the farms and special
agricultural production sectors through restarting the production  in these farms and special
agricultural production sectors after the break that lasted at least one year;
- application and increase the Agency subsidies for interest on investment loans for agriculture,
food processing  and agricultural services, extended  before coming into force of the
Council’s of Minister ordinance of 30 January 1996 concerning the specific directions of the
actions of the Agency for Agriculture Restructuring and Modernization and rules forimplementation of these actions;
- loans for undertakings generating new jobs for rural population in non-agricultural  sectors in
rural and rural/urban municipalities;
- loans for resuming the activity in the areas affected by  droughts, hails, excessive downfall of
rains or snow, floods, hurricanes, fire,  or  scourge of rodents;
- loans extended for creation of furnishing of a farm within the scope of the programme for
settlement on state owned farmlands approved by the Ministry of Agriculture and FoodEconomy and Ministry of Finance .
The procedure related to applying for investment loans included in the Agency’s interests
subsidizing programme requires inter alia:
- development of a business plan;
- obtaining positive opinion from agricultural extension center territorially relevant for  the
place of implementation of the undertaking;
- submitting loan application together with the business plan and opinion of agricultural
extension center and set of documents required by the lending bank. Contributing the debtor’sown input at the level of 20 per cent of the investment in case of a farm and 30 per cent in
case  of special agricultural production sectors, food processing  and agricultural services is
the necessary condition to obtain the loan. What concerns investment loans  for entities that
generate new jobs in non-agricultural sector in rural or urban/rural municipalities  the amount
of the subsidized loan  may not exceed 60 per cent of the investment value.
 
 5.6 Amount of  assistance granted
 
 In 1997 the Agency allocated ZI 673 864.4 thousand for subsidizing the interests on loans for
investments in own assets.
 
5.7 Duration of the programme
 The  regulations do not determine the timeframe
 G/SCM/N/38/POL
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 5.8 Beneficiaries
 
 The entities that may apply for loans subsidized interests to the Agency are:
 
- natural or corporate persons conducting activities in  agriculture and special agricultural
production;
- natural or corporate persons conducting or starting up business activities in the rural or
rural/urban municipalities.
5.9 Evaluation of the effects on trade
No direct impact.
INTERVENTION PURCHASE OF FOOD AND AGRICULTURAL PRODUCTS BY THE
AGRICULTURAL MARKET AGENCY (AMA)
6. THE GRAIN MARKET
6.1 Purpose of the programme
Stabilization of the grain market.
Supporting the income of national grain producers.
6.2 Legal basis
Article 4, item 1 of the law of 2 February 1996 changing the law concerning establishment of
the Agricultural Market Agency (Journal of La ws No 34, item 146 of 1996  -  consolidated text
Journal of Laws No 142, item 951 of 1997).
6.3 The government agency responsible for the programme implementation
The Agricultural Market Agency.
6.4 Form of the assistance
Intervening purchase of grains.
6.5 Basic characteristics
The basic goal of the interventions is the protection of the producers’ income and stabilization
of the market, i.e. limitation of excessive price fluctuations through intervention purchase of surplusof agricultural products and food resulted from season or circumstances and reselling these products
when the market is short.
6.6 Amount of  assistance granted
In 1997 the total amount of consumer grains of 728 538 tons was purchased for ZI 783.60
thousand.G/SCM/N/38/POL
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6.7 Duration  of the programme
The timeframe for intervention purchases is de termined in the statute of The Agricultural
Market Agency. For grains the intervention purchases are done within the period from 15 July to
30October  every year.
6.8 Beneficiaries
- Domestic producers of grains
- Consumers
6.9 Evaluation of the effects on trade
No direct impact.
7. THE MILK MARKET
7.1 Purpose of the programme
Stabilization of the milk market.
Supporting income of the national producers.
7.2 Legal basis
Article 4, item 1 of the law of 2 February 1996 changing the law concerning establishment of
the Agricultural Market Agency (Journal of La ws No 34, item 146 of 1996  -  consolidated text
Journal of Laws No 142, item 951 of 1997).
7.3 The government agency responsible for the programme implementation
The Agricultural Market Agency.
7.4 Form of the assistance
Intervention purchase of powdered milk.
7.5 Basic characteristics
The basic goal of the interventions is protection of the producers’ income and stabilization of
the market, i.e. limitation of excessive price fluctuations through intervention purchase of surplus of
agricultural products and food resulted from season or circumstances and reselling these productswhen the market is short.
7.6 Amount of  assistance granted
In 1997 the total of 12 303 tons of powdered milk was purchased  for ZI 66 437 thousand.G/SCM/N/38/POL
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7.7 Duration of the programme
The timeframe for intervention purchases is de termined in the statute of The Agricultural
Market Agency. For skim powdered milk the intervention purchase is done in the period from 1June
to 30 September every year.
7.8 Beneficiaries
- domestic milk producers
- consumers
7.9. Evaluation of the effects on trade
No direct impact.
8. THE POTATOES MARKET
8.1 Purpose of the programme
Stabilization of the potatoes market.
Supporting income of the national producers.
8.2 Legal basis
Article 4, item 1 of the law of 2 February 1996 changing the law concerning establishment of
the Agricultural Market Agency (Journal of La ws No 34, item 146 of 1996  -  consolidated text
Journal of Laws No 142, item 951 of 1997).
8.3 The government agency responsible for the programme implementation
The Agricultural Market Agency.
8.4 Form of the assistance
Intervention purchase of potatoes starch.
8.5 Basic characteristics
The basic goal of the interventions is the protection of the producers’ income and stabilization
of the market, i.e. limitation of excessive price fluctuations through intervention purchase of surplus
of agricultural products and food resulted from season or circumstances and reselling these productswhen the market is short.
8.6 Amount of  assistance granted
In 1997 the total of 13 500 tons of potatoes starch was purchased  for ZI 18 900 thousand.G/SCM/N/38/POL
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8.7 Duration of the programme
The timeframe for intervention purchases is de termined in the statute of The Agricultural
Market Agency. For potatoes starch the intervention purchase is done in the period of market surplus.
8.8 Beneficiaries
- domestic potatoes producers
- consumers
8.9 Evaluation of the effects on trade
No direct impact.
9. THE RAW HOPES MARKET
9.1 Purpose of the programme
Stabilization of the raw hopes market.
 Supporting income of the national producers.
9.2 Legal basis
Article 4, item 1 of the law of 2 February  1996 changing the law concerning establishment of
the Agricultural Market Agency (Journal of La ws No 34, item 146 of 1996  -  consolidated text
Journal of Laws No 142, item 951 of 1997).
9.3 The government agency responsible for the programme implementation
The Agricultural Market Agency .
9.4 Form of the assistance
Intervention purchase of raw hopes.
9.5 Basic characteristics
The basic goal of the interventions is the protection of the producers’ income and stabilization
of the market, i.e. limitation of excessive price fluctuations through intervention purchase of surplus
of agricultural products and food resulted from season or circumstances and reselling these products
when the market is short.
9.6 Amount  of the assistance granted
1995 215.06 tons ZI 1 691 371
1996 106.90 tons ZI 854 9001997 162.00 tons ZI 1 557 700G/SCM/N/38/POL
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9.7 Duration of the programme
The timeframe for intervention purchases is de termined in the statute of The Agricultural
Market Agency. For raw hopes the intervention purchase is done in the period of market surplus.
9.8 Beneficiaries
- domestic raw hope producers
- consumers
9.9 Evaluation of the effects on trade
No direct impact.
10.  THE BEE HONEY MARKET
10.1 Purpose of the programme
Stabilization of the bee honey market through:
subsidizing  of the income of national bee honey producers
refraining from the collection of value added tax on sales of sugar to the Polish Association of
Beekeepers.
10.2 Legal basis
1. Article 4, item 1 of the law of 2 February 1996 changing the law concerning establishment of
the Agricultural Market Agency (Journal of La ws No 34, item 146 of 1996  -  consolidated text
Journal of Laws No 142, item 951 of 1997).
2. Annual decisions of the 2nd Tax Office for Warsaw Center (No of the decision concerning
1997: 1997/US7/A/ 861/V/BU/-65/97)
10.3 The government agency responsible for the programme implementation
The Agricultural Market Agency.
10.4 Form of the assistance
Intervention purchase of bee honey
Refraining from the collection of value added tax on sales of sugar to the Polish Association
of Beekeepers.
10.5 Basic characteristics
The basic goal of the interventions is the protection of the producers’ income and stabilization
of the market, i.e. limitation of excessive price fluctuations through intervention purchase of surplus
of agricultural products and food resulted from season or circumstances and reselling these products
when the market is short.G/SCM/N/38/POL
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refraining from the VAT tax collection  on the sales of sugar is aimed at maintaining the
production of bee honey at desirable level.
10.6 Amount  of  assistance granted
In 1997 the total of 1 550 tons of bee honey was purchased  for ZI 12 001 thousand.
The amount of non-collected VAT tax totaled ZI 567 606.00.
10.7 Duration of the programme
The timeframe for intervention purchases is de termined in the statute of The Agricultural
Market Agency. For bee honey the intervention purchase is done in the period of market surplus.
Decisions concerning refraining from VAT tax collection are taken annually by 2nd Tax Office for
Warsaw Center.
10.8 Beneficiaries
- domestic bee honey producers
- consumers
10.9 Evaluation of the effects on trade
No direct impact.
11. GRANTS FOR BIOLOGICAL PROGRESS IN AGRICULTURE
11.1 Purpose of the programme
Support of actions aimed at creation, implementation and promotion  of biological progress in
agriculture.
11.2 Legal basis
1. law of 5 January 1991 – The Budget Law  (Jour nal of Laws of 1993 . No 72, item3 44;   of
1994 No 76, item 344,  No 121, item 591 and No 133, item 685;  of 1995 No 78, item 390, No 124,
item 601 and  No 132, item 640;  of 1996 No 89, item 402, No 106, item 496, 132, item 621 and  No
139, item 647  and of 1997  No 54, item 348,  No 79, item 484, No 121, item 770,  No 123, item 775
and 778,  No 133, item 883,  No  137, item 926, No 141, item 943  i  No 158, item 1042)
2. the state budget for 1997 resolved on 21 February 1997 (Journal of Laws No 19, item 106)
3. ordinance of the Minister of Agricultu re and Food Economy of 18 July 1997 concerning
volume of the rates of  grants for agriculture and detailed  rules  and procedures for awarding the
grants in 1997 (Journal of Laws No 92, item 568)
4. ordinance of the Minister of Agriculture  and Food Economy of 23 September  1997 changing
the ordinance concerning volume of the rates of  grants for agriculture and detailed  rules  and
procedures for awarding the grants in 1997 (Journal of Laws No 120, item 7653)G/SCM/N/38/POL
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11.3 The government agency responsible for the programme implementation
The Minister of Agriculture and Food Economy, the Minister of Finance.
11.4 Form of the assistance
Grants from the state budget.
11.5 Basic characteristics
Grants for biological progress in agriculture are aimed at:
1. In plant production for the purposes concerning:
- agricultural and garden plants cultivation
- subsidies for qualified  potato seeds and seedlings
- protection of plants genetic resources
- evaluation of varieties
- scion orchards and elite orchards and plantations, import of seeds and seedlings for
further production.
2. In animal breeding  for the purposes concerning:
- programmes of evaluation of selection of breeders
- transmission of genetic  progress from  breeding level  to mass population  through
female breeding material, breeders and insemination and embryo-transfer
- maintaining  conservation herds and those representing genetic reserve
- import of genetic reserve necessary for breeding programmes
- breeding works within the scope of breeding programmes
- evaluation of  functional and breeding  value  and insemination of farm animals
- promotion of biological progress
- purchase of farm animals in the areas affected by  the floods in July 1997.
11.6 Amount  of  assistance granted
In 1997 the grants totaled ZI 299.1 million, including:
plant production: ZI 132.8 million, and animal breeding: ZI 166.3 million.
11.7 Duration  of the programmeG/SCM/N/38/POL
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The volume  of the resources allocated for grants for biological progress is determined
annually in the budget for specific year and the unit rates are determined  by the Minister’s of
Agriculture and Food Economy ordinance in this respect.
11.8 Beneficiaries
The grants are awarded to farmers and animal breeders as well as to entities involved in
implementation of the goals  related to biological progress in agriculture:
1. grants for animal breeding:
- animal breeders ZI 77.0 million- entities ZI 89.3 million
2. grants for plant production:
- animal breeders ZI 58.4 million
- entities ZI 74.4 million
11.9 Evaluation of the effects on trade
No direct impact.
__________