. /.RESTRICTEDWORLD TRADE
ORGANIZATIONS/WPGR/W/34
3 July 2000
(00-2744)
Working Party on GATS Rules Original:  English
COMMUNICATION FROM POLAND
Emergency Safeguards Mechanism contained in Article 18 Act of 18 December 1998
on Foreign Exchange Law
Working Paper
This paper contains information on emergency safeguards mechanism, which exists in the
Polish legislation. Its purpose is to contribute and facilitate the discussion in the Working Party on
GATS Rules.
1. Purpose  – when safeguard measures may be introduced:
In the event of an extraordinary risk to the stability and integrity of the financial system of the
Republic of Poland – in particular in following situations:
(i) if the foreign exchange reserves of the Republic of Poland decrease substantially;
(ii) if the balance of payments equilibrium is disturbed, thus causing a direct risk to
solvency of the Republic of Poland in relations with abroad;
(iii) if the supply of money increases as a result of the inflow of capital from abroad to an
extent and at the pace substantially hindering or preventing control over such money
supply;
(iv) if the stability and integrity of the monetary policy is directly threatened as a result of
capital flow between Poland and abroad.
These special restrictions may be introduced by the Council of Ministers individually or
jointly, and may apply to all or a certain category of entities, and to all or a certain kind of
transactions.
2. Duration : up to six month.
3. Forms of safeguard measures :
(i) the obligation imposed on residents to resale foreign means of payment to the entities
indicated in such Regulation;
(ii) the obligation to express pecuniary oblig ations and effect payments in foreign
exchange abroad exclusively in convertible currencies;
(iii) the obligation to obtain a foreign exch ange permit to engage in foreign exchange
operations which, pursuant to the provisions of this Act, are not subject to such
obligation;S/WPGR/W/34
Page 2
(iv) restriction to the rights of the non-residents who are not engaged in economic
activities to sell and buy foreign currencies and foreign exchange gold or foreign
exchange platinum.
The terms "a resident" and "a non-resident" used above shall have the following meaning:
(i) resident:
a) a natural person domiciled in Poland or a legal entity with its seat in Poland,
as well as any other entity with its seat in Poland, capable of incurring
obligations and acquiring rights on its own behalf;
b) Polish diplomatic offices, consular divisions and other Polish representative
offices and special missions endowed with diplomatic or consular immunities
and privileges;
(ii) non-resident:
a) a natural person not domiciled in Poland or a legal entity not having its seat in
Poland, or any other entity not having its seat in Poland, capable of incurring
obligations and acquiring rights on its own behalf;
b) the person referred to in point (i) letter a) above, to the extent such person
engages in activities abroad through its enterprise, branch or a representative
office with its seat abroad;
c) branches and representative offices of persons and entities, referred to in
letters a), b), having their seats in Poland, established pursuant to international
agreements concluded by the Government of the Republic of Poland, unlesssuch agreements provide otherwise;
d) foreign diplomatic offices, consular divisions, special missions and
international organisations, as well as other foreign representative offices
endowed with diplomatic or consular immunities and privileges pursuant to
agreements, laws or commonly established international practice.
Up to date there was no need to introduce this mechanism in practice.
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