1. Meeting with AMCHAM in Poland Warsaw, April 5th 2005 Mieczysław NOGAJ Director of the Department of Trade Policy Ministry of Economy and Labour Department of Trade Policy

2. General changes in force since 1st of May 2004 concerning ways and means of regulations of trade turnover with abroad(1) 1.Trade turnover between Poland and EU member states it is around 80% of our trade turnover as it was before 1st of May 2004 it is around 80% of our trade turnover as it was before 1st of May 2004 customs border between Poland and the rest of the EU was abolished customs border between Poland and the rest of the EU was abolished in trade turnover with EU countries there is no more required: in trade turnover with EU countries there is no more required: to declare goods to customs clearance to declare goods to customs clearance to pay duties and other fees taken by the Customs (but VAT and excise taxes requiments will remain in force) to pay duties and other fees taken by the Customs (but VAT and excise taxes requiments will remain in force) to obtain permission or licences to conduct trade operations (except requrments connected with release of goods to free circulation on community customs territory) to obtain permission or licences to conduct trade operations (except requrments connected with release of goods to free circulation on community customs territory)

3. General changes in force since 1st of May 2004 concerning ways and means of regulations of trade turnover with abroad(2) 2.Trade turnover with third countries (non-EU members): it is around 20% of our trade turnover as it was before 1st of May 2004 it is around 20% of our trade turnover as it was before 1st of May 2004 customs border with Russia, Ukraine and the Belarus Republic as well as sea and air customs borders is still maintained customs border with Russia, Ukraine and the Belarus Republic as well as sea and air customs borders is still maintained following procedures are in force on importation to Poland: following procedures are in force on importation to Poland: customs clearance at some borders customs clearance at some borders obligation to pay duties subject to EU customs regulations obligation to pay duties subject to EU customs regulations

4. Changes in export from Poland to third countries No major changes in export to third countries : 1.most of them are WTO members (except some of them e.i. Russia, Ukraine, Belarus Republic) – Polish goods exported have the right to m.f.n. treatment 2.however same problem with additional duties imposed as a result of safeguard, countervailing and AD investigations against EU exporters as well as a result of trade disputes with non- EU countries 3 following procedures are in force on exportation from Poland to third countries: customs clearance at customs borders of EU and borders of third countries customs clearance at customs borders of EU and borders of third countries obligation to pay duties and importation taxes as well as fees taken during customs clearance subject to third countries customs regulations obligation to pay duties and importation taxes as well as fees taken during customs clearance subject to third countries customs regulations

5. Changes in import from third countries to Poland In importation, in Poland it was: 1.general drop of duties 2.in small extent - tariff lines increasead 3.additional duties were added as a result of safeguard, countervailing and AD investigations as well as a result of trade disputes with some third countries 4.change of the licence system procedures

6. EU trade policy measures 1.Tariff measures: 1.EU tariff, GSP system and free trade agreements 2.tariff quotas 3.tariff plafons 4.temporary suspentions of custom duties payments 2.Non-tariff measures: 1.import and export surveillance 2.quantity quotas 3.import or export ban 3.Safeguard measures: 1.antidumping measures 2.antisubsidy measures 3.measures against accessive importation

7. EU tariff duties As of 1st of January 2005, imported goods to Poland from third countries are subject to: EU duties on m.f.n. basic contained in EU customs tariff of 30 October 2004EU duties on m.f.n. basic contained in EU customs tariff of 30 October 2004 lower duties as envisaged in EU GSP scheme - Council regulation No. 2051/2001/WE of 10th December 2001lower duties as envisaged in EU GSP scheme - Council regulation No. 2051/2001/WE of 10th December 2001 preferential duties as agreed in preferential trade agreements signed by the EU with many countries, i.e. EFTA, CEFTA, ACP, Mediterranean countriespreferential duties as agreed in preferential trade agreements signed by the EU with many countries, i.e. EFTA, CEFTA, ACP, Mediterranean countries

8. Average duties on m.f.n. basis PolandUE All products 15,16,3 Industrial goods 9,93,6 Agricultural goods 33,816,2 Fishery products 18,512,4

9. EU tariff quotas (1) EU tariff quota: possibility to import to EU certain quality or value of goods in defined period with duties below m.f.n. basis (in most cases at 0 level) EU tariff quotas for industrial goods EU tariff quotas for agricultural goods - are registered at the EU customs borders - importer should indicate no. of quotas in SAD document - licences are requierd - licences are issued by A.R.R.

10. EU tariff quotas (2) Character of EU tariff quotas Way of issuance of licence Special - will be defined in EU regulations - can be a mixture of typical solutions Conventional Autonomous Typical First come first served approach 1 Proportionally to the requested quantity Proportionally to the importation made by applicator Tender procedure 2 3 4

11. Non-tariff measures Import or export surveillance Quantity quotasImport and export ban

12. Surveillance (1) 2 forms Registration by a Customs office Obligation to obtain licence Trade turnover surveillance – no quantity and value restriction 1)no obligation on the declarant side, 2)customs declaration = registration, 3)customs organs send information to the European Comission. 1)possibility to introduce additionnal requirements 2)possibility to define situations when there is no request of obligatory licence 3)possibility to present guarantee, 4)Licence are issued by MGiP or by the President of ARR

13. Surveillance (2) Legal background Importation licence issuance EU regulation 3285/94, 519/94 2603/69 or special EU regulations for steel products, textiles and shoes According to the order of registration of requests by the EU Comission 1)EU Comission considers only complete requests following the order (date) of registration by the Comission 2)import licence is issued for requested quantity or value of imported goods (except of licence in double checking system when licences are issued to the level of export licences guantity) 3)licence duration is defined in the specified EU regulation.

14. Surveillance applied by the EU for industrial goods Steel products Textile products Non-textile products - shoes erga omnes a priori (single checking) Russia, Russia, Romania, Romania, FRM FRM erga omnes on the EU customs border China - a priori (single checking) China - a priori (single checking) Uzbekistan, VietnamUzbekistan, Vietnam as of 01.02.2005: erga omnes on the EU customs border China - a priori (single checking) China - a priori (single checking) Double checking

15. Quota (1) Limitation of trade turnover with third countries Importation outside quota - forbidden Obligation to obtain licence 1)possibility to introduce additionnal requirements 2)possibility to define situations when there is no request of obligatory licence 3) possibility to present guarantee, 4) licences issued by MGiP or by the President of ARR

16. Quota (2) Legal background Importation licence issuance For WTO members Only when WTO allows and it is in the interest of the EU For non-WTO members When it is in the EUs interest TypicalSpecial First come first served approach 1 Proportionally to the requested quantity Proportionally to the importation made by applicator - will be defined in EU regulations - can be a mixture of typical solutions 2 3

17. Quota applied by the EU for industrial goods Steel products Double checking Textile products Russia, Kazakhstan, Ukraine autonomous Single checking Double checking conventional Double checking Serbia and Montenegro and North Corea Belarus Republic, Vietnam

18. Useful web addresses in Poland on EU tariff, non-tariff and safeguard measures Ministry of Economy and Labour – www.mg.gov.pl and http://clo.mg.gov.pl www.mg.gov.plhttp://clo.mg.gov.pl www.mg.gov.plhttp://clo.mg.gov.pl Office of European Integration – www.ukie.gov.pl www.ukie.gov.pl Ministry of Finance – www.mf.gov.pl www.mf.gov.pl Ministry of Agriculture – ww.minrol.gov.pl ww.minrol.gov.pl ARR – www.arr.gov.pl www.arr.gov.pl

19. Thank you!!