COLEÇÃO ESTUDOS E DOCUMENTOS DE COMÉRCIO EXTERIOR

COMO EXPORTAR

POLÔNIA

2019

MINISTÉRIO DAS RELAÇÕES EXTERIORES

Departamento de Promoção Comercial e Investimentos

Divisão de Informação Comercial

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Table of contents INTRODUCTION ...... 5 MAP ...... 6 BASELINE DATA...... 7 GENERAL ASPECTS ...... 8 GEOGRAPHY ...... 8 POPULATION, URBAN CENTRES, QUALITY OF LIFE ...... 11 POLITICAL AND ADMINISTRATIVE ORGANISATION ...... 14 Political system ...... 14 Administrative organisation ...... 14 PARTICIPATION IN INTERNATIONAL ORGANISATIONS AND AGREEMENTS ...... 15 Participation of Poland in international organisations and treaties ...... 15 LAW, ECONOMY, FINANCE AND TAXES ...... 19 Legal system ...... 19 Forms of conducting business activity in Poland ...... 19 Current economic situation ...... 20 Macroeconomic indicators ...... 21 Main sectors of the economy ...... 24 Economic challenges ...... 25 CURRENCY AND FINANCE ...... 26 Currency ...... 26 Average exchange rates in PLN ...... 26 Banking and financial system ...... 27 Taxation ...... 28 Corporate taxation ...... 28 Personal taxes ...... 29 Value added tax ...... 30 Tax on civil law transactions (PCC) ...... 32 INTERNATIONAL TRADE OF THE COUNTRY ...... 33 LATEST TRENDS ...... 33 ORIGIN AND DESTINATION ...... 34 COMPOSITION BY PRODUCT ...... 42 POLISH-BRAZILIAN ECONOMIC RELATIONS...... 46 BILATERAL TRADE ...... 46

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Economic cooperation with Poland ...... 46 BILATERAL INVESTMENTS...... 49 Investment cooperation ...... 49 Facilitating access to the Polish market for investors ...... 51 BASIC ECONOMIC AGREEMENTS WITH BRAZIL ...... 52 MARKET ACCESS ...... 53 TARIFF SCHEME ...... 53 Customs territory ...... 53 Schengen area ...... 53 Source: https://www.wprost.pl/swiat/10005499/kontrole-w-strefie-schengen-przedluzone- merkel-przeciwna.html ...... 54 Trade regulations...... 54 European Union tariff rate of duty ...... 55 Customs valuation ...... 56 TARIC and ISZTAR ...... 60 The viewer of the ISZTAR system makes it possible: ...... 62 Access to the Polish market ...... 63 Economic activity in Poland ...... 66 Companies ...... 67 SPECIFIC CUSTOMS-RELATED SYSTEMS ...... 70 Customs warehousing procedure ...... 71 Internal processing procedure ...... 72 External processing procedure ...... 73 Procedure for processing under customs control ...... 73 Temporary severance grants ...... 73 TRANSPORT INFRASTRUCTURE ...... 77 IMPORT/EXPORT ...... 77 Road infrastructure in Poland ...... 77 Polish transport infrastructure - general information ...... 78 COMMERCIALIZATION STRUCTURE ...... 87 DISTRIBUTION CHANNELS ...... 87 First contact - meetings with Poles ...... 87 Business fairs ...... 87 SALES PROMOTION ...... 87 Payments for services and submission of offers in Poland ...... 87 Language skills ...... 88

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Visas and other general information ...... 89 E-commerce commercial practices ...... 90 E-commerce in Poland - general information ...... 90 Source: own elaboration, Gemius data...... 91 Advantages and disadvantages of e-commerce in Poland ...... 91 Transport of purchased goods ...... 91 Percentage of delivery methods chosen by customers ...... 92 History of e-commerce in Poland ...... 92 Forecasts for the future ...... 93 APPENDIX ...... 94 Ministries ...... 94 Embassies and consulates ...... 94 Official Journal of the European Union ...... 95 Chambers of Commerce ...... 95 Banks ...... 97 Database of trade fairs in Poland: ...... 97 Entities organizing exhibitions in Poland: ...... 97 Media ...... 99 Consumer protection authorities ...... 99 Advertising agencies ...... 99 Media houses ...... 100 Information for foreign investors"...... 101 Public opinion poll ...... 101 Consulting companies ...... 102 Obtaining documents concerning foreign trade ...... 103 Transport companies ...... 103 Shipping ...... 103 Communication ...... 104 Airlines ...... 105 Practical information ...... 106 Hotels in Warsaw ...... 107

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INTRODUCTION

Poland is one of the largest and most important European countries. In 1989, a political upheaval took place in the country, as a result of which Poland became a stable parliamentary democracy over the course of time. In 1999 it joined NATO, in 2004 it joined the European Union. Since accession, Poland has been one of the largest beneficiaries of European Union resources.

The capital city of the country is Warsaw - almost completely demolished in 1944 during the Second World War, rebuilt after the end of the conflict. Other large cities include Krakow - perceived as one of the most attractive tourist cities in Europe, Gdansk, Poznan, Wroclaw, Lodz. The country has access to the Baltic Sea and is separated from its southern neighbours by mountain ranges. However, most of the territory is flat. The climate is continental, moderate. Poland - located in the centre of Europe, between East and West, is in a convenient place for the development of international trade.

Since the 1990s, the country has enjoyed steady economic growth. Agriculture and industry are still very important in the economy, but in recent years the specialized services sector has developed very quickly, as a result of which many foreign companies have opened branches in Poland.

The largest economic partners include Germany, Great Britain, China, Russia and Italy.

The country is basically ethnically homogeneous. However, in recent years Poland has become home to a large number of immigrants from Ukraine. It is also attractive for immigrants from Western Europe (Italians, Spaniards, Portuguese), who in large numbers find employment in SSC companies (Shared Service Center). Poles are considered to be well educated and learn foreign languages easily.

All over the world, the country is associated with Pope John Paul II and the anti-communist Solidarity movement (headed by Nobel Prize winner Lech Wałęsa).

A thriving economy, stable political situation, as well as hard-working people open to other cultures are the factors that make Poland an attractive place for entrepreneurs considering trade cooperation with European countries.

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MAP

Source: http://ksng.gugik.gov.pl/pliki/mapa_administracyjna_polski_2014.png

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BASELINE DATA

Area: 312,679 km² Population: 38,433,600 Population density: 123 persons/km² Labour force: 15.53 million Main cities: Warsaw (capital), Kraków, Łódź, Gdańsk, Poznań, Wrocław, Katowice Official language: Polish Exchange rate: 1 USD = PLN 3.8095, 1 EUR = PLN 4.3021 (based on average NBP rates as of December 14th, 2018) GDP: USD 524.9 billion GDP per head: USD 13,822 GDP growth: 4.6% Unemployment rate: 3.4% Exports: EUR 203.7 billion Imports: EUR 203.3 billion Imports from Brazil to Poland (2017): PLN 4,540.7 million (USD 1,261 million) Export to Brazil from Poland (2017): PLN 1,561.7 million (USD 434 million)

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GENERAL ASPECTS

GEOGRAPHY Poland is a country in Central Europe. It borders on seven countries, including two economic powers - Germany and Russia. Poland's location in the centre of Europe is inextricably linked with its important role in the international arena. For hundreds of years, numerous transport routes have been running through the territory of the country, connecting Eastern and Western Europe, as well as Scandinavian countries with Central Europe. International trade, which uses Polish transport routes, is an important stimulus for its economic development.

Map of Poland with neighbouring countries

Source: pasarelapr.com

Since 1998, Poland has been divided into three levels of administration. The territory of the country is divided into 16 voivodeships, within which 308 counties and 2,489 communes have been separated.

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Administrative map of Poland

Source: Wikimaps

Source: national-geographic.pl

Poland is the ninth largest country in Europe with an area of 322,575 km2. The extent of the territory from south to north is 649 km, and from west to east 689 km. The country is predominantly lowland, with only 3% of its surface area situated at an altitude of more than 500 m above sea level. The geographical shape of Poland is extremely beneficial for its economic development. It facilitates forwarding and enables the rapid development of the road network, which is constantly being expanded. The total length of expressways in Poland is 3,471 km, and construction works are still in progress for the next ones.

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source: wprost.pl

To the north, the country's border is the Baltic Sea, providing Poland with access to sea transport, and to the south the Carpathian Mountains. Poland is the fourth most forested country in Europe. As much as 27% of Poland's territory is covered by forests, some of which are the refuge of untouched nature, unique in Europe. In addition, Poland is one of the countries with the largest number of lakes, there are approx. 7,000 lakes in Poland. Its natural uniqueness is particularly visible when observing animals living in its areas. A special and globally recognisable example is the white stork, with one quarter of the world's population living in Poland.

Poland has natural resources such as coal, sulphur, natural gas, iron and salt. As much as 47% of the country's area is devoted to agricultural crops. The best soils are found in the southeast of the country. In Poland, mainly cereals and industrial plants are cultivated (in total over 80%).

Poland lies in a humid continental climate zone. Its climate is characterised by six seasons: early spring, spring, summer, autumn, early winter and winter. Annual precipitation is about 600 mm, and 2/3 of it falls in the summer period. Average temperatures in winter vary between 0o C and -5oC, while in summer, around 20oC. Despite such relatively low average temperature, summers in Poland can be quite hot.

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POPULATION, URBAN CENTRES, QUALITY OF LIFE

Source: Statistics Poland

The population of Poland at the end of 2017 amounted to 38,434,000. Poland is characterized by a close to zero, but positive, real growth rate. This means that its population is growing despite the negative birth rate (more deaths than live births per year). This is due to the influx of immigrants, mainly from the eastern borders of the country (Ukraine, Belarus).

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In Poland there are 107 women per 100 men. This is the result of a longer life for women. Forecasts indicate that the statistical Polish woman will live to almost 82 years, while the Polish man’s life will be 8 years shorter.

There is an increase in the average age of entering marriages and a delay in the decision to have the first child. In addition, 71% of marriages end due to the death of the spouse and only 29% due to divorce.

However, the precise size of the population is difficult to determine because, according to the data from the National Census of Population and Housing, there are even 2,017,000 people abroad, who are at the same time permanently and officially registered in Poland.

In Poland, since 1 January 2018, there are 930 cities. According to official data, the urbanization coefficient in Poland is 61%. However, only one city has a population of more than 1 million inhabitants and it is Warsaw, the other four largest cities have over 500 thousand inhabitants (i.e. Kraków, Łódź, Wrocław, Poznań).

According to official data, there are about 1,750,000 people living in the capital, but these figures include only those officially registered in the capital. There are reasonable assumptions about the potential number of inhabitants of up to 3 million people. In this largest city the population density is 3,355 person/km2, which is a big difference compared to the average population density in Poland, which is 123 person/km2. However, very large discrepancies are noticeable between individual regions of Poland: in the west of the country there are even 6 times more people per 1 km than in the east.

The ethnic diversity of Poland's inhabitants underwent drastic changes after the Second World War. At present, on the territory of Poland one can observe only a slight diversity in terms of nationality or ethnicity. The most numerous minority living in the territory of Poland are the Silesians (over 170 thousand). Another group are the Germans, 152,897 of whom inhabit the Polish territory. Then there are Belarusians, Ukrainians, Roma and Russians.

National and ethnic minorities in Poland 160000 140000 120000 100000 80000 60000 40000 20000 0

Source: own elaboration, Statistics Poland (GUS) data.

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Apart from Polish, which is an official language throughout the country, only in some regions of Poland you can meet regional dialects or other languages - Kashubian, Lemko, German, Lithuanian, Ukrainian and Belarusian.

The economic activity rate in the second quarter of 2018 amounted to 56.5% - data from Statistics Poland (formerly known as Central Statistical Office, GUS). At the same time, the unemployment rate (as of July 2018) was 5.9%, which is 1.1% lower than in 2017, when it was 7%.

The average gross monthly salary in the first quarter of 2018 amounted to PLN 4,622.84 (approx. 1,284 USD). On an annual basis, there was an increase in payments by 6.2%.

In August 2018, the average remuneration in large and medium-sized enterprises amounted to PLN 4,798.3 gross (ca. USD 1,333) (an increase by 6.8% y/y), according to the data of Statistics Poland (GUS). However, the wage differential between different voivodeships amounts to as much as PLN 1,700 (approx. USD 472). In the least developed regions of Poland, the standard salary is approx. 80% of the average of the wealthier regions. In general, average salaries above the national average are paid to staff employed in occupations belonging to the following groups: public authorities, senior officials and managers, and specialists in both the public and private sector.

The average life expectancy in Poland is 77 years and the average age of a Pole is estimated at 41 years. The fertility rate in Poland is low, insufficient for simple replacement of generations, as it amounts to only 1.3 children per woman, and the condition for replacement is the level of at least 2 descendants. This is the cause of rather worrying forecasts. The population will be ageing and shrinking. However, the fertility rate is expected to increase slightly.

Poles are characterized by a high level of education. The percentage of people with at least secondary education is exceptionally high and amounts to 90% (this applies to people between 25 and 64 years of age). For the same group, the OECD average is 67%. In addition to the sense of security, this is one of the reasons for the highly rated well-being of citizens, which is 7.4 points - in relation to the OECD average of 7.3 points.

The situation in Poland is also good in terms of the level of indebtedness of households, in Poland it amounts to EUR 2.4 thousand, and in the countries of the European Community it fluctuates around EUR 21.5 thousand.

According to the NBP, the average net assets of a household in Poland amount to EUR 60.6 thousand. The average for the European Community area is much higher and amounts to EUR 104.1 thousand. Net assets are calculated as all accumulated capital (cash, movable, immovable) minus debt.

Polish entrepreneurs are optimistic about the results of the international diagnostic tool SEDA (Sustainable Economic Development Assessment), which was developed by Boston Consulting Group. It is a more complex indicator for measuring the situation in the country than the standard GDP per capita. Factors that are taken into account in this general assessment of socio-economic conditions include indicators such as the level of health, the value of investments, the assessment of government, the level of social activity, equality of citizens or the level of infrastructure development.

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Thus, according to the SEDA survey of 2018, the situation in Poland is improving. The largest number of indicators, as many as 34, improved in Poland, which allowed it to advance by 10 positions in relation to the previous year and place it on the 32nd place.

Such a high result proves the general development of the country and the investments made, as well as the improving economic situation of its inhabitants. The published SEDA report may also be a great incentive for foreign entities to start operations in Poland.

The report is available on the website: https://www.bcg.com/publications/interactives/seda-2018-guide.aspx

POLITICAL AND ADMINISTRATIVE ORGANISATION

Political system

Poland's political system is a parliamentary democratic republic, which is a multi-party system with the Prime Minister as the head of government and the president as the head of state. Executive power is exercised by the President and the government, composed of the Council of Ministers and chaired by the Prime Minister. Members of the government are elected by a majority of members of the lower house of parliament (Sejm). Formally, the government is proclaimed by the president and must obtain a "vote of confidence" in the Sejm within two weeks.

Legislation belongs to two chambers of parliament. The upper house (Senate) has 100 senators, while the Sejm has 460 members. Parliament is elected by a majority of the electorate for a four-year term.

Members of the Sejm are elected by universal suffrage, equal, direct and proportional, in a secret ballot. The Sejm performs several functions, including in particular the legislative, control and initiation functions.

Senators are elected by universal suffrage and direct suffrage, by secret ballot. The Senate plays an important role in the process of amending the Constitution, as it is necessary to obtain its consent for such a change. Besides, the Senate has narrower competences than the Sejm. In the legislative procedure, after the adoption of a law by the Sejm, the Senate may approve it without changes, submit amendments or reject it.

In the Sejm and Senate of the current term, elected for the years 2015-2020, there are 5 parliamentary clubs and clubs of MPs, 3 groups of MPs and non-attached MPs: The Parliamentary Club "Law and Justice" (Prawo i Sprawiedliwość), Parliamentary Club "Civic Platform", (Platforma Obywatelska), Kukiz'15 Parliamentary Club (Kukiz'15), "Nowoczesna" Parliamentary Club (Nowoczesna), Parliamentary Club of the Polish People's Party (PSL), "Free and Solidarity" Parliamentary Deputies Group, "European Democrats" Parliamentary Deputies Group (UED), Group of Deputies of the Sejm "Republicans" (Republican) and a group of non- attached Members.

Administrative organisation

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Since 1999, Poland has had a three-tier territorial structure. It consists of: communes (2.478), districts (380) and voivodeships (16). Communes and districts are self-government units, while the commune is the smallest administrative unit in Poland, and voivodeships are governmental and self-government units. At the voivodeship level, the government is represented by the provincial governor. The Marshal is the highest representative of the voivodeship self- government. Councils are local self-government bodies that exercise authority and supervision. Their main task is to issue local regulations, approve the budget and collect local taxes and fees. Elections to municipal and county councils and voivodeship assemblies are universal, equal, direct and conducted by secret ballot.

PARTICIPATION IN INTERNATIONAL ORGANISATIONS AND AGREEMENTS

Participation of Poland in international organisations and treaties

Overview of organisations

List of the most important international organisations of which Poland is a member:

1. United Nations (UN), 2. United Nations Educational, Scientific and Cultural Organisation (UNESCO), 3. World Health Organisation (WHO), 4. World Trade Organisation (WTO), 5. Organisation for Security and Cooperation in Europe (OSCE), 6. Organisation for Economic Cooperation and Development (OECD), 7. North Atlantic Treaty Organisation (NATO), 8. European Union (EU), 9. European Economic Area (EEA).

The European Union

Poland has been a member of the European Union since 2004 and of the European Economic Area since 2005. In addition, since 2007 Poland has been a member of the Schengen Agreement, which abolished border controls between signatory states. Membership in these three organizations has the greatest impact on the daily life of Poles, as well as on the Polish market and economy.

The European Union framework

The European Union is a political and economic union of 28 European countries, founded in 1993 by the Maastricht Treaty. The common objectives of the countries renounced in the Union include, in accordance with the wording of the Treaty:

• promoting economic and social progress by strengthening economic cooperation and removing barriers to trade between Member States, • strengthening the image of the Union as a single political body speaking with one voice in the international arena through a common foreign policy,

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• striving to create European citizenship and a sense of belonging to a single community among ordinary citizens by ensuring equal legal standards and full freedom of movement of people within the Union, • the development of an area of freedom, security and fair treatment, to which the EU is to be a signatory, through the introduction of common legal and social standards and the continuous improvement of the living standards of poorer countries, • unification of the economic structure of the Member States, equalization of the economic development of the regions, • improving living standards.

The Union shall pursue its objectives by means of joint bodies and institutions and by means of legal acts drawn up by those bodies and institutions.

The institutions of the European Union

The most important bodies and institutions of the Union are:

• The European Commission, the main legislative and executive body, is made up of a College of Commissioners, composed of one Commissioner per Member State,

• The European Parliament is a legislative body whose members are elected by residents of EU countries,

• The Council of the European Union, a legislative body whose members are appointed by the governments of the countries of the Union and are recruited at ministerial level in those governments,

• European Council - a body responsible for providing general direction and impetus for EU policy, composed of the Heads of State or Government of the Member States,

• Court of Justice - the court with jurisdiction in cases concerning European Union law. It is responsible for the correct interpretation and application of EU legislation, for checking the legality of acts of the EU institutions and the compliance of Member States with their obligations under EU law. The Court of Justice also interprets Union law at the request of judges of national courts,

• The European Central Bank, the main institution of economic and monetary union, which is responsible for the conduct of European monetary policy in the euro area. The ECB and the national central banks of all EU Member States form the European System of Central Banks. The primary objective of the European System of Central Banks is to maintain price stability and, from 2014, also the supervision of credit institutions.

The far-reaching level of integration of markets and political institutions in Europe does not allow for an analysis of Poland's situation in isolation from the European Union. Although Poland is not in the euro area, the ECB's activities have a direct impact on neighbouring markets and thus an indirect impact on the Polish market. On the other hand, EU primary law, i.e. treaties establishing the EU, and secondary law, i.e. law created and adopted by EU institutions (regulations, directives, decisions, recommendations and opinions) have a direct impact on the legal situation in Poland - either because they are (in some cases) directly applicable or because the Polish state is obliged to adapt its national law to the objectives set out in EU law.

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European Union law

Any analysis of the legal framework conditions for business activity in Poland should also take into account the framework conditions applicable in the European Union, or EU plans, trends and legislative initiatives. On the other hand, the EU Member States have some freedom to issue the so-called transposition acts, i.e. legal acts that adapt national law to the EU law, and, moreover, EU law does not yet fully regulate all issues in the markets of individual Member States. In particular, attention should be paid to differences in tax law, company law and labour law.

The central idea of the European Union is a single common internal market. To create this market, EU legislators have adopted hundreds of laws to remove technical, regulatory and legal barriers across the EU. The internal market is a space that gives 500 million Europeans access to goods, services, employment and business opportunities in 28 Member States. It is based on four fundamental freedoms - the free movement of goods, workers, capital, and the freedom of establishment and the freedom to provide services.

The free movement of goods is made possible by the abolition of internal customs duties and quantitative restrictions and the prohibition of corresponding measures. The main means of creating a single market are, on the one hand, the promotion and expansion of pan-European standardisation (i.e. the development of European standards for goods) and, on the other hand, the mutual recognition of national laws and standards where European standards do not (yet) exist. In addition, the removal of physical and technical barriers, the strengthening of rules and controls on the marketing of products, the improvement of the EU market surveillance system and the CE marking (Conformité Européenne) for certain product groups also contribute to the completion of the internal market.

Free movement of workers includes the right of workers to move and reside and the right to work in another EU Member State and be treated on an equal footing with nationals of that Member State. It is not uniformly implemented throughout the Union and is subject to certain restrictions in some Member States, but the overriding aim is to harmonise the labour market.

Free movement of capital means that all restrictions on the movement of capital and payments between Member States and between Member States and third countries are prohibited. Exceptions are mainly limited to capital movements to or from third countries, although restrictions on intra-EU transfers may also be introduced in exceptional and justified cases (e.g. euro area crisis).

The freedom of establishment and the freedom to provide services are intended to guarantee the mobility of businesses and workers in the EU. As a general rule, business entities may provide services to customers from any EU country. Legal and practical implications include, for example, regulation of internet and telecommunication services (abolition of roaming charges), regulation of universal access to basic payment services or pan-European consumer protection rules (protecting consumers as buyers of both services and goods).

European Economic Area

The European Union is intertwined with the European Economic Area. The scope of the EEA Agreement extends all rights and obligations of the EU internal market to the countries of the European Free Trade Association (except Switzerland). The EEA covers the four freedoms of the EU internal market and related policy areas (competitiveness, transport, energy and economic and monetary cooperation). This agreement covers horizontal policies closely linked

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to the four freedoms, such as social policy, consumer protection, environmental protection, research and technological development, etc., and aims to implement common solutions not through common, binding EU legal acts, but through coordinated action by individual countries.

Schengen area

The third element of European integration is the so-called Schengen Agreement - thanks to the 1985 Agreement, Polish citizens can move around almost the whole of Europe (in the so- called "Schengen area") without border controls, without formalities and without the need to have a visa or even a passport - an identity card is sufficient. However, the real absence of internal borders makes it necessary for the Member States to manage the external borders of the Schengen area together.

The structures of the European Union are working in this direction: In 2016, the Schengen Borders Code was introduced by the Regulation of the European Parliament and the Council, which contains rules on border crossing points at the external borders. Moreover, as not all Member States have external borders that are subject to control and not all countries share the same level of border traffic, the EU compensates Member States at the external borders (e.g. Poland) for part of the costs incurred by them in the framework of border control. In addition, the Schengen countries have put in place a number of supporting instruments, such as centralised databases (Schengen Information System SIS, Visa Information System VIS and the European Automated Fingerprint Identification System Eurodac), regulations to prevent unlawful entry, transit and stay, as well as instruments on operational cooperation in border management, which focus on the European Border and Coastal Guard Agency (Frontex).

Other informal organisations and associations

Membership in global organisations, such as the UN, WTO or WHO, is no less important from a political point of view, but it has a much lesser impact on the lives of the country's inhabitants. A special role in the network of Poland's links with the world is played by NATO - currently the largest and strongest military alliance in the world, of which Poland has been a member since 1999. Through joint activities and the development of military infrastructure and organisation, Poland has become an active and integrated member of the alliance, which in turn is one of the main elements of the Polish defence policy.

In addition, Poland is a member of several informal interest groups, such as the G6 (a group of the six most populous countries of the European Union, cooperating in areas relevant to security) or the Three Seas Iniciative (a group of former Eastern Bloc countries cooperating on energy, logistics, transport and information and telecommunications issues). These groups do not have official structures and operate on the basis of more or less loose cooperation and coordination of activities.

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LAW, ECONOMY, FINANCE AND TAXES

Legal system

Polish law is common to private and public law. The highest law is the Constitution of Poland. Polish law is created by the Polish Parliament (Sejm and Senate).

Polish public and private law is divided into various areas, including

• civil law, a significant part of which is contained in the Polish Civil Code, • commercial law, in particular the Commercial Companies Code, • copyright, • administrative law, • constitutional law, • private international law, • tax law, • criminal law, • family law, • labour law, • water law, • media law.

Forms of conducting business activity in Poland

According to the Polish law, running a business activity by entrepreneurs may take place in the form of business activity conducted individually or in the form of entities.

The Polish Commercial Companies Code and the Civil Code identify the following categories of entities:

Entity - legal form Name in Polish Characteristics

Partnership Spółka Partnerska two or more partners, partially limited liability of the partners *

Civil law firm Spółka Cywilna two or more partners, unlimited liability of the partners *

General partnership Spółka Jawna two or more partners, unlimited liability of the partners *

Limited partnership Spółka Komandytowa two categories of partners - a limited partner responsible for commitments up to the amount specified in the

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partnership agreement and a general partner with unlimited liability,

Partnership limited by shares Spółka Komandytowo - (unlimited liability), share akcyjna capital of at least PLN 50,000 (approx. USD 13,889)

Limited Liability Company Spółka z ograniczoną share capital of at least PLN odpowiedzialnością 5,000 (approx. USD 1,389)

Joint stock company Spółka Akcyjna share capital of at least PLN 100,000 (approx. USD 27,777)

* there are some differences in the ability of these entities to act

Polish law ensures freedom of business activity for every entrepreneur. This means that everyone has an equal right to choose the right form of activity that suits their needs.

The most common forms of business activity are commercial companies, in particular limited liability companies (about 84% of all entities) and general partnerships.

Current economic situation

Poland is a European country with a dynamic economy and high development potential. Since the change of the political system in 1989 and the adoption of a free market economy, Poland has experienced constant positive changes which led to its accession to the EU. The Polish economy is based on the potential of 38 million local consumers, but is also open to foreign investors.

Poland is an economically stable country with many small and medium-sized enterprises operating in a consumer-friendly environment in markets that are rather strictly regulated.

Poland is the only European economy to have escaped the recession of the end of the 21st century. This could have been due to a strong internal market, low private debt, a flexible currency and a lack of dependence on only one export sector. According to the World Bank, before the crisis, the growth of the Polish economy calculated by the gross domestic product (GDP) amounted to 7.04% annually. In 2017 Economic growth was 4.55% and the growth rate in 2018 shall be 4.7%. Despite the decrease in annual GDP growth rates, the Polish economy is still doing well and, which is worth noting, its development is higher than the growth of the entire EU economy (Table 1).

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Table 1: GDP growth (annual %, World Bank)

8

6

4

2

Poland 0

the EU

2010 2012 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2011 2013 2014 2015 2016 2017 -2 1991

-4

-6

-8

The stable economic situation and steady growth was noticed by the FTSE Russell index provider (provider of benchmarks for leading global investment funds), which announced that since September 2018 the status of the Polish market has been promoted from a developing market to a developed market. This decision means that Poland has joined the 25 most developed economies in the world, including Germany, France, Japan, Australia and the United States. Poland is the first economy in Central and Eastern Europe that has been updated by FTSE Russell to the status of a developed market.

Macroeconomic indicators

Poland is considered the eighth largest economy in the EU and the largest economy among the former members of the European Union from the Eastern Bloc (Table 2).

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Table 2: GDP, current prices (billions of USD, IMF) 4500

4000

3500 France

3000 Germany

2500 Italy Netherlands 2000 Poland 1500 Spain 1000 Switzerland 500 United Kingdom 0

According to the International Monetary Fund (IMF), Poland's GDP per capita was around USD 14,000 in 2017, which represented 45% of the European average, compared to 30% in the year preceding accession to the EU (Table 3).

Table 3: GDP per capita, current prices (USD per capita, IMF) 45000

40000

35000

30000

25000 Poland Eastern Europe 20000 European Union 15000 Europe average

10000

5000

0

1988 2008 1982 1984 1986 1990 1992 1994 1996 1998 2000 2002 2004 2006 2010 2012 2014 2016 2018 1980

The Polish economy has been developing steadily over the last 26 years, which is a record high in comparison to other EU countries. Such an increase was exponential, referring to GDP per capita, with a simultaneous increase in purchasing power parity of 6% per year over the

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last 20 years, which is the most impressive result in Central Europe, as a result of which the country has multiplied its GDP since 1990 (Table 4).

Table 4. GDP per capita (purchasing power parity, billions of USD, World Bank) 1400

1200

1000

800

600 Poland

400

200

0

2002 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2004 2006 2008 2010 2012 2014 2016 2018 1980

Since the opening of the labour market in the European Union in 2004, Poland has experienced a significant process of emigration, as more than 2.3 million Polish citizens have decided to go abroad. This was mainly due to the higher wages offered in developed countries and the expectation of a higher standard of living.

However, since joining the EU, the unemployment rate in Poland has been steadily decreasing, reaching 4.9% in 2017. According to the IMF the unemployment rate in August 2018, based on EUROSTAT data, was 3.4%, the second lowest rate in the EU. This result is significantly lower than in developed countries or in the euro area (Table 5).

Table 5: Unemployment rate (%, IMF) 25

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15 Poland

10 Advanced economies Euro area 5

0

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In Poland the occupational structure is diversified. According to Statistics Poland, the labour force in Poland is divided in the following way:

Table 6: Workforce by occupation, Q4 2017 (CSO)

9,60%

agriculture

31,50% industry 58,60% services

Of the workforce, 24.3% are employed in the public sector and 75.7% in the private sector.

Poland is considered by the United Nations (UN) to be a highly developed country due to its Human Development Index (HDI), taking into account factors such as life expectancy, the average length of education completed over 25 years and the expected time of education of schoolchildren and GDP per capita after the purchasing power parity measurement. HDI index in 2017 amounted to 0.865, which gives Poland 33rd place in the world out of 189 countries included in the ranking.

Main sectors of the economy

Poland's economy is mixed. The state sector currently accounts for about 25% of GDP, which is comparable to countries such as France and Norway. The State Treasury controls, among others, the PKP Group (railway), the KGHM Group (copper producer), the PKN Orlen Group (oil and gas), the PGNiG Group (oil and gas) and the PZU Group (finance and insurance).

Products and goods produced in Poland include: electronics, buses (Solaris), helicopters and airplanes and their parts (PZL Świdnik, PLZ Mielec), trains and trams (PESA Bydgoszcz S.A.), ships (Gdańsk Shipyard, Szczecin Shipyard, Naval Shipyard), military equipment (FB "Łucznik" Radom, Bumar - Łabędy S.A.), medicines (Polpharma, Polfa), food (Tymbark, Hortex, E. Wedel), clothing (LLP), glass, ceramics (Bolesławiec), chemical products and others.

Poland is also one of the world's largest producers of copper, silver and coal, as well as potatoes, rye, rapeseed, cabbage, apples and strawberries.

Table 7 of GDP - composition by sector of origin, 2017. (CIA, The World Factbook)

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2,40%

agriculture 40,20% industry 57,40% services

The most developed industries in Poland are, among others:

• agriculture and fisheries, • food industry, • transport, • IT, • banking, • furniture industry, • mining, • conventional and green energy, • metallurgical industry, • mechanical engineering, • automotive industry, • construction, • tourism.

Economic challenges

Poland still faces a number of economic challenges, such as addressing some of the shortcomings in road and rail infrastructure, a rigid labour code, the economic judiciary system, government bureaucracy, the business environment and a burdensome tax system, especially for entrepreneurs.

Additional long-term objectives include diversifying Poland's energy mix, increasing investment in innovation, research and development, and limiting the outflow of educated young Poles to other EU Member States, especially in view of the imminent demographic decline caused by emigration, reduced fertility rates and the ageing of the Solidarity baby boom generation.

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CURRENCY AND FINANCE

Currency

The currency in Poland is the Polish zloty (PLN), which is exchangeable with most foreign currencies. One zloty is divided into 100 groszy.

Average exchange rates in PLN

Average exchange rates between PLN and popular currencies are at the following levels:

• 1 EUR costs about PLN 4.2, • 1 USD costs about PLN 3.61, • 1 GBP costs about PLN 4.7.

These indicators have been rather stable in recent years (Tables 8-10).

Table 8: EUR/PLN exchange rate (Bankier.pl)

Table 9 USD/PLN exchange rate (Bankier.pl)

1 Foreign exchange rate USD/PLN used in calculations in subsequent tables for presentation purposes.

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Table 10 GBP/PLN exchange rate (Bankier.pl)

Banking and financial system

The Polish banking sector is one of the largest in Central and Eastern Europe and has a highly developed and modern financial services infrastructure. The banking sector plays a dominant role in the financial system, accounting for approximately 70% of the assets of the financial sector. There are several public banks, but in general the sector is largely private, as about 80 per cent of the market is controlled by commercial (private) banks.

The banking and financial sector is regulated by the Polish Financial Supervision Authority (KNF). However, in spite of strict regulations, the authorities apply market economy with competition rules and do not prevent foreign investors from entering the banking and financial sector in Poland.

At the end of 2017, the Polish financial landscape consisted of 35 commercial banks, 553 cooperative banks and 28 branches of credit institutions. In 2017, the ownership structure of the Polish banking sector changed. For the first time since 1999, the share of domestic

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investors in the sector's assets was higher than the share of foreign owners. At the end of 2017 it amounted to 54.5% (compared to 43.4% in 2016).

On the other hand, strategic projects of national importance are often managed by a state- owned bank - Bank Gospodarstwa Krajowego (BGK). It manages special-purpose assets (such as urban development, roads, construction and technology) and is also responsible for the payment of most of the EU funds allocated to Poland. Moreover, BGK provides special credit services, including mortgage loans and guarantees for export companies and issues bonds to finance infrastructure projects.

In addition to traditional banking and financial services, Poland is known for its high-end IT services. The popularity of internet and mobile banking continues to grow, which results in a rapid shrinking of the bank network. Banks' investment in new technologies is likely to continue to grow, inter alia due to the entry into force of PSD 2 (Directive changing the landscape of payment services) and the creation of the Polish API standard (unified interface for access to bank accounts for third parties). The internet and mobile banking sector is so developed that all large Polish banks offer advanced online services. IT services include balancing functions, cash transfers, deposits, currency exchange, etc.

Taxation

Corporate taxation

Resident companies Corporate taxation is regulated by the Corporate Income Tax Act ("CIT"). CIT covers all legal entities, including:

• companies (limited liability companies, joint stock companies), • companies in the organization, • entities without legal personality (except for partnerships), • foreign persons without legal personality, provided that they are treated as companies and are subject to unlimited tax liability in their home countries, • Polish limited joint-stock partnerships.

Residents and non-residents The general rule is that the Polish CIT should be calculated for:

• income earned anywhere in the world - for taxpayers having their registered office or management board in Poland (tax residents), • income earned on the territory of Poland - for all other taxpayers (being non- residents).

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CIT filing CIT shall be calculated on an annual basis. The annual CIT return shall be submitted by the end of the third month following the end of the tax year. During the tax year, monthly or quarterly tax advances are required.

Tax rate and tax base Two different CIT rates are envisaged for CIT taxpayers: 19% and 15% (the latter has been in force since January 2017 and applies only to the so-called "small entities" or some entities starting their business, starting from 2019 it shall drop to 9%). In some situations, a penalty tax rate of 50% may be applied in case of profit adjustment to transactions with related parties (transfer pricing). Other rates may apply to non-residents or double taxation conventions.

Double tax treaties Poland has signed double taxation treaties (DTTs) with about 90 countries around the world. It is worth underlining that Brazil is not among these countries.

The DTT provides for rules determining the scope of taxation in the case of income received in a given State by a resident of another State. In particular, the DTTs shall apply to income taxes (corporate income tax and personal income tax).

Transfer pricing Poland has implemented transfer pricing rules based on the arm's length principle (market price level). Poland generally adheres to the OECD Transfer Pricing Guidelines for profit assessment methods. Documentation requirements for transactions with related enterprises and a system of penalties for transfer pricing adjustments are relatively strict.

Personal taxes

Residents and non-residents Persons considered to be Polish tax residents are subject to taxation in Poland on their global income, regardless of where the source of income is located (unlimited tax liability).

A natural person is classified as a Polish tax resident when:

• has its centre of vital or economic interests in Poland, or • resides on the territory of Poland for a period longer than 183 days in a given tax year.

Income tax Polish employers act as tax payer in respect of the taxable pay and tax payable by their employees until the 20th day of the month following the month of payment. As a rule, annual

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tax returns are submitted individually by employees, but in some cases they may choose to submit a tax return through the employer.

Self-employed persons and persons paid by a foreign entity are personally responsible for the payment of monthly advances, usually by the 20th day of the following month. An annual tax return covering all sources of income and showing all additional taxes due must be submitted (and the tax due must be paid) by 30 April of the following year. A separate annual tax return should be filed in respect of capital gains (e.g. derived from the sale of shares). Married couples may submit joint tax returns. Their tax liability is then calculated by dividing their total income by half and multiplying by two.

Personal tax rates Generally, the income received by individuals is subject to a progressive scale, with applicable rates of 18% and 32%.

When income is obtained as a result of business activity (i.e. self-employment or participation in a partnership), one can opt for a flat PIT rate of 19% by submitting an application to the appropriate tax authority within the required deadline.

Some types of income - capital gains, interest, dividends, income from the sale of real estate - are taxed at a flat PIT rate of 19%.

Polish non-residents may benefit from a 20% flat PIT rate on income from so-called personal activities and management services.

Personal income tax rates:

Tax base in PLN Amount of tax up to 85,528 18% of the tax base minus the amount reducing the tax due according to the tax base more than 85,528 15,153.95 PLN + 32% of the amount exceeding 85,528 PLN

Value added tax

General information

Value added tax was introduced in Poland in 1993 and then significantly changed in 2004 due to Poland's accession to the European Union. The current VAT law is in line with the relevant EU VAT legislation, including the EU VAT Directive.

VAT registration

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All entities which carry out activities subject to VAT in Poland are obliged to register before starting their first taxable activity. After VAT registration, they gain the status of active VAT taxpayers.

Taxpayers must notify the Polish tax authorities in advance if they intend to carry out intra- Community transactions. On the basis of this notification, the entity is registered as an EU VAT payer. Taxpayers whose net taxable sales did not exceed PLN 200,000 (approx. USD 55,555) in the previous year are exempt from VAT (except for certain activities). Similarly, taxpayers who commence taxable sales during a tax year are exempt from VAT if the expected net amount of their taxable sales does not exceed PLN 200,000. However, taxpayers may opt for such taxation on condition that they notify the competent tax office of their intention.

VAT rates

There are four VAT rates in Poland: the standard rate of 23% and reduced rates of 8%, 5% and 0%. The basic rate applies to all supplies of goods or services, unless a special provision allows for a reduced rate or exemption.

Recovery of input VAT

Taxpayers may recover input tax, e.g. VAT paid on purchases of goods and services which are used in taxable activities by taxable persons, by deducting it from output tax, e.g. input VAT on supplies made.

Tax paid, e.g. on accommodation and restaurant services, as well as on the partial purchase of fuel, diesel or gas used in passenger cars (in some cases) cannot be recovered. Also input tax directly linked to exempt supplies is generally not refundable (but may, under certain conditions, be deducted as an expense for income tax purposes), but there are certain exceptions.

Any excess input VAT may be carried forward to the following year and deducted from future VAT liabilities or reimbursed. Refunds are usually made within 60 days. In some circumstances, this period may be reduced to 25 days. If the company does not perform taxable activities in a given period, the refund period is extended to 180 days.

Invoicing

Polish VAT regulations allow taxpayers to issue and store invoices electronically in order to save administrative costs and time. The standard invoice date is the 15th day of the month following the month in which the goods or services are delivered, with some exceptions.

Split payment

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Under the 'split payment' procedure payments for invoices are divided into two parts: one paid directly to the contractor and the other part, equal to the VAT charged on the invoice, payable to a separate bank account, the use of which will be subject to restrictions. The VAT Act contains detailed rules for the application of split payments.

Reverse charge

Contrary to the general rules, there are certain situations in which the customer is treated as a VAT payer in a given transaction and is obliged to charge VAT on such a transaction (i.e. under the reverse charge mechanism). Such situations may arise in the case of both the provision of services and the supply of goods.

According to VAT legislation, a purchaser of goods should be regarded as a taxable person if several conditions are met at the same time, primarily in order to apply the reverse charge mechanism, it should be determined whether the foreign entity supplying the goods (assuming that it is not established in Poland):

• does not have a permanent establishment for VAT purposes in Poland • is neither VAT registered in Poland nor is it obliged to be VAT registered in Poland in connection with other transactions.

In addition, in the case of domestic sales of certain goods (i.e. electronic, steel products, metals, secondary raw materials) or the provision of certain services (construction services, if provided by subcontractors), the reverse charge mechanism may apply (some additional conditions should be verified).

Tax on civil law transactions (PCC)

Polish PCC is a type of stamp duty imposed when concluding certain agreements, transactions or other activities, for example: concluding loan agreements, changing company’s statutes, increasing the share capital, sale agreements (including real estate), etc.

As a rule, PCC is not collected if the transaction is subject to VAT or exempt from VAT, but with certain exceptions, for example with respect to the sale of real estate (the PCC may apply even if the transaction is exempt from VAT). Tax rates vary, mostly between 0.5 and 2%.

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INTERNATIONAL TRADE OF THE COUNTRY

LATEST TRENDS

Recently Polish trade in goods with foreign countries has increased. The increase in imports is more intense than the export growth rate. The increase in trade in goods took place for all groups of countries, but it was most pronounced for the countries of Central and Eastern Europe.

In 2017 exports amounted to over PLN 882,620 million and imports to over PLN 880,078 million (approx. USD 244,466 billion). The balance is therefore positive and amounts to over PLN 2,5 billion (approx. USD 0,7 billion).

Turnover in million PLN/USD (data for 2017) Exports PLN 882,620 (approx. USD 245,172) Imports PLN 880,078 (approx. USD 244) Balance PLN 2,541 (approx. USD 706)

Turnover in million PLN/USD (data for 2016) Exports PLN 803,478 (approx. USD 223,188) Imports PLN 786,470 (approx. USD 218,463) Balance PLN 17,008 (approx. USD 4,724)

Poland exports and imports mainly in relations with developed countries, usually from the European Union. The amount of export with developed countries is approx. PLN 764,600 million, including PLN 706,460 million with EU countries. The amount of imports with developed countries is approx. PLN 595,950 million, including PLN 531,380 million with EU countries.

Turnover in million PLN/USD (data for 2017) with the European Union Exports PLN 706,459 (approx. USD 196,239) Imports PLN 531,379 (approx. USD 147,605) Balance PLN 175,080 (approx. USD 48,633)

Turnover in million PLN/USD (data for 2016) with the European Union Exports PLN 641,310 (approx. USD 178,142) Imports PLN 481,667 (approx. USD 133,796) Balance PLN 159,644 (approx. USD 44,345)

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ORIGIN AND DESTINATION

Before the outbreak of World War II, such countries as Germany, Great Britain, the United States, Austria and Czechoslovakia were among Poland's biggest contractors. After the end of World War II, Poland found itself in the sphere of influence of the USSR. This had a significant impact on the country's economy. The most important economic partners of the country included the countries of the Eastern bloc, i.e. the USSR, Czechoslovakia and the GDR. Since the seventies of the twentieth century trade with the Federal Republic of Germany - a country on the western side of the Iron Curtain - has also been intensified.

In 1989 the political system changed in Poland. Poland revived cooperation with the West - in 1999 it became a member of NATO, and in 2004 of the European Union. These events also translate into a change in Poland's most important economic partners.

Main foreign trade partners Year First partner Second partner Third partner 1929 Imports Germany United States Great Britain Exports Germany Czechoslovakia Austria 1938 Imports Germany United States Great Britain Exports Great Britain Germans Sweden 1950 Imports USSR Czechoslovakia GDR Exports USSR GDR Czechoslovakia 1955 Imports USSR GDR Czechoslovakia Exports USSR GDR Great Britain 1960 Imports USSR GDR Czechoslovakia Exports USSR GDR Czechoslovakia 1965 Imports USSR GDR Czechoslovakia Exports USSR Czechoslovakia GDR 1970 Imports USSR GDR Czechoslovakia Exports USSR GDR Czechoslovakia 1975 Imports USSR GERMANY GDR Exports USSR GDR Czechoslovakia 1980 Imports USSR GERMANY GDR Exports USSR GERMANY Czechoslovakia 1985

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Imports USSR GERMANY GDR Exports USSR GERMANY Czechoslovakia 1990 Imports Germany USSR Italy Exports Germany USSR Great Britain 1995 Imports Germany Italy Russia Exports Germany Holland Russia 2000 Imports Germany Russia Italy Exports Germany Italy France 2005 Imports Germany Russia Italy Exports Germany France Italy 2010 Imports Germany Russia China Exports Germany France Great Britain 2015 Imports Germany China Russia Exports Germany Great Britain Czech Republic 2016 Imports Germany China Russia Exports Germany Great Britain Czech Republic

Currently, Germany is Poland's largest economic partner. The value of trade with Germany amounts to approximately PLN 242,586 million (approx. USD 67,385 million) in exports and PLN 204,000 million (approx. USD 56,550 million) in imports. Germany's export share is around 27% and that of imports is 23%.

After Germany, Poland's other trade partners are as follows: Great Britain (6.4%), Czech Republic (6.4%), France (5.6%), Italy (4.9%), Holland (4.4%), Russia (3.0%), Sweden (2.8%), Spain and United States (2.7% each). In imports - China (11.9%), Russia (6.5%), Italy (5.2%), France (3.9%), the Netherlands (3.8%), the Czech Republic (3.5%), the United States (2.9%), Belgium (2.6%) and the United Kingdom (2.3%).

Export structure by destination countries (data for 2017) Country Amount (in million Percentage PLN/USD) Germany PLN 242,586 9 27,48 (approx. USD 67,385) Great Britain PLN 56,819 (approx. USD 6,44 11,344) Czech Republic PLN 56,811 6,4 (approx. USD 15,783) France PLN 49,691 5,63 (approx. USD 13,803) Italy PLN 43,225 4,9

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(approx. USD 12,007) Holland PLN 38.828 4,4 (approx. USD 10,786) Russia PLN 26,353 3,0 (approx. USD 7,320) Sweden PLN 24,844 2,8 (approx. USD 6,901) Spain PLN 24,045 2.7 (approx. USD 6,679) United States PLN 23,368 2.7 (approx. USD 6,491)

Structure of imports by country of origin (data for 2017) Country Amount (in million Percentage PLN/USD) Germany PLN 203,580 23.1 (approx. USD 56,550) China PLN 103,677 11.8 (approx. USD 28,799) Russia PLN 55,934 6.4 (approx. USD 15,537) Italy PLN 46,868 5.3 (approx. USD 13,019) France PLN 34,159 3.9 (approx. USD 9,489) Holland PLN 33,623 3.8 (approx. USD 9,340) Czech Republic PLN 31,745 3.6 (approx. USD 8,818) United States PLN 25,027 2.8 (approx. USD 6,952) Belgium PLN 22,525 2.6 (approx. USD 6,257) Great Britain PLN 21,140 2.4 (approx. USD 5,872)

Export structure by destination countries (data for 2016) Country Amount (in million Percentage PLN/USD) Germany PLN 220,024.3 27.4 (approx. USD 61,118) Great Britain PLN 53,436.9 6.7 (approx. USD 14,844) Czech Republic PLN 52,801 6.6 (approx. USD 14,667) France PLN 44,215 5.5 (approx. USD 12,282) Italy PLN 38,300.2 4.8

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(approx. USD 10,639) Holland PLN 36,004.4 4.5 (approx. USD 10,001) Sweden PLN 23,288.8 2.9 (approx. USD 6,469) Russia PLN 22,694.6 2.8 (approx. USD 6,304) Spain PLN 21,828.4 2.7 (approx. USD 6,063) Hungary PLN 21,296 2.7 (approx. USD 5,916)

Structure of imports by country of origin (2016 data) Country Amount (in million Percentage PLN/USD) Germany PLN 183,201.5 23.3 (approx. USD 50,889) China PLN 94,235.2 12 (approx. USD 26,177) Russia PLN 45,337.9 5.8 (approx. USD 12,594) Italy PLN 43,722.1 5.6 (approx. USD 12,145) France PLN 31,273.7 4.0 (approx. USD 8,687) Holland PLN 30,216.5 3.8 (approx. USD 8,394) Czech Republic PLN 28,468 3.6 (approx. USD 7,908) United States PLN 22,135.3 2.8 (approx. USD 6,149) Belgium PLN 20,842.2 2.7 (approx. USD 5,790) Great Britain PLN 20,355 2.6 (approx. USD 5,654)

Trade with the countries of Central and Eastern Europe is growing, mainly with Russia and Ukraine. Exports with countries from this region increased to the level of approximately PLN 51,000 million, and imports to the level of approximately PLN 70,000 million. The exchange closed with a negative balance of approximately PLN 18,557 million.

Turnover in million PLN/USD (data for 2017) with the countries of Central and Eastern Europe Exports PLN 51,130 (approx. USD 14,203) Imports PLN 69,687 (approx. USD 19,358) Balance PLN -18,557 (approx. USD -5,155)

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Turnover in million PLN/USD (2016 data) with European countries Central and Eastern Europe Exports PLN 43,899 (approx. USD 12,194) Imports PLN 56,757 (approx. USD 15,765) Balance PLN -12,858 (approx. USD -3,571)

Both exports and imports are dominated by trade with European countries, especially from the European Union.

Export in million PLN/USD (data for 2017) - continents Total PLN 882,619 (approx. USD 245,172) Europe PLN 782,617 (approx. USD 217,394) The European Union PLN 706,171 (approx. USD 196,159) Other European countries PLN 76,446 (approx. USD 21,235) Africa PLN 9,715 (approx. USD 2,699) North America PLN 28,549 (approx. USD 7,930) Central and South America PLN 8,715 (approx. USD 2,421) Asia PLN 49,248 (approx. USD 13,680) Australia and Oceania PLN 3,368 (approx. USD 936)

Imports in million PLN/USD (data for 2017) - continents Total PLN 880,078 (approx. USD 244,466) Europe PLN 620,553 (approx. USD 172,376) The European Union PLN 531,339 (approx. USD 147,594) Other European countries PLN 89,214 (approx. USD 2,559) Africa PLN 6,776 (approx. USD 1,882) North America PLN 27,658 (approx. USD 7,683) Central and South America PLN 16,210 (approx. USD 4,503) Asia PLN 203,692 (approx. USD 56,581) Australia and Oceania PLN 2,502 (approx. USD 695)

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Exports in million PLN/USD (data for 2016) - by groups of countries Total PLN 803,477.8 (approx. USD 223,188) OECD PLN 667,634.6 (approx. USD 185,453) The European Union PLN 641,310.3 (approx. USD 178,141) EFTA PLN 17,885.8 (approx. USD 4,968) Developing countries PLN 66,044.6 (approx. USD 18,345) Countries of Central and Eastern Europe PLN 43,899.4 (approx. USD 12,194)

Imports in million PLN /USD (data for 2016) - by groups of countries Total PLN 786,470.1 (approx. USD 218,463) OECD PLN 545,807 (approx. USD 151,613) The European Union PLN 481,666.6 (approx. USD 133,796) EFTA PLN 14,862.3 (approx. USD 4,128) Developing countries PLN 193,118.7 (approx. USD 53,643) Countries of Central and Eastern Europe PLN 56,757.2 (approx. USD 15,765)

In terms of trade with Central and South American countries, Brazil is one of Poland's leading contractors. Exports to Brazil amounted to PLN 1,561 million. A higher level of exports was recorded only in relations with Mexico: PLN 2,570 million. Brazil is the leader in terms of imports to Poland: PLN 4,541 million.

It is worth noting that the balance of trade with Central and South American countries is negative. The amount of export is PLN 8,714 million, while the amount of import is PLN 16,210 million.

Export in million PLN/USD (data for 2017) - Central and South America Total PLN 8,714 (approx. USD 2,421) Antigua and Barbuda PLN 647 (approx. USD 180) Argentina PLN 629 (approx. USD 175) Bahamas PLN 1,154 (approx. USD 321) Barbados PLN 79

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(approx. USD 22) Bolivia PLN 37 (approx. USD 10) Brazil PLN 1,561 (approx. USD 434) Chile PLN 449 (approx. USD 125) Dominican Republic PLN 54 (approx. USD 15) Ecuador PLN 79 (approx. USD 22) Guatemala PLN 49 (approx. USD 14) Colombia PLN 258 (approx. USD 72) Costa Rica PLN 55 (approx. USD 15) Cuba PLN 165 (approx. USD 46) Mexico PLN 2,570 (approx. USD 714) Nicaragua PLN 6 (approx. USD 1,7) Panama PLN 178 (approx. USD 49) Paraguay PLN 51 (approx. USD 14) Peru PLN 246 (approx. USD 68) Uruguay PLN 79 (approx. USD 22) Venezuela PLN 90 (approx. USD 25)

Imports in million PLN/USD (data for 2017) - Central and South America Total PLN 16,210 (approx. USD 4,503) Antigua and Barbuda PLN 407 (approx. USD 113) Argentina PLN 3,094 (approx. USD 859) Bahamas PLN 1,075 (approx. USD 299) Barbados PLN 77 (approx. USD 21) Bolivia PLN 75 (approx. USD 21) Brazil PLN 4,540

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(approx. USD 1261) Chile PLN 724 (approx. USD 201) Dominican Republic PLN 157 (approx. USD 44) Ecuador PLN 742 (approx. USD 206) Guatemala PLN 142 (approx. USD 40) Colombia PLN 591 (approx. USD 164) Costa Rica PLN 463 (approx. USD 129) Cuba PLN 11 (approx. USD 3,06) Mexico PLN 2,599 (approx. USD 722) Nicaragua PLN 104 (approx. USD 29) Panama PLN 8 (approx. USD 2.2) Paraguay PLN 578 (approx. USD 161) Peru PLN 400 (approx. USD 111) Uruguay PLN 206 (approx. USD 57) Venezuela PLN 101 (approx. USD 28)

Exports in million PLN/USD (data for 2016) - Central and South America Argentina PLN 310.4 PLN (approx. USD 86.2) Brazil PLN 1,424.4 PLN (approx. USD 395.7) Chile PLN 376.2 (approx. USD 104.5) Ecuador PLN 48.2 (approx. USD 13,4) Guatemala PLN 26,8 (approx. USD 7.4) Honduras PLN 12 (approx. USD 3.3) Colombia PLN 385.6 (approx. USD 107.1) Costa Rica PLN 48.2 (approx. USD 13.4) Cuba PLN 190.7

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(approx. USD 53) Mexico PLN 2,081.4 (approx. USD 578.2) Panama PLN 221.9 (approx. USD 61.6) Peru PLN 222.1 (approx. USD 61.7) Salvador PLN 11.8 (approx. USD 3.3) Uruguay PLN 49.7 (approx. USD 13.1) Venezuela PLN 77.5 (approx. USD 21.5)

Imports in million PLN/USD (data for 2016) - Central and South America Argentina PLN 2,844.7 (approx. USD 790.2) Brazil PLN 3,566.6 (approx. USD 990.7) Chile PLN 826.5 (approx. USD 229.6) Ecuador PLN 782.3 (approx. USD 216.8) Guatemala PLN 89.3 (approx. USD 24.8) Honduras PLN 34.1 (approx. USD 9.5) Colombia PLN 526.4 (approx. USD 146.2) Costa Rica PLN 433.3 (approx. USD 120.3) Cuba PLN 6.9 (approx. USD 1.9) Mexico PLN 2,134.7 (approx. USD 593) Panama PLN 119.2 (approx. USD 33.1) Peru PLN 161.8 (approx. USD 44.9) Salvador PLN 3.9 (approx. USD 1) Uruguay PLN 214.6 (approx. USD 59.6) Venezuela PLN 87.9 (approx. USD 24.4)

COMPOSITION BY PRODUCT

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Poland's most important export products are machinery, equipment and transport equipment (approximately PLN 326,809 million), as well as industrial goods (approximately PLN 165,000 million). These categories of goods also prevail in the structure of imports, in which trade in chemicals has a significant share (approximately PLN 127,700 million).

Export in milion PLN/USD (data for 2017) - categories of goods (SITC) Total PLN 882,619 (approx. USD 245,172) Food and live animals PLN 96,948 (approx. USD 26,930) Beverages and tobacco PLN 15,956 (approx. USD 4,432) Inedible raw materials except fuels PLN 19,200 (approx. USD 5,333) Mineral fuels, lubricants and related PLN 21,710 materials (approx. USD 6,031) Animal and vegetable oils, fats and PLN 1,337 waxes (approx. USD 371) Chemicals and related products PLN 84,211 (approx. USD 23,392) Industrial goods classified mainly by raw PLN 165,054 material (approx. USD 45,848) Machinery, equipment and transport PLN 326,809 equipment (approx. USD 90,780) Miscellaneous manufactured goods 149,400 (approx. USD 41,500) Goods and transactions not classified in PLN 1,989 the SITC (approx. USD 553)

Imports in milion PLN/USD (data for 2017) - categories of goods (SITC) Total PLN 880,078 (approx. USD 244,466) Food and live animals PLN 65,838 (approx. USD 18,288) Beverages and tobacco PLN 6,474 (approx. USD 1,798) Inedible raw materials except fuels PLN 27,711 (approx. USD 7,698) Mineral fuels, lubricants and related PLN 61,708 materials (approx. USD 17,141) Animal and vegetable oils, fats and PLN 3,647 waxes (approx. USD 1,013) Chemicals and related products PLN 127,702 (approx. USD 35,473) Industrial goods classified mainly by raw PLN 155,635 material (approx. USD 43,232) Machinery, equipment and transport PLN 305,927 equipment (approx. USD 84,980)

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Miscellaneous manufactured goods PLN 112,582 (approx. USD 31,273) Goods and transactions not classified in PLN 12,851 the SITC (approx. USD 3,570)

Exports in million PLN/USD (data for 2016) - categories of goods (SITC) Total PLN 803,477.8 (approx. USD 223,188) Food and live animals PLN 87,946.9 (approx. USD 24,429) Beverages and tobacco PLN 12,044.0 (approx. USD 3,345) Inedible raw materials except fuels PLN 16,957.4 (approx. USD 4,710) Mineral fuels, lubricants and related PLN 19,941 materials (approx. USD 5,539) Animal and vegetable oils, fats and PLN 2,215.9 waxes (approx. USD 615) Chemicals and related products PLN 73,541.6 (approx. USD 20,428) Industrial goods classified mainly by raw PLN 148,920.6 material (approx. USD 41,366) Machinery, equipment and transport PLN 306,606.1 equipment (approx. USD 85,168) Miscellaneous manufactured goods PLN 133,111.8 (approx. USD 36,975) Goods and transactions not classified in PLN 2,192.5 the SITC (approx. USD 608)

Imports in million PLN/USD (data for 2016) - categories of goods (SITC) Total PLN 786,470.1 (approx. USD 218,463) Food and live animals PLN 60,094.2 (approx. USD 16,692) Beverages and tobacco PLN 5,998.9 (approx. USD 1,666) Inedible raw materials except fuels PLN 24,456.8 (approx. USD 6,793) Mineral fuels, lubricants and related PLN 46,703 materials (approx. USD 12,973) Animal and vegetable oils, fats and PLN 3,188.3 waxes (approx. USD 885) Chemicals and related products PLN 115,610.8 (approx. USD 32,113) Industrial goods classified mainly by raw PLN 139,932.5 material (approx. USD 38,870) Machinery, equipment and transport PLN 282,875.6 equipment (approx. USD 78,576)

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Miscellaneous manufactured goods PLN 98,400.5 (approx. USD 27,333) Goods and transactions not classified in PLN 9,209.5 the SITC (approx. USD 2,558)

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POLISH-BRAZILIAN ECONOMIC RELATIONS

BILATERAL TRADE

Economic cooperation with Poland

Brazil is Poland's most important economic partner in Latin America. According to Statistics Poland, the trade between Poland and Brazil exceeded in 2017 PLN 6 million (approx. USD 1.6 million). Exports of Polish goods to Brazil amounted in 2017 to PLN 1,561.7 million2 (approx. USD 434 million). Imports of Brazilian goods reached the level of PLN 4,540.7 million3 (ca. USD 1,261 million). In 2018, the data (period January-June) were as follows: exports PLN 843.8 million (ca. USD 234 million), imports PLN 3,246.4 million (ca. USD 854 million)4.

Imports from the Brazilian market mainly concern unprocessed or low-processed goods such as mineral products, foodstuffs (soya, coffee, tropical fruits, juices) and means of transport (vehicles, aircraft, ships and other means of transport). Polish entrepreneurs export mainly processed products: products of the chemical industry, products of the electromechanical industry (car parts and accessories, engines) and means of transport (vehicles, planes, ships).

The list of goods traded between the two countries in 2018 is presented in the following tables.

Table 1 - value of imports in 2018 January-June period.5

Imports net Description of product Imports PLN Imports USD weight Total 1,153,967,077 3,246,447,685, 854,328,338

live animals; products of animal 705,823 4,293,195 1,129,788 origin products of plant origin 17,583,482 133,750,366 35,197,465 animal or vegetable fats and oils 19,143 676,840 178,116 prepared foods; beverages, spirits 244,348,492 687,190,961 180,839,727 and vinegar; tobacco and manufactured tobacco substitutes mineral products 762,270,273 789,647,014 207,801,846 products of the chemical or allied 6,832,725 201,050,610 52,908,055 industries plastics and articles thereof; rubber 3,953,208 44,707,279 11,765,073 and articles thereof hides and articles of leather 958,326 50,888,849 13,391,802 wood and articles of wood 1,133,556 3,420,601 900,158 Pulp of wood or other fibrous 58,483,004 151,688,480 39,918,021 cellulosic material; recovered (waste and scrap) paper or paperboard; paper and paperboard and articles thereof

2 http://swaid.stat.gov.pl/HandelZagraniczny_dashboards/Reports_predefined/RAP_DBD_HZ_4.aspx 3 http://swaid.stat.gov.pl/HandelZagraniczny_dashboards/Reports_predefined/RAP_DBD_HZ_3.aspx 4 http://swaid.stat.gov.pl/HandelZagraniczny_dashboards/Reports_constructed/RAP_SWAID_HZ_3_3.aspx 5 http://swaid.stat.gov.pl/HandelZagraniczny_dashboards/Reports_constructed/RAP_SWAID_HZ_3_1.aspx

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textiles and textile articles 200,610 4,947,929 1,302,087 footwear, headgear, umbrellas, 312,175 26,462,547 6,963,828 walking sticks, seat-sticks, whips articles of stone, plaster, cement, 4,792,202 12,826,683 3,375,443 asbestos, mica, glass natural or cultured pearls, precious or 1,002 5,057,506 1,330,923 semi-precious stones, precious metals base metals and articles of base 41,970,983 172,832,910 45,482,345 metal machinery and mechanical 793,475 63,843,803 16,801,001 appliances; electronic equipment vehicles, aircraft, vessels 9,346,707 886,131,310 233,192,450 instruments and apparatus 15,115 4,453,595 1,171,999 arms and ammunition, parts and 2,604 139,038 36,589 accessories thereof miscellaneous manufactured articles 232,632 2,266,651 596,487 works of art, collectors' items and 11,540 171,518 45,136 antiques

Table 2 - value of exports in 2018 January-June6

Export Net Description of product Export PLN Export USD weight Total 110,491,202 843,804,533 222,053,824

live animals; products of animal origin 11,347 183,703 48,343

products of plant origin 2,031,109 9,878,053 2,599,488

animal or vegetable fats and oils 0 0 0

prepared foods; beverages, spirits and 2,631,360 27,898,423 7,341,690 vinegar; tobacco and manufactured tobacco substitutes mineral products 35,552,135 30,211,643 7,950,432

products of the chemical or allied 40,557,614 123,894,368 32,603,781 industries plastics and articles thereof; rubber and 12,995,218 98,517,261 25,925,595 articles thereof raw hides and skins 1,710 483,880 127,337

wood and articles of wood; wood 303,487 1,306,371 343,782 charcoal; Pulp of wood or other fibrous cellulosic 1,197,373 10,557,781 2,778,363 material; recovered (waste and scrap) paper or paperboard; paper and paperboard and articles thereof textiles and textile articles 151,050 4,988,519 1,312,768

footwear, headgear, umbrellas, walking 2,171 467,505 123,028 sticks, hunting stools, whips;

6 http://swaid.stat.gov.pl/HandelZagraniczny_dashboards/Reports_constructed/RAP_SWAID_HZ_3_1.aspx

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articles of stone, plaster, cement, 4,478,193 26,576,776 6,993,888 asbestos, mica or similar materials; ceramic products; glass and glassware natural or cultured pearls, precious or 19 49,656 13,067 semi-precious stones, precious metals base metals and articles of base metal 2,695,955 37,755,740 9,935,721

machinery and mechanical appliances; 4,237,978 281,055,510 73,961,976 electronic equipment vehicles, aircraft, vessels and associated 3,023,906 148,085,058 38,969,752 transport equipment instruments and apparatus 278,313 28,775,023 7,572,374

arms and ammunition, parts and _ _ - accessories thereof miscellaneous manufactured articles 339,631 13,084,062 3,443,174

works of art, collectors' items and 2,633 35,201 9,263 antiques

Economic cooperation between Poland and Brazil is based on the following international agreements:

1. Agreement between the Government of the People's Republic of Poland and the Government of the Federative Republic of Brazil on maritime transport signed on 26 November 1976. 2. Trade Agreement between the Government of the Republic of Poland and the Government of the Federative Republic of Brazil signed on 10 May 1993 (replaced the Polish-Brazilian Trade and Payment Agreement signed in Rio de Janeiro on 19 March 1960). 3. Agreement between the Government of the Republic of Poland and the Government of the Federative Republic of Brazil on scientific and technological cooperation signed on 5 September 1996. 4. Agreement between the Government of the Republic of Poland and the Government of the Federative Republic of Brazil on visa-free travel signed on 14 July 1999. 5. Agreement between the Government of the Republic of Poland and the Government of the Federative Republic of Brazil on air services signed on 13 March 2000. 6. Agreement between PAIiIZ and the Brazilian Agency for Export and Investment Promotion APEX on cooperation in mutual economic promotion, signed in January 2008. 7. Declaration of the Ministry of Development, Industry and Foreign Trade of Brazil and the Ministry of Economy of the Republic of Poland on mutual cooperation, signed in August 2009. The document provides for cyclical meetings of the working group. 8. The preliminary agreement between the Ministry of Agriculture and Food Management of the Republic of Poland and the Ministry of Agriculture and Supply of the Federative Republic of Brazil on technical cooperation and sanitary procedures in the veterinary field and animal and human health, signed in Warsaw on 22 March 1999, entered into force on 21 April 1999.

The most important agreements regulating economic cooperation remain to be concluded:

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1. Double Taxation Treaty - at the end of August 2015, the first round of negotiations on a double taxation treaty was concluded in Brazil. Although the Ministry of Finance of the Republic of Poland submitted a proposal to the Brazilian side to conclude the agreement already in June 2013, it was not until 5 July 2015. The Embassy of the Republic of Poland in Brazil informed that the Federal Tax Office of Brazil (Receita Federal) expressed its interest in starting negotiations. A positive conclusion of the negotiations would be a great success and would give new impetus to bilateral cooperation. 2. Agreement on mutual protection and support of investments - Brazilian party is not interested in negotiating a BIT agreement with foreign partners, including Poland (Latin American countries, after spectacular losses of Argentina in court proceedings with foreign investors, are reluctant to enter into such agreements). As a result of the negative position of the Congress of the Federative Republic of Brazil in 2002, the country does not currently have an important agreement on mutual support and protection of investments with any country. According to the current guidelines of the Inter-Ministerial Chamber of Foreign Trade of Brazil CAMEX, such agreements can only be concluded within the framework of agreements of a broader scope, e.g. with regard to EU Member States - within the framework of the EU-Mercosul agreement. BILATERAL INVESTMENTS

Investment cooperation

Since 2013, the Central Bank of Brazil (CBB) has introduced new rules on the collection and publication of information on foreign investment. It is no longer possible, as it was the case in previous years, to obtain detailed data on the investor (name, investment contribution, branch of economy). Data reported to the CBB are published as an overall amount covering the size of investments of all companies in a given country during the reporting year.

According to the information obtained from CBB, the amount of Polish investments in 2016 totalled approx. USD 1.35 million, which constituted 0.002% of all foreign investments in Brazil. In 2015 it was USD 2.4 million (0.004% of all foreign investments). Taking into account the geographical location of both countries and the distance between them, the involvement of Polish economic entities is not small in relation to their overall potential.

Polish investments in Brazil Polish entities conduct numerous investments in Brazil:

• KOMANDOR S.A. from Radom, operating in the furniture industry has a factory in Brazil. KOMANDOR DO BRASIL LTDA. was established by a Canadian subsidiary of a Polish company with two Brazilian shareholders in 1994; in 2002, the Canadian subsidiary assigned its shares in Komandor do Brasil to its parent company in Radom;

• Selena S.A. from Wrocław, a world leader in the production of construction chemicals, runs a successful business in Brazilian market. Present in Brazil since 2004, now Selena Sulamericana Ltda. owns a plant producing polyurethane foam and has a few offices, crucial for operations in South America. The main brand commercialized in Brazil is Tytan Professional;

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• Boryszew S.A., auto parts manufacturer, under the name Maflow do Brasil Ltda. produces air conditioning and power steering cables for global car manufacturers with factories located in Brazil (Curitiba) and Argentina (including VW, Fiat, GM, Nissan, PSA, Volvo), since 2010;

• Lug Light Factory sp. z o.o., manufacturer of both indoor and outdoor lighting, opened a branch in Brazil in 2011 (registered as LUG do Brasil Artigos de Iluminação Ltda.);

• Medcom sp. z o.o.: a company that provides solutions to support advanced public transport systems and power supply systems in industrial and power plants, opened a daughter company in São Paulo in 2010 (Medcom Serviços e Sistemas de Tração Ltda.) and supplied metro cars for São Paulo;

• Esky.pl S.A.: Polish company from the tourism industry, an online travel agent offering airline tickets, accommodation and additional services based on its own product search engine - eSky Travel Search. The company opened a branch and started the portal eDestinos.com.br in Brazil in 2010 (registered as eDestinos.com.br Agência de Viagens e Turismo Ltda.);

• Quero Passagem (Quero Passagens Viagens e Turismo Ltda.), the operator of the internet platform www.queropassagem.com.br, which is used to sell tickets for long- distance bus services over the Internet, is a company opened in Brazil by Polish investors in 2013;

• GTV Poland sp. z o. o., Polish distributor of furniture accessories and lighting, has owned an office and a warehouse in Curitiba since 2013, under the name of GTV BRASIL COMÉRCIO, IMPORTAÇÃO E EXPORTAÇÃO EIRELI.

• Comarch S.A. of Kraków, one of the largest Polish IT companies with its registered office in Kraków, opened a branch (Comarch Sistemas Ltda.) in São Paulo in 2016;

• Can-Pack S.A., Polish producer of cans and packagings, opened a subsidiary in Brazil, by acquisition of the company Cia. Metalic do Nordeste, from Fortaleza. Later, in 2018, Can-Pack Brasil Indústria de Embalagens Ltda., opened two beverage cans factories in Maracanáu, CE and Itumbiara, GO.

• Gremi International SARL, since 2009 has been carrying out a major ecological and tourist investment in real estate on the northern coast of the country (Eco Estrela Project). The investment started to be actually realized in 2018, in partnership with Six Sences, and the complex is planned to be opened for tourists in 2021;

•

Brazilian investments in Poland

The largest Brazilian investor in Poland is Stefanini Poland sp. z o.o. with its registered office in Kraków, which entered the Polish market through the purchase of Tech - Team sp. z o.o. The company currently employs about 100 people.

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Rio Bravo Investimentos, an investment management company active in the investment sector, remains another Brazilian company currently considering the possibility of entering the domestic market.

Facilitating access to the Polish market for investors7

What already works?

• the so-called deregulation act, which, among other things, extended the protection resulting from the dominant interpretation practice with regard to individual interpretations of the law to all entrepreneurs. The net revenue threshold, after which the company must keep full accounts, has also been raised from EUR 1.2 million to EUR 2 million; • facilitations for the construction industry; • the so-called creditor package, which facilitates the recovery of debts; • Business Constitution (entered into force on 30 April 2018).

The Business Constitution is the biggest change in economic law made in recent years. The Business Constitution consists of a package of acts aimed primarily at changing the relations between entrepreneurs and the government and self-government administration into more partner-like ones. The most important document within the Business Constitution is the new act of 26 March 2018. - Business law. It introduces the following principles:

• which is not prohibited by law, it is allowed (an entrepreneur may conduct business freely, if he does not violate the prohibitions or restrictions expressly indicated by law); • the presumption of honesty of the trader (the trader does not have to prove his honesty; doubts about the circumstances of a particular case will be settled in favour of the trader); • friendly interpretation of regulations (unclear regulations will be settled in favour of entrepreneurs); • the principle of proportionality (a public authority may not impose an unjustified burden on an operator, e.g. it will not be able to request documents which it already has at its disposal).

Among the simplifications introduced under the Business Constitution are, among others, the following:

• possibility of running small business (monthly income up to 50% of the minimum salary, activity conducted personally by persons who have not run their company for the last 5 years) without the obligation to register; • exemption of new companies from the obligation to pay social security contributions for the first 6 months (not applicable to health insurance contributions); • appointment of the Ombudsman for Small and Medium-sized Entrepreneurs; • publication of legal explanations for complex rules; • possibility of indefinite suspension of the company; • ordering the catalogue of regulated activities (requiring concessions, permits); • possibility of dealing with simple official matters by phone or e-mail.

7 https://www.biznes.gov.pl/pl/ulatwienia-dla-biznesu/ulatwienia-dla-firm

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What are the plans?

• introduction of new provisions to facilitate generational change in family businesses; • introduction of a new type of entity - a simple joint stock company.

Polish Investment & Trade Agency

The main Polish entity responsible for supporting foreign investors is PAIH – Polish Investment & Trade Agency. It is a governmental agency which works to develop Polish business abroad and increase the inflow of foreign investments into Poland. In its office in Warsaw and the network of Foreign Trade Offices, PAIH offers assistance and advice to companies interested in investing in Poland. More: https://www.paih.gov.pl/en

BASIC ECONOMIC AGREEMENTS WITH BRAZIL

Most treaties between Poland and Brazil, mentioned in the above chapter, have a very general scope and regulate only the framework conditions for economic exchanges.

In addition to the mentioned already agreements between Brazil and Poland, the following bilateral treaties are in force, which may have an indirect impact on economic relations:

• Agreement between the Government of the Republic of Poland and the Government of the Federative Republic of Brazil on cooperation in combating organised crime and other types of crime (year of entry into force: 2016), • Agreement between the Republic of Poland and the Federative Republic of Brazil on the transfer of sentenced persons (year of entry into force: 2018), • Agreement between the Government of the Republic of Poland and the Government of the Federative Republic of Brazil on cooperation in the field of science and technology (year of entry into force: 1998).

Apart from the above mentioned agreements between Poland and Brazil, only a few agreements concluded between Brazil and the European Union, such as framework agreements concerning sea or air transport and manioc imports, apply indirectly. These agreements are also very general in nature.

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MARKET ACCESS

TARIFF SCHEME

Customs territory

As a member of the European Union, Poland observes the principles of the customs union. This means that the trade in goods between Poland and other EU countries is not subject to customs duties or any other charges and that the Common Customs Tariff is applied to goods traded with countries outside the European Union.

Therefore, Poland does not have a customs border with neighbouring countries that are members of the European Union, namely with: Germany, the Czech Republic, Slovakia and Lithuania, and Poland's borders with other neighbouring countries are treated as the external borders of the European Union. Thus, third party products from neighbouring non-EU countries enter the Community market via border inspection posts in Poland located at the border with Ukraine, Belarus and Russia and control posts at airports.

Schengen area

The Schengen area is an area of 26 countries where border controls at internal borders have been abolished. This area was created on the basis of the Schengen Agreement signed in 1985. The area includes provisions on, inter alia, border protection, protection of personal data, mutual cooperation between the police services of the Member States, issuing visas to foreign nationals and the operation of the Schengen Information System.

The Schengen Agreement shall be open to all members of the European Union. The resulting free movement of persons within the so-called Schengen area concerns not only citizens of the signatory states, but all persons of all nationalities and of any nationality who cross internal borders in the area covered by the agreement.

The Schengen Agreement currently comprises the 22 countries of the European Union and Iceland and Norway, which are members of the Nordic Passport Union, as well as Switzerland and Liechtenstein, which are associated countries.

The adoption of provisions stemming from the Schengen Agreement is one of the requirements for membership of the European Union.

It is worth stressing that the agreement is of significant economic importance. The elimination of internal border controls allows, among other things, lowering the prices of transport services and optimising supply chains by applying a just-in-time system ("always on time"), i.e. without creating excessive stocks and the associated storage. It also has a positive impact on the commuting to work of people working in different Member States, as well as tourism and cross- border trade. Direct benefits for national budgets include no need to finance the salaries of staff carrying out border controls, maintenance of border infrastructure and reduction of the cost of issuing visas.

Map of the Schengen area

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Source: https://www.wprost.pl/swiat/10005499/kontrole-w-strefie-schengen-przedluzone- merkel-przeciwna.html

Trade regulations

Trade with third countries is governed by EU customs regulations and local customs practices. The customs union between the Member States and third countries of the European Union is governed by common commercial policy instruments applied within the framework established by the international community (WTO - World Trade Organization).

Trade agreements with partners outside the European Union are in accordance with the Treaty establishing Co-Law. On the basis of this Treaty, the common commercial policy is based on harmonised rules on the following elements: • customs duties, • trade and customs agreements, • measures to liberalise access to the European Union market, • export policy, • trade defence measures.

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On the basis of these elements, measures are taken in the EU to regulate trade with third countries, mainly tariff measures: (i) Common Customs Tariff, (ii) duty exemptions and (iii) other preferential instruments which affect the level of application of customs duties.

Non-tariff measures, which do not directly affect tariff levels, are another group of defences against fraud in this area.

In addition to a duty reflecting conventional duty rates, tariff measures include tariff amounts and ceilings and partial or total suspension of duties.

Non-tariff measures applied by the European Union are, first and foremost, the following:

• surveillance of imports or exports, • quantitative quotas, • bans on imports or exports.

European Union tariff rate of duty

The customs tariff of the European Union is based on the classification of goods determined in accordance with a tariff and statistical nomenclature, called the combined nomenclature, established by the International Convention on the Harmonized Commodity Description and Coding System.

The Common Customs Tariff shall cover two types of customs duties: (i) autonomous duty rates established unilaterally by the European Union and (ii) conventional duty rates established by multilateral agreements. In practice, existing duty rates apply to imports from third countries, WTO members and most favoured nation countries.

There are three ways to calculate tax rates:

• ad valorem duties calculated on the basis of the value of the goods, calculated as a percentage of the value of the goods concerned, • specific duties based on weight, number of pieces, quantity or content of an ingredient, • combined duties consisting of the sum of ad valorem duties and specific duties.

For both importers and exporters, duty rates are an extremely important element, but they are not always unambiguous. For non-commercial goods that are carried in hand luggage or goods that are sent from private persons to private persons, a rate of 2% to 5% ad valorem applies. However, it should be remembered that the value of these items may not exceed 700 Euro.

If you want to determine the customs duty, you should use the customs tariffs of the goods. The goods are marked with special codes to which specific rates have been assigned. This code consists of eight digits, the first six of which refer to the Harmonised System and the following to the Combined Nomenclature. The arrangement of digits in the Harmonised System refers to: specific chapters (first two digits), HS heading (third and fourth digits), HS subheading (fifth and sixth digits). The last digits shall be the CN code. The classification corresponds to the Brazilian classification NCM, which is also based on Harmonised System.

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Customs valuation

The legislation provides for the use of six methods of customs valuation:

• transaction value method, • transaction value method for identical goods, • transaction value method for similar goods, • deductive method, • calculated value method, • last chance method.

The transaction value method is the basic method of customs valuation. Other methods are substitute methods. All methods should be applied in order, i.e. the next method can only be applied if the previous method cannot be applied.

Transaction value method

The transaction value of goods brought into the Community is the result of the principle of the free conclusion of trade agreements and is based, in a specific case, on the selling price negotiated between the parties to the contract. In the absence of a sale transaction, it is not possible to apply the transaction value method.

The price actually paid or payable is the total payment made or to be made by the buyer to the seller or by the buyer to a third party in favour of the seller for the imported goods and includes all payments made or to be made as a condition of sale of the imported goods.

The price actually paid or payable includes all payments made or to be made as a condition of sale of the imported goods by the buyer to any of the following persons:

• the seller, • a third party for the benefit of the seller, • a third party related to the seller, • a third party, where payment to that person is made in order to meet the seller's obligation.

Payments may be made in the form of letters of credit or negotiable payment instruments, directly or indirectly.

In determining the customs value, the transaction value method shall be added to the price actually paid or payable for the imported goods:

(a) the following costs to the extent that they are borne by the buyer but not included in the price actually paid or payable for the goods: - commissions and brokerage costs, except commissions on purchases, - the cost of the containers, where for customs purposes they are treated as one unit with the goods concerned, and

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- the cost of packaging, including both labour and materials, (b) the following goods and services, provided directly or indirectly by the buyer, free of charge or at a reduced price, for use in the manufacture and sale of imported goods for export, provided that such value is not included in the price actually paid or payable; (c) concerning the goods being valued, royalties, royalties and licence fees which the buyer must pay directly or indirectly, as a condition of sale of the goods being valued, to the extent that such royalties, royalties and licence fees are not included in the price actually paid or payable, (d) the value of any part of the proceeds of resale, disposal or use of the imported goods attributable directly or indirectly to the seller; and (e) the following costs up to the point of entry into the customs territory of the Union: - costs of transport and insurance of imported goods, and - loading and handling charges related to the transport of imported goods.

At the same time, a catalogue of costs not to be included in the customs value is provided for, provided that they can be distinguished from the price actually paid or payable, they shall be included:

(a) transport costs of imported goods after they have been brought into the customs territory of the Union;

(b) costs relating to construction, installation, assembly, maintenance or technical assistance operations carried out after the entry into the customs territory of the Union of imported goods, such as industrial plants, machinery or equipment;

(c) interest arising under a financing agreement concluded by the buyer and relating to the purchase of imported goods, whether the financing is provided by the seller or by another person, if the financing agreement is concluded in writing and, if necessary, the buyer is able to prove that the following conditions are met:

- such goods have actually been sold at the price declared as actually paid or payable,

- the interest rate requested shall not exceed the interest rate normally applicable to this type of transactions carried out in the country concerned at the time the financing is provided,

(d) charge for the right to copy imported goods within the Union,

(e) purchase commissions,

(f) import duties or other charges payable in the Union on the import or sale of goods.

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The basic commercial document used to determine the transaction value of goods is an invoice. The same applies to items to be added to or deducted for the purpose of establishing the customs value (e.g. transport invoice, assembly service, etc.).

In the absence of an invoice, the importer is obliged to provide documents that can be considered equivalent to an invoice (e.g. invoice, sales contract). It should be borne in mind that in any case it must be a document constituting the basis for the settlement (payment) between the buyer and the seller. It cannot be e.g. a pro-forma or provisional invoice, i.e. a document which, unlike a commercial invoice, is not an accounting document, but only serves an informative function.

Transaction value method of identical goods.

Where the customs value cannot be determined on the basis of the transaction value, it shall be determined on the basis of the transaction value method for identical goods. The transaction value method for identical goods consists in establishing the customs value based on the transaction value of identical goods sold for export to the Union and exported at or about the same time as the goods for which the customs value is being established. Goods shall be deemed to be identical where they are manufactured in the same country as the goods subject to the valuation and are in all respects identical, including:

• physical characteristics, • quality, • the reputation they have. Transaction value method for similar goods.

Where the customs value cannot be determined on the basis of the transaction value and the transaction value of identical goods, it shall be determined on the basis of the transaction value method for similar goods. The transaction value method for like or similar goods consists in establishing the customs value on the basis of the transaction value of like goods sold for export to the Union and exported at or about the same time as the goods for which the customs value is established. The like are considered to be goods which are manufactured in the same country as the goods being valued and which, while not alike in all respects, have similar characteristics and material composition which enable them to perform the same functions and to be interchangeable goods. In determining the similarity of the goods, account must be taken:

• quality, • trade mark, • an opinion on goods.

Deductive method.

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Where the customs value cannot be determined on the basis of the methods described above, i.e. the transaction value method and transaction value methods for identical and similar goods, it shall be determined on the basis of a deductive method. This method consists in calculating a value based on the unit price at which imported goods or identical or similar goods are sold in the Union, in the largest aggregate quantities, to persons not related to the sellers. The unit price thus determined shall be deducted from the unit price:

• the margins, normally paid or agreed upon to pay or the mark-ups normally applied, including profits and expenses (including direct and indirect costs of trade in the goods concerned) linked to sales in the Community of imported goods of the same type and kind, • transport and insurance costs and related costs incurred in the Union, • import duties and other charges payable in the Union on the import or sale of goods.

The like or similar goods and related parties referred to in the deduction method should be understood as presented in the previous methods of customs valuation.

Calculated value method.

Where the customs value cannot be determined on the basis of previously presented methods, i.e. transaction value method, transaction value methods for identical and similar goods, or deductive method, it should be determined on the basis of a calculated value method. The customs value determined by the calculated value method is equal to the sum:

• the cost or value of materials and production or other processes used in the manufacture of the imported goods, • an amount for profit and overheads equal to the amount normally included in the selling price of goods of the same type or nature as the goods for which the customs value is established, manufactured by producers in the exporting country for export to the Union, • the transport and insurance costs of imported goods and the loading and handling charges related to the transport of imported goods to the point of entry into the customs territory of the Union.

The "last chance" method.

This is the method used when previous methods of customs valuation cannot be used. The last resort method does not provide for a specific method of determining the customs value of a good, but requires that this value be determined on the basis of data available in the Community, by appropriate means in accordance with the principles and general provisions.

The customs value established by the above method should as far as possible be based on other customs valuation methods, which should be applied with "reasonable flexibility".

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TARIC and ISZTAR

TARIC

The European Commission has established an Integrated Tariff of the European Union (TARIC) based on the Combined Nomenclature (comments above). TARIC is a system run by the Directorate-General for Taxation and Customs Union, which integrates all legal arrangements of the Member States of the European Union related to customs tariffs for industrial and agricultural products.

It contains, among others, commodity codes (customs nomenclature), customs duties expressed as a percentage or amount per specified unit for a given country or group of countries from which the goods arrive, legal basis with comments (footnote), period of validity of the customs duty rate, data for import and export surveillance, quantitative limits (quotas), anti-dumping indicators, duty suspensions, customs preferences, export refunds, countervailing duties, import and export prohibitions. It does not contain information about national taxes such as VAT rates or excise duties.

The rules of the European Union's tax system require Member States, as regards the structure and rates of excise duty on excise goods, to apply the minimum level of duty set for each product. However, Member States can always set and apply higher excise duty rates based on their own fiscal policies. Such a solution to the issue of shaping the level of excise tax rates results in a large variation in the level of fiscal burdens for particular excise products in the European Union. In addition, in order to meet the minimum level of taxation criterion, Poland, like other Member States which have not adopted the single currency, is forced to review annually the level of excise duty on excise goods depending on the exchange rate of the euro against the national currency in force for a given year and to adjust the excise duty rates, if necessary.

Excise duty rates are expressed in: • the amount per unit of product, • percentage of the tax base, • percentage of the maximum retail price, • the amount per unit of product and the percentage of the maximum retail price. However, as far as the applicable excise duty rates for certain excise goods and passenger cars are concerned, they are, for example, in the case: • petrol - 1,540.00PLN/1,000 l, • Diesel oil - 1,171.00PLN/1,000 l, • liquefied gases for propulsion of internal combustion engines - 670,00PLN/1.000 kg, • biocomponents constituting self-contained fuels - 1,171.00PLN/1,000 l, • electricity - 20.00PLN/1 MWh,

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• ethyl alcohol - 5.704,00PLN/1 hl 100% vol, • beer - 7.79PLN from 1 hectolitre for each Plato degree of the finished product, • wine - 158,00PLN/1 hl of finished product, • cigarettes - 206.76PLN for every 1,000 cigarettes and 31.41% of the maximum retail price, • passenger cars with engine capacity above 2000 cm3 - 18.6% of the tax base; other passenger cars - 3.1% of the tax base.

As far as VAT rates are concerned, the basic rate in Poland (at present) is 23%. Reduced rates are foreseen for certain goods and services: 8% and 5% (5% rate includes food products, books on all physical carriers and magazines). There is also a 7% rate - it is charged by the buyer of goods from a lump sum farmer. This is not in principle the rate at which goods or services are taxed, but a flat-rate VAT refund to a flat-rate farmer who is exempt from VAT.

There is also a 0% rate, which is valid for: • intra-Community supplies of goods, • export of goods. In the case of supply of services in trade and gastronomy, the taxpayer may calculate the amount of VAT on the gross value of goods, in which case the rates are applied: • 18.70% of the gross value for goods and services covered by the 23% rate, • 7.41% of gross value for goods and services covered by the 8% rate, • 4.76% of gross value for goods and services covered by the rate of 5%. In addition, certain activities are exempt from tax. This means, among other things, that those providing exempt activities, as opposed to those providing services subject to 0% tax rate, cannot deduct the input tax paid during the provision of these services.

VAT rates in Poland are currently determined on the basis of the Polish Classification of Goods and Services 2008 (PKWiU 2008) introduced by the Regulation of the Council of Ministers of 29 October 2008 on the Polish Classification of Goods and Services. PKWiU 2008 classifies activities (being the final effects of activity) of a service character, provided by economic entities (organisational units) to other economic entities (organisational units) or to the public. PKWiU 2008 does not apply to classification of in-house activities.

Each service should be included in the appropriate grouping according to its nature, regardless of the symbol under which it has been classified in the National Official Register of National Economy Entities REGON, the economic entity providing the service.

Inclusion of a specific product to the appropriate grouping of PKWiU 2008 belongs to the obligations of the manufacturer (service provider) of this product. It results from the fact that the manufacturer (service provider) has all the information necessary to properly classify the product to the appropriate grouping of PKWiU 2008, i.e. information on the type of raw

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material used, manufacturing technology, construction and purpose of the product or the nature of the service.

ISZTAR

It is worth noting that there is a special Polish database called ISZTAR. This database is maintained in the form of a browser and maintained by the Customs Policy Department of the Ministry of Finance within the Integrated Customs Tariff Information System ISZTAR. It makes it possible to provide customs administrations and all interested parties with detailed information on the movement of goods. The browser presents both EU data from the TARIC system as well as Polish data (e.g. VAT and excise duties) and some national non-tariff measures not integrated in the TARIC database.

The viewer of the ISZTAR system makes it possible: • retrieval of all data relating to the goods nomenclature, • acquaintance with customs duties, • assimilation of many additional information related to legal notes, explanatory notes, lists of goods, judgments of the European Court of Justice, classification regulations of the European Commission, decisions of the Harmonized Code Committee, etc, • searching for areas of interest to us - countries and groups of countries, • searching for textual expressions both in the area of nomenclature codes and in the area of supplementary information, • retrieval of data from the first volume of the Customs Tariff, • viewing quotas, • to be familiar with the most important news from the trade in goods.

The browser is available at: http://isztar.mf.gov.pl/isztar/taryfa_celna/web/main_EN

GSP

The Generalised System of Preferences (GSP) is a system of preferences granted unilaterally by the European Union for products originating in developing countries. The duty rate for imported goods is reduced or zero. Brazil is no longer covered by the GSP.

The GSP scheme includes three levels of tariff liberalisation: • general scheme (applicable to developing countries), • special incentive scheme (known as GSP+), • special programme for the least developed countries.

In order for an importer to benefit from customs preferences, goods must comply with the rules of origin and the origin of goods must be documented by a properly made out proof of origin. The declarant must always be prepared to present documents proving the identity of

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the goods declared for release for free circulation in the European Union with goods exported from the beneficiary country (all operations other than those necessary to preserve them in good condition are excluded) and to remain under customs supervision in the country of transit.

Access to the Polish market

Entry of goods

Customs clearance

Due to Poland's integration with the European Union market, the issue of introducing goods to the Polish market is in the first line the issue of introducing goods to the European market. This is due to the fact that once a product has been marketed in any of the EU countries, it can, as a rule, be moved to any other EU or EEA country, with only minimal restrictions.

The release for free circulation procedure shall apply to the importation of non-Community goods into the customs territory of the European Union. Placing goods under this procedure confers on them the customs status of Community goods outside the EU. The procedure shall require the completion of the formalities required for the importation of goods and the payment of the charges legally owed, in particular import duties.

Issues relating to the use of the authorisation procedure are regulated in:

• Articles 79 to 83 of Council Regulation (EEC) No 2913/92 of 12 October 1992 establishing the Community Customs Code, • Commission Regulation (EEC) No 2454/93 of 2 July 1993 laying down provisions for the implementation of Council Regulation (EEC) No 2913/92 establishing the Community Customs Code, hereinafter referred to as 'Implementing Regulation'.

The provisions of EU legislation governing the marketing of goods also allow Member States with different legal systems to introduce additional national regulations in certain areas. In Poland, such a supplement to customs declarations is primarily the Ordinance of the Minister of Finance of 22 April 2004 on detailed requirements to be met by customs declarations (Journal of Laws of 2014, item 1504, as amended).

Regardless of the mode of transport chosen (in the case of Brazil, most likely air cargo, sea cargo or container transport), the person introducing the goods is obliged to obtain an EORI (Economic Operators Registration and Identification) number and to declare the goods for customs clearance. It is advisable to use a customs agency to obtain an EORI number as well as a declaration for clearance. An air or sea freight forwarder who arranges transport is likely to have his own customs agency, so it is advisable to clarify any issues related to customs clearance with him.

When introducing goods from outside the EU to the Polish market, two types of fees that we are obliged to pay should be taken into account. The first is the duty that exists for certain product groups. Whether or not a product is subject to a duty and the amount of the duty can be consulted in the TARIC databases. http://ec.europa.eu/taxation_customs/dds2/taric/taric_consultation.jsp?Lang=en

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or ISZTAR (the one in Polish only). http://isztar.mf.gov.pl/isztar/taryfa_celna/web/browsetariff_EN

With the help of search engines you can find the appropriate class of products to which the imported goods belong. The amount of duty is calculated on the basis of the customs value (usually from zero to several percent), which consists of: the value of the purchased goods determined on the basis of the sales invoice (it can be verified by presenting appropriate documents confirming the transfer/ credit card statement/ paypal account), plus the cost of transport and insurance of the goods.

The next fees for the admission of goods to turnover in Poland are the taxes due. Excise duty should be paid for specific groups of goods. However, for all goods, VAT is to be calculated on the basis of the customs value plus customs duty, or, in the case of goods subject to excise duty, the customs value plus customs duty and excise duty.

Compliance with European Union standards

The customs procedure for release for free circulation confers on goods outside the EU the customs status of Community goods. However, also in the case of goods produced within the Union before being placed on the common market, it is necessary to check whether the goods comply with EU norms and standards. The same applies to compliance with national norms and standards in cases where there are no Community standards (within the framework of mutual recognition of the laws and standards of the Member States).

Therefore, at the first marketing of a product which has not yet been distributed in Europe, it is necessary to make sure that it complies with the aforementioned EU and/or Polish norms and standards, and, if necessary, subject it to appropriate inspections and tests in order to obtain all necessary permits, certificates and markings for it.

The central element of the control process for EU standards is the so-called New Legislative Network, which entered into force in 2010. It is a package of three legal regulations (Regulation No. 765/2008, Decision No. 768/2008/EC and Regulation No. 764/2008, all three of 9 July 2008), which together establish, among others, new, uniform rules for accreditation of control bodies, establish rules for market surveillance, clearly define the scope of the "CE" marking. (Conformité Européenne), attesting to compliance with EU standards, and are the basis for further, more detailed legislative acts. These detailed legislative acts - directives and regulations laying down specific requirements for individual products - are in turn often the basis for implementing acts in individual Member States.

Products requiring the CE marking (and appropriate procedures) currently mainly include those whose careless manufacture could have dangerous consequences for users, such as building materials, toys or electronic and medical devices. Other specific harmonised standards concern, for example, the control and labelling of textiles and footwear, the labelling of products requiring specific recycling, the control and labelling of cosmetics, etc.

The lists of harmonised Union standards are published in the Official Journal of the European Union.

The first element of the control of goods should therefore be to check whether the product in question is covered by any of the harmonised standards and requires a specific marking. (e.g.

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the list of directives related to the CE mark can be found on the Eur-Lex or New Approach Legislation websites, and the list including Polish implementing legislation - http://www.ce- polska.pl/dyrektywy-nowego-podejscia-znak-ce).

If a product is covered by harmonised standards, a specific product-specific standard and the steps necessary to assess conformity with the standards should be analysed. In particular, it should be specified with which control authorities and/or bodies to cooperate in this regard and whether it is necessary to call upon the assistance of third parties (e.g. accredited laboratories). In addition, the obligations regarding the preparation of the relevant documentation, including the operating instructions for the end user, must be observed. The control process ends with an appropriate marking of the packaging of the product and its putting into circulation.

Compliance with Polish standards

Lack of harmonised standards for a given product does not automatically mean that it can be freely placed on the Polish market. The product may be subject to national standards and regulations, which, as a rule, are valid only in Poland. Due to the large number and diversity of national standards, it is necessary to analyse each case of goods placed on the Polish market individually. The list of product standards currently in force in Poland can be found, among others, on the website of the Polish Committee for Standardization (https://www.pkn.pl/polskie-normy/wykazy-pn) .

The Act on General Product Safety (Journal of Laws of 2016, item 2047) is an example of an important legal regulation concerning the introduction of goods to the market. It defines the concept of dangerous product, sets out the conditions and obligations that must be fulfilled in order for it to be considered safe and to be placed on the market, and lays down the rules and procedures for supervision to ensure the safety of products placed on the market.

Food products have a particular role in the control system. They are subject to a number of legal acts, both European and Polish. The most important ones are:

1. Regulation No 178/2002/EC of 28 January 2002 laying down the general principles of food safety and establishing the European Food Safety Authority and laying down procedures in matters of food safety (OJ EC L 31), 2. Directive 93/43/EEC of 14 June 1993 on the hygiene of foodstuffs (OJ L 139) and Regulation (EC) No 852/2004 of 29 April 2004 on the hygiene of foodstuffs (OJ L 139) replacing that Directive, 3. Directive 2000/13/EC of 20 March 2000 on the approximation of the laws of the Member States relating to the labelling, presentation and advertising of foodstuffs (OJ EC L 109).

And the most important statutory regulations in force in Poland:

1. Act of 11 May 2001 on health conditions of food and nutrition (Journal of Laws of 2001, No. 63, item 634), 2. Act of 21 December 2001 on the commercial quality of agri-food articles (Journal of Laws of 2002, No. 5, item 44, as amended), 3. Act of 29 January 2004 on veterinary requirements for products of animal origin (Journal of Laws of 2004, No. 33, item 288).

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The introduction of food products to the Polish market is connected with the need to comply with standards regulating hygiene and sanitary requirements concerning the technical condition and equipment of food processing plants, standards regulating hygiene at appropriate trade, regulating requirements for persons employed in trade, as well as appropriate veterinary controls in the case of products of animal origin. The marketing of the products concerned must be notified to the relevant authorities and, if necessary, the required administrative decisions must be obtained from them to confirm that the requirements of the above standards have been met. These bodies include e.g. inspectors of the State Sanitary Inspection, Veterinary Inspection, district veterinarians and the Voivodeship Inspector of Commercial Quality of Agricultural and Food Products.

All entrepreneurs involved in marketing food are obliged to implement the so-called HACCP (Hazard Analysis and Critical Control Points) system. Before goods are placed on the market, they must also be packaged with a number of mandatory elements and information, such as the composition of the product, its shelf-life, the identity of the producer or trader, and others.

Economic activity in Poland

The economic activity of foreigners on the Polish market is regulated in detail in the Act of 26 January 2018 on the rules of participation of foreign entrepreneurs and other foreign persons in economic turnover on the territory of the Republic of Poland.

Privileged entities

As a consequence of the integration of the European market, foreign persons (i.e. natural persons without Polish citizenship, as well as legal persons or entities with legal capacity which have their registered office outside Poland) from the Member States of the European Union or the European Economic Area are treated in a privileged manner. Foreign natural persons may conduct business activity in the territory of Poland on the same principles as Polish citizens. Excluded from this is the provision of regulated services listed in the Act, to which specific legal regulations apply and which may require additional procedures to be carried out (for example, a notary or a nurse). Foreign legal entitys/companies, in the case of time-limited and occasional benefits, may provide so called cross-border services, without the need to register their activity in Poland. In case of permanent activity, they must establish a branch and register - then they can operate in a branch to the same extent as the core business of the foreign company.

Another category of foreign entities conducting business activity in Poland are citizens of other countries (i.e. only natural persons) who are not members of EU (or EEA) countries. These persons may conduct business on the same basis as persons from the EU, but only if they meet the additional criteria concerning their relationship with Poland. These criteria include, among others, holding a permanent residence permit in Poland, a long-term resident's EU residence permit, a temporary residence permit granted in connection with education, having refugee status or a valid Card of the Pole, etc. The criteria include the fact that a foreigner has been granted a residence permit for a fixed period of time in the Republic of Poland, as well as the fact that a foreigner has been granted a residence permit for a fixed period of time.

Other entities

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In the case of other foreign persons - non-EU and EEA citizens (without appropriate permits binding them with Poland) and companies from outside the common European market cannot conduct their own activity in Poland directly, but only through a company established in Poland. According to the Act, they have the right to "take up and pursue economic activity exclusively in the form of a limited partnership, limited liability and joint-stock partnership, as well as to join such companies and to subscribe for or acquire their shares, unless international agreements provide otherwise".

Theoretically, this also means that an entity outside the EU/EEA could establish a company in an EU country other than Poland, and operate in Poland as a company (within the framework of cross-border provision of services or after the establishment of a branch). In practice, however, even among the EU/EEA market players, the activity in the form of a branch of a foreign company is a rare exception. Firstly, because the countries of the common European market have different tax laws and regulations concerning workers (labour law, social security law, etc.). This means that a company providing (through a branch) services of a permanent nature in two countries at the same time has to operate in these areas in two legal orders at the same time. Secondly, the branch does not have its own legal personality, it does not provide opportunities for activities going beyond those conducted in the "home" country, and it requires keeping separate accounts - in the Polish language. Therefore, the dominant form of activity of foreign companies on the market (also from EU/EEA) in Poland is the establishment of a subsidiary (or acquisition of shares in an existing company).

The catalogue of permissible legal forms for entities outside the EU/EEA therefore includes the following companies: limited partnership, limited joint-stock partnership, limited liability company and joint-stock company. In order to establish all of these companies, a notarial deed is required (recently, for limited liability companies and limited partnerships there is a possibility of simplified establishment via the Internet, without the participation of a notary public, which, however, requires an electronic signature or a trusted/officially verified profile in the ePUAP system), and all of them require registration in the National Court Register of the National Court Register (KRS).

Companies

Limited liability company (sp. z o.o.)

The most frequently chosen commercial company on the Polish market is a limited liability company. One founder (natural person, legal person or organisational unit with legal capacity) is sufficient to establish it. At the same time, there is a specific requirement in Polish law that the only founder cannot be a single-member limited liability company. This means that if a limited liability company is established, at least one share must be covered by another person. However, this restriction does not apply to running a company after its incorporation - a person holding this single share may sell it to the majority shareholder after the registration of the company.

The share capital of a limited liability company must amount to at least PLN 5,000 (approx. USD 1,300) and the value of one share must be at least PLN 50. As a rule, shareholders are not responsible for the company's liabilities, the company is liable for its assets (in some cases personal liability of management board members is possible - e.g. in cases of late submission of a bankruptcy petition).

The bodies of a limited liability company are: shareholders' meeting (the highest authority of the company, convened once a year or in extraordinary cases) and management board

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(conducts operational activity, appointed and dismissed by the shareholders' meeting). An optional (voluntary) third body is the supervisory board and/or the audit committee, or both, obligatorily in the case of companies where the share capital exceeds PLN 500,000 and the number of shareholders exceeds 25.

The company is represented by the Management Board. If the Management Board is composed of more than one person, two members of the Management Board or a member of the Management Board and a proxy must cooperate in order to effectively represent the Company (the Company's Articles of Association may define the manner of representation in a different way).

The shareholders of a limited liability company have the right to participate in the profit of the company resulting from the annual financial statement, to the extent that it was allocated for distribution by a resolution of the meeting of shareholders (dividend). Unless otherwise stated in the articles of association, the profit shall be distributed among the shareholders in proportion to their shareholdings. The limited liability company is subject to corporate income tax - 19% or 9% (preferential rate for new companies). In addition, dividends paid out are subject to personal income tax at a rate of 19%.

Joint Stock Company (S.A.) In order to establish a joint-stock company one founder is also sufficient, as in the case of sp. z o.o. - and, just as in a limited liability company, the sole founder of S.A. cannot be exclusively a one-person limited liability company.

The share capital of a joint-stock company must amount to at least PLN 100,000 (approx. USD 26,300), and consists of contributions from the founders who become co-owners of the company. The value of one share is at least PLN 0.01. Shareholders are not responsible for the company's obligations, they risk losing only shares. The Company is liable for its assets.

The bodies of a limited liability company are: the general meeting of shareholders (the highest authority of the company, convened once a year or in extraordinary cases), the management board (conducts operational activity, appointed and dismissed by the shareholders' meeting) and the supervisory board (continuously supervises the work of the management board, minimum 3 members, appointed and dismissed by the shareholders' meeting).

A joint-stock company is represented by the Management Board on the same principles as sp. z o.o. If the Management Board is composed of more than one person, two members of the Management Board or a member of the Management Board and a proxy must cooperate in order to effectively represent the Company (the Company's Articles of Association may define the manner of representation in a different way).

The shareholders of S.A. have the right to participate in the profit of the company resulting from the annual financial statements audited by a certified auditor to the extent that it was allocated for distribution by a resolution of the General Meeting of Shareholders (dividend). Profit is distributed among shareholders in relation to shares held by them, unless the articles of association provide otherwise. A joint-stock company is subject to corporate income tax - 19% or 9% (preferential rate for new companies). Additionally, dividends paid out are subject to personal income tax at the rate of 19% or 19% corporate income tax.

Limited partnership (sp. k.)

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Unlike the two previous companies, which are companies with share capital, a limited partnership is a partnership.

In order to establish a limited partnership, at least two partners (natural persons, legal persons or organisational units with legal capacity) are required, including one general partner, corresponding to all of its assets, and one limited partner, corresponding to the amount specified in the contract. If a limited liability company becomes a general partner (in the case of the so-called "limited liability company"), the general partner's "full property risk" is limited to the amount of the share capital of the limited liability company.

Sp.k. there is no minimum share capital. The company is primarily responsible for the liabilities through its assets. The responsibility of the partners depends on whether they are general partners or limited partners. The former are liable (after exhaustion of the company's assets) for the company's liabilities with all its assets, the latter are liable only up to the amount of their contribution (i.e. if it was paid in full to the company's assets, their risk is limited as in a limited liability company or S.A.).

A limited partnership does not have statutory bodies. It is represented independently by each general partner. As a rule, the partners are only passive partners, with the right to control the activities of the general partner.

Partners sp.k. have the right to a share in the profits of the company. The share of each general partner shall be equal, irrespective of the type and value of the contributions, and the share of each limited partner shall be proportional to the contribution actually made by the limited partner to the company, unless the statutes provide otherwise.

A limited partnership has only a limited legal personality. As a result, it is not subject to corporate income tax, shareholders are taxpayers of income tax (PIT in case of natural persons, CIT in case of capital companies).

Limited joint-stock partnership (S.K.A.)

A limited joint-stock partnership is a partnership, a hybrid of a limited partnership and a joint- stock company.

In order to establish a limited joint-stock partnership, at least two partners (natural persons, legal persons or organisational units with legal capacity) are necessary, including one general partner, corresponding to all their assets, and one shareholder.

S.K.A. has, unlike sp.k. the minimum share capital consisting of shareholders' contributions. The share capital must amount to at least PLN 50,000 (approx. USD 13,160) and consists of the founders' contributions. The value of one share is at least PLN 0.01. Shareholders are not responsible for the company's obligations, they risk losing only shares. The Company is liable for its assets, and after exhaustion - a limited partner is liable for all of its assets.

The bodies of S.K.A. are: the general meeting of shareholders (the highest authority of the company, convened once a year or in extraordinary cases), and the supervisory board (optionally - continuously supervises the work of the general partner representing the company, obligatory only if there are more than 25 shareholders in the company). The function of the Management Board is de facto performed by the general partner. However, it is not appointed by the general meeting and cannot be revoked by them, but only deprived of the

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right to represent the company (it is necessary to amend the articles of association by the general meeting).

A limited joint-stock partnership is independently represented by each general partner. As a rule, shareholders are only passive shareholders.

Partners S.K.A. have the right to participate in the profit of the company. The companions and shareholders participate in the profits of the company in proportion to their contributions to the company, unless otherwise stated in the articles of association. Taxation of S.K.A. is the same as in the case of capital companies - a joint-stock company is subject to corporate income tax - 19% or 9% (preferential rate for new companies), and additionally the profit paid out is subject to corporate income tax at the rate of 19%.

Bringing employees to Poland

Bringing workers from outside the European Union to Poland is connected with some additional formalities. First of all, it should be taken into account that within the framework of employment of employees of any nationality in Poland, the requirements of the Polish Labour Code should be observed. This means that employees' wages must not be lower than the Polish statutory minimum wage, and agreements with employees must contain all binding provisions of labour law, and must not violate the relevant provisions (specific working time standards, number of days off, etc.).

A company intending to employ foreigners must first notify the relevant authority (Provincial Office, Foreigners Division) in order to obtain a permit to employ a person from outside the EU. In order to do so, information concerning the planned employment - type, required competences, approximate salary range, etc. - is provided to the office. As part of the decision- making process, the Authority shall carry out a short survey of the local labour market to determine whether a job can be filled under the same conditions with the same or better qualifications as the available local labour force. Such a test is not necessary for all professional groups (e.g. drivers are excluded from it).

After obtaining a work permit for a foreigner, it is necessary to contact the consulate of Poland in a given country in order to grant the employee a work permit together with a one-year residence permit (the visa-free travel between Poland and Brazil covers only a stay not longer than 90 days).

After the end of the year, either the employer or the employee can apply for an extension of the residence and work permit on their own.

It should be remembered that foreigners introduced to the Polish labour market do not automatically acquire the right to work in other EU countries. As a rule, the permits granted to them concern Poland. Possible residence and work in other EU countries may not exceed 3 months in the year for which the permits were granted. In addition, individual countries may have additional, specific restrictions on residence and/or work.

SPECIFIC CUSTOMS-RELATED SYSTEMS

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International and national customs law, in addition to regulations, also regulates customs procedures, which are used to optimally carry out business operations. These procedures include basic procedures, but also special procedures which, in principle, require authorisation. These are the customs warehousing procedure, the internal processing procedure, the external processing procedure, the procedure for processing under customs control and the temporary admission procedure, which are approximated below.

Customs warehousing procedure

1. Functions

From the economic point of view, a customs warehouse institution performs important functions in the foreign trade system, which improve the economic efficiency of the business activity. It can be considered in two planes.

The customs warehousing institution enables the suspension of customs duties and taxes on non-EU goods destined for release for free circulation in the customs territory of the European Union (suspension of payments function). Non-Union goods placed under a customs warehousing procedure shall not be subject to import duties or commercial policy measures.

In addition, the customs warehouse is an intermediate link in the re-export of goods coming from third countries and intended for re-export (re-export function).

Non-Union goods placed under the customs warehousing procedure need not, with a view to discharging the procedure, be released for free circulation in the customs territory of the European Union. Where justified by economic needs, the goods may be re-exported. There is no need to pay duties and taxes.

2. Types of warehouses

Public customs warehouses

These are customs warehouses of a service nature which can be used by any person for the storage of goods. In a public customs warehouse, goods shall be stored under a contract concluded between the holder of the procedure and the warehousekeeper. The contract is concluded in accordance with the provisions of the Civil Code. Goods may also be stored in a public customs warehouse by the operator of the customs warehouse.

There are three types of public customs warehouses:

Type I customs warehouse - means a public customs warehouse under the responsibility of the authorisation holder and the person authorised to use the customs warehousing procedure, Type II customs warehouse - means a public customs warehouse where responsibility lies with the person authorised to use the customs warehousing procedure, Type III customs warehouse - means a public customs warehouse run by customs authorities (this type of customs warehouses does not function in Poland).

Private customs warehouses

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These are customs warehouses intended for the storage of goods only by the operator of the customs warehouse.

3. Storage of goods

The following types of goods may be stored in a customs warehouse:

non-Union goods which are not subject to import duties or commercial policy measures during that storage, in so far as those measures do not prohibit the entry or exit of goods into or from the customs territory of the Union;

This is the principal function of a customs warehouse allowing the suspension of customs duties and taxes on goods destined for release for free circulation on the Community market or the re-export of stored goods to third countries.

Union goods may either be placed under the customs warehousing procedure in accordance with Union legislation governing specific fields, or benefit from a decision on repayment or remission of import duties; Union goods placed in a customs warehouse without the need to place them under the customs warehousing procedure.

This is a complementary function of the customs warehouse allowing for the storage of EU goods at the customs warehouse location. It may be used with the authorisation of the customs authority where there is a justified economic need and provided that this does not limit the possibilities for customs supervision and control. Authorisation shall be granted on the form set out in Annex 12 to Commission Delegated Regulation (EU) 2016/341 of 17 December 2015 supplementing Regulation (EU) No 952/2013 of the European Parliament and of the Council with regard to transitional provisions concerning certain provisions of the EU Customs Code at a time when the relevant IT systems are not yet operational and amending Commission Delegated Regulation (EU) 2015/2446 (box 22 of the continuation sheet).

In practice, the possibility to store Union goods without placing them under the customs warehousing procedure allows the use of part of the free storage area of a customs warehouse, the continued storage of goods previously placed under the customs warehousing procedure which have been released for free circulation, or the storage of goods intended to be used for the usual handling of non-Union goods placed under the customs warehousing procedure.

Internal processing procedure The internal processing procedure allows goods from outside the Community to enter the customs territory of the Community.

The internal processing procedure can be used in two basic systems: (i) the suspension system and (ii) the refund system.

• In the suspension system, goods are exempt from export duties and trade policy measures; • In the drawback system, the release of goods onto the market is allowed when customs duties are paid and commercial policy measures are applied. Payments may be repaid

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or cancelled provided that the goods leave the customs territory of the Community in the form of products obtained from processing operations - compensating products.

External processing procedure The external processing procedure shall apply to Community products and shall allow them to temporarily leave the customs territory of the Community in order to be used in processing operations and to authorise access to the market for compensating products thus obtained. An authorisation to place a product on the market may result in partial or total exemption from customs duty.

Procedure for processing under customs control This is a so-called economic customs procedure, which allows non-Community goods to be imported into the customs community for processing (changing their condition or type) and for the release for free circulation of the products resulting from these processes after payment of the import duties applicable to the processed products. The collection of import duties and the application of commercial policy measures shall be suspended for the duration of the arrangements for imported goods. Trade policy measures only apply to processed products when they are released for consumption.

In order to be authorised to use the processing under control procedure, an application to that effect must be submitted to the customs authority competent for the place where the accounts will be kept or stored or according to the place where the processing will be carried out. The conditions for the application of the procedure shall be set out in detail in the authorisation.

Placing under the procedure of non-Community goods which have been imported for processing shall follow the declaration for processing under customs control at one of the offices of entry specified in the authorisation. Under the customs-processing procedure, any processing resulting in products for which import duties are lower than those applicable to non-Community imports, irrespective of the amount of import duties, shall be admissible. In addition, it is acceptable for all goods for which processing will lead to ensuring compliance of these goods with the technical requirements applicable to the admission of these goods to trading in Poland. While the use of equivalent goods is not allowed, processed products should be manufactured from non-Community imports.

The procedure for processing under customs control shall end, in respect of imported goods, when the processed products or goods intact or products at an intermediate stage of processing are released for free circulation or another customs-approved treatment or use and when all the other conditions of the procedure have been fulfilled.

Temporary severance grants The temporary admission procedure offers the possibility of using European Union goods which are intended for re-exportation. This procedure shall not permit the working, processing or consumption of these goods. Goods placed under the temporary admission procedure shall not be subject to commercial policy measures or to the collection of import duties or other excise duties. The turnover tax on importation shall be suspended only in the case of total relief from customs duties.

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If the goods are not in competition with goods produced in the European Union or if international agreements so provide, temporary admission with full exemption from import duties shall be authorised.

Temporary admission procedure:

• allows the temporary importation of non-Community goods for re-export with total or partial relief from import duties, • as a suspensive procedure excludes the possibility of applying commercial policy measures to goods covered by it, • the goods can only be subject to normal wear and tear resulting from the use of the goods, • the customs authorities shall specify the period within which imported goods must be re-exported or a new customs-approved treatment or use must be obtained. This period must be long enough for the purpose of authorised use to be achieved, • as a general rule, the maximum period during which goods may be placed under the temporary admission procedure is 24 months. The customs authorities may, in agreement with the person concerned, set a shorter or longer period.

The temporary admission procedure comes in two varieties, one consisting of total relief from import duties and the other involves partial relief from import duties.

• Temporary admission procedure with total relief from import duties

The scope of the temporary admission procedure with total relief from import duties was limited only to goods enumerated in the Ordinance of the Minister of Finance on economic customs procedures. These are, on the one hand, goods imported in the course of a business activity and, on the other hand, goods imported by private individuals. Goods which may be imported temporarily with total relief from customs duties shall be as follows:

• means of transport, pallets and containers, including accessories and equipment (internal traffic is no longer a restriction to the use of the procedure, transport regulations must be observed), • personal effects and sports equipment imported by travellers, • social materials for seafarers, • disaster relief materials, • medical, surgical and laboratory equipment, • animals, • goods for use in border areas, • sound, image or data carriers and advertising materials, • professional equipment (including musical instruments), • pedagogical materials and teaching equipment, • packaging, • moulds, dies, blocks, drawings, sketches, measuring, checking and testing instruments and other similar articles, • special tools and instruments, • goods used for testing or undergoing tests, • samples,

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• replacement means of production, • goods intended for events or for sale in specific situations, • spare parts, accessories and equipment, • other goods which are imported occasionally and for a period not exceeding three months or in special situations having no economic effect in the Union.

In the case of this procedure, there is no obligation to pay import duties when the goods are placed under the temporary admission procedure. However, a customs debt may be incurred (potential customs debt) and the customs authority requests a guarantee against possible customs and tax duties. The lodging of a security shall be one of the conditions under which authorisation to use this procedure may be granted.

• Temporary admission procedure with partial relief from import duties

The temporary admission procedure with partial relief from import duties entails the obligation to pay a statutory amount of duty. Use of this form of procedure shall be subject to the payment, for each month of application commenced, of 3% of the amount which would have been payable for goods if they had been placed under the procedure for release for free circulation. Charges shall be payable in advance for each month of use of the procedure, but the total amount of customs dependence collected during the period of application of the procedure may not exceed the amount which would have been payable if the goods had been placed immediately under the procedure for release for free circulation.

The material scope of the temporary admission procedure with partial relief from import duties covers two categories of inputs and means of transport. The first group consists of means of production and means of transport necessary for the performance of services provided in connection with the execution of complete facilities and construction and assembly works on the basis of a concluded contract, while the second category consists of means of production and means of transport leased, rented or put into use, imported in connection with the performed activity, excluding passenger cars.

The subject of the temporary admission procedure may be goods which:

• are the property of a non-domestic person, i.e. a person residing or having its registered office abroad, • shall not be used for purposes other than those for which they were imported, • will be used by the person entitled to use the temporary admission procedure, • are intended for re-export and can be identified.

The person who is to use or arrange for the use of the goods should apply for permission to use the temporary admission procedure. The maximum period for placing under a customs procedure may not exceed 2 years. The customs declaration of goods for the temporary admission procedure shall be made in writing.

The temporary admission procedure with total relief from import duties and the temporary admission procedure with partial relief from import duties shall be ended by assigning goods placed under the procedure for another customs-approved treatment or use. This is usually a re-export of goods.

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Where a customs debt is incurred in respect of goods placed under temporary admission with total relief from import duties, its amount shall be calculated on the basis of the calculation factors on the date of acceptance of the customs declaration entering them for the arrangements. Where a customs debt is incurred in respect of goods placed under the temporary admission procedure with partial relief from import duties, the calculation of the amount of the customs debt shall consist in the deduction, from the amount of duty determined on the basis of the calculation factors, at the date of acceptance of the customs declaration for placing under the procedure, of the amount of duty already collected.

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TRANSPORT INFRASTRUCTURE

IMPORT/EXPORT Due to Poland's strategic location at the crossroads of the main European transport corridors north-south and east-west, connecting with the dynamically developing transport infrastructure, Poland emphasises its strong position on the logistics map of Europe.

Road infrastructure in Poland

Source: GDDKiA, 2016 Since Poland's accession to the EU, thanks to the use of EU funds, there has been a significant increase in the length of expressways and motorways in Poland. In 2003, there were 226 expressways and motorways in total, giving 405 km of roads. In 2016, the road network in Poland exceeded 19,000 km of national roads, including 1631.7 km of motorways and 1531.7 km of expressways.

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Polish transport infrastructure - general information

Investment in maritime 23.8 billion euros Air transport will grow at an transport will will be spent on annual rate of 3.7% (2014- exceed €1.5 transport 2019) billion (2014- infrastructure 2020) (2014-2020)

More 1800 than 15.5 express More 21 multimodal billion and local than nodes in 2020 euros connectio €32.5 2014- ns up to will be invested 2023 2023 in road infrastru cture 2014- 2020 Source: Polish Investment and Trade Agency

Transit of cargo through Poland Due to the central location of Poland, transit of cargo goods from Western Europe, Southern Europe, Central and Eastern Europe (e.g. Estonia, Belarus, Latvia, Lithuania, Russia, Ukraine, Kazakhstan) takes place through Poland.

In addition, Poland is crossed by several international routes with a length of more than 5,000 km, in particular:

1. Berlin - Legnica - Opole - Kraków - Rzeszów - Przemyśl - Lwów,

2. Berlin - Poznań - Warsaw - Moscow,

3. Białystok - Warsaw - Łódź - Wrocław - Prague,

4. Gdańsk - Toruń - Katowice - Cieszyn,

5. Gdańsk - Warsaw - Lublin - Lviv.

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Cargo terminals in Poland Poland has 4 main sea ports for the national economy: Gdańsk, Szczecin, Gdynia and Świnoujście. There are also other seaports with transshipment facilities, such as: Elbląg, Darłowo, Dziwnów, Kołobrzeg, Police, Stepnica, Ustka and Władysławowo.

Some Polish ports are also sea-river ports, e.g. Szczecin, Police and Stepnica.

In Poland there are also ferry connections between Świnoujście and Ystad (Sweden), Trelleborg (Sweden), Copenhagen (Denmark) and between Kołobrzeg and Nexø (Denmark), between Gdańsk and Nynäshamn (Sweden) and between Gdynia and Karlskrona (Sweden). In addition, in summer there is a ferry connection between Świnoujście and Rønne (Denmark).

Container terminalsMultimodal sea terminalsMultimodal rail terminals

Source: Prepared by PAIH.

Railway infrastructure in Poland At the end of 2017 Polish railway lines operated 18,513 km of railway lines.

In 2011-2016, significant investments were made in the Polish railway infrastructure:

• Modernization of main railway stations: Łódź, Warsaw, Tri-City;

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Łódź railway station (Source: http://lodz.wyborcza.pl/lodz/1,44788,21089368,station-lodz- fabryczna-korailway-revolution-w-centrum-lodz.html?disableRedirects=true)

• Modern sets of traction locomotives (passenger trains) have also commenced operations, including Pendolino, Pesa Dart, Pesa Flirt, Newag Impuls;

Pendolino (Source: https://pl.wikipedia.org/wiki/Plik:ED250- 001_Pendolino_prz%C3%B3d(1)_Trako13.jpg)

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Pesa Dart (Source: https://commons.wikimedia.org/wiki/File:PESA_DART_Innotrans_Berlin_2016_03.jpg)

Newag Impulse (Source: https://cs.wikipedia.org/wiki/Soubor:31WE_na_stacji_Wroc%C5%82aw_G%C5%82%C3%B3wny...jpg )

• PKP Cargo has invested in modern transport locomotives: Pesa Gama

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Pesa Gama (Source: https://pl.wikipedia.org/wiki/Pesa_Gama) In addition, Poland is crossed by important international railway routes, in particular:

• E30: German border - Legnica - Wrocław - Katowice - Kraków - Ukrainian border;

• E20: German-Poznań-Warsaw-Warsaw-Belarus border;

• E65: Czech Republic - Katowice - Warsaw - Gdynia - Scandinavia.

In 2016-2023, there are plans to increase expenditure on the expansion and modernisation of railway infrastructure to PLN 31 billion.

In addition, PKP is carrying out a programme of modernization of the existing railway infrastructure, including high-speed rail between the main cities - up to 160 km / h for passenger trains and 120 km / h for freight trains.

Moreover, by 2016, 421 km of railway tracks were rebuilt and over 352 engineering structures (viaducts, bridges, culverts) and 109 platforms were created as part of the National Railway Programme. In 2016, five new railway stations (Jarosław, Wieliczka, Puławy Miasto, Poznań Zachodnia, Grodzisk Mazowiecki) were opened to the public.

In 2017 PKP carried out further modernization works, signing contracts for over 18.5 billion PLN. In 2017, modernization programmes worth over PLN 5 billion were implemented. In particular: construction of more than 600 turnouts, modernization or construction of more than 95 platforms and 460 engineering structures.

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Map of Polish railway tracks

Source: PKP, 2016

Transport of goods by rail According to data from the Railway Transport Authority, the total weight of goods transported in 2017 was 17.6 million tonnes higher than in 2016 (increase by 7.9% y/y). Growth took place in all segments of the transported goods, except for solid fuels.

The weight of goods transported in intermodal transport in 2017 also increased by almost 15% (1.9 million tonnes) and amounted to 14.7 million tonnes.

Maritime transport in Poland There are 3 main sea terminals in Poland:

• Port in Szczecin - Świnoujście - this port handles general cargo handled by the traditional method (i.e. in containers and ro-ro system). The port infrastructure, both in Szczecin and Świnoujście, allows the storage of containers and other cargo units. The annual capacity of the terminal is 200,000 TEU. The port in Szczecin also offers regular shipping connections with Scandinavian countries, Great Britain, Ireland and Russia, as well as container connections with the largest European base ports - Hamburg, Bremenhaven and Rotterdam. Świnoujście offers 10 ferries a day to Sweden (Ystad and Trelleborg) and regular connections with Norway.

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• Port of Gdynia - transshipped in 2017 with a record 21.2 million tons of cargo, almost 9% more than a year ago, it is a modern universal port specializing in general cargo handling, mainly unit cargo, transported in containers and ro-ro system, based on an extensive network of multimodal connections with facilities, regular short-sea shipping lines and ferry connections. The port in Gdynia is an important link in the sixth corridor of the trans-European transport network TEN-T.

• DCT Gdansk Port - annual terminal capacity: 3 000 000 TEU, storage area: 55 000 TEU, annual siding capacity: 780 000 TEU. In 2013, the container terminal handled more than 1 150 000 TEU. This record-breaking result has permanently placed DCT on the map of the world's most important container terminals, and in 2013 secured DCT's position as the largest container terminal in the Baltic Sea in terms of transshipment.

Transshipment in Polish seaports increased from January to October 2017 to over 63 million tonnes, by 4.3% compared to the previous year. Liquid bulk volumes increased significantly - by 25.9% (due to a slight increase last year), including crude oil handling - by 20.8% (after a decrease last year). Container handling weight increased by 23.2%, rolling stock by 11.2% and other general cargo by 3.2%.

Location of sea ports in Poland

Source: Maritime Vortal /*Maritime Office - Maritime Office */

Air transport in Poland There are many international airports in Poland, which are also perceived as important cargo logistics hubs, the largest of which are: Chopin Airport in Warsaw, Katowice and Gdańsk.

• Warsaw Cargo Terminal at Chopin Airport in Okęcie is one of the largest in Central and Eastern Europe.

• The new cargo terminal operated by DHL Express was opened in 2017 at Chopin Airport in Warsaw.

• In 2017 there was a large increase in the number of passengers served by Polish airports - by about 18% y/y (to about 40 million passengers). This was the second highest growth in the world. In fact, Polish ports serve 45 million passengers a year.

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Air connections from Poland Alicante, Amsterdam, Athens, Babimost, Barcelona, Beauvais/Tillé, Beirut, Belgrade, Bergamo, Bergen, Berlin, Bratislava, Brussels, Brussels, Bucharest, Budapest, Bourgas, Casablanca, Chicago, Cologne, Copenhagen, Cork, Doncaster, Dortmund, Dublin, Dubrovnik, Düsseldorf, Eindhoven, Forlì (FC), Frankfurt am Main, Gdańsk, Geneva, Glasgow, Goleniów, Gothenburg, Hamburg, Helsinki, Istanbul, Kaliningrad, Katowice, Kiev, Cracow, Larnarca, Lisbon, Warsaw Liverpool, London, London, Lviv, Madrid, Málaga, Malmö, Milan, Minsk, Moscow, Munich, New York, Newark, Nice, Odessa, Oslo, Palma De Mallorca, Paris, Poznan, Prague, Reykjavík, Riga, Rome, Rzeszow, Sofia, Split, St. Petersburg, St. Petersburg, St. Petersburg. St. Petersburg, Stavanger, Stockholm, Tallinn, Tel Aviv, Toronto, Torp, Treviso, Varna, Vienna, Vilnius, Wrocław, Yerevan, Zurich

Aalesund, Amsterdam, Bergen, Bristol, Copenhagen, Doncaster, Dortmund, Dublin, Frankfurt, Gothenburg, Hamburg, Haugesund, Krakow, Liverpool, Gdansk London, Lviv, Malmo, Manchester, Munich, Newcastle, Oslo, Pisa, Sandefjord, Stavanger, Stockholm, Tel Aviv-Yafo, Turku, Warsaw

Belfast, Chania, Copenhagen, Doncaster, Dublin, Dusseldorf, Eindhoven, Frankfurt, Glasgow, Gothenburg, Kiev, Leicestershire, London, Malaga, Wroclaw Manchester, Milan, Munich, Naples, Reykjavik, Sandefjord, Shannon, Stuttgart, Tel Aviv-Yafo, Warsaw, Zurich.

Alicante, Amsterdam, Basel, Switzerland/Mulhouse, Berlin, Birmingham, Bournemouth, Bristol, Brussels, Copenhagen, Dublin, Dusseldorf, Edinburgh, Eindhoven, Frankfurt, Gdansk, Girona, Helsinki, Kiev/ Kiev, Leicestershire, Krakow Liverpool, London, Manchester, Marrakech, Milan, Munich, Newcastle, Nuremberg, Oslo, Paris, Pescara, Pisa, Prague, Rome, Sandefjord, Stockholm, Stuttgart, Vienna, Warsaw, Zurich

Barcelona, Bergen, Birmingham, Doncaster, Dortmund, Edinburgh, Eindhoven, Katowice Frankfurt, Hamburg, Larnaca, London, Lviv, Malmo, Malta, Munich, Sandefjord, Stockholm, Tenerife, Warsaw

Athens, Copenhagen, Doncaster, Dublin, Edinburgh, Frankfurt, Kerkyra, Kiev, Poznan London, Lviv, Malmo, Malta, Munich, Reykjavik, Sandefjord, Stockholm, Warsaw

Rzeszów Bristol, London, Munich, Warsaw

Łódź Dublin, London, Munich, Oslo

Szczecin Dublin, London, Oslo, Warsaw

Bydgoszcz Dublin, Dusseldorf, Frankfurt, Glasgow, London, Lviv

Lublin Doncaster, Kiev, London, Milan, Munich, Sandefjord

Date of update: April 2018, Source: ourairports.com

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Location of airports in Poland

Source: https://euro-dane.com.pl/lotniska-w-polsce-2014

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COMMERCIALIZATION STRUCTURE

DISTRIBUTION CHANNELS

First contact - meetings with Poles Contacts with partners and customers take place mainly as official meetings due to the fact that Poles prefer to meet in person. During the meeting it is important to remember that we should start with strong handshakes and introduce ourselves to everyone present, we can also give our business cards.

Moreover, Poles pay attention to body language. Try to keep eye contact and smile during the meeting. It is generally accepted that clothing is strictly observed, for example: an ordinary shirt, a suit and tie for men and skirts for women - the most classic set is the best.

Despite the fact that at first Poles may seem stressed and nervous, after a few meetings or a few e-mails sent, they seem more relaxed and may start communicating in a more relaxed way. It only takes some time to get to know your business partner better, so we highly recommend patience.

The first contact with foreign entities usually starts via the Internet. In order to introduce oneself as a trustworthy client/partner in the eyes of Poles, it is very important to have an official and well-functioning company website on the Internet. Trust is of great importance and value to Poles. This is usually associated with quality. Every aspect of it can influence their attitude. Among the many features we can mention: the quality of communication, the quality of the website, the quality of the products offered and the quality of the correspondence sent. All this plays an important role in Polish business.

Business fairs One of the most popular forms of developing one's skills and broadening one's knowledge concerning running a business in Poland is participation in trade fairs and business meetings. Poles very much appreciate direct contact and willingly share their knowledge with entrepreneurs planning to start or expand their business in Poland.

The majority of big cities in Poland have trade fair halls; however, the biggest and the most traditional organizer of international trade fairs is the company Międzynarodowe Targi Poznańskie (MTP), located in Poznań. Another important player is Warsaw Ptak Expo, a relatively new trade fair company whose exhibition halls are located in Nadarzyn, near Warsaw. Other main competitors are Targi Kielce (Kielce) and EXPO Kraków (Cracow).

To keep up to date with current events and find fairs from your sector, we encourage you to visite the website: https://www.targi.com

SALES PROMOTION

Payments for services and submission of offers in Poland Another aspect that can build trust between Polish and foreign entities is payment. In Poland, it is generally accepted that payments for the signed contracts are made within the company's budget, rarely with the help of external financing. This contributes to the fact that Poles attach

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great importance to the price of each service, and this is usually the subject of negotiations. There is usually no need to provide Polish companies with a price expressed in the national currency, but some entrepreneurs may want to make an offer with a price expressed in PLN, because it can protect them in case of differences in the value of currencies.

There are many payment methods that are accepted in Poland. Many entrepreneurs settle their liabilities through online money transfers (SWIFT transfers or bank transfers). Internet banking is a well-developed sector and is enhanced by mobile banking, which is gaining in importance among Poles. The main advantages of mobile banking are the possibility of quick and easy transfer of funds. One of the most popular mobile banking services in Poland is the so-called "Blik". - a way to transfer money in no time. The file only requires verification of payment with a unique 6-digit code. Regardless of the payment method, each business transaction is confirmed by an invoice.

In addition, it should be remembered that Poles tend to discuss each parameter of the offer, because they are studied very meticulously. For this reason, communication and negotiations may seem long for foreigners. In addition, most agreements will not be signed at the first meeting. The slow decision-making process can be even longer in large corporations that have hierarchical and well-developed structures.

Since several meetings may be necessary to resolve one case (contract), it is highly recommended that foreign entities have at least one representative in Poland or cooperate with a Polish company in order to conduct negotiations with a potential business partner.

Language skills Poles speak foreign languages very well. Their high motivation to learn languages makes it easy for them to communicate with foreigners. The language best known to Poles is English, in which the vast majority of Polish companies provide their services. Other popular foreign languages are: German, Russian, French and others.

The chart below shows the knowledge of foreign languages in Poland.

Knowledge of foreign languages in poland (% of total )

Language

0 5 10 15 20 25 30 35 40 45 50

None Italian Russian German Spanish French English

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Source: Statistics Poland (GUS)

Visas and other general information Moreover, thanks to the agreement concluded between the Government of the Republic of Poland and the Government of the Federative Republic of Brazil on the mutual exemption from the visa requirement, citizens of both countries are not required to have a visa when entering the country. According to this agreement it is possible for Brazilian citizens to stay in Poland for up to 90 days without the need to report their stay.

However, this right is reserved only for those Brazilians who do not want to play any role in the company established in Poland, apart from the fact that they are the formal owner (shareholder) of the company. If a foreigner wants to be active in the company, for example, to manage it, it is necessary for him/her to obtain a visa or residence card.

Another important fact relates to social security. There is a general rule that a person may be covered by social security in only one country. This can be a problem for entrepreneurs who operate in a country other than their country of residence.

In case of any doubts, the Polish government has established a special platform to inform foreign businessmen. Detailed information can be found on the website of the Ministry of Enterprise and Technology at the following address: https://www.biznes.gov.pl/en.

Finally, it is worth mentioning that foreigners may prefer to set up a company in Poland instead of starting self-employment, which is a much simpler way of doing business here. In this case, several steps should be taken:

I. Apply for a PESEL number through: fill in the PESEL form and submit it to the local council, which is assigned to the area in which the activity will be conducted.

II. Apply for registration in the Central Register and Information on Business Activity (CEIDG - Central Register and Information on Business Activity).

An application for registration with CEIDG must be made using a digital form. Such an application must be signed using a digital signature or a signature authenticated by a trusted profile of the digital platform for public administration services (ePUAP - electronic platform for public administration services).

The application may also be submitted via a form to a selected municipal office: in person or by registered letter (in this case the application must be signed by the applicant and the signature must be certified by a notary public).

It should be noted that the application for registration in CEIDG is at the same time an application for assigning a REGON number (number of the national register of economic activity), an application for assigning a NIP number (tax identification number) and a certificate for the purposes of ZUS tax contribution, as well as submission of a declaration on the choice of tax form. An application for VAT registration can be attached to the application for registration in the CEIDG. VAT registration takes place at the appropriate tax office (depending on the place of future business activity).

III. Ordering a company seal (optional)

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A company seal can be useful when performing financial and banking activities. It should contain (at least) the following data: full name of the company, seat of the company and tax identification number (NIP).

IV. Opening a company's bank account

An entrepreneur in Poland is not obliged to have a bank account; neither a personal account nor a company account. However, a bank account is necessary to carry out large financial transactions and makes it easier to deal with formalities in offices.

V. Notification of the address at which the business activity is to be conducted

The premises, which will be the seat of the company, should be reported to the city office or commune office for the purpose of paying the obligatory real estate tax. E-commerce commercial practices

E-commerce in Poland - general information E-commerce is gaining in popularity with wider access to the Internet. It is calculated that the value of the e-commerce market in Poland currently amounts to EUR 7.5 billion. In order to make the best use of such an interesting market, it is important to understand the main principles, motives and the whole idea of Polish e-commerce.

Firstly, it is necessary to define a user profile for online shopping. After many studies, a general profile of a statistical Internet buyer in Poland was developed, which looks as follows:

Age 24-34 Woman Habitant of small/medium largecity

Source: own elaboration, Statistics Poland (GUS) data.

In addition, half of Polish Internet users finally declared that they had shopped online at least once in their lives. What is quite surprising is that only 12% of Polish entrepreneurs offer their services online and at the same time allow customers to buy their products over the Internet. It can be said that the Polish e-commerce market is in the development phase and there is still room for the creation of new business activities. On the other hand, it should be remembered that only 10% of Polish customers buy products from foreign e-shops online. Hence, the creation of a new Polish (local) entity on the e-commerce market would be much better than an attempt to enter the market as a fresh (unknown) foreign entity.

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The most popular online products in Poland (in 2016).

The percentage of products purchased by the surveyed group in the last 12 months

building and finishing materials

groceries

computer software

furniture and interior design

cars and car parts

children's articles / toys

telephones, GSM accessories

travel / booking

cosmetics / perfume

tickets to the cinema / theater

clothing, accessories 0 10 20 30 40 50 60 70

Source: own elaboration, Gemius data.

Advantages and disadvantages of e-commerce in Poland Online shopping has many advantages for users who prefer the Internet. Among the elements motivating to buy on the Internet, many customers in Poland mention easy access to a wide range of products in the so-called 24/7 mode and the possibility to compare different offers and choose the most profitable ones for them. Finally, they indicate the most obvious reason for shopping online - there is no need to visit shopping malls in person.

On the other hand, a negative aspect of e-commerce, which is still difficult to solve, is the so- called ROPO (Research Online and Purchase Offline - searching the Internet and shopping outside the Internet). The trend is to search for the best offers on the Internet and then move on to a real store of your choice to buy a product. However, this type of behaviour is popular when buying more valuable products such as cars, computer accessories or mobile devices. In these market sectors it is very important that the customer personally checks the product before paying for it. Fortunately, the ROPO does not affect every sector, so it does not pose a great threat to the future of e-commerce.

Interestingly, there is a reversed ROPO. This is especially beneficial for products that we like to watch in person and then buy cheaper on the Internet, because we are sure that the purchased product will have the same features as the one we saw in the retail store. The best examples are cosmetics and perfumes.

Transport of purchased goods The key aspect of e-commerce in Poland is the organisation of freight transport and other logistical aspects. Forwarding companies offer a wider range of services to satisfy their

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customers. These companies assume responsibility not only for the receipt and transport of goods, but also for the preparation of forecasts and the flow of information. This task is particularly difficult because they do not work with an established customer base, nor do they know their final customers.

Nevertheless, new ideas are introduced every day in order to provide a fast and cheap service in this area. It is now possible to collect the parcel by courier, post or by a special device known as a "parcel machine". "Paczkomat" is a special device located in many places in cities, where, thanks to individual lockers in which each order is placed, the recipient can receive their product without the need to meet the courier personally. "Parcel machines" are constantly open and are a saving option.

Percentage of delivery methods chosen by customers 61% Courier 21% Post Office 11% "Paczkomat" (parcel machine) Source: own elaboration, Gemius data.

It is worth mentioning that according to the latest data 57% of online customers declare that they would like to shop online more often, but the delivery price is too high.

Any business, even online, requires at some point a payment, which must be made. E- commerce is one of the most important reasons for the development of e-banking in Poland. Thanks to the wide access to fast Internet in Poland, over 80% of Poles use Internet banking.

History of e-commerce in Poland In Poland, online shopping has been present on the market since 1997. The largest Polish Internet platform for e-commerce is Allegro, which has been operating for almost 19 years. Currently, the number of users of this portal is more than 14 million.

Market share of the main players (sorted by the number of visits to the platform, monthly [million])

E-PLATFORMS E-COMMERCE

POPULARITY IN POLAND

16

9,2

4,3

4,2

4,1

4

3,6

3,1

2,9 2,9

Source: Gemius

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As you can see on the presented chart, Polish e-platforms are the most popular among e- commerce websites. However, national websites are changing their appearance and mechanisms to resemble their foreign counterparts more closely. Experts believe that the transformation of appearance not only results from the development of technology, but it is also a way to prepare for the "fight" against foreign entities.

In Poland there are not only national e-commerce platforms, but also international giants. The most important of these is the German platform Zalando, a fashion store. In addition, there is speculation as to whether Amazon is preparing to open a website dedicated to the Polish market, currently only products from the German website amazon.de can be purchased.

In addition to the above mentioned entities, the most frequently used website is Aliexpress. This Chinese platform provides the lowest prices, which is an extremely important factor for Poles who are considered to be economical. In less than a year the number of Aliexpress users in Poland doubled.

Forecasts for the future Despite the fact that e-commerce in Poland is developing dynamically and has an increasing role to play in creating GDP (gross domestic product), it still accounts for only 10% of total retail sales. So the chance that a potential online customer will actually buy something online is ten times smaller than that of a traditional shop.

Moreover, forecasts for the e-commerce market in Poland are optimistic. It is estimated that this market will be worth PLN 70 billion in 2020. Such predictions are likely to become a reality as the number of Internet users continues to grow. Interestingly, the number of users among the elderly is growing the fastest (60+). A few years ago it was not possible to enter this market.

A new trend that is likely to become more and more popular is the creation of so-called showrooms. Because customers like to see products in person, this possibility will be created in special places where people will be able to check the products and then buy them online. Showrooms are not only a way to combat the ROPO effect, but can also attract new customers who have never shopped online before. This revolutionary change can certainly have a major impact on market growth.

Another important aspect of online shopping is contacting the customer. Many retailers use the omnichannel (multiple channels) to create a relationship with consumers. Omnichannel is a technique using online shops, websites, traditional shops, e-mailing and mass media. Its aim is to get to know the customer better and present the company as interesting.

As the impact on society becomes more intense, the omnichannel is becoming more and more popular. More and more companies are trying to attract the attention of customers by creating a whole network of connections and do not let them forget about the company. It is proposed that new entrepreneurs use multiple sources in order to stay in touch with potential customers.

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APPENDIX

Ministries

Ministry of Digitisation 27 Królewska Street 00-060 Warsaw tel. +48 22 250 01 10 e-mail: [email protected] www.gov.pl/web/cyfryzacja/o-ministerstwie

Ministry of Finance 00-916 Warsaw Świętokrzyska Street 12 tel. +48 22 694 55 55 e-mail: [email protected] www.mf.gov.pl

Ministry of Enterprise and Technology Department of International Trade and Cooperation Plac Trzech Krzyży 3/5 00-507 Warsaw tel. +48 22 262 92 70 fax +48 22 262 91 36 e-mail: [email protected] www.mpit.gov.pl

Ministry of Foreign Affairs Department of America Al. J. Ch. Szucha 23 00-580 Warsaw tel. +48 22 523 9270 fax +48 22 622 6462 e-mail: [email protected] www.msz.gov.pl

Ministry of Agriculture and Rural Development Wspólna Street 30; 00-930 Warsaw Department of the European Union and International Cooperation tel. +48 22 623 24 71 or +48 22 623 18 40 fax +48 22 623 17 80 e-mail: [email protected] www.minrol.gov.pl

Ministry of the Environment Wawelska Street 52/54, 00-922 Warsaw tel. +48 22 57 92 400 fax +48 22 57 92 224 e-mail: [email protected] www.mos.gov.pl

Embassies and consulates

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Embassy of the Federative Republic of Brazil in Warsaw Bajońska Street 15, 03-963 Warsaw tel. +48 22 617 48 00fax +48 22 617 86 89e-mail : [email protected] http://varsovia.itamaraty.gov.br

Sales Department: Tel. +48 22 617 48 00 Fax. +48 22 617 86 89 e-mail: [email protected] Monday to Friday: 9:00- 16:00

Consular Unit 15 Bajońska Street 03-963 Warsaw tel. +48 22 617 48 00 (from 9:30 am to 12:30 pm, Monday to Friday) fax +48 22 617 48 00 e-mail: [email protected]

Official Journal of the European Union

Patent Office of the Republic of Poland Al. Niepodległości 188 / 192 00-950 Warsaw [email protected] tel. +48 22 579 05 55 fax +48 22 579 00 01 e-mail: [email protected] www.uprp.pl

Polish Committee for Standardization Postal control. 411, 00-950 Warsaw Świętokrzyska Street 14 00-050 Warsaw Telephone (+48) 22 55 67 777 e-mail: [email protected] www.pkn.pl

Chambers of Commerce

Polish-Brazilian Chamber of Commerce Camâra de Comèrcio Polônia-Brasil Trębacka Street 4 00-074 Warsaw tel: +48 601 330363 fax: +48 22 862 45 92 e-mail: [email protected] http://www.izbapol-braz.com/index.html

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Polish - Portuguese Chamber of Commerce Rejtana Street 17 lok. 32, floor 8. Warsaw - 02-516 tel: +48 22 400 76 60 e-mail: [email protected] http://ppcc.pl/

Confederation of Commercial and Business Associations of Brazil Scs Quadra 03, Bloco A, Ed. Cacb - Brasília, Df CEP: 70.313-916 tel. +55 61 3321-1311 fax: +55 61 3224-0034 e-mail: [email protected] https://cacb.org.br/

Polish Chamber of Commerce 00-074 Warsaw Trębacka Street 4 tel. +48 22 630 96 00 fax +48 22 827 46 73 e-mail: [email protected] www.kig.pl

Polish Chamber of Commerce Grażyny Street 13/10 02-548 Warsaw tel. +48 22 440 83 23 kom. +48 695 950 337 e-mail: [email protected] www.pih.org.pl

Polish Organisation for Trade and Distribution Al. Ujazdowskie 41 00-540 Warsaw tel. +48 22 211 21 27 fax +48 22 378 11 47 e-mail: [email protected] www.pohid.pl

Polish Chamber of Leather Industry Zgierska Street 73 91-462 Łódź Tel: +48 42636 12 21 fax: +48 42636 09 24 e-mail: [email protected] www.pips.pl

Polish Chamber of Packaging 11 Konstancińska Street 02-942 Warsaw tel. +48 22 651 83 94 fax +48 22 842 23 03 e-mail: [email protected], [email protected] www.pio.org.pl

Polish Chamber of Chemical Industry ul. Śniadeckich 17 00-654 Warsaw

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Tel: +48 2282828 75 06 Fax: +48 22 203 43 78 e-mail: [email protected] www.pipc.org.pl

Polish Chamber of Commerce of Wood Industry ul. Gronowa 22 pok. 1301 61-655 Poznań tel. +48 61 668 90 41 e-mail: [email protected] www.przemysldrzewny.pl

Polish Chamber of Clothing and Textiles Kielecka Street 7 81-303 Gdynia tel. +48 58 620 95 01 fax: +48 58 621 69 23 e-mail: [email protected] www.textiles.pl

General Council of the Trade and Services Association Oboźna Street 8 00-332 Warsaw tel. +48 22 828 22 06 fax: +48 22 828 22 07 e-mail: [email protected] www.kupiec.org.pl

Banks

Alior Bank BOŚ BGŻ BNP Paribas BZ WBK Citi Handlowy Credit Agricole Deutsche Bank Eurobank Getinbank Idea Bank ING Bank Śląski mBank Millennium Bank Nest Bank Pekao SA PKO BP Plus Bank Raiffeisen Polbank Santander Bank

Database of trade fairs in Poland: https://polfair.pl/dla-wystawcow/wyszukiwarka-targow/

Entities organizing exhibitions in Poland:

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The companies listed below are the main organizers of trade fairs. The thematic scope of the fair is very wide and covers both the consumer, hobby, business, real estate and sports areas.

Polish Chamber of Exhibition Industry 12 Bukowska Street 60-810 Poznań tel. +48 61/866 15 32, 869 22 45, fax: +48 61 866 10 53 e-mail: [email protected] http://www.polfair.com.pl/

Międzynarodowe Targi Poznańskie sp. z o.o. Głogowska Street 14 60-734 Poznań tel. +48 61 869 2000 fax +48 61 869 2999 e-mail: [email protected] www.mtp.pl

International Fair Poland Sp. z o.o. Jordanowska Street 12 04-204 Warsaw tel. +48 22 529 39 00 / 50 fax +48 22 529 39 30 e-mail: [email protected] www.mttargi.pl

TARGI KIELCE Sp. z o.o. Zakładowa Street 1 25-672 Kielce tel. +48 41 365 12 22 fax +48 41 345 62 61 e-mail: [email protected] www.targikielce.pl

Gdańsk International Fair SA Sailing Street 11, 80-560 Gdańsk tel.+48 58 554 92 00, fax +48 58 552 21 68 e-mail: [email protected] www.mtgsa.com.pl

Targi w Krakowie Sp. z o.o. Galicyjska Street 9 31-586 Kraków tel. +48 12/644 59 32, 644 81 65 fax +48 12 644 61 41 e-mail: [email protected] www.targi.krakow.pl

Municipal Arena of Culture and Sport Sp. z o.o. al. Bandurskiego 7 94-020 Łódź tel. +48 42 272 15 01 fax +48 42 674 15 04 e-mail: [email protected] https://makis.pl/

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Media

Gazeta Wyborcza, Rzeczpospolita, Dziennik Gazeta Prawna, Fakt, Super Express

Magazines: Political: Polityka, Newsweek Poland,Wprost religious: Tygodnik Powszechny, Gość Niedzielny automotive: Auto Świat, Motor

Television stations: public: TVP1, TVP2, TVP Info, TVP Kultura private: TVN, Polsat, TV4

Radio stations: Polish Radio: Programmes 1, 2, 3 RMF Group: RMF Fm Eurozet: Radio Zet Agora Group: TOK Fm Time Group: Radio Eska Anti-radio Radio Maryja

Consumer protection authorities

Office of Competition and Consumer Protection Plac Powstańców Warszawy 1 00-950 Warsaw tel. +48 22 55 60 800 e-mail: [email protected] www.uokik.gov.pl

Advertising agencies

Corporate Profiles Consulting Kaniowska Street 43 01-529 Warsaw tel. +48 22 839 61 17 e-mail: [email protected] www.cpc.pl

DDB Warsaw Wybrzeże Gdyńskie 6c Street 01-531 Warsaw tel. +48 22 560 34 00 fax +48 22 560 34 01 e-mail: [email protected] www.ddb.pl

GREY Group Poland Prosta Street 51 00-838 Warsaw tel. +48 22 25 00 900 fax +48 22 25 00 901 e-mail: [email protected]

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www.grey.com.pl

Publicis Worldwide Poland Wołoska Street 9a 02-583 Warsaw Tel. +48 22 319 35 50, 51 fax: +48 22 319 35 60 e-mail: [email protected] www.publicis.pl

Saatchi&Saatchi Poland Ul. Domaniewska 42 02-672 Warsaw tel.+48 22345 21 00 fax: +48 22345 21 01 e-mail: [email protected] www.saatchiis.pl

Leo Burnett Warsaw Wołoska Street 9 02-583 Warsaw tel. +48 22 448 98 00 fax +48 22 448 98 01 e-mail: [email protected] www.leoburnett.pl

BBDO Warszawa Sp. z o.o. Wybrzeże Gdyńskie 6c Street 01-531 Warsaw phone: +48 22 53 29 500 fax: +48 22 53 29 503 e-mail: [email protected] www.bbdo.pl

Brain H. Sienkiewicza Street 4/5 00-015 Warsaw tel. +48 22 845 09 82 e-mail: [email protected] www.brain.com.pl

McCANN Worldgroup Cybernetyki Street 19 02-677 Warsaw tel. +48 22 60 76 100 e-mail: [email protected] www.mccannworldgroup.pl

Media houses

Starcom Domaniewska Street 44 A 02-672 Warsaw tel. +48 22 493 99 99 http://www.starcomww.com/markets/poland/

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Universal McCann Cybernetyki Street 19 02-677 Warsaw tel. +48 22 21 01 400 fax +48 22 21 01 401 e-mail: [email protected] www.universalmccann.com.pl

Mindshare Poland Żaryna Street 2b, Building C 02-593 Warsaw tel. +48 22 37 37 200 fax +48 22 37 37 202 e-mail: [email protected] www.mindshare.pl

ZenithOptimedia Group Domaniewska Street 42 02-672 Warsaw tel. +48 22 345 21 40 fax +48 22 345 21 41 e-mail: [email protected] www.zenithmedia.pl

OMD Ibisa Street 14 02-812 Warsaw tel. +48 22 32 01 100 fax +48 22 32 01 101 e-mail: [email protected] www.omd.pl

Information for foreign investors".

Polish Investment and Trade Agency Bagatela Street 12 00-585 Warsaw tel. +48 22 334 98 00 fax +48 22 334 99 99 99 e-mail: [email protected] www.paiz.gov.pl

Public opinion poll

Kantar Polska S.A. Konesera Square 9 03-736 Warsaw; tel. +48 22 545 20 00 e-mail: [email protected] www.tnsglobal.pl

CBOS - Centre for Social Opinion Research Świętojerska Street 5/7 00-236 Warsaw

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tel. + 48 22 628 37 04 fax: + 48 22 629 40 89 e-mail: [email protected] www.cbos.pl

ACNielsen Polska Sp. z o.o. Postępu Street 15B 02-676 Warsaw tel. +48 22 338 73 00 fax +48 22 338 73 09 e-mail: [email protected] www.nielsen.com/pl

ARC Rynek i Opinia Sp. z o. o. o. Juliusza Słowackiego Street 12 01-627 Warsaw tel. +48 022 584 85 00 fax. +48 022 584 85 01 e-mail: [email protected] www.arc.com.pl

CEM Institute for Market and Public Opinion Research Sp. z o.o. Syrokomli Street 10 30-102 Kraków tel. +48 12 637 54 38 fax +48 12 638 69 13 e-mail: [email protected] www.cem.pl

Consulting companies

PwC International Business Center Lecha Kaczyńskiego Street 14 00-638 Warsaw tel. +48 22 746 40 00 fax: +48 22 742 40 40 40 www.pwc.com

EY Rondo ONZ 100-124 Warsaw tel. +48 22 557 70 00 fax. +48 22 557 70 01 e-mail: [email protected] www.ey.com

Deloitte Jana Pawła II Alley 22 00-133 Warsaw tel.: +48 22 511 08 11 fax. +48 22 511 08 13 www.deloitte.com

Rödl & Partnerul Sienna Street 73

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00-833 Warsaw tеl. +48 22 696 28 00 fax. +48 22 696 28 01 www.roedl.net/pl

Advicero Tax Nexia Moniuszki Street 1A 00-014 Warsaw tel. +48 22 378 17 10 e-mail: [email protected] www.advicero.eu

Obtaining documents concerning foreign trade

Statistics Poland Al. Niepodległości 208 00-925 Warsaw tel. +48 22 608 30 00 e-mail: [email protected] www.stat.gov.pl

Ministry of Finance/Customs Service Świętokrzyska Street 12 00-916 Warsaw tel. +48 22 694 55 55 e-mail: [email protected] www.mf.gov.pl

Transport companies

C.Hartwig Gdynia S.A. Śląska Street 47 81-310 Gdynia tel. +48 58 77 25 000 fax +48 58 77 25 001 e-mail: [email protected] www.chg.pl

Kuehne + Nagel Sp. z o.o. Wirażowa Street 35 02-158 Warsaw tel. +48 22 460 46 33 www.kn-portal.com

Hellmann Worldwide Logistics Polska sp. z o.o. sp. k. Sokołowska Street 10 05 - 090 Machinery Tel. +48 22 717 97 97 97 Fax +48 22 717 97 04 E-mail: [email protected] www.hellmann.pl

Shipping

DHL Global Forwarding sp. z o.o. Workers' Defence Committee ul. 45b

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02-146 Warsaw tel. 22 335 96 00 www.logistics.dhl

UPS Polska Sp. z.o.o. Prądzyńskiego Street 1/3 01-222 Warsaw tel. +48 22 489 48 77 www.ups.com

DPD Poland Mineralna Street 15 02-274 Warsaw tel. +48 22 577 55 00 fax: +48 22 577 55 50 e-mail: [email protected] www.dpd.com.pl

Communication

Telephones

48 - telephone code of Poland 112 - universal emergency number 999 - ambulance 997 - police 998 - fire brigade 986 - municipal police 981 - roadside assistance

Communication

Most cities have well-developed public transport. Moreover, there is a thriving inter-urban communication network in Poland.

Buses

You can reach many of the main cities and smaller towns. Tickets can be purchased online, at the ticket office at the bus station or directly from the bus driver. This is one of the cheapest forms of travelling around the country, provided that we buy tickets in advance.

Aeroplane

One of the fastest and most comfortable options for traveling between the largest Polish cities.

Railway

By train, you can reach practically every town in the country. The largest Polish carrier is PKP S.A. offering express, express, express and passenger trains. In addition to the main carrier, there is a company called Przewozy Regionalne. On the territory of the Mazowieckie Voivodeship, it operates as: Mazovian Railways, Warsaw Commuter Rail and Fast Urban Railways; in the Tricity as the Tricity SKM, and in the Lower Silesia Voivodeship as the Lower Silesian Railways.

Public transport

In most Polish cities there is an efficient bus and tram transport. In the capital you can also use the Warsaw metro.

Car

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Persons who want to travel on Polish roads by car must meet the following conditions: have an identity card, an international driving licence, a vehicle registration card with current inspection, civil liability insurance. People from outside the EU should have a so-called Green Card. In Poland, it is obligatory to fasten the seat belts by the driver and by the front and rear passenger seats. Driving with the lights on is obligatory throughout the calendar year. The driver may only make mobile phone calls via headset or hands-free car kit while driving. The permitted amount of alcohol in blood is 0.2 per mille. Exceeding this amount may result in imprisonment of up to 2 years. Each car must be equipped with: fire extinguisher, warning triangle. In addition, you must have a first-aid kit and a reflective vest. Children up to the age of 12 years must wear child seats.

Taxis

Available in most cities and smaller towns. The costs vary and depend on the city and the carrier. Uber is also very active.

Airlines

LOT Polish Airlines S.A. Workers' Defence Committee ul. 43 02-146 Warsaw www.lot.com

Air France ul. Nowy Świat 64 Warsaw tel. +48 22 556 64 00 e-mail: [email protected] www.airfrance.com

Alitalia Nowy Świat 64 00-357 Warsaw www.alitalia.com

Office of Austrian Airlines Atrium Plaza al. John Paul II 29 00-867 Warsaw e-mail: [email protected] www.aua.com

British Airways Branch in Poland Marszałkowska Street 76 03-966 Warsaw tel. +48 22 529 90 00 fax +48 22 628 63 41 e-mail: [email protected] www.ba.com

Czech Airlines Hotel Jan III. Sobieski Arthur Zawisza Square 1 02-025 Warsaw tel. +48 22 659 67 99 fax +48 22 659 62 58 e-mail: [email protected] www.czechairlines.com

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Finnair Regus Sheraton Plaza, Prusa Street 2, 00-493 Warsaw tel. +48 22657 01 29 fax +48 22657 01 69 www.finnair.com

Deutsche Lufthansa S.A. Branch in. Poland Al. Jana Pawła II 29 00-867 Warsaw tel. +48 22338 13 00 fax: +48 22850 04 38 www.lufthansa.pl

Practical information

Poland

Currency

The Polish currency is the zloty, which is divided into pennies. In bank records, the entry PL PLN is also used. 1PLN = 100 gr. Poland is not a member of the euro area.

Hours of office

Most public offices and institutions are open from Monday to Friday from 8:00 am to 4:00 pm.

Electricity

One standard voltage level is 230 V.

Measuring system

SI system

Time zone

UTC+1 - winter UTC +2 - summer

Passport and visa

Citizens of EU member states may freely cross the Polish border, it is advisable to have an identity card in case of control.

Persons from outside the EU should acquaint themselves with the entry regulations to Poland applicable in a given country, which can be found on the embassy websites.

Brazilian citizens coming to Poland for tourist purposes are entitled to a 90-day visa-free stay within each 180-day period (the period of 180 days counts for the entire Schengen area to which they belong): Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hungary, Luxembourg, the Netherlands, Portugal, Spain, Sweden, Italy, Estonia, Latvia, Lithuania, Malta, Poland, the Czech Republic, Slovakia, Slovenia, as well as Switzerland, Liechtenstein, Norway and Iceland. Note: Great Britain, Ireland, Cyprus, Croatia, Bulgaria, Romania do not belong to Schengen.

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During the stay without the need to obtain a visa, the foreigner should meet the following conditions: have a valid travel document, be able to justify the purpose and conditions of the intended stay, have sufficient means of subsistence or the possibility of obtaining them lawfully, not be a person for whom an alert has been issued in the SIS for the purposes of refusing entry and not be regarded as a threat to public policy, internal security, public health or the international relations of any of the Member States, and in particular not have been the subject of an alert for the purposes of refusing entry in Member States' national data bases on that ground.

Vaccination

Viral hepatitis A - not necessarily Viral hepatitis B - not necessarily Yellow fever - not necessarily Dietary fiber, tetanus, polio - recommended Abdominal fever - not necessarily Rabies - not necessarily Japanese encephalitis - not necessarily Meningococcal meningitis - not necessarily

You should also read the applicable vaccination regulations for your country. Take with you an adequate supply of medication that you must take for health reasons.

Hotels in Warsaw

Polonia Palace Hotel Al. Jerozolimskie 45 00-692 Warsaw tel. + 48 22 31 82 800 fax: + 48 22 31 82 801 e-mail: [email protected] www.poloniapalace.com

Hotel Jan III Sobieski Arthur Zawisza Square 1 02-025 Warsaw tel. +48 22 579 10 00 www.sobieski.com.pl

InterContinental Hotel Warsaw Emilii Plater 49 00-125 Warsaw tel. +48 22 328 8888 fax +48 22 328 8889 e-mail: [email protected] www.warszawa.intercontinental.com

Hotel Marriott Al. Jerozolimskie 65/79 00-697 Warsaw tel. +48 22 630 63 06 fax +48 22 830 03 11 www.marriott.com

Campanile Hotel Towarowa Street 2 00-811 Warsaw tel. +48 22 582 72 00 www.campanile.com

Hotel Novotel Centrum

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Marszałkowska Street 94/98 00-510 Warsaw tel. +48 22 596 00 00 fax +48 22 596 06 47 e-mail: [email protected] www.orbis.pl

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Advicero Tax Nexia Sp. z o.o.

Moniuszki 1A Street (9 p.), 00-014 Warsaw (Poland)

T: +48 22 378 17 10

E: [email protected]

Advicero Nexia (www.advicero.eu) is a consulting company providing comprehensive advice covering tax advisory, accounting and payroll outsourcing services. Through cooperating entities we offer as well legal services and financial audit.

Advicero Nexia has been created by consultants having extensive experience in advising Polish and international clients. We help new investors in Poland in establishing their business presence in Poland. We also advise our clients in all the necessary tax steps required to start their business in the most tax efficient way. Our goal is to apply the highest quality and standards of services on the level known from international advisory firms for offering them at the fee level tailored to meet the specific needs of our Clients. We will help you for e.g. in company registration, payroll obligations, tax reviews, relief for research and development and many others.

Advicero Nexia is a member of the global network of Nexia International - one of the 10 largest audit and consulting networks in the world.

Katarzyna Klimkiewicz-Deplano, Managing Partner, M: +48 602 338 215,

E: [email protected]

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Bnt attorneys in CEE

Chłodna 51 00-867 Warsaw

T: +48 22 373 6550

E: [email protected]

Bnt has been operating in Warsaw since 2005 and specializes in legal advice for Polish entrepreneurs with foreign contractors or capital ties with foreign entities, as well as subsidiaries of foreign investors in Poland.

At bnt's Warsaw office there are Polish and German lawyers with many years of experience in providing legal services to business entities.

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