Polish content guidelines
Why is there a need to define Polish products and services?
- State Treasury backed insurance covers transactions exclusively concerning exports of Polish goods and services.
- International standards, OECD agreements and European Union Directives require national rules to be established regarding the country of origin of goods and services.
Exactly which products and services are classified as Polish?
Polish products and services are ones where the share of foreign origin of ingredients and components does not exceed the percentage threshold in the net income within the performance of a contract, specified in the Ordinance of the Minister of Economy of 19 December 2014.
The percentage threshold was set depending on the payment date specified under the given contract and amounts to:
- maximum of 70% - for transactions with a payment term of under 2 years,
- maximum of 60% - for transactions with a payment term of at least 2 years.
There are exceptions in certain sectors:
- maximum of 90% - for construction services,
- maximum of 80% - for electronic computation devices, electrical equipment and electrical and telecom industry equipment, aircraft, sea vessels and inland waterway transport.
Which elements are classified as foreign components of a contract?
All manufacturing costs or acquisition costs incurred in connection with the performance of an export contract for the benefit of:
- foreign employees, suppliers and service providers,
- public authorities of other countries.
Which elements are classified as Polish components?
All manufacturing costs or the acquisition price incurred for the benefit of employees, suppliers, service providers and public authorities in Poland.
The costs of purchasing raw materials or semi-finished products that are not directly extracted or manufactured in Poland or whose equivalents that are extracted or manufactured in Poland do not possess the parameters specified in the export contract.
The margin calculated as the difference in the net proceeds derived from the performance of the export contract and the total costs of manufacture of the product or service.
How do we document that given products or services are Polish?
- Invoices or other sales documents.
- Invoices and other documents concerning the costs of manufacture or the acquisition price.
- Analytical print-outs from accounts within a financial accounting system.
- Other documents and information concerning incurred manufacturing costs or acquisition price.
- Documents concerning the profit margin from the performance of the export contract.
- Any other documents that help determine the origin of the product or service.
What if the contract is not performed in its entirety?
Then, the origin of the product or service is determined with reference to the sum of products and services that were meant to be provided within the given contract, defined on the day of execution of the export contract.
What happens when circumstances arise that will lead to products or services losing their “domestic” status?
If such circumstances could not have been avoided by the entrepreneur and concerned the following:
- an exchange rate variation;
- basic raw material, semi-finished product or service prices during the performance of the export contract;
the origin of the product or service being established in relation to their determined value on the day of execution of the contract.