Poland Sets Quota on Duty-Free Car Part Imports

08/30/96

Reuters has reported that Poland's Industry Ministry announced Polish government regulations that limit duty-free import of parts for car manufacture. Under the regulation, auto manufacturers must get a permit from Poland's Foreign Trade Ministry in order to import parts duty-free.

Reuters cited Industry Ministry spokeswoman Beata Nawracka as saying, "The regulation obliges firms importing duty-free parts for car assembly to obtain a permit from the foreign trade ministry."

Prior to the new regulations, any company that assembled more than 1,000 vehicles per year was automatically exempted from paying duty on car parts. Nawracka said the new rules were aimed at limiting small assembly plants run by companies that want to profit on Poland's booming car market without investing much.

The government's decision went into effect on August 24 and gave car producers little time to obtain the permit. Although none have had to pay the duty so far, some said the short notice would force them to temporarily pay the duty.

Giovanni Prati, spokesman for the Polish unit of Italy's Fiat Spa, said, "(Without the permit) we will probably have to pay (the duty) so as not to stop production." Prati added that his firm had applied for the permit.

Roman Janczewski, a spokesman for Universal SA said the regulation has blocked the launch of the assembly of Hyundai cars by a recently created joint venture between Universal SA and Hyundai. He said trucks carrying parts for assembly of Hyundai's Accent model were stopped at the border. Universal and Hyundai plan to assemble 15,000 units annually.

Zbigniew Ostrowski, a spokesman for Poland's foreign trade ministry said it would issue permits to eligible companies as soon as possible. "It should be a matter of days," he said.

Paul Dever -- The Auto Channel