Poland OKs Fiat for Duty-Free Car Parts Import

09/03/96

Reuters has reported that the Poland's foreign trade ministry has granted Fiat a permit to import duty-free car parts for vehicle assembly. The permit is the first one that has been issued since the government announced new regulations that instituted a tariff on all car parts imported by firms without the permit. The foreign trade ministry said that other firms should receive such permits soon.

At a news conference, Zbigniew Ostrowski said, "the first permit was granted on Wednesday to Fiat. We've received two other applications which are being analysed...and if they meet the requirements they will be accepted."

The regulation, which took effect on August 24, replaced a previous one which automatically exempted any company from car parts duty if it assembled more than 1,000 units annually.

The regulation, which was announced shortly before it went into effect, surprised car makers, and threatened to temporarily halt production for carmakers with small stocks of car parts.

Poland's industry ministry designed the regulation to limit small assembly plants run by companies that want to profit on Poland's booming car market without investing much.

Foreign Trade Minister Jacek Buchacz, said the ministry would make sure car assembly was not halted: "I think there is no danger of a sudden halt in car assembling in Poland. The situation is under control."

Daewoo-FSO said it had enough car parts in stock to continue car assembly over the next few days, but would have to idle production after that, unless granted a permission: "If we don't receive the permission in the next few days a stoppage will be inevitable," a spokeswoman said, adding that the company had applied for a permit.

Paul Dever -- The Auto Channel