Dz

Document Sample
Dz Powered By Docstoc
					1. ------IND- 2008 0454 PL- EN- ------ 20081124 --- --- PROJET




                                                                                          Draft




                                      Excise Duty Act 1)

                                              of




                                           Section I

                                     General provisions


    Article 1. 1. The Act defines the charging of excise duty, hereinafter “excise duty”, on
excise goods and on passenger cars, the organising of the circulation of excise goods, and
marking with excise marks.
    2. Excise duty constitutes State budget income.

    Article 2. Explanation of expressions used in the Act:
1) excise goods – energy products, electricity, alcoholic drinks and tobacco products, defined
   in Annex 1 to the Act;
2) Poland – the territory of the Republic of Poland;
3) Member State – the territory, other than that of the Republic of Poland, of a Member State
   of the European Community which, in keeping with Community law, is treated as the
   territory of that Member State for the purposes of applying the provisions of excise goods,
   in that is required for applying the Act:
   a) it is regarded that the following are excluded from the territories of the Member
       States:
     – from the Federal Republic of Germany – the Island of Heligoland and the territory of
     Büsingen,
     – from the Italian Republic – Livigno, Campione d'Italia and the Italian waters of Lake
       Lugano,
     – from the Kingdom of Spain – Ceuta and Melilla, the Canary Islands2),
     – from the French Republic – the overseas departments3) ,
   b) transactions originating from or destined for:
     – the Principality of Monaco – are treated as transactions originating from or destined
       for the French Republic,
     – Jungholz and Mittelberg (Kleines Walsertal) – are treated as transactions originating
       from or destined for the Federal Republic of Germany,
     – the Isle of Man – are treated as transactions originating from or destined for the United
       Kingdom of Great Britain and Northern Ireland,
                                              2

      – San Marino – are treated as transactions originating from or destined for the Italian
        Republic,
      – the United Kingdom Sovereign Base Areas of Akrotiri and Dhekelia – are treated as
        transactions originating from or destined for of the Republic of Cyprus;
4) European Community – the territory of Poland as well as the territories of Member States;
5) third country – territory other than the territory of the European Community;
6) export – the transport of excise goods or of passenger cars from Poland outside the
    European Community, acknowledged by a customs office which supervises the actual
    carriage of these goods or cars beyond the European Community; if the excise goods are
    transported out with excise marks this is not regarded as export;
7) import – the transport in of excise goods or of passenger cars from a third country into
    Poland;
8) intra-Community supply – the carriage of excise goods or of passenger cars from Poland
    to a Member State; if the excise goods are moved with excise marks this is not regarded as
    intra-Community supply;
9) intra-Community acquisition – the carriage of excise goods or of passenger cars from a
    Member State in Poland;
10) tax warehouse – the place where given excise goods are: produced, held, transported to or
    from – with application of the duty suspension arrangement; in the event of the tax
    warehouse being located in Poland this location is defined in the permit issued by the
    competent customs office manager;
11) entity managing the tax warehouse – the entity which has been issued a permit to manage
    the tax warehouse;
12) duty suspension arrangement – an arrangement applied to the production, holding,
    transhipment and carriage of excise goods, during which, while the conditions defined
    under the provisions of this Act and legislative acts issued on its basis are being met,
    fiscal responsibility does not arise from the incurrence of excise duty;
13) registered trader – an entity to whom a permit has been issued for the intra-Community
    acquisition of excise goods sent with application of the duty suspension arrangement as
    part of business activity;
14) unregistered trader – an entity to whom a one-off permit has been issued for the intra-
    Community acquisition of excise goods sent with application of the duty suspension
    arrangement as part of business activity;
15) accompanying administrative document – a document, on the basis of which excise goods
    with the application of the duty suspension arrangement are moved;
16) simplified accompanying document – a document on the basis of which there is carriage,
    in terms of intra-Community supply or intra-Community acquisition, of excise goods with
    duty paid and ethyl alcohol which has been completely denatured in accordance with
    Commission Regulation (EC) No 3199/93 of 22 November 1993 on the mutual
    recognition of procedures for the complete denaturing of alcohol for the purposes of
    exemption from excise duty (OJ L 288 of 23 November 1993, p. 12, as amended.; OJ
    Special Polish Edition, Chapter 9, v. l, p. 249, as amended);
17) excise marks – marks defined by the competent Minister of Public Finances, used for
    marking excise goods subject to obligatory marking, covering:
    a) duty excise marks, which constitute acknowledgment of payment of the amount
        constituting the value of the duty excise marks,
    b) legalisation excise marks which are an acknowledgement of the right of the entity with
        the obligation to mark excise goods with excise marks, to earmark these goods for
        sale;
18) invoice – an invoice in the understanding of the provisions of value added tax;
                                                 3

19) final purchaser – an entity acquiring electricity, not holding a concession to produce,
    transmit, distribute or trade this form of energy in the understanding of the provisions of
    the Power Industry Act of 10 April 1997 (Journal of Laws of 2006, No 89(625), as
    amended4));
20) losses of excise goods – all losses:
    a) of excise goods, defined in Annex 2 of the Act, subject to an excise duty rate other
        than zero duty, which arose whilst applying the duty suspension arrangement, with the
        exception of losses arising during the production of energy products or tobacco
        products,
    b) of alcoholic drinks relieved of excise duty in the light of their purpose;
21) sales – each factual or legal activity, as a result of which the transfer of the holding or
    ownership of the object of sale to another entity takes place;
22) consuming entity – an entity whose place of residence, registered office or business
    activity is located in Poland, and who uses goods relieved of excise duty for purposes
    which give it the right to relief, and in the case of energy products relieved of excise duty
    because of their purpose, referred to in Article 27(1)(1) and (2), and an entity whose place
    of residence, registered office or business activity is not located in Poland, is in possession
    of a flying machine or sailing unit and which acquires these energy products – if the start
    of the use of these energy products for operating the flying machine or sailing unit takes
    place in Poland;
23) intermediary entity – an entity whose registered office or place of residence is in Poland,
    other than the entity managing the tax warehouse to whom a permit has been issued for
    activities relating to the supply of goods relieved of excise duty because of their purpose,
    from the tax warehouse in Poland to the using entity, and in the case of excise goods,
    referred to in Article 27(1)(1–3), also originating from import.

    Article 3. 1. For the purposes of charging excise duty and marking excise goods with
excise marks, application is made of classification in the Combined Nomenclature (CN), in
keeping with Council Regulation (EEC) No 2658/87 of 23 July 1987 on the tariff and
statistical nomenclature and on the Common Customs Tariff (OJ 1987 L 256 of 7 September
1987, p. l, as amended; OJ Special Polish Edition, Charter 2, v. 2, p. 382, as amended).
    2. Changes in the Combined Nomenclature (CN) do not lead to changes in excise duty on
excise goods and passenger cars, if these have not been defined under this Act.

   Article 4. Concerning procedure relating to matters arising from the provisions of this Act
application is made of the provisions of the Tax Regulation Act of 29 August 1997 (Journal of
Laws of 2005, No 8(60), as amended5)), unless the provisions of this Act constitute otherwise.
                                           Section II

                                  Excise duty on excise goods

                                          Chapter 1
                          The object of duty and fiscal responsibility

     Article 5. 1. The object of an excise duty is as follows:
1)   production of excise goods;
2)   introduction of excise goods into the tax warehouse;
3)   import of excise goods;
4)   intra-Community acquisition of excise goods, with the exclusion of intra-Community
     acquisition for the tax warehouse;
                                                4

5) transfer out of the tax warehouse, beyond the suspension arrangements for excise duties
   procedure, of excise goods which are not the property of the entity managing the tax
   warehouse, with the exclusion of goods relieved of excise duty because of their purpose,
   by the entity, referred to in Article 9(4).
   2. The object of the excise duty, with reservation to (4), is also as follows:
1) the use of excise goods which have been relieved of excise duties because of their purpose
   or are given a specific excise duty rate because of their purpose, providing their use:
   a) did not comply with the purpose giving the right to excise relief or the application of
      this excise duty rate or
   b) took place without retaining conditions authorising the application of this excise duty
      rate;
2) the supply of excise goods which have been relieved of excise duties because of their
   purpose, if this took place without retaining conditions authorising the application of
   excise relief;
3) the sale of excise goods which are beyond the suspension arrangements for excise duties
   procedure, subject to a given excise duty rate because of their purpose, if their sale took
   place without retaining conditions authorising the application of this excise duty rate;
4) the acquisition or holding of excise goods which are beyond the suspension arrangements
   for excise duties procedure, if the due amount of duty has not been paid on these goods
   and, as a result of tax inspection, audit procedure, or tax procedure the above cannot be
   established.
   3. The object of excise duty also concerns losses of excise goods.
   4. The object of excise duty also concerns the use of:
1) objects of excise duty, referred to in Article 85(2), for the production of other goods;
2) alcoholic drinks, referred to in Article 27(3)(3), by the using entity.
    5. The object of the excise duty also concerns the sale or the offering for sale of cigarettes
or tobacco for smoking beyond the suspension arrangements for excise duties procedure, with
payment above the maximum retail price, but in connection with other goods or another
service or in connection with the granting to the acquirer of a free bonus in the form of other
goods or services.
    6. If a tax liability has arisen in connection with excise goods as a result of one of the
activities, referred to in (1), being carried out, there is no tax liability in connection with
another activity being subject to excise duty, providing that the amount of duty, following the
procedure on suspension arrangements for excise duties, has been defined or declared in
keeping with the amount due, unless the provisions of the Act constitute otherwise.
    7. Activities or the actual state, referred to in (1–5), are the object of excise duty
irrespective of whether they were performed or arose with the retention of conditions and
forms defined by the provisions of the law.

   Article 6. 1. Concerning electricity the object of excise duty is:
1) intra-Community acquisition of electricity by the final purchaser;
2) the sale of electricity, including the sale of electricity by an entity not holding a
   concession, referred to in point (3), who had produced this energy, to the final purchaser
   in Poland;
3) the consumption of electricity by an entity holding a concession to transmit, distribute, or
   trade this form of energy in the understanding of the Power Industry Act of 10 April 1997;
                                                 5

4) the consumption of electricity by an entity not holding a concession, referred to in point
   (3), who had produced this energy;
5) the import of electricity by the final purchaser;
6) the consumption of electricity by the final purchaser, if the due amount of duty has not
   been paid on it and it is not possible to determine the entity who had sold this electricity to
   the final purchaser.
   2. Losses arising from the transmission or distribution of electricity, with the exclusion of
energy used in connection with its transmission or distribution, are not recognised as
consumption of electricity.
   3. Activities, referred to in (1), are the object of excise duty irrespective of whether they
were performed with the retention of conditions and forms defined by the provisions of the
law.

     Article 7. 1. Tax liability arises on the day that the activity is carried out or when a
situation arises subject to excise duty, unless the provisions of the Act constitute otherwise.
   2. Tax liability on the import of excise goods arises on the day:
1) that a customs debt arises in the understanding of the provisions of customs law or
2) that excise goods come under suspensive duty arrangement under the understanding of the
   provisions of customs law.
    3. Tax liability on intra-Community acquisition of excise goods by a registered trader or
unregistered trader arises on the day on which the excise goods are introduced to the place of
receipt of excise goods, defined under the appropriate permit.
    4. Tax liability on the intra-Community acquisition of goods with duty paid, performed
for the needs of taxpayer business activities conducted in Poland, arises on the day that the
taxpayer receives the excise goods, but not later than on the 7th day, starting from the day of
the dispatch, defined in the simplified accompanying document.
    5. Tax liability on the intra-Community acquisition of excise goods, other than those
defined in Annex 2 to the Act, with an excise duty rate other than zero duty, arises on the day
that the taxpayer receives these goods.
    6. Tax liability arising from a natural person acquiring intra-Community goods with duty
paid, earmarked for trade purposes, referred to in Article 33, arises on the day that the goods
are moved in Poland.
    7. Tax liability on intra-Community acquisition of goods with duty paid, performed
through the mediation of a tax representative, referred to in Article 75(1), arises on the day
that the recipient obtains the excise goods in Poland.
    8. Tax liability arising from the sale of excise goods, referred to in Article 5(2)(3) and (5),
arises on the day that the goods are released to the person acquiring them.
    9. If the sale, referred to in Article 5(2)(3), requires confirmation in the form of an
invoice, a tax liability arises when the invoice is issued, but not later than on the 7th day,
starting from the day the excise goods are released.
    10. Tax liability arising from the acquisition or holding of excise goods, referred to in
Article 5(2)(4), arises on the day that these goods are acquired or become someone‟s property,
with reservation to (12).
    11. If it is not possible to define the day on which the tax liability arose as a result of an
activity or a situation subject to excise duty taking place, it is decided that the date on which it
                                                6

arose is the day on which the authorised tax administration or tax investigation authority notes
that the given activity has been performed or the given situation has arisen.
    12. Concerning government bodies which came into the possession of excise goods
defined under Article 5(2)(4), subject under separate provisions to activities, defined in the
provisions on administrative enforcement proceedings, carried out by these bodies, tax
liabilities arises on the day that they consume or sell these goods.

   Article 8. 1. Concerning electricity, the tax liability starts on the day of:
1) the intra-Community acquisition of electricity by the final purchaser;
2) issuing energy to the final purchaser, concerning the sale of electricity in Poland;
3) the consumption of electricity in cases referred to in Article 6(1)(3), (4) and (6) a customs
   debt arising, concerning the import of electricity by the final purchaser.
    2. If it is not possible to define the day on which the tax liability arose, it is decided that
the date on which it arose is the day on which the authorised tax administration or tax
investigation authority noted that the given activity had been performed, referred to in Article
6(1).




                                           Chapter 2

                                    Excise duty payer.
                              Competence of the tax authorities

    Article 9. 1. The excise duty payer, hereinafter referred to as the “duty payer”, is a
natural person, a legal entity, and an organisational unit with legal personality, which
performs activities subject to excise duty or towards which a situation has arisen subject to
excise duty.
   2. The duty payer is in particular an entity which:
1) acquires or holds excise goods which are beyond the suspension arrangements for an
   excise duties procedure, if the due amount of duty has not been paid on these goods and,
   as a result of tax inspection, audit procedure, or tax procedure the above cannot be
   established;
2) is the final purchaser consuming electricity, if the due amount of duty has not been paid
   on it and it is not possible to determine the entity who had sold this electricity to the final
   purchaser.
3) has losses of excise goods, also if it is not the owner of these excise goods;
4) is a tax representative;
5) is a registered trader – concerning intra-Community acquisition of excise goods for a third
   party.
    3. The duty payer is also an entity that is not an importer, but that has the obligation to pay
duties.
   4. The duty payer arising from the transfer out of the tax warehouse, outside the
suspension arrangements for excise duties procedures, of excise goods which are not the
property of the entity managing the tax warehouse, is the entity which is the owner of these
                                               7

goods, who received from the competent customs office manager, a permit to bring ,as a duty
payer, excise goods from someone else‟s tax warehouse beyond the suspension arrangements
for excise duties procedure, referred to in Article 52(1).
    5. If a number of duty payers have the obligation to pay duties as a result of an activity or
a situation taking place, referred to in Article 5(1)(3) and (2), (3) and (5), whose subjects are
the same excise goods, the payment of duty relating to these goods by one of these payers
causes the expiry of the tax commitment of the remaining payers.
    6. The duty payer, in the event of intra-Community acquisition of electricity by the final
purchaser from a foreign entity whose place of residence, registered office, or permanent
business activity is not located in Poland, is the representing entity, appointed by the foreign
entity.
    7. The representing entity may only be an entity with registered office in Poland, which
meets the conditions, referred to under Article 46(1)(2–4), and which had submitted a
registration application.
    8. The representing entity must submit the registration application to the competent
customs office manager, in keeping with Article 12. The registration notice must also indicate
the foreign entity represented by the representing entity.
    9. The competent customs office manager refuses to accept the registration application of
the representing entity which fails to meet the conditions, referred to in Article 46(1)(2–4)
    10. The final purchaser must send copies of invoices, referred to in Article 19(1), to the
representing entity within 14 days of receiving them.
    11. In the event of a representing entity not being designated, the competent customs
office manager refusing to accept the registration application of the representing entity or
failure on the part of the final purchaser to send on time to the representing entity copies of
invoices, referred to in Article 19(1), the duty payer will be the final purchaser who had
carried out the intra-Community acquisition of electricity.

    Article 10. 1. The competent tax authorities on duties are the customs office manager, the
director of the customs chamber and the competent Minister of Public Finances.
    2. Tasks concerning excise duties in Poland are carried out appropriately by customs
office managers and directors of customs chambers designated by the competent Minister of
Public Finances.
   3. The area of jurisdiction of the customs office managers and directors of customs
chambers is determined in keeping with the place of activity or where the situation subject to
excise duty took place, with reservation to (4), (5) and (7–12).
    4. If activities subject to excise duty are performed or situations subject to excise duty
arise in the area of jurisdiction of two or more tax authorities, the area of jurisdiction, with
reservation to (5), is as follows:
1) for legal persons and organisational units without legal personality – the address of their
    registered office;
2) for natural persons – their residential address.
   5. Concerning the following situations:
1) determining the standards of permissible losses of excise goods or permissible standards
   of consumption of excise goods,
                                               8

2) the documenting of the carriage of excise goods with the application of the administrative
   accompanying document and the inclusion in this document of information on the carried
   out control,
3) notifying the customs office manager through the entity managing the tax warehouse
   about the intention to move the excise goods from the tax warehouse,
4) determining the level of use of excise security prior to its application
– the area of jurisdiction is determined in keeping with the place of activity subject to excise
duty or the occurrence of situations subject to excise duty, connected with activities, referred
to in points (1–4).
    6. Concerning the situation, referred to in (4), on the application of the competent customs
office manager or competent customs chamber director, the following activities indicated in
the application: checking, tax inspections or tax procedures are carried out respectively by the
customs office manager or the customs chamber director, in whose area of jurisdiction
activities are carried out which are subject to excise duty or where situations subject to excise
duty arise.
    7. Concerning import, the competent tax authorities on duties are the customs office
manager and the director of the customs chamber, competent, in keeping with the provisions
of customs law, to calculate and book import duty amounts arising from customs debt.
    8. For natural persons who engage in intra-Community acquisition, with the exception of
intra-Community acquisition within their business activities, the competent tax authorities on
duties in terms of area of jurisdiction are the customs office manager and the director of the
customs chamber, appropriate to the residential addresses of these people.
    9. The competent tax authorities on the reimbursement of duties, referred to in Article
40(3) and Article 78(1) and (2), are the customs office manager and the director of the
customs chamber, at whose offices excise duty was settled and paid.
   10. If it is not possible to determine jurisdiction in keeping with (3–5) and (7–9), the
competent authority is the Manager of Customs Office I in Warsaw and the Director of the
Customs Chamber in Warsaw.
    11. The competent authorities for excise marks are the customs office manager and the
director of the customs chamber, designated by the competent Minister of Public Finances,
hereinafter referred to respectively as the “competent customs office manager for excise
marks” and the “competent director of the customs chamber for excise marks”, whose area of
jurisdiction is determined in keeping with the registered office or residential address of the
entity with the obligation to mark excise goods with excise marks.
    12. If it is not possible to determine jurisdiction in keeping with (11), the competent
customs office manager for excise marks and the competent director of the customs chamber
for excise marks is the Manager of Customs Office II in Warsaw and the Director of the
Customs Chamber in Warsaw.
    13. The competent Minister of Public Finances defines, by way of Regulation, the list of
customs offices and customs chambers, whose managers and directors are respectively
competent to perform tasks relating to excise duties in Poland, as well as the territorial scope
of their areas of operation, with consideration to the number of duty payers engaged in
business activities in the given area.
    14. The competent Minister of Public Finances defines, by way of Regulation, the list of
customs offices and customs chambers, whose managers and directors are respectively
competent in matters related to excise marks, as well as the territorial scope of their areas of
                                                9

operation, taking into account the territorial distribution of entities with the obligation to mark
excise goods with excise marks.

                                           Chapter 3

                        Excise duty administrative cooperation units.
                                   Registration of entities

    Article 11. 1. The administrative cooperation unit in the field of excise duties is the Excise
Liaison Office (ELO), located in the office of the competent Minister of Public Finances,
which performs excise duty administrative cooperation tasks, referred to in Council
Regulation (EC) No 2073/2004 of 16 November 2004 on administrative cooperation in the
field of excise duties (OJ L 359 of 4 December 2004, p. 1).
    2. The competent Minister of Public Finances may also designate, by way of Regulation, a
different unit for administrative cooperation in the field of excise duties, defined in the
Regulation, referred to in (1), by defining its scope of duty as well as the principles of its
cooperation with tax authorities on duties.

    Article 12. 1. The entity engaged in business activities must, prior to the day of
performing the first activity subject to excise duty or the first activity with the use of goods
relieved of excise duty because of their purpose, submit a registration application to the
competent customs office manager. The registration application contains data related to this
entity and to the business activity it engages in, in particular the name and surname or the
name of the entity, its registered address or residential address and a description of the type of
business activities performed, and in the case of business activities with the use of goods
relieved of excise duty – also the addresses of the business activities performed and a
description of the type and anticipated average monthly quantity of consumed excise goods.
    2. The competent customs office manager confirms in writing acceptance of the
registration application.
   3. If data contained in the registration application changes, the entity must notify the
changes to the competent customs office manager within a period of 7 days, starting from the
day on which the changes took place.
   4. (1) does not apply to entities engaged in business activities in the field of excise goods
exclusively with a zero excise duty rate, with reservation to (7).
    5. In the event of change of the zero excise duty rate to a different excise duty rate the
registration application, referred to in (1), is submitted within 14 days from the day of
changing the rate.
    6. The provisions of (1–5) do not apply to entities engaged in business activities with the
use of excise goods relieved of excise duty because of their purpose, and which do not have a
registered office, residential address or location of business activity in Poland.
    7. An entity intending to engage in business activities in the field of energy products,
referred to in Article 85(2), which is not an entity registered in keeping with (1), must, prior to
the day on which this business activity commences, inform the competent customs office
manager of such fact, with the purpose of determining the permissible standards of
consumption, referred to in Article 81(2)(2).
                                                10

    Article 13. 1. The competent customs office manager keeps the register of entities,
referred to in Article 12(1). The register contains data appearing in the registration application
of these entities.
    2. Upon application of the interested entity, the competent customs office manager must
issue a certificate stating whether the given entity is a registered entity. The interested entity
may be the registered entity itself as well as another entity with legal interest in obtaining
information on registration.
   3. The competent Minister of Public Finances keeps records in electronic form which
contain:
1) identification data of entities managing tax warehouses, registered traders and
   intermediaries, their registered office address or their residential address and their e-mail
   addresses;
2) a description of the type of business activities of the entities, referred to in point (1), and a
   description of the type of excise goods belonging to this type of business activity;
3) the addresses at which the tax warehouses are located, the place of collection of excise
   goods by registered traders and the places where intermediaries perform their activities,
   together with their e-mails;
4) excise numbers of tax warehouses, entities managing tax warehouses, registered traders
   and intermediary numbers.
    4. Data from records, referred to in (3)(4), are confirmed on application of the interested
entities or made available to the competent authorities of the Member States of the European
Community.

   Article 14. 1. If an entity no longer performs activities, referred to in Article 12(1), it must
submit a notice within 7 days to the competent customs office manager indicating that it no
longer performs these activities.
    2. In the event of taking over the rights and obligations of the registered entity on the basis
of separate provisions and ceasing to engage in business activities, the notice that business
activities have ceased is made by the legal successor of the registered entity or other persons,
who took over the rights and obligations, within the deadline referred to in (1).
    3. The notice, referred to in (1) and (2), constitutes the basis for deleting the entity from
the register by the competent customs office manager. In the event of a failure to submit the
notices in keeping with (1) and (2), the competent customs office manager, who had made the
registration, ex officio deletes the registered entity from the register.
    4. The competent customs office manager informs the following that an entity has been
deleted from the register:
1) the registered entity, unless as a result of inspections it turns out that the entity does not
   exist;
2) the Agency for Material Reserve, in the case of registered entities with the obligation to
   create and maintain obligatory supplies of oil or fuels on the strength of the provisions of
   the Oil Supplies, Oil Products, Natural Gas and the Principles of Procedure in Situations
   of Threat to the Fuel Security of the State and Disruptions on the Oil Market Act of
   16 February 2007 (Journal of Laws, No 52(343) and of 2008, No 157(976)).
   5. The provisions of (1) and (3) apply appropriately in the event of change of the excise
duty rate to a zero excise duty rate.
                                               11

     Article 15. The competent Minister of Public Finances defines, by way of Regulation, the
model registration application, the model acknowledgement of acceptance of the registration
application and the model notices, referred to in Article 14(1) and (2), and takes into account
the need to ensure that the tax administration receives information about the payer or entities
performing activities with the use of excise goods.

                                          Chapter 4

                                        Tax returns.
                               Excise duty payment deadlines

      Article 16. 1. The duty payer must perform the following, without being instructed by
the tax administration:
1) submit, to the corresponding customs office, excise returns, hereinafter referred to as “tax
   returns”, in keeping with the following model,
2) calculate and pay the excise duties into the account of the corresponding customs chamber
– for the monthly settlement periods, by the 25th day of the month following the month, in
which tax liability arose, unless the detailed provisions constitute otherwise.
   2. In the event of application of the duty suspension arrangement, the duty payer must,
without being instructed by the tax administration:
1) submit, to the corresponding customs office, tax returns, in keeping with the following
   model,
2) calculate and pay the excise duty into the account of the corresponding customs chamber
– for the monthly settlement periods, by the 25th day of the month following the month, in
which the procedure on suspension arrangements for excise duties ceased, leading to fiscal
responsibility.
   3. The provisions of (1) and (2) do not apply:
1) to the scope of the payer‟s obligation to submit simplified returns, calculations and
   payments of excise duty, referred to in Article 59(2)(3) and Article 74(1)(3);
2) to the scope of the payer‟s obligation to submit returns, calculations and payments of
   excise duty on electricity, referred to in Article 19;
3) to entities engaged in business activities relating to excise goods subject to a zero excise
   duty rate or goods relieved of excise duty, with the exception of partial relief or relief by
   means of a duty refund or a refund of losses, referred to in Article 25(7);
4) to the import of excise goods, referred to in Articles 22–24.
    4. The duty payer, referred to in Article 9(4), must send a copy of the submitted tax return
within a period of three days of it being submitted, to the customs office manager
corresponding to the entity managing the tax warehouse, from which the excise goods were
moved beyond the suspension arrangements for the excise duties procedure.
    5. Tax commitment stems from the amount indicated in the tax return or the simplified
return, unless the tax administration or tax investigation authority determines a different level
of commitment.
   6. The entity managing the tax warehouse must, without being instructed by the tax
administration, by the 25th day of the following month after the monthly settlement period,
submit to the corresponding customs office, information on excise goods at the tax
warehouse, according to the determined model, containing data, referred to in Article 51(4).
                                              12

   7. With reservation to Article 18(4) and Article 22(2), the excise duty amount is reduced
by the amount constituting the value of duty excise marks correctly introduced into excise
goods or pre-packed excise goods, but not earlier than – in the case of:
1) marking excise goods with excise marks at the tax warehouse in Poland – the day
   following the placing of these marks on the given excise goods or pre-packed goods;
2) producing excise goods, referred to in Article 45(1)(1), (2), (4) or (5) – following the
   occurrence of fiscal responsibility;
3) intra-Community acquisition by the entity managing the tax warehouse of excise goods
   with excise marks in a Member State – the day following the introduction of excise goods
   to the tax warehouse in Poland;
4) a registered trader – the day following the occurrence of fiscal responsibility;
5) an unregistered trader – following the occurrence of fiscal responsibility;
6) a duty payer who acquires within the Community excise goods with duty paid in a
   Member State for the needs of the performed business activity – following the occurrence
   of fiscal responsibility;
7) excise goods being marked with excise marks by the owner of the excise goods, referred
   to in Article 9(4) – the day following the occurrence of fiscal responsibility.
   8. The excise duty amount due on given excise goods produced at the tax warehouse or
beyond the tax warehouse, in keeping with Article 45(1)(1), may be reduced by the excise
duty paid on other excise goods used for producing them.
    9. Concerning losses on excise goods exceeding the standards of permissible losses,
referred to in Article 81(1)(1) and (2)(1)(a), the duty payer must, without being instructed by
the tax administration, submit the tax return, calculate and pay the excise duty for the daily
settlement period, by the 25th day of the month following the month in which the loss arose.
    Article 17. 1. With reservation to Article 45(1)(1–4) and (6), in the event of production of
excise goods taking place outside the tax warehouse, referred to in Annex 2 of the Act, and of
excise goods other than the ones defined in Annex 2 to the Act, with an excise duty rate other
than zero, the producer must, without being instructed by the tax administration:
1) submit, to the corresponding customs office, the excise duty advance payment tax return,
   in keeping with the determined model,
2) calculate and pay the excise duty advance payment into the account of the corresponding
   customs chamber, covering the excise amount to be paid on excise goods produced in the
   given month,
– for the monthly settlement periods, by the last day of the month preceding the month in
which the excise goods will be produced.
    2. The excise duty advance payment is recognised as payment towards excise duty due for
the settlement month, referred to in (1).
    3. The excise duty advance payment is taken into account in the tax return, referred to in
Article 16(1)(1).4. In the event of the paid excise duty advance payment being less than the
due amount for the settlement month, to which the excise duty advance payment refers,
interest is owed on this difference for tax in arrears, for the period from the last day of the
month preceding the month, in which the excise goods were produced, up to the day on which
the due excise duty amount for these goods should be paid. The provisions on tax in arrears
apply appropriately.
    5. In the event of the paid excise duty advance payment being higher than the due amount
for the settlement month, to which the excise duty advance payment refers, the excise duty
                                               13

advance payment indicated in the tax return, referred to in Article 16(1)(1), is settled when
making excise duty advance payments in future settlement periods, if the duty payer is not in
arrears in payments and in current tax commitments and does not submit an application to
include the advance payment in entirety or in part towards future tax commitments.

    Article 18. 1. Registered traders, entities managing tax warehouses and duty payers,
referred to in Article 9(4), must, without being instructed by the tax administration, calculate
and pay preliminary excise duty for daily periods, into the account of the corresponding
customs chamber.
    2. Preliminary excise duty payments for daily periods, hereinafter referred to as “daily
payments”, are made at the latest on the 25th day after the day on which the tax liability arose,
and in the case of an entity managing a tax warehouse – the day after the suspension
arrangements for excise duties ceased and tax commitment arose.
    3. Daily payments made for the settlement month are taken into account in the tax returns,
referred to in Article 16(1)(1) or (2)(1).
   4. Daily payments are reduced to include:
1) the amount constituting the value of duty excise marks correctly introduced into excise
   goods or pre-packed excise goods; reduction can take place not earlier than:
   a) concerning marking excise goods with excise marks at the tax warehouse in Poland –
      the day following the placing of these marks on the given excise goods or pre-packed
      goods,
   b) concerning intra-Community acquisition by the entity managing the tax warehouse of
      excise goods with excise marks in a Member State – the day following the
      introduction of excise goods to the tax warehouse in Poland,
   c) concerning a registered trader – the day following the occurrence of fiscal
      responsibility,
   d) concerning excise goods being marked with excise marks by the owner of the excise
      goods, referred to in Article 9(4) – the day following the occurrence of fiscal
      responsibility;
2) relief and reduction in excise duty amounts to which the duty payer is eligible.
     5. Advance payment of daily payments indicated in the tax returns, referred to in Article
16(1)(1) or (2)(1), is settled when making daily payments for subsequent settlement periods,
if the duty payer is not in arrears in payments and in current tax commitments and does not
submit an application to include the advance payment in entirety or in part towards future tax
commitments.
   6. Daily payments constitute an advance excise duty payment.

      Article 19. Concerning electricity the duty payer must, without being instructed by the
tax administration, submit, to the corresponding customs office, tax returns, in keeping with
the following model, and calculate and pay the excise duty into the account of the
corresponding customs chamber, by the 25th day of the month following the month in which:
1) in the event of intra-Community acquisition of electricity by the final purchaser – the
    payment deadline according to the invoice has expired, and if this deadline has not been
    defined – after the month in which the invoice was issued;
2) concerning the sale of electricity to the final purchaser in Poland – the payment deadline
    defined in the agreement corresponding to settlements for the supply of electricity has
    expired or, if the deadline has not been defined under the agreement – the payment
                                               14

   deadline according to the invoice has expired, and if this deadline has not been defined in
   the agreement or the invoice – after the month in which the invoice was issued;
3) in cases referred to in Article 6(1)(3), (4) and (6) – the consumption of electricity has
   taken place.

    Article 20. 1. In the event of submitting a tax return and payment of excise duty, referred
to in Article 19(1) or (2), for a period of more than two months, the duty payer holding a
concession to produce, transmit, distribute or trade electricity in the understanding of the
provisions of the Power Industry Act of 10 April 1997 and the representing entity must,
without being instructed by the tax administration, calculate and pay preliminary excise duty
for monthly periods, into the account of the corresponding customs chamber, on the basis of
estimates against records, referred to in Article 87.
    2. Preliminary excise duty payments for monthly periods, hereinafter referred to as
“monthly payments”, are carried by the 25th day of the month following the month, in which
tax liability arose as a result of activities, referred to in Article 6(1)(1) and (2).
    3. The representing entity must obtain information about the amount of electricity sent to
the final purchaser from the entity supplying this electricity.
   4. Monthly payments are taken into account in the tax returns, referred to in Article 19.
    5. Monthly payments are reduced by relief and reduction in excise duty amounts to which
the duty payer is eligible.
    6. Advance payment of monthly payments indicated in the tax returns, referred to in
Article 19(1)(1) or (2), is settled when making monthly payments for subsequent settlement
periods, if the duty payer is not in arrears in payments and in current tax commitments and
does not submit an application to include the advance payment in entirety or in part towards
future tax commitments.
   7. Monthly payments constitute an advance excise duty payment.

    Article 21. 1. The competent Minister of Public Finances defines, by way of Regulation,
models of tax returns, excise duty advance payment tax returns and information on excise
goods at the tax warehouse, and includes explanations as to the appropriate manner of
submitting these declarations and information, information on deadlines and where to submit
declarations, a caution to the duty payer indicating that the tax returns constitute the basis for
issuing enforceable titles, and guarantees the possibility of correctly calculating the level of
excise duty.
   2. The competent Minister of Public Finances may define, by way of Regulation:
1) the detailed manner or conditions of carrying out excise duty settlements, in particular in
   cases of lowering the excise duty amount by the amount paid in the purchase price of
   excise goods used for the production of other excise goods,
2) longer settlement periods, deadlines for submitting returns or paying excise duties than
   those mentioned in Article 16(1), (2) and (9) and Article 18(2) and Article 19
– in consideration of the principle of single excise duty, the frequency of excise duty fiscal
responsibility and the need to ensure correct performance of fiscal responsibility and payment
of the excise duty.
                                             15



                                       Chapter 5
                                Procedure in case of import

     Article 22. 1. Concerning imports, the duty payer must calculate and indicate the excise
duty amount in the customs declaration, taking into account binding excise duty rates, with
reservation to (3).
    2. The excise duty amount to be paid on the import of excise goods is reduced by the
value of duty excise marks correctly introduced into excise goods or pre-packed excise goods,
covered by the customs declaration.
     3. In the event of imported excise goods coming under suspension arrangements for
excise duties procedures or in the event of the import of excise goods coming under excise
duty relief because of their purpose, the duty payer must include in the customs declaration
information on the excise duty amount, which would have been due had the excise goods not
been covered by suspension arrangements for excise duties procedure or excise duty relief.
    4. If the competent customs office manager notes that in the customs declaration the
excise duty amount is incorrect, he issues a decision defining the correct excise duty amount.
The competent customs office manager may define the excise duty amount in the decision on
import duty amounts.
   5. Once the customs declaration has been accepted, the duty payer may apply to the
competent customs office manager, requesting the issue of a decision defining the excise duty
amount.
    6. In the event of amounts arising other than those defined under (1), (4), and (5), the
competent customs office manager defines the excise duty amount arising from the import of
excise goods by way of decision.
     7. In the event of the excise duty amount being defined in the decision of the customs
office manager the duty payer must, within a period of 10 days, starting from the day of
delivery of this decision, pay the difference between excise duty stemming from this decision
and the excise duty collected by this authority, together with due interest for payment in
arrears.

    Article 23. 1. Concerning matters not regulated by law, in relation to deadlines and the
method by which the excise duty is paid from imports, application is made respectively of the
provisions of customs law on the deadlines and manner of paying duty amounts, with the
exception of provisions concerning the extension of the payment deadline, deferment of the
payment deadline and other payment facilities defined by these provisions.
     2. The duty payer must also pay an excise duty when the excise goods have been relieved
of import duty amounts or duty rates have been suspended or reduced to the zero duty rate.
    3. The competent customs office manager secures the excise duty amount if it has not
been paid, under the circumstances and in the manner applied when safeguarding duty
amounts on the basis of the provisions of customs law, with the exception of those cases when
excise goods are covered by the suspension arrangements for excise duties procedures and the
excise duty security has been placed.

    Article 24 If, in keeping with the provisions of customs law, notice of the level of a
debtor‟s customs debt cannot be made because of limitation, but the basis exists to calculate
or check the due amount of duty, the competent customs office manager may define the rules
                                              16

of assessment in keeping with principles defined under the provisions of customs law for the
needs of correctly defining the excise duty amount arising from import.

                                          Chapter 6
                                         Exemptions

        Article 25. 1. Electricity generated from renewable sources of energy is exempt from
excise duty, on the basis of a document confirming discontinuation of the certification of
origin of energy, in the understanding of the provisions of energy law.
   2. The exemption, referred to in (1), is applied no sooner than the moment the document
confirming discontinuation of the certification of origin of energy is received, by reducing the
excise duty on electricity for the nearest settlement periods.
   3. Coal and coke, falling within CN codes 2701, 2702 and 2704 00, designated for heating
purposes, are exempt from excise duty up to 1 January 2012.
    4. (Wet) natural gas, falling within CN codes 2711 11 00 and 2711 21 00, designated for
fuel oils, is exempt from excise duty up to 31 October 2013, or up to the time that the share of
natural gas in the consumption of energy in Poland attains 25%. However, when the share of
natural gas in the consumption of energy attains 20%, application is made, up to
31 October 2013, of an excise duty rate of 50% of the rate defined under Article 85(1)(13).
The competent Minister of Public Finances notifies, by way of Notice in the Official Gazette
of the Republic of Poland “Monitor Polski”, information on the attainment of the level of
natural gas share, referred to in the first sentence.
    5. The remaining gas hydrocarbons, falling within CN codes 2711 29 00, designated for
fuel oils, are exempt from excise duty up to time that the exemption remains binding.
   6. Excise goods, referred to in Article 85(1)(15)(b), are exempt from excise duty up to
time that the exemption remains binding, referred to in (4).
    7. Losses of excise goods arising from unforeseeable circumstances or force majeure are
exempt from excise duty, on condition that the duty payer demonstrates that there are
circumstances authorising exemption.
   8. Losses of excise goods up to the amount determined for the given entity by the
competent customs office manager, pursuant to Article 81(1)(1) or (2)(1)(a) are exempt from
excise duty.
   9. The exemption, referred to in (7) and (8), does not apply to losses arising as a result of
crimes committed against property.
   10. The consumption of electricity whilst producing electricity, as well as the
consumption of this form of energy with the purpose of maintaining these production
processes, is exempt from excise duty.
   11. Consumption for navigation purposes, including fishing transport, of electricity
generated on board, is exempt from excise duty.
   12. Undenatured ethyl is exempt from excise duty:
1) completely denatured, imported, intra-Community acquired, or produced in Poland with
   the use of ethyl alcohol which has been completely denatured, indicated by any one of the
   Member States of the European Community, in accordance with Commission Regulation
   (EC) No 3199/93 of 22 November 1993 on the mutual recognition of procedures for the
                                               17

     complete denaturing of alcohol for the purposes of exemption from excise duty, and included
     in goods not for human consumption;
2)   contained in intra-Community acquired goods not for human consumption, denatured with
     the use of contaminants derived from the goods, permitted by the Member States of the
     European Community;
3)   contained in imported goods not for human consumption, denatured with the use of
     contaminants, referred to in Article 27(3)(2);
4)   contained in medicinal products in the understanding of the provisions of the
     Pharmaceutical Act of 6 September 2001 (Journal of Laws of 2008, No 45(271);
5)   contained in essential oils or mixtures of odoriferous substances, used for the preparation
     of human foodstuffs and non alcoholic beverages with actual alcoholic strength by volume
     of not more than 1.2% volume;
6)   contained in human foodstuffs or intermediates, referred to in Article 27(3)(3)(d).

     Article 26. 1. Activities subject to excise duty paid to the institutions of the European
Communities are exempt from excise duty, providing this stems from international
agreements or reciprocity, as well as the following institutions: international organisations,
diplomatic representations, consular offices and members of staff of these representations and
offices, as well as other similar persons on the basis of acts, agreements or international
customs, if they are not Polish citizens and do not have permanent residence in Poland.
     2. Exemption from excise duty is offered, if this stems from international agreements, on
activities subject to excise duty, whose subject are goods excise goods designated for the
armed forces of States-Parties of the North Atlantic Treaty Organisation, the armed forces of
participants in the Partnership for Peace and the Headquarters of the Multinational Corps
Northeast and its Members of Staff and allied commands, in particular the Joint Forces
Training Centre and its Members of Staff.
    3. Exemptions, referred to in (2), do not apply to the Armed Forces of the Republic of
Poland.
   4. Exemptions, referred to in (1) and (2), may also involve reimbursement of the paid
excise amount by the designated customs office manager.
   5. In the event of excise duty exemption involving the reimbursement of the paid excise
amount, the designated customs office manager defines, by way of decision, the amount of
excise duty to be reimbursed.
     6. The competent Minister of Public Finances, by way of Regulation:
1) defines the detailed scope, conditions and manner of applying excise duty relief, referred
   to in (1) and (2),
2) appoints the competent customs office managers for the reimbursement of paid excise
   duty amounts.
– taking into account the need for the effective functioning of excise duty relief, the need to
guarantee appropriate inspections and the need to guarantee information flow on goods
exempt from excise duty.

   Article 27. 1. The following excise goods are exempt from excise duty because of their
purpose:
1) goods used for flying machines: aviation gasoline, falling within CN code 2710 11 31,
   gasoline type jet fuel, falling within CN codes 2710 11 70 and jet fuel, falling within CN
   code 2710 19 21 or aviation lubricating oils – concerning cases, referred to in (2), if the
                                                18

   conditions are met, referred to in (4–12), and if, in cases, referred to in (2)(1), (3–5), (7) or
   (8), the entity consuming them holds a flying machine; exemptions do not apply to private
   flights of a recreational nature, which involve the use of the flying machine by its owner
   or another natural person, a legal person or an organisational unit without legal
   personality, who use it on the strength of a lease agreement or similar agreement, for
   purposes other than those relating to business, in particular other than the transport of
   passengers and goods or the rendering of services for remuneration or services for the
   public authorities;
2) those used for navigation purposes, including fishing transport, lubricating oils, falling
   within CN code 2710 11 81, diesel fuel and fuel oil – concerning cases, referred to in (2),
   if the conditions are met, referred to in (4-12) and if, in cases, referred to in (2)(1), (3–5),
   (7), or (8), the entity consuming them holds a sailing unit; exemptions do not apply to
   private flights of a recreational nature, which involve the use of the sailing unit by its
   owner or another natural person, a legal person or an organisational unit without legal
   personality, who use it on the strength of a lease agreement or similar agreement, for
   purposes other than those relating to business, in particular other than the transport of
   passengers and goods or the rendering of services for remuneration or services for the
   public authorities;
3) those used for fuel purposes, remaining gas hydrocarbons falling within CN codes from
   2711 12 11 to 2711 19 00 – in cases, referred to in (2), if the conditions are met, referred
   to in (4-12).
     2. Goods, referred to in (1), are made exempt from excise duty exclusively if they are:
1)   supplied from the tax warehouse in Poland to the using entity or
2)   supplied from the tax warehouse in Poland to the intermediary or
3)   supplied from the intermediary to the using entity, or
4)   obtained through intra-Community acquisition by the registered trader with the purpose of
     being consumed by it as the using entity, or
5)   obtained through intra-Community acquisition by the registered trader with the purpose of
     supply to the using entity, or
6)   imported by the intermediary entity, or
7)   imported by the using entity, or
8)   consumed by the entity managing the tax warehouse acting as the using entity.
     3. The following are also exempt from excise duty because of their purpose:
1) energy products consumed during the electricity production process at power stations –
   exclusively in cases, referred to in (2)(1–5), if the conditions are met, referred to in (4-12).
2) Undenatured ethyl alcohol denatured with the use of contaminants, defined by the
   competent Minister of Public Finances from amongst materials permitted for the
   contamination of ethyl alcohol, pursuant to separate provisions issued under the Ethyl
   Alcohol and Tobacco Goods Production Act of 2 March 2001 (Journal of Laws, No
   31(353), of 2002, No 166(1362) and of 2004, No 29(257) and No 173(1808)) and used for
   the production of products not for human consumption – exclusively in cases, referred to in
   (2)(1) or (8), if the conditions are met, referred to in (4-12);
3) alcoholic beverages used:
     a) for the production of vinegar, falling within CN 2209 00,
     b) for the production of medicinal products, referred to in Article 25(12)(4),
     c) for the production of essential oils, mixtures of odoriferous substances, referred to in
        Article 25(12)(5),
                                                19

   d) directly for the preparation of human foodstuffs – poured or other, or as an ingredient
      for semi-products used for the production of human foodstuffs – poured or other, on
      condition that in each case ethyl alcohol content in these foodstuffs does not exceed
      8.5 litres of pure ethyl alcohol for every 100 kg of product for chocolate products and
      5 litres of pure ethyl alcohol for every 100 kg of product for all other products,
   – exclusively in cases, referred to in (2)(1), (4) or (8), if the conditions are met, referred to
   in (4-12); concerning the using entity the exemption from excise duty relates to the
   quantities not exceeding permissible standards of consumption, referred to in Article
   81(1)(2)(b) and (2)(1)(b).
    4. A further condition for exempting excise goods from excise duty because of their
purpose, involves the keeping of records of excise goods and subject to exemption from
excise duty by the entity managing the tax warehouse, the registered trader, the intermediary
entity and the using entity engaged in business activities with the use of excise goods and
subject to exemption from excise duty is because of their purpose.
   5. Further conditions for excise goods exempting from excise duty because of their
purpose:
1) placing of excise safeguards on excise goods which are the subject of exemption or,
   concerning imports – safeguarding duty amounts on the basis of the provisions of customs
   law submitted, respectively, by: 5)       the entity managing the tax warehouse, the
   intermediary entity or the registered trader, up to the amount of tax commitment which
   could arise in the event of the conditions of exemption being violated – up to the time that
   the receipt of excise goods has been acknowledged, respectively, by: the using entity or
   the intermediary entity; this condition does not concern the situation, referred to in (2)(4)
   or (8);
2) adding to the moved excise goods a delivery document of goods subject to exemption
   from excise duty, hereinafter referred to as the “delivery document”.
    6. The condition for exempting excise goods from excise duty because of their purpose in
cases, referred to in (2)(1), (3) and (5), involves also the submitting – by the using entity, with
place of residence, registered office or business activity located in Poland, engaged in
business activities with the use of excise goods subject to exemption from excise duty because
of their purpose – to the supply entity of these excise goods, a written acknowledgment of
acceptance of the registration application, referred to in Article 12(2).
   7. Records, referred to in (4), may be kept in paper or electronic form, providing that the
competent customs office manager has been informed earlier in writing as to the manner of
keeping records.
    8. Records, referred to in (4), should contain information permitting calculation of the
amount of sent out and received excise goods exempt from excise duty because of their
purpose, the dates on which these goods were sent out or received, the place of receipt in the
event of them being moved and information on delivery documents. Records should be stored
for inspection purposes for a period of 5 years, starting from the end of the calendar year, on
which they were drawn up.
    9. The delivery document may be replaced by another document if the document contains
the same data as required for the delivery document and is based on international agreements
or the provisions of European Community law. For documents replacing delivery documents
appropriate application is made of the provisions on delivery documents.
                                                 20

   10. The acquirer of excise goods relieved of excise duty because of their purpose must
confirm receipt of these goods on the delivery document.
    11. The using entity, being a natural person not engaged in business activities and
acquiring excise goods relieved of excise duty because of their purpose must present to the
supplier his ID card or other document proving identity, with the purpose of confirming
identity.
    12. The entity which delivers goods relieved of excise duty because of their purpose to the
using entity, referred to in (11), has the obligation to refuse to issue these goods if the using
entity refuses to present his ID card or other document proving identity or if the details
presented by the using entity concerning the delivery document do not comply with the details
in the ID card or other document proving identity.

    Article 28. 1. Permission to engage in the business activities of an intermediary entity is
issued for a specific period of time, not more than for three years, or for an unlimited period
of time, on application of the entity which meets jointly the following conditions:
1) is a VAT payer;
2) is an entity whose activities are managed by persons who have not been the subject of a
   conviction by final judgment for crimes related to the credibility of documents, property,
   economic relations, cash and securities turnover or fiscal offences;
3) is not in arrears in the payment of duty and tax constituting State budget income, or of
   health and social insurance contributions payments and is not the subject of enforcement,
   liquidation or bankruptcy proceedings, with the exception of bankruptcy proceedings with
   the possibility of concluding an agreement;
4) has placed excise security;
5) none of its granted permits, referred to in Article 80(1), has been withdrawn as a result of
   the provisions of the law being violated, nor any of the concessions or permits for
   engaging in business activity, nor has a decision been issued banning the entity from
   engaging in activities regulated in the understanding of the provisions of the Freedom of
   Economic Activities Act of 2 July 2004 (Journal of Laws, 2007, No 155(1095), as
   amended6)), concerning excise goods.
     2. The application, referred to in (1), contains data on the entity and its business
activities, in particular the name and surname or the title of the entity, its registered address or
place of residence, its National Court Register or economic activities register number, its
REGON identification number, its tax identification number (NIP), its email address and a
description of the scope of activities to be conducted by the entity, and the proposed excise
security.
     3. Documents confirming that the conditions defined under (1) have been met, are
attached to the application, referred to in (1).
    4. The permission to engage in the business activities of an intermediary entity defines in
particular:
1)   the number of the intermediary;
2)   the registered office or residential address of the intermediary;
3)   the form and binding deadline of the excise security;
4)   the scope of activity;
5)   type of excise goods.
     5. The intermediary must include his number in the delivery document.
                                                21

    6. The intermediary must inform the competent customs office manager of changes to
details in the application, referred to in (1), within a period of 7 days, starting from the day on
which the change took place, with reservation to (7), (9) and (10).
   7. Notification of planned changes to details relating to the contents of the permit should
be made prior to the change taking place, with reservation to (9) and (10).
   8. The notification, referred to in (7), constitutes at the same time the application to
change the permit to engage in the business activities of an intermediary entity within the
scope concerning the notified change.
    9. The change of the conducting business activities as an intermediary entity requires, in
each case, the obtaining of a new permit to engage in business activities as an intermediary
entity.
   10. If the intermediary intends to supply excise goods belonging to another group of
excise goods, referred to in Article 2(1), than the subject of hitherto activities, it must obtain a
new permit to engage in business activities as an intermediary entity.
   11. The competent customs office manager refuses to issue a permit to engage in the
business activities of an intermediary entity in the event of:
1) the entity applying for permission to engage in the business activities of an intermediary
   entity failing to meet the conditions, referred to in (1), in that in assessing the meeting of
   conditions, referred to in (1)(5), the last 3 years are taken into account, starting from the
   day of submitting the application requesting the issue of the permit;
2) the issue of the permit leading a potential threat to important public interest.
    12. The competent customs office manager withdraws ex officio the permit to engage in
the business activities of an intermediary entity if:
1) after receiving the permit within a period of 3 months the business activities have not been
   taken up or business activities have been stopped for more than 3 months, without
   informing the competent customs office manager;
2) the intermediary engages in business activities in a manner which does not comply with
   the provisions of tax law or with the obtained permit;
3) the excise security of the intermediary has lost its validity or does not guarantee the
   punctual covering or the required amount of the tax commitment;
4) if any one of the conditions defined in (1), with reservation to (14), has been violated.
   13. The competent customs office manager also withdraws the permit to engage in the
business activities of an intermediary entity on application of the intermediary.
    14. The competent customs office manager does not withdraw the permit to engage in the
business activities of an intermediary entity if the intermediary pays the duty in arrears, tax
constituting State budget income, health and social insurance contributions within a period of
7 days, starting from the day that the arrears were disclosed, in that in the event of the tax
commitment being defined by the tax administration or tax investigation authority – within a
period of 7 days, starting from the day of delivery of the decision defining the committed
amount.

   Article 29. 1. The competent Minister of Public Finances defines, by way of Regulation:
1) the model and manner of applying the delivery document and the entities which issue the
   delivery document,
                                              22

2) the detailed scope of data, which should be contained in the records of excise goods
   subject to exemption from excise duty because of their purpose and the manner in which
   these should be kept,
3) contaminants, referred to in Article 27(3)(2), their quantity and the conditions of applying
   them
–    taking into account the need for the effective functioning of excise duty relief, the need
to guarantee appropriate inspections and the need to guarantee information flow on goods
exempt from excise duty.
   2. The competent Minister of Public Finances may define, by way of Regulation:
1) additional conditions and the manner of applying excise duty relief, referred to in Articles
   25 and 27, in particular concerning the recording an documenting authority to apply relief,
2) situations, in which for the application of excise duty exemption, some or not all of the
   conditions, referred to in Article 27(4–12) must be met,
3) cases, referred to in Article 27(2)(1–3) and (5–7), in which delivery documents are not
   used.
– taking into account the specifics of the circulation of excise goods subject to exemption and
the need to guarantee appropriate controls in the application of excise duty relief.

    Article 30. 1. The competent Minister of Public Finances may, by way of Regulation,
introduce excise duty exemption in the event of:
1) it being justified by an important interest connected with public safety, State defence,
   State fuel security or environmental protection,
2) it stemming from the provisions of European Community law,
3) it stemming from international agreements,
4) it stemming from the need to avoid multiple duties on excise goods,
5) excise goods being exempt of import duty amounts under the provisions of customs law
– by defining the detailed scope, conditions and manner of applying it, taking into account the
specifics of the circulation of excise goods and the need to guarantee appropriate controls.
   2. Exemption from excise duty may be:
1) total or part;
2) through reimbursement of the paid excise amount ;
3) introduced because of purpose, quantity or manner of production.
   3. In the event of excise duty exemption involving the reimbursement of the paid excise
amount, the competent customs office manager defines, by way of decision, the amount of
excise duty to be reimbursed.

   Article 31. Tax relief and exemptions granted on the basis of separate provisions do not
apply to excise duties.

    Article 32. 1. There is no excise duty on intra-Community acquisition of motor fuels sold
for use during transport and brought in standard tanks:
1) of commercial motor vehicles;
2) assembled in special-purpose containers;
3) of flying machines and sailing units.
                                                23

    2. A commercial motor vehicle means any motorized road vehicle (including tractors with
or without trailers) which by its type of construction and equipment is designed for, and
capable of, transporting, whether for payment or not, of goods or more than nine persons,
including the driver, and any road vehicle for special use other than transport.
     3. A standard tank is:
1) fuel tanks permanently fixed by the manufacturer to all motor vehicles of the same type
   and whose permanent fitting enables fuel to be used directly, both for the purpose of
   propulsion and, where appropriate, for the operation of a refrigeration system and other
   systems;
2) tanks permanently fixed by the manufacturer to all containers of the same kind and whose
   permanent fitting enables fuel to be used directly for the operation of a refrigeration
   system and other systems, with which the special-purpose container may be fitted.
   4. A special-purpose container is every kind of container fitted with cooling systems,
oxygen systems, thermal insulation and other systems.
     5. Exemption, referred to in (1), applies on condition that:
1) motor fuels are used exclusively by the means of transport in which they were brought in;
2) motor fuels will not be removed from this means of transport and will not be stored,
   unless this is necessary for the purpose of repairs;
3) motor fuels will not be made available, for payment or not, by the person benefiting from
   exemption.
    6. In the event of violating the conditions, referred to in (5), the level of excise duty is
determined as at the day that the conditions were violated, but if it is impossible to determine
the level on that day – on the day that violation was detected.

    Article 33. 1. There is no excise duty on intra-Community acquisition of excise goods
with excise duty is paid in the Member State by a natural person, when these goods are
transported by this person himself for his own use and when these goods are not designated
for commercial purposes.
   2. In order to establish the commercial purpose of the intra-Community acquired excise
goods, referred to in (1), the tax administration takes into account:
1)   the quantity of excise goods;
2)   the commercial status of the natural person acquiring the excise goods in the Community;
3)   the place where the excise goods are located or, in case of doubt, the method of transport;
4)   every document referring to the excise goods;
5)   the type of excise goods.
    3. The commercial aspect of intra-Community acquisition of excise goods is determined
in particular if quantities exceed:
1) for tobacco products:
     a)   cigarettes – 800 items,
     b)   cigarillos (cigars with mass not more than 3 grams/items) – 400 items,
     c)   cigars – 200 items,
     d)   smoking tobacco – 1 kilogram;
2) alcoholic beverages:
     a) ethyl alcohol – 10 litres,
     b) wine and fermented beverages – 90 litres, including sparkling wines – 60 litres,
                                                24

   c) beer – 110 litres,
   d) intermediate products – 20 litres.
     4. Intra-Community acquisition by a natural person, of any quantity, of energy products
with excise duty paid in the Member State, points at the commercial purpose of these goods,
if these goods are transported with the use of untypical types of transport.
   5. Atypical modes of transport are as follows:
1) the transport of motor fuels, in a different manner than in the fuel tanks of motorised road
   vehicles, permanently fixed by the manufacturer to all motorised road vehicles, which
   permit the direct use of fuel for the propulsion of the motorised road vehicle, or adapted
   motorised road vehicles, permitting the direct use of gas as fuel, or in appropriate reserve
   tanks (canisters) containing motor fuels, earmarked for use with these vehicles, not
   exceeding 10 litres;
2) the transport of heating fuels in a manner other than with the use of cisterns used by
   entities as part of their business activities.

     Article 34. 1. The import of the following is exempt from excise duty:
1) motor fuels transported in standard tanks:
   a) of motor vehicles,
   b) of special-purpose containers,
   c) of flying machines or sailing units;
2) motor fuels placed in canisters transported by motor vehicles and in quantities not
   exceeding 10 litres per vehicle, in keeping with the conditions defined in the provisions on
   the storage and transport of fuel;
3) lubricants in means of transport, referred to in (1), necessary for their operation.

   2. The provisions of Article 32(3–6) apply appropriately.

    Article 35. 1. There is no excise duty on the import of tobacco products or alcoholic
beverages, transported in the personal luggage of a person who is 17 or more, with reservation
to Article 36, under the following standards:
1) for tobacco products:
   a)   cigarettes – 40 items or
   b)   cigarillos (cigars with mass not more than 3 grams/items) – 20 items or
   c)   cigars – 10 items or
   d)   smoking tobacco – 50 grams or
   e)   the list of goods defined under (a–d), on condition that the sum percentage value of
        making use of standards determined in reference to given goods does not exceed
        100%;
2) the following alcoholic beverages:
   a) undenatured ethyl alcohol of true alcoholic strength by volume exceeding 22%. – 1
      litre or
   b) ethyl alcohol, fermented beverages, sparkling wines and intermediate products, of true
      alcoholic strength by volume not exceeding 22% – a total of 2 litres, or a set of excise
      goods defined under (a) and (b), on condition that the sum percentage value of making
      use of standards determined in reference to given goods does not exceed 100%;
                                              25

3) the following alcoholic beverages:
   a) still wine – a total of 4 litres,
   b) beer – 16 litres.
     2. Personal luggage means the whole of the luggage which the traveller is in a position to
submit to the customs authorities on his arrival in Poland, as well as any luggage submitted to
this same authority at a later date, provided that evidence can be produced to these authorities
that the luggage was registered as luggage accompanying the entity which was responsible for
its transport at the time of departure.
   3. Exemption, referred to in (1), applies on condition that:
1) the nature or the quantity of the excise goods brought in does not indicate import for
   commercial purposes;
2) the import of these goods is of an occasional nature;
3) these goods are exclusively for the personal use of the traveller or his family or are
   intended as presents.
    4. The provisions of (1–3) also apply if the journey involves transit through a third State
and the traveller is not capable of demonstrating that the imported goods in his personal
luggage were acquired in keeping with the general principles of taxation in the European
Community and that they are not subject to excise duty reimbursement. Overflying without
transit is not regarded as transit.

    Article 36. 1. There is no excise duty on the import of tobacco products or alcoholic
beverages, transported in personal luggage, in the understanding of Article 35(2), for the
personal use of the traveller who:
1) place of residence in the border area or
2) is an employee working in the border area, or
3) is a member of the crew operating the means of transport used for carriage between the
   third States and the European Community.
   2. Excise goods, referred to in (1), are exempt of excise duty, on condition that they are
imported by a traveller, who is 17 years or older, under the following standards:
1) for tobacco products:
   a)   cigarettes – 20 items or
   b)   cigarillos (cigars with mass not more than 3 grams/items) – 15 items or
   c)   cigars – 5 items or
   d)   smoking tobacco – 20 grams or
   e)   the list of goods defined under (a–d), on condition that the sum percentage value of
        making use of standards determined in reference to given goods does not exceed
        100%;
2) the following alcoholic beverages:
   a) undenatured ethyl alcohol of true alcoholic strength by volume exceeding 22%. – 0.5
      litres or
   b) ethyl alcohol, fermented beverages and intermediate products, with actual alcoholic
      strength by volume of not more than 22%, sparkling wines – 0.5 litres, or
   c) the list of excise goods defined under (a) and (b), on condition that the sum percentage
      value of making use of standards determined in reference to given goods does not
      exceed 100%;
                                               26

3) the following alcoholic beverages:
   a) still wine – a total of 0.5 litres,
   b) beer – 2 litres.
    3. The provisions of (2) do not apply if the traveller with place of residence in the border
area proves that he is travelling beyond the border area within the country or is not returning
from the border area of a neighbouring third country. In this situation application is made of
Article 35.
    4. Provision (3) does not apply to employees working in the border area and to members
of crews operating means of transport used for carriage between the third States and the
European Community, if they are transporting goods whilst performing their employment.
   5. The provision of Article 35(3) applies appropriately.

    Article 37. 1. There is no excise duty on the import of tobacco products or alcoholic
beverages, placed in dispatches sent from the third State by a natural person and designated
for a natural person residing in Poland, providing that the following conditions are jointly
met:
1) the dispatch is of an occasional nature;
2) the dispatch contains excise goods designated exclusively for the personal use of the
   recipient or his family;
3) the total value of the excise goods contained in the dispatch does not exceed the
   equivalent value of €45;
4) the quantity and type of excise goods do not indicate that their purpose is commercial;
5) the recipient has no obligation to cover any fees for the sender in connection with the
   receipt of the dispatch.
     2. Excise goods, referred to in (1), are exempt of excise duty under the following
standards:
1) for tobacco products:
     a) cigarettes – 50 items or
     b) cigarillos (cigars with mass not more than 3 grams/items) – 25 items or
     c) cigars – 10 items or
     d) smoking tobacco – 50 grams;
2) alcoholic beverages:
     a) undenatured ethyl alcohol of true alcoholic strength by volume exceeding 22%. – 1
        litre or
     b) ethyl alcohol, fermented beverages and intermediate products, with actual alcoholic
        strength by volume of not more than 22%, sparkling wines – 1 litre, or
     c) still wine – 2 litres.
      3. If the amount of excise goods, referred to in (1), exceeds the standards, referred to in
(2), duty is imposed on all tobacco products and alcoholic beverages imported in the dispatch,
referred to in (1).
      4. The equivalent amount, referred to in (1)(3), expressed in euros is determined in PLN
(zlotys) for each calendar year according to the binding rate on the first working day in
October of the previous year, notified in the Official Journal of the European Union, in that
the calculated amount is rounded up to full zlotys so that the end amounts constituting less
                                        27

than PLN 0.50 do not count, whilst the end amounts constituting PLN 0.50 or more are
rounded up to a full 1 PLN.
                                              28

                                          Section III

                           Organising the circulation of excise goods

                                          Chapter 1

                                Duty suspension arrangement

   Article 38. 1. The duty suspension arrangement applies if:
1) the excise goods are:
   a) at the tax warehouse,
   b) moved between tax warehouses in Poland,
   c) moved, for export purposes, from the tax warehouse in Poland to the customs office in
      Poland, which supervises the actual carriage of these goods outside the European
      Community;
2) immediately after the entity managing the tax warehouse has effected import and
   circulation, the excise goods are transferred to the tax warehouse of that entity in Poland.
   2. The duty suspension arrangement also applies if the excise goods are transferred:
1) from the tax warehouse in Poland to the tax warehouse in the Member State;
2) from the tax warehouse in the Member State to the tax warehouse in Poland;
3) for export purposes, from the tax warehouse in Poland through a Member States to the
   customs office, which supervises the actual carriage of these goods outside the European
   Community;
4) from the tax warehouse in the Member State to the customs office in Poland, which
   supervises the actual carriage of these goods outside the European Community;
5) from the tax warehouse in the Member State through Poland to the customs office in the
   Member State, which supervises the actual carriage of these goods outside the European
   Community;
6) from the tax warehouse in Poland to the acquirer in the Member State being an entity
   authorised by the competent tax authorities of that Member State to receive excise goods
   under the duty suspension arrangement or to the institutions, organisations or armed
   forces in the Member State, mentioned under Article 26(1) and (2);
7) from the tax warehouse in the Member State to a location defined in the appropriate
   permit from which they may be collected by a registered trader or a trader who is not
   registered in Poland or to the institutions, organisations or armed forces in Poland
   mentioned under Article 26(1) and (2);
8) across Poland between tax warehouses in the Member States;
9) across Poland from the tax warehouse in the Member State to the acquirer in the Member
   State being an entity authorised by the competent tax authorities of that Member State to
   receive excise goods under the duty suspension arrangement or to the institutions,
   organisations or armed forces in the Member State, mentioned under Article 26(1) and (2).
   3. Excise duty collected on excise goods is suspended:
1) if these goods are:
   a) under the suspended duty arrangement in the understanding of the provisions of
   customs law,
   b) moved from Poland into a Member State across a Member State of the European Free
       Trade Association (EFTA) – parties to the European Economic Area agreement or to a
                                              29

      Member State of the European Free Trade Association (EFTA) – parties to the
      European Economic Area agreement, under the intra-Community transit procedure,
   c) moved from Poland into a Member State across one or more third States not being
      member states of the European Free Trade Association (EFTA) – parties to the
      European Economic Area agreement on the basis of a TIR carnet, referred to in the
      Customs Convention on the International Transport of Goods under Cover of TIR
      carnets (TIR Convention), done at Geneva on 14 November 1975 (Journal of Laws of
      1984, No 17(76), of 2000. No 40(476) and No 43(494) and of 2008, No 12(75), or the
      A.T.A. carnet, referred to in the Customs Convention on the ATA Carnet for the
      Temporary Admission of Goods (ATA Convention), done at Brussels on
      6 December 1961 (Journal of Laws of 1969, No 30(242) and of 1998, No 14(61));
2) in the event of introduction into the free zone or free warehouse in Poland of goods:
   a) which are imported,
   b) referred to in Article 166(b) of Council Regulation (EEC) No 2913/92 of 12 October
      1992 establishing the Community Customs Code (OJ L 302 of 19 October 1992, p.l, as
      amended.; EU Journal of Laws Special Polish Edition, Chapter 2, v. 4, p. 307, as
      amended).
    4. The collection of duty on excise goods may be suspended if these goods were given a
different customs purpose under the provisions of customs law.
   5. Suspension arrangements for excise duties procedure apply to excise goods defined
under Annex 2 of the Act, with reservation to Article 45(1). Concerning excise goods
containing Codes CN 2710 11 21, 2710 11 25 and 2710 19 29 suspension arrangements for
excise duties procedure applies if these excise goods are transported loosely.
   6. Suspension arrangements for excise duties procedure also apply in Poland for excise
goods other than those defined in Annex 2 of the Act, with an excise duty rate other than zero
duty, with reservation to Article 45(1)(1).
   7. Suspension arrangements for excise duties procedure do not apply to electricity.

    Article 39. 1. If the suspension arrangements for excise duties procedure involve the
carriage of excise goods, the condition for applying it is the joint meeting by the entity
managing the tax warehouse of the following:
1) the administrative accompanying document to the excise goods being moved;
2) excise security must be submitted to the corresponding customs office.
    2. If the suspension arrangements for excise duties procedure concerns the intra-
Community delivery to the entity not managing the tax warehouse, the condition for applying
the suspension arrangements for excise duties procedure, taking into account (1), is the
authorisation issued by the competent tax authorities of the Member State of the European
Community for the recipient to collect the excise goods under the suspension arrangements
for excise duties procedure, and concerning the situation referred to in Article 26(1) and (2),
the institutions, organisations or armed forces – application of the excise duty exemption
certificate, referred to in Commission Regulation (EC) No 31/96 of 10 January 1996 on the
excise duty exemption certificate (OJ L 8 of 11 January 1996, p. 11; EU Journal of Laws
Special Polish Edition, Chapter 9, v. l, p. 297).
   3. If the suspension arrangements for excise duties procedure concerns the intra-
Community acquisition by institutions, organisations or armed forces, referred to in Article
26(1) and (2), the condition for applying the suspension arrangements for excise duties
                                               30

procedure, taking into account (1), is the application of the exemption certificate, referred to
in Commission Regulation (EC) No 31/96 of 10 January 1996 on the excise duty exemption
certificate.
    4. If the suspension arrangements for excise duties procedure concerns excise goods,
referred to in Article 38(6), the conditions, referred to in (1), only apply when these goods are
moved in Poland, whilst in the case of moving excise goods in Poland as part of intra-
Community acquisition or intra-Community delivery, the condition for applying the
suspension arrangements for excise duties procedure is the attachment, to the moved goods,
of commercial documents instead of the administrative accompanying document.
    5. When moving excise goods coming under the suspension arrangements for excise
duties procedure no tax commitment arises and the tax liability burdening the payer expires as
a result of carrying out the activity subject to duty, once the duty payer receives the
administrative accompanying document:
1) with confirmation that the excise goods have been collected by the recipient,
2) with confirmation that the excise goods have been moved outside the European
   Community by the customs office, which supervises the actual carriage of these goods
– in the part referring to confirmation.
   6. The accompanying administrative document may be replaced by a commercial
document if this document contains the same data as required in the case of the accompanying
administrative document. Concerning the commercial document which replaces the
accompanying administrative document application is made respectively of the provisions on
accompanying administrative documents.
   7. In the event of loss or destruction of the accompanying administrative document as
proof confirming the end of suspension arrangements for excise duties, duplicates of the
accompanying administrative document may be used.
    8. The condition for suspending the collection of duty on excise goods in cases, referred to
in Article 38(3), involves:
1) the application of documents defined under the provisions of customs law;
2) the submitting of excise security, unless the duty amount was secured in the manner
   applied when safeguarding duty amounts on the basis of the provisions of customs law.
   9. Suspension arrangements for excise duties procedure do not apply to excise goods with
excise marks in intra-Community delivery and to circulation in Poland, with the exception of
moving excise goods between the tax warehouses of the same entity, located in Poland.
    10. The entity managing the tax warehouse must keep outgoing and incoming records, the
registered trader incoming records, and accompanying administrative documents. The entity
managing the tax warehouse must also keep records of commercial documents accompanying
the carriage of excise goods other than those defined in Annex 2 of the Act, with an excise
duty rate other than zero duty.
    11. Records, referred to in (10), may be kept in paper or electronic form, providing that
the competent customs office manager has been informed earlier in writing as to the manner
of keeping records.
   12. Records, referred to in (10), should contain respectively data on the accompanying
administrative document or the commercial document, in particular concerning entities and
excise goods, to which these documents refer. Records should be stored for inspection
                                              31

purposes for a period of 5 years, starting from the end of the calendar year, on which they
were drawn up.
   13. The competent customs office manager uses official stamps to stamp the
accompanying administrative document containing the confirmation of receipt of excise
goods made by the recipient.
    14. In the event of an inspection being carried out at the recipient of the excise goods,
which were moved on the basis of the accompanying administrative document, the competent
customs office manager includes information in the document about the inspection.

   Article 40. 1. End of procedure on suspension arrangements for excise duties takes place:
1) on the day that the excise goods are moved from the tax warehouse outside the procedure
   on suspension arrangements for excise duties; no tax commitment arises and tax liability
   towards the entity managing the tax warehouse expires, if tax liability arose as a result of
   activities, referred to in Article 5(1)(5);
2) on the day that the excise goods are consumed at the tax warehouse; no tax commitment
   arises and tax liability expires when the excise goods are consumed for the production of
   other excise goods, as well as during processes directly serving in the production of these
   goods; if the amount of consumed alcoholic beverage for the production of other excise
   goods exceeds the permissible standards of consumption of excise goods, referred to in
   Article 81(1)(2)(a) or (2)(1)(b), in relation to the amount exceeding these standards, tax
   liability does not expire, and the tax commitment arises on the day that the produced
   excise goods are moved from the tax warehouse outside the suspension arrangements for
   excise duties procedure;
3) in the event of the entity managing the tax warehouse not receiving, within a period of
   two months from the day of sending excise goods from the tax warehouse, the
   accompanying administrative document with confirmation of their receipt or carriage
   outside the European Community, if the carriage took place in Poland – on the day
   following the expiry of the deadline;
4) in the event of the entity managing the tax warehouse not receiving, within a period of
   four months from the day of sending excise goods from the tax warehouse, the
   accompanying administrative document with confirmation of their receipt or carriage
   outside the European Community, if the carriage took place as part of intra-Community
   delivery or export across Poland – on the day following the expiry of the deadline;
5) on the day that other conditions of the duty suspension arrangement, defined in points (3)
   and (4), are violated, and if it is not possible to determine the day – on the day that
   violation is noted by the authorised body;
6) in relation to excise goods losses – on the day that these losses arise, and if it is not
   possible to determine the day – on the day that these losses were noted by the authorised
   body;
7) In the event of intra-Community delivery or the export of excise goods, referred to in
   Article 38(6) – on the day that the entity managing the tax warehouse, from which intra-
   Community delivery or the export of these excise goods took place, receives the
   commercial document or other document confirming the delivery of these goods in the
   Member State or the carriage of these outside the European Community; no tax
   commitment arises and the tax liability burdening the payer expires as a result of carrying
   out the activity subject to duty, once the payer receives this document, concerning the part
   referring to confirmation;
8) in the event of the entity managing the tax warehouse not receiving, within a period of
   four months from the day of sending excise goods from the tax warehouse, the document,
                                               32

   referred to in point (7), with confirmation of delivery of these excise goods into the
   Member State or carriage of them outside the European Community, if the carriage took
   place as part of intra-Community delivery or export across Poland – on the day following
   the expiry of the deadline.
   2. If, concerning the carriage across the European Community of excise goods coming
under the suspension arrangements for excise duties procedure:
1) the conditions of this procedure are violated in Poland, which causes the procedure to end,
   or
2) it is not possible to establish the place of violation of the conditions of the suspension
   arrangements for excise duties, and it is noted that they were violated in Poland
– the competent customs office manager collects excise duty calculated against excise rates
binding on the day on which the violation took place, and if it is not possible to establish this
day – the binding rates on the day that this violation was noted is chosen; the above manager
must inform the competent tax authorities of the Member State of the European Community,
from which the dispatch took place, of the violation of the procedure on suspension
arrangements for excise duties and of the collection of excise duty in Poland.
   3. The entity managing the tax warehouse which received:
1) the accompanying administrative document or its duplicate with confirmation of receipt or
   carriage outside the European Community of excise goods after the expiry of the deadline,
   referred to in (1)(3) and (4), or
2) documents confirming payment of excise duty in the Member State, in which the violation
   took place or violation of the conditions of the procedure on suspension arrangements for
   excise duties is noted, corresponding in amount to the quantity of the excise goods, to
   which the violation refers, or
3) the document, referred to in (1)(7), with confirmation of delivery into the Member State or
   carriage outside the European Community of excise goods after the expiry of the deadline,
   referred to in (1)(8)
– is entitled to reimbursement of the amount of excise duty paid by this entity on these goods
in Poland, on the entity‟s written application submitted to the competent customs office
manager.
    4. The application, referred to in (3), may be submitted within a deadline of 5 years,
starting from the end of the calendar year, in which the deadline for the payment of excise
duty expires.

   Article 41. 1. The competent Minister of Public Finances may define, by way of
Regulation:
1) the model form of the accompanying administrative document;
2) the conditions under which the commercial document may replace the accompanying
   administrative document;
3) the detailed manner of applying and documenting the procedure on suspension
   arrangements for excise duties, in particular the manner of circulating and the deadlines
   for submitting the accompanying administrative document cards, the documenting of
   procedure in case of loss or destruction of the accompanying administrative document
   cards, the manner of recording the accompanying administrative documents and the
   detailed scope of data which the records should contain, the manner of confirming the
   receipt of excise goods by the recipient, the conditions of using duplicate accompanying
                                                33

     administrative documents, and the manner of applying and documenting the procedure on
     suspension arrangements for excise duties in the event of importing excise goods;
4)   the detailed manner of applying and documenting the procedure on suspension
     arrangements for excise duties relating to excise goods other than those defined in Annex
     2 of the Act, with an excise duty rate other than zero duty, the manner of recording
     commercial documents accompanying the carriage of these goods and the scope of data
     which the records should contain;
5)   procedure in the event of not receiving the accompanying administrative document;
6)   the detailed conditions and manner of reimbursement of excise duty in cases, referred to
     in Article 40(3);
7)   instances and conditions under which the collection of duty on excise goods may be
     suspended if these goods were given a different customs purpose under the provisions of
     customs law.
    2. The competent Minister of Public Finances, when issuing the Regulation, referred to in
(1), takes into account:
1) the specifics of given excise goods and the circulation of these goods;
2) the need for the suspension arrangements for excise duties to function effectively;
3) the need to guarantee appropriate control of excise goods;
4) the need to guarantee information flow on the carriage of excise goods, on which no duty
   has been paid;
5) the provisions of European Community law on excise duty.

    Article 42. 1. End of procedure on suspension arrangements for excise duties also takes
place on the day:
1) that permission to manage the tax warehouse is withdrawn;
2) of expiry of the period for which permission to manage the tax warehouse was issued, if
    the entity managing the tax warehouse did not receive new permission to manage this tax
    warehouse prior to the expiry of the period;
3) that the entity managing the tax warehouse ceases to perform activities subject to excise
    duty;
4) that the company of the entity managing the tax warehouse is closed down;
5) of loss of validity of excise security, if prior to the loss of validity the entity managing the
    tax warehouse did not submit a new excise security or did not obtain exemption from the
    obligation to submit the excise security, referred to in Article 61(1);of loss of validity of
    exemption from the obligation to submit the excise security, referred to in Article 61(1), if
    prior to the loss of validity the entity managing the tax warehouse did not submit excise
    security or did not obtain an extension on the exemption.2. In cases, referred to in (1), the
entity managing the tax warehouse must:
1) draw up a list of the nature of the excise goods, hereinafter referred to as the “nature list”,
   according to the situation as on the day on which the procedure on suspension
   arrangements for excise duties ends, within a period of 21 days from that day;
2) inform the competent customs office manager that the nature list has been drawn up and
   about the determined quantity of excise goods, as well as about the amount of excise duty
   to be paid on these goods, within a period of 7 days from the day of completing this list,
   however, not later than within the deadline for submitting the tax return and paying the
   excise duty, referred to in Article 16(2).
   3. If the nature list is not drawn up within the deadline, referred to in (2)(1), or is drawn up
unreliably, the competent customs office manager defines:
                                              34

1) the quantity of excise goods by way of estimation;
2) the amount of tax commitment in the excise duty.

    Article 43. 1. In the event of applying the procedure on suspension arrangements for
excise duties, tax commitment arises on the day that this procedure ends, unless the provisions
of the Act constitute otherwise.
    2. In the event of applying the procedure on suspension arrangements for excise duties, in
order to calculate the level of tax commitment, application is made of the excise duty rate,
binding on the day that the procedure on suspension arrangements for excise duties ends.

    Article 44. 1. A data communication system on the carriage of excise goods in Poland is
being set up.
    2. The system, referred to in (1), in the event of excise goods being moved with the
application of the procedure on suspension arrangements for excise duties, in particular serves
the purpose of sending the accompanying administrative document in electronic form and of
offering electronic management of the excise security.
   3. The system, referred to in (1), is managed by the competent Minister of Public
Finances.
   4. Users of the system, referred to in (1), may be entities managing tax warehouses who
move excise goods with the application of the procedure on suspension arrangements for
excise duties, and the tax administration.
   5. Issue of the accompanying administrative document in electronic form does not mean
exemption from the obligation to apply the accompanying administrative document in paper
form.
    6. The competent Minister of Public Finances may define, by way of Regulation,
situations which do not require application of the accompanying administrative document in
paper form, taking into consideration the development and functioning of the system, referred
to in (1), and the need to guarantee control.
   7. The competent Minister of Public Finances may define, by way of Regulation:
1) the manner in which the system functions, referred to in (1),
2) the detailed requirements which electronic form documents sent through the system must
   meet, referred to in (1),
3) the detailed manner of applying and documenting the carriage of excise goods in the
   suspension arrangements for excise duties procedure when using electronic form
   documents sent through the system, referred to in (1), in particular the manner of
   circulation of the accompanying administrative document in electronic form, the manner
   in which it is recorded and the scope of data, which the records should contain, as well as
   the manner of confirming receipt of excise goods by entities engaged in the carriage of
   excise goods,
4) detailed procedure in the event of system breakdown, referred to in (1), or of cooperating
   systems
– taking into account the need to improve the carriage of excise goods in the suspension
arrangements for excise duties procedure.

                                       Chapter 2
                                      Tax warehouses
                                              35

   Article 45. 1. The production of excise goods defined in Annex 2 of the Act and of excise
goods other than those defined in Annex 2 of the Act, with an excise duty rate other than zero
duty, may take place exclusively in the tax warehouse, with the exception of the following
production:
1) excise goods, with the exclusive use of excise goods, on which excise duty has been paid
   equivalent to, or higher than, the amount of excise duty to be paid on produced excise
   goods;
2) less than 1000 hectolitres during the calendar year, of own cultivated grape wine, referred
   to in Article 16(3) of the Production and Bottling of Wine Products, Trade in these
   Products and Organisation of the Wine Market Act of 22 January 2004 (OJ, No 34(292),
   as amended7));
3) beer, wine and fermented beverages, home-made by natural persons for their own use and
   not for sale;
4) less than 10 hectolitres during the calendar year, of ethyl alcohol, produced by distilleries
   which are legally and economically independent of all other distilleries and which do not
   operate under licence obtained from another entity;
5) excise goods, on which an advance excise duty payment has been made;
6) electricity.
   2. The storage of excise goods under the suspension arrangements for excise duties
procedure may only take place at the tax warehouse.
    3. At the tax warehouse the place designated for the storage of excise goods under the
suspension arrangements for excise duties procedure should be separated and designated only
for storing these excise goods.
    4. Conditions relating to the tax warehouse are defined by the regulations on the
functioning of the tax warehouse, confirmed by the competent customs office manager when
issuing the permit to manage the tax warehouse. Each change to the regulations on the
functioning of the tax warehouse must be confirmed by the competent customs office
manager.
    5. The reloading of excise goods moved under the suspension arrangements for excise
duties procedure may only take place at the tax warehouse, with the exclusion of the
following situations:
1) misfortune, in cases in which reloading is only possible at the place of misfortune;
2) when there is a change of means of transport, and the reloaded excise goods in entirety are
   moved to one point of receipt indicated in the accompanying administrative document.
    6. Grape wines produced outside the tax warehouse, referred to in (1)(2), are moved as
part of intra-Community delivery in keeping with requirements defined in Commission
Regulation (EC) No 884/2001 of 24 April 2001 laying down detailed rules of application
concerning the documents accompanying the carriage of wine products and the records to be
kept in the wine sector (OJ L 128 of 10 May 2001, p. 32, as amended; EU Journal of Laws
Special Polish Edition, Chapter 3(32)(202), as amended), in particular concerning the
registration of outgoing goods and the model commercial document accompanying wine
products in Annex III of this Regulation. The provisions of this Regulation relating to the
register of outgoing goods also apply to the carriage of these grape wines in Poland.
    7. The entity engaged in intra-Community acquisition of grape wines produced outside the
tax warehouse must inform the competent customs office manager of the collection of these
wines and present the commercial document accompanying the wine products, on the basis of
which carriage took place in Poland.
                                                36

    Article 46. 1. Permission to manage a tax warehouse is issued to the entity, which meets
jointly the following conditions:
1) is engaged in at least one type of activity involving the production, reloading, or storing of
   excise goods, including those which are the property of other entities;
2) is a VAT payer;
3) is an entity whose activities are managed by persons who have not been the subject of a
   conviction by final judgment for crimes related to the credibility of documents, property,
   economic relations, cash and securities turnover or fiscal offences;
4) is not in arrears in the payment of duty and tax constituting State budget income, or of
   health and social insurance contributions payments and is not the subject of enforcement,
   liquidation or bankruptcy proceedings, with the exception of bankruptcy proceedings with
   the possibility of concluding an agreement;
5) submits excise security, with reservation to Article 61(1);
6) none of its granted permits, referred to in Article 80(1), has been withdrawn as a result of
   the provisions of the law being violated, nor any of the concessions or permits for
   engaging in business activity, nor has a decision been issued banning the entity from
   engaging in activities regulated in the understanding of the provisions of the Freedom of
   Economic Activities Act of 2 July 2004, concerning excise goods.
7) holds a legal title to use the location where the tax warehouse is to be managed.
    2. The provision of (1)(2) does not apply to farmers applying for permission to manage a
tax warehouse where, in keeping with the Bio-components and Liquid Bio-fuels Act of
25 August 2006 (Journal of Laws, No 169(1199) and of 2007, No 35(217) and No 99(666)),
only activities involving the production for one‟s own use of ester or pure vegetable oil will
take place, referred to in Article 2(1)(11)(c) of this Act.
    3. In the event of the entity applying for permission to engage in activities at the tax
warehouse involving exclusively the storage or reloading of excise goods produced at a
different tax warehouse, outside the conditions defined under (1), an additional condition for
issuing the permit, with reservation to (4), is:
1) for tobacco products – a minimum level of trade in these goods, in the understanding of
    the provisions of value added tax, in the year preceding the given tax year, amounting to
    PLN 700 million;
2) for alcoholic beverages – a minimum level of trade in these goods, in the understanding of
     the provisions of value added tax, in the year preceding the given tax year, amounting to
     PLN 100 million;
3) for energy products with the exclusion of lubricating oils and gas – storage volume for
    these goods of at least 5000 cubic metres;
4) for lubricating oils – a minimum level of trade in these goods, in the understanding of the
    provisions of value added tax, in the year preceding the given tax year, amounting to PLN
    20 million;
5) for gas – storage volume for these goods of at least 500 cubic metres.
    4. In the event of an entity starting activities, referred to in (3), relating to tobacco
products, alcoholic beverages or lubricating oils, a condition for issuing permission to manage
a tax warehouse beyond the conditions defined under (1) is for the entity to submit a
declaration, in which he declares to attain in the given year the minimum level of trade,
defined in (3)(1), (2) or (4), in proportion to each subsequent month.
    5. In the event of the entity conducting activities at the tax warehouse exclusively relating
to the reloading of rail cisterns with liquid, no application is made of the condition, referred to
                                               37

in (3)(5), if the reloaded liquid gas is moved under the suspension arrangements for excise
duties procedure.
    6. The entity managing the tax warehouse, in which he produces excise goods may, at this
tax warehouse store and reload excise goods which come under the permission to manage a
tax warehouse and which have also been produced by another entity, without the need to meet
the conditions, referred to in (3)(1–5).

    Article 47. 1. Permission to manage a tax warehouse is issued by the competent customs
office manager on written application of the entity.
   2. Permission to manage a tax warehouse may be issued for a specific period of time, not
more than for three years, or for an unspecified period of time.
    3. The application contains data on the entity and its business activities, in particular the
name and surname or the title of the entity, its registered address or place of residence, its
National Court Register or economic activities register number, its REGON identification
number, its tax identification number (NIP), its email address and a description of the type
and scope of activities to be conducted at the tax warehouse, as well as indication of the
planned location of the tax warehouse, the proposed excise security and the number of tax
warehouses already managed by the entity.
    4. Provision (3), relating to the National Court Register number or economic activities
register number, does not apply to farmers applying for permission to manage a tax
warehouse where, in keeping with the Bio-components and Liquid Bio-fuels Act of
25 August 2006, only activities involving the production for one‟s own use of ester or pure
vegetable oil will take place, referred to in Article 2 (1)(11)(c) of this Act.
   5. The application for permission to manage the first tax warehouse also constitutes an
application to issue the entity with an excise number for the entity managing the tax
warehouse.
   6. The application has attached to it a plan of the tax warehouse and documents
confirming the meeting of conditions defined in Article 46.
    7. The entity managing the tax warehouse must inform the competent customs office
manager of changes to details in the application, referred to in (1), within a period of 7 days,
starting from the day on which the change took place, with reservation to (8), (10) and (11).
   8. Notification of planned changes to details relating to the contents of the permit should
be made prior to the change taking place, with reservation to (10) and (11).
   9. The notification, referred to in (8), constitutes at the same time the application to
change the permit to manage the tax warehouse within the scope concerning the notified
change.
   10. Change of location of managing the tax warehouse or of the entity managing the tax
warehouse requires, in each case, the obtaining of a new permit to manage the tax warehouse.
    11. If the entity managing the tax warehouse intends to produce, store or reload goods
belonging to another group of excise goods, referred to in Article 2(1), than the subject of
hitherto activities, he must obtain a new permit to manage a tax warehouse.

    Article 48. 1. The competent customs office manager, in issuing permission to manage
the first tax warehouse grants the entity, by means of a separate decision, an excise number
for the entity managing the tax warehouse.
                                               38

   2. Each tax warehouse is issued with a separate permit to mange the tax warehouse and a
separate tax warehouse excise number is defined.
     3. The permit to manage a tax warehouse defines in particular:
1)   the tax warehouse excise number;
2)   the address at which the tax warehouse is located;
3)   the type of activities at the tax warehouse;
4)   the type of excise goods being the subject of activities at the tax warehouse;
5)   the form and binding deadline of the excise security, and in the event of an exemption
     from the obligation to submit security being granted to the entity applying for a permit to
     manage the tax warehouse – the anticipated maximum tax commitment subject to excise
     security and the binding deadline for exemption from the obligation to submit excise
     security.
    4. In each permit which he issues the customs office manager indicates the excise number
of the entity managing the tax warehouse, granted under (1).

    Article 49. 1. The entity managing the tax warehouse must place the excise number of the
tax warehouse, at which the excise goods are produced, on the accompanying administrative
document.
   2. The entity managing the tax warehouse must indicate in the tax return all excise
numbers of tax warehouses, to which the return refers.

   Article 50. 1. The competent customs office manager refuses to issue the permit to
manage a tax warehouse if:
1) the entity applying for permission to manage the tax warehouse does not meet the
   conditions, referred to in Article 46(1), (3), or (4), in that in assessing the meeting of
   conditions, referred to in Article 46 (1)(6), the last 3 years are taken into account, starting
   from the day of submitting the application requesting the issue of the permit;
2) the issue of the permit may lead to a potential threat to important public interest;
3) the proposed location of the tax warehouse, the state or size of the rooms, in which the tax
   warehouse is to be managed, or the state of furnishing renders it impossible to carry out an
   appropriate inspection.
    2. The competent customs office manager withdraws ex officio the permit to manage the
tax warehouse, if:
1) after receiving the permit within a period of 3 months the business activities have not been
   taken up or business activities have been stopped for more than 3 months, without
   informing the competent customs office manager;
2) the entity managing the tax warehouse engages in business activities in a manner which
   does not comply with the provisions of tax law or with the obtained permit;
3) the excise security of the entity managing the tax warehouse has lost its validity or does
   not guarantee the punctual covering or required amount of the tax commitment, and in the
   event of the entity managing the tax warehouse receiving exemption from the obligation
   to submit excise security – if this exemption has lost its validity and the entity, within the
   appropriate deadline, fails to obtain a new permit or does not submit excise security for
   the required amount;
4) any one of the conditions defined in Article 46, with reservation to (3), has been violated.
                                                39

5) within the first three months of having received the permit the entity, referred to in
   Article 46(4), has not attained, in proportion to this period, the declared minimum level of
   trade.
     3. The competent customs office manager does not withdraw the permit to manage the
tax warehouse if the entity pays the duty in arrears, tax constituting State budget income,
health and social insurance contributions within a period of 7 days, starting from the day that
the arrears were disclosed, in that in the event of the level of the tax commitment being
defined by the tax administration or tax investigation authority – within a period of 7 days,
starting from the day of delivery of the decision defining the committed tax amount.
    4. The competent customs office manager also withdraws the permit to manage the tax
warehouse on application of the entity managing the tax warehouse.
     5. In the event of the permit to manager the tax warehouse being withdrawn or the expiry
of the period, for which it was issued and failure to issue prior to the expiry of this period of a
new permit, the competent customs office manager sends information about the withdrawal or
expiry of this permit, respectively, to the competent body managing the register of regulated
activities, the registering authority, referred to in Article 13(2) of the Bio-components and
Liquid Bio-fuels Act of 25 August 2006, the concession authority or the authority granting
permission to engage in business activity.

     Article 51. 1. Prior to the day of dispatch the entity managing the tax warehouse must
inform the customs office manager of its intention to move excise goods from the tax
warehouse under the suspension arrangements for excise duties procedure; this information
should define the recipient, the type and the quantity of excise goods moved from the tax
warehouse.
     2. In the event of moving excise goods from the tax warehouse under the suspension
arrangements for excise duties procedure, the entity managing the tax warehouse must issue
an accompanying administrative document.
     3. In the event of importing excise goods which, once they are permitted to be circulated,
are directly moved to the tax warehouse under the suspension arrangements for excise duties
procedure, the entity managing the tax warehouse must issue an accompanying administrative
document and present it to the competent customs office manager together with notification
of these excise goods under the permission to circulate procedure.
     4. The entity managing the tax warehouse must keep quantity and quantity-value records
of excise goods permitting in particular the following:
1) determining the number of excise goods under the suspension arrangements for excise
   duties procedure and excluded from this procedure;
2) distinguishing the excise amount to be paid and the amount of excise duty, whose
   collection is subject to suspension in connection with the application of suspension
   arrangements for excise duties procedure;
3) defining the quantity of produced excise goods at a tax warehouse other than the tax
   warehouse, referred to in Article 46(3) and (4).
    5. Records, referred to in (4), may be kept in paper or electronic form, providing that the
competent customs office manager has been informed earlier in writing as to the manner of
keeping records. Records should be stored for inspection purposes for a period of 5 years,
starting from the end of the calendar year, on which they were drawn up.
                                                40

   6. The entity managing the tax warehouse must confirm receipt of the excise goods on the
accompanying administrative document and present it to the competent customs office
manager with the purpose of getting it officially stamped.

    Article 52. 1. Permission to exit excise goods from somebody else‟s tax warehouse
beyond the suspension arrangements for excise duties procedure by the duty payer, referred to
in Article 9(4), hereinafter referred to as “exit permit”, refers to a specific tax warehouse and
is issued for a specific period of time, not more than for three years, or for an unspecified
period of time, on application of the entity, which meets jointly the conditions defined under
Article 46(1)(2–4) and (6).
    2. The application requesting the exit permit contains data on the entity and its business
activities, in particular the name and surname or the title of the entity, its registered address or
place of residence, its National Court Register or economic activities register number, its
REGON identification number, its tax identification number (NIP), its email address and a
description of the type of excise goods, as well as the address at which the tax warehouse is
located, from which the excise goods will be exited beyond the suspension arrangements for
excise duties procedure, and the excise number of this tax warehouse. The application has
attached to it written permission from the entity managing the tax warehouse to store excise
goods at this tax warehouse of the entity submitting the application and documents
confirming the meeting of conditions, referred to in Article 46(1)(2–4) and (6).
   3. The exit permit defines in particular:
1) the registered office or residential address of the payer, referred to in Article 9(4);
2) the address at which the tax warehouse is located, from which the excise goods will be
   exited beyond the suspension arrangements for excise duties procedure, and the excise
   number of this tax warehouse;
3) the type of excise goods exited from the tax warehouse beyond the suspension
   arrangements for excise duties procedure.
    4. The payer, referred to in Article 9(4), must inform the competent customs office
manager of changes to details in the application, referred to in (1), within a period of 7 days,
starting from the day on which the change took place, with reservation to (5), (7) and (8).
   5. Notification of planned changes to details relating to the contents of the exit permit
should be made prior to the change taking place, with reservation to (7) and (8).
   6. The notification, referred to in (5), constitutes at the same time the application to
change the exit permit within the scope concerning the notified change.
   7. Change of the entity managing the tax warehouse or of the location of managing the tax
warehouse, to which the exit permit refers, or of the payer, referred to in Article 9(4),
requires, in each case, the obtaining of a new exit permit.
   8. If the payer, referred to in Article 9(4), intends to exit excise goods from a tax
warehouse belonging to another group of excise goods, referred to in Article 2(1), than the
subject of hitherto activities, he must obtain a new exit permit.
   9. The competent customs office manager refuses to issue an exit permit, in the event of:
    1) the entity applying for the exit permit does not meet the conditions, referred to in
Article 46(1), (2-4) and (6), in that in assessing the meeting of conditions, referred to in
Article 46 (1)(6), the last 3 years are taken into account, starting from the day of submitting
the application requesting the issue of the permit;
    2) the issue of the exit permit leading to a potential threat to important public interest.
                                              41

   10. The competent customs office manager withdraws ex officio the exit permit, if:
    1) after receiving the permit within a period of 3 months the business activities have not
been taken up or business activities have been stopped for more than 3 months, without
informing the competent customs office manager;
    2) the payer engages in business activities in a manner which does not comply with the
provisions of tax law or with the obtained permit;
    3) any one of the conditions defined in Article 46(1)(2–4) and (6), with reservation to
(11), has been violated.
    11. The competent customs office manager does not withdraw the exit permit if the payer
pays the duty in arrears, tax constituting State budget income, health and social insurance
contributions within a period of 7 days, starting from the day that the arrears were disclosed,
in that in the event of the tax commitment being defined by the tax administration or tax
investigation authority – within a period of 7 days, starting from the day of delivery of the
decision defining the committed amount.
    12. The competent customs office manager also withdraws the exit permit on application
of the payer, referred to in Article 9(4).
    13. The payer, referred to in Article 9(4), must submit a copy of the exit permit to the
entity managing the tax warehouse prior to the first exit of excise goods from this tax
warehouse beyond the suspension arrangements for excise duties procedure.
    14. On the last day of each month the entity managing the tax warehouse must submit to
the competent customs office manager written information containing data on excise goods
and entities, which exited these goods from the tax warehouse on the strength of exit permits.

   Article 53. 1. The competent Minister of Public Finances defines, by way of Regulation,
the detailed conditions of managing tax warehouses, including the regulations on the
functioning of tax warehouses and the place at which excise goods will be stored, taking into
account: the specifics of given excise goods and the circulation of these goods, the need to
appropriately protect excise goods from being exited from the tax warehouse in a manner
which violates binding provisions, the need to ensure the appropriate control of excise goods
and the specifics of means of transport used for the carriage of excise goods.
    2. The competent Minister of Public Finances defines, by way of Regulation, the detailed
scope of data, which should appear in the records, referred to in Article 51(4) and the manner
in which these should be kept, taking into account the need to correctly document the quantity
of excise goods and the need to define the excise amount.
    3. The competent Minister of Public Finances defines, by way of Regulation, the detailed
conditions of reloading excise goods under the suspension arrangements for excise duties
procedure beyond the tax warehouse, taking into account the specifics of given excise goods
and the means of transport used for the carriage of these goods, the need for the suspension
arrangements for excise duties to function effectively as well as the provisions of European
Community law relating to excise goods.
    4. The competent Minister of Public Finances may define, by way of Regulation,
concerning entities conducting activities at the tax warehouse involving exclusively the
storage or reloading of excise goods produced at a different tax warehouse, situations which
are different than the one defined in Article 46(5), which do not require the meeting of
conditions, referred to in Article 46(3)(1–5), taking into account the specifics of trading in
given excise goods, technical possibilities in the performance of activities relating to excise
                                                42

goods, the need to ensure the appropriate control of excise goods, the principle of safe supply
in Poland of liquid fuel stemming from separate provisions.

                                           Chapter 3
                                       Registered traders

    Article 54. 1. The competent customs office manager, on written application of the entity
meeting the conditions referred to in (2) and Article 46(1)(2–6), issues the permit for the
intra-Community acquisition of goods subject to excise duty sent with application of the duty
suspension arrangement as part of business activity, hereinafter referred to as the “permit to
acquire excise goods as a registered trader”. The given entity may obtain more than one
permit to acquire excise goods as a registered trader.
    2. The registered trader must be in possession of a legal title permitting the use of a
separate place for the collection of excise goods, hereinafter referred to as the “place of
collection of excise goods”. The permit to acquire excise goods as a registered trader may
only refer to one place of collection of excise goods.
    3. The application contains data on the entity and its business activities, in particular the
name and surname or the title of the entity, its registered address or place of residence, its
National Court Register or economic activities register number, its REGON identification
number, its tax identification number (NIP), its email address and the planned location of the
place of collection of intra-Community acquired excise goods, the proposed excise security
and information on the number of issued permits to acquire excise goods as a registered
trader.
   4. The application has attached to it the plan of the place of collection of excise goods and
documents confirming the meeting of conditions defined in (2) and Article 46(1)(2–6).
    5. The permit to acquire excise goods as a registered trader may be issued for a specific
period of time, not more than for three years, or for an unspecified period of time.
    6. The registered trader must inform the competent customs office manager of changes to
details in the application, referred to in (1), within a period of 7 days, starting from the day on
which the change took place, with reservation to (7), (9) and (10).
    7. Notification of planned changes to details relating to the contents of the permit to
acquire excise goods as a registered trader should be made prior to the change taking place,
with reservation to (9) and (10).
     8. The notification, referred to in (7), constitutes at the same time the application to
change the permit to acquire excise goods as a registered trader within the scope concerning
the notified change.
    9. Change to the place of collection of excise goods or registered trader requires, in each
case, the obtaining of a new permit to acquire excise goods as a registered trader.
     10. If the registered trader is interested in acquiring excise goods inside the Community
belonging to another group of excise goods, referred to in Article 2(1), than the subject of
hitherto activities, it must obtain a new permit to acquire excise goods as a registered trader.
    11. Appropriate application is made of Article 50 for refusal to issue, withdrawal or expiry
of the permit to acquire excise goods as a registered trader.
                                                43

    Article 55. 1. The competent customs office manager, when issuing the permit to acquire
excise goods as a registered trader, grants the entity a registered trader excise number relating
to the place of collection of excise goods.
     2. The permit to acquire excise goods as a registered trader defines in particular:
1)   the registered trader excise number relating to the place of collection of excise goods;
2)   the registered office or residential address of the registered trader;
3)   the address at which the place of collection of excise goods is located;
4)   the type of intra-Community acquired excise goods;
5)   the form and binding deadline of the excise security.

    Article 56. 1. The registered trader cannot store or issue excise goods with application of
the duty suspension arrangement.
   2. The registered trader must:
1) confirm receipt of the excise goods on the accompanying administrative document and
   present it to the competent customs office manager with the purpose of getting it officially
   stamped;
2) keep records of intra-Community acquired excise goods.
     3. The registered trader may acquire excise goods inside the Community for other entities.
    4. Records, referred to in (2)(2), may be kept in paper or electronic form, providing that
the competent customs office manager has been informed earlier in writing as to the manner
of keeping records.
   5. Records, referred to in (2)(2), should contain information particularly relating to intra-
Community acquired excise goods, the accompanying administrative document, the entity
sending the excise goods, the entity for which intra-Community acquisition of the excise
goods is performed by the registered trader. The records should be stored for inspection
purposes for a period of 5 years, starting from the end of the calendar year, in which they
were drawn up.
     6. The competent Minister of Public Finances defines, by way of Regulation:
1) conditions relating to the place of collection of excise goods acquired inside the
   Community by the registered trader,
2) the detailed scope of data, which should be contained in the records relating to the
   acquisition of excise goods within the Community, and the manner in which these are
   kept
– taking into account the need to ensure appropriate control and correct documentation of the
number of excise goods and the need to define the excise amount.

                                          Chapter 4
                                      Unregistered traders

    Article 57. 1. The competent customs office manager, upon receiving a written
application of the entity meeting the conditions, referred to in Article 46(1)(2–6), issues
permission for the one-time intra-Community acquisition of excise goods subject to excise
duty sent with application of the duty suspension arrangement as part of business activity,
hereinafter referred to as the “permit for the acquisition of excise goods as an unregistered
trader”.
                                               44

    2. The application contains data on the entity and its business activities, in particular the
name and surname or the title of the entity, its registered address or place of residence, its
National Court Register or economic activities register number, its REGON identification
number, its tax identification number (NIP), information on the type and quantity of excise
goods which will be acquired inside the Community and the excise amount to be paid, as well
as the address at which the excise goods will be collected and the proposed excise security .
    3. The application has attached to it documents confirming the meeting of conditions
defined in Article 46(1)(2–6).
   4. Appropriate application is made of Article 50 for refusal to issue and withdrawal of the
permit for the acquisition of excise goods as an unregistered trader.

    Article 58. The permit for the acquisition of excise goods as an unregistered trader
defines in particular:
1) the type of excise goods;
2) the address at which the excise goods will be collected;
3) the level of excise security.

    Article 59. 1. The unregistered trader cannot store or issue excise goods with application
of the duty suspension arrangement.
   2. The unregistered trader must:
1) prior to introducing excise goods in Poland, issue and send to the entity sending the excise
   goods, a document confirming that the excise security has been submitted or the excise
   duty has been paid in Poland, covering the excise security;
2) confirm receipt of the excise goods on the accompanying administrative document and
   present it to the competent customs office manager with the purpose of getting it officially
   stamped;
3) without being instructed by the tax administration, submit, at the corresponding customs
   office, a simplified return, in keeping with the determined model, and calculate the excise
   duty and pay it into the account of the corresponding customs chamber, within a period of
   3 days, starting from the day that the fiscal responsibility arose.
   3. The unregistered trader, prior to sending the document, referred to in (2)(1), must
obtain on this document confirmation from the competent customs office manager that the
excise security has been submitted.
    4. The competent Minister of Public Finances defines, by way of Regulation, the model
simplified return, placing explanations as to the correct manner of submitting the return,
information about the deadline and place of submitting it, a caution to the duty payer
indicating that the tax return constitutes the basis for issuing an enforceable title, and
guarantees the possibility of correctly calculating the level of excise duty.
    5. The competent Minister of Public Finances defines, by way of Regulation, the model
document confirming that the excise security has been submitted or the excise duty has been
paid in Poland, taking into account the need to guarantee information about the submitted
excise security or about the paid excise amount.

                                          Chapter 5
                                        Excise security
                                                45

    Article 60. 1. The entity managing the tax warehouse, the registered trader, the
unregistered trader, the duty payer, referred to in Article 74(1), the intermediary entity and the
tax representative must submit excise security covering the amount of the tax commitment
which had arisen or which could arise.
   2. Excise security may be submitted for a specified or unspecified period of time.
   3. On application of the entities, referred to in (1), the competent customs office manager
accepts the excise security submitted by another person in the forms defined in Article
64(1)(1–3).
    4. In the event of moving excise goods in Poland from the tax warehouse managed by an
entity with an obligation to submit excise security to the tax warehouse managed by another
person, the tax commitment of the entity managing the tax warehouse may be, on its
application, covered by the universal security of that other person, submitted in Poland in the
forms defined under Article 64(1)(1–3), on approval of that person.
    5. The other person, referred to in (3) and (4), is liable with his entire property for the tax
commitment of the entity with an obligation to submit the excise security, jointly and
severally with that entity up to the level of tax commitment constituting the object of security.

    Article 61. 1. The competent customs office manager relieves the entity managing the tax
warehouse of the obligation to submit the excise security, if this entity meets the following
conditions:
1) has its registered office or place of residence in Poland;
2) has been applying the suspension arrangements for excise duties procedure for at least a
   year;
3) his financial situation and the property he holds guarantee that he will meet tax
   commitments;
4) he is not in arrears in the payment of duty and tax constituting State budget income and
   health and social insurance contributions;
5) has undertaken to pay, on first written demand of the competent customs office manager,
   the excise amount to be paid arising from tax commitment.
    2. The provisions of (1)(2) and (3) do not apply to farmers managing tax warehouses,
where, in keeping with the Bio-components and Liquid Bio-fuels Act of 25 August 2006, only
activities involving the production for one‟s own use of ester or pure vegetable oil takes place,
referred to in Article 2(1)(11)(c) of this Act.
    3. Exemption, referred to in (1), is granted for a specific period of time, not more than for
two years, by way of decision, on written application of the entity. On written application of
the exempted entity the exemption may be prolonged, by way of decision, for subsequent
periods of not more than two years.
    4. The application, referred to in (3), should contain data on the entity and its business
activities, in particular the name and surname or the title of the entity, its residential address
or registered office, the anticipated maximum tax commitment subject to excise security and
the deadline of the exemption to be issued or prolonged. Furthermore, the application
requesting exemption contains a description of the type of activities conducted by the entity at
the tax warehouse.
    5. Documents confirming that the conditions defined under (3) have been met are attached
to the applications, referred to in (1).
                                                46

   6. Exemptions, referred to in (1), do not apply in the event of carriage of excise goods
under the suspension arrangements for excise duties procedure or subject to exemption from
excise duty because of their purpose.
    7. Exemptions, referred to in (1), may be used in the event of transporting by pipeline
petroleum product excise goods between tax warehouses managed by the same entity in
Poland.
    8. The entity exempted from the obligation to submit the excise security must notify the
competent customs office manager of changes to details in the application requesting
exemption from the obligation to submit the excise security or in the application requesting
the exemption to be prolonged, within 7 days, starting from the day on which the change took
place.
    9. The competent customs office manager withdraws the exemption, referred to in (1), if
the entity managing the tax warehouse violates any of the conditions defined in (1)(1), (3) or
(4), with reservation to (2).
    10. The competent Minister of Public Finances defines, by way of Regulation, the manner
of documenting that the conditions defined in (1) have been met, including the kind of
documents confirming that they have been met, model applications, referred to in (3), and the
detailed manner of granting, prolonging and withdrawing the extension, referred to in (1),
taking into account the need to appropriately secure the tax commitments and the need to
guarantee information flow about exemptions from the obligation to submit excise security.

     Article 62. 1. In order to guarantee the covering of tax commitments:
1)   of the entity managing the tax warehouse,
2)   of the registered trader,
3)   of the intermediary, and
4)   the duty payer, referred to in Article 74(1), or the tax representative – on their written
     application
– universal security is submitted, with reservation to (8).
   2. The competent customs office manager determines the level of the universal security, in
consideration of (3), at a level equal to:
1) the level of tax commitments, when this amount may be calculated exactly when
   accepting the security;
2) the estimated maximum amount stemming from tax commitments which could arise.
    3. The level of universal security submitted by the intermediary is determined as an
amount equivalent to the maximum level of the monthly tax commitment which could arise in
the event of violating the conditions of exempting excise goods from excise duty, referred to
in Article 27.
    4. In order to determine the level of excise security the excise duty rate binding on the day
that the fiscal responsibility arose is applied, but if this cannot be determined on that day it is
determined on the day that the security is submitted; if, however, excise duty rates change
during the procedure on suspension arrangements for excise duties, the competent customs
office manager amends the level of the excise security and informs the entity which had
submitted the security.
   5. In the event of accepting universal security on tax commitments, whose level may
change with time, entities, referred to in (1), must carry out a preliminary estimation of the
                                              47

amount of such security at a level permitting these tax commitments to be covered at any
time.
    6. The intermediary must update the level of universal security in a manner guaranteeing
the covering of tax commitments which may arise at any time.
   7. Prior to applying the universal security, in cases defined under (1)(1), (2) and (4), the
competent customs office manager determines the conditions of using it.
    8. On application of the entity managing the tax warehouse, which meets the conditions
contained in Article 61(1)(1), (3) and (4), the competent customs office manager expresses
approval to submit a lump-sum security in order to secure the performance of tax
commitments arising from the production of excise goods at the tax warehouse and the
introduction of excise goods to the tax warehouse. The provisions of Article 61(3–5), (8) and
(9) and the provisions issued under Article 61(10) concerning the method of documenting that
the conditions in Article 61(1) have been met, including the type of documents confirming
that they have been met, apply appropriately.
    9. The competent customs office manager determines the level of the lump-sum security
at 30% of the level of the universal security, which must be submitted by the entity managing
the tax warehouse, applying to submit the lump-sum security.
    10. The competent customs office manager determines the level of the lump-sum security
every 6 months, starting from the day of submitting the application requesting permission to
submit it. The competent customs office manager may perform the first renewed calculation
of the level of the lump-sum security prior to the passage of 6 months from the day of
submitting the application.

    Article 63. 1. The competent Minister of Public Finances defines, by way of Regulation,
the detailed manner of determining the level of universal security and lump-sum security, the
detailed manner of applying universal security and lump-sum security, the detailed manner of
covering with the excise security excise goods relieved of excise duty because of their
purpose, referred to in Article 27(5)(1), and the manner and frequency of updating the
universal security, referred to in Article 62(6), taking into account the need to appropriately
secure excise dues.

   2. The competent Minister of Public Finances may define, by way of Regulation:
1) cases, other than those defined in Article 60(4), in which the tax commitments of entities,
   referred to in Article 60(1), may be, on their application, covered by the universal security
   of another person, on approval of that person,
2) cases, other than those defined in Article 62(8), in which the lump-sum security may be
   submitted,
3) cases in which application is made of a lower, than defined under the Act, level of excise
   security for certain excise goods, and may determine this level,
4) cases in which the customs office manager does not determine the condition of using the
   universal security prior to its application
– taking into account the need to appropriately secure excise dues, guaranteeing the efficient
application of excise security, and simplifying the circulation of excise goods..

   Article 64. 1. The excise security may be submitted in the following forms:
1) a cash deposit;
2) a bank or insurance guarantee;
                                              48

3) a cheque confirmed by a national bank of the issuer of the cheque;
4) another document which holds payment value.
   2. Concerning intra-Community delivery and intra-Community acquisition the excise
security should be binding in the European Community.
     3. The competent Minister of Public Finances defines, by way of Regulation:
1)   the manner and place of submitting the excise security,
2)   types of other documents with payment value, which may be accepted as excise security,
3)   manner of confirming acceptance of the excise security,
4)   mode forms for confirming acceptance of the excise security
 – taking into account the need to appropriately secure the meeting of excise duty tax
commitments.

   Article 65. The cash deposit is submitted in Polish currency, unless a specific provision
constitutes otherwise.

    Article 66. 1. The guarantor should undertake in writing to pay, jointly and severally with
the duty payer, its legal successors or other persons, unconditionally and irrevocably, at every
demand of the competent customs office manager, the secured amount of tax commitment
together with interest in arrears, if such payment becomes mature.
    2. The guarantor is liable with its entire property, jointly and severally with the duty
payer, its legal successors or other persons, for the guaranteed tax commitment together with
interest in arrears – up to the guaranteed amount and within the deadline indicated in the
guarantee.
    3. The guarantor may only be a legal entity whose registered office is in the European
Community or in a Member State of the European Free Trade Association (EFTA) – parties to
the European Economic Area agreement, the branch of a foreign bank and the main branch of
an insurance company, which engage in banking or insurance activities in Poland, in the
understanding of the provisions, respectively, of the Banking Act of 29 August 1997 (Journal
of Laws, 2002, No 72(665), as amended8)) or the Insurance Activities Act of 22 May 2003
(Journal of Laws, No 124(1151), as amended9)), and:
1) which, on the basis of these provisions, holds authority to grant bank or insurance
   guarantees throughout Poland;
2) which submits to the competent Minister of Public Finances written notification of its
   intention to grant bank or insurance guarantees, submitted as excise security.
    4. The competent Minister of Public Finances, in agreement with the competent authority
for the supervision of the financial market announces, by way of Notice, the list of guarantors
referred to in (3).
    5. The competent Minister of Public Finances may define, by way of Regulation, models
of bank and insurance guarantees submitted as excise security, taking into account the need
for the guarantor to implement the obligations, referred to in (1).

    Article 67. 1. Entities with the obligation to submit excise security may choose the form
of insurance from amongst those defined in Article 64(1).
   2. Excise security may be submitted in a number of forms defined in Article 64(1), on
condition that they jointly cover the entire required excise security.
                                               49

    Article 68. 1. The competent customs office manager refuses to accept the excise security,
if he determines that it cannot guarantee to cover the due amount of tax commitment.
    2. The competent customs office manager refuses to accept the excise security with a
defined validity date, if it fails to effectively cover within the validity date the tax
commitment.

    Article 69. 1. If the competent customs office manager establishes that the submitted
excise security does not guarantee that the due amount will be covered or will not be covered
within the validity date of the tax commitment, he must demand that the security be
prolonged, or that additional or new excise security be submitted.
   2. An entity which submits excise security for a specific period of time must, at the latest
one month prior to the expiry of the deadline, document that it has been prolonged or submit a
new excise security.

   Article 70. 1. If the defined or declared excise amount is not paid in on time, the tax
administration covers it with the submitted excise security.
    2. If, with the purpose of covering the excise amount which has not been paid on time, it is
necessary to sell, in the understanding of the provisions of the Act of 23 April 1964 – Civil
Code (Journal of Laws, No 16(93), as amended10)), rights from documents, with payment
value, submitted as excise security, for the purpose of the sale application is made of the
provisions of the Administrative Enforcement Proceedings Act of 17 June 1966 (Journal of
Laws of 2005, No 229(1954), as amended11)).
    3. In the case, referred to in (1), interest in arrears on the payment of tax is calculated up
to the day that the excise amount is covered.

    Article 71. 1. Excise security cannot be returned until the tax commitment expires or will
no longer arise.
    2. For purposes connected with the settling of excise security, the competent customs
office manager establishes that the tax commitment has expired or will no longer arise, also
on the basis of the accompanying administrative document in electronic form with
confirmation of receipt of excise goods moved in Poland, sent via the data communication
system, referred to in Article 44(1), particularly if the accompanying administrative document
sent in this form does not raise any doubts.
   3. If the tax commitment expires in part or will no longer arise up to the part of the
secured amount, the submitted security is immediately returned in part to the entity, which
submitted it, on its application.
   4. If the tax commitment expires or will no longer arise, the excise security is returned on
application of the entity which submitted it, within a period of 7 days.
    5. The competent Minister of Public Finances defines, by way of Regulation, the detailed
conditions and manner of returning the excise security, taking into account the need to secure
the performance of excise duty tax commitments.

   Article 72. No interest is eligible on the reimbursed excise security.

                                          Chapter 6
                                 Excise goods with duty paid
                                              50

    Article 73. 1. Intra-Community delivery or intra-Community acquisition, for the needs of
business activities carried out in Poland, of excise goods, on which excise duty was paid, are
performed on the basis of the simplified accompanying document, with reservation to
Article 45(6).
    2. The simplified accompanying document may be replaced by a commercial document if
this document contains the same data as required in the case of the simplified accompanying
document. Concerning the commercial document which replaces the simplified
accompanying administrative document, application is made respectively of the provisions on
simplified accompanying administrative documents.
   3. The competent Minister of Public Finances may define, by way of Regulation, the
model and manner of circulating the simplified accompanying document cards, as well as the
conditions, according to which the commercial document may replace the simplified
accompanying document, taking into account the need to guarantee information on the
quantity of acquired excise goods and the excise amount to be paid.

    Article 74. 1. A duty payer who acquires within the Community excise goods with duties
paid in the Member State for the needs of the business activity performed in the Member
State, must:
1) prior to bringing the excise goods into Poland announce the planned intra-Community
   acquisition to the competent customs office manager and submit the excise security;
2) confirm receipt of the excise goods on the simplified accompanying document and issue
   and attach to the returned simplified accompanying document the document confirming
   that the excise security has been submitted or that the excise duty has been paid in Poland;
3) without being instructed by the tax administration, submit, to the corresponding customs
   office, a simplified return, in keeping with the determined model, and calculate the excise
   duty and pay it in Poland into the account of the corresponding customs chamber, within a
   period of 10 days, starting from the day that the fiscal responsibility arose.
4) keep records of intra-Community acquired excise goods.
    2. An appropriate model, defined in the provisions published on the basis of Article 59(5),
is used with the document confirming that the excise security has been submitted or the excise
duty has been paid in Poland.
    3. The duty payer, referred to in (1), prior to attaching to the returned simplified
accompanying document the document confirming that the excise security has been submitted
or that the excise duty has been paid in Poland, referred to in (1)(2), must obtain on this
document confirmation from the competent customs office manager that the excise security
has been submitted or the excise duty has been paid.
  4. Concerning the return, referred to in (1)(3), application is made appropriately of the
model simplified return, defined in the provisions published on the basis of Article 59(4).
   5. The provisions of (1)(1), (3) and (4) and of (4) apply appropriately to cases of intra-
Community acquisition of excise goods not mentioned in Annex 2 of the Act, with an excise
duty rate other than zero duty.
   6. The provisions of (1)(1) and (3) and (4) apply appropriately to intra-Community
acquisition, by a natural person, of excise goods earmarked for trade purposes in the
understanding of Article 33.
                                               51

    7. Records, referred to in (1)(4), may be kept in paper or electronic form, providing that
the competent customs office manager has been informed earlier in writing as to the manner
of keeping records.
    8. Records, referred to in (1)(4), should contain information particularly relating to intra-
Community acquired excise goods, the simplified accompanying document, the entity sending
the excise goods. The records should be stored for inspection purposes for a period of 5 years,
starting from the end of the calendar year, in which they were drawn up.
    9. The competent Minister of Public Finances defines, by way of Regulation, the detailed
scope of data, which should appear in the records of the acquired excise goods, referred to in
(1)(4), and the manner in which these are kept, taking into account the need to guarantee
information on the quantity of acquired excise goods and the excise amount to be paid.
    10. The competent Minister of Public Finances defines, by way of Regulation, the model
of the planned intra-Community acquisition application, referred to in (1)(1), taking into
account the need to guarantee information on the quantity of acquired excise goods and the
excise amount to be paid.

    Article 75. 1. If a natural person is interested in acquiring excise goods inside the
Community, not for the purposes of the business activity, with duty paid in the Member State
and these goods are to be delivered to Poland, this kind of acquisition may be performed
exclusively through the mediation of a tax representative. In this situation it is accepted that
the intra-Community acquisition is not performed by that natural person but by the tax
representative.
   2. The tax representative in Poland is designated by the seller.

    Article 76. 1. The tax representative may be exclusively an entity, meeting jointly the
conditions, referred to in Article 46(1)(2–6), whom the competent customs office manager has
issued a permit to act as a tax representative.
   2. The tax representative must:
1) calculate the excise duty and pay the due excise amount;
2) submit the tax return to the competent customs office manager;
3) keep records of excise goods delivered to Poland by the seller, whose representative he is.
    3. Records, referred to in (2)(3), may be kept in paper or electronic form, providing that
the competent customs office manager has been informed earlier in writing as to the manner
of keeping records.
    4. Records, referred to in (2)(3), should contain information particularly relating to intra-
Community acquired excise goods, the entity sending the excise goods, the entity for which
intra-Community acquisition of the excise goods is performed by the tax representative. The
records should be stored for inspection purposes for a period of 5 years, starting from the end
of the calendar year, in which they were drawn up.
    5. The competent Minister of Public Finances defines, by way of Regulation, the detailed
scope of data, which should appear in the records, defined in (2)(3), and the manner in which
these are kept, taking into account the need to guarantee information on the quantity of excise
goods acquired through the mediation of the tax representative, and the excise amount to be
paid.
                                                52

    Article 77. 1. Permission to act as a tax representative is issued for a specific period of
time, not more than for three years, or for an unspecified period of time, by the competent
customs office manager, on application of the seller.
     2. The application, referred to in (1), contains data on the seller and his business activity,
in particular the name and surname or the title of the seller, his registered address or place of
residence, a description of the type of business activities, identification details of the tax
representative, in particular the name and surname or the title of the tax representative, his
registered address or place of residence, the National Court Register number or economic
activities register number, his REGON identification number and tax identification number
(NIP), his email address, as well as the type of excise goods which will be acquired within the
Community. The seller must attach to the application a declaration expressing approval by the
tax representative to perform activities of this nature and documents confirming that the tax
representative has met the conditions, referred to in Article 46(1)(2-6).
   3. The permission to act as tax representative defines in particular:
1) the registered office or residential address of the tax representative;
2) the name and surname or the title and address of the registered office or the place of
   residence of the seller;
3) the type of excise goods acquired within the Community;
    4. The tax representative must inform the competent customs office manager of changes
to details in the application, referred to in (1), within a period of 7 days, starting from the day
on which the change took place, with reservation to (5), (7) and (8).
     5. Notification of planned change to details contained in the permission to act as tax
representative should be made prior to the change taking place, with reservation to (7) and
(8).
   6. The notification, referred to in (5), constitutes at the same time the application to
change the permit within the scope concerning the notified change.
    7. Change of tax representative or seller, defined in the permission to act as tax
representative requires, in each case, the obtaining of a new permit.
    8. If the tax representative intends to purchase excise goods within the Community
belonging to another group of excise goods, referred to in Article 2(1), than the subject of
hitherto activities, it must obtain a new permit to act as tax representative.
    9. Appropriate application is made of Article 50 for refusal to issue, withdrawal or expiry
of the permit to act as tax representative.

   Article 78. 1. Concerning intra-Community delivery of excise goods, on which excise
duty was paid in Poland, the following are entitled to reimbursement of excise duty:
1) the duty payer who delivered these excise goods within the Community, or
2) the entity which acquired these excise goods from the duty payer and delivered them
   within the Community
– on written application submitted to the competent customs office manager prior to the start
of intra-Community delivery together with documents confirming the payment of excise duty
in Poland.
    2. Concerning the export of excise goods, on which excise duty was paid in Poland, the
following are entitled to reimbursement of excise duty:
1) the duty payer who exported these excise goods, or
                                             53

2) the entity which acquired these excise goods from the duty payer and exported them
– on written application submitted to the competent customs office manager within a year
from the day of export together with the documents, referred to in (4).
    3. The duty payer or entity, referred to in (1), applying for reimbursement of excise duty
must, once the intra-Community delivery has taken place, submit to the competent customs
office manager:
1) documents accompanying the carriage of excise goods;
2) confirmation of receipt of the excise goods by the recipient from the Member State of the
   European Community on the simplified accompanying document or on a copy of the
   commercial document, referred to in Article 73(2), or on the document, referred to in
   Article 45(6).
3) the document confirming payment of excise duty or that the return has been submitted in
   the Member State of the European Community or that the security has been submitted or a
   document confirming that excise duty is not required in that State.
   4. The duty payer or entity, referred to in (2), applying for reimbursement of excise duty
must submit to the competent customs office manager:
1) documents confirming payment of excise duty in Poland;
2) documented confirmation of exit of excise goods from the territory of the country beyond
   the customs area of the European Community, in the understanding of Article 3(1) of
   Council Regulation (EEC) No 2913/92 of 12 October 1992 establishing the Community
   Customs Code, in a manner in keeping with the provisions of customs law.
    5. There is no reimbursement of excise duty for the intra-Community delivery or export of
excise goods with excise marks, as well as for excise duty amounts below the minimum
reimbursement amount.
   6. The competent customs office manager checks the excise duty reimbursement
application against documents, referred to in (1), (3) and (4).
    7. The competent Minister of Public Finances defines, by way of Regulation, the manner
and deadline for reimbursing the excise duty, referred to in (1) and (2), the minimum
reimbursable amount and the model excise duty reimbursement application, taking into
account.
1) the need to guarantee information on the quantity of excise goods delivered within the
   Community or exported;
2) the need to correctly define the reimbursable amount of excise duty;
3) the economic effectiveness of reimbursing the excise duty.

    Article 79. 1. Concerning complaints relating to excise goods with paid excise duty,
recognised by the entity managing the tax warehouse, this entity may reduce the excise
amount which must be paid, by the excise amount paid on the complained about goods.
   2. The entity managing the tax warehouse may reduce the amount, referred to in (1), in the
event. of:
1) using advertising excise goods for the production of excise goods;
2) destruction of the advertising excise goods in the tax warehouse.

                                         Chapter 7
                                          Permits
                                                54

      Article 80. 1. The issue, refusal to issue, change or withdrawal of permits:
1)   to manage the tax warehouse,
2)   to acquire excise goods as a registered trader,
3)   to acquire excise goods as an unregistered trader,
4)   to act as tax representative,
5)   to engage in the business activities of an intermediary entity,
6)   for exit
– takes place by way of decision.
     2. The competent Minister of Public Finances defines, by way of Regulation:
1) the detailed manner of issuing and withdrawing permits, referred to in (1);
2) the model applications for the issue of permits, referred to in (1), as well as the manner of
   documenting that the conditions required for the issue of the given permit have been met.
    3. The competent Minister of Public Finances, when issuing the Regulation, referred to in
(2), takes into account:
1) the need to obtain sufficient information about the duty payer, in particular information
   which impacts the determining of the excise security and the requirement that the entity
   operates correctly;
2) the need to guarantee the free flow of excise goods.

                                         Chapter 8
              Standards of permissible losses of excise goods and permissible standards of
                                 consumption of excise goods

         Article 81. 1. The competent customs office manager defines, by way of decision, for
     given entities, on their application:
 1) the standards of permissible losses of excise goods;
 2) permissible standards of consumption of alcoholic beverages:
    a) coming under the suspension arrangements for excise duties procedure, in the event of
using them for the production of other goods,
    b) referred to in Article 27(3)(3), in the event if them being used by the using entity.
    2. The competent customs office manager, by way of decision, issued ex officio to given
entities:
1) may determine:
 a) the standards of permissible losses of excise goods,
 b) permissible standards of consumption of excise goods
– referred to in (1);
2) determines the permissible standards of consumption of excise goods defined in Article
85(2), which are beyond the suspension arrangements for excise duties procedure and with an
excise duty rate of zero, in the event of using them for the production of other goods.
    3. If the duty payer holds more than one permit for managing tax warehouses, the
standards of permissible losses of excise goods or the permissible standards of consumption
of excise goods, referred to in (1) and (2), are determined separately for each tax warehouse.
    4. The competent customs office manager, in determining the standards of permissible
losses of excise goods and the permissible standards of using them, takes into account:
                                                55

1) the type of excise goods;
2) the specifics of each stage of production and of other activities, during which losses of
    excise goods may occur;
3) the technical and technological conditions surrounding the given case;
4) the maximum permissible standards of losses of excise goods defined in the Regulation
    issued on the basis of (5). 5. The competent Minister of Public Finances defines, by way
of Regulation:
1) the maximum standards of permissible losses of certain excise goods arising whilst
   carrying out certain activities, during which losses of excise goods may occur;
2) the detailed scope and manner of determining the standards of permissible losses of excise
   goods or permissible standards of consumption of excise goods;
3) the manner of settling losses of excise goods, in particular when starting activities, during
   which losses of excise goods may occur, or when changing the technical or technological
   conditions of performing these activities, up to the time that in these cases the entity
   managing the tax warehouse determines the standards of permissible losses of excise
   goods.
    6. The competent Minister of Public Finances, when issuing the Regulation, referred to in
(5), takes into account:
1) the type of excise goods;
2) the specifics of each stage of production and of other activities, during which losses of
   excise goods may occur;
3) the technical and technological conditions surrounding the given case.

                                           Section IV

                               Excise goods – detailed provisions

                                         Chapter 1
                                Energy products and electricity

    Article 82. 1. The following goods are regarded as energy products, in the understanding
of the Act:
1)   those falling within CN codes from 1507 to 1518 00, if designated for fuel oils;
2)   those falling within CN codes 2701, 2702 and from 2704 to 2715;
3)   those falling within CN codes 2901 and 2902;
4)   those falling within CN code 2905 11 00, which are not of synthetic origin, if designated
     for fuel oils;
5)   those falling within CN code 3403;
6)   those falling within CN code 3811;
7)   those falling within CN code 3817;
8)   those falling within CN codes 3824 90 00 and 3824 90 97, if designated for fuel oils;
9)    remaining goods, excluding substances used for marking and dyeing, referred to in
     Article 86(1), earmarked for use, offered for sale or used as motor fuel or as an addition or
     admixture for motor fuels – irrespective of the CN code;
10) remaining goods being hydrocarbons, with the exclusion of peat, earmarked for use,
    offered for sale or used as heating fuel or as an addition or admixture to heating fuels –
    irrespective of the CN code.
                                               56

    2. Motor oils, in the understanding of the Act, are energy products earmarked for use,
offered for sale or used as fuel for combustion engines.
    3. Motor oils, in the understanding of the Act, are energy products earmarked for use,
offered for sale or used as fuel oils, with the exclusion of goods, referred to in (2).
   4. Bio-components are bio-components in the understanding of the Bio-components and
Liquid Bio-fuels Act of 25 August 2006.

   Article 83. 1. The production of energy products, in the understanding of the Act, is the
production or processing of energy products, including the mixing or reclassifying of fuel
components, the bottling of liquefied gas in gas cylinders, and the dyeing and marking of
energy products.
    2. The production of energy products is not recognised as such when a small quantity of
energy products is obtained as a by-product whilst producing goods which are not excise
goods. By small quantity one means the quantity of energy products, if revenue attained from
their sale constitutes not more than 0.1% of total revenue, in the understanding of the
Corporate Income Tax Act of 15 February 1992 (Journal of Laws, 2000, No 54(654), as
amended12)), attained through business activities performed for the previous accounting year
or declared in the case of commencement of business activities.
    3. The entity which attains, as a by-product, a small quantity of energy products, referred
to in (2), must:
1) inform in writing the competent customs office manager of the type of business activity
   and the type of goods attained – within a period of 14 days from the day of attaining for
   the first time these goods;
2) present written information to the competent customs office manager on the attained
   revenue, with indication of the number of obtained goods, referred to in (2), as well as the
   level of revenue attained from the sale of these goods – at the end of each accounting year.
    4. The production of energy products is not recognised as such when motor oils or heating
fuel have added to them or mixed quantities constituting not more than 0.2% of the volume of
the energy product containing these additives, with the exception of dyeing or marking energy
products, referred to in Article 86(1).

    Article 84. 1. The basis for taxing energy products is their quantity, depending on the type
of goods, expressed in litres of ready goods at a temperature of 15 oC or in kilograms of ready
goods, or gross energy value, expressed in gigajoules (GJ).
  2. The basis for taxing energy products is their quantity, expressed in mega watt hours
(MWh).
    3. The use of fuel oils, referred to in (4), contrary to their purpose entails the holding of
these or their sale by means of a container attached to a fuel gauge.
   4. The basis of taxation in the event of use for propulsion purposes, with the exception of
navigation purposes:
1) of heating oils,
2) of gas oils for navigation
– is their quantity, expressed in litres, which may be stored in a container attached to a fuel
gauge or in a vehicle tank or other means of transport.
                                              57

    5. A fuel gauge, defined under separate provisions, is a gauge installation used for
refuelling motor vehicles, small boats and small aeroplanes.

   Article 85. 1. Excise rates for energy products are as follows:
1) coal and coke designated for heating purposes falling within CN codes 2701, 2702 and
   2704 00 – PLN 1.18/1 gigajoule (GJ);
2) petrol falling within CN codes 2710 11 45 or 2710 11 49 – PLN 1565.00/1000 litres;
3) products arising from the mixing of petrol, referred to in point (2), with bio-components,
   containing more than 2% bio-components, produced at the tax warehouse and meeting
   quality requirements defined under separate provisions – the excise rate defined in point
   (2), reduced by PLN 1.565 on every litre of bio-components added to this petrol, in that
   the amount of due excise cannot be more than PLN 10.00/1000 litres;
4) aviation gasoline, falling within CN code 2710 11 31, gasoline type jet fuel, falling within
   CN codes 2710 11 70 and remaining petroleum within CN code 2710 19 25 – PLN
   1822.00/1000 litres;
5) jet fuel, falling within CN code 2710 19 21 – PLN 1072.00/1000 litres;
6) gas oil, falling within CN code 2710 19 41 – PLN 1048.00/1000 litres;
7) products arising from the mixing of gas oils, referred to in point (6), with bio-components,
   containing more than 2% bio-components, produced at the tax warehouse and meeting
   quality requirements defined under separate provisions – the excise rate defined in point
   (6), reduced by PLN 1.048 on every litre of bio-components added to this gas oil, in that
   the amount of due excise cannot be more than PLN 10.00/1000 litres;
8) bio-components constituting self-contained fuel, produced at the tax warehouse and
   meeting quality requirements defined under separate provisions, earmarked as fuel for
   combustion engines, irrespective of the CN code – PLN 10.00/1000 litres;
9) gas oils used for heating purposes, falling within CN codes from 2710 19 41 to 2710 19
   49, dyed red and marked in keeping with detailed provisions – PLN 232.00/1000 litres;
10) heating oils, falling within CN codes from 2710 19 51 to 2710 19 69:
   a) of which 30% or more in terms of volume is distilled at 350C or whose density at
      15C is lower than 890 kilograms/cubic metre, dyed red and marked in keeping with
      detailed provisions – PLN 232.00/1000 litres,
   b) remaining, not subject to dyeing or marking in keeping with detailed provisions – PLN
      60.00/1000 kilograms;
11) lubricating oils, falling within CN codes from 2710 19 71 to 2710 19 99, with the
   exclusion of goods, falling within CN code 2710 19 85 (white mineral oils, liquid
   paraffin) and plastic lubricants, falling within CN code 2710 19 99 – PLN 1180.00/1000
   litres;
12) gases earmarked as fuel for combustion engines:
   a) (wet) natural gas and remaining gas hydrocarbons, falling within CN code CN 2711
       and aliphatic gas hydrocarbons, falling within CN code 2901:
   – liquefied – PLN 695.00/1000 kilograms,
   – in gas state – PLN 100.00/1000 kilograms,
   b) produced at the tax warehouse and meeting quality requirements defined under
      separate provisions:
                                               58

   – biogas, irrespective of the CN code – PLN 0,
   – hydrogen and bio-hydrogen, falling within CN code 2804 10 00 – PLN 0;
13) (wet) natural gas and remaining gas hydrocarbons, falling within CN code 2711,
    earmarked for heating purposes – PLN 1.18ł/1 gigajoule (GJ);
14) remaining motor fuels – PLN 1822.00/1000 litres;
15) remaining heating fuels:
   a) when their density at 15 C is:
   – less than 890 kilograms/cubic metres – PLN 232.00/1000 litres,
   – equivalent to, or higher than 890 kilograms/cubic metres – PLN 60.00/1000 litres,
   b) gas fuels – PLN 1.18/gigajoules (GJ).
   2. The excise rate for energy products other than those defined in (1)(1–13), earmarked for
purposes other than heating purposes, as additions or admixtures to heating fuels, fuel for
combustion engines or as an addition or admixture to motor oils, amounts to PLN 0.
   3. The excise rate for electricity is PLN 20.00 per mega watt hour (MWh).
   4. In the event of:
1) using products, referred to in (1)(9), (10) and (15), for combustion engines, using them
   when they do not meet the conditions defined in the detailed provisions in terms of correct
   marking and dyeing, as well as holding them in a container attached to a fuel gauge or
   selling them from such a container, the rate of PLN 1822.00/1000 litres applies
   appropriately, and in the event of their density at 15 C being equivalent to, or higher than
   890 kilograms/cubic metres – PLN 2047.00/1000 kilograms;
2) exceeding the permissible standards of consumption, referred to in Article 81(2)(2),
   determined for excise goods defined in (2), which are beyond the suspension
   arrangements for excise duties procedure in the event of using them for the production of
   other goods, application is made appropriately of the rate defined in (1)(14) or (15).
    5. The seller of the excise goods not subject to exemption from excise duty because of
their purpose, defined under (1)(9), (10) and (15), must in the event of selling to:
1) legal persons, organisational units without legal personality and natural persons engaged
   in business activity – obtain from the acquirer a declaration stating that the acquired goods
   are earmarked for heating purposes or will be sold for heating purposes, authorising the
   application of excise duty rates defined in (1)(9), (10) and (15); the clearly signed
   declaration may be submitted on the issued invoice with indication as to the kind, type and
   quantity of held heating devices and the place (address) where these devices are located,
   but if it is submitted separately it should contain data on the acquirer, a description of the
   quantity and type of purpose of the acquired goods, with indication as to the kind, type
   and quantity of held heating devices and the place (address) where these devices are
   located, as well as the date and place of submitting this declaration, a clear signature of
   the person submitting the declaration, which should be attached to a copy of the invoice;
2) natural persons who do not engage in business activities – obtain from the acquirer a
   declaration stating that the acquired goods are earmarked for heating purposes, authorising
   the application of excise duty rates defined in (1)(9), (10) and (15); the declaration should
   be attached to a copy of the receipt or a copy of another document of sale issued by the
                                                 59


   acquirer, but if this is not possible, the seller must enter on the declaration the number and
   date of issuing the document confirming the sale.
   6. The declaration, referred to in (5)(2), should contain:
1) the name and surname of the acquirer, his ID card number or the name and number of
   another document proving the acquirer‟s identity;
2) the address at which the acquirer is registered and his residential address, if it is not the
   same as the address at which he is registered;
3) a description of the quantity, type and purpose of the acquired goods;
4) a description of the number of held heating devices, with which these goods may be used
   and the places (addresses), where these devices are located;
5) an indication of the kind and type of heating device;
6) the date and place of drawing up the declaration and a clear signature of the person
   submitting the declaration.
    7. A natural person not engaged in business activities and acquiring excise goods defined
under (1)(9), (10) and (15) must present to the seller a document, referred to in (6)(1), in order
to confirm its identity.
    8. The seller of excise goods, defined in (1)(9), (10) and (15), to natural persons not
engaged in business activities, must refuse to sell these goods when the person acquiring these
goods refuses to present the document, referred to in (6)(1), when the details on the
declaration are incomplete, not clear or do not comply with the details in the document,
referred to in (6)(1).
    9. The importer and the entity carrying out intra-Community acquisition of excise goods,
defined in (1)(9), (10) and (15), submits to the competent customs office manager a
declaration stating that the imported goods will be earmarked for heating purposes or sold for
heating purposes, authorising the application of excise duty rates defined in (1)(9), (10) and
(15); the declaration should contain details on the importer or the entity carrying out intra-
Community acquisition, a description of the quantity, type and purpose of the acquired goods,
the date and place of submitting this declaration and a clear signature of the person submitting
the declaration; copies of the submitted declaration should be stored by the importer and the
entity carrying out intra-Community acquisition, starting from the end of the calendar year, in
which they were drawn up, and made available for inspection purposes.
    10. Concerning the import of excise goods, defined in (1)(9), (10) and (15), if the customs
office manager who considers the customs declaration under the permission to circulate
procedure, is different than the competent customs office manager for excise duty in Poland
for the importing entity, the importer must draw up and submit to its corresponding customs
office manager for excise duty in Poland, a monthly list of declarations, referred to in (9), by
the 25th day of the month following the month, in which the customs declaration was
submitted.
    11. The seller of excise goods, defined in (1)(9), (10) and (15) draws up and submits to the
competent customs office manager, by the 25th day of the month following the month, in
which the sale took place, a monthly list of declarations, referred to in (5); originals of
declarations should be stored by the seller for a period of 5 years, starting from the end of the
calendar year, in which they were drawn up, and be made available for inspection purposes.
   12. The monthly list of declarations should contain:
1) concerning the seller, referred to in (11):
                                                60

   a) the name and surname or the title and address of the registered office or the place of
      residence of the entity submitting the list;
   b) the quantity and type and purpose of the goods, to which the declaration refers,
   c) the date on which the declaration as submitted,
   d) the date and place of drawing up the list and a clear signature of the person drawing up
      the list,
   e) a description of the number of heating devices held by the acquirers, stemming from
      the declarations submitted by them,
   f) the place (address) where the heating devices indicated in the declarations are located;
2) concerning the importer, referred to in (10), details, referred to in point (1)(a–d).
    13. In the event of failure to meet the conditions defined in (5–12) application is made of
the excise duty rate, defined in (4)(1).

   Article 86. 1. The following must be marked and dyed:
1) heating oils, falling within CN codes from 2710 19 51 to 2710 19 69, of which 30% or
   more in terms of volume is distilled at 350°C or whose density at 15°C is lower than 890
   kilograms/cubic metre;
2) gas oils, falling within CN codes from 2710 19 41 to 2710 19 49 – earmarked for heating
   purposes;
3) gas oils, falling within CN codes from 2710 19 41 to 2710 19 49 – used for navigation
   purposes (including fishing transport).
    2. The obligation of marking and dyeing energy products, referred to in (1), belongs to
entities managing tax warehouses, importers, entities engaged in intra-Community acquisition
and tax representatives.
   3. The competent Minister of Public Finances defines, by way of Regulation:
1) the type of substances used for marking and dyeing;
2) the minimum quantity of substances used for marking and dyeing, expressed in
   milligrams/litres of energy products; once these are added the goods are regarded as
   correctly marked and dyed.
    4. The competent Minister of Public Finances, when issuing the Regulation, referred to in
(3), takes into account:
1) the market situation concerning trade in energy products, in particular the need to prevent
   tax evasion;
2) the technical possibilities guaranteeing the correct marking and dyeing of energy
   products;
3) the purpose of energy products.

    Article 87. 1. The duty payer who sells electricity to the final purchaser, who uses
electricity in the situation, referred to in Article 6(1)(3) and (4), as well as the representing
entity, referred to in Article 9(6), have the obligation to keep electricity quantity records in
keeping with the gauge and settlement devices at the final purchaser‟s or the entity consuming
the energy, and in the absence of gauge devices – on the basis of a coefficient calculation of
energy collection by given devices, as defined in the documentation kept by the duty payer.
    2. The entity offering intra-Community delivery or export of electricity has the obligation
to keep electricity quantity records in keeping with the gauge and settlement devices, but if
this is not possible – this must be carried out on the basis of settlement documents.
                                               61

   3. The records, referred to in (l) or (2), should contain the following data necessary for
expressing in monthly periods:
1) amounts of produced and purchased electricity – in mega watt hours (MWh);
2) amounts of electricity delivered to final purchasers;
3) amounts of electricity delivered to entities which are not final purchasers;
4) the payment date stemming from contracts relating to the settlement of deliveries;
5) amounts of electricity, giving rise to the obligation to calculate and pay excise duty;
6) excise duty amounts to be paid on electricity;
7) amounts of electricity exempt from excise duty;
8) amounts of electricity consumed for own purposes;
9) amounts of electricity delivered within the Community or exported;
10) amount of losses resulting from the transmission or division of electricity.
    4. If there is a lack of gauging devices permitting precise calculation of amounts, referred
to in (3)(8) and (10), the person keeping the records defines an estimate amount.
    5. Records, referred to in (1) and (2), may be kept in paper or electronic form, providing
that the competent customs office manager has been informed earlier in writing as to the
manner of keeping records. Records should be stored for inspection purposes for a period of 5
years, starting from the end of the calendar year, on which they were drawn up.
    6. The competent Minister of Public Finances defines, by way of Regulation, the manner
of keeping electricity quantity records, referred to in (1) and (2), taking into account:
1) the need to define separately the amounts of electricity purchased, sold to the final
   purchaser, sold to the entity which is not the final purchaser, produced and used for one's
   own purposes, delivered inside the Community, exported and losses resulting from the
   transmission and distribution of electricity;
2) the need to separate excise duty amounts to be paid on electricity;
3) the possibility of ensuring appropriate information relating to electricity sold to the final
   purchaser, produced and used for one's own purposes, delivered inside the Community,
   exported and losses resulting from the transmission or distribution of electricity;
4) the provisions of European Community law on excise duty.

                                         Chapter 2
                                     Alcoholic beverages

   Article 88. Alcoholic beverages, in the understanding of the Act, comprise ethyl alcohol,
beer, wine, fermented beverages and intermediate products.

   Article 89. 1. Ethyl alcohol, in the understanding of the Act, comprises:
1) all goods with true alcoholic strength by volume exceeding 1.2%, falling within CN codes
    2207 and 2208, even if these are goods which constitute part of a product belonging to
    another section in the Combined Nomenclature;
2) goods falling within CN codes 2204, 2205 and 2206 00, with true alcoholic strength by
    volume exceeding 22%;
3) beverages containing diluted or undiluted ethyl alcohol.2. The production of ethyl alcohol,
in the understanding of the Act, involves the production, processing, cleaning, denaturing or
dewatering of ethyl alcohol, as well as its bottling.
    3. The basis for taxing ethyl alcohol is the number of hectolitres of 100% volume ethyl
alcohol at 20 °C contained in the ready product.
                                              62

    4. The excise duty rate on ethyl alcohol is PLN 4550.00 per 1 hectolitre of 100% volume
ethyl alcohol contained in the ready product.

     Article 90. 1. Beer, in the understanding of the Act, comprises all products falling within
CN code 2203 00 and all products containing a mixture of beer and non-alcoholic beverages,
falling within CN code 2206 00, if in each case the true alcoholic strength by volume in these
products exceeds 0.5% vol.
   2. The production of beer, in the understanding of the Act, involves the production and
processing of beer, as well as its bottling.
    3. The basis for taxing beer is the number of hectolitres of ready product per 1 degree
Plato.
    4. The excise duty rate on beer is PLN 6.86 per 1 hectolitre for every degree Plato of
ready product.
    5. The competent Minister of Public Finances defines, by way of Regulation, the detailed
methods of determining the parameters for defining the basis of taxing beer, referred to in (3),
in particular calculating the number of degrees Plato in ready beer, taking into account the
provisions of European Community law relating to excise duty and the technology of
producing beer.

   Article 91. 1. Wine in the understanding of the Act, is:
1) still wine – all products falling within CN codes 2204 and 2205, with the exception of
   sparkling wine, defined in point (2):
   a) with true alcoholic strength by volume exceeding 1.2%, not more than 15% vol., the
      ethyl alcohol contained in the ready product is entirely of fermented origin, or
   b) with true alcoholic strength by volume exceeding 15%, not more than 18% vol., on
      condition that they do not contain any enriching additives and the ethyl alcohol
      contained in the ready product is entirely of fermented origin, or
2) sparkling wine – all products falling within CN codes 2204 10, 2204 21 10, 2204 29 10
   and heading 2205, which jointly meet the following conditions:
   a) are contained in bottles with 'mushroom stoppers' held in place by ties or fastenings, or
      they have an excess pressure due to carbon dioxide in solution of three bar or more,
   b) have true alcoholic strength by volume exceeding 1.2% vol., not more than 15% vol.,
   c) the ethyl alcohol contained in the product is entirely of fermented origin.
   2. The production of wine, in the understanding of the Act, involves the production and
processing of wine, as well as its bottling.
   3. The basis for taxing wine is the number of hectolitres of ready product.
   4. The excise duty rate on wine is PLN 136.00 per hectolitre of ready product.

   Article 92. 1. Fermented beverages, in the understanding of the Act, are:
1) still fermented beverages – not being sparkling fermented beverages, defined in point (2)
   – all products falling within codes CN 2204 and 2205, with the exception of products
   defined under Article 91(1), and products falling within code CN 2206 00, with the
   exception of all products defined in Article 90(1):
   a) with true alcoholic strength by volume exceeding 1.2% vol., not more than 10% vol.,
      or
                                               63

   b) with true alcoholic strength by volume exceeding 10% vol., not more than 15% vol.
   – provided that the ethyl alcohol contained in the ready product is entirely of fermented
   origin.
2) sparkling fermented wines – all products falling within code CN 2206 00 and products
   falling within codes CN 2204 10, 2204 21 10, 2204 29 10 and heading 2205, not
   mentioned in Article 91, which are contained in bottles with 'mushroom stoppers' held in
   place by ties or fastenings, or they have an excess pressure due to carbon dioxide in
   solution of three bar or more and:
   a) have true alcoholic strength by volume exceeding 1.2% vol., not more than 13% vol.,
      or
   b) have true alcoholic strength by volume exceeding 13% vol., not more than 15% vol.
   – provided that the ethyl alcohol contained in the ready product is entirely of fermented
   origin.
   2. The production of fermented beverages, in the understanding of the Act, involves the
production and processing of fermented beverages, as well as its bottling.
   3. The basis for taxing fermented beverages is the number of hectolitres of ready product.
   4. The excise duty rate on fermented beverages is PLN 136.00 per 1 hectolitre of ready
product.

     Article 93. 1. Intermediate products, in the understanding of the Act, are all goods with
true alcoholic strength by volume exceeding 1.2%, not more than 22%, falling within CN
codes 2204, 2205 and 2206 00, with the exception of goods defined in Articles 90–92.
   2. The production of intermediate products, in the understanding of the Act, involves the
production and processing of intermediate products, as well as their bottling.
   3. The basis for taxing intermediate products is the number of hectolitres of ready product.
   4. The excise duty rate on intermediate products is PLN 273.00 per 1 hectolitre of ready
product.

                                          Chapter 3
                                        Tobacco products

   Article 94. 1. Tobacco products, in the understanding of the Act, irrespective of the CN
code, are:
1) cigarettes;
2) smoking tobacco;
3) cigars and cigarillos.
   2. Cigarettes are deemed to be:
1) rolls of tobacco capable of being smoked as they are and which are not cigars or
   cigarillos, in the understanding of (4).
2) rolls of tobacco which, by simple non-industrial handling, are inserted into cigarette-paper
   tubes;
3) rolls of tobacco which, by simple non-industrial handling, are wrapped in cigarette paper.
    3. For excise duty purposes one cigarette is deemed to be a roll of tobacco, referred to in
(2), not longer than 9 centimetres, excluding the filter and mouth-piece, and in the event of its
                                               64

length being more than 9 centimetres, one cigarette is deemed to be each 9 centimetres of
length of this tobacco, excluding the filter and mouth-piece, as well as the end section of this
length shorter than 9 centimetres.
   4. A cigar or cigarillo for smoking is deemed to be:
1) rolls of tobacco made entirely of natural tobacco;
2) rolls of tobacco with an outer wrapper of natural tobacco;
3) rolls of tobacco with a threshed blend filler and with an outer wrapper of the normal
   colour of a cigar covering the product in full, including where appropriate the filter but not
   in the case of tipped cigars, the tip, and a binder, both being of reconstituted tobacco,
   where the unit weight, not including filter or mouth-piece, is not less than 1.2 g and where
   the wrapper is fitted in spiral form with an acute angle of at least 30° to the longitudinal
   axis of the cigar;
4) rolls of tobacco with a threshed blend filler and with an outer wrapper of the normal
   colour of a cigar, of reconstituted tobacco, covering the product in full, including where
   appropriate the filter but not, in the case of tipped cigars, the tip, where the unit weight,
   not including filter or mouth-piece, is not less than 2.3 g and the circumference over at
   least one third of the length is not less than 34 mm.
   5. Smoking tobacco is deemed to be:
1) tobacco which has been cut or otherwise split, twisted or pressed into blocks and is
   capable of being smoked without further industrial processing;
2) tobacco refuse put up for retail sale , which are not cigarettes, cigars or cigarillos in the
   understanding of (2), (3) and (4), and which can be smoked.
    6. Smoking tobacco, defined in (5), in which more than 25% by weight of the tobacco
particles have a cut width of less than 1 millimetre shall be deemed to be fine-cut tobacco for
the rolling of cigarettes.
    7. Products consisting in part of substances other than tobacco but otherwise conforming
to the criteria set out in (1) shall be treated as cigars and cigarillos provided they have
respectively:
1) a wrapper of natural tobacco;
2) a wrapper and binder of tobacco, both of reconstituted tobacco;
3) a wrapper of reconstituted tobacco.
    8. Products consisting in whole or in part of substances other than tobacco but otherwise
conforming to the criteria set out in (2), (3) or (5) shall be treated as cigarettes and smoking
tobacco. However, products containing no tobacco and used exclusively for medical purposes
shall not be treated as manufactured tobacco..

   Article 95. 1. The production of tobacco products, in the understanding of the Act,
involves their production, processing and packaging.
   2. Excise rates for tobacco products are as follows:
1) for cigarettes, with reservation to (10) – PLN 138.50 for every 1000 items and 31.41% of
   the maximum retail price;
2) for smoking tobacco, with reservation to (10) – PLN 95.00 for every 1 kilogram and
   31.41% of the maximum retail price;
3) for cigars and cigarillos – PLN 235.00 for every 1000 items.
                                               65

   3. For cigarettes or smoking tobacco not subject to marking with excise marks and not
marked with a maximum retail price the excise duty rates are as follows:
1) for cigarettes – PLN 300.00 for every 1000 items;
2) for smoking tobacco – PLN 200.00 for every 1 kilogram.
    4. The minimum excise duty rate for cigarettes is 100% of the total excise duty amount,
calculated from the price equal to the most popular price category.
    5. The most popular price category, determined for the given calendar year, is the price
used in trade for the group of cigarettes most sold within a period of 10 months (from January
to October) of the previous calendar year, calculated according to the number of sold
cigarettes, on the basis of the maximum retail prices, calculated per 1000 items. The most
popular price category is announced, by way of Notice, by the competent Minister of Public
Finances in the Dziennik Urzędowy Rzeczypospolitej Polskiej “Monitor Polski” [Official
Journal], prior to 1 January each year.
    6. The maximum retail price is the price which is marked and printed by the producer,
importer or entity carrying out intra-Community acquisition, on the unit packet of cigarettes
or smoking tobacco, with reservation to (9).
    7. The producer, importer or entity carrying out intra-Community acquisition of cigarettes
or smoking tobacco, earmarked for sale in Poland, must mark and print the maximum retail
price on the unit packet of these products.
    8. Concerning import or the intra-Community acquisition or cigarettes or smoking tobacco
beyond the suspension arrangements for excise duties procedure, for unit packets not
containing the maximum retail price, application is made appropriately of the excise duty rate
at the level defined in (2)(1) and (2), in that the maximum retail price is deemed to be three
times the value of the most popular price category, calculated per 1000 items for cigarettes,
and for smoking tobacco, presuming that the unit of 1000 items of cigarettes corresponds to 1
kilogram of smoking tobacco.
    9. Concerning the acquisition or holding of cigarettes or smoking tobacco beyond the
suspension arrangements for excise duties procedure, in unit packets not marked or containing
the maximum retail price, if on these products the due level of excise duty has not been paid
and tax inspection, inspection procedure or tax procedure cannot determine this level,
application is made appropriately of the excise duty rate at the level defined in (2)(1) and (2),
in that the maximum retail price is deemed to be three times the value of the most popular
price category, calculated per 1000 items for cigarettes, and for smoking tobacco, presuming
that the unit of 1000 items of cigarettes corresponds to 1 kilogram of smoking tobacco.
   10. In the case, referred to in Article 5(5), application is made of an excise duty rate of
70% of the maximum retail price printed on the unit packet.
    11. The producer, importer or entity carrying out intra-Community acquisition of
cigarettes must draw up and submit to the competent Minister of Public Finances information
on the level of sales of given brands of cigarettes marked with the maximum retail price
covering 10 months (from January to October) of the given calendar year.
   12. The competent Minister of Public Finances defines, by way of Regulation, the
deadline, form of submitting and the scope of information, referred to in (11), taking into
account the need to determine the most popular price category.

                                           Section V
                                                66

                                Excise duty on passenger cars

   Article 96. 1. Concerning passenger cars the object of excise duty is:
1) the import of passenger cars which have not been previously registered in Poland, in
   keeping with the provisions on road traffic;
2) intra-Community acquisition of a passenger car which has not been previously registered
   in Poland, in keeping with the provisions on road traffic;
3) the first sale in Poland of a passenger car not registered in Poland, in keeping with the
   provisions on road traffic:
   a) produced in Poland,
   b) on which excise duty has not been paid as a result of activities, referred to in point (1)
      or (2).
   2. Concerning passenger cars the object of excise duty is also each sale in Poland of a
passenger car not registered in Poland, following the sale, referred to in (1)(3), if the due level
of excise duty had not been paid earlier and tax inspection, inspection procedure or tax
procedure cannot determine this level.
   3. Activities, referred to in (1) and (2), are the object of excise duty irrespective of
whether they were performed with the retention of conditions and forms defined by the
provisions of the law.
    4. If the passenger car is subject to tax liability in connection with the performance of one
of the activities subject to excise duty the tax liability does not arise on the basis of another
activity subject to excise duty, providing that the due amount of excise duty has been defined
or declared.
    5. Passenger cars are motor cars and other motor vehicles falling within code CN 8703
principally designed for the transport of persons (other than those of heading 8702), including
station wagons and racing cars, excluding snowmobiles within code CN 8703 10 11, „Melex‟
cars falling within code CN 8703 10 18 and quad vehicles falling within code CN 8703 10 18.
   6. For the needs of this section the sale of passenger cars is understood as follows:
1) the sale, in the understanding of the Act of 23 April 1964 – Civil Code, of a passenger car;
2) the change, in the understanding of the Act of 23 April 1964 – Civil Code, of a passenger
   car;
3) the release of a passenger car in exchange for receivables;
4) the release of a passenger car in exchange for cash benefits;
5) the donation, in the understanding of the Act of 23 April 1964 – Civil Code, of a
   passenger car;
6) the release of a passenger car in exchange for a given activity;
7) the transfer of use of a passenger car for the needs of representation or advertising;
8) the transfer by the duty payer of the passenger car for the personal needs of the duty
   payer, partners, shareholders, members of cooperatives and their residents, members of
   organisations constituting legal persons, members of associations, as well as persons in its
   employ and former employees;
9) the use of passenger cars for business needs.
   7. For the purpose of placing excise duty on passenger cars appropriate application is
made of Article 10(1–4), (6–8), (10) and (13), Article 12, Article 13(1) and (2), Article 14,
provisions issued under Article 15, Article 16(5) and Articles 22–24.
                                                67



   Article 97. 1. Tax liability on the import of passenger cars which have not been
previously registered in Poland, in keeping with the provisions on road traffic arises on the
day that the customs debt arises in the understanding of the provisions of customs law.
   2. Tax liability on the intra-Community acquisition of passenger cars which have not been
previously registered in Poland, in keeping with the provisions on road traffic, arises on the
day that:
1) the passenger car is transferred from a Member State to Poland – if the right to use the
   passenger car as an owner was acquired prior to the transfer of the car to Poland;
2) the right to use the passenger car as an owner was acquired – if the right to use the
   passenger car as an owner was acquired following the transfer of the passenger car to
   Poland;
3) the application to register the passenger car in Poland was submitted in keeping with the
   provisions on road traffic – if the entity applying for registration in Poland of the
   passenger car acquired within the Community is not its owner.
    3. Tax liability arising from the sale of a passenger car in Poland, not registered in Poland
in keeping with the provisions on road traffic, arise on the day of issue, and in cases, referred
to in Article 96(6)(2–9), on the day that these activities are performed.
    4. If the sale of the passenger car is to be confirmed by invoice, tax liability arises on the
day that the invoice is issued, however not later than on the 7th day, starting from the day of
issue, and in cases, referred to in Article 96(6)(2–9), on the day that these activities are
performed. The seller must indicate on the invoice the amount of excise duty arising from the
sale.
    5. If it is not possible to determine the day on which tax liability arose on the basis of the
given activity, referred to in Article 96(6)(1) or (2), the day on which it arose is deemed to be
the day, on which the authorised tax administration or tax investigation authority noted the
activity subject to duty.

   Article 98. 1. A duty payer is a natural person, a legal entity and an organisational unit
without legal personality, which perform activities, referred to in Article 96(1) or (2).
    2. In cases, referred to in Article 97(2)(1) and (2), if the transfer of a passenger car from a
Member State to Poland is carried out by an entity other than the entity which acquired the
right to use the passenger car as an owner, the duty payer is a natural person, a legal entity
and an organisational unit without legal personality, which had acquired the right to use the
passenger car as an owner.
    3. In the case, referred to in Article 97(2)(3), the duty payer is a natural person, a legal
entity and an organisational unit without legal personality, which had applied to register this
car in Poland, in keeping with the provisions on road traffic.
     Article 99. 1. The enforcement authorities, defined in the provisions on administrative
enforcement proceedings, as well as the bailiff performing enforcement activities, in the
understanding of the provisions of the Act of 17 November 1964 – Code of Civil Procedure
(Journal of Laws, No 43(296), as amended13)), are duty payers on the sale, under enforcement,
of the passenger car not registered earlier in Poland in keeping with the provisions on road
traffic, on which excise duty was not paid.
                                               68

     2. The duty payer on the sale, under enforcement, of the passenger car not registered
earlier in Poland in keeping with the provisions on road traffic, must calculate and pay the
duty into the account of the corresponding customs chamber by the 7th day of the month
following the month in which the car was sold, and must also submit within this period of
time, to the competent customs office manager, a declaration on the amount of collected and
paid excise duty according to the agreed upon model.
    3. The competent Minister of Public Finances defines, by way of Regulation, the detailed
scope of data contained in the declaration on the amount of collected and paid excise duty by
the duty payer and a model of this declaration, explanations as to the manner of correctly
submitting the declaration and information on where it should be submitted, as well as
guaranteeing the possibility of calculating the excise duty amount.

    Article 100. 1. The basis of excise duty on passenger cars is:
1) the due sales amount on the passenger car in Poland, decreased by VAT and the due
   excise duty on this passenger car;
2) the amount which the duty payer must pay for the passenger car – in the event of it being
   acquired within the Community, in that in the case, referred to in Article 97(2)(3), the
   taxable amount is the average market value of the passenger car, referred to in (11),
   decreased by VAT and the excise duty amount;the customs value of the passenger car
   increased by due customs – in the event of importing the car, with reservation to (2–5).
    2. Concerning passenger cars subject to provisions relating to the outward processing
procedure, the taxable amount is the difference between the customs value of compensating or
replacement products released for circulation and the value of products temporarily exported,
increased by the due duty.
   3. The taxable amount on imported passenger cars relating to the temporary importation
procedure with partial relief from import duties or the processing under customs control
procedure is the customs value increased by the duty, which would have been due had this car
come under the permission to circulate procedure.
    4. The taxable amount on imported passenger cars also includes the commission and cost
related to transport and insurance, if these had not been included and had already been borne
to the first place of destination in Poland. The first place of destination is the place mentioned
in the transport document or other document, on the basis of which the car is imported.
    5. The taxable amount on imported passenger cars has added to it, as defined under
separate provisions, fees and other dues, if the customs authorities have the obligation to
collect such dues on imported cars.
    6. The taxable amount on intra-Community acquisition of a passenger car previously
released for circulation in another European Community Member State, in keeping with
customs provisions, but not registered in another Member State, is the value, referred to in
(1)(3), taking into account the commission, the costs of transport and insurance, if these were
not included in the price, but had already been incurred up to the place where the product
came under customs procedure.
   7. If it is not possible to define the amounts, referred to in (1)(1) and (2), in particular
concerning the donation of a passenger car, the taxable amount is deemed to be the average
market value of the passenger car on the domestic market, decreased by VAT and the excise
duty amount.
                                              69

    8. If the taxable amount relating to activities, referred to in Article 96(1)(2) and (3) and
(2), without just cause considerably differs from the average market value of this passenger
car, the tax administration or tax investigation authority calls on the duty payer to change the
taxable amount or to explain why its level differs so much from the average market value of
passenger cars.
    9. If no answer is given, or the taxable amount is not amended or no explanation is given
as to why the level differs so much from the average market value, the tax administration or
tax investigation authority determines the taxable amount.
   10. If the taxable amount calculated with the use of an expert opinion differs at least 33%
from the declared taxable amount, the cost of the expert opinion is covered by the duty payer.
    11. The average market value of a passenger car is the value established on the domestic
market, on the day that the taxable amount arose, expressing the average price of a passenger
car registered in Poland which is the same make, model, year and, if possible to determine,
contains the same equipment and its technical condition is similar to the passenger car
purchased in Poland or acquired inside the Community.
   12. In order to calculate the taxable amount expressed in foreign currency application is
made of the current average foreign currency exchange rate calculated and announced by the
National Bank of Poland on the day that the taxable amount arose.
    13. If on the day that the taxable amount arose the National Bank of Poland did not
calculate and announce the current average exchange rate for foreign currency, in order to
calculate the taxable amount expressed in foreign currency application is made of the latest,
prior to the day that the taxable amount arose, current average exchange rate calculated and
announced by the National Bank of Poland.

   Article 101. The excise duty rate for passenger cars is as follows:
1) 13.6% of the taxable amount – for passenger cars with cylinder capacity exceeding 2,000
   cubic centimetres;
2) 3.1% of the taxable amount – for remaining passenger cars.

    Article 102. 1. The payer of duty for the sale of a passenger car in Poland must, without
being instructed by the tax administration:
1) submit, to the corresponding customs office, excise duty tax returns, in keeping with the
   determined model,
2) calculate and pay the excise duty into the account of the corresponding customs chamber
– for the monthly settlement periods, by the 25th day of the month following the month, in
which tax liability arose.
    2. The duty payer, as a result of a passenger car being acquired within the Community
must, having transported it into Poland, without being instructed by the tax administration,
submit a simplified return, in keeping with the determined model, to the competent customs
office manager within a period of 14 days, starting from the day that the taxable amount
arose, not later, however, than on the day of registering the passenger car in Poland, in
keeping with the provisions on road traffic.
    3. The duty payer, as a result of a passenger car being acquired within the Community
must, having transported it into Poland, without being instructed by the tax administration,
calculate and pay into the account of the corresponding customs chamber the excise duty
                                                  70

within a period of 30 days, starting from the day that the taxable amount arose, not later,
however, than on the day of registering the passenger car in Poland, in keeping with the
provisions on road traffic.
      4. The competent Minister of Public Finances defines, by way of Regulation, the models
of:
      1) tax returns, referred to in (1),
      2) simplified returns, referred to in (2)
    - including explanations as to the appropriate manner of submitting these declarations,
information on deadlines and the place where they should be submitted, a caution indicating
that the tax returns constitute the basis for issuing enforceable titles, and guarantees the
possibility of correctly calculating the level of excise duty.

    Article 103. 1. The entity which acquired the right to use a passenger car as an owner and
which delivers within the Community or exports a passenger car not registered earlier in
Poland in keeping with the provisions on road traffic, on which excise duty was paid in
Poland, or if in the entity‟s name this delivery or export is performed, the entity is entitled to
reimbursement of excise on the strength of an application submitted to the competent customs
office manager within a period of one year of the day of delivering the passenger car within
the Community or exporting it.
      2. Excise duty which is below the minimum reimbursable amount is not reimbursed.
    3. The entity referred to in (1), must be in possession of documents which confirm the
carrying out of delivery within the Community or export, in particular: transport documents,
customs documents, an invoice and delivery specifications and other commercial documents
connected with delivery within the Community or export.
   4. The application requesting reimbursement has attached to it proof that the excise duty
has been paid in Poland or an invoice indicating the excise duty amount and documents
confirming that delivery within the Community or export, referred to in (3), has taken place.
    5. The competent tax authorities on the reimbursement of excise duty relating to the
delivery within the Community or export of the passenger car, on which excise duty has been
paid in Poland, are the customs office manager and the director of the customs chamber,
where settlement and payment of the excise duty relating to the latest activity subject to
taxation took place, whose subject was that passenger car.
    6. The competent Minister of Public Finances defines, by way of Regulation, the detailed
conditions and manner of reimbursing excise duty relating to passenger cars, the minimum
reimbursable amount, the model excise duty reimbursement application and the excise duty
reimbursement deadline, taking into account the need to define correctly the amounts of
reimbursed excise duty and the economic effectiveness of reimbursing the excise duty.
    Article 104. 1. The entity which acquires or delivers passenger cars within the
Community, within the frame of its business activities must, without being instructed by the
tax administration, submit to the corresponding customs office information summarizing the
number of intra-Community acquisitions and intra-Community deliveries, hereinafter referred
to as "summarizing information", according to a determined model, covering quarterly
periods up to the 25th day of the month following the quarter, in which the intra-Community
deliveries took place or in which the taxable amount arose – in the event of intra-Community
acquisition.
                                              71

    2. The summarizing information contains identification details on the entity, its registered
address or place of residence, a description of the number of passenger cars, engine cylinder-
capacity, the recipient‟s identification details – concerning intra-Community delivery and the
supplier – concerning intra-Community acquisition, the total value of the passenger cars being
the object of intra-Community acquisition or intra-Community delivery.
    3. In the event of noting errors in the submitted summarizing information, the entity which
had submitted the summarizing information must immediately amend the summarizing
information.
    4. The competent Minister of Public Finances defines, by way of Regulation, the model of
the summarizing information including explanations as to the manner of filling it in correctly,
the deadline and place of submitting it, taking into account the need to facilitate the
submitting of amendments and guaranteeing information on the number of acquired or
delivered passenger cars within the Community.
    Article 105. 1. Concerning the intra-Community acquisition of a passenger car not
registered earlier in Poland in keeping with the provisions on road traffic, the competent
customs office manager must, for purposes connected with the registration of the passenger
car in Poland, issue the duty payer, on his application, with a document confirming payment
of excise duty in Poland, with reservation to Article 106(6) and Article 107(4).
    2. For purposes connected with the registration of a passenger car in Poland in keeping
with the provisions on road traffic, the customs office manager must issue, on application of
the interested entity, a document confirming that there is no obligation to pay excise duty in
Poland, with reservation to Article 106(6) and Article 107(4).
    3. In the event of selling the passenger car, acquired inside the Community, not registered
earlier in Poland, the seller must submit to the acquirer a document confirming payment of
excise duty in Poland or a document confirming that there is no obligation to pay excise duty
in Poland.
   4. The competent Minister of Public Finances defines, by way of Regulation, the models
of documents, referred to in (1) and (2), taking into account the principles of registering
passenger cars and the need to identify passenger cars.
    5. The competent Minister of Public Finances may define, by way of Regulation, the
detailed manner of circulating documents, referred to in (1) and (2), taking into account the
market situation concerning the trade in passenger cars and the need to document payment of
the excise duty or the fact that there is no obligation to pay excise duty .
    Article 106. 1. There is no excise duty on passenger cars imported by a natural person
coming into Poland to stay permanently or returning after a temporary stay from a Member
State to Poland, if jointly the following conditions are met:
1) the passenger car is earmarked for the personal use of that person;
2) the passenger car served the personal needs of that person in that person‟s previous place
   of stay in a Member State of the European Community for a period of at least 6 months
   prior to the change of the place of stay;
3) that person presents to the competent customs office manager proof of meeting the
   condition, referred to in point (2);
4) the passenger car is not sold, hired or rented for a period of 12 months, starting from the
   day that it was brought into Poland;
5) the passenger car was acquired or circulated in keeping with the provisions on taxation
   binding in the Member State of the European Community, in which the natural person had
                                              72

   his place of residence, and upon being transported out was not subject to excise duty
   exemption or excise duty reimbursement.
    2. There is no excise duty on passenger cars imported by a natural person arriving from a
Member State to Poland for permanent residence in connection with marriage, if jointly the
conditions, referred to in (1), are met and the import takes place within a period of 2 months
prior to the expected date of getting married or 4 months after getting married.
   3. The natural person, referred to in (2), must submit to the competent customs office
manager proof of getting married within a period of 4 months from the date of the marriage.
    4. There is no excise duty on passenger cars imported by a natural person who had
acquired through inheritance ownership rights or the right to use this passenger car in the
Member State, on condition that this person presents to the competent customs office manager
a document stating right of ownership or the right to use the passenger car acquired through
inheritance, confirmed by a notary or other competent authority, as well as confirmation that
the passenger car was imported into Poland not later than within 2 years, starting from the day
that the person became the owner of the car.
    5. The conditions, referred to in (1)(2) and (3), do not apply to members of foreign
services and professional soldiers designated to perform professional military service abroad,
providing that they present documents confirming employment at a Republic of Poland
foreign mission or delegation to perform professional military service abroad – in the event of
it not being possible to register in Poland passenger cars used by these entities in the Member
States of the European Community, from which they are returning.
   6. Concerning the case, referred to in (1), (2) and (40, the competent customs office
manager issues a certificate confirming exemption from excise duty.
    7. In the event of importing, referred to in (1) and (2), from a Member State, the passenger
car is exempted from excise duty, if it was imported prior to the passage of 12 months from
the day that the natural person settled in Poland.
    8. A permanent place of residence is deemed the place in which the natural person has
been residing for at least 185 days of the calendar year in consideration of that person‟s
personal and professional ties. In the event of that person not being tied to that place
professionally it is deemed that the person‟s personal ties are indicated by the existence of
close ties between that person and the place in which he lives. However, the permanent place
of residence of a person tied professionally with a different place than the place of personal
ties – and for this reason the person moves between various places in two or more Member
States of the European Community – is that place with which the person is connected
personally, on condition that the person regularly returns to that place. This latter condition
does not have to be met, if the person lives in a Member State of the European Community in
order to perform tasks within a given period of time. Higher education or education in a
school located outside the place of permanent residence is not deemed a change of the
permanent place of residence.
    9. The provisions of (1–8) also apply to natural persons living in Poland with permanent
residence or returning from a temporary stay in a Member State of the European Free Trade
Association (EFTA) – parties to the European Economic Area.
    Article 107. 1. The following are exempt of excise duty:
1) passenger cars brought in temporarily for private purposes by a natural person coming to
    Poland from a Member State, providing that jointly the following conditions are met:
                                                73

   a) the natural person is permanently resident, in the understanding of Article 106(8), in a
      Member State,
   b) the passenger car is earmarked for the personal use of that person,
   c) the temporary import of the passenger car is not for more than 6 months in the 12-
      month period,
   d) the passenger car is not sold, hired or rented during the temporary import period,
      however, a passenger car belonging to a rental company with registered seat in a
      Member State may be sublet with the purpose of its renewed import, if it is located in
      another Member State in connection with the performance of the lease contract, which
      was implemented in that State; a car may also be returned by the rental company
      employee to the Member State, in which it was rented, also if the employee's place of
      residence is Poland;
2) passenger cars brought in temporarily for professional purposes by a natural person
   coming to Poland from a Member State, providing that jointly the following conditions
   are met:
   a) the natural person is permanently resident, in the understanding of Article 106(8), in a
      Member State,
   b) the temporary import of the passenger car is not for more than 6 months in the 12-
      month period,
   c) the passenger car is not used in Poland for the transport of persons for remuneration
      or for the transport of goods for industrial or commercial purposes for or without
      remuneration,
   d) the passenger car is not sold, hired or rented during the temporary import period,
   e) the passenger car was acquired or circulated in keeping with the provisions on taxation
      binding in the Member State, in which the natural person has his place of residence,
      and upon being transported out was not subject to excise duty exemption or excise
      duty reimbursement, with reservation to (2);
3) the passenger car brought in temporarily, registered in the Member State in which the user
   has his place of residence, is used for regular travel from the place of residence to the
   workplace in Poland, providing that jointly the conditions under points (2)(a) and (c–e)
   are met;
4) the passenger car brought in temporarily, registered in the Member State in which the
   student has his place of residence, is used by him in the country in which he resides
   exclusively for the purpose of studying, providing that jointly the conditions under points
   (2)(a) and (c–e) are met.
    2. The condition, referred to in (1)(2)(e), is said to be met, if the passenger car contains an
official registration mark of the Member State, in which it was registered, with the exclusion
of temporary registration marks. In the event of a passenger car registered in a Member State,
in which the issue of official registration marks is not deemed proof that the passenger car
was acquired or circulated in keeping with the provisions on taxation binding in the Member
State, the user must prove in another manner that the due amounts or fees had been paid.
   3. The exemption, referred to in (1)(3), is indefinite:
    4. Concerning the case, referred to in (1), the competent customs office manager issues,
on application of the entity concerned, a certificate confirming exemption from excise duty.
   5. Concerning the case, referred to in (1)(2), the place of permanent residence in the
Member State is determined on the basis of documents, in ID cards or other official
documents In the event of doubts arising as to whether the conditions on permanent place of
                                               74

residence have been met, exemption from excise duty takes place on condition that a cash
deposit in Polish currency is made, equivalent to the excise duty amount which would have
been due.
   6. The deposit is returned within two months of the day of presenting proof of place of
permanent residence in another Member State. No interest is paid on the amount of returned
deposit.
    7. In the event of no proof of place of permanent residence being presented within twelve
months of the day that the fiscal responsibility arose, the competent customs office manager
includes this deposit in the due amount of excise duty.
    8. The competent Minister of Public Finances defines, by way of Regulation, the detailed
manner and deadlines of returning the deposit, taking into account the need to secure the
performance of excise duty tax commitments.
     9. The provisions of (1–8) also apply to natural persons coming to Poland from a Member
State of the European Free Trade Association (EFTA) – parties to the European Economic Area
agreement.

    Article 108. 1. There is no excise duty on passenger cars brought in from outside the
territory of the Member States and Member States of the European Free Trade Association
(EFTA) – parties to the European Economic Area agreement, by a natural person coming to
Poland for permanent residency or returning from a temporary stay from these States, if
jointly the following conditions are met:
1) the passenger car is earmarked for the personal use of that person;
2) the passenger car served the personal needs of that person in that person‟s previous place
   of stay outside the territory of the Member States and Member States of the European Free
   Trade Association (EFTA) – parties to the European Economic Area agreement, for a period
   of at least 6 months prior to the change of the place of stay;
3) that person presents to the competent customs office manager proof of meeting the
   condition, referred to in point (2);
4) that person resided outside the territory of the Member States and Member States of the
   European Free Trade Association (EFTA) – parties to the European Economic Area
   agreement, for a period of at least 12 consecutive months prior to the change of the place
   of stay;
5) the passenger car is not sold, hired or rented for a period of 12 months from the day that it
   was brought into Poland;
    2. The conditions, referred to in (1)(2) and (3), do not apply to members of foreign
services and professional soldiers directed or designated to perform professional military
service abroad, providing that they present documents confirming employment at a Republic
of Poland foreign mission or delegation to perform professional military service abroad – in
the event of it not being possible to register in Poland passenger cars used by these entities in
the States from which they are returning.
   3. In the case, referred to in (2), exemption from excise duty also refers to passenger cars
brought in from a Member State or third country, acquired whilst returning from the third
country.
   4. The provisions of Article 106(7) and (8) apply appropriately.
                                                 75

    Article 109. The competent Minister of Public Finances may, by way of Regulation,
introduce excise duty exemption on passenger cars if:
    1) this stems from the provisions of European Community law,
    2) this stems from international agreements,
    3) this stems from the principles of reciprocity
– by defining the detailed scope, conditions and manner of applying these, taking into account
the specifics of the circulation of passenger cars and the need to guarantee appropriate
controls.
    2. Exemption from excise duty may take place through reimbursement of the paid amount
of excise duty.
   3. In the event of excise duty exemption involving the reimbursement of the paid excise
amount, the competent customs office manager defines, by way of decision, the amount of
excise duty to be reimbursed.

                                             Section VI

                                           Excise marks

                                           Chapter 1
                           The obligation to mark with excise marks

   Article 110. Excise goods, defined in Annex 3 to the Act, are subject to obligatory
marking with excise marks.
   Article 111. 1. The competent Minister of Public Finances entrusts the making of excise
marks to the manufacturer, guaranteeing safety of manufacture and storage of these marks.
   2. The manufacturer of the marks may sell the excise marks exclusively to the competent
Minister of Public Finances.
    3. The manufacturer of the marks may issue the excise marks exclusively to competent
customs office managers for excise marks or to entities authorised by them.

    Article 112. 1. The obligation to mark excise goods with duty excise marks belongs to the
registered entity, in keeping with Article 12, who is:
1)   the entity managing the tax warehouse, with reservation to point (6);
2)   the importer;
3)   the entity engaged in intra-Community acquisition;
4)   the tax representative;
5)   the entity producing the excise goods, referred to in Article 45(1)(1), (2), (4) or (5);
6)   the owner of the excise goods, referred to in Article 9(4).
    2. Whenever in this section reference is made to the importer this is also understood as an
entity who is not an importer, but who has the obligation to pay duty, referred to in Article
9(3).
   3. The obligation to mark excise goods with legalization excise marks arises when there
appear, beyond the suspension arrangements for excise duties procedure, excise goods which
are not marked, incorrectly marked or marked with inappropriate marks, in particular
containing damaged marks, in the event of these goods serving the purpose of further sale.
                                               76

    4. Concerning excise marks, referred to in (3), the holder of these goods, and in reference
to excise goods sold by the competent public administration body in keeping with the
provisions on administrative enforcement proceedings – the acquirer of these goods, has the
obligation to purchase the excise marks and mark the goods with them. A report is drawn up
on the marking procedure.
   5. The holder of the goods, referred to in (3), which are designated for further sale must
draw up a list of them and present this list for approval to the competent customs office
manager.
    6. The provisions of (5) do not apply to excise goods, on which excise duty has been paid,
which have been rebottled or reweighed in different prepacked goods subject to excise duty in
the place of retail sale.
    Article 113. 1. Excise goods subject to obligatory marking with excise marks should be
correctly marked with appropriate duty excise marks prior to the end of the procedure on
suspension arrangements for excise duties, and in the case, referred to in Article 45(1)(1), (2),
(4) or (5), prior to submitting the finished goods to the warehouse or prior to selling them.
    2. Excise goods subject to obligatory marking with excise marks cannot, without first
being correctly marked with the appropriate duty excise marks:
1) be imported, unless they come under the suspension arrangements for excise duties
   procedure or are introduced into the free zone or free warehouse, or come under the
   customs warehouse procedure and are correctly marked prior to the end of the suspension
   arrangements for excise duties procedure or prior to coming under the permission to
   circulate procedure with the purpose of effecting sales in Poland beyond the suspension
   arrangements for excise duties procedure;
2) be moved in Poland as a result of intra-Community acquisition beyond the suspension
   arrangements for excise duties procedure;
3) be moved in Poland under the suspension arrangements for excise duties procedure as a
   result of intra-Community acquisition by a registered trader or unregistered trader.
   3. In consideration of (1) and (2), excise goods subject to obligatory marking with excise
marks cannot be sold in Poland without prior correct marking with appropriate excise marks.
   Article 114. 1. There is no obligation to mark with excise marks excise goods which are:
1) totally unfit for use;
2) moved out of the tax warehouse and designated for intra-Community delivery or export;
3) placed in the free warehouse or the free zone and designated for sale at commercial units
   located there;
4) carried across Poland under the transit procedure in the understanding of the provisions of
   customs law;
5) carried from one Member State to another Member State across Poland;
6) produced under the conditions defined in Article 45(1)(1), (2), (4) or (5) and designated
   for intra-Community delivery or export.
   2. Concerning import there is no obligation to mark with excise marks those excise goods
which are exempted from import duty amounts on the basis of the provisions of customs law
and which are relieved of excise duty.
   3. Concerning intra-Community acquisition there is no obligation to mark with excise
marks those excise goods which are exempted from excise duty.
                                              77

    4. The entity managing the tax warehouse, the importer, the entity carrying out intra-
Community acquisition and the entity engaged in production, referred to in Article 45(1)(1),
(2), (4) or (5), as well as the owner of excise goods, referred to in Article 9(4), must keep
records of the type, quantity and value of excise goods defined under (1)(1) – (3) and (6).
    5. Excise goods defined in (1)(2), (3) and (6) may be moved from the tax warehouse
without excise marks, placed in the free warehouse or the free zone or issued from the
finished goods warehouse, on condition that written notification is sent to the competent
customs office manager prior to the day of moving the excise goods from the tax warehouse,
placing the excise goods in the free warehouse or the free zone or issuing the excise goods
from the finished goods warehouse. The competent customs office manager may demand that
the excise goods be escorted to the Polish border in the event of intra-Community delivery or
export, or up to the moment that they are placed in the free warehouse or the free zone. The
goods are escorted at the cost of the duty payer or the recipient of these goods.
    6. A condition exempting the excise goods, referred to in (1)(4), from the obligation of
being marked with excise marks, is the placing of security on the excise amount in keeping
with the principles and manner applied when securing duty amounts on the basis of the
provisions of customs law.
    7. Records, referred to in (4), may be kept in paper or electronic form, providing that the
competent customs office manager has been informed earlier in writing as to the manner of
keeping records. Records should be stored for inspection purposes for a period of 5 years,
starting from the end of the calendar year in which they were drawn up.
   Article 115. 1. Exemption from the obligation to mark excise goods with excise marks
may also apply in the following cases:
1) if this is justified by an important interest connected with the State or entities with the
   obligation to mark excise goods with excise marks;
2) if this stems from the provisions of European Community law or international agreements;
3) in the event of marking certain excise goods which are samples used for scientific,
   laboratory or quality research.
     2. The exemptions, referred to in (1), may be applied for a specific period of time in
reference to given groups of excise goods or in consideration of their purpose.
    3. The competent Minister of Public Finances defines, by way of Regulation, the detailed
scope of exemption from the obligation to mark excise goods with excise marks and the
conditions and manner of applying them, in consideration of the market situation relating to
the circulation of excise goods, the specifics of circulating these goods and the need to
guarantee control of this circulation.

                                        Chapter 2
                    The principles and manner of placing excise marks

    Article 116. 1. Excise marks may in particular be in the form of excise bands, excise
hallmarks or stamp imprints.
    2. An excise mark is placed on the prepacked excise goods or directly on the excise goods
in a manner which, once the mark is removed or the pack opened in the place designated for it
to be opened or the goods are used, permanent and visible damage occurs to the mark in a
manner rendering it impossible to use the mark, unless the excise mark is placed directly and
permanently on the excise goods.
                                              78

   3. The prepacked excise goods constitute an independent pack, directly protecting the
excise goods:
1) which are single or multi-use and which are
2) adapted or which can be adapted for storage, display or sale in it or from it of the excise
   goods, and
3) which contains a lock or specific place or manner of opening it, which is or may be
   adapted for direct or indirect consumption of the goods or which permits direct or indirect
   consumption of the goods, and
4) which is adapted for packing, storing and carrying in outside or transport packaging.

    Article 117. 1. The competent customs office manager for excise marks, concerning
untypical prepacked excise goods, on written application of the entity with the obligation to
mark excise goods with excise marks, indicates, by way of decision, the manner of placing
excise marks on prepacked excise goods or on excise goods, with consideration to the general
principles of placing excise marks.
    2. The decision, referred to in (1), defines in particular the type, name and origin of the
excise goods, the contents and type of prepacked excise goods, the detailed manner of placing
the excise marks and the period for which the decision was issued.

   Article 118. 1. The competent Minister of Public Finances defines, by way of Regulation:
1) the forms and models of excise marks, the quality criteria of excise marks, the elements of
   excise marks and the detailed ways of placing them on the typical prepacked goods for the
   given excise goods;
2) the model application on indicating the manner of placing excise marks.
    2. The competent Minister of Public Finances, when issuing the Regulation, referred to in
(1), takes into account:
1) the need to guarantee control of the circulation of excise goods and the correctness of
   placing excise marks;
2) the types of excise goods subject to obligatory marking with excise marks;
3) the diversity of prepacked products;
4) the need to apply appropriate security for excise marks.

   Article 119. 1. Excise marks may be removed from prepacked excise goods or from the
excise goods on which they were placed, providing that the excise goods are not sold in
Poland.
   2. Permission to remove the excise marks is given by the competent customs office
manager, on written application of the entity with the obligation to mark excise goods with
excise marks or the owner of the excise goods marked with excise marks.
   3. The removed excise marks are:
1) returned to their manufacturer or
2) immediately destroyed under the supervision of the competent customs office manager.
   4. The competent Minister of Public Finances defines, by way of Regulation:
1) specific cases in which excise marks may be removed from the prepacked excise goods or
   the excise goods;
2) the conditions and manner of removing the excise marks;
3) the model application for the removal of excise marks.
                                                 79

    5. The competent Minister of Public Finances, when issuing the Regulation, referred to in
(4), takes into account instances of returning excise goods in connection with physical flaws
arising in them and instances of moving excise goods outside Poland, as well as the need to
guarantee the safety of the system of excise marks.
   Article 120. 1. The competent Minister of Public Finances may introduce an obligation to
cancel excise marks placed on prepacked excise goods or excise goods with the purpose of
rendering it impossible to use them again.
    2. The competent Minister of Public Finances defines, by way of Regulation, the
obligation, referred to in (1), and also defines the detailed conditions, manner and method of
cancelling excise marks, taking into account the need to guarantee the safety of the system of
excise marks.

                                          Chapter 3
                              Procedure on receiving excise marks
    Article 121. 1. Duty excise marks are issued to registered entities, in keeping with Article
12, who are:
1)   the entity managing the tax warehouse, with reservation to point (6);
2)   the importer;
3)   the entity engaged in intra-Community acquisition;
4)   the tax representative;
5)   the entity engaged in production, referred to in Article 45(1)(1), (2), (4) or (5);
6)   the owner of the excise goods, referred to in Article 9(4).
     2. Legalisation excise marks are sold to:
1) the holder of excise goods, beyond the suspension arrangements for excise duties
   procedure, which are not marked, incorrectly marked or marked with inappropriate marks,
   in particular containing damaged marks;
2) the acquirer of goods defined under (1), sold by the competent public administration body.
    3. The entity with the obligation to mark excise goods with excise marks, submits a
preliminary order for excise marks for the calendar year at the office of the competent
Minister of Public Finances.
    4. If, during the calendar year, circumstances arise which justify the placement,
amendment or withdrawal of the preliminary order for excise marks, the entity to which these
circumstances refer must, once such circumstances arise, immediately submit at the office of
the competent Minister of Public Finances such placement, amendment or withdrawal .
    5. Failure to submit the preliminary order or amendment to the preliminary order leads to
the situation in which responsibility for the lack of excise marks is placed on the entity with
obligation to mark excise goods with excise marks, and who had failed to meet its duties
concerning the above.
    6. The competent Minister of Public Finances defines, by way of Regulation, the deadline
for submitting and the model preliminary order for excise marks, taking into account the need
to guarantee that entities with obligation to mark excise goods with excise marks are offered
the appropriate number and appropriate types of mark.
    Article 122. 1. The decision concerning the issue of duty excise marks or the sale of
legalization excise marks is made by the competent customs office manager for excise marks,
                                                80

on written application of the entity with the obligation to mark excise goods with excise
marks.
   2. When submitting the application, referred to in (1), the applicant attaches the following
documents:
1) tax in arrears constituting State budget income or a lack of these;
2) the type of business activity and the holding of a permit, concession or the obtaining of an
   entry on the register of entrepreneurs performing activities regulated in the understanding
   of the provisions of the Freedom of Economic Activities Act of 2 July 2004;
3) tax registration, referred to in Article 12;
4) notification of the planned intra-Community acquisition – in the situation, referred to in
   Article 74(1)(1);
5) the submitted secured due amount of duty;
6) the right to:
   a) manage a tax warehouse,
   b) acquire excise goods as a registered trader,
   c) acquire excise goods as an unregistered trader,
   d) act as tax representative,
   e) move excise goods from the tax warehouse as a duty payer, referred to in Article 9(4);
7) the held excise goods.
    3. Prior to issuing the decision relating to the issue or sale of excise marks, the entity with
obligation to mark excise goods with excise marks, who had applied for:
1) the issue of excise duty marks – pays in an amount which constitutes the value of duty
   excise marks and an amount to cover the cost of producing the duty excise marks;
2) the sale of legalization excise marks – pays in the amount due for these marks.
    4. The amount paid in to cover the cost of producing the duty excise marks constitutes at
least 80% of the overall cost of their production.
    5. Revenue obtained from the sale of legalization excise marks and revenue on amounts
paid in to cover the cost of producing the duty excise marks constitutes State budget income.
   6. The competent Minister of Public Finances defines, by way of Regulation, the level of:
1) amounts constituting the value of duty excise marks,
2) amounts paid in to cover the cost of producing the duty excise marks,
3) dues arising from the sale of legalization excise marks
– taking into account the need to secure revenue on excise duty, the level of excise duty
amounts on excise goods subject to obligatory marking with excise marks, the cost of
producing the excise marks.

    Article 123. 1. The competent customs office manager for excise marks refuses to issue or
sell excise marks, if:
1) the amount constituting the value of duty excise marks and the amount to cover the cost of
   producing the duty excise marks are not paid in, or
2) the amount for the legalization excise marks is not paid in, or
3) the required documents are not submitted.
    2. The competent customs office manager for excise marks, in consideration of the
possibility of the applicant incurring encumbrances relating to public law claims constituting
State budget income, may refuse to issue the duty excise marks to the applicant:
                                              81

1) who is in arrears in the payment of tax constituting State budget income or
2) who is subject to enforcement, liquidation or bankruptcy proceedings, with the exception
   of liquidation of a State company in order to privatise it.
    3. In the event of refusal to issue the duty excise marks or to sell the legalization excise
marks, the amount which constitutes the value of the duty excise marks and the amount to
cover the cost of producing the duty excise marks or the amount due for the legalization
excise marks are, respectively, subject to return by the competent customs office manager for
excise marks, to whom they were paid, within a deadline of 7 days, starting from the day that
the refusal was issued.

   Article 124. 1. Excise marks are issued by:
1) the competent customs office manager for excise marks;
2) the producer of the excise marks.
    2. The issue of excise marks by the competent customs office manager for excise marks or
its producer takes place on the basis of authorisation to collect the marks, issued by the
competent customs office manager for excise marks, on application of the entity with the
obligation to mark excise goods with excise marks.

   Article 125. The competent Minister of Public Finances defines, by way of Regulation:
1) model applications for the issue of excise marks, the sale of excise marks and the issue of
   authorisation to collect excise marks, as well as a model of this authorisation,
2) the detailed list and manner of submitting documents attached by the applicant to these
   applications
– taking into account the need to identify the type and number of issued excise marks and to
identify entities with the obligation to mark excise goods with excise marks, as well as the
frequency of submitting applications.

                                        Chapter 4
              Rights and obligations stemming from the use of excise marks

    Article 126. 1. Excise marks and authorisation to collect excise marks cannot be sold or in
any other manner whatsoever released or transferred for payment free of charge, to other
entities, with reservation to (3) and (4).
   2. Excise marks are returned:
1) to the competent customs office manager for excise marks, from whom they were
   collected;
2) the producer of the excise marks.
    3. The importer, the entity carrying out intra-Community acquisition and the tax
representative may transfer excise marks to an entity with registered office outside Poland
with the purpose of placing them on the prepacked excise goods or on the excise goods,
constituting the object of import or intra-Community acquisition.
   4. The owner of the excise goods, referred to in Article 9(4), may transfer excise marks
with the purpose of placing them on the prepacked excise goods or on the excise goods,
constituting its property, to an entity managing a tax warehouse.
                                               82

    Article 127. 1. The entity with obligation to mark excise goods with excise marks and the
entity managing a tax warehouse, where the excise goods of the owner are stored, referred to
in Article 9(4), must keep records of the excise marks. Records may be kept in paper or
electronic form, providing that the competent customs office manager has been informed
earlier in writing as to the manner of keeping records. The records should primarily contain
information on the number of issued excise marks, the number of marks used, damaged,
destroyed, lost or returned. Records should be stored for inspection purposes for a period of 5
years, starting from the end of the calendar year, on which they were drawn up.
   2. In the event of loss, destruction, damage, issue or return of excise marks in Poland, as
well as the destruction of damaged or damaged excise marks in Poland, a report is drawn up
which confirms that the above has taken place.
    3. Excise marks must be stored and carried in a manner guaranteeing protection against
theft, destruction or damage.
    4. Damaged excise marks are those original excise marks, whose permanent and visible
violation of physical properties permits the identification of the marks as to their originality,
type, name, dimensions, series, registration number and date of production.
    5. Destroyed excise marks are those original excise marks, whose permanent and visible
violation of physical properties renders it impossible to identify the mark as to its type, name,
series, identification number and date of production.
    6. Lost excise marks are original excise marks, obtained by the entity with obligation to
mark excise goods with these excise marks, which had lost them under circumstances other
than:
1) the placing of excise marks on the excise goods or the prepacked excise goods and the
   introduction of goods for sale containing the excise mark;
2) the return of the excise marks to the competent customs office manager for excise marks,
   from whom the entity had collected the excise marks, or to the producer;
3) the transfer of the excise marks by the importer, the entity carrying out intra-Community
   acquisition or the tax representative to the entity with registered office outside Poland with
   the purpose of placing them on the prepacked excise goods or on the excise goods,
   constituting the object of import or intra-Community acquisition;
4) the transfer of the excise marks by the owner of the excise goods, referred to in Article
   9(4), to the entity managing the tax warehouse with the purpose of placing them on the
   prepacked excise goods or on the excise goods;
5) the securing of the excise marks by the competent public administration body in
   connection with inspection of the system of excise marks.
    7. The competent Minister of Public Finances defines, by way of Regulation, the manner
of keeping records of excise marks and its model, the manner of carrying and storing excise
marks and the manner of drawing up the report and its model, with the purpose of
guaranteeing appropriate control of the issued excise marks.
     Article 128. 1. The importer, the entity carrying out intra-Community acquisition and the
tax representative must obtain, from the entity with registered office outside Poland,
settlement of the excise marks submitted to it.
   2. The owner of the excise goods, referred to in Article 9(4), must obtain from the entity
managing the tax warehouse, settlement of the excise marks submitted to it.
                                               83

     3. In particular the settlement should contain information on the type and number of
excise marks submitted with the purpose of placing them on the prepacked excise goods or on
the excise goods, the number of marks used, damaged, destroyed, lost or returned.
     4. Excise marks which are damaged or which have not been used should be returned to
the entity, which issued them, within 14 days of the day of receipt from the entity with
registered office outside Poland or the entity managing the tax warehouse, in which the excise
goods of the owner are stored, referred to in Article 9(4).
     5. The competent Minister of Public Finances defines, by way of Regulation, the detailed
scope and deadline for settling the excise marks, taking into account the need to guarantee
that they are settled correctly and punctually.

   Article 129. 1. Damaged or destroyed excise marks cannot be placed on the prepacked
excise goods or on the excise goods.
    2. Excise goods which are marked with damaged or destroyed excise marks cannot be
sold.
   3. Excise goods which are damaged or destroyed prior to being placed are returned, within
14 days of it being established that they are damaged or destroyed, to the entity who issued
them or they are destroyed under the supervision of the competent customs office manager.
     Article 130. 1. In the event of a new model of the excise mark being introduced, the
entities in possession of the hitherto marks must, within 14 days of the day of introducing this
model, return the unused marks to the entity which issued them.
    2. Hitherto excise marks placed on prepacked excise goods or on excise goods, prior to
the introduction of the new model of the excise mark, retain validity for a period of 12
months, starting from the day that the new model was introduced.
    3. In the event of stating nullity of the decision, referred to in Article 122(1), the entity
with obligation to mark excise goods with excise marks must return excise marks unused on
the day of delivery of the decision stating nullity, to the entity which issued them, within 14
days of the day of delivery of the decision stating nullity.
    4. In the event of activities, referred to in Article 12(1) no longer taking place, the entity
with obligation to mark excise goods with excise marks must settle the excise marks and
return the unused excise marks prior to the day of announcing that the activities have stopped.
   5. In the event of taking over the rights and obligations of the entity with obligation to
mark excise goods with excise marks, the settlement of excise marks and the return of unused
excise marks is carried out by the legal successor of the entity with obligation to mark excise
goods with excise marks or other persons who took over the rights and obligations, within 14
days of having taken over the rights and obligations.
    Article 131. 1. The party which returns the unused and undamaged excise marks, with
reservation to Article 132(4), is entitled to the immediate return of the amounts paid in,
constituting respectively the value of the duty excise marks or amounts for the legalization
excise marks.
   2. There is no reimbursement of amounts paid in to cover the cost of producing the duty
excise marks, with the exception of amounts paid in to cover the cost of producing the duty
excise marks returned in connection with the introduction of the new model of the excise
mark or statement of nullity of decision, referred to in Article 122(1), if the returned marks
                                               84

are unused and undamaged and are returned within the deadline, referred to in Article 130(1)
or (3).
    3. The competent Minister of Public Finances may define, by way of Regulation, other
instances of return of paid in amounts constituting the value of duty excise marks, taking into
consideration the principles relating to the carriage of excise goods and instances of the excise
goods not being introduced for sale in Poland.

   Article 132. 1. The entity with obligation to mark excise goods with excise marks must,
within a period of 12 months from the day of receiving the marks, place them on the
prepacked excise goods or on the excise goods, and in the case of import and intra-
Community acquisition – import into Poland goods which contain these marks.
    2. Following the expiry of the deadline, referred to in (1), the excise marks loose validity
for the entity which received them on decision of the competent customs office manager for
excise marks and cannot be placed by this entity on prepacked excise goods or on excise
goods.
    3. Marks, referred to in (2), are subject to return, within 30 days of the day on which they
lost validity, to the entity which issued them.
    4. The party which returns the marks, referred to in (2), is not eligible to reimbursement of
the paid in amounts constituting the value of duty excise marks, amounts paid in to cover the
cost of producing the duty excise marks and amounts for the legalization excise marks.

    Article 133. The competent Minister of Public Finances defines, by way of Regulation,
the manner of returning the excise marks, taking into account the need to guarantee protection
of these marks.

    Article 134. 1. In the event of loss of the excise marks as a result of loosing, damaging or
destroying them whilst marking excise goods with these marks, within acceptable standards
of loss, the entity managing the tax warehouse, the owner of the excise goods, referred to in
Article 45(1)(1), (2), (4) and (5), are entitled, respectively, to reimbursement of the paid in
amounts constituting the value of duty excise marks or have the right to receive in return new
excise marks.
   2. Excise marks which are damaged or destroyed whilst marking are returned to the entity
which issued them or are destroyed under the supervision of the competent customs office
manager.
    3. Reimbursement of paid in amounts constituting the value of duty excise marks or the
right to receive in return new excise marks takes place on condition that a report confirming
the following is submitted:
1) loss, damage or destruction of the excise marks and
2) return of damaged or destroyed excise marks or destruction of damaged or destroyed
   excise marks.
    4. In return for excise marks which were lost, damaged or destroyed whilst marking excise
goods with these marks, excise marks are issued which correspond to the type and series of
lost, damaged and destroyed excise marks.
   5. The competent Minister of Public Finances defines, by way of Regulation:
                                             85

1) permissible standards of loss of excise goods arising whilst marking excise goods, in
   relation to the total number of excise goods used during the calendar month for marking
   the excise goods,
2) the set of activities which constitute the process of marking excise goods with excise
   marks
– taking into account the need to control the correct use excise marks by entities with
obligation to mark excise goods with excise marks.

                                    Section VII
             Amendments to binding provisions, interim and end provisions

                                     Chapter 1
                            Amendments to binding provisions

   Article 135. In the Administrative Enforcement Proceedings Act of 17 June 1966 (Journal
of Laws of 2005, No 229(1954), as amended11)), Article 2(1)(8)(f) is given the following
wording:
   “f) excise duty,”.

   Article 136. In the Personal Income Tax Act of 26 July 1991 (Journal of Laws of 2000,
No 14(176), as amended14)), Article 23(1)(44) is given the following wording:
   “44) losses arising from losses of excise goods and excise duty on these losses not subject
   to exemption from excise duty ,”.

   Article 137. In the Corporate Income Tax Act of 15 February 1992 (Journal of Laws of
2000, No 54(654), as amended12)), Article 16(1)(47) is given the following wording:
   “47) losses arising from losses of excise goods and excise duty on these losses not subject
   to exemption from excise duty ,”.

    Article 138. In the Toll Motorways and National Road Fund Act of 27 October 1994
(Journal of Laws of 2004, No 256(2571), as amended.15)) the following amendments are
made:
1) Article 37(h)(3) is given the following wording:
    “3. The following products, referred to in (1), are motor oils or gas:
 Item            CN code                                 Product name
1.       2710 11 45                Petrol
         2710 11 49
2.       27 10 19 41               Diesel fuel
3.       2711                      (Wet) natural gas and remaining gas hydrocarbons
         ex 2901                   and liquefied and gas aliphatic gas hydrocarbons,
                                   used for passenger cars
4.       Irrespective of the CN Goods for the propulsion of passenger cars, with the
         code                      exclusion of those constituting self-contained fuels of
                                   bio-components in the understanding of the
                                   provisions of the Liquid Bio-fuels Act of 25 August
                                   2006 (Journal of Laws 169(1199) and of 2007, No
                                   35(217) and No 99(666))
2) Article 37(k)(1) is given the following wording:
                                                86

   “1. the obligation to pay the fuel fee arises on the day of tax commitment in excise duty
   on motor oils and gas, referred to in Article 37h.”.

    Article 139. In the Principles on Records and Identification of Duty and Tax Payers Act
of 13 October 1995 (Journal of Laws of 2004, No 269(2681), as amended16), Article 6(1) is
given the following wording:
    “1. VAT or excise duty payers must submit identification notification prior to embarking
    on the first activity subject to one of these taxes. Identification notification is performed
    irrespective of the registration notification, referred to in Article 96(1) of the Value Added
    Tax Act of 11 March 2004 (Journal of Laws, No 54(535), of 2005, No 14(113), No
    90(756), No 143(1199) and No 179(1484), of 2006, No 143(1028) and (1029), of 2007,
    No 168(1187) and No 192(1382) and of 2008, No 74(444), No 130(826) and No 141(888)
    and in Article 12(1) Excise Duty Act of ...........................(Journal of Laws....., No
    ..........).”.

   Article 140. In the Power Industry Act of 10 April 1997 (Journal of Laws of 2006, No
89(625), as amended4)), Article 41(2)(2) is given the following wording:
   “2) withdrawal by the competent customs office manager of the permit to manage the tax
   warehouse or its expiry, if prior to its expiry the entity did not receive a new permit, in the
   manner and in keeping with the principles defined under separate provisions – relating to
   activities under this permit;”.

   Article 141. In the Traffic Act of 20 June 1997 (Journal of Laws of 2005, No 108(908), as
amended17)), Article 72(1)(6a) is given the following wording:
   “6a) the document confirming payment of excise duty in Poland or the document
   confirming that there is no obligation to pay excise duty in Poland or the certificate
   confirming exemption from excise duty, if the passenger car was brought in from a
   Member State of the European Union and registered for the first time;”.

    Article 142. In the Act of 10 September 1999 – Treasury Penal Code (Journal of Laws of
2007, No 111(765) and No 112(766) and of 2008, No 66(410)), the following amendments
are introduced:
1) Article 30 (2) is given the following wording:
    “(2). In cases defined under Article 54(1) and (2), Article 55(1) and (2), Article 56(1) and
    (2), Article 63(1-4), Article 64(1-6), Article 65(1) and (3), Article 66(1), Article 67(1) and
    (2), Article 68(1) and (2), Article 69(1-3), Article 69a(1), Article 70(1), (2) and (4),
    Article 72, Article 73(1) and Article 73a(1) and (2) loss of objects defined under Article
    29 points (1-3) may be adjudicated.”;
2) Article 34(2) is given the following wording:
    “(2). The court may adjudicate a preventive measure banning a given kind of business
    activity in cases defined under Article 38 (1) and (2) and in the event of sentencing the
    offender for fiscal offences defined under Article 54(1), Article 55(1), Article 56(1),
    Article 63(1-3), Article 64(1-6), Article 65(1), Article 66(1), Article 67(1) and (2), Article
    68(1) and (2), Article 69(1-3), Article 69a(1), Article 70(1), (2) and (4), Article 72, Article
    73(1), Article 73a(1), Article 76(1), Article 77(1), Article 78(1), Article 82(1), Article
    83(1), Article 85(1) and (2), Article 86(1) and (2), Article 87(1) and (2), Article 88(1) and
    (2), Article 89(1) and (2), Article 90(1) and (2), Article 91(1), Article 92(1), Article 93,
    Article 97(1) and (2), Article 100(1), Article 101(1), Article 102(1), Article 103(1),
    Article 104(1), Article 106c(1), Article 106d(1), Article 106j(1), Article 107(1-3), Article
    107a(1) and Article 110.”;
                                              87

3) Article 38(2)(1) is given the following wording:
    “1) Article 54(1), Article 55(1), Article 56(1), Article 63(1-3), Article 65(1), Article
    67(1), Article 69a(1), Article 70(1), (2) and (4), Article 73a(1), Article 76(1), Article
    77(1), Article 78(1), Article 86(1) and (2), Article 87(1) and (2), Article 90(1), Article
    91(1) and Article 92(1), and the amount of the reduced public law claims or the value of
    the banned activity is great;”;
4) Article 49(2) is given the following wording:
    “(2). In cases defined under Article 54(3), Article 55(3), Article 56(3), Article 63(5),
    Article 64(7), Article 66(2), Article 67(4), Article 68(3), Article 69a(2), Article 70(5),
    Article 73 (2), Article 73a(3), Article 86(4), Article 87(4), Article 88(3), Article 89(3),
    Article 90(3), Article 107(4) and Article 107a(2) loss of objects defined under (1) may be
    adjudicated.”;
5) in Article 53:
    a) (24) and (25) are repealed,
    b) (30 c) is given the following wording:
     “(30c) In Chapter 6 the meaning of the expression “summarizing information” is that of
    the wording of the Value Added Tax Act of 11 March 2004 (Journal of Laws, No 54(535),
    of 2005, No 14(113), No 90(756), No 143(1199) and No 179(1484), of 2006, No
    143(1028) and (1029), of 2007, No 168(1187) and No 192(1382) and of 2008, No
    74(444), No 130(826) and No 141(888) and in the Excise Duty Act of
    ...........................(Journal of Laws....., ..........).”.
    c) after (30c) there is added (30d) which is given the following wording:
    “(30d) In Chapter 6 of the Code the expressions: “intra-Community supply”, “export”,
    “import”, “legalization excise marks”, “intra-Community acquisition”, “duty suspension
    arrangement”, “tax warehouse”, “excise duty advance payment”, “damaged excise
    marks”, “excise goods”, “excise marks”, “destroyed excise marks” contain the meaning
    expressed in the ................Excise Duty Act.”;
6) Article 63(1-3) are given the following wording:
    “(1). Anyone who, in violation of the provisions of the Act, issues excise goods, towards
    which the suspension arrangements for excise duties procedure has been finished, without
    previously marking them with excise marks, is subject to a fine of 720 daily rates or 2
    years in prison or both of these punishments.
    (2). The same penalty applies to anyone who, in violation of the provisions of the Act,
    brings into Poland excise goods without previously marking them with excise marks.
    (3). The penalty defined under (1) is also imposed on anyone who engages in the banned
    activity defined under (1) and (2) in relation to excise goods, incorrectly marked or
    marked with inappropriate marks, in particular containing marks which are damaged,
    destroyed, counterfeit, altered or invalid.”;
7) Article 64 is given the following wording:
    “Article 64. (1). Anyone who, without written notification in keeping with the deadline of
    the authorised body, moves excise goods from the tax warehouse which do not contain
    excise marks with the purpose of performing intra-Community delivery or export, is
    subject to a fine of 720 daily rates.
    (2). The same penalty applies to anyone who produces, outside the tax warehouse, grape
    wine obtained from own cultivated grapes, referred to in Article 45(1)(2) of the Excise
    Duty Act of …, without written notification in keeping with the deadline of the authorised
    body, and issues these excise goods which do not contain excise marks with the purpose
    of performing intra-Community delivery or export.
    (3). The same penalty applies to anyone who produces, outside the tax warehouse, ethyl
    alcohol, referred to in Article 45(1)(4) of the Excise Duty Act of …, in a distillery which
                                                88

    is legally and economically independent of all other distilleries and which does not
    operate under licence obtained from another entity, without written notification in keeping
    with the deadline of the authorised body, and issues these excise goods which do not
    contain excise marks with the purpose of performing intra-Community delivery or export.
    (4). The same penalty applies to anyone who produces, outside the tax warehouse, excise
    goods, with the exclusive use of excise goods, on which excise duty has been paid
    equivalent to, or higher than, the amount of excise duty to be paid on produced excise
    goods, without written notification in keeping with the deadline of the authorised body,
    and issues these excise goods which do not contain excise marks with the purpose of
    performing intra-Community delivery or export.
    (5). The same penalty applies to anyone who produces, outside the tax warehouse, excise
    goods, on which an advance excise duty payment has been made, without written
    notification in keeping with the deadline of the authorised body, and issues these excise
    goods which do not contain excise marks with the purpose of performing intra-
    Community delivery or export.
    (6). The penalty defined under (1) is also imposed on anyone who, without written
    notification in keeping with the deadline of the authorised body, places in a free
    warehouse and free zone, excise goods which do not contain excise marks, designated for
    sale at commercial units located there.
    (7). In the event of a smaller violation taking place, the offender defined in (1– 6), is
subject to a fine for fiscal offence.”;
 8) Article 65(1-2) is given the following wording:
    “(1). Anyone who acquires, stores, transports, sends or carries excise goods constituting
    the subject of a banned act, defined under Article 63, Article 64 or Article 73 or who
    assists in selling these or accepts these excise goods or assists in hiding them, is subject to
    a fine of 720 daily rates or 3 years in prison or both of these punishments.
    (2). Anyone who acquires, stores, transports, sends or carries excise goods, which on the
    basis of accompanying circumstances that person should and could presume constitute the
    subject of a banned act, defined under Article 63, Article 64 or Article 73 or who assists in
    selling these or accepts these excise goods or assists in hiding them, is subject to a fine of
    720 daily rates.”;
 9) Article 66(1) is given the following wording:
    “(1). Anyone who marks excise goods incorrectly or with inappropriate excise marks, in
    particular containing marks which are damaged, destroyed, counterfeit, altered or invalid,
    is subject to a fine of 720 daily rates.”;
10) Article 68 is given the following wording:
    “Article 68(1) Anyone who fails to meet the obligation of drawing up a list and presenting
    it for approval to the competent body in the event of there being circulated beyond the
    suspension arrangements for excise duties procedure excise goods which are not marked,
    incorrectly marked or marked with inappropriate marks, in particular containing damaged
    marks, destroyed, counterfeit, altered or invalid, is subject to a fine of 720 daily rates.
    (2). The same penalty applies to anyone who fails to meet the obligation of marking
    excise goods with legalization excise marks.
    (3). In the event of a smaller violation taking place, the offender defined in (1) or (2), is
    subject to a fine for fiscal offence.”;
11) Article 69(1-3) is given the following wording:
    “(1). Anyone who, without official inspection, embarks on activities directly related to the
    production, import or circulation of excise goods, as well as the marking of them with
    excise marks, is subject to a fine of 720 daily rates.
                                               89

    (2). Anyone who gives false details about the type, quantity and quality of produced
    excise goods, is subject to a fine of 360 daily rates.
    (3). Anyone who, in violation of the regulations, removes excise goods from the place of
    production, processing, consumption, storage or during carriage, is subject to a fine of 240
    daily rates.”;
12) after Article 69 there is added Article 69a which reads as follows:
    “Article 69a.(1). Anyone who, contrary to the provisions of the Act, violates the
    conditions of applying the procedure on suspension arrangements for excise duties,
    produces, stores or reloads excise goods beyond the tax warehouse, is subject to a fine of
    720 daily rates or 2 years in prison or both of these punishments.
    (2). In the event of a smaller violation taking place, the offender defined in (1) is subject
    to a fine for fiscal offence.”;
13) Article 70(2) is given the following wording:
    “(2). The same penalty applies to anyone who, with the purpose of using or introducing
    into circulation acquires, or in any other manner accepts excise marks from an
    unauthorised person or removes them from excise goods in order to use them again or
    circulate them.”;
14) Article 72 is given the following wording:
    “Article 72. Anyone who, despite the obligation to do so, does not settle within the
    deadline with the competent authority, the level of used excise marks, in particular fails to
    return marks which are unused, damaged, destroyed or invalid, is subject to a fine of 360
    daily rates.”;
15) Article 73 (1) is given the following wording:
    “(1). Anyone who, in using the excise goods, changes the aim, purpose or fails to abide by
    another condition, on which the Act makes exemption of excise goods dependent on the
    obligation to mark with excise marks, is subject to a fine of 720 daily rates.”;
16) Article 74 is repealed.

    Article 143. In the Ethyl Alcohol and Tobacco Goods Production Act of 2 March 2001
(Journal of Laws, No 31(353), of 2002, No 166(1362) and of 2004, No 29(257) and No
173(1808)) Article 7 is given the following wording:
    “Article 7. The authority which keeps the registers, referred to in Article 3(1) and (2),
    issues a decision banning the entrepreneur from embarking on activities in cases defined
    in the provisions of the Freedom of Economic Activities Act of 2 July 2004 and in cases
    of the duty payer‟s corresponding customs office manager withdrawing – in the light of
    violation of the provisions of the law, in the manner and in keeping with the principles
    defined under separate provisions – the permit to manage the tax warehouse.

    Article 144. In the Production and Bottling of Wine Products, Trade in these Products and
Organisation of the Wine Market Act of 22 January 2004 (OJ, No 34(292), as amended7))
Article 21 is given the following wording:
    “Article 21. The authority which keeps the register, issues a decision banning the
    entrepreneur from embarking on activities in cases defined in the provisions of the
    Freedom of Economic Activities Act of 2 July 2004 and in cases of the duty payer‟s
    corresponding customs office manager withdrawing – in the light of violation of the
    provisions of the law, in the manner and in keeping with the principles defined under
    separate provisions – the permit to manage the tax warehouse.”.

   Article 145. In the Value Added Tax Act of 11 March 2004 (Journal of Laws, No
54(535), as amended 18)) the following amendments are introduced:
                                               90

1) Article 2(27) receives the following wording:
   “27) excise goods – is understood as excise goods in the understanding of the provisions
   of excise duty, with the exclusion of:
   a) gas in the gas system,
   b) electricity in the electrical power system;”;
2) in Article 10(3)(2), in Article 13(2)(3), in Article 23(2), (3) and (12) and in Article 24(2),
   (3) and (9) the use in various cases of the words “harmonised excise goods” is replaced by
   the use in the appropriate case of the words “excise goods”;
3) Article 113(13)(1)(b) is given the following wording:
   “b) goods subject to excise duty, with the exception of electricity (PKWiU 40.10.10) and
   tobacco products in the understanding of the provisions of excise duty,”.

    Article 146. In the Freedom of Economic Activities Act of 2 July 2004 (Journal of Laws
of 2007, No 155(1095), as amended6)), Article 75(1)(25) is given the following wording:
    “25) the Excise Duty Act of … (Journal of Laws, No …, ...);”.

   Article 147. In the Bio-components and Liquid Bio-fuels Act of 25 August 2006 (OJ, No
169(1199) and of 2007, No 35(217) and No 99(666)), Article 9(2)(2) is given the following
wording:
   “2) withdrawal, by the duty payer‟s corresponding customs office manager, of the permit
   to manage the tax warehouse, in the light of violation of the provisions of the law.”.

   Article 148. In the Production of Spirit Drinks and Registration and Protection of the
Geographical Markings of Spirit Drinks Act of 18 October 2006 (Journal of Laws, No
208(1539) and of 2008, No 171(1056), Article 8(1) is given the following wording:
   “1. The Minister issues a decision banning the entrepreneur from embarking on activities
   relating to the production or bottling of spirit drinks in cases defined by the Freedom of
   Economic Activities Act of 2 July 2004 and in the case of the duty payer‟s corresponding
   customs office manager withdrawing – in the light of violation of the provisions of the
   law, in the manner and in keeping with the principles defined under separate provisions –
   the permit to manage the tax warehouse.”.

    Article 149. In the Oil Supplies, Oil Products, Natural Gas and the Principles of
Procedure in Situations of Threat to the Fuel Security of the State and Disruptions on the Oil
Market Act of 16 February 2007 (Journal of Laws, No 52(3430 and of 2008, No 157(976).
Article 16(2)(2)(b) is given the following wording:
    “b) withdrawal of the permit to manage a tax warehouse or of the permit to acquire excise
    goods or of the expiry of such a permit, if prior to its expiry the entity did not receive a
    new permit”.

                                          Chapter 2
                                      Interim Provisions

    Article 150. 1. If the excise duty liability relating to non-harmonized excise goods in the
understanding of the Act, referred to in Article 163, arose prior to the day of entry into force
of this Act and the due excise duty had not been paid by that day, the hitherto provisions
apply.
                                                91

    2. If the excise duty liability relating to harmonized excise goods in the understanding of
the Act, referred to in Article 163, arose prior to the day of entry into force of this Act, but by
that day the end of procedure on suspension arrangements for excise duties had not taken
place, application is made of the provisions of this Act.
    3. If the excise duty liability relating to excise goods located in the tax warehouse did not
arise prior to the day of entry into force of this Act, application is made of the provisions of
this Act, presuming that tax liability arose at the time that these excise goods were introduced
in the tax warehouse.
    4. If tax liability in situations other than those mentioned under (1-3) arose prior to the day
of entry into force of this Act and the due excise duty had not been paid by that day, the
hitherto provisions apply.
    5. If the harmonised excise goods in the understanding of the Act, referred to in Article
163, had been, as goods relieved of excise, moved from the tax warehouse prior to the day of
entry into force of this Act, application is made of the provisions of this Act.

    Article 151. 1. An entity registered on the basis of Article 14(1) of the Act, referred to in
Article 163, is recognised as an entity registered in keeping with Article 12 of this Act,
without the need to acknowledge these circumstances by the competent customs office
manager.
   2. A duty payer engaged in excise goods business activities subject to excise duty
exclusively with a zero excise duty rate, registered prior to the day of entry into force of this
Act, is subject to ex officio deletion from the register by the competent customs office
manager.
    3. An entity which does not have the obligation to submit a registration notification on the
basis of Article 14(1) of the Act, referred to in Article 163, but does have this obligation on
the basis of Article 12(1) of this Act, must meet this obligation within a period of 30 days
from the day of entry into force of this Act.
    4. An entity engaged in business activities in the field of energy products, referred to in
Article 85(2), on the day of entry into force of this Act, not being an entity registered in
keeping with Article 12(1) of this Act, must, within a period of 14 days from the day of entry
into force of this Act, inform the competent customs office manager of such fact, in order to
determine the permissible standards of consumption, referred to in Article 81(2)(2).
    5. The entity, which was a registered entity on the basis of Article 14(1) of the Act,
referred to in Article 163, does not have to submit the notice, referred to in (4).

    Article 152. 1. Permission to manage a tax warehouse, to engage in the activities of a
registered trader, to engage in the activities of an unregistered trader and to carry out the
activities of a tax representative, issued prior to the day of entry into force of this Act, is
recognised as permission issued in keeping with its provisions.
   2. Procedure concerning permits issued under the Act, referred to in Article 163, initiated
and not finished prior to the entry into force of this Act, is carried out on the basis of this Act.

    Article 153. 1. Concerning excise security submitted prior to the entry into force of this
Act and exemption from the obligation to submit excise security, granted prior to the day of
entry into force of this Act, application is made of the hitherto provisions, in that Article 61(7)
of this Act applies on the day that it comes into force.
                                                92

   2. Excise security, referred to in (1), with a defined validity date, cannot be prolonged.
    3. Exemption from the obligation to submit excise security, granted prior to the day of
entry into force of this Act, cannot be prolonged.

    Article 154. Procedure concerning reimbursement of due excise duty on the basis of the
provisions of the Act, referred to in Article 163, and not carried out prior to the day of entry
into force of this Act, takes place on the basis of hitherto provisions.

   Article 155. 1. The duty payer, referred to in Article 9(4), who within a month of the day
of entry into force of this Act submits, at the competent customs office, an application
requesting the issue of an exit permit, may, having submitted the application, without this
permit exit as a duty payer, excise goods from somebody else‟s tax warehouse beyond the
suspension arrangements for excise duties procedure, but not for longer than a period of three
months from the day of entry into force of this Act.
    2. An entity who within a month of the day of entry into force of this Act submits, at the
competent customs office, an application, referred to in Article 28(1) and (2), and excise
security, may, having submitted the application, without the permit, referred to in Article
28(1), engage in the activities of an intermediary entity, but not for longer than a period of
three months from the day of entry into force of this Act.

    Article 156. 1. The decisions determining standards of permissible losses and permissible
standards of consumption of harmonised excise goods, issued on the basis of Article 5(3) of
the Act, referred to in Article 163, and concerning the standards of permissible losses and
permissible standards of consumption, also determined on the basis of this Act, remain in
force for not longer than up to the time of issuing the decision on the basis of this Act.
    2. The decisions determining standards of permissible losses and permissible standards of
consumption of harmonised excise goods, issued on the basis of Article 5(3) of the Act,
referred to in Article 163, and concerning the standards of permissible losses and permissible
standards of consumption, which are not determined on the basis of this Act, loose their force
on the day of entry into force of this Act.

   Article 157. The entity which attains, as a by-product, a small quantity of energy
products, referred to in Article 83(2) must, within 14 days of the day of entry into force of the
Act, inform in writing the competent customs office manager of the type of business activity
and the type of goods attained.

    Article 158. 1. If the settlement period for electricity started prior to the day of entry into
force of this Act and covers the binding period of this Act, the seller of electricity to the final
purchaser must include in the issued invoice the due excise duty for the binding period of this
Act.
    2. In the event of it proving impossible to determine the amount of electricity collected
during the binding period of this Act, its amount is determined in proportion to the binding
period of this Act in relation to the settlement period.
    3. Exemption, referred to in Article 25(1), is applied on the basis of the document
confirming discontinuation of the certification of origin of electricity generated not earlier
than on the day of entry into force of this Act.
                                                   93

    Article 159. The competent Minister of Public Finances may, by way of Regulation, by
31 December 2011, reduce excise duty rates on excise goods defined under the Act and
differentiate these depending on the type of excise goods, as well as determine the conditions
of applying them, for a period of not more than three months at intervals of at least three
months, concerning given excise goods, taking into account the economic standing of the
State.

    Article 160. The competent Minister of Public Finances, on the day that this Act comes
into force announces, by way of Notice, in the Official Gazette of the Republic of Poland
“Monitor Polski”, the most popular price category for cigarettes in 2009, determined in the
manner defined under Article 95(5), with binding force from 8 January 2009. Up to 7 January
2009 application is made of the hitherto level of the most popular price category for
cigarettes.

    Article 161. Excise marks, issued on the basis of the Act, referred to in Article 163, are
regarded as excise marks in the understanding of this Act.

    Article 162. Up to 31 October 2013, instead of the excise duty rate, referred to in Article
85(1)(12)(a) second indent, for excise goods defined under this provision application is made
of the zero excise duty rate.


                                                Chapter 3
                                             Final provisions

   Article 163. The Excise Duty Act of 23 January 2004 ceases to be in force (Journal of
Laws 29(257) and No 68(623), of 2005, No 160(1341), of 2006, No 169(1199), of 2007, No
99(666) and of 2008, No 118(745) and No 145(915)).

      Article 164. The Act comes into force on 1 January 2009.

______________________
 1)
      This Act, within the scope of its regulation, implements the following Directives:
      1) Council Directive 83/183/EEC of 28 March 1983 on tax exemptions applicable to permanent
      imports from a Member State of the personal property of individuals (OJ L 105 of 23 April 1983,
      p. 64, as amended; OJ Special Polish Edition, Chapter 9, v. l, p. 117, as amended);
      2) Council Directive 83/182/EEC of 28 March 1983 on tax exemptions within the Community for
      certain means of transport temporarily imported into one Member State from another (OJ L 105 of
      23 April 1983, p. 59, as amended; OJ Special Polish Edition, Chapter 9, v. l, p. 112, as amended);
      3) Council Directive 92/12/EEC of 25 February 1992 on the general arrangements for
      products subject to excise duty and on the holding, movement and monitoring of such products
      (OJ L 76 of 23 March 1992, p. l, as amended; OJ Special Polish Edition, Chapter 9, v. l, p. 179,
      as amended);
      4) Council Directive 92/79/EEC of 19 October 1992 on the approximation of taxes on
      cigarettes (OJ L 316 of 31 October 1992, p. 8, as amended; OJ Special Polish Edition, Chapter
      3, v. 13, p. 202, as amended);
      5) Council Directive 92/80/EEC of 19 October 1992 on the approximation of taxes on
      manufactured tobacco other than cigarettes (OJ L 316 of 31 October 1992, p. 10, as amended; OJ
      Special Polish Edition, Chapter 3, v. 13, p. 204, as amended);
                                                 94

  6) Council Directive 92/83/EEC of 19 October 1992 on the approximation of taxes on cigarettes
  (OJ L 316 of 31 October 1992, p. 21, as amended; OJ Special Polish Edition, Chapter 9, v. 13, p.
  206, as amended);
  7) Council Directive 92/84/EEC of 19 October 1992 on the approximation of the rates of excise
  duty on alcohol and alcoholic beverages (OJ L 316 of 31 October 1992, p. 29; OJ Special Polish
  Edition, Chapter 9, v. 1, p. 213);
  8) Council Directive 95/59/EC of 27 November 1995 on taxes other than turnover taxes which
  affect the consumption of manufactured tobacco (OJ L 291 of 6 December 1995, p. 40, as
  amended; OJ Special Polish Edition, Chapter 9, v. l, p. 283, as amended);
  9) Council Directive 95/60/EC of 27 November 1995 on fiscal marking of gas oils and kerosene
  (OJ L 291 of 6 December 1995, p. 46; OJ Special Polish Edition, Chapter 9, v. 1, p. 289);
  10) Council Directive 2003/96/EC of 27 October 2003 restructuring the Community framework
  for the taxation of energy products and electricity (OJ L 283 of 31 October 2003, p. 51, as
  amended; OJ Special Polish Edition, Chapter 9, v. l, p. 405, as amended);
  11) Council Directive 2004/74/EC of 29 April 2004 amending Directive 2003/96/EC as regards
  the possibility for certain Member States to apply, in respect of energy products and electricity,
  temporary exemptions or reductions in the levels taxation (OJ L 157 of 30 April 2004, p. 87; OJ
  Special Polish Edition, Chapter 9, v. 2, p 16);
  12) Council Directive 2006/79/EC of 5 October 2006 on the exemption from taxes of imports of
  small consignments of goods of a non-commercial character from third countries (OJ L 286 of 17
  October 2006, p. 15);
  13) Council Directive 2007/74/EC of 20.12.07 on the exemption from taxes of imports of small
  consignments of goods of a non-commercial character from third countries (OJ L 346 of 29.12.07,
  p. 6).

    This Act changes the following Acts: the Administrative Enforcement Proceedings Act of 17 June
    1966, the Personal Income Tax Act of 26 July 1991, the Corporate Income Tax Act of 15 February
    1992, the Toll Motorways and National Road Fund Act of 27 October 1994, the Principles on
    Records and Identification of Duty and Tax Payers Act of 13 October 1995, the provisions of the
    Power Industry Act of 10 April 1997, the Traffic Act of 20 June 1997, the Act of 10 September
    1999 – Treasury Penal Code, the Ethyl Alcohol and Tobacco Goods Production Act of 2 March
    2001, the Production and Bottling of Wine Products, Trade in these Products and Organisation of
    the Wine Market Act of 22 January 2004, the Value Added Tax Act of 11 March 2004, the
    Freedom of Economic Activities Act of 2 July 2004, the Bio-components and Liquid Bio-fuels
    Act of 25 August 2006, the Production of Spirit Drinks and Registration and Protection of the
    Geographical Markings of Spirit Drinks Act of 18 October 2006 and the Oil Supplies, Oil
    Products, Natural Gas and the Principles of Procedure in Situations of Threat to the Fuel Security
    of the State and Disruptions on the Oil Market Act of 16 February 2007.
2)
    The Kingdom of Spain may notify, by way of declaration, withdrawal from this exemption
    concerning the Canary Islands, in relation to all or some excise goods, starting from the first day
    of the following month after submitting the return.
3)
    The French Republic may notify, by way of declaration, withdrawal from this exemption starting
    from the first day of the following month after submitting the return.
4)
    Amendments to the consolidated text of the referred to Act were notified in the Journal of Laws of
    2006, No 104(708) and No 158(1123) and No 170(1217) and of 2007, No 21(124), No 52(343),
    No 115(790) and No 130(905).
5)
    Amendments to the consolidated text of the referred to Act were notified in the Journal of Laws of
    2005, No 85(727), No 86(732) and No 143(1199), of 2006, No 66(470), N0 104(708), No
    143(1031), No 217(1590) and No 225(1635), of 2007, No 112(769), No 120(818), No 192(1378)
    and No 225(1671) and of 2008, No 118(745) and No 141(888).
 6)
    Amendments to the consolidated text of the referred to Act were notified in the Journal of Laws of
    2007, No 180(1280) and of 2008, No 70(416), No 116(732), No 141(888) and No 171(1056).
7)
    Amendments to the referred to Act were notified in the Journal of Laws of 2004, No 96(959) and
    No 173(1808) of 2006, No 171(1225) and No 208(1541) and of 2008, No 145(915).
                                                95

8)
   Amendments to the consolidated text of the referred to Act were notified in the Journal of Laws of
   2002, No 126(1070) and No 141(1178) and No 144(1208) and of 153(1271), No 169(1385), and
   (1387) and No 241 (2074), of 2003, No 50 (424), No 60(535), No 65 (594), No 228 (2260) and No
   229 (2276), of 2004, No 64 (594), No 68(623), No 91(870), No 96(959), No 121(1264), No
   146(1546) and No 173(1808), of 2005, No 83(719), No 85(727), No 167(1398) and No 183(1538),
   of 2006, No 104(708), No 157(1119), No 190(1401) and No 245(1775), of 2007, No 42(272) and
   No 112(769) and of 2008, No 171(1056).
9)
    Amendments to the referred to Act were notified in the Journal of Laws of 2004, No 91(870) and
   No 96(959), of 2005, No 83(719), No 143(1204), No 167(1396), No 183(1538) and No
   184(1539), of 2006, No 157(1119), of 2007, No 50(331), No 82(557), No 102(691) and No
   112(769) and of 2008, No 171(1056).
10)
    Amendments to the consolidated text of the referred to Act were notified in the Journal of Laws
   of 1971, No 27(252), of 1976, No 19(122), of 1982, No 11(81), No 19(147) and No 30(210), of
   1984, No 45(242), of 1985, No 22(99), of 1989, No 3(11), of 1990, No 34(198), No 55(321) and
   No 79(464), of 1991, No 107(464) and No 115(496), of 1993, No 17(78), of 1994, No 27(96), No
   85(388) and No 105(509), of 1995, No 83(417), of 1996, No 114(542), No 139(646) and No
   149(703), of 1997, No 43(272), No 115(741), No 117(751) and No 157(1040), of 1998, No
   106(668) and No 117(758), of 1999, No 52(532), of 2000, No 22(271), No 74(855) and 857, No
   88(983) and No 114(1191), of 2001, No 11(91), No 71(733), No 130(1450) and No 145(1638), of
   2002, No 113(984) and No 141(1176), of 2003, No 49(408), No 60(535), No 64(592) and No
   124(1151), of 2004, No 91(870), No 96(959), No 162(1692), No 172(1804) and No 281(2783), of
   2005, No 48(462), No 157(1316) and No 172(1438), of 2006, No 133(935) and No 164(1166), of
   2007, No 80(538), No 82(557) and No 181(1287) and of 2008, No 116(731) and No 163(1012).
11)
    Amendments to the referred to Act were notified in the Journal of Laws of 2006, No 104(708) and
   (711), No 133(935), No 157(1119) and No 187(1381) and of 2007, No 89(589), No 115(794), No
   176(1243) and No 192(1378).
 12 )
      Amendments to the referred to Act were notified in the Journal of Laws of 2000, No 60(700) and
   703, No 86(958), No 103(1100), No 117(1228) and No 122(1315) and 1324, of 2001, No
   106(1150), No 110(1190) and No 125(1363), of 2002, No 25(253), No 74(676), No 93(820), No
   141(1179), No 169(1384), No 199(1672), No 200(1684) and No 230(1922), of 2003, No 45(391),
   No 96(874), No 137(1302), No 180(1759), No 202(1957), No 217(2124) and No 223(2218), of
   2004, No 6(39), No 29(257), No 54(535), No 93(894), No 121(1262), No 123(1291), No
   146(1546), No 171(1800), No 210(2135) and No 254(2533), of 2005, No 25(202), No 57(491),
   No 78(684), No 143(1199), No 155(1298), No 169(1419) and (1420), No 179(1484), No 180 No
   1495) and No 183(1538), of 2006, No 94(651), No 107(723), No 136(970), No 157(1119), No
   183(1353), No 217(1589) and No 251(1847), of 2007, No 165(1169), No 171(1208) and No
   176(1238) and of 2008, No 141(888).
13)
    Amendments to the referred to Act were notified in the Journal of Laws of 1965, No 15(113), of
   1974, No 27(157) and No 39(231), of 1975, No 45(234), of 1982, No 11(82) and No 30(210), of
   1983, No 5(33), of 1984, No 45(241) and (242), of 1985, No 20(86), of 1987, No 21(123), of
   1988, No 41(324), of 1989, No 4(21) and No 33(175), of 1990, No 14(88), No 34(198), No
   53(306), No 55(318) and No 79(464), of 1991, No 7(24), No 22(92) and No 115(496), of 1993,
   No 12(53) of 1994, No 105 No 509, of 1995, No 83(417), of 1996, No 24(110), No 43(189), No
   73(350) and No 149(703), of 1997, No 43(270), No 54(348), No 75(471), No 102(643), No
   117(752), No 121(769) and (770), No 133(882), No 139(934), No 140(940) and No 141(944), of
   1998, No 106(668) and No 117(757), of 1999, No 52(532), of 2000, No 22(269) and (271), No
   48(552) and 554, No 55(665), No 73(852), No 94(1037), No 114(1191) and (1193) and No
   122(1314), (1319) and (1322), of 2001, No 4(27), No 49(508), No 63(635), No 98(1069), (1070)
   and (1071), No 123(1353), No 125(1368) and No 138(1546), of 2002, No 25(253), No 26(265),
   No 74(676), No 84(764), No 126(1069) and (1070), No 129(1102), No 153(1271), No 219(1849)
   and No 240(2058), of 2003, No 41(360), No 42 No 363, No 60(535), No 109(1035), No 119 No
   1121), No 130(1188), No 139(1323), No 199(1939) and No 228(2255), of 2004, No 9(75), No
   11(101), No 68(623), No 91(871), No 93(891), No 121(1264), No 162(1691), No 169(1783), No
   172(1804), No 204(2091), No 210(2135), No 236(2356) and No 237(2384), of 2005, No 13(98),
   No 22(185), No 86(732), No 122(1024), No 143(1199), No 150(1239), No 167(1398), No
                                               96

   169(1413) and (1417), No 172(1438), No 178(1478), No 183(1538), No 264(2205) and No
   267(2258), of 2006, No 12(66), No 66(466), No 104(708) and (711), No 186(1379), No 208(1537)
   and (1540), No 226(1656) and No 235(1699), of 2007, No 7(58), No 47(319), No 50(331), No 99
   (662), No 106(731), No 112(766) and (769), No 115(794), No 121(831), No 123(849), No
   176(1243), No 181(1287), No 192(1378) and No 247(1845) and of 2008, No 59(367), No 96(609)
   and (619), No 110(706), No 116(731), No 119,(772), No 120(779), No 122(796) and No
   171(1056).
 14)
     Amendments to the referred to Act were notified in the Journal of Laws of 2000, No 22(270), No
   60(703), No 70(816), No 104(1104), No 117(1228) and No 122(1324), of 2001, No 4(27), No
   8(64), No 52(539), No 73(764), No 74(784), No 88(961), No 89(968), No 102(1117), No
   106(1150), No 110(1190), No 125(1363) and (1370) and No 134(1509), of 2002, No 19(199), No
   25(253), No 74(676), No 78(715), No 89(804), No 135(1146), No 141(1182), No 169(1384), No
   181(1515), No 200(1679) and No 240(2058), of 2003, No 7(79), No 45(391), No 65(595), No
   84(774), No 90(844), No 96(874), No 122(1143), No 135(1268), No 137(1302), No 166(1608),
   No 202(1956), No 222(2201), No 223(2217) and No 228(2255), of 2004, No 29(257), No
   54(535), No 93(894), No 99(1001), No 109(1163), No 116(1203), (1205) and (1207), No
   120(1252), No 123(1291), No 162(1691), No 210(2135), No 263(2619) and No 281(2779) and
   (2781), of 2005, No 25(202), No 30(262), No 85(725), No 86(732), No 90(757), No 102(852), No
   143(1199) and (1202), No 155(1298), No 164(1365) and (1366), No 169(1418) and (1420), No
   177(1468), No 179(1484), No 180(1495) and No 183(1538), of 2006, No 46(328), No 104(708)
   and (711), No 107(723), No 136(970), No 157(1119), No 183(1353) and (1354), No 217(1588),
   No 226(1657) and No 249(1824), of 2007, No 35(219), No 99(658), No 115(791) and 793, No
   176(1243), No 181(1288), No 191(1361) and (1367), No 192(1378) and No 211(1549) and of
   2008, No 97(623), No 141(888) and No 143(894).
15 )
     Amendments to the referred to Act were notified in the Journal of Laws of 2004, No 273(2703),
   of 2005, No 155(1297) and No 172(1440), of 2006, No 12(61) and of 2007, No 23(136) and No
   99(666).
16)
     Amendments to the referred to Act were notified in the Journal of Laws of 2005, No 14(113) of
   2006, No 104(708) and (711) and of 2007, No 112(769).
17)
     Amendments to the referred to Act were notified in the Journal of Laws of 2005, No 109(925),
   No 175 (1462), No 179(1486) and No 180(1494) and (1497), of 2006, No 17(141), No 104(708)
   and (711), No 190(1400), No 191(1410) and No 235(1701), of 2007, No 52(343), No 57(381), No
   99(661), No 123(845) and No 176(1238) and of 2008, No 37(214), No 100(649) and No
   163(1015).
18)
     Amendments to the referred to Act were notified in the Journal of Laws of 2005, No 14(113), No
   90(756), No 143(1199) and No 179(1484), of 2006, No 143(1028) and (1029), of 2007, No
   168(1187) and No 192(1382) and of 2008, No 74(444), No 130(826) and No 141(888).
                                             97

                                                                     Annexes
                                                                     to the Act
                                                                     of

                                                                                      Annex 1
                                       LIST OF EXCISE GOODS
Item       CN code                           Product name (group of products)
  1           2                                                3
  1.   x 1507        Soya-bean oil and its fractions, whether or not refined, but not chemically
                     modified – if designated for fuel oils
 2.    ex 1508       Peanut oil and its fractions, whether or not refined, but not chemically
                     modified – if designated for fuel oils
 3.    ex 1509       Olive oil and its fractions, whether or not refined, but not chemically
                     modified – if designated for fuel oils
 4.    ex 1510 00    Remaining oils and their fractions, obtained solely from olives, even refined,
                     but not chemically modified, together with mixtures of these oils and their
                     fractions with oils or fractions, falling under item 1509 - if designated for
                     fuel oils
 5.    ex 1511       Solid palm oil fractions, whether or not refined, but not chemically modified
                     – if designated for fuel oils
 6.    ex 1512       Sunflower-seed, safflower or cotton-seed oil and fractions thereof, whether
                     or not refined, but not chemically modified - if designated for fuel oils
 7.    ex 1513       Refined coconut (copra), palm kernel or babassu oil and their fractions,
                     whether or not refined, but not chemically modified - if designated for fuel
                     oils
 8.    ex 1514       Refined rape; colza or mustard oil and their fractions, whether or not refined,
                     but not chemically modified – if designated for fuel oils
 9.    ex 1515       Remaining liquid fats and vegetable oils (including jojoba oil) and their
                     fractions, whether or not refined, but not chemically modified – if designated
                     for fuel oils
 10.   ex 1516       Animal and vegetable fats and oils and their fractions, partly or wholly
                     hydrogenated, inter-esterified, re-esterified or elaidinized, whether or not
                     refined, but not further prepared - if designated for fuel oils
 11.   ex 1517       Margarine; edible mixtures or products of animal or vegetable fats or oils, or
                     of the fractions of various fats or oils, from section 15 in the Combined
                     Nomenclature, other than edible fats or oils or their fractions, falling within
                     heading 1516 - if designated for fuel oils
 12.   ex 1518 00    Animal or vegetable fats and oils and their fractions, boiled, oxidized,
                     dehydrated, sulphurised, blown, polymerized by heat in vacuum or in inert
                     gas or otherwise chemically modified, excluding those of heading 1516;
                     inedible mixtures or preparations of animal or vegetable fats or oils or of
                     fractions of different fats or oils from section 15 in the Combined
                     Nomenclature, not elsewhere specified or included
 13.   2203 00       Beer obtained from malt
 14.   2204          Wine of fresh grapes, including fortified wines; grape must other than that of
                     heading 2009
 15.   2205          Vermouth and other wine of fresh grapes flavoured with plants or aromatic
                     substances
                                              98

16.   2206 00         Other fermented beverages (for example, cider, perry, mead); mixtures of
                      fermented beverages and mixtures of fermented beverages and non alcoholic
                      beverages, not elsewhere specified or included

17.   2207            Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol. or
                      higher; ethyl alcohol and other spirits, denatured, of any strength
18.   2208            Undenatured ethyl alcohol of an alcoholic strength by volume of less than
                      80% vol; spirits, liqueurs and other spirituous beverages
19.   ex 2701         Coal; briquettes, small briquettes and similar solid fuel made of coal - if
                      designated for fuel oils
20.   ex 2702         Brown coal (lignite), whether or not agglomerated, with the exclusion of jet -
                      if designated for fuel oils
21.   ex 2704 00      Coke and semi-coke of coal, of lignite or of peat, whether or not
                      agglomerated; retort carbon |- if designated for heating
22.   2705 00 00      Coal gas, water gas, generator gas and similar gases, other than (wet) natural
                      gas and remaining gas hydrocarbons
23.   2706 00 00      Tar distilled from coal, from brown coal (lignite) of from peat and other
                      mineral tars, whether or not dehydrated or partly distilled, together with
                      recovered tars
24.   2707            Oils and other products of pyrolitic coal tar distillation; similar products, in
                      which aromatic content mass is larger than non-aromatic content mass
25.   2708            Pitch and pitch coke, obtained from coal tar or other mineral tars
26.   2709 00         Petroleum oils and oils obtained from bituminous minerals, crude

27.   2710            Petroleum oils and oils obtained from bituminous minerals, other than crude;
                      preparations not elsewhere specified or included, containing by weight 70%
                      or more of petroleum oils or of oils obtained from bituminous minerals,
                      these oils being the basic constituents of the preparations; waste oils
28.   2711            (Wet) natural gas and remaining gas hydrocarbons
29.   2712            Petroleum jelly; paraffin wax, microcrystalline petroleum wax, slack wax,
                      ozokerite, lignite wax, peat wax, other mineral waxes, and similar products
                      obtained by synthesis or by other processes, whether or not coloured
30.   2713            Petroleum coke, petroleum bitumen and other residues of petroleum oils or
                      of oils obtained from bituminous minerals
31.   2714            Bitumen and asphalt, natural; bituminous or oil shale and tar sand; asphalts
                      and asphalt rock
32.   2715 00 00      Bituminous mixtures based on natural asphalt, natural bitumen, petroleum
                      bitumen, mineral tar or mineral tar pitch (for example bituminous sealing
                      compound, flux)
33.   2716 00 00      Electricity
34.   2901            Aliphatic hydrocarbons
35.   2902            Cyclical hydrocarbons
36.   ex 2905 11 00   Methanol (methyl alcohol) – not of synthetic origin, if designated for fuel
                      oils
37.   3403            Lubricating preparations (including cutting-oil preparations, bolt or nut
                      release preparations, anti-rust or anti-corrosion preparations and mould-
                      release preparations, based on lubricants) and preparations of a kind used for
                      the oil or grease treatment of textile materials, leather, fur skins or other
                      materials, but excluding preparations containing, as basic constituents, 70%
                                                 99

                         or more by weight of petroleum oils or of oils obtained from bituminous
                         minerals
38.   3811               Anti-knock agents, oxidizing inhibitors, resin inhibitors, additives increasing
                         viscosity, anti-corrosion preparations and other preparations added to
                         mineral oils (including petrol) or other liquids, used for the same purposes as
                         mineral oils
39.   3817 00            Mixed alkylbenzenes and mixed alkylnaphthalenes, other than those of
                         heading 2707 or 2902
40.   ex 3824 90 91      Fatty acid mono alkyl esters, with volume of 96.5% or more of esters
                         (FAMAE) - if designated for fuel oils
41.   ex 3824 90 97      Other chemical products and chemical industry or related industry
                         preparations (including those comprising mixtures of natural products), not
                         elsewhere specified or included - if designated for fuel oils
42.   irrespective of    Cigarettes, smoking tobaccos, cigars, cigarillos
      the CN code
43.   irrespective of    Ethyl alcohol contained in goods which are not excise goods with true
      the CN code of     alcoholic strength by volume exceeding 1.2%
      the product
      containing ethyl
      alcohol
44.   irrespective of    Other products designated for use, offered for sale or used as motor oil or
      the CN code        heating oil or as additions or admixtures for motor oils or heating oils.

  Explanations: ex – refers exclusively to the given product from the given heading or code.
                                                  100

                                                                                              Annex 2
      LIST OF EXCISE GOODS TO WHICH THE SUSPENSION ARRANGEMENTS FOR EXCISE
       DUTIES PROCEDURE IS APPLIED AND WHOSE PRODUCTION TAKES PLACE AT THE
                 TAX WAREHOUSE, REFERRED TO IN COUNCIL DIRECTIVE 92/12/ EEC
Item         CN code                            Product name (product groups)
  1             2                                                3
  1.     ex 1507       Soya-bean oil and its fractions, whether or not refined, but not chemically
                       modified – if designated for fuel oils
  2.     ex 1508       Peanut oil and its fractions, whether or not refined, but not chemically
                       modified – if designated for fuel oils
  3.     ex 1509       Olive oil and its fractions, whether or not refined, but not chemically
                       modified – if designated for fuel oils
  4.     ex 1510 00    Remaining oils and their fractions, obtained solely from olives, even refined,
                       excluding chemically modified, together with mixtures of these oils and their
                       fractions with oils or fractions, falling under item 1509 - if designated for
                       fuel oils
  5.     ex 1511       Solid palm oil fractions, whether or not refined, but not chemically modified
                       – if designated for fuel oils
  6.     ex 1512       Sunflower-seed, safflower or cotton-seed oil and fractions thereof, whether
                       or not refined, but not chemically modified - if designated for fuel oils
  7.     ex 1513       Refined coconut (copra), palm kernel or babassu oil and their fractions,
                       whether or not refined, but not chemically modified - if designated for fuel
                       oils
  8.     ex 1514       Refined rape; colza or mustard oil and their fractions, whether or not refined,
                       but not chemically modified – if designated for fuel oils
  9.     ex 1515       Remaining liquid fats and vegetable oils (including jojoba oil) and their
                       fractions, whether or not refined, but not chemically modified – if designated
                       for fuel oils
  10.    ex 1516       Animal and vegetable fats and oils and their fractions, partly or wholly
                       hydrogenated, inter-esterified, re-esterified or elaidinized, whether or not
                       refined, but not further prepared - if designated for fuel oils
  11.    ex 1517       Margarine; edible mixtures or products of animal or vegetable fats or oils, or
                       of the fractions of various fats or oils, from section 15 in the Combined
                       Nomenclature, other than edible fats or oils or their fractions, falling within
                       heading 1516 - if designated for fuel oils
  12.    ex 1518 00    Animal or vegetable fats and oils and their fractions, boiled, oxidized,
                       dehydrated, sulphurised, blown, polymerized by heat in vacuum or in inert
                       gas or otherwise chemically modified, excluding those of heading 1516;
                       inedible mixtures or preparations of animal or vegetable fats or oils or of
                       fractions of different fats or oils from section 15 in the Combined
                       Nomenclature, not elsewhere specified or included
  13.    2203 00       Beer obtained from malt
  14.    2204          Wine of fresh grapes, including fortified wines; grape must other than that of
                       heading 2009
  15.    2205          Vermouth and other wine of fresh grapes flavoured with plants or aromatic
                       substances
                                                 101




16.   2206 00           Other fermented beverages (for example, cider, perry, mead); mixtures of
                        fermented beverages and mixtures of fermented beverages and non alcoholic
                        beverages, not elsewhere specified or included
17.   2207              Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol. or
                        higher; ethyl alcohol and other spirits, denatured, of any strength
18.   2208              Undenatured ethyl alcohol of an alcoholic strength by volume of less than
                        80% vol; spirits, liqueurs and other spirituous beverages
19.   ex 2707           Oils and other products of pyrolitic coal tar distillation; similar products, in
                        which aromatic content mass is larger than non-aromatic content mass,
                        exclusively:
      2707 10           1) Benzole (benzene)
      2707 20           2) Toluole (toluene)
      2707 30           3) Xylol (xylene)
      2707 50           4) Remaining aromatic hydrocarbon mixtures, of which 65% or more in
                           terms of volume (losses included) is distilled in 250OC in keeping with the
                           ASTM D 86 method

20.   from ex 2710      Petroleum oils and oils obtained from bituminous minerals, other than crude;
      11                preparations not elsewhere specified or included, containing by weight 70%
      to ex 2710 19     or more of petroleum oils or of oils obtained from bituminous minerals,
      69                these oils being the basic constituents of the preparations;
21.   ex 2711           (Wet) natural gas and remaining gas hydrocarbons, excluding those falling
                        under headings 2711 11 00, 2711 21 00 and 2711 29 00
22.   2901 10 00        Saturated aliphatic hydrocarbons
23.   ex 2902           Cyclical hydrocarbons, exclusively:
      2902 20 00        1) Benzene
      2902 30 00
      2902 41 00        3) o-Xylene
      2902 42 00        4) m-Xylene
      2902 43 00        5) p-Xylene
      2902 44 00        6) Mixtures of xylene isomers
24.   ex 2905 11 00     Methanol (methyl alcohol) – not of synthetic origin, if designated for fuel
                        oils
25.   ex 3824 90 91     Fatty acid mono alkyl esters, with volume of 96.5% or more of esters
                        (FAMAE) - if designated for fuel oils
26.   ex 3824 90 97     Other chemical products and chemical industry or related industry
                        preparations (including those comprising mixtures of natural products), not
                        elsewhere specified or included - if designated for fuel oils
27.   irrespective of   Cigarettes, smoking tobaccos, cigars, cigarillos
      the CN code

  Explanations: ex – refers exclusively to the given product from the given heading or code.
                                              102

                                                                                         Annex 3
     LIST OF EXCISE GOODS SUBJECT TO OBLIGATORY MARKING WITH EXCISE
                                  MARKS
Item       CN code                 Product name (group of products)

  1         2                                                 3
1.    2203 00           Beer obtained from malt
2.    2204              Wine of fresh grapes, including fortified wines; grape must other than that
                        of heading 2009
3.    2205              Vermouth and other wine of fresh grapes flavoured with plants or
                        aromatic substances
4.    2206 00           Other fermented beverages (for example, cider, perry, mead); mixtures of
                        fermented beverages and mixtures of fermented beverages and non
                        alcoholic beverages, not elsewhere specified or included
5.    2207              Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol.
                        or higher; ethyl alcohol and other spirits, denatured, of any strength
6.    2208              Undenatured ethyl alcohol of an alcoholic strength by volume of less than
                        80% vol; spirits, liqueurs and other spirituous beverages
7.    2710              Petroleum oils and oils obtained from bituminous minerals, other than
                        crude; preparations not elsewhere specified or included, containing by
                        weight 70% or more of petroleum oils or of oils obtained from
                        bituminous minerals, these oils being the basic constituents of the
                        preparations; waste oils
8.    2711              (Wet) natural gas and remaining gas hydrocarbons
9.    3403              Lubricating preparations (including cutting-oil preparations, bolt or nut
                        release preparations, anti-rust or anti-corrosion preparations and mould-
                        release preparations, based on lubricants) and preparations of a kind used
                        for the oil or grease treatment of textile materials, leather, furskins or
                        other materials, but excluding preparations containing, as basic
                        constituents, 70% or more by weight of petroleum oils or of oils obtained
                        from bituminous minerals
10.   irrespective of   Cigarettes, smoking tobaccos, cigars, cigarillos
           the CN
           code
                                                 103

                                     Impact of the Regulation


   1. Entities impacted by the legislative measure
                                                                             Concerning changes
                                                                   in excise duty paid on
                                                                   electricity, the shifting of the
                                                                   moment that the fiscal
                                                                   responsibility arises form the
                                                                   moment it is issued by the
                                                                   producer to the day that the
                                                                   electricity is paid for by the
                                                                   final purchaser, will increase
                                                                   the number of entities paying
                                                                   excise duty on electricity. In
                                                                   keeping with currently
                                                                   binding regulations the entities
                                                                   which pay excise duty on
                                                                   electricity are mainly its
                                                                   producers, whilst the planned
                                                                   change will mean that duty
                                                                   payers will primarily be
                                                                   entities holding the
                                                                   appropriate concessions,
                                                                   selling electricity to final
                                                                   purchasers and using
                                                                   electricity for the needs of
                                                                   their business activities.
The draft Act presumes that the payer of duty on excise goods which are not owned by the entity
managing the tax warehouse and moved from that tax warehouse beyond the suspension
arrangements for excise duties procedure will be the owner of the goods. At the same time there
was a definition of the principles and conditions of issuing permits to exit, as a duty payer, excise
goods from someone else‟s tax warehouse beyond the suspension arrangements for excise duties
procedure, referred to as the “exit permit”.
In comparison to the currently binding Excise Duty Act this draft anticipates solutions which are
undoubtedly beneficial to entities engaged in business activities relating to excise duty
exemptions.
Excise duty exemptions are currently regulated under Articles 24-26 of the Act of
23 January 2004 in very general terms, whilst the vast majority of provisions on excise duty
exemptions were included in the Regulation of the Minister of Finance of 26 April 2004 on
excise duty exemptions.
This draft Act, in keeping with the approved principle, contains all obligatory exemptions
provided for by Community law. The draft defines the scope of the exemptions and the basic
conditions for applying them, the purpose of which is to increase in a significant manner the legal
security of entities engaging in business activities relating to excise goods relieved of excise duty.
                                                104


   Furthermore, it must be stated that in Article 27 which is to apply to excise goods relieved of
   excise duty, both on the basis of the Act and the Implementing Regulation, indication was
   made of the entities eligible to exemption and the conditions of applying these exemptions. In
   connection with this solution there will be far-reaching unification of the principles of
   applying excise duty exemptions for many types of excise goods, which will lead to far
   greater transparency of the system of excise duty relief.
The draft Act defines the conditions of managing tax warehouses by entities engaged in activities
involving the storing of goods produced by another entity concerning minimum levels of trade
and the minimum warehouse capacity. Currently this matter is regulated by the Regulation to the
Excise Duty Act of 23 January 2004.
A very important matter for entities engaging in business activities relating to energy products is
the regulation, as provided for in the draft, in keeping with which given energy products, used for
purposes other than propulsion or heating, but not being motor oils or heating oils in the strict
sense of the word, will contain a zero duty rate. This solution will considerably improve the
situation of many entities belonging to the generally understood chemical industry. Currently,
many excise goods used in the chemical industry have a zero duty rate and at the same time are
relieved of excise duty in the event of these goods being used for purposes other than propulsion
or heating.
The introduction in Article 45(1)(2) of exclusion from the obligation to produce at the tax
warehouse will help in the development of small wine factories, which produce wine from grapes
which they themselves cultivate.
In Article 51(1) of the draft a more beneficial regulation has been introduced for entities
managing tax warehouses, which involves the possibility of informing the customs office
manager about the intention to exit excise goods from the tax warehouse on the day before the
day of dispatch, and not, as hitherto, 3 days prior to the dispatch.
The provision under Article 95 of the draft, which introduces an increase in excise duty on
tobacco products, impacts producers and entrepreneurs participating in the circulation of tobacco
products. Furthermore, in consideration of the price-generating character of excise duty, one
should expect higher expenditure on the part of consumers of tobacco products. The impact of the
proposed changes on maintenance costs amongst the population, levels of employment and
profitability in lines of business affected by higher excise duty cannot be estimated because it is
not possible to view the economic and financial standing of the relevant entities, as this is a topic
protected by commercial secrecy.


   2. Findings of consultations


In order to seek social consultation the text of the draft Act was submitted for consultation to
national trade unions and national unions of employers. Producers of excise goods, joint
management organisations, associations of manufacturers and traders and other organisations and
entities associating entrepreneurs circulating excise goods were informed of the publication of the
draft Act in the Public Information Bulletin of the Ministry of Finance (Biuletyn Informacji
Publicznej Ministerstwa Finansów). During consultations the following submitted comments to
                                             105

the draft Act: Business Centre Club, Altadis Polska S.A., NSZZ “Solidarność” at British-
American Tobacco Polska, British-American Tobacco Polska S.A., Forum Związków
Zawodowych (Forum of Trade Unions), Federacja Związków Zawodowych Pracowników
Przemysłu Tytoniowego (Federation of Trade Unions of Tobacco Industry Employees) in Poland,
Gallaher Polska Sp. z o.o., Imperial Tobacco Polska S.A., Koalicja Na Rzecz Autogazu
(Coalition for Autogas), Krajowa Izba Gospodarcza (National Chamber of Trade), Krajowa Rada
Winiarstwa i Miodosytnictwa (National Chamber of Winemaking and Honey), Okręgowy
Związek Plantatorów Tytoniu (Area Union of Tobacco Growers) in Grudziądz, Operator
Logistyczny Paliw Płynnych (Liquid Fuels Logistics Operator), Orion Jerzy Czernek, Philip
Morris Polska S.A., PKPP Lewiatan, Polska Izba Przemysłu Chemicznego (Polish Chemical
Industry Chamber), Polska Organizacja Gazu Płynnego (Polish Liquid Gas Organisation), Polska
Organizacja Przemysłu i Handlu Naftowego (Polish Organisation of Petroleum Industry and
Trade), Polskie Towarzystwo Przesyłu i Rozdziału Energii Elektrycznej (Polish Association of
Transmission and Distribution of Electricity), Polski Związek Plantatorów Tytoniu (Polish Union
of Tobacco Growers), Scandinavian Tobacco S.A. Jawornik-Myślenice, Towarzystwo Obrotu
Energią (Energy Trade Association), Zakłady Tytoniowe w Lublinie S.A., Polska Organizacja
Przemysłu i Handlu Naftowego (Polish Organisation of Oil Industry and Trade), Polska Izba
Paliw Płynnych (Polish Chamber of Liquid Fuels), Grupa LOTOS S.A., Orlen Oil Sp. z o.o.,
Polskie Górnictwo Naftowe i Gazownictwo S.A., Stowarzyszenie Naukowo-Techniczne
Inżynierów i Techników Przemysłu Spożywczego – Polski Przemysł Spirytusowy (Research and
Technical Association of Engineers and Food Industry Technicians – Polish Spirits Industry),
Okręgowy Związek Plantatorów Tytoniu (Area Union of Tobacco Growers) in Leżajsk, Komisja
Krajowa NSZZ “Solidarność” (National Solidarity Union Committee), Związek Pracodawców
Przemysłu Piwowarskiego “Browary Polskie” (Union of Beer Industry Employers), Polskie
Towarzystwo Elektrociepłowni Zawodowych (Polish Association of Professional Heat and
Power Plants), Izba Przemysłowo-Handlowa w Krakowie (Chamber of Trade and Industry in
Cracow), Fundacja Amerykańskiej Izby Handlowej w Polsce (American Chamber of Trade
Foundation in Poland), Ship-Service S.A Okręgowy Związek Plantatorów Tytoniu (Area Union
of Tobacco Growers in Kielce), Okręgowy Związek Plantatorów Tytoniu (Area Union of
Tobacco Growers in Cracow, Towarzystwo Przyjaciół Dzieci (Friends of Children Association),
Polskie Stowarzyszenie Przemysłu Tytoniowego, “SAMMAR” Sp. z o.o., Zrzeszenie
Producentów Tytoniu “Tabako” (Association of Tobacco Makers “Tabako” in Suchowola),
Polskie Stowarzyszenie Producentów Kosmetyków i Środków Czystości (Polish Association of
Producers of Cosmetics and Cleaning Agents), Komitet na Rzecz Dzieci w Polsce KONRAD
(Committee for Children in Poland), Program Odpowiedzialnej Sprzedaży STOP18 (Responsible
Sales Programme STOP 18), Stowarzyszenie “U Siemachy” (“U Siemachy” Association). The
following expressed their full support for the draft: Konfederacja Pracodawców Polskich
(Federation of Polish Employers), Międzyzakładowy Związek Zawodowy Pracowników British-
American Tobacco Polska (Inter-plant British-American Tobacco Polska Trade Union of
Employees) in Augustów and the Okręgowy Związek Plantatorów Tytoniu (Area Union of
Tobacco Growers) in Augustów.
As part of the consultation process a consensus conference was held at the Ministry of
Finance with representatives of the fuel and chemical industry and the tobacco industry –
dedicated to comments submitted to the draft Act.
During social consultation representatives of various sectors submitted a number of comments.
                                               106

Concerning energy products:
One of the more frequent demands was the need to specify the obligations of the using entity
concerning entry of the lack of need to keep records by entities without registered office or
business activity in Poland (PKPP Lewiatan, POPiHN, Ship-Service S.A.,). The provisions
concerning this mater were made more precise.
However, there was no acceptance of the proposal to offer exemption from excise duty in the
case of losses – through misfortune or force majeure – to excise goods with paid excise duty and
losses resulting from crimes against property (e.g. ORLEN Sp. z o.o., PKPP Lewiatan, Krajowa
Rada Winiarstwa i Miodosytnictwa), as in these cases the entrepreneur‟s losses are covered by
the insurance company.
Concerning regulation relating to the circulation of goods relieved of excise duty because of their
purpose there was approval of the demand put forward by PKPP Lewiatan and Ship-Service S.A.
calling for resignation from the obligation to attach to each carriage of excise goods a document
confirming that these goods had been covered by excise security.
Ship-Service S.A. demanded to retain the possibility of applying for exemption from the
    obligation to submit insurance security for entities delivering excise goods relieved because
    of their purpose, much the same as now. This demand was not approved because e.g. in
    similar cases excise security is submitted in connection with the carriage of excise goods and,
    in keeping with the principle defined under Article 61 of the draft, any exemption from the
    excise insurance obligation could not be applied.
There were also calls to reduce the level of excise security submitted by the intermediary entity
   (by 50% or 70%). This demand, put forward by POPHiN and Ship-Service S.A., partly takes
   into account introducing, into Article 63(2) of the draft, the possibility of reduction by the
   Minister of Finance, under justified circumstances, of a lower level of security than the one
   defined in the Act and defining when this level is applicable. Full acceptance of this “entity”
   demand would lead to unequal treatment of entities, as the remaining “excise” entities submit
   the full amount of security.
The call to alleviate the conditions of setting up tax warehouses by reducing the surface area of
   tax warehouses to 1000 m³ (excessive warehouse capacity for energy products) was
   recognised as a groundless. Reduction in storage surface area of tax warehouses may lead to
   higher State administration operating costs in offering appropriate tax supervision and is
   connected with decisions relating to specific tax supervision.
One of the proposals put forward was a demand to offer exemption from the obligation to submit
excise security when transporting by pipeline petroleum product excise goods between tax
warehouses belonging to different entities and carrying these goods by sea. It needs to be noted
that in implementing in the draft Act Community provisions under Article 61(6) a limit was
placed on the possibility of applying exemptions from the obligation to submit excise security
when transporting excise goods under the suspension arrangements for excise duties procedure.
At the same time, in Article 61(7) use was made of the opportunity offered by Community
provisions, in order to introduce an exception to the above principle, and approval was given to
apply exemption when transporting by pipeline petroleum product excise goods between tax
warehouses managed by the same entity in Poland. It was recognised that this form of transport
(transmission) does not carry the risk of uncollectible tax in arrears occurring, because the
sending and receiving tax warehouses belong to the same entity, positively checked in terms of
financial credibility when granting exemption from the obligation to submit excise security. Any
                                                 107

extension of the exemption on the transport of fuel by pipeline to recipients – the tax warehouses
of other entities and transport by sea – is not justified, as this kind of carriage, as opposed to
transport referred to in Article 61(7), in its present wording, is burdened with the risk of
uncollectible tax in arrears occurring e.g. as there would be many businesses involved in
circulation. In order to help meet the demands put forward by entrepreneurs in the fuel industry it
was decided to exclude from the definition on the production of energy products the adding to
motor oils or heating fuel of mixed quantities constituting not more than 0.2% of the volume of
the energy product containing these additives. This exemption does not apply to the marking and
dyeing of energy products for fiscal purposes, which must take place in the tax warehouse.
However, approval was given to the proposal (ORLEN Sp. z o.o.) to exclude from the group of
energy products the dye and mark used for marking energy goods designated for heating or
navigation.
Many entities, including Koalicja Na Rzecz Autogazu, put forward a proposal to introduce an
excise duty rate of zero or to relieve natural gas (CNG), designated for the propulsion of
passenger cars, of excise duty. In the opinion of those putting forward the proposal the imposition
of excise duty on this gas will halt the development of this newly-developing market, as it will
not be competitive with other fuels. Assuming excise duty on all motor oils it was proposed to
impose this duty on (wet) natural gas and the remaining gas hydrocarbons, falling under CN 2711
and aliphatic gas hydrocarbons falling under CN 2901, in gaseous form, designated for the
propulsion of combustion engines, including compressed natural gas (CNG). There is
competition on the fuel market for the propulsion of vehicles as the consumer may choose from
petrol, LPG, diesel and CNG. However, so as not to hamper business initiatives connected with
the ever increasing use of CNG as a cheaper and ecological alternative to petroleum derived fuels
the draft provides for the use of the zero excise duty rate till 31 October 2013. After this date it is
proposed to impose duty on CNG at a level of PLN 100.00/1,000 kg. The Polish CNG market is
only just developing, for which reason a current excise duty rate of zero will favour dynamic
growth in the use of this form of ecological fuel. A zero excise duty rate on CNG will mean that,
much the same as in other European Union countries, there will be more and more vehicles
propelled with this fuel, which will lead to lower pollution levels, in particular less carbon
monoxide.
Grupa Lotos S.A submitted a comment on the manner of applying relief on bio-fuels when
   storing them in external bases with other fuels belonging to other owners and containing
   various levels of bio-components. The Act should guarantee the possibility of defining the
   contents of bio-components when the fuel is released from the production tax warehouse, and
   before it is transported to the storage warehouse. This proposal was not approved. In the
   described situation fuels produced at the refinery with bio-component content are transported
   to the tax storage warehouse under the suspension arrangements for excise duties procedure.
   End of procedure on suspension arrangements for excise duties for these fuels takes place
   only on the day of exit from the tax warehouse beyond this procedure. It is then i.e. when the
   procedure on suspension arrangements for excise duties ends, that the quantity of bio-
   components contained in the given fuel should be defined.
There was no acceptance of the call to introduce a duty payer authority, referred to in Article 8 of
the Tax Regulation Act, which would have the obligation to calculate and collect excise duty
amounts from the duty payer which it would pay at the corresponding time to the tax
administration (Polska Izba Przemysłu Chemicznego). In the draft Act it was established who the
duty payer was on excise goods not being the property of the entity managing the tax warehouse
                                                108

and exited from the tax warehouse beyond the suspension arrangements for excise duties
procedure. As it was established that the duty payer in this situation is the owner of the goods, the
draft defined the conditions and principles of issuing permits to exit, as duty payer, excise goods
from somebody else‟s tax warehouse beyond the suspension arrangements for excise duties
procedure, referred to as the “exit permit”.
There was no acceptance of the comment made by Polska Organizacja Przemysłu i Handlu
Naftowego and Grupa Lotos S.A. concerning exclusion to mark with excise marks goods falling
within CN 2710 and CN 2711. Pursuant to Article 116(1) excise marks may be in another form
than paper excise bands. Irrespective of the currently available technical possibilities, rates or
exemptions on excise duty concerning certain goods belonging to these groups, in the future it
might be necessary to mark e.g. gas in bottles. In the current legal environment goods falling
within CN 2710 and CN 2711 are exempted from the obligation of having excise bands, on the
basis of the Regulation of the Minister of Finance concerning the marking of excise goods with
excise marks. An identical construction was assumed in the draft Regulation.

Concerning alcoholic beverages:
Concerning exemption of denatured ethyl alcohol the request (Polskie Stowarzyszenie
Producentów Kosmetyków i Środków Czystości, PKPP Lewiatan) was accepted concerning
regulation of matters relating to intra-Community acquisition and import of goods not for human
consumption, containing denatured alcohol and ethyl alcohol denatured in keeping with
Commission Regulation (EC) No 3199/93.
The proposal (Krajowa Rada Winiarstwa i Miodosytnictwa) to supplement the definition of “tax
warehouse” in Article 2(10) with “bottling, presentation” was not accepted. The concept of
bottling does not concern all goods and fits within the definition of production of chosen excise
goods. The concept of presentation concerns goods which have already been produced and there
is no justification to include it in the definition of the warehouse.
The proposal (Krajowa Rada Winiarstwa i Miodosytnictwa) of production outside the tax
warehouse of fermented beverages from own cultivated raw materials, was rejected as not
complying with Community provisions. This exclusion, being the implementation of
Article 29(1) of Council Directive 92/12/EEC, concerns only the production of grape wines in
amounts of less than 1000 hl during the tax year. In Article 45(1)(3), however, natural persons
were permitted to produce home-made fermented beverages (including beer and wine) for their
own use and not for sale.
There was no acceptance of the proposal (PKPP Lewiatan) to resign from the levels of trade or
storage capacity for tax storage warehouses, as this would lead to an excess number of tax
warehouses, beyond the inspection capacity of the tax authorities.


Concerning electricity:
Most of the comments made by entities during the social consultation process concerned
exemption. Entities indicated that it was necessary to include exemptions on the consumption of
electricity at heat and power stations and to clarify exemptions on electricity originating from
renewable sources of energy. Both requests were taken into account.
                                                109

However, the motion on exemption on energy products used during the production of electricity
at heat and power stations was not taken into account because of the legal structure adopted by
the legislator. It was established that obligatory exemptions, anticipated by Council Directive
2003/96/EC will be included in the Act, whilst optional ones will appear in the corresponding
Regulation.
Part of the submitted comments concerned the supplementing of the explanation of the
consequences for final purchasers stemming from the shifting of the moment that the fiscal
responsibility on energy arose. This comment was accepted in that it was stated that there were
no economic bases for electricity prices to go up for purchasers.
During consultation there were also calls to remove regulations on the arising of fiscal
responsibility on electricity, in consideration of the fact that the submitting of returns relates to
payment deadlines and not the moment that electricity is issued. In connection with the fact that,
in keeping with Article 21(5) of Council Directive 2003/96/EC, fiscal responsibility arises at the
time of supply by the distributor or redistributor to the end user, it is not possible to link the
moment that fiscal responsibility arises and the payment date on electricity.
During the consensus conference with the energy sector there was also discussion on the keeping
of electricity records. The promoter explained that specific legal solutions concerning records
will be regulated by the Regulation issued on the basis of Article 87 of the referred to draft.
Entities belonging to the energy sector also called on the need to introduce a definition of the
electricity production process. However, the definition put forward by the energy sector did not
fully embrace the entirety of processes to be taxed in keeping with the draft Act and as a result it
was recognised that it is not possible to create a description of the production process which
could include all possible situations.
It turned out that an important point of view of the energy sector concerned the determining of
transitional rules in keeping with change to the taxation system and the shifting of fiscal
responsibility from producers to distributors. This comment was taken into account and the
appropriate entries were made in Article 159 of the referred to draft.


Concerning tobacco products:
Most comments concerned excise duty structure and rates on cigarettes and these were put
forward by tobacco companies. These companies failed to draw up a common approach on the
proposed statutory regulations, as each of them has a different approach as to the manner of
taxing tobacco products, which depends on the specific situation of the company in the country
and its market standing. For this reason the companies were divided. Some of them (British
American Tobacco and Philip Morris) were in favour of, whilst others ( e.g.: Imperial Tobacco,
Scandinavian Tobacco, Altadis Gallaher and Zakłady Tytoniowe w Lublinie) were strongly
against the proposal of an excise duty structure on cigarettes involving increase in the quota rate
and determining a permanent percentage rate of 25%, calculated on the retail price. Imperial
Tobacco, Altadis and Gallaher put forward a proposal to introduce an excise duty structure on
cigarettes involving increase in the quota rate and determining a permanent percentage rate of
35%, calculated on the retail price. On the other hand, Scandinavian Tobacco and Zakłady
Tytoniowe in Lublin were in favour of maintaining the currently binding excise duty structure on
cigarettes based on proportional growth of the quota and percentage rates.
                                                110

As there was no agreement the financial department proposed a compromise and put forward a
proposal of excise duty on cigarettes based on increase in the quota rate and a permanent
percentage rate of 31.41%. The proposal to define the constituents of the excise rate, assuming
that the full impact of increase in excise duty is shifted onto the price, will lead to higher retail
prices on cigarettes than in the case of the permanent rate of 25%. Furthermore, the proposed
solution will also lead to a greater price gap between expensive and cheap cigarettes than in the
case of a structure containing a rate of 25%. For this reason tobacco companies which produce
exclusively cheap or primarily cheap cigarettes, and which mainly oppose the 25% rate, spoke in
favour of a far higher percentage rate on cigarette excise duty.

   Some tobacco companies were also against the statutory proposal to impose excise duty on
   smoking tobacco involving an increase in the quota rate and a permanent percentage rate of
   25% calculated on the retail price. However, the majority of companies were in favour of
   increasing duty on smoking tobacco so that this duty would constitute 2/3 of the excise duty
   on cigarettes.
   The following expressed support for the proposed statutory regulation relating to the structure
   of excise duty on smoking tobacco: British American Tobacco and Philip Morris, which also
   put forward a proposal to increase the planned statutory quota rates on smoking tobacco, and
   even to impose the same level of excise duty on smoking tobacco and cigarettes.

   As the tobacco industry failed to have a uniform approach on the structure and rates of excise
   duty on smoking tobacco, the financial department proposed the same structure of duty on
   smoking tobacco as on cigarettes i.e. a structure based on increase in the quota rate and a
   permanent percentage rate of 31.41%. Furthermore, the quota rate was established so that
   duty on smoking tobacco would constitute 2/3 of the excise duty on cigarettes.

   Altadis Scandinavian Tobacco and Zakłady Tytoniowe in Lublin put forward a proposal to
   lower the excise rate on cigars and cigarillos. Philip Morris and British American Tobacco
   expressed their support for the excise duty quota rate on cigars and cigarillos of PLN
   260.00/1000 items proposed under the draft Act. Taking into account proposals put forward
   during consultations concerning the lowering of the excise rate on these goods, and analysing
   the levels of excise duty in neighbouring countries, the financial department lowered the
   quota excise rate on cigars and cigarillos to PLN 235.00/1000 items.

   The following tobacco companies came forward with a concept to lower the proposed
   statutory excise duty quota rate on cigarettes or smoking tobacco not subject to obligatory
   marking with excise marks and not marked with maximum retail price: Altadis, Gallaher
   Scandinavian Tobacco Imperial Tobacco. No other companies made any comments on this
   matter which should be understood as acceptance of the proposed changes. The financial
   department, in order to help meet the demands put forward, lowered the quota rate on these
   cigarettes from the previously proposed PLN 400/1000 items to PLN 300/1000 items, but at
   the same time left unchanged the excise duty rate on smoking tobacco at PLN 200/kg, so as to
   retain the proportion in taxing these goods at a rate of 2/3.
   Concerning the minimum excise duty rate on cigarettes the financial department increased
   this rate from 90% to 100% of the total excise duty rate calculated against the most popular
                                               111


   price category which is the outcome of accepting the structure for taxing cigarettes at a higher
   rate of percentage, leading to greater price difference between expensive and cheap cigarettes,
   which may also lead to a reduction in the most popular price category.

   Concerning surplus stocks of cigarettes or smoking tobacco the majority of companies was in
   favour of returning this regulation. The financial department explains that this regulation was
   introduced into the previous draft Act in consideration of the anticipated two-stage
   considerable increase and change in the structure of rates, assuming that the regulation
   contained in the draft will be binding from January 2009. As the rates introduced by this draft
   Excise Duty Act will only be binding from 2009 and will lead to the attainment of an excise
   duty minimum required by the Directives, and in consideration of the fact that the draft Act is
   not a market regulator in character, but refers to taxation and finances, the provisions on
   taxing surplus stocks seem to be superfluous.


   3. Impact of the legislative measure on:



a) the public finances sector, including the State budget and the budgets of local
   government units


In consideration of changes to the excise duty rates for certain excise goods (Articles 85 and 95
of the Act) it is estimated that:
   - in the light of introducing excise duty rates on natural gas in gaseous form for heating
   purposes and coal and coke for heating purposes at a rate of PLN 1.18/GJ, i.e. the minimum
   rate under the Directive – there will be no impact on the State budget till 2011, as it is
   planned to exempt coal and coke from excise duty till 1 January 2012 and natural gas till 31
   October 2013 or up to the time that the share of natural gas in the consumption of energy in
   Poland attains 25%. However, as soon as the share of natural gas in the consumption of
   energy attains 20% it is anticipated that up to 31 October 2013 excise duty constituting 50%
   of the PLN 1.18/GJ rate will be adopted,
   - in the light of higher excise duty on tobacco products:
   in 2009 by about 18.10% on cigarettes, by about 51.60% on tobacco for the manual making
   of cigarettes and other smoking tobacco by about 172% assuming that in 2008 the retail price
   will not go up and by this virtue the excise rate calculated against the percentage of the retail
   price will also not go up,
   - the State budget revenue will increase by about PLN 2100 million (including: PLN 1890
   million on cigarettes and PLN 210 million on smoking tobacco) assuming a fall in the sale of
   cigarettes of about 4.5%, tobacco for the manual making of cigarettes by about 5% and other
   smoking tobacco by about 30%.
Furthermore, concerning financial impact on the State budget the following matters require
particular attention:
                                                112

1) The introduction of a regulation changing the moment that fiscal responsibility on electricity
rises may lead to losses in the State budget stemming from “transmission” losses of energy. It is
accepted (on the basis of data collected by the energy sector) that losses in the transmission of
electricity to the final purchaser amount to about 10%.
It is estimated, therefore, that over the year these losses amount to about PLN 270 million (with
the excise duty rate on electricity remaining unchanged). Currently, final purchasers of electricity
must cover the cost of excise duty on electricity delivered to them as well as the cost of
“transmission” losses. Following changes to regulations final purchasers will cover the cost of
excise duty on electricity actually delivered to them. It is not possible to estimate the impact of
changing the system in the light of any price increases, as there is no way of foreseeing the
behaviour of producers– the current duty payers.
2) Any increase in the price of energy connected with changing the moment that fiscal
responsibility arises from the moment of release by the producer to the moment of delivery by the
distributor or redistributor to the final purchaser would be connected with the wish to increase
profits on the part of electricity producers, who would not reduce the price of energy, despite
being exempted from the obligation to pay excise duty on the issued electricity (Article 6(5) of
the hitherto binding Excise Duty Act). On the other hand, a lack or incomplete reduction in
energy prices by producers would allow them to obtain additional investment resources. As a
result, it is estimated that the price of electricity could increase by 5% in comparison to the price
tariff determined by the URE, which means that the cost of maintaining households and the cost
of operating enterprises could change. Higher energy prices at the presumed level would lead to
inflation of 019%. This would mean higher production costs for energy intensive companies.
3) Possible measures intended to counter higher electricity prices in connection with changes to
the principles of taxation will be considered.
4) The new regulations will remove the abnormality of lowering the declared value of cars
imported from other EU countries. However, this will not be a protective barrier for the Polish
market, but merely a tool regulating the level of excise duty amounts transferred to the State
budget in connection with the intra-Community acquisition of cars. In consideration of the above
one may expect an influx of used cars from EU countries to Poland, however, because of the
multiplicity of influencing factors, it is impossible to estimate the impact of the proposed tool on
the quantity of imported cars.
5) Furthermore, entries have been made in the referred to draft, which will have a positive impact
on the effectiveness and punctuality of recovering tax dues, in particular interest in arrears, and
will help reduce levels of tax in arrears (Article 69).
6) The implementation of a data communication system for carrying excise goods in Poland does
not contain an estimate of the costs burdening the State budget, as this system has already been
implemented.
7) The implementation of a solution permitting the import of all excise goods with the application
of the duty suspension arrangement, will have an impact on the State budget by shifting in time
the payment of duty amounts arising from the import of excise goods to the moment that they are
exited from the tax warehouse beyond the suspension arrangements for excise duties procedure.
It is estimated that placing excise goods imported under the suspension arrangements for excise
duties procedure (on the assumption that these excise goods remain under the suspension
arrangements for excise duties procedure for an average of 1 month), will shift payments into the
                                              113

State budget in 2009, amounting to about PLN 110 million, for one month.
8) The implementation of a zero excise duty rate on biogas, hydrogen and bio-hydrogen will not
have a negative impact on the State budget. The application of these goods as a fuel for
combustion engines will not significantly reduce the demand for far cheaper traditional liquid
fuels.

The draft Act was agreed upon with the Government and Local Government Joint Committee.
The Government and Local Government Joint Committee recognised the draft Excise Duty Act
as approved without comment, but with the reservation that the implementation of the proposed
excise duty rates will have a financial impact in the future on local government units.
Summing up, additional payments into the State budget relating to the proposed solutions in 2009
may amount to PLN 1,720 million. However, impact on the budget in future years under the
binding Act will depend to a large degree on any changes being introduced to the level of excise
duty rates.

   b) employment market
The presented simplifications to the legal solutions under the draft Act ought to have a positive
impact on developing the employment market, e.g. by increasing the number of tax storage
warehouses, which will naturally increase the employment market.
It is potentially possible to increase the number of jobs at the customs warehouse or free zones
thanks to implementing the possibility of marking imported excise goods with excise marks in
Poland.
In 2009 the estimated fall in the sale of cigarettes by about 4.5%, of tobacco for the manual
making of cigarettes by about 5% and of other smoking tobacco by about 30% (connected with
an increase in excise duty rates on these goods) may have an insignificant negative impact on the
employment market (reduction in employment). However, as it is not possible to view the
economic and financial standing – treated as a commercial secret – of the relevant entities, this
impact cannot be estimated.


c) competitiveness of the economy and enterprise, including the functioning of undertakings


Unambiguous treatment of duty payer matters concerning exit from the tax warehouse beyond the
suspension arrangements for excise duties procedure of excise goods not being the property of
the entity managing the tax warehouse and the introduction of the “exit permit” may help in the
development of service (storage) tax warehouses, which is undoubtedly desirable from an
economic point of view.
Furthermore, one must indicate the expected regulation of the following:
   -   excise duty exemptions,
   -   the duty suspension arrangement,
   -   the conditions of managing tax warehouses.
                                                114

Changes of the above will considerably facilitate businesses to supply themselves with the
necessary raw materials required for operations. Expected support in applying the procedure on
suspension arrangements for excise duties ought to have a positive impact on retaining the
financial liquidity of businesses. Under the draft the expected streamlining of formalities and
strict disciplines connected with the use of excise goods ought to significantly reduce the cost of
operations incurred by businesses and permit them to function more flexibly on the market.
Simplification in the way that general and lump-sum security levels are determined will have a
similar effect, in particular paving the way towards lower levels of lump-sum security in cases of
amounts being disproportionately high, in comparison to the profitability of certain types of
business activity, thus reducing their competitiveness. The regulations which have been
introduced give the possibility of removing any irregularities in this respect.
Thanks to a range of provisions included in the draft which will help to improve the conditions of
engaging in business, entities will be able to plan their investments more rationally.


d) regional standing and development


The entry into force of the Act will have no impact on regional standing and development.


   4. Source of financing


Entry into force of the Act does not give rise to the need to expend financial resources.


Assessment of compliance of the draft Act with European Union law: compliance of the draft
Excise Duty Act with Community law is presented in the attached concordance tables.


The draft Act may be found in the Public Information Bulletin [Biuletyn Informacji Publicznej]:
www.mf.gov.pl.

				
DOCUMENT INFO