Trade Policies in Poland: A Report for Hudson Bay Company Expansion

This report examines the trade policies and business environment in Poland, specifically focusing on the potential expansion of the Hudson Bay Company. The analysis covers various aspects of trade regulations, including tariffs, import and export restrictions, quotas, and licensing requirements. It delves into Poland's import regulations, detailing the free circulation of goods within the EU, exceptions for sensitive items, and the role of the Polish Ministry of Economy in issuing import permits. The report also outlines export procedures, such as the Single Administrative Document (SAD), and discusses transfer pricing documentation thresholds and profit repatriation from Poland. Furthermore, it highlights the importance of double taxation treaties and the impact of regulatory uncertainty on business operations. The report provides a comprehensive overview of the Polish market, offering valuable insights for companies considering international expansion, particularly in the retail sector.

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TABLE OF CONTENTS
INTRODUCTION 2
Tariffs and regulations 2
Poland’s Import 2
Export to Poland 3
Transfer pricing documentation materiality thresholds 3
Profit Repatriation from Poland 3
REFERENCES 5
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INTRODUCTION
Hudson Bay Company is a diversified retailer that laid emphasis on driving high quality
store’s performance along with its Omni channel platforms and boosting the value of real estate
holdings. The present report considers different trade policies for Hudson Bay with context to
Poland such as regulation of prices of imports, restrictions on export, tariffs and quotas.
Tariffs and regulations
When consider tariffs, Poland directly adheres to General Agreement on trade and Tariffs
where tariffs are related to harmonize system. The custom regulations directly comply with the
wide directives of EU's European. Further, the majority of goods are subjected to the rate till
30% and tariffs with context to some luxury items are higher than 100%. However, there are
non-tariff barriers as well as import licensing is required for limited products range such as
military items, explosives, radioactive materials, highly inflammable materials, Arms and
munitions and goods on basis of temporary capital imports and products, quota under
international agreements essential for bilateral agreements (Trujillo-Baute, del Río & Mir-
Artigues, 2018). The licenses of import are issued through Minister of Economy and
development of import quotas are through specific products. The yearly tariff quotas are
developed for meat, grains, and depends on situation of supply and demand. The product range is
forbidden for numerous reasons related to the public order, protection of natural environment,
health of plant and animal, national security and human as well. The foreign exchange control is
administrated through the Monetary Policy Council within systematic consultation with the
Finance Minister.
Poland’s Import
There are numerous goods that are in free circulation among states of EU member and
could be easily moved with the absence of any custom control or charges. Here is also exception
of some sensitive items like tobacco, weaponry, agricultural products, surveillance and goods
dictated through restrictions which are quantitative. Thus, every state of EU member subscribed
for mutual trade policy for import from third countries (Requirements for doing business in
Poland, 2018). The Polish Ministry of economy issued imports permits, concessions and even
quota is regulated. Conversely, other ministries of Polish have presence of special jurisdictions
over specific products such as tobacco, permits on basis of air, seas and road transport or natural
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resource as well. Prior to issuing by Ministry it grants permission related to import on the
specific product and should be appropriately reviewed and suggested for import within Poland
through different inspectorates and technical associations depends on the product's nature.
Export to Poland
There is an official model for specific declarations in written form to the customs are the
(SAD) Single Administrative document. This document gives description related to goods and
movement throughout the world. It is necessary for trading outside the EU and of non-EU goods
as well. The SAD served through importer’s declaration of EU and includes both VAT and
customs duties (Poland Import Tariff, 2019). Apart from this, companies developed outside EU
are essential for having Economic Operator Registration and Identification number if there is a
requirement for lodging customer’s declaration or any other entry and might be exit summary
declaration.
Transfer pricing documentation materiality thresholds
The innovative transactional materiality thresholds is applicable for documentation of
transfer pricing would be introduced as PLN 10 million for specific transactions concerned to
tangible assets and financing and PLN 2 million for other transactions (Nafkha &
Woźniakowski, 2018). With practice, innovative thresholds would outcome in decreasing scope
of documentation need and especially for small and medium sized taxpayers. The materiality
threshold for the master file would be set at PLN 200 million of their revenue which is
consolidated (Importing and exporting rules and regulations in Poland, 2019). The one, which is
attaining consolidated revenue exceeding EUR 750 million and attaining other particular
requirements, should submit master file to National Revenue administration’s head. As per new
regulations, master file might be prepared in English. The translation within Polish would be
only essential at the explicit request of different tax authorities.
Profit Repatriation from Poland
On the basis of Polish source profits into origin country as profit repatriation could be
made and companies which choose to perform on a usual basis and converting the Foreign Polish
earning into the home country's currency. The Polish Zloty is convertible externally and
compilation with the requirement of Statue of International Monetary Funds. The financial
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transaction In Poland could be summarised in PLN or in any other currency as well. On the
contrary, Polish residents could not conclude the transactions with other residents of Polish in
foreign currencies (Profit Repatriation from Poland, 2019). Thus, foreign employees in Poland
could retain their remuneration in a foreign currency in Poland or in other foreign bank accounts
as well.
The Polish law allows on basis of unrestricted profit repatriation and in this context, there
is an absence of restrictions on shares transfers within Poland and their proceedings. The
Foreigners could transfer and convert currency in order for making payments in other countries
or might transfer profit share after tax deduction which are related to Polish activities. Moreover,
capital gain via Poland’s foreign investors could be entirely withdrawn through Poland in
specific cases such as expropriation liquidation and others as well. As in this report for
expanding Hudson Bay it has to be signed under double taxation treaties which impacts
dividends taxation. This reduces the rate of withholding for dividends, royalties, capital gains
and interest (Further regulations of The Polish retail market, 2019). As per provision of directive,
dividends paid between EU companies are befitted from a participation exemption.
In the present scenario, Regulatory uncertainty is indicated as burden which is very
difficult for measuring and poorly mapped through the availability of indexes but this appears as
a major problem in Poland. The issues with uncertainty are visible in tax law such as
complicated tax regulation is a major issue. This must be stressed that issues were not on the
basis of tax rate but precisely with tax regulations as well. The uncertainty caused by unstable
and complicated taxes is worsened through the excessive length of judicial proceedings.
Thus, poor quality and unpredictability of regulatory alterations in Poland is a major
obstacle to sustain on high economic growth. The excessive obligations of information
unnecessarily increase with businesses administrative costs. The regulations that could limit the
competition hamper the growth of very effective enterprises (Rollert, 2018). Henceforth,
regulatory alterations aggregate uncertainty, discouraging firms through investing.
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REFERENCES
Further regulations of The Polish retail market. (2019). [Online]. Available through
<https://www.squirepattonboggs.com/en/insights/publications/2016/08/further-
regulations-of-the-polish-retail-market-new-legislation-in-preparation>.
Importing and exporting rules and regulations in Poland. (2019). [Online]. Available through
<https://www.tmf-group.com/en/news-insights/articles/2018/june/poland-import-export-
rules/>.
Nafkha, R., & Woźniakowski, T. (2018). Households electricity usage analysis and the
effectiveness of changing tariff group. Information Systems in Management. 7.
Poland Import Tariff. (2019). [Online]. Available through <https://www.export.gov/article?
id=Poland-Import-Tariff>.
Profit Repatriation from Poland. (2019). [Online]. Available through
<https://www.lawyerspoland.eu/repatriation-of-profit-from-poland>.
Requirments for doing business in Poland. (2018). [Online]. Available through
<https://www.tmf-group.com/en/news-insights/articles/2018/october/doing-business-in-
poland/>.
Rollert, K. E. (2018). The underlying factors in the uptake of electricity demand response: The
case of Poland. Utilities Policy. 54. 11-21.
Trujillo-Baute, E., del Río, P., & Mir-Artigues, P. (2018). Analysing the impact of renewable
energy regulation on retail electricity prices. Energy policy. 114. 153-164.
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