Four years ago, Poland joined the European Union structures. The years that passed and the time left before Poland takes Presidency of the European Union in 2011 induce us to give some consideration to the changes that are under way in both the European and Polish economy.
To attain its objectives, a modern state needs efficient, competitive and well-managed enterprises that would create a modern economy.
Increase of the importance of small and medium-sized enterprises as a factor stabilising and stimulating economic development, as well as increase of enterprises independence, act as an incentive to apply measures aimed at reducing the administrative burdens, which in turn translates into supporting economic competitiveness, of vital significance for the enterprises.
The Ministry of Economy, perceiving the need for changes as well as for better law-making, is currently preparing a series of proposals for legislative amendments, constituting the so called “Package for entrepreneurship.”
In the last four years, trade exchange between Poland and other EU Member States keeps increased dynamically. Also trade with other, non EU countries keeps growing. The international trade brings tangible economic benefits, both for the country and for its citizens.
However, the increase in sales entail more significant risk that dual-use commodities and arms get into countries or organisations which can use them in regional armed conflicts. Global trade involves a problem of confidence in potential partners and of being perceived as a reliable business by public administration authorities responsible for establishment of modern economy stimulations.
This requires the administration to implement such modern tools of goods sales control that would not restrict, more than absolutely necessary, the operators’ freedom and would not impede commercial transactions concluded in good faith, with foreign and domestic partners.
To meet entrepreneurs’ expectations and bearing in mind the need to ensure security and legality of transactions concluded, the Export Control Department, Ministry of Economy, suggested that the entrepreneurs should implement certain in-house control mechanisms.
In contribution to the process of bureaucratic barriers abolishment, we offer to the entrepreneurs a mechanism which allows for greater independence in trade and for increase of transactions profits, provided, however, that entrepreneurs implement, maintain and improve the in-house control mechanisms. To achieve all these, a control and management system, namely the Internal Compliance System, should be used.
This system does not restrict the freedom of Polish entrepreneurs, making at the same time the cooperation with government administration authorities possible.
The entrepreneurs, who have implemented and use the in-house control mechanisms, stand out against other entrepreneurs taking part in the sales of goods are considered as reliable and trustworthy partners in the supply chain. Some measures are being instituted that are to maximise profits and at the same time remain in compliance with domestic and international legal regulations governing circulation of strategic dual-use goods, arms and military equipment. The entrepreneurs should be particularly specific in the assessment of exported goods and types of goods, itinerary, transport type, and other partners, as well as the risk level of goods being delivered to undesirable recipients.
Such measures allow many mistakes to be eliminated, so that the enterprises may become more reliable and recognised as partners to the trade control system.
In order to facilitate establishment of in-house control mechanisms and procedures in enterprises, a standard was developed, namely the Polish Standard - Internal Compliance System - Requirements PN-N-19001:2006, which permits implementation of the abovementioned system in every enterprise, according to a single and uniform standard. Application of the procedures provided for in the standard will facilitate future electronic communications between the entrepreneurs and the Ministry of Economy.
Efficiently operating Internal Compliance System in place is beneficial for the entrepreneur, as:
- it prevents law infringement and potential sanctions resulting therefrom;
- it simplifies official procedures involved in obtaining export license;
- it facilitates the contact and cooperation with the government administration authorities;
- it specifies competency requirements assigned to employees by owners of individual enterprises;
- it increases the employees’ awareness of the threats associated with insufficiently checked contractors, and of financial and legal consequences arising from that fact;
- it keeps the employees knowledge up-dated;
- it gives the possibility to carry out a detailed analysis of goods classification, as well as an assessment of future contractors, and an analysis of transactions’ security and legality;
- it allows to straighten up the procedures historically in place in the enterprise, with the view that human resources will be managed by entrepreneurs more efficiently.
Until recently, implementation and maintenance of the Internal Compliance System was perceived by some entrepreneurs as a necessity resulting from legal obligations rather than a chance to benefit from a well functioning system.
In recent years, the in-house control mechanism, in place in some enterprises, allowed for attracting new commercial partners, from the EU Member States as well as from other countries.
The events of recent years show clearly today that if a company wants to achieve success in business, the implementation of the Internal Compliance System becomes a must. The Export Control Department is working on details and implementation of new guidelines on control of trade in strategic goods in Poland.
Our goal is to contribute to the process of increasing competitiveness and innovation level among Polish entrepreneurs, through simplification of the licensing process in foreign trade in strategic goods.
Striving to achieve this goal, the Export Control Department intends to:
- introduce more transparent rules in foreign trade exchange (by encouraging entrepreneurs to place their comments on the website of the Export Control Department and to address issues important for entrepreneurs);
- limit the number of individual export licenses (issue general and global export licenses instead);
- introduce changes to make trading with NATO Member countries easier for entrepreneurs.
The implementation of the abovementioned guidelines will be carried out under the “Strategic Programme Ministry of Economy for the years 2008 - 2010.”