I. Terrorism – new phenomenon – new challenges.
Security is the most important factor determining whether efforts aimed at improving economic growth of our country and increasing economic freedom are successful.
Our country citizens’ security is significant for further civil liberties’ increase. Furthermore, security assurance allows foreign capital inflows and new technologies’ inflows and influences the investment location choice.
The level of a particular country’s security determines the level of investment risk. Thus, it has a direct impact on economic growth.
The terrorist attacks within the last few years proved that particular countries are not able to solve the problem concerning international terrorism by themselves. Terrorist acts perpetrated by single-person suicide and the scale of damages forced many countries to verify their current security policy.
Institutions established to ensure security: armed forces, the police and secret services are not able to eliminate all terrorism threats.
Partnership of governmental administrative bodies and entrepreneurs dealing with arms, goods and technologies of strategic importance may be a way of limiting the above threats.
Dramatic events in New York, Washington, London and Madrid strengthened the cooperation between countries from many regions of the world and the issues of non-proliferation and export control has become a crucial subject to international debate.
These problems are discussed by various international institutions such as NATO, EU, UN and OSCE - of which Poland is also a member.
Moreover, these issues are subject to political initiative of some countries. Striving to join international activities, Poland organized a meeting under so called Krakow Initiative - Proliferation Security Initiative (PSI) aimed at establishing procedures of prompt reactions to the attempts of illegal goods of strategic importance proliferation.
Activities carried out to uncover illegal arms and dual use goods and technologies’ transfer encounter difficulties, since terrorist groups are supported by the countries that aspire to the role of regional superpowers, threatening the regional and global peace and security.
Thus, terrorists are at a disposal of a significant weapons arsenal, using the financial and logistics background of the countries conducting confrontation politics.
Therefore, the most effective way to limit the possibilities of carrying out terrorist activities is international cooperation and the control of goods of strategic importance - sent to the countries that are not trusted by the international community - export.
The intensification of many countries' efforts to preserve international peace and security caused the existing non-proliferation regimes’ implementation or toughening.
The regimes has been established to control international trade of conventional weapons and selected categories of goods, devices and technologies - so called dual use that can be used both in a civil and military way. Therefore, they render gaining the ability to produce modern weapons’ systems, particularly weapons of mass destruction (nuclear, chemical and biological), as well as racket means of its transfer possible.
Effective foreign trade control of both produced in the country and imported goods of strategic importance, carried out in accordance with the international standards, provides national entrepreneurs with an access to the most modern goods, technologies and technological know-how - trade of which on the world’s markets is internationally controlled.
Furthermore, national trade control system is a part of our country’s integration policy. Poland’s membership in UN and EU sped up the works concerning Poland adopting these organisations’ standards, also in the field of export control.
For Poland, the foreign trade flow is one of the means of strengthening the economy and its further growth. There have been initiated many operational programmes aimed at the development of entrepreneurship, that causes dynamic development of small and medium-sized enterprises, and encouraging foreign investors to continuous cooperation with Polish industry, including defence industry.
The development of small and medium-sized enterprises is essential due to the fact that they provide both new workplace and a significant part of tax receipts to the state budget.
However, a rise in sales promotes an increase in the risk of dual use goods and arms penetration in the counties or organisations that can use it in regional armed conflicts.
Although dual use goods and technologies as well as research and implementation works' results seem not constitute a threat to people, they can penetrate countries that will make attempts to use these technologies for military purposes. Events of last years prove that to many countries the security threat is completely real.
Global trade faces a problem in the field of trusting potential partners and being reliable to public administrative bodies responsible for establishing modern methods of economy stimulation.
In 2000, Export Control Department of the Ministry of Economy striving to meet the international standards aimed at preserving security and legality of conducted transactions prepared a Law of foreign trade in goods, technologies and services of strategic importance to the security of the state and to maintaining international peace and security. With few amendments, the Law is still in force (Dz.U. of 2004, No 229, item 2315).
At the same time, to meet Polish entrepreneurs’ expectations halfway, it proposed implementing self-control systems that complete national export control system. This system does not limit entrepreneurs’ freedom of action above the necessary minimum and does not hinder concluding commercial transactions with foreign partners. The system allows good cooperation with public administrative bodies - in consequence - the level of ordnance and dual use goods' sales carried out by Polish entrepreneurs depends greatly on their actions.
II. Common foreign policy – common security policy.
Over 30 most developed countries in the world take part in international trade of arms
and dual use goods and technologies’ control system, developed by: international organizations, non-proliferation agreements and control regimes.
Poland is a member of all non-proliferation organisations and groups. Moreover, it has ratified all international conventions and treaties concerning common security activities.
We cooperate with partners to this agreements and regimes in order to contribute to the regional and international security and stability by increasing clarity and responsibility in conventional weapons’ and dual use goods and technologies’ transfers - to prevent it gathering that results in international peace and security destabilisation.
Our country takes part in international activities in favour of:
- common actions against identified or potential terrorist organizations,
- withholding trade flow with the countries that conduct warfare and support international terrorism,
- prevention of military power increase in the countries threatening the international security,
- not allowing proliferation of weapons of mass destruction and conventional weapons and technologies aimed at its development,
- limitation of trade aimed against some institutions and organisations in the countries completely or partly covered by UN and EU embargo.
Poland is a responsible and aware of its obligations political partner and participant in international trade flow. Poland is a party to the international treaties and agreements, under which it is obliged to control export and import of some 'delicate’ categories of goods and technologies.
Our country’s non-proliferation obligations constitute a crucial factor in Polish foreign policy as well as efforts to preserve peace.
Trade control is not an internal issue of particular countries; it has become a pillar of foreign policy as well as UN and EU security policy and cooperation of Member States in this field.
Poland is a member of all non-proliferation organizations and groups (Organisation for the Prohibition of Chemical Weapons – OPCW, Comprehensive Nuclear-Test-Ban Treaty Organisation – CTBTO, Wassenaar Arrangement, Australia Group, Nuclear Suppliers Group - NSG, Zangger Committee, Missile Technology Control Regime – MTCR) and a party to all treaties and conventions.
III. Certificate means reliability.
In dynamically growing economy governmental administration cannot control each and every foreign transaction with entrepreneurs’ trade activity unharmed, e.g., delays in transactions’ realisation due to long-lasting procedures. Rigorous export control would result in the occurrence of procedures and mechanisms paralysing arms, military equipment and dual use goods and technologies’ export - what could cause the limitation of Polish entrepreneurs’ economic activity.
To ensure that the foreign trade control system is ‘entrepreneurs’ friendly’, the export control should start at the entrepreneur’s through self-control mechanisms' implementation that will allow shortening administration procedures.
Fist and foremost, the internal compliance system should function at industrial enterprises, trading companies, scientific, research and implementation centres, intermediaries including shippers, carriers, transshippers and trade consultants.
De facto control shall be organised in-house by Polish manufacturers, exporters, users and scientific research centres, etc.; manufacturing, using and exporting dual use goods and technologies, military equipment and arms controlled internationally and intermediaries.
The Internal Compliance System, functioning in each enterprise, is the most important device preventing goods of strategic importance transfer - including arms and military equipment - to improper recipients.
This system is a part of a larger one linking Polish enterprises, Polish governmental institutions and international organisations setting the rules and principles of arms, military equipment and dual use goods and technologies' trade. All of these cooperate mutually to maintain peace and improve international security.
In order to accomplish the above, an entrepreneur is obliged to establish and use the Internal Compliance System that enhances carrying out each transaction in an individual way, preserving the legal rules in force.
From the management point of view the Internal Compliance System functions as
an instrument protecting the company against activities incompatible with trade control national requirements and international obligations in this field.
Having their own Internal Compliance System, Polish companies will be able to protect their commercial interest and image in the eyes of foreign partners.
On the webpage: http://mg.gov.pl/GOSPODARKA/DKE/Wewnetrzny/ the Export Control Department of ME put a program that enables entrepreneurs to establish their own ICS in compliance with standards and legal regulations in force.
In accordance with the Internal Compliance System’s provisions in force in Poland - it is subject to the certification of the compliance with the requirements of the international norms of ISO 9000 series and additional requirements accepted by the Ministry of Economy. After the amendment to the Law of 29 November 2000 it shall be subject to the certification of the following norm requirements: Polish Norm PN-N-19001:2006 the Internal Compliance System (ICS) – Requirements.
ICS Programme that is available to entrepreneurs allows them to include the following elements (three pillars) in the Internal Compliance System:
- know your foreign contractor;
- know technical parameters of goods you are trading;
- know what your product can be used for.
The entrepreneurs that have implemented and use in practice the self-control mechanisms stand out in a positive way among other entrepreneurs participating in foreign trade.
Having gained the ICS certificate, these entrepreneurs are seen by the governmental administration as solid and reliable partners as far as arms and dual use goods and technologies' international trade is concerned.
IV. Entrepreneurs and governmental administration cooperation.
The number and variety of entities engaged in an economic activity in Poland as well as the number of decisions taken by various international bodies dealing with non-proliferation - causes that functioning of foreign trade national compliance system through giving orders, imposing bans and issuing directives by central administration does not guarantee effective control.
Intensified dialogue between governmental administration and entrepreneurs has become necessary. It requires administrative bodies to improve the awareness and knowledge on country’s policy in the field of non-proliferation and law provisions concerning export control in Poland - among economic organisations, manufacturing enterprises, trading companies, research and implementation centres and chambers of commerce and industry.
In a modern European country an entrepreneur should be a partner to governmental administration, who enables international regimes’ arrangements’ and non-proliferation agreements' realisation through good cooperation with administrative bodies - thus, the entrepreneur acts in its own well understood business.
The above cooperation includes using the same control mechanisms and procedures in all enterprises that establish and complete administrative export compliance system in compliance with international standards.
This system does not limit Polish entrepreneurs’ freedom of action above the necessary minimum and does not mean that they are not equal to their foreign competitors. At the same time it protects their commercial interest and image in the eyes of foreign partners.
Modern export control of goods of strategic importance has new tasks to accomplish. First and foremost they have to balance entrepreneurs' economic interests with the country’s foreign policy interest and build - together with other EU States - common security policy.
On its webpage, the Export Control Department provided the access to the device that enhances entrepreneurs’ independence in foreign trade, provided that they implement, maintain and improve their own self-control mechanisms.
The process of managing a company - under the Internal Compliance System - functions as an instrument protecting the company against activities incompatible with national provisions and activities incompatible with international trade control requirements as well as international agreements and obligations in this field.
Having the Internal Compliance System is crucial for all Polish entrepreneurs, since:
- it helps to protect Polish company against accidental violation of provisions in force, which could result in economic sanctions and criminal penalties,
- it can be a crucial factor in favour of Polish enterprise (and its management) in the case of trade control provisions’ violation,
- implemented and properly maintained trade compliance system allows the identification of a particular person to be blamed for the law negligence or violation (as a result of acting against the system),
- a lack of trade compliance system may hinder commercial relationships with foreign companies that follow the trade control principles.
The system proposed to polish entrepreneurs is fully compliant with international standards, uses the same notions and has an identical structure.
The idea of the Internal Compliance System is based on cooperation between entrepreneurs and governmental institutions, aimed at prevention of weapons and dual use goods and technologies’ collection by the organisations or countries that can threaten international peace and security.
Implementing the Internal Compliance System in Polish companies is important for the company itself as well as for the country and international community.
V. Polish trade control system facilitations.
Polish foreign trade control system in the field of goods, technologies and services of strategic importance enables fulfilling obligations towards EU and UN partners as well as allows meeting Polish entrepreneurs’ requirements:
- governmental administrative bodies' resignation form carrying out rigorous foreign trade controls in the field of goods of strategic importance;
- simplification of formal procedures connected with gaining export authorization by limiting granting individual authorizations and increasing granting global and general authorizations;
- implementing facilitations for entrepreneurs trading with other UN Member States;
- including Polish manufacturing, trading and service enterprises, research centres as well as intermediaries (such as shippers, carriers, transshippers, trade consultants) in common activities against organisations or countries triggering off local or regional armed conflicts;
- including Polish entrepreneurs in common activities against identified or potential terrorist organisations in order to preserve international peace and security;
- harmonization of Polish entrepreneurs and administration activities with EU Member States’ activities to prevent weapons of mass destruction proliferation and destabilizing conventional weapons’ gathering and not controlled dual use goods and technologies’ transfers causing the threat to regional and global peace and security;
- following the example of EU and UN States and establishing the conditions to the dialogue development and exchange of information among entrepreneurs and governmental administration in the field of trade control; familiarizing entrepreneurs and economic organisations as well as research centres and intermediaries with trade control means and methods;
- strengthening the entrepreneurs’ believes that foreign trade control in the field of goods, technologies and services of strategic importance to the country’s security as well as maintaining international peace and security is both necessary and useful; explaining why their support is of basic meaning to the efficiency of this control,
- facilitating international conditions’ cognition and understanding and legal regulations’ understanding in this field and extending the group of people who know why the compliance system is a necessary element of Polish economic and foreign policy - to the national business entities,
- providing enterprises with more information on establishing model internal compliance system and managing trade ensuring the adherence of international obligations and agreements in this field.
VI. Entrepreneurs’ assistance.
To ensure better understanding of all participants’ role in the trade control system, Export Control Department of the Ministry of Economy - in cooperation with a public procurement procedure winning company - organises trainings for all interested entrepreneurs, that help companies to implement Internal Compliance System mechanisms and to train people responsible for functioning of this system in their companies.
These trainings are financed with the Ministry of Economy funds. Each year, after appointing the training contractor, the Ministry allocates funds for this purpose.
Free of charge trainings for entrepreneurs are conducted by a training company, usually in the second half of each year.
Currently, entrepreneurs taking part in international goods of strategic importance trade are main participants in these trainings. However, current global tendencies and experiences in countering terrorism indicate that these trainings should also be carried out in universities, scientific research institutes and other technological know-how centres, since these organisations are at a disposal of so called ‘intangible technologies’. Such intellectual values concerning technologies of strategic importance are often conveyed at various seminars, scientific conferences and trainings. Thus, such know-how conveyance should also be subject to a specific self-control.
VII. Summary.
Presented above control system of foreign trade in goods, technologies and services of strategic importance to the security of the State and to maintaining international peace and security entered into force on 1 January 2001. Its efficiency shall depend on full commitment of all trade participants and their understanding that subjecting to the control mechanisms and procedures establishing the control system in accordance with international standards shall not limit Polish entrepreneurs’ freedom of action and can be a specific privilege.
It can be assumed that by entering into force the control system and limitation of arms, military equipment and goods and technologies’ deliveries, that can be used to manufacture weapons of mass destruction by terrorist organisations - Poland joined the activities taken by international community in the field of establishing common policy aimed at maintaining international peace and security.