Poland Comprehensive Trade Package

Entered into Force September 14, 2001

Note: The U.S. Government pursued the following tariff agreement with the Polish Government to provide greater market opportunities for U.S. exporters in the Polish market. After May 1, 2004, when Poland joins the European Union, U.S. exports to Poland will be charged tariffs according to the European Union's Common External Tariff. Rates below are therefore void; the correct rates can be found at the Trade Information Center's web site: https://www.ita.doc.gov/td/tic/tariff/eu_schedule/index.html

TEXT OF AGREEMENT SIGNED JUNE 15, 2001

(as amended per exchange of letters)

UNITED STATES-POLISH WORKING GROUP ON TRADE ISSUES

AGREED MINUTES ON A COMPREHENSIVE TRADE PACKAGE

Reference is being made to the talks on economic issues held by Poland's Deputy Prime Minister and Minister of Economy, Mr. Janusz Steinhoff, with the United States Trade Representative, Mr. Robert Zoellick, and other representatives of the U.S. Administration (Washington, D.C., May 28-29, 2001).

After extensive discussion of the wide range of bilateral trade issues, both Sides have agreed to establish the Polish-U.S. Working Group on Trade Issues. The first meeting of the working group took place in Washington, D.C. on June 7-8, 2001. The Polish Side was headed by Deputy Minister of Economy Mr. Wojciech Katner and the U.S. Side was headed by Assistant U.S. Trade Representative Ms. Catherine Novelli.

Both Sides have agreed upon the following:

1. Both Sides reaffirmed their desire to maintain and expand their bilateral economic ties.

Continuing Poland's Participation in the U.S. Generalized System of Preferences (GSP) Program and Establishing a Process to Address the Tariff Differential Problem

2. Poland has long been a major beneficiary of the U.S. Generalized System of Preferences (GSP) program. Under that program, an eligible GSP beneficiary obtains duty-free access to the United States for 3,507 (as of January 1, 2001) agricultural and industrial articles. Both Sides desire to see Poland continue to participate in the U.S. GSP program, under which approximately US $1 billion of Polish goods entered the United States duty-free over the last three years.

3. The U.S. Side indicated that the Government of the United States will support in the Congress legislation this year to extend the U.S. GSP program, which is currently scheduled to expire on September 30, 2001.

4. Both Sides agree to regularly review the tariff differential problem affecting exports of U.S. agricultural and industrial goods to Poland with a view to solving this problem. As a result of the review in June 2001 of the tariff differential problem, the Polish Side will make, consistent with Polish laws, the tariff modifications indicated in the attached schedule (Annex A), which will enter into force in or before January 2002. Both Sides also agreed not to increase above the 2001 levels the tariffs provided to the U.S. Side in June 2001 (Annex B), excluding four items of position 6 (customs code respectively 8708 99 30 1, 8708 99 50 1, 8708 99 92 1, and 8708 99 98 1), which may increase to the EU's common external tariff levels when Poland becomes a member of the EU.

5. Taking the commitments mentioned in paragraphs 3 and 4 above into account and in expectation of a positive result from the consideration of tariff suspensions in paragraph 10 below, the U.S. Side, consistent with U.S. laws, will support the continuation of Poland's participation in the U.S. GSP program for agricultural and industrial goods until Poland becomes a member of the EU.

Conformity Assessment

6. The Polish Side informed that it is adjusting its system in the field of conformity assessment to the EU one, according to the Protocol on European Conformity Assessment (PECA). Both sides informed that they intend to honor their obligations under the World Trade Organization (WTO) Technical Barriers to Trade Agreement. The Polish side has taken note of the U.S. Side's observations concerning the Protocol on European Conformity Assessment.

Acceding to the WTO Government Procurement Agreement

7. The Polish Side emphasized that it has observer status to the WTO Government Procurement Agreement. As a candidate country to the EU, it is committed to accede to the WTO Government Procurement Agreement as of the date of accession to the EU. Poland is going to start soon the procedure required in order to accede to the WTO Government Procurement Agreement.

Improving Market Access for Agricultural Products

8. The U.S. Side confirms that as of June 1, 2001, it has terminated its safeguard measure that had applied to wheat gluten from Poland. The U.S. side also confirms that, consistent with U.S. laws, wheat gluten from Poland will be included in the U.S. GSP program.

9. The U.S. Side affirms that the issue of increasing cheese quotas for Poland is a subject for discussion in multilateral negotiations on agriculture. The U.S. Side will promptly provide the Government of Poland with information about the current importers with licenses to import cheese under the "any country" category

10. The Polish Side, consistent with Polish laws and regulations, will initiate the internal procedure aimed at suspending as of January 2002 Polish customs duties for the following products:

a) grapefruits (PCN code 0854 00 00) - suspension of duty to 5 percent level;

b) wine of fresh grapes, including fortified wines, white and other (PCN code 2204 21 79 0 and 2204 21 80 0) - the suspension of duty to the level currently applied with respect to imports from EU countries, i.e., 20%, min. 25 Euro/hl.

c) almonds (PCN code 0802 11 and 0802 12) - suspension of tariffs to the present level of the EU common customs tariff.

Altogether, the Polish side will take into consideration the possibilities suspensions for seven tariff items (at the 9-digit code level).

Flexibility Opportunities for Textile Quotas to Maximize Benefits to Poland

11. The U.S. side affirms that by utilizing available flexibility provisions, exporters of Polish textiles will be able to increase the 2001 quota year's shipments by 114 percent for Category 433 (men's and boys' woolen suit-type coats), by 87 percent for Category 435 (women's and girls' woolen coats), and by 48 percent for Category 443 (men's and boys' woolen suits) over the amount shipped against the quotas for the 2000 quota year.

13. The U.S. side will increase Poland's base level quotas for seven apparel categories and two fabric categories textiles by two percent for wool, and by twelve percent for other categories, for each of the 2002, 2003 and 2004 quota years. Further, it will eliminate by January 1, 2005 all quotas under the WTO Textile Monitoring Body pursuant to the WTO Agreement on Textiles and Clothing.

14. It was also agreed by both Sides that the Polish-U.S. Working Group on Trade Issues will meet regularly, alternately in Washington, D.C., and Warsaw, to address and try to find solutions to various trade issues.

These minutes concerning the comprehensive trade package are agreed to by the Polish Side and the U.S. Side on this 15th day of June, 2001, in Warsaw, Poland. These commitments are subject to final confirmation in the form of an exchange of letters to be signed by Deputy Prime Minister and Minister of Economy Mr. Janusz Steinhoff and U.S. Trade Representative Robert Zoellick.

FOR THE POLISH SIDE FOR THE U.S. SIDE

[signature]

Mr. Wojciech Katner

Undersecretary of State

Ministry of Economy

[signature]

Mr. Christopher Hill

U.S. Ambassador to Poland

ANNEX A

NEW TARIFF SUSPENSIONS

TO ENTER INTO FORCE IN OR BEFORE JANUARY 2002

HTS DESCRIPTION

2921.51 O-, M-, P-PHENYLENEDIAMINE, DIAMINOTOLUENES,

& DERIVATIVES SALTS THEREOF

-- 2921 51 11 0 tariff reduction from 7% to 0

-- 2921 51 19 0 tariff reduction from 7 to 6.5%

-- 2921 51 90 0 tariff reduction from 7 to 6.5%

3302.90 MIXTURES OF ODIFEROUS SUBSTANCES, ETC. NESOI

-- 3302 90 100 tariff reduction from 9 to 4%

-- 3302 90 900 tariff reduction from 9 to 4%

3304 BEAUTY PRODUCTS

-- 3304 10 00 0 tariff reduction from 27 to 20%

-- 3304 20 00 0 tariff reduction from 27 to 20%

-- 3304 30 00 tariff reduction from 27 to 20%

-- 3304 91 00 tariff reduction from 27 to 20%

-- 3304 99 00 tariff reduction from 27 to 20%

3307.20 PERSONAL DEODORANTS AND ANTIPERSPIRANTS

-- 3307 20 00 0 tariff reduction from 9 to 7.5%

3815.90 REACTION INITIATORS, REACTION ACCELERATORS, AND CATALYTIC PREPARATIONS, NESOI

-- 3815 90 10 0 tariff reduction from 9 to 7%

-- 3815 90 90 0 tariff reduction from 9 to 7%

3822.00 COMPOSITE DIAGNOSTIC/LAB REAGENTS, EXCLUDING PHARMACEUTICALS

-- quota established

8411 GAS TURBINES

-- 8411 11 10 0 tariff reduction from 9 to 5%

-- 8411 11 90 0 tariff reduction from 9 to 5%

-- 8411 12 90 0 tariff reduction from 9 to 5%

-- 8411 21 10 0 tariff reduction from 9 to 5%

-- 8411 21 90 0 tariff reduction from 9 to 5%

-- 8411 22 11 0 tariff reduction from 9 to 5%

-- 8411 22 19 0 tariff reduction from 9 to 5%

-- 8411 22 90 0 tariff reduction from 9 to 5%

-- 8411 81 10 0 tariff reduction from 9 to 5%

-- 8411 81 90 0 tariff reduction from 9 to 5%

-- 8411 82 10 0 tariff reduction from 9 to 5%

-- 8411 82 91 0 tariff reduction from 9 to 5%

-- 8411 82 93 0 tariff reduction from 9 to 5%

-- 8411 82 99 0 tariff reduction from 9 to 5%

-- 8411 91 90 0 tariff reduction from 9 to 5%

-- 8411 99 10 0 tariff reduction from 9 to 5%

-- 8411 99 90 0 tariff reduction from 9 to 5%

8421 CENTRIFUGE; FILTERS

-- 8421 11 00 0 tariff reduction from 9 to 5%

-- 8421 12 00 0 tariff reduction from 9 to 5%

-- 8421 19 10 0 tariff reduction from 9 to 5%

-- 8421 19 91 0 tariff reduction from 9 to 5%

-- 8421 21 10 tariff reduction from 9 to 5%

-- 8421 21 90 0 tariff reduction from 3 to 1.7%

-- 8421 22 00 0 tariff reduction from 9 to 5%

-- 8421 23 10 0 tariff reduction from 9 to 5%

-- 8421 23 90 0 tariff reduction from 9 to 5%

-- 8421 29 10 0 tariff reduction from 9 to 5%

-- 8421 29 90 0 tariff reduction from 3 to 1.7%

-- 8421 31 10 0 tariff reduction from 9 to 5%

-- 8421 31 90 0 tariff reduction from 9 to 5%

-- 8421 39 10 0 tariff reduction from 9 to 5%

-- 8421 39 30 0 tariff reduction from 9 to 5%

-- 8421 39 51 0 tariff reduction from 9 to 5%

-- 8421 39 71 0 tariff reduction from 9 to 5%

-- 8421 39 98 0 tariff reduction from 3 to 1.7%

-- 8421 91 30 0 tariff reduction from 2 to 1.7%

-- 8421 91 90 0 tariff reduction from 9 to 5%

-- 8421 99 00 0 tariff reduction from 9 to 5%

8438 MACHINE NESOI, PREPARATION OF FOOD OR DRINK ETC, PARTS

-- 8438 10 10 0 tariff reduction from 9 to 5%

-- 8438 20 00 0 tariff reduction from 9 to 5%

-- 8438 30 00 0 tariff reduction from 9 to 5%

-- 8438 40 00 0 tariff reduction from 9 to 5%

-- 8438 60 00 0 tariff reduction from 9 to 5%

-- 8438 80 10 0 tariff reduction from 9 to 5%

-- 8438 80 91 0 tariff reduction from 9 to 5%

-- 8438 80 99 0 tariff reduction from 9 to 5%

8544 INSULATED WIRE, CABLE, ETC; OPTICAL SHEATH FIBER CABLES

-- 8544 11 10 0 tariff reduction from 6 to 5%

-- 8544 11 90 0 tariff reduction from 6 to 5%

-- 8544 19 10 0 tariff reduction from 9 to 5%

-- 8544 19 90 0 tariff reduction from 9 to 5%

-- 8544 20 00 0 tariff reduction from 6 to 5%

-- 8544 30 10 0 tariff reduction from 9 to 5%

-- 8544 30 90 0 tariff reduction from 9 to 5%

-- 8544 41 90 0 tariff reduction from 6 to 5%

-- 8544 49 80 0 tariff reduction from 9 to 5%

-- 8544 51 90 0 tariff reduction from 9 to 5%

-- 8544 59 10 0 tariff reduction from 6 to 5%

-- 8544 59 20 0 tariff reduction from 6 to 5%

-- 8544 59 80 0 tariff reduction from 6 to 5%

-- 8544 60 10 0 tariff reduction from 9 to 5%

-- 8544 60 90 0 tariff reduction from 9 to 5%

8701 TRACTORS, NOT IN 8709

-- 8701 30 90 0 tariff reduction from 35% to 0

-- 8701 90 11 0 tariff reduction from 35 to 3%

-- 8701 90 39 9 tariff reduction from 35 to 3%

8703.23 PASSENGER VEHICLE, 1500-3000CC

-- 8703 23 11 0 tariff reduction from 35 to 20%

8703.24 PASSENGER VEHICLE, OVER 3000CC

-- 8703 24 10 0 tariff reduction from 14 to 10%

8708.99 PARTS & ACCESSORIES OF MOTOR VEHICLES, NESOI

-- 8708 99 30 9 tariff reduction from 15 to 11%

-- 8708 99 50 9 tariff reduction from 15 to 11%

-- 8708 99 92 9 tariff reduction from 15 to 11%

-- 8708 99 98 9 tariff reduction from 15 to 11%

9018 MEDICAL, SURGICAL, DENTAL, VETERINARY INSTRUMENTS AND APPLIANCES

-- 9018 11 00 0 tariff reduction from 9 to 5%

-- 9018 12 00 0 tariff reduction from 9 to 5%

-- 9018 13 00 0 tariff reduction from 9 to 5%

-- 9018 14 00 0 tariff reduction from 9 to 5%

-- 9018 19 10 0 tariff reduction from 9 to 5%

-- 9018 19 90 0 tariff reduction from 9 to 5%

-- 9018 20 00 0 tariff reduction from 9 to 5%

-- 9018 31 10 0 tariff reduction from 9 to 5%

-- 9018 32 10 0 tariff reduction from 9 to 5%

-- 9018 50 10 0 tariff reduction from 9 to 5%

-- 9018 50 90 0 tariff reduction from 9 to 5%

9019.20 OZONE, OXYGEN, ETC. THERAPY, RESPIRATION APPARATUS, PARTS

-- 9019 20 00 0 tariff reduction from 9 to 5%

9021 ORTHOPEDIC, ARTIFICIAL BODY PARTS, HEARING AIDS, ETC.

-- 9021 11 00 0 tariff reduction from 9 to 5%

-- 9021 19 10 0 tariff reduction from 9 to 5%

-- 9021 19 90 0 tariff reduction from 9 to 5%

-- 9021 21 10 0 tariff reduction from 9 to 5%

-- 9021 21 90 0 tariff reduction from 9 to 5%

-- 9021 29 00 0 tariff reduction from 9 to 5%

-- 9021 30 10 0 tariff reduction from 9 to 5%

-- 9021 30 90 0 tariff reduction from 9 to 5%

-- 9021 50 00 0 tariff reduction from 9 to 5%

9031.80 MEASURING OR CHECKING INSTRUMENTS, APPLIANCES AND MACHINES NESOI

-- 9031 80 10 0 tariff reduction from 9 to 5%

-- 9031 80 32 0 tariff reduction from 6 to 5%

-- 9031 80 34 0 tariff reduction from 6 to 5%

-- 9031 80 39 0 tariff reduction from 7 to 5%

-- 9031 80 91 0 tariff reduction from 6 to 5%

-- 9031 80 99 0 tariff reduction from 6 to 5%

NEGOTIATED RATES APPLY TO ALL PRODUCTS FALLING WITHIN THE ABOVE-MENTIONED POLISH HTS CODES AS OF JUNE 2001

(NOTE: NESOI MEANS "NOT ELSEWHERE SPECIFIED OR INDICATED")

TARIFF LEVELS ALREADY REDUCED (Annex B)

NO. HTS DESCRIPTION

1 3004.90

- 3004 90 11 0

- 3004 90 19 0

- 3004 90 91 0

- 3004 90 99 0 MEDICAMENTS NESOI, MEASURED DOSAGE, RETAIL PACKAGING NESOI

tariff rate - 0%

tariff rate - 0%

tariff rate - 0%

tariff rate - 0%

2 8411

- 8411 12 11 0

- 8411 12 13 0

- 8411 12 19 0

- 8411 91 10 0 GAS TURBINES

tariff rate - 0%

tariff rate - 0%

tariff rate - 0%

tariff rate - 0%

3 8421

- 8421 19 94 0

- 8421 19 99 0

- 8421 91 10 0

CENTRIFUGE; FILTERS

tariff rate - 0%

tariff rate - 5%

tariff rate - 0%

4 8438

- 8438 10 90 0

- 8438 50 00 0

- 8438 90 00 0 MACHINE NESOI, PREPARATION OF FOOD

OR DRINK etc. PARTS

tariff rate - 5%

tariff rate - 5%

tariff rate - 5%

5 8544

- 8544 41 10 0

- 8544 49 20 0

- 8544 51 10 0

- 8544 70 00 0 INSULATED WIRE, CABLE, etc.; OPTICAL SHEATH FIBER CABLES

tariff rate - 0%

tariff rate - 0%

tariff rate - 0%

tariff rate - 0%

6 8708.99

- 8708 99 11 0

- 8708 99 19 0

- 8708 99 30 1

- 8708 99 50 1

- 8708 99 92 1

- 8708 99 98 1 PARTS & ACCESSORIES OF MOTOR VEHICLES, NESOI

tariff rate - 0%

tariff rate - 0%

tariff rate - 0%

tariff rate - 0%

tariff rate - 0%

tariff rate - 0%

7 8803

- 8803 10 10 1

- 8803 20 10 1

- 8803 30 10 1

- 8803 90 91 1 AIRCRAFT PARTS

tariff rate - 0%

tariff rate - 0%

tariff rate - 0%

tariff rate - 0%

8 9018

- 9018 31 90 0

- 9018 32 90 0

- 9018 39 00 0

- 9018 41 00 0

- 9018 49 10 0

- 9018 49 90 0

- 9018 90 10 0

- 9018 90 20 0

- 9018 90 30 0

- 9018 90 41 0

- 9018 90 49 0

- 9018 90 50 0

- 9018 90 60 0

- 9018 90 70 0

- 9018 90 75 0

- 9018 90 85 0 MEDICAL, SURGICAL, DENTAL, VETERINARY INSTRUMENTS AND APPLIANCES

tariff rate - 3%

tariff rate - 3%

tariff rate - 3%

tariff rate - 3%

tariff rate - 5%

tariff rate - 5%

tariff rate - 5%

tariff rate - 5%

tariff rate - 5%

tariff rate - 5%

tariff rate - 5%

tariff rate - 5%

tariff rate - 5%

tariff rate - 5%

tariff rate - 5%

tariff rate - 5%

9 9021

- 9021 40 00 0

- 9021 90 10 0

- 9021 90 90 0 ORTHOPEDIC, ARTIFICIAL BODY PARTS, HEARING AIDS, etc.

- 9021 40 00 0 tariff rate - 5%

- 9021 90 10 0 tariff rate - 5%

- 9021 90 90 0 tariff rate - 5%