Transportation package - the Senate has completed its examination of the bill

Final work on the regulations applicable to the monitoring of road transport of goods

Excise Duty Express 04/2017 | 6 March 2017

On 3 March 2017 the Senate finished its examination of the draft bill related to the so-called transportation package, i.e. Act on the system used for monitoring road transport of goods, which - together with other laws - will constitute a comprehensive regulation aimed to eliminate VAT and excise duty fraud.

Transportation package - underlying concepts

As indicated in the previous issues of our Excise Duty Express, based on the transportation package, supply chain participants are obliged to report transportation of certain specific goods. Generally, the list of goods subject to the monitoring obligation includes such items as ethyl alcohol, engine fuel, lubricating oil and lubricating preparations, some solvents and diluters, or alcohol-based defrosting agents.

A breach of the obligations imposed by the Act (inter alia, reporting their transport in an incorrect manner) will be subject to severe penalties (such as a fine equal to 46% of the value of transported goods, not less than PLN 20 000). In addition, if the legal duties are not fulfilled properly (for instance, if the report submitted to the register contains incorrect data), the regulations provide for a possibility to seize the means of transportation together with the goods or to place a customs seal.

Amendments made by the Senate

During the Senate work, which was preceded by a joint session of the Infrastructure Committee, National Economy and Innovativeness Committee, and Budget and Public Finance Committee, a number of amendments were introduced.

One of the most important of them is clarification of the rules of excluding specific quantities of goods from the monitoring obligation (this issue raised many interpretative doubts during the legislative work). As a rule, transits with the gross weight/ capacity exceeding 500 kg/ 500 litres will be liable to the monitoring obligation.  Exceptions from this rule apply to specific goods transported in unit packages (e.g. exception for lubricating oil transported in unit packages of <11 litres).

Another significant amendment concerns the definition of the dispatcher - the dispatcher is inter alia an entity performing the last supply of the goods before the commencement of transportation, where after their release the goods are transported to the recipient; the dispatcher is also entitled to dispose of the goods as their owner upon commencement of the transportation, if they deliver the goods to the recipient for the purpose of goods' supply after the completion of the transport.

In addition, the Senate clarified which data should be included in the inter-warehouse transfer sheet in order to ensure that the transportation connected with the transfer does not fall within the scope of the Act.

Concerns raised during Senate sessions

The proposal to monitor only the entities that hold the required concessions for transport of fuels was rejected during the Senate's works.

The Senate also did not agree to the proposal to postpone the effective date of the Act by 6 months. As a result, the Act will take effect 14 days after its promulgation and the penalties will become applicable as from 01 May 2017.

Follow up

Having considered the Senate's amendments, the Sejm referred the bill to the President for signature. In real terms, the Act will probably take effect at the beginning of April 2017 (and penalties will apply as from May 2017).

As mentioned in our previous issues, the introduction of the new legislation will force entities representing various sectors of economy to adjust to the new requirements within a short period of time. Fulfilment of the obligations under the drafted act will require, among others, implementation of appropriate enterprise risk management procedures and mechanisms, changes to logistics processes, relevant training to employees or modification of contracts with transport service providers.

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