Does Subcontracting By A Polish Contractor To A Foreign Supplier Require Offset?

The new Polish offset law (the Act of Parliament dated June 26, 2014 on certain agreements concluded in connection with contracts essential for the national security) came into force on 30 July 2014 but still there are very few examples of its practical application. It results from the rule that the new offset law applies only to such offset agreements where procedures for the conclusion of offset agreement were initiated after the date when this act entered into force. In many projects started before the summer 2014 the previous offset law would still apply. Subsequently we must wait for the intensive practical experiences with interpretation of the new law.

One of the issues that may raise doubts is the scope of the new offset law application. It provides that "A foreign supplier is obliged to conclude an offset agreement on the terms provided for in the Act" (art. 1). Does it mean that if a Polish supplier concludes a supply agreement pertaining to the