In recent years, Chinese car brands have been rapidly expanding their operations in both Poland and Europe. From a legal perspective, starting an import business is a complex, multi-dimensional activity that requires precise control.
Type-Approval and Marketing Authorization
The basic starting point is the product itself. To be registered in Poland, a vehicle must meet the requirements of EU type-approval or individual vehicle authorization. EU vehicle approval is based on Regulation (EU) 2018/858 of the European Parliament and of the Council. The vehicle manufacturer may apply for this type of approval. Individual approval is regulated by the Polish Act of April 14, 2023, on vehicle approval systems, and the vehicle owner may also apply for such a document. EU type-approval (which is by far the more common option) is a process in which a new type of vehicle is approved for placing on the market and use throughout the European Union. According to EU regulations, a vehicle holding an EU type-approval certificate may be registered in any Member State without the need for further national approval tests. In Poland, the authority responsible for this process is the Director of the Transport Technical Supervision.
Building a Distribution Network
The primary task of any importer entering a new market is to build a dealer network and, consequently, to prepare suitable distribution agreements. A key step in this process is selecting the appropriate distribution model – with the agency model increasingly being considered, as it fundamentally changes the traditional approach used in dealer networks. From the perspective of a new brand, it is also essential to align dealer obligations with the requirements imposed on the importer by the manufacturer, to take into account both Polish and EU legal frameworks, and to establish a foundation for cooperation that enables both parties to have a long-term, stable, and effective partnership. EU competition law plays a key role in shaping strategies for building dealer networks and drafting dealership agreements for new brands in the automotive sector. Particular importance should be attributed to the Market Block Exemption Regulation and the Vertical Block Exemption Regulation, which define the conditions under which exemptions from the prohibition of anti-competitive practices apply.
Polish antitrust regulations are primarily set out in the Act on Competition and Consumer Protection of February 16, 2007. This act governs the prevention of anti-competitive practices and prohibits anti-competitive agreements, the abuse of a dominant position, and unlawful concentrations of undertakings. The Office of Competition and Consumer Protection is the authority responsible for enforcement in this area.
Antitrust regulations govern issues related to the territorial scope of a dealer’s operations, pricing policies, and sales exclusivity – all of which must be structured in a transparent and non-discriminatory manner. Their objective is to prevent practices that restrict consumer choice in vehicle repair and maintenance services, which is essential for ensuring fair competition in the after-sales service sector.
In practice, European brands have long been aware that it is prohibited to make the validity of a vehicle warranty conditional upon servicing the vehicle exclusively at an authorized service center. Nevertheless, despite numerous penalties, statements contradicting this rule can still occasionally be found. For many Asian brands, however, this and many other regulatory requirements remain surprising. Another sometimes unexpected obligation is the requirement for manufacturers to make spare parts available on the aftermarket – not only within authorized networks but also to independent operators – as this promotes competition and enables customers to choose their preferred suppliers of parts and services.
Responsibility for Product Safety
The provisions of Regulation (EU) 2023/988, in force from December 2024 and known as the “General Product Safety Regulation” (GPSR), are also of significant importance to importers. The GPSR applies to all automotive products that are not subject to specific sectoral regulations, including those related to type-approval. The regulation introduces the requirement for a so-called “responsible person” established within the EU, who will be accountable for ensuring the product’s compliance with safety requirements. In addition, it imposes a range of obligations related to the ongoing monitoring of product safety, including the preparation of detailed documentation and oversight of the supply chain.
Starting an import business in the automotive industry requires an understanding of EU and Polish regulations, particularly in the areas of competition law and product safety. For Asian brands, entering the European market is not only an opportunity for growth but also a test of their ability to adapt to a highly-regulated legal environment. However, looking at the current market dynamics, it must be said with certainty that Chinese companies are not deterred by this.
By Michal Raczkowski, Managing Partner, and Klaudia Wasiak, Senior Associate, RK Legal
This article was originally published in Issue 12.9 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.
