Failure to Deliver Goods by a Polish Company

Failure to deliver goods by a Polish company, despite placing an order and paying an advance by a foreign contractor, is a problem that increasingly affects entrepreneurs from various countries. Such fraud can have serious financial consequences, making it crucial to identify potential threats early and take steps to mitigate risks. The scheme of dishonest Polish companies is often similar and based on the trust gained during the first successful collaboration.

The Typical Fraud Scheme in Poland

Many foreign businesses choose to work with Polish companies due to very attractive price offers. Price is often the key factor in selecting a Polish supplier. Moreover, the first transaction usually goes smoothly – the ordered goods are delivered on time as agreed, and communication with the Polish partner is flawless. These actions build trust and lead the contractor to opt for another, usually larger collaboration, often involving a higher deposit. Only then does the Polish company break off contact, the goods are not delivered, and attempts to recover the funds are futile.

The Most Commonly Ordered Wholesale Goods from Poland

Foreign entrepreneurs often choose Polish companies because of competitive prices and high product quality. Poland is one of the key exporters in Europe, supplying a wide range of goods. Among the most frequently ordered wholesale products from Poland are:

1. Agri-food products – Poland is one of the leading exporters of meat (especially poultry, beef, and pork), fruits (such as apples and berries), vegetables, dairy products, and also alcohol (vodka).
   • Main recipients: Germany, United Kingdom, France, Netherlands.
2. Furniture – Polish furniture is valued for its high quality, especially wooden, upholstered, office, and kitchen furniture.
   • Main recipients: Germany, United Kingdom, France, USA.
3. Cosmetics and household chemicals – Poland is gaining a reputation as an exporter of cosmetics and detergents.
   • Main recipients: Russia, Germany, United Kingdom, France.
4. Machines and industrial equipment – Poland exports agricultural machines, metalworking equipment, and automotive parts.
   • Main recipients: Germany, France, Czech Republic, USA.
5. Building materials – Polish building materials, such as windows, doors, construction tools, and wooden boards, are popular among foreign buyers.
   • Main recipients: Germany, United Kingdom, Scandinavia.
6. Metal and steel products – Polish steel products and metal structures have customers in many countries.
   • Main recipients: Germany, Italy, Czech Republic, USA.
7. Clothing and textiles – Poland exports clothing, decorative and technical textiles, as well as workwear.
   • Main recipients: Germany, France, United Kingdom, Scandinavia.

These products attract foreign clients, especially due to competitive prices and good quality. Often, the first transaction goes without a hitch, encouraging foreign entrepreneurs to establish long-term cooperation. Unfortunately, for some companies, problems arise with the second order – the goods are not delivered, and the Polish company breaks off contact.

Examples of Failed Cooperation with a Polish Contractor:

1. A textile company from Germany ordered a batch of fabrics from a Polish producer, who offered exceptionally favorable pricing. After a successful first delivery, they placed a larger order, but after paying the deposit, contact with the Polish company was lost.
2. An electronics distributor from the Czech Republic chose to collaborate with a Polish supplier due to competitive prices. The first transaction was flawless, but during the second, larger order, the Polish company stopped answering calls and emails.
3. A food importer from France invested in Polish products due to attractive prices and a successful first delivery. On the next order, contact was broken, and the goods were never sent.

Warning Signs

A common tactic of dishonest Polish companies is a successful first transaction. Foreign entrepreneurs, reassured by smooth execution and attractive prices, eagerly place further orders. Only after a larger deposit is paid does the company suddenly stop responding.

Another warning sign may be an exceptionally low price compared to competitors. What initially seems like a great deal may actually be an attempt to scam money. This is why it’s always worth verifying the potential business partner.

How to Protect Yourself from Fraud?

To avoid falling victim to fraud, there are several steps you can take to significantly reduce the risk:

1. Check the VAT White List: Before making a payment, ensure that the bank account number of the Polish contractor is listed on the so-called VAT White List. This is a register maintained by the Polish tax authorities, containing information about VAT taxpayers. Payment to an account from this list increases transaction security by minimizing the risk of transferring money to a fraudulent account.
2. Split Payment: Using the split payment mechanism is another way to secure the transaction. This system involves separating part of the amount (VAT), which is transferred to a special VAT account, making it harder for the fraudster to disappear with the full amount.
3. Proforma and VAT Invoice: It’s important to remember that payment based on a proforma invoice also has legal standing in Poland. The absence of a VAT invoice after paying a deposit does not mean the transaction is invalid – the deposited funds can be legally recovered.
4. Online Contracts (Documentary Form): In Poland, contracts can be concluded in documentary form, meaning that physical signatures are not required. Confirmation of contract terms via email, for example, is fully legally binding. Thus, the absence of a paper contract does not prevent you from enforcing your rights in court.

Quick Action and Legal Assistance

In cases of non-delivery of goods, prompt action is crucial. The longer you wait, the harder it will be to recover the funds. In such situations, it’s worth seeking help from a Polish lawyer, who can promptly take legal steps in Poland.

The law firm SOS Legal has extensive experience in representing foreign entrepreneurs in cases related to fraud involving the non-delivery of goods by Polish companies. Thanks to a thorough knowledge of the law and efficiency in action, this firm can effectively handle cases for recovering receivables through negotiations, mediation, and proceedings before Polish courts and law enforcement agencies.

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