Trade Regulations and Policies of Hungary (2024 Version)

 

 

Table of Contents

1.          Regulations and Policies

1.1        Trade Regulations and Policies

1.1.1     Principal Authority Governing Trade

1.1.2     Trade Regulations

1.1.3     Relevant Provisions on Trade Administration

1.1.4     Inspection and Quarantine of Imported and Exported Commodities

1.1.5     Customs Administration Rules and Regulations

 

 

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1      Regulations and Policies

1.1      Trade Regulations and Policies

1.1.1     Principal Authority Governing Trade

The competent authority for foreign trade in Hungary is the Ministry of Foreign Affairs and Trade.

1.1.2     Trade Regulations

Hungary's trade policies and regulations are generally aligned with those of the European Union (EU). The primary trade-related laws and regulations include: Government Decree on Goods Trading, Services, and the Valuation of Cross-Border and Critical Materials (abbreviated as the Trade Law) (Government Decree 52/2012 (III.28); Government Decree 9/2023 (I.17))¹, EU Regulation on Protection against Dumped Imports from Countries not Members of the European Union (Regulation (EU) 2016/1036)², Act Amending the Foreign Exchange Liberalisation and Related Laws (Act XCIII of 2001)³, Act on the Implementation of Union Customs Code (Act CLII of 2017)⁴, Act on the Functions of the Hungarian Revenue and Customs Service (Act CXXII of 2010)⁵, Government Decree on the Import and Export of Dual-Use Goods (Government Decree 13/2011 (II.22))⁶, among others, as well as Regulation (EU) 2022/2560 on Foreign Subsidies.

The European Parliament and the Council adopted the EU's International Procurement Instrument (Regulation (EU) 2022/1031) on June 23, 2022, which has been in force since August 29, 2022, to "encourage" reciprocal opening of protected foreign public procurement markets to EU economic operators.

The EU put forward its first European Economic Security Strategy in history in June 2023, which divides risks in the field of economic security into four major aspects: supply chain risk, critical infrastructure security risk, technology leakage risk, and "economic coercion" risk. It proposes three priorities based on enhancing its own strength, strengthening defensiveness and protection, and building an exclusive international cooperation network, and proposes eleven specific actions to implement the three priorities. At the beginning of 2024, the European Commission published another "European Economic Security Package", which includes five new measures: revising the foreign direct investment (FDI) screening regulations, requiring all EU countries to screen foreign investments; regulating foreign investment by requiring member states to examine the security risks that private companies may pose when investing abroad; harmonizing export controls on dual-use technologies affecting EU security; enhancing support for R&D of technologies with dual-use potential; and strengthening research security at EU and national levels.

1.1.3     Relevant Provisions on Trade Administration

Hungary implements the unified EU trade policy, allowing goods and services to be freely imported and exported within the EU. According to the newly revised 2023 Trade Decree, the import and export of equipment (such as knives and scabbards, daggers, bows and arrows, self-defense spray, etc.), radioactive substances, explosives and pyrotechnic products, bulletproof vests, gas masks, security paper, printing paper, dual-use products, etc., that pose a threat to public safety must obtain a license from the Budapest Főváros Kormányhivatala. The National Institute of Pharmacy and Nutrition (OGYÉI) is responsible for approving the import and export of narcotic drugs and psychotropic substances.

In matters related to public order, public morality, public safety, the protection of human, animal and plant life and health, and the safeguarding of national property, the Hungarian Government may adopt corresponding measures without being constrained by the EU internal market and import regulations.

1.1.4     Inspection and Quarantine of Imported and Exported Commodities

In accordance with the EU Common Agricultural Policy and other regulatory requirements, Hungary conducts import quarantines on food, animal, and plant products. Products from third countries (including Hungary) may only be introduced into the EU if they comply with animal health, plant health, and food safety regulations. Hungary requires import documentation for animal and plant products, food, and feed to be completed and submitted using the European Commission's online system, TRACES (Trade Control and Expert System). Laboratories in Hungary providing inspection and quarantine services can be found on the website of the National Accreditation Authority of Hungary (NAH): https://nah.gov.hu/hu/kategoriak/.

The Food Chain Regulation Department of the Ministry of Agriculture of Hungary is responsible for international trade activities in animal health, animal protection, plant health, plant protection, plant products, ragweed issues, and organic agriculture. Additionally, it conducts inspection and certification tasks in the fields of vegetables and fruits, feed hygiene, feed safety and quality, food hygiene, food safety, and alcohol certification, among others. For details, see: https://elelmiszerlanc.kormany.hu/allamtitkarsag-szervezete.

The National Food Chain Safety Office of Hungary (nébih) is responsible for supervising and protecting food safety in Hungary. The import procedures and inspection and quarantine requirements for animal and plant products, food, and feed can be found on the official website: https://portal.nebih.gov.hu/. For information on using the TRACE system, see: https://portal.nebih.gov.hu/traces.

[Plants] Hungary complies with EU laws and regulations regarding plant import inspection and quarantine. For specific requirements and product lists, please refer to EU Regulation 2019/2072.⁷ Certificates are not required for consignments that are not subject to phytosanitary regulations, such as seeds of cereal crops not intended for sowing and processed plant products (e.g., frozen, dried, canned, salted, or otherwise preserved dried fruits, as well as other plant parts intended for consumption). A limited quantity of fruits, vegetables, eggs, egg products, and honey, fish, and fish products may be brought into the EU from non-EU countries. Depending on the product, a phytosanitary (health) certificate or a weight limit may be required. For details, please refer to requirement⁸.

[Animals] The EU strictly controls the import of animal products. The EU (including Hungary) prohibits the import of any meat and dairy products from third countries, and passengers are prohibited from carrying such products in their luggage. The ban is not related to quantity; even the smallest amount of animal products intended for personal consumption will be confiscated⁹. Bread, cakes, biscuits, infant formula, and other special medical foods may be exempted provided they comply with EU requirements.

[Food] Food imported from a third country outside the EU must be clearly matched, identifiable, and traceable with the relevant commercial documents. Additional documents required for imported food are determined by the country of origin and the composition of the product. According to Hungarian law, mandatory laboratory testing of imported food is not required prior to distribution. However, products from certain third countries are subject to border inspections. Food products imported from third countries must be declared at the first storage location in Hungary, and records of received consignments must be maintained. In Hungary, food intended for public consumption must comply with all applicable EU and Hungarian food legislation. Food products marketed in Hungary must bear labels in the Hungarian language. Decree 80/2024 was published in the Hungary Official Gazette on April 11, 2024, establishing regulations for certain import measures regarding food products (for more details, please refer to: https://magyarkozlony.hu/dokumentumok/f1e57f12b430a8d1c16315b259de4dfed094dccd/megtekintes).

1.1.5     Customs Administration Rules and Regulations

The competent customs authority in Hungary is the National Tax and Customs Administration of Hungary (NTCA). Hungary enforces EU customs laws and regulations, including the EU Tariff Standards Act, Customs Statistics System, EU tariff rates, and Customs Exemption Decree. Once customs clearance has been completed in any Member State of the EU, goods entering Hungary are exempt from customs duties.

[Customs Broker] In accordance with Chapter 5 of the EU Customs Tariff, investors and operators in Hungary may engage a professional customs broker to handle customs procedures.

[Certificate of Origin of Goods] There are two types of certificates of origin for goods exported from Hungary. The first type, applicable under non-preferential rules of origin, is primarily used to circumvent certain restrictive regulations when exporting products to third countries. This certificate of origin is issued by the regional Chambers of Commerce and Industry in Hungary. Detailed regulations are available on the websites of the Hungarian Chamber of Commerce and Industry (HCCI) and the respective regional Chambers of Commerce and Industry. Second, the certificate of origin under the preferential rules of origin is primarily utilized to enable products exported to third countries to benefit from preferential treatment. For specific details, please consult the bilateral agreements between Hungary and the respective third countries. This certificate of origin is issued by the NTCA.

Introduction to Certificate of Origin on the website of the HCCI:

https://mkik.hu/szarmazasi-bizonyitvany-hitelesitese

Introduction to Certificate of Origin on the website of the Budapest Chamber of Commerce and Industry:

https://www.bkik.hu/szarmazasi-bizonyitvany-szamla-egyeb-okmany-hitelesitese

Introduction to preferential rules of origin on the website of Hungary Customs:

https://nav.gov.hu/vam/szarmazas/EK_szabalyrendszer.

[Certification and Inspection] Information on Hungary's accredited certification bodies and testing laboratories, certification processes, fees, etc., can be found on the website of the NAH: https://nah.gov.hu/hu/oldal/mi-az-akkreditalas/.

[Customs Duties] As of July 2021, the EU has imposed value-added tax (VAT) on all parcels entering EU customs territory. The European Commission published the proposal titled "EU Customs Reform: A data-driven vision for a simpler, smarter and safer Customs Union" in May 2023, which aims to eliminate the tariff exemption for imported goods valued below EUR 150. It is currently seeking to expedite the adoption of this measure.

EU tariff rate inquiry:

https://ec.europa.eu/taxation_customs/dds2/taric/taric_consultation.jsp? Lang=EN.

Table 5-1 Tariff Rates of Major Commodities Imposed by Hungarian Customs as of July 2024

(Unit: %)

Commodity Type	Type	Customs Code	Tariff Rate
Textiles and garments	Silk	50072031	7.5
	Cotton textiles	52091100	8.0
		52111100	8.0
	Carpets or tapestries	57011010	8.0
	Shoes	64035119	8.0
		64041100	16.9
Industrial electronics	Refrigerator	84182110	1.5
	Washing machine	84501111	3.0
	Sewing machine	84521011	5.7
	Televisions	85281252	14.0
	Cameras	90071100	3.7
	Artificial flowers	67021000	4.7
	Glassware	70109043	5.0
	LCD display panel	90138030	0.0
	Other parts of communication equipment listed under Heading 8517	85177090	0.0
Gifts	Ceramics	69141000	5.0
		69149010	3.0
	Toys	95021010	4.7
	Furniture	94031059	0.0
		94033019	0.0
		94035000	0.0
		94038000	5.6
Consumer goods	Lighting fixtures	94051029	4.7
		94051050	3.7
	Mattress	94042910	3.7
	Luggage and bags	42022100	3.0
		42022210	9.7
		42029110	3.0

Source: Directorate-General for Taxation and Customs Union of the European Commission