WORLD TRADE G/LIC/N/3/HUN/1
13October 1996
ORGANIZATION(96-4418)
Original: English Committee onImport Licensing
REPLIES TOQUESTIONNAIRE ONIMPORT LICENSING PROCEDURES
Notification under Article 7.3ofthe
Agreement onImport Licensing Procedures
HUNGARY
Thefollowingnotification,dated8October1996,hasbeenreceivedfromthePermanentMission
ofHungary.
_________________
Outline ofSystem
1. Hungary maintains asystem ofimport licensing regulated bythedecrees asfollows:
(a) theDecree No.176/1995 (XII. 27)oftheGovernment onmodifying theDecree No.
112/1990 (XII. 23)ofGovernment ontheExports andImports ofGoods, Services
andRights Representing Material Value;
(b) theDecrees No.75/1995 (XII. 27)and29/1996 (VI.7)oftheMinister ofIndustry
andTrade onPublishing theImport Global Quota ofConsumer Goods fortheFirst
andSecond HalfYears of1996;
(c) theDecree No.112/1990 (XII. 23)oftheGovernment ontheExport andImports of
Goods, Services andRights Representing Material Value; and
(d) theDecree No.6/1990 (XII. 29)oftheMinister ofInternational Economic Relations
ontheenforcement oftheDecree No.112/1990 (XII.23)ofGovernment ontheExports
andImport ofGoods, Services andRights Representing Material Value.
TheAnnex No.1/boftheDecree asperparagraph (a)contains thelistofproducts subject
toimport licensing in1996, specified bycustoms tariffnumbers; itsAnnex No.1/ccontains theother
goods andbusiness transactions subject toimport licensing, notspecified bycustoms tariff numbers
inAnnex No.1/bitsAnnex No.2specifies theforeign trading activities thatcanbepursued withthe
special licence oftheMinistry ofIndustry andTrade.
Onthebasis ofsection 29ofActIIIof1974 onforeign trade, theGovernment Decree asper
paragraph (c)establishes thatnolicence oftheMinistry ofIndustry andTrade isrequired (forexports
and)forimports ofgoods, except those included intheDecree. (More than90%ofimports enters
Hungary freeofquantitative restrictions andimport licence).G/LIC/N/3/HUN/1
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Byvirtue oftheGovernment Decree asperparagraph (c)import licence mayberequired as
anexception onaccount ofnational security reasons, international obligations, discrimination against
Hungary orregulation oftradewithnon-market economy countries. TheGovernment Decree authorises
thecompetent Ministry toestablish half-year quota fortheimport ofgoods fordirect consumption
(global quota forconsumer goods). Value ceilings maybedetermined forvarious products within the
quota. TheMinistry mayestablish howmuch ofthevarious value ceilings maybeutilised byagiven
firm.
Indistributing thequota, theDecree oftheMinister ofIndustry andTrade asperparagraph (b)
differentiates between traditional importers andnewapplicants. (Atraditional importer: isonewho
attained ashare ofthequota in1995 andhascarried outactual imports pertaining hisshare; anew
applicant: isonewhohadnotbeenallocated ashare ofthequota in1995). Thetraditional importers
in1996 mayautomatically obtain licence(s) forimport ofgoods uptothevalue (expressed inUS$)
oftheirimports realised in1995. Annex 3oftheDecree establishes themaximum value anewapplicant
maybeallowed toaskfor.Incasethetotalvalue orthequantity ofapplications lodged bythetraditional
importers andnewapplicants together exceeds agiven ceiling, thenewapplicants 'share inthequota
shallbedistributedamongstthenewapplicantsproportionately.Forcountrieshavingfree-tradeagreement
withHungary, theDecree -inaccordance withtherelevant agreements -distributes special quota shares
within eachvalue ceiling.
Purpose andCoverage ofLicensing
2-5. TheHungarian import licensing system isanon-automatic one.
Theglobal quota forconsumer goods isintended torestrict thevalue orquantity ofimports.
Theissueofspecial licences required toconduct certain foreign trading activities isautomatic,
provided thattheconditions specified inlawaremet.
Thetotalvalue for1996oftheglobal quota forconsumer goods asestablished bytheDecrees
asperparagraph 1(b)is563million US$, plus154,660 pcsofcarsand200pcsofcaravans.
Thequota includes thefollowing product categories:
-household detergents
-footwear made ofleather andleather substitutes
-overwear
-second-hand clothing
-other clothing andready-made clothing products
-haberdashery products
-textile piece goods
-other industrial products
-jewellery, precious metal objects
-newcar
-caravan
-usedcar
-fish,tinned fish.
Thetextile andclothing products subject totheglobal quota forconsumer goods havebeen
notified according totheArticle 3.1oftheAgreement onTextile andClothing toTextile Monitoring
Body (Notification G/TMB/N/73 dated 28April 1995).G/LIC/N/3/HUN/1
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Theforeign trading activities whose conduct issubject tospecial licence, i.e.tothecapabilities
oftraders tocomply withthetechnical andother conditions determined inlawcover theproduct
categories asfollows:
-energy sources, fuelsandother crude oilderivatives;
-precious metal, articles made ofprecious metal, wastes containing precious metal;
-materials particularly hazardous onthebasis ofenvironment andhealth
considerations;
-pharmaceutical products;
-military engineering products, spare parts andfittings (belonging totheListof
Military Engineering Products) aswellasmilitary engineering services;
-small arms, gas-andalarm pistols, air-guns, ammunition, spare partsandfittings
exclusively forciviluseaswellasrequisites ofself-defence, different firing
(launching) devices anddevices endangering public safety.
TheHungarian import licensing system isinconformity withHungary 'srights andobligations
under theWTO.
Procedures
6. I-II. Allinformation ontheglobal quota forconsumer goods ispublished intheOfficial
Gazette oftheRepublic ofHungary andinOfficial Gazette oftheMinistry of
Industry andTrade.
Thelicences arevalid untiltheendofthecalendar year.
Forother details seeouranswer toreply 1.
III. Nolicences areallocated either partly oronlytodomestic producers oflikegoods.
Unused allocations arenotadded tothequota forasucceeding period.
IV. From thetimeofannouncing ofthequota there isa"grace" period of30days. After
the"grace" period hasexpired, oneweek isatthedisposal ofnewimporters tosubmit
theirapplications forlicence; thetraditional importers canapply forlicence without
time-limit.
V. Thelicences areissued orrefused within 15days.
VI. Theminimum timeremaining between thegranting oflicences andthedateofopening
oftheperiod ofimportation, according totheprovision oftheDecree oftheGovernment
112/1990 (XII. 23),is30days.
VII. TheMinistry ofIndustry andTrade istheonlyadministrative organ inconsideration
oflicence application.
VIII Seeouranswer toreply 1.
IX-X. Notapplicable.
XI. There arenoproducts forwhich licences areissued oncondition thatgoods should
beexported andnotsoldinthedomestic market.G/LIC/N/3/HUN/1
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7. (a) Theapplication foralicence mustbemade inadvance ofimportation, sotheimport
licence must beatthedisposal oftheapplicant bythetimeofcustoms clearance.
(b) No.
(c) There arenolimitations astotheperiod oftheyearduring which application forlicence
and/or importation maybemade, except theproducts subject totheglobal quota for
consumer goods forwhich application foralicence maybemade until28November,
atthelatest.
(d) Seeouranswer to6.VII.
8. Anapplication foralicence mayberefused:
-fornational security reasons; ifrequired byvirtue ofinternational treaties; if
circumstances aretaking place which severely endanger thebasic supplies forthe
population asaretort against countries discriminating Hungary;
-ifmisrepresentation occurs intheapplication;
-inabsence ofapprovals eventually required (e.g.nihilobstat issued bytheauthorities
fortheprotection ofconsumers);
-iftheapplicant actsincontravention oflegalprovisions.
Intheevent ofrefusal toissue alicence, theapplicants havearightofappeal.
Eligibility ofImporters toApply forLicence
9. (a) Yes.
(b) No.Seeouranswer topoint 1(special licence toconduct certain foreign trading
activities).
Documentational andOther Requirements forApplication forLicence
10.-11. Thesample form oftheapplication isincluded inAnnex 1totheDecree 6/1990 of
theMinistry ofInternational Economic Relations. According totheprovision ofparagraph 3.2of
theDecree112/1990oftheGovernmentallotherspecificlicences,ifrequired,mustbeputatthedisposal
ofthecompetent authorities. Byvirtue ofAnnex 2totheDecree, licences anddeclarations required
bystatutory provisions must beattached totheapplication.
12. From 1January 1995 theimport licensing feewasabolished.
13. No.
Conditions ofLicensing
14. Thelicence isvalid notmore than12months. TheMinistry maydetermine different validity
period. Thevalidity cannotbeextended, uponexpiry anewapplication foralicence should bemade.
15.No.G/LIC/N/3/HUN/1
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16.No.
17. (a) No.
(b) No.
Other Procedural Requirements
18. No
19. Foreign exchange isautomatically available forgoods tobeimported.