RESTRICTEDWORLD TRADE
ORGANIZATIONWT/TPR/S/40/Corr.1*
18 June 1998
(98-2476)
Trade Policy Review Body
TRADE POLICY REVIEW
HUNGARY
Report by the Secretariat
Corrigendum
Please note the following corrections to be made to document WT/TPR/S/40:
Summary Observations
Paragraph 9, line 3-4 should read "reorientation of its trade towards the EU, EFTA and
CEFTA partners,"
Paragraph 13, lines 13-16 should read "erga omnes basis.  Products still subject to the quota,
and hence retaining additional protection, include new and used automobiles, and footwear;  importsof textiles and clothing from WTO Members ha ve been liberalized as from 1 January 1998."
Paragraph 14, lines 3-4:  delete the words "exemptions or".Paragraph 15, lines 13-17 should read "Certain other investment incentives have been
conditional upon the scale of investment and production or exports:  for example, until end-1997,
corporate tax was halved for companies investing Ft 1 billion or more and increasing exports by atleast 25%."
Chapter I
Paragraph 20, last line:  delete "largely".Paragraph 23, line 8:  replace "foreign owned" by "having foreign participation".Paragraph 25, final sentence should read "Some other investment incentives have been
conditional upon export performance;  for example, until 31 December 1997, corporate tax washalved for companies investing Ft 1 billion and increasing exports by at least 25 per cent.  Since
1 January 1998 this measure has been modified to take account of increase in sales, rather than
exports."
Paragraph 27:  add at end "as a consequence of the price formulae built into concessional
contracts for privatized utilities".
                                                     
* English only.WT/TPR/S/40/Corr.1
Page 2
Chapter II
Paragraph 12, last line:  delete the phrase "all tariff and non-tariff".
Paragraph 13, lines 3-4:  replace "contradict commitments to multilateralism" by "lead to
trade diversion".
Table II.1 please note revised sections as below:
Table II.1
Selected notifications to the WTO, 31 May 1998
WTO Agreement Document Main content
Agreement on Agriculture
(Article 18.2) WTO doc.G/AG/N/HUN/1 of
28 April 1995, G/AG/N/HUN/5 of
7 August 1996, G/AG/N/HUN/8 of28 May 1997, and G/AG/N/HUN/13 of 23
April 1998Administration of tariff quotas
(Table MA:1)
WTO doc.G/AG/N/HUN/12 of 6 April 1998 Imports under tariff quotas (Table MA:2)
during calendar year 1996
(Article 5.7) WTO doc.G/AG/N/HUN/1 of
2 February 1998Special safeguard provision (Table MA:5)
Agreement on Trade-Related Aspects of
Intellectual Property
(Article 63.2) WTO doc.IP/N/1/HUN/1/Rev.2 of
17 April 1997TRIPS-related legislation
Agreement on Import Licensing
(Articles 1.4(a) and 8.2(b) WTO doc.G/LIC/N/1/HUN/2 of
13 February 1998Laws and regulations concerning import
licensing procedures
(Article 7.3) WTO doc.G/LIC/N/1/HUN/2 of
19 February 1998Replies to the questionnaire on import
licensing procedures
Paragraph 15, line 5:  delete "some".
Paragraph 17:  replace first sentence by "Hungary's notifications to the WTO are specified in
Table II.1".
Paragraph 24, second-last line:  replace "2% administration fee" by "2% customs clearance
fee".
Paragraph 34, line 3:  delete "except for agricultural products".Paragraph 40, second-last line:  delete "an officially registered company in".
Paragraph 46, line 2:  replace "Ft 1 million" by "Ft 3 million".
Paragraph 46, line 4:  replace "Ft 10 million" by "Ft 20 million".Paragraph 52, line 5:  delete "some of".Paragraph 52, line 6:  delete "although not retroactively".WT/TPR/S/40/Corr.1
Page 3
Chapter III
Paragraph 1, line 5:  replace "notably" by "as well as".
Paragraph 4, line 1:  insert "technical" before "regulations".
Paragraph 4, lines 9-11:  replace sentence by "However, as noted in Chapter III(2)(iii)(b),
although the incidence of piracy has been declining, it is too soon to fully judge the effectiveness of
the new legislation in combatting it."
Paragraph 5, line 10:  add footnote after "of goods and services":  "A price preference of 10%
is granted in government procurement to companies registered in Hungary".
Paragraph 9, line 2:  change sentence to "Hungary is a member of the Common Transit and
Single Administrative Document Conventions ….".
Paragraph 10, line 4:  replace sentence by "There are no special courts dealing with customs
matters."
Footnote 4, line 3:  replace "no such" with "lower".
Table III.1:  in the "U.R." column, replace line 1 by "95.7".
Paragraph 15, line 3:  delete "largely".Paragraph 19, line 5-6:  delete "thereby potentially impeding the industrialization of
developing countries exporting to Hungary".
Paragraph 29, line 2:  replace the sentence by "On 1 January 1995, the 1% licensing fee was
abolished;  in 1 January 1996, the 3% statistical fee and the 2% customs clearance fee were reduced
each to 1%".
Paragraph 35, line 4:  replace "produced within Hungary" by "of Hungarian manufacture".Paragraph 36, line 6:  delete "clothing and footwear".Paragraph 37:  delete last sentence.
Paragraph 39, footnote 22:  add "The Hungaria n authorities note, however, that the global
quota is usually underutilized and that there is no grey market for import licences".
Paragraph 44, line 6:  replace "it is not the practice of" by "the law does not permit".
Paragraph 45, line 1:  delete "which is base d on paragraph 5 of its Protocol of Accession to
the GATT".
Tables III.7 and III.8:  please see attached revisions.WT/TPR/S/40/Corr.1
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Table III.7
Global import quota on consumer goods, 1994-97(US$ million, unless otherwise specified)
Product groups Abolished 1994 1995 1996 1997 1998
(1
st half)
Household detergent 18 25 35 45 24.8
Footwear made of leather and leather substitutes 46.5 65 70 77 42.4
Furniture 1.1.92 n.a. n.a. n.a. n.a. n.a.
Underwear 1.1.95 40 n.a. n.a. n.a. n.a.
Outerwear 66 94 104 114.4 11.0a
  Second-hand clothing 19.5 27 28.8 31.6 n.a.
  Other clothing and ready-made clothing 46.5 65 71 78 6.6a
  Haberdashery products 12 16.6 17.2 22.6 n.a.
Textile piece-goods 30 43 47.2 52 4.7a
Other industrial products 90 126 133.1 146.4 80.5
Jewellery, precious metal objects 24 33 34.2 37.6 20.7
New cars ('000 units) 51 80.6 83.8 89.7 34.1
New caravans ('000 units) 1.5b0.2 0.2 0.2 0.1
Used cars and caravans ('000 units) 45c52.8 54.8 58.6 31.4
Canned products 1.1.95 16 n.a. n.a. n.a. n.a.
Bakery products 1.1.95 4.5 n.a. n.a. n.a. n.a.
Confectionery products 1.1.95 25 n.a. n.a. n.a. n.a.
Beverages 1.1.95 33 n.a. n.a. n.a. n.a.
Dairy products 1.1.95 37.5 n.a. n.a. n.a. n.a.
Citrus fruit 1.1.95 48 n.a. n.a. n.a. n.a.
Tobacco products 1.1.95 4 n.a. n.a. n.a. n.a.
Fish, tinned fish 17 22.6 22.6 24.8 13.6
Total 467.0 517.2 563.1 629.4 269.8
n.a. Not applicable
a Applicable to non-WTO Members only.  Abolished for WTO Members since 1.1.98
b Used and new caravans together.
c Used cars only.
Source: Hungarian authorities.WT/TPR/S/40/Corr.1
Page 5
Table III.8
Share of selected trading partners in global import quota on consumer goods (1st half 1998)
(US$ million, unless otherwise specified)
Share of
individual
value limits Product groupsTotal
value
ceilingEUCzech
Rep.Slovakia Poland Romania Iceland Norway
%U S $
Household detergent 24.8 8.8 3.3 0.22 0.27 0.05 24,800
Footwear, leather 42.4 24.2 1.04 0.6 1.1 0.1 42,400
Outerwear 11.0a11,000
Outer clothing &
ready-made clothing
products6.6a5 40,000
Haberdashery - 5
Textile piece-goods 4.7 5 40,000
  of which carpets 1.5 10,000
Other industrial
products80.5 44.2 1.5 0.88 2.42 0.1 5
Jewellery, precious
metal objects20.7 8.69 0.22 5
New cars ('000 units) 34.1 22.6 1.4 0.1 1.5 0.18 32
pieces
New caravans ('000units)0.1
Used cars and
caravans ('000 units)31.4 16.5 31
pieces
Fish and tinned fish 13.6 1.1 0.05 0.61 0.61 50,000
a Applicable to non-WTO Members only.
Source: Hungarian authorities.
Paragraph 66, line 1:  replace the first sentence by "Law II of 1988 on Plant Protection and
Law XCI of 1995 on Animal Health stipulate sanitary and phytosanitary import regulations".
Paragraph 69, line 5:  replace "Commercial Code" with "Company Law".
Paragraph 70, lines 9-10:  delete "a foreign company or by a Hungarian".Box III.2:  replace "507,712" by 519".Paragraph 91, line 3:  replace "export" by "production".Paragraph 91, line 8:  add footnote after "are Hungarians" reading "WTO document
G/SCM/N/3/HUNG/Suppl.1, section 5.4.2.(iii)(c)".  Delete last sentence of paragraph.
Paragraph 96, line 1:  replace "domestic-based" by "all".Paragraph 96, line 2:  delete the two words "-owned".WT/TPR/S/40/Corr.1
Page 6
Paragraph 100, line 5:  replace "were still held by the State" by "still involved some State
ownership".
Paragraph 113, lines 8-9:  delete sentence beginning "All enterprises".
Paragraph 114:  place footnote 67 after "debt forgiveness" in line 9.  Footnote should read
"IMF (1997), page 11;  EBRD (1997), page 81".
Paragraph 120:  delete last sentence.
Chapter IV
Paragraph 10, line 1:  delete "from various agricultural funds".Paragraph 10, lines 10-11:  delete "owing to other measures, notably high import duties and
export subsidies".
Paragraph 16, last line:  replace ", which involves licensing" by "for companies to trade in
such products".
Paragraph 18, line 8:  delete "and automotive components".
Paragraph 22, lines 5-6:  replace "non-tariff measures are currently less pervasive in this than
in several other sectors" by "no quantitative restrictions remain, except on fish and preserved fish".
Paragraph 26, line 3:  add after (Tables III.7 and 8) "Since 1 January 1998, the textile quotas
no longer apply to imports from WTO members".
Paragraph 26, line 5:  replace "liberalization" by "tariff reduction".Paragraph 28, lines 4-6:  delete sentence "Production…full" and footnote 21.Paragraph 29, line 2:  insert "mainly" after "cars".
Paragraph 34, line 2:  replace "the Government" by "APV Rt.".
Paragraph 38, last two lines:  replace "including … branching" by "cross-border branching
has been permitted since 1 January 1998".
Paragraph 57, line ":  insert after "insurance services" ", except for reinsurance and
retrocession".
Paragraph 59, lines 6-7:  delete "a golden share of".
Paragraph 63, first line:  delete whole line.
Paragraph 70, line 6:  delete "state owned".Paragraph 72, line 10:  delete " a golden share of".
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