WORLD TRADE  
ORGANIZATION  G/SCM/N/123/EEC/Add.11 
26 August 2005 
 (05-3596) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
 
SUBSIDIES  
 
New and Full Notification Pursuant to Article XVI:1 of the GATT 1994  
and Article 25 of the Agreement on Subsidies and  
Countervailing Measures  
 
EUROPEAN COMMUNITIES 
 
Addendum  
 
  The following addendum to the notification of  the European Community relates to subsidy 
programmes of Hungary
. 
 
_______________ 
  G/SCM/N/123/EEC/Add.11 
Page 2  
 
 HUNGARY 2003  
 
TABLE OF  CONTENTS 
 
Page  
1. EXPORT ENHANCEMENT PROGRAMMES....................................................................9 1.1 Export enhancement programme  for agricultural products ...................................................9 
1.2 Export enhancement programme for apple harvested in1996................................................9 
1.2.1 Export enhancement programme for apple to be sold on the Russian market.......................9 
1.3 Export enhancement programme for live pig ......................................................................10 
1.4 Export enhancement programme for pot atoes for human consumption .........…………….11 
1.5 Intervention assistance of financing surplus stocks of dried onion......................................11 1.6 Assistance to the export of seasonal milk surplus................................................................11 
1.7 Assistance to the export of pork and processed pork-products............................................11 
1.8 Export enhancement programme  for rabbit for slaughter....................................................11 
1.9 Export enhancement programme for 500.00 0 tons of wheat for feeding purposes .............11 
1.10 Export enhancement programme for wheat ........................................................................11 
1.10.1 Export enhancement programme for wheat harvested in 1998............................................11 
1.10.2 Export enhancement programme for wheat in 2002............................................................11 1.10.3 Export enhancement programme for wheat harvested in 2003............................................11 
1.11 Export enhancement programme  for milling or EURO wheat ............................................12 
1.12 Export enhancement programme for table, regional and quality white  wine in barrels ......12 
1.113 Export enhancement programme for mushroom .................................................................12 1.14 Export enhancement programme for cer tain canned meat  and meat products ...................12 
1.15 Additional export assistan ce for certain duck meat .............................................................12 
1.16 Export enhancement programme for certain pork and processed pork products 
 of Szabolcs-Szatmár-Bereg, Borsod-Abaúj-Zemplén, Hajdú-Bihar, Jász-Nagykun  -Szolnok, Békés, Csongrád and Bács-Kiskun county..........................................................12 1.17 Export enhancement programme for surplus stocks of sugar ..............................................13 
1.18 Export enhancement programme for maize.........................................................................13 
1.19 Export enhancement programme for wine...........................................................................13 
1.20 Export enhancemen t for chicken meat.................................................................................14 
1.21 Export enhancement pr ogramme for pig meat.....................................................................14 
 2. PRICE-RELATED SUPPORT PROGRAMMES FOR CERTAIN   AGRICULTURAL PRODUCTS.........................................................................................15 
2.1 Support programmes for beef for slaughter .........................................................................15 
2.1.1 State purchase of beef for sl aughter at guaranteed price......................................................15 
2.1.2 Intervention support for the quality production of beef for slaughter..................................15  2.2 Support programmes for pig for slaughter...........................................................................17 2.2.1  State purchase of pig for slaughter at guaranteed price .......................................................17 
2.2.2  Intervention support for the quality production of pig for slaughter ...................................17 
2.2.3 Intervention support for pig for slaughter  of large weight originating from family 
 farms and private producers.................................................................................................18  
2.2.4 Assistance to the purchase of pi g for slaughter of large weight ..........................................18 
 
2.3 Support programme for maize for feeding purposes ...........................................................19 
2.3.1 State purchase of maize for feeding pur poses at guaranteed price harvested in 1998.........19 
2.3.2 State purchase of maize for feeding pur poses at guaranteed price harvested in 1999.........19 
2.3.3 State purchase of maize for feeding pur poses at guaranteed price harvested in 2000.........19 
2.3.4 State purchase of maize for feeding pur poses at guaranteed price harvested in 2001.........19  G/SCM/N/123/EEC/Add.11 
 Page 3 
 
 
 2.3.5 State purchase of maize for feeding pur poses at guaranteed price harvested in 2002.........19 
2.3.6 Intervention purchase and related assistance to storage of maize for feeding   purposes harvested in 2002..................................................................................................19  
 2.4 Support programmes for wheat for human consumption.....................................................20 
2.4.1 State purchase of wheat for human consumption harvested in 1998 at guaranteed price....20 
2.4.2 State purchase of wheat for human consumption harvested in 1998 at guaranteed price....20 2.4.3 Income support for certain producers thr ough intervention purchase of their wheat  
 harvested in 1998 ............................................................................................................. ....20 
2.4.4 State purchase of wheat for human consumption harvested in 2000 at guaranteed price....20 
2.4.5 State purchase of wheat for human consumption harvested in 2001 at guaranteed price....21 
2.4.6 State purchase of wheat for human consumption harvested in 2002. at guaranteed price...21  2.4.7 Intervention purchase and related assi stance to storage of wheat for human  
 consumption harvested in 2002 ...........................................................................................21 2.5 Support programmes for milk..............................................................................................22  
2.5.1 Regulation of the market for cow milk ................................................................................22 
2.5.2 Quality-linked support for cow milk....................................................................................22  
2.5.3 Assistance to the purch ase of qualified sheep milk .............................................................23 
2.5.4.1 Assistance to the purchase of  qualified goat milk in 2000...................................................24 
2.5.4.2 Assistance to the purchase of  qualified goat milk in 2002...................................................24 
2.5.4.3 Assistance to the purchase of  qualified goat milk in 2003...................................................24 
2.5.5 Guidance price for  cow milk and inte rvention price for butter and skimmed milk  
 powder ........................................................................................................................ .........25 
2.6 Support programmes for apple.............................................................................................26  
2.6.1 Intervention assistance to the processi ng of apple in bulk harvested in 1996......................26 
2.6.2 Intervention assistance to the processi ng of apple in bulk harvested in 1997......................26 
2.6.3  Intervention assistance to the purchase of  apple in bulk harvested in 1998 .......................26 
2.6.4 Interest subsidy on loans received fo r the purchase and storage of  extra and  
 1st class fresh apple harvested in 1998 ................................................................................26 2.6.5 Intervention assistance to the purchase of apple in bulk harvested in 1999 ........................26 
2.6.6 Support for cold storage of apple harvested in 2002 ...........................................................26 2.7 Support programmes for wine ............................................................................................27 
2.7.1 Intervention assistance for the distillatio n of wine produced in 1997 in order to  
 reduce stocks................................................................................................................. .......27 
2.7.2 Intervention assistance for the distillation of vintage wine of  1998 in order to   reduce stocks................................................................................................................. .......27 
2.7.3 Interest subsidy for the purchase of white  grapes produced in 1998 in certain regions ......27 
2.7.4 Intervention assistance for the distillation of vintage wine of 1999 in order to  
 reduce stocks................................................................................................................. .......27 
2.7.5 Intervention assistance for the distillation of vintage wine of 2001 in order   to reduce stocks.............................................................................................................. ......27 
2.7.6 Intervention assistance for the aid  for the production of grape must concentrate used for  
 the enrichment of wine of 2001 in order to reduce stocks ...................................................28 
2.8 Support programme for barley, rye, triticale harvested in 1998 ..........................................28 
2.8.1 Income support for certain producers th rough intervention purchase of their  
 barley, rye, triticale harvested in 1998.................................................................................28 2.9 Support programme for poultry ...........................................................................................28 2.9.1 Assistance to the production of  quality poultry for slaughter..............................................28 
2.10 Support programme for vegetables......................................................................................29 
2.10.1 Quality-linked support of tomato for industrial purposes....................................................29 2.10.2 Quality-linked supp ort for red pepper ...............................................................................29 
2.10.3 Quality-linked support for onion .......................................................................................3 0 
2.10.4.1 Guidance price and intervention pr ice of sugar and sugarbeet in 2001.............................30 G/SCM/N/123/EEC/Add.11 
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 2.10.4.2 Guidance and intervention price of suga r in 2003 and minimum price of sugarbeet........30 
 3-4 OTHER SUPPORT PROGRAMMES ..............................................................................31 3.1 Assistance to stock-breeding ............................................................................................31  
3.2 Assistance to fi shery activities ..........................................................................................3 2 
3.3 Assistance to agricu lture and forestry ...............................................................................33 
3.3.1 Assistance to the preservation or de velopment of biological bases and the  
 modernisation of related system of qualification...............................................................33 
3.3.1.1 Assistance to genetic development....................................................................................33  
3.3.1.2 Assistance to the purchase and changes of breeding animals and to the expansion  
 of their stocks ............................................................................................................... .....34 
3.3.2 Assistance to the utilisation of arable  lands in disadvantaged producing areas ................35 
3.3.3 Assistance to investment in, and de velopment of agricultural production and 
 food processing............................................................................................................... ...35 
3.3.4 Assistance to mending, cultivating and preserving the qualit y and the quantity  
 of forests .................................................................................................................... ........35 
3.4 Assistance to game husbandry...........................................................................................36 3.5. Assistance to the prot ection of arable land........................................................................37 
3.6 Assistance to the construction and the renovation of buildings ........................................38 
3.6.1 Assistance to the construction of buildin gs of "new type" co-operations, fishery  
 and forestry ................................................................................................................. ......38 
3.6.2 Assistance to technology investments in the food industry...............................................38 
3.6.3 Assistance to the modernisation and construction of buildings of forestry,  game  husbandry, fishery and agriculture, assistan ce to the investments of horticulture.............39 
3.7 Assistance to the establishment of vineyards and orchards ..............................................40 3.8 Regional assistan ce programmes.......................................................................................41 
3.8.1 Assistance to the development of disadvantaged regions .................................................41 
3.8.2.  Assistance to the inhabitants of se ttlements with less than 3 000 inhabitants  
 living in disadvantaged regions .........................................................................................42 3.8.3 Additional assistance to certain counties in disadvantaged areas......................................42 3.8.4 Assistance to the development of agro-tourism.................................................................43 3.9  Assistance to foster co-operative integration.....................................................................43 
3.9.1 Assistance to encourage the establishm ent of co-operatives in the field of 
 production, purchase and marketing..................................................................................43 3.9.2 Assistance to the functioning of co-operatives..................................................................43 3.10  Assistance to the purchase of individual shares of members of co-operatives..................45 3.11 Assistance to the realisation of cer tain goals of the agricultural policy ............................45 
3.11.1 Assistance to the realisation of cer tain goals of the agricultural policy ............................45 
3.11.2 Assistance to agricultural information network.................................................................45 3.11.3 Assistance to  foreign training programmes ......................................................................45 3.11.4 Assistance to agricultural research a nd development of non-profit organisations ............46 
3.11.5 Assistance to purchasing state-of-the-a rt technical equipment for institution  
 engaged in agricultural r esearch and development............................................................47 
3.12 Assistance to common marketing in agriculture ...............................................................48 
3.13 Agricultural research programmes ....................................................................................48 3.14  Assistance to the joint establishment of wholesale markets by producers and to  
 investment of joint sales organisations of producers.........................................................49  
4.1 Finance subsidies.......................................................................................................... .....49 
4.1.1 Assistance given to furt her agricultural activities .............................................................49 
4.1.2 Governme nt guarantee..................................................................................................... ..49 
4.1.3 Assistance to the purchase of agricultural machinery .......................................................49 
4.1.4 Assistance to the leasing of agricultural machinery ..........................................................50  G/SCM/N/123/EEC/Add.11 
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 4.1.5 Assistance to members of co-operatives in acquiring loans..............................................51 
4.1.6 Interest subsidy for bank loans for maximum one year, and for more than   one year, government guarantee........................................................................................51 4.1.7 Interest subsidy for purchasing grai n seed with quality assurance necessary for  
 the 1999 sowing............................................................................................................... ..52 
4.1.8 Government guarantee for HUF 16 billi on loan given to small companies in  
 the canning sector ............................................................................................................ ..52 
4.1.9 Assistance to the renewal of agricultural machinery.........................................................52 
4.1.10 Loan programme for agricultural development.................................................................52 4.1.11 Loan programmes authorised with government guarantee in 2001 and  
 assistance to investment in agricultural logistics in 2001-2002 .......................................54 
4.1.12 Assistance to the settlement of lo ans granted for less than one year.................................55 
4.1.13 Interest rate subsidy for the fa rm development of individual farms .................................55 
4.2 Assistance to the production of  certain agricultural products............................................56 
4.3 Assistance to the restructur ing of the agricultural sector...................................................56 
4.4 Assistance to soil melioration and to irrigation investment...............................................56 
4.5  Assistance for planting and restructuring forests and afforestation...................................57 4.6  Payments for relief from environmental degradation of forests  ......................................58 4.7 Refund of the consumption tax on diesel fuel ...................................................................59 4.8 Assistance to the particip ation in insurance schemes ........................................................59 
4.9 Payments for relief from natural disasters.........................................................................60 
4.9.1  Payments for relief from natural disast ers affecting plant cultivation in 1995..................60 
4.9.2  Payments for relie f from fireblight disease .......................................................................60 
4.9.3  Payments for relief from natural disast ers affecting plant cultivation in 1997..................60 
4.9.4 Payments from relief from natural disast ers not covered by insurance policies................61 
4.9.5 Assistance to provide relief from the dama ge caused by the extraordinary weather  
 conditions in June  and July 1999.......................................................................................61 
4.9.6 Assistance to provide relief from the dama ge caused by flood and internal water  
 occurred in 1999.............................................................................................................. ..61 
4.9.7 Assistance to the intervention of unharvested sugar beet..................................................61 4.9.8 Assistance to moderate the damage caus ed by flood and internal water in 2000..............61 
4.9.9 Assistance to land cultivation provided  for the producers who incurred damage  
 due to the drought in 2000.................................................................................................61 
4.9.10 Assistance to provide relief from the damage caused by flood and internal  
 water in Szabolcs-Szatmár-Bereg county and Bereg region in 2001 ................................61 
4.9.11 Assistance to provide relief from the da mage caused by frost to vineyards and  
 orchards and orchards that occurred in  winter 2001 and in spring of 2002.......................61 
4.9.12 Assistance to provide relief from the da mage caused by the storm occurred in  
 9. August 2002................................................................................................................ ...62 
4.10 Assistance to the organisation of wine-growing communities ..........................................63 4.11 Assistance to the utilisation of advisory and extension services .......................................63 4.12 Assistance to the "Bors od-Abaúj-Zemplén" region...........................................................64 
4.13  Assistance to the maintenance of recreational and park woods.........................................64 
4.14  Assistance to tobacco ................................................................................................... ....65 
4.15 Assistance to potatoes ................................................................................................... ....66 
4.16 Assistance to stabilise the egg market ...............................................................................67 4.17 Intervention support for quality  production of game birds................................................68 
4.18 Assistance to beekeepers .................................................................................................. .68 
4.19 Assistance to the establishment of e nvironmentally friendly crop structure .......................68 
4.20 Assistance to the transition to organic production (and establishment of   agro-environmental regions)................................................................................................68 4.21 Assistance to stabilisa tion of the cereal market ...................................................................68 
 G/SCM/N/123/EEC/Add.11 
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 4.22 Intervention assistance to producers of wheat for feeding purposes for selling  
 their crop.................................................................................................................... ..........68 
4.23 Assistance to the maintenance and de velopment of the statistical data-bases  
 of producers’ councils........................................................................................................ ..68 
4.24 Assistance to the improvement of competitiveness .............................................................69 
4.25 Assistance to the reduction of costs rela ting to the rental of agricultural land ....................69 
4.26 Assistance to socially disadva ntaged agricultural communities ..........................................69 
4.27 Assistance to the construction a nd modernisation of rural roads.........................................70 
4.28 Assistance to the ser vice of field wardens ...........................................................................70 
4.29 Assistance to young farmers (and to the em ployment of young agricultural experts).........71 
4.30 Assistance to agricultural employment................................................................................72 
4.31 Assistance to the school milk programme ...........................................................................72 4.32 Assistance to the purchasing of the require d amount of the maize for feeding purposes ....72 
4.33.1 Additional assistance to the storage of maize harvested in 1998 for feeding purposes  
 in public warehouses.......................................................................................................... ..72 
4.33.2 Assistance to the storage of mai ze for feeding purposes harvested in 1999  
 in public warehouses.......................................................................................................... ..73 
4.33.3 Assistance to the storage of maize fo r feeding purposes harvested in 2001 in public 
 warehouses.................................................................................................................... .......73 
4.33.4 Assistance to the storage of mai ze for feeding purposes harvested in 2002  
 in public warehouses.......................................................................................................... ..74 
4.34 Wheat exchange transaction ................................................................................................ 74 
4.35  Assistance to the purchase of wheat seed for the 1998 autumn sowing .............................74 4.36 Interest subsidy to loans received for the purchase of apple in bulk harvested in  
 1997 for processing purposes...............................................................................................75 4.37 Interest subsidy on loans received for th e purchase of apple in bulk harvested in 1998 .....75 
4.38 Intervention assistance to the selling of wheat for feeding purposes...................................75 
4.39 Market intervention re lated to duck production ..................................................................75 
4.40  Quality-linked support to the production of sugar beet .......................................................75 
4.41 Emergency income support to certain producers of cereals.................................................76 
4.42 Assistance to reduce certain san itary and phytosanitary costs.............................................76 
4.43 Assistance to the pr oduction of sowing seed .......................................................................77 
4.44 Assistance to the purchase of the required amount of cereals for feeding and of  
 wheat for milling purposes...................................................................................................7 8 
4.45.1 Assistance to the storage in public  warehouse of wheat harvested in 1998.........................78 
4.45.2 Assistance to the storage in public  warehouse of wheat harvested in 2001.........................78 
4.45.3 Assistance to the storage in public  warehouse of wheat harvested in 2002.........................79 
4.46 Assistance to introduce the HACCP system of quality management ..................................80 
4.47 Intervention support to maintain the EU  approved level of hygiene of pig and  
 cattle sla ughterhouses ........................................................................................................ ..81 
4.48 Assistance to organisations produc ing and selling fruit and vegetables ..............................81 
4.49 Assistance to research and to  development of co-operatives ..............................................81 
4.50 Assistance to programmes of agricultu ral structure and rural development .......................81 
4.51 Assistance to technical development ...................................................................................81 
4.52 Assistance to genetic development ......................................................................................81 4.53 Assistance to plant protection against the damage caused by non-indigenous disease .......81 
4.54 Assistance to regional development.....................................................................................82 4.54.1 Assistance to terr itorial development................................................................................... 82 
4.54.2 Assistance to rural development ......................................................................................... .82 
4.54.3 Assistance to the deve lopment of rural areas.......................................................................82 
4.54.4 Assistance to the promotion of rural areas...........................................................................83 4.55 Payments for relief from dama ge caused by wild animals .................................................84 
4.56 Assistance to the mark et for pig for slaughter .....................................................................85  G/SCM/N/123/EEC/Add.11 
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 4.57 Assistance to the storage in public ware house of barley, rye and triticale harvested  
 in 1998 ....................................................................................................................... ..........85 
4.58  Area-based payment for crop production.............................................................................85 4.59 Assistance to the quality control of certain foods................................................................86 4.60 Assistance to the testing of ag ricultural machines and technology......................................87 
4.61 Assistance to the trade of products or iginating from the ecological fishing of  
 silver carp in Lake Balaton ..................................................................................................8 8 
4.62 Quality-linked support to the production of game meat ......................................................89 
4.63 Assistance to on-farm education..........................................................................................9 0 
4.64.1 Assistance to the storage in public  warehouse of wheat harvested in 1999.........................91 
4.65 Assistance to agricultural research institutes with research and development activities .....91 
4.66 Assistance to establish faci lities of inland waterways .........................................................91 
4.67 Quality-linked support for maize for human consumption..................................................92 
4.68 Assistance to maintain the qua lity of processed pork and beef ...........................................93 
4.69 Assistance to the production of apple in bulk delivered for processing to food  
 industry in 2002 .............................................................................................................. .....93 
4.70 Assistance to the implementation of the National Agricultural Environment   Protection Programme .........................................................................................................9 4 
4.71 Additional assistance for family farms ................................................................................96 
4.72 Quality-linked support of to mato for industrial purposes....................................................96 
4.73 Quality-linked supp ort for red pepper..................................................................................97 
4.74 Quality-linked support for onion .........................................................................................9 7 
4.75 Quality-linked support for pea............................................................................................ .98 
4.76 Quality-linked support for cucumber...................................................................................98 4.77 Quality-linked support for fruits ......................................................................................... .99 
4.77.1 Quality-linked support fo r cherry and sour cherry...............................................................99 
4.77.2 Quality-linked support for raspberry .................................................................................100  
4.78 Interest rate subsidy for bank loans received for storage in public warehouse of  
 canned and frozen products ...............................................................................................101 4.79 Assistance to the self restriction of cow milk production..................................................101 4.80 Assistance to private forestry............................................................................................ .102 
4.81 Assistance to the u tilisation of bio fuel..............................................................................103  
4.82 Special support for the quality production of beef for slaughter .......................................104 
4.83 Additional assistance to enhance the husbandry conditions ..............................................105 4.83.1 Assistance to poultry for slaughter ....................................................................................1 05 
4.83.2 Assistance to pig for slaughter......................................................................................... ..106 
4.84 The flat rate cost refund related to the intervention stocks of maize harvested  
 in 2002 ....................................................................................................................... ........106 
 5. CORPORATE TAX CONCESSIONS TO ASSIST STRUCTURAL ADJUSTMENT   AND ECONOMIC DEVELOPMENT (2003) ..................................................................107 5.1 Tax Concession for Companies with Foreign Participation ..............................................107 5.2 Tax Concession for Dividend Invested in Hungary by Foreign Shareholders...................108 
5.3 Tax Concession for Investments Exceeding 3 Billion HUF ..............................................109 
5.4 Tax Concession for Investme nts Exceeding 10 Billion HUF ............................................110 
5.5 Tax Concession to Promote Structural Adjustment ..........................................................111 5.6 Tax Concession for Bank Credits Financing Other Investments ......................................112 5.7 Tax Rate Relief fo r Foreign Investors ...............................................................................113 
5.8 Tax Concession Related to Investments ............................................................................114 
5.9 Tax Relief for Projects of Micro and Small Enterprises....................................................115 
5.10 Tax Concession for Small and Medium Sized Enterprises................................................116 5.11 Tax Relief for Development Reserve.................................................................................117 5.12 Tax Concession Related to  Development Projects ............................................................118 G/SCM/N/123/EEC/Add.11 
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 5.13 Tax Relief for Royalties.................................................................................................. ...119 
5.14 Tax Relief for Interest Incomes .........................................................................................12 0 
5.15 Tax Relief for Cap ital Market Profit..................................................................................121 
 6. TECHNICAL DEVELOPMENT FUND...........................................................................122 
 
7. BUDGETARY SCHEME EARMARKED FOR ECONOMIC DEVELOPMENT..........123  8. MINING CONVERSION PROGRAMME ......................................................................124  
9. CENTRAL ENVIRONMENT PROTECTION FUND .....................................................125 
 10. BUDGETARY SCHEME EARMARKED FOR THE DEVELOPMENT OF SMALL   AND MEDIUM SIZED ENTERPRISES..........................................................................126  G/SCM/N/123/EEC/Add.11 
 Page 9 
 
 
 1. EXPORT ENHANCEMENT PROGRAMMES 
 1.1 Export enhancement progra mme for agricultural products 
 
Phased out  
1.2 Export enhancement programme for apple harvested in 1996  
  
 Phased out 
 1.2.1  Export enhancement programme for a pple to be sold on the Russian market  
 1. Title of the subsidy programme  
Export enhancement programme for apple to be sold on the Russian market 
 
2. Period covered by the notification 
 
 2003 
 
3. Policy objective and/or purpose of the subsidy 
 
To help to maintain the equilibrium between  domestic supply and dema nd and to improve the 
competitiveness of the products in export markets.  
4. Background and authority for the subsidy 
 
Decree 22/2003. (III. 4.) FVM of the Minister for Agriculture and Regional Development  
 
5. Form of the subsidy 
 
 Grant 
 
6. To whom and how the subsidy is provided 
 
 Exporters 
 7. Subsidy per unit or the total amount  
HUF 24 per kg 
 Maximum amount HUF 120 million 
Maximum volume 5000 tons 
 
 
Payments under this programme amounted to HUF  3.37 million during the period covered by 
the notification.  
8. Duration of the subsidy 
  From 7 March to 31 May 2003. 
 G/SCM/N/123/EEC/Add.11 
Page 10  
 
 9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N. A. 
 
1.3 Export enhancement programme for live pig 
 
1.  Title of the subsidy programme 
 
 Export enhancement programme for live pig 
 
2. Period covered by the notification 
 
 2003 
 
3. Policy objective and/or purpose of the subsidy 
 
To help to maintain the equilibrium between  domestic supply and dema nd and to improve the 
competitiveness of the products in export markets. 
 
4. Background and authority for the subsidy 
 
Decree 78/2002 (VIII.23.) FVM-PM-KÜM of the Minister for Agriculture and Regional 
Development  
Decree 3/2003 (I.24.) FVM-PM-KüM of the Minister for Agriculture and Regional 
Development, the Minister for Finance and the Minister of Foreign Affairs 
Decree 33/2003 (III.31.) FVM-PM-KüM of the Minister for Agriculture and Regional 
Development, the Minister for Finance and the Minister of Foreign Affairs 
Decree 33/2003 (III.31.) FVM-PM-KüM of the Minister for Agriculture and Regional Development, the Minister for Finance and the Minister of Foreign Affairs 
 
5. Form of the subsidy  
 Grant  
 
6. To whom and how the subsidy is provided  
 Exporters  
 7. Subsidy per unit or the total amount  
 HUF 27- 90 per kg  
 
Payments under this programme amounted to HUF  742 million during the period covered by 
the notification. 
 
8. Duration of the subsidy  
 From 23 August 2002 to 30 December 2003 
 9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
  G/SCM/N/123/EEC/Add.11 
 Page 11 
 
 
 1.4  Export enhancement programme for potatoes for human consumption 
 
 Phased out 
 
1.5 Intervention assistance of financing surplus stocks of dried onion 
  Phased out 
 
1.6  Assistance to the export of seasonal milk surplus 
 
 Phased out   
 
1.7  Assistance to the export of  pork and processed pork-products 
 
 Phased out  1.8 Export enhancement progra mme for rabbit for slaughter 
 
 Phased out 
 
1.9 Export enhancement programme for 500. 000 tons of wheat for feeding purposes   
  Phased out 
 
1.10  Export enhancement programme for wheat 
 
1.10.1  Export enhancement programme for wheat harvested in 1998 
 
 Phased out  
 
1.10.2  Export enhancement programme for wheat harvested in 2002 
 
 Phased out 
 
1.10.3 Export enhancement programme for wheat harvested in 2003 
 1. Title of the subsidy programme 
 
Export enhancement programme for wheat harvested in 2003 
 
2. Period covered by the notification 
 
 2003 
 
3. Policy objective and/or purpose of the subsidy 
 
To help to maintain the equilibrium between  domestic supply and dema nd and to improve the 
competitiveness of the products in export markets. 
 
4. Background and authority for the subsidy 
 
Decree 86/2002. (IX.18.) FVM-PM-KüM of the Minister for Agriculture and Regional 
Development, the Minister for Finance and the Minister of Foreign Affairs G/SCM/N/123/EEC/Add.11 
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 Decree 41/2003. (IV.18.) FVM-PM-KüM of the Minister for Agriculture and Regional 
Development, the Minister for Finance and the Minister of Foreign Affairs  
5. Form of the subsidy 
 
 Grant 
 
6. To whom and how the subsidy is provided 
 
 Exporters 
 
7. Subsidy per unit or the total amount 
 
 HUF 2,000 per ton 
 
Payments under this programme amounted to HUF  296 million during the period covered by 
the notification.  
8. Duration of the subsidy 
 
 From 19 September 2002 to 9 July 2003 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 1.11 Export enhancement progra mme for milling or EURO wheat  
 
 Phased out 
 
1.12 Export enhancement programme fo r table, regional and quality white 
wine in barrels 
   
Phased out 
 
1.13 Export enhancement programme for mushroom   
 
 Phased out 
 
1.14 Export enhancement programme for certain canned meat  and meat products   
 
 Phased out 
  1. 15 Additional export assistance for certain duck meat   
 Phased out 
 
1.16 Export enhancement programme for cert ain pork and processed pork products of 
Szabolcs-Szatmár-Bereg, Borsod-Abaúj-Zemplé n, Hajdú-Bihar, Jász-Nagykun-Szolnok, 
Békés, Csongrád and Bács-Kiskun county 
 
 Phased out 
  G/SCM/N/123/EEC/Add.11 
 Page 13 
 
 
 1.17 Export enhancement programme for surplus stocks of sugar  
  
 Phased out 
 
1.18 Export enhancemen t programme for maize  
  Phased out  
 
1.19 Export enhancement programme for wine 
 
1.  Title of the subsidy programme 
 
Additional export assistance for wine  
 
2.   Period covered by the notification 
  
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
To improve the competitiveness of the products in export markets.  
4.   Background and authority for the subsidy 
 
Decree 84/2002 (IX.13) FVM-PM-KüM of the Minister for Agriculture and Regional 
Development, the Minister for Finance and the Minister of Foreign Affairs 
 
5.   Form of the subsidy 
 
 Grant 
 
6.   To whom and how the subsidy is provided 
 
 Exporters  
 
7.  Subsidy per unit or the total amount 
 
 HUF 28 per liter  
   
Payments under this programme amounted to HUF  537 million during the period covered by 
the notification.  
8. Duration of the subsidy 
 
 From 13 September 2002 
The duration of the subsidy has not been specified 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 G/SCM/N/123/EEC/Add.11 
Page 14  
 
 1.20   Export enhancement programme for chicken meat 
  1. Title of the subsidy programme  
Additional export assistance for chicken meat  
 
2. Period covered by the notification 
 
 2003 
 3. Policy objective and/or purpose of the subsidy  
To help to maintain the equilibrium between domestic supply and demand and to improve the 
competitiveness of the products in export markets.  4. Background and authority for the subsidy  
Decree 33/2002 (IV.20.) FVM-PM-KüM of the Minister For Agriculture and Regional 
Development .), the Minister for Finance and the Minister of Foreign Affairs 
Decree 97/2002 (X.17.) FVM-PM-KüM .) of the Minister for Agriculture and Regional 
Development, the Minister for Finance and the Minister of Foreign Affairs 
Decree 11/2003 (II.7.) .) FVM-PM-KüM of the Minister for Agriculture and Regional 
Development, the Minister for Finance and the Minister of Foreign Affairs 
Decree 93/2003 (VIII.14.) FVM of the Minister For Agriculture and Regional Development 
 
5. Form of the subsidys 
  Grant 
 
6. To whom and how the subsidy is provided 
 
Exporters 
   
7. Subsidy per unit or the total amount 
 
HUF 50-100 per kg 
  
Payments under this programme amounted to HUF  409 million during the period covered by 
the notification.  
8. Duration of the subsidy 
 
 From 20 April 2002 to 30 December 2003 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 1.21  Export enhancement programme for pig meat   1. Title of the subsidy programme  
Export enhancement programme for pig meat   G/SCM/N/123/EEC/Add.11 
 Page 15 
 
 
  
2. Period covered by the notification 
 
 2003 
 3. Policy objective and/or purpose of the subsidy  
To help to maintain the equilibrium between domestic supply and demand and to improve the 
competitiveness of the products in export markets.  4. Background and authority for the subsidy  
Decree 38/2003 (IV.11.) .) FVM-PM-KüM of the Minister for Agriculture and Regional 
Development, the Minister for Finance and the Minister of Foreign Affairs  5. Form of the subsidy  
 Grant 
 
6. To whom and how the subsidy is provided 
 
Exporters 
    
7. Subsidy per unit or the total amount 
HUF 150 per kg  
 
 Payments under this programme amounted to HUF 733 million during the period covered by 
the notification.  
8. Duration of the subsidy 
 
 From 11 April 2003 to 30 December 2003 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 
2.  PRICE-RELATED SUPPORT PROGRAMMES FOR CERTAIN AGRICULTURAL 
PRODUCTS 
 2.1 Support programmes for beef for slaughter 
2.1.1  State purchase of beef for slaughter at guaranteed price   
Phased out 
 
2.1.2  Intervention support for the quality production of beef for slaughter 
1.  Title of the subsidy programme 
 
Intervention support for the quality production of beef for slaughter  
 G/SCM/N/123/EEC/Add.11 
Page 16  
 
 2 Period covered by the notification 
 
 2003 
 
3. Policy objective and/or purpose of the subsidy 
 
To ensure the equilibrium between domestic supply and demand, to support agricultural 
income and encourage quality production.  
 
4. Background and authority for the subsidy 
 
Decree 111/2001.(XII.27.) FVM of the Minister for Agriculture and Regional Development  
 
5. Form of the subsidy  
 Grant 
 
6. To whom and how the subsidy is provided 
 
 Producers  
 
7. Subsidy per unit or the total amount 
 
The amount of support depended on the purchase price : 
  
Class Purchase price Available support  
Group 1 0-325 HUF 0-12 
Group 2 0-282 HUF 0-12 
 
The guidance price (i.e. the price which – in dicates the expected central point of the 
fluctuation in prices) evolve d during the years as follows: 
 
Definition: Cattle  Class Guidance price, HUF per kg 
1st group: male Group 1  330 
2nd group: male Group 2  287 
 
An intervention price was established based on th e guidance price.  When it is reached or 
exceeded by the market price, the instruments of  the agricultural market regime (selling of 
intervention stocks or other measures) are applied.   The maximum of the intervention price was HUF 
335 (1st group) and HUF 292 (2nd group).   
Payments under this programme amounted to HUF   8  million during the period covered by 
the notification.  
8. Duration of the subsidy 
 
From 1 January 2002 to 6 February 2003 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
  G/SCM/N/123/EEC/Add.11 
 Page 17 
 
 
 2.2 Support programmes for pig for slaughter 
2.2.1 State purchase of pig for slaughter at guaranteed price  
Phased out 
2.2.2 Intervention support for the quality production of pig for slaughter 
 
1. Title of the subsidy programme 
  
Intervention support for the quality production of pig for slaughter   
 
2.   Period covered by the notification 
 
 2003 
 
3.  Policy objective and/or purpose of the subsidy 
 
To ensure the equilibrium between domestic supply and demand, to support agricultural 
income and encourage quality production.  
4.   Background and authority for the subsidy   
 
49/2000. (VII.28.) § 11 FVM  of the Minister  for Agriculture and Regional Development;  
24/2001. (III.19.) FVM of the Minister for Agriculture and Regional Development;  
112/2001. (XII.27.) FVM of the Minister fo r Agriculture and Regional Development;  
47/2002. (V.17.) FVM of the Minister for Agriculture and Regional Development;  105/2003.(XII.12.) FVM of the Minister for Ag riculture and Regional Development     
 
5.  Form of the subsidy  
 Grant 
 
6.   To whom and how the subsidy is provided 
 
 Producers, processors  
 
7. Subsidy per unit or the total amount 
 
Producers: 
  
Class Purchase price Available support  
E and S 0-378 HUF 0-10 
U 0-361 HUF 0-7 
 
Processors: 
 
Class Purchase price Available support  
E and S 400- HUF 0-10 
U 380- HUF 0-7 
 
 G/SCM/N/123/EEC/Add.11 
Page 18  
 
 The guidance price (i.e. the price which – in dicates the expected central point of the 
fluctuation in prices) evolve d during the years as follows: 
 
Class Guidance price, HUF per kg 
E and S  284-381 
U 263-367 
 
An intervention price was established based on th e guidance price.  When it is reached or 
exceeded by the market price, the instruments of  the agricultural market regime (selling of 
intervention stocks or other measures) are applie d.  The maximum of the intervention price was 
HUF 381 (E and S quality group) and HUF 367 (U quality group). 
 
Payments under this programme amounted to  HUF 4,510 million during the period covered 
by the notification. 
 
8.   Duration of the subsidy 
 
 From 1 January to 30 September 2003 
 
9.  Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
2.2.3  Intervention support for pig for slaughter of large weight originating from family farms 
and private producers 
Phased out 
 
2.2.4 Assistance to the purchase of pig for slaughter of large weight 
 
1.  Title of the subsidy programme  
Assistance to the purchase of pig for slaughter of large weight 
 
2.   Period covered by the notification 
 
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
To stabilise and support agricultural income and price and to ensure the equilibrium between 
domestic supply and demand.  
 
4.   Background and authority for the subsidy 
 
  48/2003 (V.8.) FVM of the Minister for Agriculture and Regional Development;  
 
5.,   Form of the subsidy 
 
 Grant 
  G/SCM/N/123/EEC/Add.11 
 Page 19 
 
 
 6.   To whom and how the subsidy is provided 
 
 Processors 
 
7.   Subsidy per unit or the total amount 
 
HUF 40 per kg for pigs weighing between 145-200 kg if the purchase price is HUF 210 
per kg  
Payments under this programme amounted to  HUF 312 million during the period covered by 
the notification. 
 
8.  Duration of the subsidy 
 
 From 8 May  to 17 December 2003 
  
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
2.3 Support programme for maize for feeding purposes 
2.3.1 State purchase of maize for feeding purposes at guaranteed price harvested  in 1998  
 Phased out  
 
2.3.2 State purchase of maize for feeding purposes at guaranteed price harvested in 1999 
  Phased out 
 
2.3.3 State purchase of maize for feeding purposes at guaranteed price harvested in 2000 
 
 Phased out 
 2.3.4 State purchase of maize for feeding purposes at guaranteed price harvested in 2001  
 Phased out 
 2.3.5 State purchase of maize for feeding purposes at guaranteed price  harvested in 2002  
 Phased out 
 
2.3.6 Intervention purchase and related assist ance to storage of maize for feeding purposes 
harvested in 2002 
 
1. Title of the subsidy programme 
 
 Intervention purchase of maize for feeding purposes  2. Period covered by the notification  
 
 2003  G/SCM/N/123/EEC/Add.11 
Page 20  
 
 3. Policy objective and/or purpose of the subsidy 
 
 To stabilise and support agricultural income and prices.   
4. Background and authority for the subsidy 
 
Decree 217/2002 (X.24) of the Government Decree 62/2003 (VI.12.) FVM of the Minister for Agriculture and Regional  Development  
 
5. Form of the subsidy 
 
 Buying-in of maize for feeding purposes, support for interest of credit   
6. To whom and how the subsidy is provided 
  Producers 
 
7. Subsidy per unit or the total amount 
 
Intervention price: HUF 21,000/t 
 Interest subsidy: 100 per cent  
Arrangement of storage:   HUF 20/t/week, in case of private storage HUF 100/ton/week 
   Payments under this programme amounted to HUF 288 million during the period covered by 
the notification. 
 
8. Duration of the subsidy  
 From 27 October 2002 to 21 January 2004  
9. Statistical data permitting an assessment of the trade effects of the subsidy 
  N.A. 
 
2.4 Support programmes for wheat for human consumption 
 
2.4.1 State purchase of wheat for human consum ption harvested in 1998 at guaranteed price  
Phased out 
 
2.4.2 State purchase of wheat for human consum ption harvested in 1998 at guaranteed price  
Phased out. 
2.4.3  Income support for certain producers throug h intervention purchase of their wheat 
harvested in 1998  
Phased out 
 
2.4.4 State purchase of wheat for human consumption harvested in 2000 at guaranteed price  
 
Phased out  G/SCM/N/123/EEC/Add.11 
 Page 21 
 
 
   
2.4.5  State purchase of wheat for human consum ption harvested in 2001 at guaranteed price  
 
Phased out 
  
2.4.6  State purchase of wheat for human consum ption harvested in 2002 at guaranteed price  
 
Phased out  
2.4.7  Intervention purchase and related a ssistance to storage of wheat for human 
consumption harvested in 2002  
 1. Title of the subsidy programme 
 
  Intervention purchase and related assistance to  storage of wheat for human consumption 
harvested in 2002 
 
2.  Period covered by the notification 
 
 2003  3.  Policy objective and/or purpose of the subsidy 
 
To stabilise and support agricultural income of small producers.   
4.   Background and authority for the subsidy 
 
 Decree 194/2002 (IX.6) of the Government  
  Decree 28/2003. (III.11.) §6, §7 FVM of the Minister for Agriculture and Regional 
Development 
 
5.   Form of the subsidy 
 
Buying-in of wheat for human consumption harvested in 2002   
6.   To whom and how the subsidy is provided 
  Producer 
 
7.  Subsidy per unit or the total amount 
 
 Intervention price: HUF: 23,000/t  
 Interest subsidy: 100 per cent 
 Support of the storage HUF 20/ton/week, in  case of private storage HUF 100/ton/week 
 
  Payments under this programme amounted to HUF 12 million during the period covered by 
the notification. 
 
8.   Duration of the subsidy 
 
 From 6 September 2002  to 1 January 2004 
 G/SCM/N/123/EEC/Add.11 
Page 22  
 
 9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
2.5    Support programmes for milk 
 
2.5.1 Regulation of the market for cow milk  
 Phased out 
 
2.5.2 Quality-linked support for cow milk 
 
1.  Title of the subsidy programme  
 Quality-linked support for cow milk 
 
2.   Period covered by the notification  
 2003 
 
3.  Policy objective and/or purpose of the subsidy 
 
 To stabilise and support agricultural income.  
 
4. Background and authority for the subsidy 
 
 Decree 3/2000 (II.11.) § 2. (1) FVM of the Minister for Agriculture and Regional Development 
Decree 12/2002. (I.28.) FVM of the Minister for Agriculture and Regional Development Decree 22/2002. (III.30.) FVM of the Minister  for Agriculture and Regional Development 
Decree 26/2003.(III.11.) FVM of Minister fo r Agriculture and Regional Development 
Decree 61/2003.(VI.7.) § 3, FVM of the Minist er for Agriculture and Regional Development 
Decree 89/2003.(VII.24.) FVM of the Minister for Agriculture and Regional Development 
 
5.   Form of the subsidy 
 
Grant 
 
6.   To whom and how the subsidy is provided  
Producers, processors  
 
7.   Subsidy per unit or the total amount 
 
 HUF 4.5.-6 per l for extra high quality milk, if the purchase price is at least 130-145 HUF 
per l.    Payments under this programme amounted to  HUF 6,779 million during the period covered 
by the notification. 
  G/SCM/N/123/EEC/Add.11 
 Page 23 
 
 
 8.   Duration of the subsidy 
 
 From 11 February  2000 to 30 December 2003 
 
9.   Statistical data permitting an assessmen t of the trade effects of the  subsidy 
  N.A. 
 
2.5.3 Assistance to the purchase of qualified sheep milk 
 
1.  Title of the subsidy programme 
 
 Assistance to the purchase of qualified sheep milk  
 
2.   Period covered by the notification  
 
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
To stabilise and support agricultural inco me and to encourage quality production. 
 
4.   Background and authority for the subsidy 
 
Decree  106/2001 (XII.19.) FVM of the Minister  for Agriculture and Regional Development 
Decree  6/2003. (II.1.) FVM of the Minister for Agriculture and Regional Development 
 
5.   Form of the subsidy 
 
 Grant 
 
6.   To whom and how the subsidy is provided 
 
Processors 
 
7.  Subsidy per unit or the total amount 
 
 HUF 30 per l for first class quality milk if the purchase price is at least 150 HUF per l.  The  
maximum eligible quantity for support is 1.5 million l. 
 
 Payments under this programme amounted to HUF 31 million during the period covered by 
the notification. 
 
8.   Duration of the subsidy  
 From 1 January 2002 to 30 December 2003 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
  N.A. 
 G/SCM/N/123/EEC/Add.11 
Page 24  
 
 2.5.4.1  Assistance to the purchase of qualified goat milk in 2000 
 
Phased out 
 
2.5.4.2  Assistance to the purchase of qualified goat milk in 2002 
 
Phased out 
 
2.5.4.3  Assistance to the purchase of qualified goat milk in 2003 
 
1.  Title of the subsidy programme 
 
 Assistance to the purchase of qualified goat milk  
 
2.   Period covered by the notification 
  
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
To stabilise and support agricultural inco me and to encourage quality production 
  
4.   Background and authority for the subsidy  
Decree 107/2001. (XII.19) FVM  of the Minister  for Agriculture and Regional Development 
Decree 5/2003. (II.1.)  FVM of the Minister for Agriculture and Regional Development 
 5.   Form of the subsidy  
 Grant  
 
6.  To whom and how the subsidy is provided 
 
Processors 
 
7.   Subsidy per unit or the total amount 
 
HUF 20 per l for first class quality milk if the purchase prise is at least HUF 90-95 per l. 
 
The maximum eligible quantity fo r support is 2.25 million l. 
  Payments under this programme amounted to  HUF 22 million during the period covered by 
the notification. 
 
8. Duration of the subsidy 
 
 From 1 January to 30 December 2003 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N.A. 
  G/SCM/N/123/EEC/Add.11 
 Page 25 
 
 
 2.5.5 Guidance price for cow milk and and int ervention price for butter and skimmed milk 
powder 
 
1. Title of the subsidy programme 
 
 Guidance price for cow milk and intervention price  for butter and skimmed milk powder 
 
2.  Period covered by the notification 
 2003 
3.   Policy objective and/or purpose of the subsidy 
 To stabilise and support agricultural income.  
4.   Background and authority for the subsidy 
Decree 27/2003. (I. 28.) FVM of the Minister for Agriculture and Regional Development 
 
5.   Form of the subsidy 
Grant 
6.   To whom and how the subsidy is provided 
Producers, processors  
7.   Subsidy per unit or the total amount 
 The guidance price of milk which indicates the expected central point of fluctuation in prices 
was HUF 72 per l. 
 
The intervention prices for butter were as follows:   minimum intervention price: HUF 294 per kg maximum intervention price: HUF 401 per kg 
 
The intervention prices for skimme d milk powder were as follows: 
 minimum intervention price: HUF 345 per kg maximum intervention price: HUF 470 per kg      
 
Payments under this programme amounted to  HUF 6,778 million during the period covered 
by the notification. 
 
8.   Duration of the subsidy 
 
 From 11 March to 30 December 2003  
 G/SCM/N/123/EEC/Add.11 
Page 26  
 
 9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N.A. 
 
2.6 Support programmes for apple 
 
2.6.1 Intervention assistance to the pro cessing of apple in bulk harvested in 1996 
 
 Phased out 
 
2.6.2   Intervention assistance to the pr ocessing of apple in bulk harvested in 1997 
 
Phased out 
 
2.6.3  Intervention assistance to the pu rchase of apple in bulk harvested in 1998 
 
Phased out 
 
2.6.4  Interest subsidy on loans received for the purchase and storage of extra and 1 st class 
fresh apple harvested in 1998  
Phased out 
 
2.6.5  Intervention assistance to the pu rchase of apple in bulk harvested in 1999 
Phased out 
 
2.6.6  Support for cold storage of apple harvested in 2002 
 
1.  Title of the subsidy programme  
Support for cold storage of apple harvested in 2002  
 
2.   Period covered by the notification 
 
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
To ensure the equilibrium betw een domestic supply and demand  
 
4.   Background and authority for the subsidy 
 
Decree 91/2002 (X.4.) FVM of the Minister for Agriculture and Regional Development 
 
5.   Form of the subsidy  
 Grant  
 
6.   To whom and how the subsidy is provided 
 
 Producer   
  G/SCM/N/123/EEC/Add.11 
 Page 27 
 
 
 7. Subsidy per unit or the total amount 
 
support for storage: HUF 1,82 per kg per month 
support for purchased apple after storage : HUF 5.46-14.56 per kg 
 
Payments amounted to HUF 327 million during the period covered by the notification. 
 
8.  Duration of the subsidy 
 
 From 4 October 2002 to 30 September 2003  
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 2.7 Support programmes for wine  
2.7.1  Intervention assistance for the distillation  of wine produced in 1997 in order to reduce 
stocks 
Phased out 
2.7.2 Intervention assistance for the distillation  of vintage wine of 1998 in order to reduce 
stocks 
 
Phased out 
 
2.7.3 Interest subsidy for the purchase of wh ite grapes produced in 1998 in certain regions 
 Phased out 
 
2.7.4  Intervention assistance for the distillation  of vintage wine of 1999 in order to reduce 
stocks  
 
Phased out 
 
2.7.5 Intervention assistance for the distillation  of vintage wine of 2001 in order to reduce 
stocks 
 1.  Title of the subsidy programme 
 
Intervention assistance for the distillation of  wine of 2001 in order to reduce stocks 
 
2.  Period covered by the notification 
  
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
To reduce stocks 
. G/SCM/N/123/EEC/Add.11 
Page 28  
 
 4.  Background and authority for the subsidy 
 
Decree 93/2002 (X.7.) FVM of the Minister for Agriculture and Regional Development  
  
5. Form of the subsidy 
 
Grant 
 
6.   To whom and how the subsidy is provided 
 
 Distilleries 
 
7.  Subsidy per unit or the total amount 
 
 The maximum subsidy is HUF 31 per l if the purchase price is at least HUF 30,9-38 depending on the minimum alcoholic content  
  Payments under this programme amounted to HUF  7 million during the period covered by the 
notification.  
8.   Duration of the subsidy 
 
 From 13 October 2002 to 31 July 2003 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 
2.7.6 Intervention assistance for the aid for the pr oduction of grape must concentrate used for  
the enrichment of wine of 2001  in order to reduce stocks 
 
 Phased out 
 
2.8 Support programme for barley, ry e, triticale harvested in 1998 
2.8.1 Income support for certain producers thro ugh intervention purchase of their barley, 
rye, triticale harvested in 1998  
 Phased out 
 
2.9  Support programme for poultry 
2.9.1 Assistance to the production of quality poultry for slaughter  
 1.  Title of the subsidy programme 
 
Assistance to the production of quality poultry for slaughter  
 
2.   Period covered by the notification 
 
 2003 
  G/SCM/N/123/EEC/Add.11 
 Page 29 
 
 
 3.   Policy objective and/or purpose of the subsidy 
 
 To ensure the equilibrium between domestic  supply and demand, to support agricultural 
income and encourage quality production. 
 
4.   Background and authority for the subsidy 
 
Decree 103/1997.(XII. 15.) FVM of the Minister  for Agriculture and Regional Development 
Decree 13/2000.(III.31.) FVM of the Minister for Agriculture and Regional Development 
Decree 23/2001 (III.19.) FVM of the Minister for Agriculture and Regional Development  
Decree 110/2001 (XII.27.) FVM of the Minister  for Agriculture and Regional Development 
Decree 55/2002 (VI.28.) FVM of the Minister for Agriculture and Regional Development 
Decree 89/2002 (X.1.) FVM of the Minister for Agriculture and Regional Development 
 
5. Form of the subsidy 
 
Grant 
 
6.   To whom and how the subsidy is provided 
 
 Producers, processors 
 
7.   Subsidy per unit or the total amount 
 
 The amount of subsidy is HUF 5.5-8.7 per kg for the first class poultry for slaughter, HUF 11-
15.8 per kg for young poultry for slaughter (or chicken for slaughter) 
 
 Processors:  The amount of subsidy is:  HUF 5,5 – 8 per kg for first class poultry, if the purchase price is least HUF 152-250.   Payments under this programme amounted to  HUF 1,299 million during the period covered 
by the notification. 
 
8.   Duration of the subsidy 
 
 From 1 January 1998  
Duration has not been specified. 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 2.10  Support programme for vegetables 2.10.1 Quality-linked support of tomato for industrial purposes 
 
 The description of the subsidy figures under point 4.72, as the attribution of the grant is no longer related to the price of the product. 
 
2.10.2 Quality-linked support for red pepper  
 
 The description of the subsidy figures under point 4.73, as the attribution of the grant is no longer related to the price of the product. G/SCM/N/123/EEC/Add.11 
Page 30  
 
  
2.10.3 Quality-linked support for onion  
 
 The description of the subsidy figures under point 4.74, as the attribution of the grant is no 
longer related to the price of the product. 
 
2.10.4.1 Guidance price and intervention price of sugar and sugarbeet in 2001 
 
 Phased out  
 
2.10.4.2 Guidance and intervention price of sugar in 2003 and minimum price of sugarbeet 
 
1.  Title of the subsidy programme  
Minimum price and intervention price of sugar and  in 2003  and minimum price of sugarbeet 
 
2.   Period covered by the notification 
 
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
To stabilize and support agricultural income and prices 
 
4.   Background and authority for the subsidy  
117/2003 (XI 26.) FVM of the Minister for Agriculture and Regional Development 
 
5.  Form of the subsidy 
 
Grant  
6.   To whom and how the subsidy is provided  
Processors, producers  
 
7.  Subsidy per unit or the total amount 
 
Producers: 
 
Sugarbeet:
 
Minimum price was HUF 8 250 per ton 
 
Processors: 
 
Sugar  
The guidance price which indicates the expected central point of fluctuation in prices was HUF 147 000 per ton. 
 
 Apart form the guidance price an intervention price was established.  When the intervention 
price is reached by the market price, or when the market price falls below the intervention price, the 
instruments  is of the agricultural market regime (s tate purchase, selling of intervention stocks or other 
measures) are applied.   G/SCM/N/123/EEC/Add.11 
 Page 31 
 
 
 Intervention price was HUF 132 000 per tonnes.  
 No payments occurred under this programme during the period covered by the notification. 
 
8.   Duration of the subsidy 
 
 From 19 October 2001  to 30 April  2004 
 
9.  Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
3-4  OTHER SUPPORT PROGRAMMES 
 
3.1 Assistance to stock-breeding  
 
1.  Title of the subsidy programme  
 Assistance to stock-breeding 
 
2.   Period covered by the notification 
 
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
 To support the operation and development of id entification, registration and inspection and 
information system of breeding animals.  To support the purchasing of the equipment neces sary for identification, analysis of genetic 
performance and estimation of genetic value.  To support genetic development aimed at enha ncing the breeding and utility value of domestic 
animals and to develop the genetic background aimed at producing first-rate an imal products by supporting 
the import of high quality sperm. 
 To support the organisation of national events  for the purpose of exchange of experience and 
information about animal breeding.  To support the participation in animal breeding fairs, international conferences and 
professional events and assist the publishing of related documents. 
 To support special stock-breeding projects a nd preparation of research works and reports. 
 
4.   Background and authority for the subsidy 
 
Decree 3/2003 (I.24. ) FVM of the Minister of Agriculture and Regional  146-163. § 
 
5.   Form of the subsidy  
Grant 
 
6.   To whom and how the subsidy is provided 
 
Stock breeders, animal breeder and inspection organisations 
 G/SCM/N/123/EEC/Add.11 
Page 32  
 
 7.   Subsidy per unit or the total amount 
 
 Payments under this programme amounted to  HUF 1,165 million during the period covered 
by the notification. 
 
8.   Duration of the subsidy  
From 1 January to 31 December 2003 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 
3.2 Assistance to fishery activities 
 
1.  Title of the subsidy programme 
 
 Assistance to fishery activities 
 
2.   Period covered by the notification 
 
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
 To facilitate the protection and preservation and re placement of fish stocks in natural waters, 
to enhance the values of the fish stocks, to pr event the perishing of fish and eliminate the 
consequences thereof, and to pr omote the execution of tasks conn ected with water utilisation for 
fishing and angling purposes, to support the participat ion in international fishing organisations and to 
support the cost of management of fishing. 
 
4.   Background and authority for the subsidy 
 
 Decree 3/2003 (I.24.) FVM of the Minister of Agriculture and Regional Development, 164-
171. §. 
 
5.   Form of the subsidy  
 
Grant 
 
6.   To whom and how the subsidy is provided 
 
Stock breeders, research and education organi sations operating in the field of fishing. 
 
7.   Subsidy per unit or the total amount 
 
50 per cent of the costs 
75 per cent of the costs for research and edu cation activities in the field of fishery. 
 Payments under this programme amounted HUF 190 million during the period covered by the 
notification. 
  G/SCM/N/123/EEC/Add.11 
 Page 33 
 
 
 8.   Duration of the subsidy 
 
From 1 January to 31 December 2003 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
  N.A. 
 
3.3 Assistance to agriculture and forestry 
3.3.1 Assistance to the preservation or develo pment of biological bases and the modernisation 
of related system of qualification 
3.3.1.1  Assistance to genetic development 
1.  Title of the subsidy programme 
 
 Assistance to genetic development 
 
2.   Period covered by the notification 
 
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
 To assist the preservation or development of biological bases, the establishment of plantations 
for gene- preservation, the modernisation of relate d systems of qualification, the establishment and 
maintaining of farms for education and promotion pur poses and participating of Hungary in international 
scientific organisations. 
 
4.   Background and authority for the subsidy 
 
 Decree 3/2003 (I. 24.) FVM of the Minister of Agriculture and Regional Development, 335.-
346. § 
 
5.   Form of the subsidy  
 Grant 
 
6.   To whom and how the subsidy is provided 
 
 Producers 
 
7.   Subsidy per unit or the total amount 
 
The amount of subsidy is 30-100% of the costs.  
 
 Payments under this programme amounted to  HUF 1,216 million during the period covered 
by the notification.  G/SCM/N/123/EEC/Add.11 
Page 34  
 
 8.   Duration of the subsidy 
 
 From 1 January to 31 December 2003 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
  N.A. 
 
3.3.1.2  Assistance to the purchase and chang es of breeding animals and to the expansion of 
their stocks 
1.  Title of the subsidy programme 
 Assistance to the purchase and changes of breed ing animals and to the expansion of their 
stocks 
2.   Period covered by the notification 
 
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
To facilitate the acquisition of high-quality  breeding animals and propagating materials. 
 
4.   Background and authority for the subsidy  
 Decree 3/2003 (I. 24.) FVM of the Minister of Agriculture and Regional Development, 276.-
334. § 
 
5.   Form of the subsidy  
 Grant 
 
6.   To whom and how the subsidy is provided 
 
 Stock breeders 
 
7.   Subsidy per unit or the total amount 
  For female animals 
For cow service:    HUF 20,000 per female 
For cow with calf service:   HUF 50,000 per female For mare service    HUF 10,000 per female 
For registered mare service   HUF 50,000 per female 
For sheep and goats for service :   HUF 1,500 per female For red deer for service    HUF 10,000 per female 
For pig for service:     HUF 10,000 to 17,000 per female 
 
For bees: 
HUF 1,500 per family 
HUF 850 per queen-bee 
  G/SCM/N/123/EEC/Add.11 
 Page 35 
 
 
 For poultry:: 
For chicken and "peking" type duck   HUF 60 per female 
For turkey and "barbarie" type duck   HUF 200 per female Foe goose and "mulard" type duck   HUF 400 per female 
 
For male animals: 
For bull for service:      HUF 60,000 per male. 
For ram for service and he-goat for service:   HUF 15,000 to 25,000 
 
For purchasing stallion for breeding: mini mum 40 maximum 60 animals, maximum amount: 
HUF 50 million. 
For seemen of cattle:      HUF 200  For artificial insemination of mare:   HUF 30,000 per female. 
Assistance for the special identification system  (ENAR) of calves, pigs, goats, sheep and 
horses is HUF 700 and 2,500 per head. 
Use of breeding fish     HUF 70 per kilogram Rabbit breeding      HUF 2,000 per animal 
 
Payments under this programme amounted to  HUF 5,080 million during the period covered 
by the notification. 
 
8.   Duration of the subsidy 
 
From 1 January to 31 December 2003 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 
3.3.2  Assistance to the utilisation of arab le lands in disadvantaged producing areas 
 Phased out 
 
3.3. 3 Assistance to investment in, and development of agricultural production   and food 
processing 
 
 Phased out 
 
3.3.4 Assistance to mending, cultivating and preserving the quality and the quantity of forests  
1.  Title of the subsidy programme 
 
Assistance to mending, cultivating and preser ving the quality and the quantity of forests 
 
2.  Period covered by the notification 
 
2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
To facilitate afforestation, treatment and cultivation of young forests; 
To support the natural and ar tificial renewal of forests, G/SCM/N/123/EEC/Add.11 
Page 36  
 
  To reduce costs arising from provisional utilisa tion of forests, from afforestation resulted 
from the change in use of land;  To re-establish the adequate  structure of forests which was affected by the long land 
compensation procedure;  To contribute to the costs of plans of forest ma nagement, the cost of forest treatment of public 
interest; 
 To contribute to the cost of operation of fo rest protection measuring and monitoring systems 
arising from international obligations;  To support the participation in international forest organisations; 
 To preserve the ecosystem, the ecological bala nce and physical condition of the forests; 
 To contribute to the cost of propagation of  forest culture, research and education activity. 
 
4.   Background and authority for the subsidy 
 
 Decree 3/2003 (I. 24.) FVM of the Minister of Agriculture and Regional Development, 104.-
116. § 
 
5.   Form of the subsidy 
 
 Grant 
 
6.   To whom and how the subsidy is provided 
 
 Sylviculturists  
 
7.   Subsidy per unit or the total amount 
 
 Payments under this programme amounted to  HUF 6,306 million during the period covered 
by the notification. 
 
8.   Duration of the subsidy 
 
From 1 January to 31 December 2003  
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 3.4 Assistance to game husbandry 
 
1. Title of the subsidy programme 
 
 Assistance to game husbandry 
 
2.   Period covered by the notification  
 2003 
  G/SCM/N/123/EEC/Add.11 
 Page 37 
 
 
 3.   Policy objective and/or purpose of the subsidy 
 
To protect and preserve natural stocks of game species and their habitats; 
To protect and preserve natural stocks of special areas, To finance the state management connected w ith preservation of game species and hunting 
 
4.   Background and authority for the subsidy 
 
Decree 3/2003 (I. 24.) FVM of the Minister of  Agriculture and Regional Development, 172.-
184. § 
 
5. Form of the subsidy 
 
 Grant 
 
6.   To whom and how the subsidy is provided  
Hunters, institutions, companies operati ng in the field of game husbandry  
 
7.   Subsidy per unit or the total amount 
 
 The maximum amount of support eligible per a pplicant is HUF 5 million, but not more than 
the 50 per cent of the value of the investment.   Payments under this programme amounted to HUF 716 million during the period covered by 
the notification. 
 
8.   Duration of the subsidy 
 
From 1 January to 31 December 2003 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
  N.A. 
 
3.5 Assistance to the protection of arable land 
 
1.  Title of the subsidy programme 
 
 Assistance to the protection of arable land 
 
2.   Period covered by the notification 
 
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
 To provide supplement for cultivable land to lo wer the unjustified decrease of land capable of 
cultivation and to enhance different types of utilisa tion of land capable of cu ltivation as a sector with 
constant changes.  G/SCM/N/123/EEC/Add.11 
Page 38  
 
  To facilitate utilisation of land capable of cultiv ation by re-utilisation of idle land, grassland, 
to develop terraces for vineyards in wine-growing ar eas, to facilitate land concentration, elimination 
of orchards and vineyards, re-cultivation of fish ponds.  Assistance to build connecting roads an d canal system against inland waters. 
  Assistance to remote censoring related to agriculture 
 Assistance to purchasing land in order to increase land concentration.  
 Assistance to improve land registra tion related to la nd quality preservation 
 
4.   Background and authority for the subsidy 
 
 Decree 3/2003 (I.24.) FVM of the Minister of Agriculture and Regional Development, 135.-
145. § 
 
5.   Form of the subsidy 
 
 Grant 
 
6.   To whom and how the subsidy is provided 
 
 Producers, institutions, companies engaged in quantitative and qualitative protection of 
croplands and land concentration policy 
 
7.  Subsidy per unit or the total amount 
 
 40 per cent of the costs of helping utilisation of  land capable of cultivation by re-utilisation of 
idle land and the elaboration of projects in this regard 
 30 per cent of the cost of purchasing of land. 
  Payments under this programme amounted to  HUF 3,301 million during the period covered 
by the notification. 
 
8.   Duration of the subsidy 
 
From 1 January to 31 December 2003 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 
3.6  Assistance to the construction and renovation of buildings 
 
 Phased out 
 3.6.1  Assistance to the construction of build ings of “new type” co-operations, fishery and 
forestry 
  
 Phased out 
 3.6.2  Assistance to technology investments in the food industry  
1.  Title of the subsidy programme  
Assistance to food industrial technology investments   G/SCM/N/123/EEC/Add.11 
 Page 39 
 
 
  
2.   Period covered by the notification 
 
 2003 
 
3.   Policy objective and/or purpose of the subsidy  
To assist the development technology us ed in the food industry, especially: 
 - Quality improvement, production, developm ent of new products and -environmentally-
friendly packaging, 
- Fulfilment of good hygiene requirements, - Reducing energy use and environmental damage  
4.  Background and authority for the subsidy 
 
 Decree 3/2003 (I. 24.) FVM of the Minister of  Agriculture and Regional Development, 21. § 
 
5.   Form of the subsidy 
 
 Grant and interest subsidy 
 
6.   To whom and how the subsidy is provided 
 
Processors  
 
7.   Subsidy per unit or the total amount   
Grant: 
25 per cent of the cost of investment maximum HUF 60 million  
 Payments under this programme amounted to HUF 667 million during the period covered by 
the notification. 
 
8.   Duration of the subsidy 
 
 From 1 January to 31 December 2003 
 
9.  Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 
3.6.3 Assistance to the modernisation and construction of buildings of forestry, game 
husbandry, fishery and agriculture, assist ance to the investments of horticulture 
1.  Title of the subsidy programme 
 
 Assistance to the modernisation and constructi on of buildings of agriculture, forestry, game 
husbandry, fishery and horticulture 
 G/SCM/N/123/EEC/Add.11 
Page 40  
 
 2.   Period covered by the notification 
 
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
To assist the modernisation and constr uction of buildings and infrastructure 
 
4.   Background and authority for the subsidy 
 
 Decree 3/2003 (I. 24.) FVM of the Minister of  Agriculture and Regional Development, 7.-8. § 
 
5.  Form of the subsidy 
 
 Grant and interest subsidy 
 
6.   To whom and how the subsidy is provided 
 
Agricultural producers, sylvic ulturists, fish and horticulture producers, co-operatives, 
vegetable- and fruit processors, r esearch and education institutes 
 
7.   Subsidy per unit or the total amount  
 Grant:
 
 
25-50 per cent of the cost of investment, plus interest subsidy. 
 
Plus 5 per cent of the cost of investment extra subsidy for modernisation for sales co-operatives and purchasing, processing, sales co-operatives 
 
Maximum amount of the grant is HUF 60 million. 
 
Payments under this programme amounted to  HUF 9,882 million during the period covered 
by the notification.  
8.  Duration of the subsidy 
 
 From 1 January to 31 December 2003 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 3.7 Assistance to the establishment of vineyards and orchards 
 
1. Title of the subsidy programme  
 Assistance to the establishment of vineyards and orchards 
 
2.   Period covered by the notification 
 
 2003  G/SCM/N/123/EEC/Add.11 
 Page 41 
 
 
  
3.   Policy objective and/or purpose of the subsidy 
 
To establish new plantations (vineyards and orchards)  
 
4.   Background and authority for the subsidy  
 Decree 3/2003 (I.24.) FVM of the Minister of  Agriculture and Regional Development, 18-
19.§  
 
5.   Form of the subsidy  
 Grant 
Interest subsidy  
6.   To whom and how the subsidy is provided  
 Owners and tenants of vineyards or orchards 
 
7.   Subsidy per unit or the total amount 
 
 Grants:
 
 
50 per cent of the cost, maximum HUF 60 to 70 million for establishment of productive plantations  60 per cent of the cost, maximum HUF 60 million for establishment of stock plantation 
40 per cent of the cost, maximum HUF 3 million for plantation of decoration plants 
  Interest subsidy:
 
 
For loans above the grant maximum HUF 6 million. 
 
Payments under this programme amounted to  HUF 8,885 million during the period covered 
by the notification.  
8.   Duration of the subsidy 
 
 From 1 January to 31 December 2003 
 
9.  Statistical data permitting an assessment of the trade effects of the subsidy 
  
 N.A. 
 3.8 Regional assistance programmes 
 
3.8.1  Assistance to the development of disadvantaged regions 
 Phased out 
 G/SCM/N/123/EEC/Add.11 
Page 42  
 
 3.8.2 Assistance to the inhabitants of settlements with less than 3 000 inhabitants living in 
disadvantaged regions 
 Phased out 
 
3.8.3 Additional assistance to cert ain counties in disadvantaged areas 
 
1.  Title of the subsidy programme  
Additional assistance to certain counties in disadvantaged areas 
 
2.   Period covered by the notification  
 2004 
 
3.   Policy objective and/or purpose of the subsidy 
 
 To compensate for regional disadvantages.  
 
4.   Background and authority for the subsidy 
 
 Decree 44/2001 (VI.18.) as amended by 58/2001 (IX . 21) FVM of the Minister of Agriculture 
and Regional Development 
 
5,   Form of the subsidy 
 
 Grant  
6.   To whom and how the subsidy is provided 
 
 Producers located in Nógrád, Szabolcs- Szat már- Bereg, Borsod-Abaúj-Zemplén, Somogy and 
Békés counties  
7.   Subsidy per unit or the total amount  
Supplementary grant
 provided under the  
− "3.7 Assistance to the establishment of vineyards and orchards"-programme, (plus 20 per 
cent or 25 to 40 per cent of the  cost of the investment ) 
− "3.6.3 Assistance to food industrial technology investments” programme, (plus 10 per 
cent or 40 per cent of the cost of investment) 
− "4.1.3-4.1.4. Assistance to  the purchase and leasing of agricultural machinery" 
programme (plus 20 per cent of the price of new machinery or leasing fee ) 
− “3.6.2 Assistance to the modernisation and c onstruction of buildings of forestry ,game 
husbandry, fishery and horticulture” programme , (plus 10 per cent or 40 per cent of the 
cost of investment) 
− "4.4. Assistance to soil melioration and to irrigation investment" programme, (plus 20 
per cent or 40 per cent of the cost of investment) 
− “4.5.Assistance for planting and restructuri ng forests and afforestation” programme. 
 
 The amount of the supplementary grant can not exceed HUF 20 million, the amount of grant is 
maximum HUF 40 million. 
 No payments occured  under this programme during the period covered by the notification.  G/SCM/N/123/EEC/Add.11 
 Page 43 
 
 
 8.   Duration of the subsidy 
From 1 January to 31 December 2004 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 N.A. 
 3.8.4 Assistance to the development of agro-tourism  
 Phased out 
 
3.9 Assistance to foster co-operative integration 
 
3.9.1 Assistance to encourage the establishment of co-operatives in the field of production, 
purchase and marketing 
  
Phased out  
 3.9.2 Assistance to the functioning of co-operatives  
1.  Title of the subsidy programme  
 Assistance to purchase, sales and service co-operations with minimum HUF 200 million yearly return 
Assistance to foster producing and sales co-ope rations in the field of fruit and vegetable 
producing (POs) 
Assistance to foster producing organisations 
 
2.   Period covered by the notification  
 2004 
 
3.  Policy objective and/or purpose of the subsidy 
 
To encourage co-operative integration in the field of purchase, sales and service. 
 
4.  Background and authority for the subsidy 
 
 Decree 3/2003 (I.24.) FVM of the Minister of  Agriculture and Regional Development, 78-
91.§ 
 
5.  Form of the subsidy 
 
 Grant, interest subsidy 
 
6.   To whom and how the subsidy is provided  
 Agricultural purchase, sales and service co-opera tives, organisations with minimum HUF 200 
million yearly return 
Producing and sales co-operatives in the field of fruit and vegetable producing (POs) 
Agricultural co-operatives 
 G/SCM/N/123/EEC/Add.11 
Page 44  
 
 7.   Subsidy per unit or the total amount 
 
For purchase, sales and service co-operatives: 
5 per cent of the return from sales, maximum HUF 20 million, if the return from sales does 
not exceed 200 per cent of the subscribed capital. 
 
For milk co-operatives: Maximum HUF 600,000 for the start up cost. HUF 10,000 per cow, maximum HUF 10 million. 
 
HUF 100 000 per member, maximum HUF 3 milli on for machinery service to agriculture. 
 For vegetable and fruit producing and sales co-operatives (POs) : 
For preliminary registered co-operatives: 
 
Until HUF 150 million yearly returns: 20 per cent of the returns,  
HUF 150 to 300 million yearly returns: HUF 30 million plus 3 per cent of the returns above HUF 150 million, HUF 300 to 400 million yearly returns: HUF 34,5 million plus 6 per cent of the returns above HUF 300 million, Above HUF 400 million yearly returns: HUF 40,5 million plus 9 per cent of the returns above 
HUF 400 million. 
 
For registered co-operatives: 8 per cent of the returns.  For producing co-operatives: 
 
For preliminary registered producing organisations: Until HUF 150 million yearly returns: 10 per cent of the returns,  HUF 150 to 300 million yearly returns: HUF 15 million plus 6 per cent of the returns above HUF 150 million, 
Above HUF 300 million yearly returns: HUF 19 m illion plus 5 per cent of the returns above 
HUF 300 million, maximum HUF 30 million. 
 
For preliminary registered producing organisati on in the field of grape and wine production: 
Until HUF 150 million yearly returns: 15 per cent of the returns,  
HUF 150 to 300 million yearly returns: HUF 22,5 million plus 6 per cent of the returns above 
HUF 150 million, Above HUF 300 million yearly returns: HUF 31,5 million plus 5 per cent of the returns above HUF 300 million, maximum HUF 40 million. 
 
For preliminary registered producing organisation in the field of rabbit, honey, medical herb, 
sheep and goat production: 
 
Until HUF 75 million yearly returns: 20 per cent of the returns,  HUF 75 to 150 million yearly returns: HUF 15 million plus 6 per cent of the returns above HUF 150 million, 
Above HUF 150 million yearly returns: HUF 19,5 million plus 5 per cent of the returns above 
HUF 300 million, maximum HUF 30 million.   G/SCM/N/123/EEC/Add.11 
 Page 45 
 
 
 For registered co-operatives: 
 6 per cent of the returns. 
 Payments under this programme amounted to  HUF 3,515 million during the period covered 
by the notification. 
 
8.   Duration of the subsidy 
 
From 1 January to 31 December 2003 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 3.10  Assistance to the purchase of individu al shares of the members of co-operatives 
 
Phased out  
3.11  Assistance to the realisation of certain goals of the agricultural policy  
 
3.11.1 Assistance to the realisation of certain goals of the agricultural policy  
 
Phased out  
 
3.11. 2 Assistance to agricultural information network 
 
Phased out  
 
3.11.3 Assistance to foreign training programmes 
 
1.  Title of the subsidy programme 
 
Assistance to the foreign training programs 
 
2.   Period covered by the notification 
 
2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
  To assist the development of  foreign training programmes 
 
4.   Background and authority for the subsidy  
 Decree 3/2003 (I.24.) FVM of the Minister of  Agriculture and Regional Development, 63-
66.§ 
 
5.   Form of the subsidy  
Grant G/SCM/N/123/EEC/Add.11 
Page 46  
 
  
6.   To whom and how the subsidy is provided 
 
 Young agricultural experts and students 
 
7.   Subsidy per unit or the total amount  
For foreign training programmes: 
 
30-50 per cent of the cost of travel, visa and training programmes  
50 per cent of the cost of accommodation for fo reign experts participating in Hungarian 
training programmes.  Payments under this programme amounted to HUF  88 million during the period covered by 
the notification.  
 
8.   Duration of the subsidy 
 
From 1 January to 31 December 2003 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
  N.A. 
 
3.11.4  Assistance to agricultural research a nd development of non-profit organisations 
 
1.  Title of the subsidy programme 
 
Assistance to agricultural research and development of non-profit organisations  
 
2.   Period covered by the notification 
 
2003 
 
3. Policy objective and/or purpose of the subsidy 
 
Assistance to non-profit organisations relate d to agricultural research and development 
 
4.   Background and authority for the subsidy 
 
Decree 3/2003 (I.24.) FVM of the Minister of Agriculture and Regional Development, 77. § 
 
5.   Form of the subsidy 
 
Grant 
 
6.   To whom and how the subsidy is provided 
 
Non-profit organisations with r esearch and development activities 
  G/SCM/N/123/EEC/Add.11 
 Page 47 
 
 
 7.   Subsidy per unit or the total amount 
 
90 per cent of the cost of innovation and maintenance 
 
 Payments under this programme amounted to  HUF 76 million during the period covered by 
the notification.  
 
8.  Duration of the subsidy 
 
From 1 January to 31 December 2003  
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 3.11.5  Assistance to purchasing state-of-the-ar t technical equipment for institution engaged in 
agricultural research and development 
 
1. Title of the subsidy programme  
 Assistance to the purchasing state-of-the-art t echnical equipment for agricultural research and 
development 
 
2.  Period covered by the notification 
 
2003  
3. Policy objective and/or purpose of the subsidy 
 
Assistance to the purchasing technical equipmen t for agricultural research and development  
 
4.   Background and authority for the subsidy 
 
Decree 3/2003 (I.24.) FVM of the Minister of Agriculture and Regional Development, 17. § 
 
5.   Form of the subsidy 
 
Grant 
 
6.   To whom and how the subsidy is provided 
 
Agricultural research institutes and owners of pilot farms 
 
7.   Subsidy per unit or the total amount  
 90 per cent of the cost of the technological deve lopments, investments of agricultural research 
institutes  80 per cent of the cost of the technological developments, investments of agricultural 
laboratories 
 75 per cent of the cost of modernisation a nd other investments of non-profit agricultural 
organisations  Payments under this programme amounted to HUF 433 million during the period covered by 
the notification.  G/SCM/N/123/EEC/Add.11 
Page 48  
 
  
8.  Duration of the subsidy 
 
From 1 January to 31 December 2003 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
3.12 Assistance to common marketing in agriculture 
 
1.  Title of the subsidy programme  
Assistance to common marketing in agriculture 
 
2.  Period covered by the notification  
2003 
 
3.  Policy objective and/or purpose of the subsidy 
 
To co-finance the participation in international fairs. 
Promotion of Hungarian agricultural products. Assistance to market research  with advanced methods. 
 
4.  Background and authority for the subsidy 
 
Decree 50/2002. (V.25.) FVM of the Minister  for Agriculture and Regional Development 
 Decree 3/2003. (I.24.) §187, §188 , §188, §190 FVM of the Minister for Agriculture and Regional Development 
 
7.  Subsidy per unit or the total amount 
 
50 per cent of the costs 
  Payments under this programme amounted to  HUF 1,607 million during the period covered 
by the notification. 
 
8.  Duration of the subsidy 
 
From 25 May 2002 to 30 December 2003 
 
9.  Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
N.A.  
3.13  Agricultural research programmes 
 
Phased out 
  G/SCM/N/123/EEC/Add.11 
 Page 49 
 
 
 3.14  Assistance to the joint establishment of wholesale markets by producers and to 
investment of joint sales organisations and producers 
Phased out 
 
4.1 Finance subsidies 
 
4.1.1  Assistance given to further agricultural activities  
 Phased out 
 4.1.2  Government guarantee  
 Phased out 
 
4.1.3  Assistance to the purchase of agricultural machinery 
 
1.  Title of the subsidy programme  
 Assistance to the purchase of  agricultural machinery 
 
2.   Period covered by the notification 
 
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
To assist the producers in financing th eir purchase of agricultural machinery 
 
4.   Background and authority for the subsidy 
 
 Decree 3/2003 ( I.24.)  FVM of the Minister of  Agriculture and Regional Development, 9.-
13.§ 
 
5.   Form of the subsidy 
 
 Grant and interest subsidy  
 
6.   To whom and how the subsidy is provided  
Producers, cooperatives and entrepreneurs perfo rming hired labour service with agricultural 
machinery, education organisations 
 
7. Subsidy per unit or the total amount 
 
25 per cent of the list price of agricultural machinery, 
maximum amount of grant: HUF 60 million 
  
 In the case of accredited producing and sales co- operatives 50 per cent of the cost and interest 
subsidy 
 In the case of producers in the field of m ilk production 50 per cent of the cost, maximum 
HUF 5 million plus 50 per cent of the interest on loan up to HUF 5 million. G/SCM/N/123/EEC/Add.11 
Page 50  
 
  In the case of co-operatives in the field of milk production 50 per cent of the cost, maximum 
HUF 5 million plus 50 per cent of the interest on loan up to HUF 10 million.   Payments under this programme amounted to  HUF 23,774 million during the period covered 
by the notification. 
 
8.  Duration of the subsidy 
 
From 1 January to 31 December 2003 
 
9.  Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
4.1.4  Assistance to the leasing of agricultural machinery 
 
1.  Title of the subsidy programme  
 Assistance to the leasing of  agricultural machinery 
 
2.   Period covered by the notification 
 
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
To assist the producers in financing their leasing of agricultural machinery 
 
4.   Background and authority for the subsidy 
 
 Decree 3/2003 ( I.24.)  FVM of the Minister of Agriculture and Regional Development, 14.-
15. § 
 
5.   Form of the subsidy 
 
 Grant and interest subsidy  
 
6.   To whom and how the subsidy is provided  
 Producers and entrepreneurs performing hired labour service with agricultural machinery, 
education organisations 
 
7.   Subsidy per unit or the total amount 
 
 Grant and interest subsidy granted for leased machinery and technological equipment 
contacted for minimum 36 months 
 
 Payments under this programme amounted to  HUF 4,242 million during the period covered 
by the notification. 
  G/SCM/N/123/EEC/Add.11 
 Page 51 
 
 
 8.  Duration of the subsidy 
 
From 1 January to 31 December 2003  
 
9.  Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
4.1.5  Assistance to members of co-operatives in acquiring loans 
 Phased out 
 
4.1.6 Interest subsidy for bank loans for maximum one year, and for more than one year, 
government guarantee 
1.  Title of the subsidy programme 
 
Interest subsidy for loans of current assets and state credit guarantee programmes 
 
2.  Period covered by the notification 
 
 2003 
 
3.  Policy objective and/or purpose of the subsidy  
To assist producers in financing their costs of input materials. 
 
4.  Background and authority for the subsidy 
 
 Decree 3/2003 (I.24.) FVM of the Minister for Agriculture and Regional Development, 260.-
269. §  
5.  Form of the subsidy 
Interest subsidy Government guarantee 
 
6.  To whom and how the subsidy is provided 
 
 Producers, integrators 
 
7.  Subsidy per unit or the total amount 
 
Interest rate subsidy for bank loans for more than one year:
 
The interest rate subsidy is 40 per cent. Th e maximum amount of the loan is HUF 350 million 
in the case of individual producers, HUF 750 million in the case of integrators. 
 
Government guarantee:  
80 per cent for loans up to HUF 10 million. 70 per cent for loans over HUF 10 million 
 
Grant for the guarantee fee: 50 per cent of the guarantee fee. 
   G/SCM/N/123/EEC/Add.11 
Page 52  
 
  The guarantee fee is 1 per cent per year up to HUF 10 million. 
 Over HUF 10 million:  Up to 50 per cent of guarantee rate  1 per cent of the fee  51 to 60 per cent of guarantee rate  1.2 per cent of the fee  61 to 80 per cent of guarantee rate  1.5 per cent of the fee 
 
 Payments under this programme amounted to  HUF 9,483 million during the period covered 
by the notification.  
8.   Duration of the subsidy 
 
From 1 January to 31 December 2003 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
4.1.7  Interest subsidy for purchasing grain seed  with quality assurance necessary for the 1999 
sowing 
 
Phased out  
4.1.8 Government guarantee for HUF 16 billion lo an given to small companies in the canning 
sector 
 
Phased out 
 
4.1.9 Assistance to the renewal of agricultural machinery 
 
 Phased out 
 
4.1.10  Loan programme for agricultural development 
 
1.  Title of the subsidy programme  
Loan programme for agricultural development  
 
2.   Period covered by the notification  
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
To finance loans of agricultural production 
 
4.  Background and authority for the subsidy 
 
 Decree 30/2000 (III. 10.) Korm. of the Governme nt as amended by 85/2001 (V.30.) Korm. of 
Government and 82/2002 (III.10. ) Korm. of the Government 
  G/SCM/N/123/EEC/Add.11 
 Page 53 
 
 
 5.  Form of the subsidy 
 
Government guarantee 
Interest subsidy Grant 
 
6.   To whom and how the subsidy is provided 
 
In development loan programme: 
Agricultural producers 
 
In farmer credit programme: 
Producers cultivating maximum 300 hectares, with income up to HUF 50 million, employing 
maximum 10 persons, Fruit and vegetable producer, wholesale, pro cessing and marketing co-operations which did 
not receive state support 
 
In programme for improv ing quality production: 
 
Seed producers and traders 
Producers of fertiliser 
Producers cultivating 1 to 300 hectares 
Wholesale, processing and marketing co-operations 
 
7.   Subsidy per unit or the total amount 
 
In development loan programme: 50 per cent of the interest on loan, granted fo r three years, government guarantee for 80 per 
cent of the loan 
 
In farmer credit programme:: 
100 per cent of the interest on loan, granted for maximum ten years, government guarantee for 80 per cent of the loan 
 
In programme for improv ing quality production: 
100 per cent of the interest on loan granted for maximum one year, 
government guarantee for 80 per cent on loan, 
The interest rate subsidy is 100 per cent on loan for seed and fertiliser (PK) purchase, 
maximum HUF 10,000 per hectare for fertili ser, HUF 10,000 per hectare for seed.  
 
Payments under this programme amounted to HUF 12,367 million during the period covered 
by the notification.  
8. Duration of the subsidy 
 
From 1 January to 31 December 2003 
 
9.   Statistical data permitting an assessment of the trade effects of the subsidy 
  N.A. 
 G/SCM/N/123/EEC/Add.11 
Page 54  
 
 4.1.11  Loan programmes authorised with government guarantee in 2001 and assistance to 
investment in agricultural logistics in 2001-2002 
 1. Title of the subsidy programme   
 
 Loan programmes authorised with government guarantee in 2001 and assistance to 
investment  in agricultural logistics in 2001-2002 
 
2.   Period covered by the notification  
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
Assistance to development of agricultural technologies; purchasing new equipment; state 
guarantee and credit support for lo ng-term liabilities when invested in purchasing of food-processing 
plant under reorganisation schemes; investments of food processing and to agricultural logistic 
programmes.  
 
4.  Background and authority for the subsidy 
 
Decree 57/2001 (IX. 21.)  FVM of the Minister  for Agriculture and Regional Development 
 
5.   Form of the subsidy 
 
For agricultural development programmes: 
Government guarantee 
Interest subsidy 
 
For agricultural logistic programmes: 
 
Grant, Interest subsidy 
Government guarantee  
6.  To whom and how the subsidy is provided 
 
 Producers cultivating maximum 300 hectares, with income up to HUF 50 million, employing 
maximum 10 persons,  Fruit and vegetable producer, wholesale,  processing and marketing co-operations, 
 Food processor companies, with turnover up to HUF 4 billion per year, employing maximum 250 persons, working in the field of meat, poultry, fi sh, potato, fruit and vegetable, milk, flour-mill 
products, feeding-stuffs, spices, honey, wine processing. 
 
7.   Subsidy per unit or the total amount 
 
For agricultural development programmes: 
Government guarantee for 80 per cent of the loan  The interest rate subsidy is 60 per cent on the loan. 
  G/SCM/N/123/EEC/Add.11 
 Page 55 
 
 
 For agricultural logistic programmes: 
30 per cent of the cost of the investment 
60 per cent of the interest on loan up to HUF 1 b illion, granted for more than five but less than 
ten years, government guarantee for 50 per cent of the loan 
 
 Payments under this programme amounted to HUF 105 million during the period covered by 
the notification. 
 
8.  Duration of the subsidy 
 
From 1 January to 31 December 2003 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
4.1.12  Assistance to the settlement of loans granted for less than one year  
 
Phased out  
 
4.1.13  Interest rate subsidy for th e farm development of individual farms 
 
1.  Title of the subsidy programme  
Interest subsidy for loans for farm developments of individual producers 
 
2.   Period covered by the notification  
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
To assist producers in financing their costs of farm developments 
 
4.   Background and authority for the subsidy 
 
 Decree 3/2003 (I.24.) FVM of the Minister for Agriculture and Regional Development, 271.-
275. § 
 
5.   Form of the subsidy 
 
 Interest subsidy 
Government guarantee 
 
6.   To whom and how the subsidy is provided 
 
 Producers 
 
7.   Subsidy per unit or the total amount  
 Interest rate subsidy on the bank loan granted for more than 5 but less than 15 years: G/SCM/N/123/EEC/Add.11 
Page 56  
 
  The interest rate subsidy is 50 per cent for purchase of land up to 100 hectares, 40 per cent for 
purchase of land over 100 hectares. The interest rate  subsidy is 25 per cent on the loans granted in 
foreign currency.  An additional 10 per cent interest rate su bsidy is granted in case of family farms  
 
 The amount of the loan is minimum HUF 1, but maximum HUF 150 million in case of 
purchase of land, minimum HUF 1, but maximum HUF 100 million in case of development of establishment, buildings.  
  Government guarantee: 
  60 per cent of the loan. 
  Grant for the guarantee fee: 100 per cent of the guarantee fee. 
 
 Payments under this programme amounted to HUF 2 million during the period covered by the 
notification. 
 
8.  Duration of the subsidy 
 
From 1 January to 31 December 2003  
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
  N.A. 
 
4.2  Assistance to the production of certain agricultural products 
 
Phased out 
 
4.3  Assistance to the restructuring of the agricultural sector 
 
Phased out  
 4.4  Assistance to soil melioration and to irrigation investment 
 
1. Title of the subsidy programme  
 Assistance to soil melioration and to irrigation investment 
 
2.   Period covered by the notification 
 
2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
 To help maintain and improve fertility of arab le lands and facilitate th e security of production 
by establishment of irrigation equipment. 
 
4.  Background and authority for the subsidy 
 
 Decree 3/2003 (I. 24.) FVM of the Minister of Agriculture and Regional Development, 50.-
62. § 
  G/SCM/N/123/EEC/Add.11 
 Page 57 
 
 
 5.   Form of the subsidy 
 
Grants  
Interest subsidy   
6.   To whom and how the subsidy is provided  
 Producers 
 
7.   Subsidy per unit or the total amount 
 
40 per cent of the cost of investment, maximum HUF 50 million. 
. 40 per cent of the interest on loan granted for more than one year 
requirement: minimum 25 per cent of own capital of the investment cost 
 
Payments under this programme amounted to  HUF 3,470 million during the period covered 
by the notification. 
 
8.   Duration of the subsidy 
 
From 1 January to 31 December 2003  
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 4.5  Assistance for planting and restructuring forests and afforestation 
 
1.  Title of the subsidy programme 
 
 Assistance for planting and restructuring forests and afforestation 
 
2.   Period covered by the notification  
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
To provide assistance to planting and restructuring forests and afforestation. 
 
4.   Background and authority for the subsidy 
 
 Decree 3/2003 (I. 24.) FVM of the Minister of Agriculture and Regional Development, 38.-49. § 
 
5.   Form of the subsidy 
 
 Grant 
 
6.   To whom and how the subsidy is provided 
 
 Sylviculturists G/SCM/N/123/EEC/Add.11 
Page 58  
 
  
7.   Subsidy per unit or the total amount 
 
 Payments under this programme amounted to  HUF 4,943 million during the period covered 
by the notification. 
 
8.   Duration of the subsidy 
 
From 1 January to 31 December 2003 
 
9.  Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 
4.6  Payments for relief from environmental degradation of forests   
   
1.  Title of the subsidy programme 
 
 Payments for relief from environmental degradation of forests   
 
2.   Period covered by the notification 
  2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
To compensate for income losses due to th e environmental degradation of forests. 
 
4.   Background and authority for the subsidy 
 
 Decree 3/2003 (I. 24.) FVM of the Minister of Agriculture and Regional Development, 382.-
384. § 
 
5.   Form of the subsidy 
 
 Grant 
 
6.   To whom and how the subsidy is provided  
 Owners and tenants of forests  
 
7.   Subsidy per unit or the total amount 
 
 HUF 800 per gross cubic metre of timber  
   
Payments under this programme amounted to HUF  299 million during the period covered by 
the notification. 
 
8. Duration of the subsidy 
 
From 1 January to 31 December 2003   G/SCM/N/123/EEC/Add.11 
 Page 59 
 
 
 9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N. A. 
 
4.7  Refund of the consumption tax on diesel fuel 
 
1.  Title of the subsidy programme  
 Consumption tax refund on diesel fuel  
 
2.   Period covered by the notification  
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
To reduce the tax burden of producers.  
 
4.   Background and authority for the subsidy 
 
 Decree 216/1997 (XII. 1) Korm of the Government 
 
5.   Form of the subsidy 
 
 Tax refund 
 
6.   To whom and how the subsidy is provided  
Producers 
 
7.   Subsidy per unit or the total amount 
 
 Refund of 70 per cent of the consumption tax on diesel fuel.  
  Payments under this programme amounted to  HUF 20,085 million during the period covered 
by the notification.  
 
8.   Duration of the subsidy  
 Starting date: 1 January 1998 
 
Duration has not been specified.  
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
4.8  Assistance to the participation in insurance schemes  
 
1.  Title of the subsidy programme 
 
 Assistance to the participa tion in insurance schemes G/SCM/N/123/EEC/Add.11 
Page 60  
 
  
2.   Period covered by the notification 
 
 2003 
 
3.  Policy objective and/or purpose of the subsidy  
 To promote the enrolment of pr oducers in insurance schemes. 
 
4.   Background and authority for the subsidy 
 
 Decree 3/2003 (I. 24.) FVM of the Minister of Agriculture and Regional Development, 357.-
361. § 
 
5.   Form of the subsidy 
 
 Grant 
 
6.   To whom and how the subsidy is provided 
 
Producers   
7.   Subsidy per unit or the total amount 
 
 30 per cent of the insurance premium. 
 
Payments under this programme amounted to  HUF 4,665 million during the period covered 
by the notification. 
 
8.   Duration of the subsidy 
 
 From 1 January to 31 December 2003 
 
9.   Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 4.9  Payments for relief from natural disasters  4.9.1 Payments for relief from natural di sasters affecting plant cultivation in 1995 
 
 Phased out 
 4.9.2 Payments for relief from fireblight disease  
 Phased out 
 
4.9.3 Payments for relief from natural di sasters affecting plant cultivation in 1997 
  Phased out 
  G/SCM/N/123/EEC/Add.11 
 Page 61 
 
 
 4.9.4. Payments for relief from natural di sasters not covered by insurance policies  
 Phased out 
4.9.5  Assistance to provide relief from the damage caused by the extraordinary weather 
conditions in June and July 1999 
Phased out 
4.9.6  Assistance to provide relief from the damage caused by flood and internal water 
occurred in 1999 
 Phased out 
4.9.7  Assistance to the intervention of unharvested sugar beet 
 Phased out 
4.9.8  Assistance to moderate the damage caused by flood and internal water in 2000 
Phased out 
4.9.9 Assistance to land cultivation provided for the producers who incurred damage due to 
the drought in 2000 
 Phased out 
4.9.10 Assistance to provide relief from the da mage caused by flood and internal water in 
Szabolcs-Szatmár-Bereg county and Bereg region in 2001 
Phased out  
 
4.9.11 Assistance to provide relief from the dam age caused by frost to vineyards and orchards 
that occurred  in winter 2001 and in spring 2002  
 
1.  Title of the subsidy programme  
 
Assistance to provide relief from the damage cau sed by frost in winter 2001 and in spring 
2002 to vineyards and orchards that occurred   
 2.   Period covered by the notification  
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
To mitigate the damage caused to vineyards a nd orchards by frost in winter 2001 and in 
spring 2002  
 
4.   Background and authority for the subsidy 
 
Decree 53/2002 (VI. 25.) FVM of the Minister  of Agriculture and Regional Development 
 
5.   Form of the subsidy 
 
 Grant 
 G/SCM/N/123/EEC/Add.11 
Page 62  
 
 6.   To whom and how the subsidy is provided 
 
Producers 
 
7.   Subsidy per unit or the total amount 
 
50 per cent of damage caused by the frost 
 Payments under this programme amounted to  HUF 325 million during the period covered by 
the notification. 
 
8.   Duration of the subsidy 
 
 From 25 June to 31 December 2003 
 
9.   Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 
4.9.12  Assistance to provide relief from the damage caused by the storm occurred in 
9 August 2002 
 
1.  Title of the subsidy programme 
 
Assistance to provide relief from the damage cau sed by the storm occurred  in 9. August 2002 
 
2.  Period covered by the notification  
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
To mitigate the damage caused by  the storm occurred in 9 August 2002 
 
4.   Background and authority for the subsidy 
 
Decree 215/2002 (X. 17) Korm. of Government, 10 3/2002 (XI. 16.) FVM of the Minister of 
Agriculture and Regional Development  
 
5.   Form of the subsidy 
 
Grant 
 
6.   To whom and how the subsidy is provided  
Producers, producers located in Borsod-Abaú j-Zemplén, Heves and Nógrád county 
 
7.   Subsidy per unit or the total amount 
 
90 to 100 per cent refund of the loans granted for damaged producers  
 
Producers suffered damaged by drought are entitled to receive additional support for covering 
their losses:  G/SCM/N/123/EEC/Add.11 
 Page 63 
 
 
  
Rate of the losses:   Grant:  
25.01-35.00 per cent:   20 per cent of the losses 35.01 –per cent:    32 per cent of the losses 
 
Grant for damage: 50 per cent of the value of the damage, maximum: 
For cereals     HUF 32,000 per hectare For losses of new planted     orchards and vineyards    HUF 40,000 per hectare 
For losses of orchards and vineyards  HUF 110,000 per hectare 
 
For grassland  HUF 8,000 per hectare 
 
For losses of breeding animals 
HUF 20,000 per animal for sheep and pig 
HUF 500 per animal for poultry HUF 1,000 per animal for rabbit HUF 5,000 per family for bee 
 
For losses of feed stocks:  HUF 10,000 per tonnes 
 
Payments under this programme amounted to  HUF 9,873 million during the period covered 
by the notification.  
8.   Duration of the subsidy 
  From 17 October 2002 to 31 December 2003 
 
9.  Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 
4.10 Assistance to the organisation of wine-growing communities  
 Phased out 
 
4.11 Assistance to the utilisation of  advisory and extension services 
 
1. Title of the subsidy programme  
 Assistance to the utilisation of advisory  and extension services, training programmes 
 
2. Period covered by the notification 
 
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
 To promote the use of advisory and extension services, training programmes 
 G/SCM/N/123/EEC/Add.11 
Page 64  
 
 4. Background and authority for the subsidy 
 
Decree 3/2003 (I. 24.) FVM of the Minister of  Agriculture and Regional Development, 363.-
373. § 
 
5.   Form of the subsidy  
 Grant 
 
6.   To whom and how the subsidy is provided 
 
Producers, sylviculturists 
 
7.   Subsidy per unit or the total amount 
 
Producers with returns up to HUF 1 milli on can get free collective advisory service 
25 to 75 per cent of advisory fee based on turnover of producers with returns over HUF 1 
million 
75 per cent for young farmers (age under 40)  Maximum 50 per cent of the costs of training, expert meetings, publishing, maximum HUF 3 
million, 
The costs of the education of advisory expe rts and development of advisory information 
technology.  
 Payments under this programme amounted to  HUF 1,196 million during the period covered 
by the notification. 
 
8.   Duration of the subsidy 
 
 From 1 January to 31 December 2003 
 
9.   Statistical data permitting an assessmen t of the trade  effects of the subsidy 
  N.A. 
 
4.12 Assistance to the “Borsod-Abaúj-Zemplén” region 
 
 Phased out 
 
4.13  Assistance to the maintenance of recreational and park woods  
1. Title of the subsidy programme  
 Assistance to the main tenance of recreational and park woods 
 
2.   Period covered by the notification 
 
 2003 
  G/SCM/N/123/EEC/Add.11 
 Page 65 
 
 
 3.   Policy objective and/or purpose of the subsidy 
 
To co-finance the costs of maintaining forest fa cilities such as botanical gardens, parking lots, 
green corridors and hiking paths.  
4.   Background and authority for the subsidy  
Decree 3/2003 (I.24.) FVM of the Minister of Agriculture and Regional Development, 121.-
124. §  
 
5.   Form of the subsidy  
 Grant 
 
6.  To whom and how the subsidy is provided 
 
 Operator of forest facilities 
 
7.   Subsidy per unit or the total amount 
 
 100 per cent of the investment costs.  
 Payments under this programme amounted to  HUF 240 million during the period covered by 
the notification.  
8   Duration of the subsidy 
 
 From 1 January to 31 December 2003 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
  
 N.A. 
 
4.14  Assistance to tobacco  
 1.  Title of the subsidy programme 
 
 Assistance to the production of tobacco  
 
2.   Period covered by the notification 
 
 2003 
 
3.   Policy objective and/or purpose of the subsidy  
 To encourage quality production  
 
4.   Background and authority for the subsidy 
 
16/2002 (II.16.) FVM of the Minister for Agriculture and Regional Development  
34/2003.(III.31.)FVM of the Minister for Agriculture and Regional Development 
 G/SCM/N/123/EEC/Add.11 
Page 66  
 
 5.   Form of the subsidy 
 
Grant 
 
6.   To whom and how the subsidy is provided 
 
Producers  
 
7.   Subsidy per unit or the total amount 
 
HUF 56 000 per ton for the group of Virginia  
AV-BV  HUF 46 000 per ton for the group of Virginia BI-Anya HUF 35 000 per ton for the group of Kállói-Pallagi "A" 
 HUF 30 000 per ton for the group of Kállói-Pallagi "B" 
 
Payments under this programme amounted to HUF  331 million during the period covered by 
the notification.  
8.   Duration of the subsidy 
 
 From 3 March 2002 to 30 December 2003 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
N.A. 
 
4.15   Assistance to potatoes  
 
1. Title of the subsidy programme  
 Assistance to the production of potato for human consumption 
 
2.   Period covered by the notification 
 
 2003 
 
3. Policy objective and/or purpose of the subsidy  
 To encourage quality production  
 
4. Background and authority for the subsidy 
 
102/2001 (XII.16.) §234 FVM of the Minister  for Agriculture and Regional Development 
 
5. Form of the subsidy 
 
Grant  
6.   To whom and how the subsidy is provided 
 
Producers  
  G/SCM/N/123/EEC/Add.11 
 Page 67 
 
 
 7.   Subsidy per unit or the total amount 
 
HUF 40 000 per ha 
The maximum subidised area: 4000 ha  
 
Payments under this programme amounted to HUF  4 million during the period covered by the 
notification.  
8.   Duration of the subsidy 
 
 From 1 January 2002 to 23 January 2003 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
4.16  Assistance to stabilise the egg market 
 
1. Title of the subsidy programme  
Assistance to stabilise the egg market  
2.   Period covered by the notification 
 
 2003 
 
3.   Policy objective and/or purpose of the subsidy  
 To re-establish the equilibrium be tween domestic supply and demand  
 
4.   Background and authority for the subsidy 
  
102/2001 (XII.16.) §192 FVM of the Minister for Agriculture and Regional Development  
88/2002 (X.1.)  FVM of the Minister fo r Agriculture and Regional Development 
3/2003 (I.24.)  §244 FVM of the Minister for Agriculture and Regional Development 
 
5.   Form of the subsidy 
 
Grant 
 
6.   To whom and how the subsidy is provided 
 
Producers  
 
7.   Subsidy per unit or the total amount 
 
HUF 20 per kg hen (live weight) 
From 9 October 2002 extra HUF 4 per egg. 
 
Payments under this programme amounted to HUF  56  million during the period covered by 
the notification.  G/SCM/N/123/EEC/Add.11 
Page 68  
 
 8.   Duration of the subsidy 
 
 From 16 December 2001 to 30 December 2003 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
  N.A. 
 
4.17  Intervention support for quality production of game birds 
 
 Phased out 
 
4.18  Assistance to beekeepers 
 
The description of the measure can be found under 4.42. 
 
4.19  Assistance to the establishment of environmentally friendly crop structure 
 
 Phased out 
 
4.20  Assistance to the transition to or ganic production (and establishment of agro-
envirometal regions) 
 
Phased out  
 
4.21 Assistance to stabilisation of the cereal market 
 
Phased out 
 
4.22 Intervention assistance to producers of wheat for feeding purposes for selling their crop 
 
 Phased out  
 
4.23 Assistance to the maintenance and de velopment of the statistical data-bases of 
producers’ councils 
 
1. Title of the subsidy programme  
Assistance to the maintenance and development of the statistical data-bases of producers’ 
councils 
 
2.   Period covered by the notification 
  
 2003 
 
3.   Policy objective and/or purpose of the subsidy  
 Statistical monitoring of the agricultural sector.  
  G/SCM/N/123/EEC/Add.11 
 Page 69 
 
 
 4.   Background and authority for the subsidy 
 
 Decree 102/2001 (XII.16.) 185. § FVM of the Minister of Agriculture and Regional 
Development   Decree 3/2003.(I.24.) 193.§ FVM of the Minist er of Agriculture and Regional Development 
 
5.  Form of the subsidy 
 
 Grant 
 
6.   To whom and how the subsidy is provided  
 Producers’ councils 
 
7.   Subsidy per unit or the total amount 
 
Payments under this programme amounted to HUF  34 million during the period covered by 
the notification.  
8.   Duration of the subsidy 
 
 From 1 January 2002 to 30 December 2003 
 
9.   Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 
4.24 Assistance to the improvement of competitiveness 
 
Phased out. 
 
4.25  Assistance to the reduction of costs relating to the rental of agricultural land 
  Phased out 
 
4.26  Assistance to socially disadvantaged agricultural communities 
 
1.  Title of the subsidy programme 
 
Assistance to socially disadva ntaged agricultural communities 
 
2.   Period covered by the notification  
 
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
To provide assistance to socially disadvantag ed agricultural commun ities for local family 
farming.   
 G/SCM/N/123/EEC/Add.11 
Page 70  
 
 4.   Background and authority for the subsidy 
 
Decree 3/2003 (I. 24.) FVM of the Minister of  Agriculture and Regional Development, 374.-
376. §  
5.   Form of the subsidy  
Grant 
 
6.   To whom and how the subsidy is provided 
 
 Local governments   
 
7.   Subsidy per unit or the total amount 
 
50 per cent of the cost of purchasing seed, breeding animals, propagating material and 
agricultural services.  
Payments under this programme amounted to  HUF 56 million during the period covered by 
the notification. 
 
8.   Duration of the subsidy  
 From 1 January to 31 December 2003 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
4.27 Assistance to the construction and modernisation of rural roads 
 
 Phased out 
 4.28 Assistance to the service of field wardens  
1. Title of the subsidy programme  
Assistance to the establishment of field warden services 
 
2.  Period covered by the notification 
  
 2003 
 
3.   Policy objective and/or purpose of the subsidy  
 To ensure the establishment and efficient operation of field wardens.  
 
4.   Background and authority for the subsidy 
 
Decree 24/2003 (III. 11.) FVM and PM of the Minister of Agriculture and Regional 
Development and Minister of Finance   G/SCM/N/123/EEC/Add.11 
 Page 71 
 
 
 5.   Form of the subsidy 
 
Grant 
 
6.   To whom and how the subsidy is provided 
 
 Local governments 
 
7.   Subsidy per unit or the total amount 
 
Grant for establishment: 50 per cent of the cost of establishment, maximum HUF 300,000. 
 
50 per cent of the cost of operation of field warden service, maximum HUF 50,000 per capita 
per quarter year.  
 Payments under this programme amounted to HUF 440 million during the period covered by 
the notification. 
 
8.   Duration of the subsidy 
 
 From 11 March to 31 December 2003 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 4.29 Assistance to young farmers (and to th e employment of young agricultural experts) 
 
1.  Title of the subsidy programme 
 
Assistance to young farmers and to the em ployment of young agricultural experts 
 
2.   Period covered by the notification   
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
To encourage the agricultural activities of young farmers and employment of young 
agricultural experts  
4.   Background and authority for the subsidy 
 
Decree 3/2003 (I. 24.) FVM of the Minister of Agriculture and Regional Development, 22-
37. § 
 
5.  Form of the subsidy 
 
Grant  
Interest subsidy 
 G/SCM/N/123/EEC/Add.11 
Page 72  
 
 6.   To whom and how the subsidy is provided 
 
Producers under the age of 40 cultivating maximum 300 hectares, 
Agricultural firms with returns over HUF 30 million per year, purchasing and sales co-
operatives with more than 20 members,  producin g and sales co-operatives, non-profit organisations 
providing machinery service to agriculture with more than 50 member, employing young agricultural 
experts  
7.   Subsidy per unit or the total amount 
 
 Assistance to young farmers: 
Grant : 30 per cent of the purchase price or investme nt cost of buying land, on-farm facilities, 
animals, feed stuffs, fertilisers.  The maximum amount of grant per farmer is HUF 30 million. 
  
Interest subsidy: 80 per cent of the basic inte rest rate of the National Bank of Hungary on 
loans up to HUF 45 million, maximum 45 per cent of the cost of the investment received for the above-mentioned purposes for maximum ten years  
For employing young agricultural experts: 
Grant, 60 per cent of the wage for 36 months 
One organisation can apply only for the employment of one expert  Payments under this programme amounted to HUF  314 million during the period covered by 
the notification. 
 
8.   Duration of the subsidy 
 
 From 1 January to 31 December 2003 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
  N.A. 
 
4.30 Assistance to agricultural employment 
 
 Phased out 
 
4.31  Assistance to the school milk programme 
 
 Phased out 
 4.32 Assistance to the purchasing of the required amount of maize for feeding purposes   
Phased out 
  
4.33.1 Additional assistance to the storage of maize harvested in 1998 for feeding purposes in 
public warehouses 
 
Phased out 
  G/SCM/N/123/EEC/Add.11 
 Page 73 
 
 
 4.33.2 Assistance to the storage of maize fo r feeding purposes harvested in 1999 in public 
warehouses 
 
Phased out   
   4.33.3  Assistance to the storage of maize for feeding purposes harvested in 2001 in public 
warehouses 
 
1.  Title of the subsidy programme  
Additional assistance to the storage of maize for feeding purposes harvested in 2001 in public 
warehouses  
 
2.   Period covered by the notification 
  
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
To provide assistance to the storage of ma ize harvested in 2001 in public warehouses. 
 
4.   Background and authority for the subsidy  
Decree 74/2001 (X. 11.) FVM  of the Minister  of Agriculture and Regional Development 
 
5.   Form of the subsidy 
 
 Interest subsidy 
 Grant  
6.   To whom and how the subsidy is provided 
 
 Producers 
 
7.   Subsidy per unit or the total amount 
 
Interest subsidy of 100 per cent of the basic in terest rate of the Na tional Bank of Hungary on 
loans which have the stored commodity as collateral.  
  
Storage support: HUF 15 per ton per week, for a period of maximum one year. 
 
Payments under this programme amounted to HUF  15 million during the period covered by 
the notification. 
 
8.   Duration of the subsidy 
 
 From 11 October 2001 to 17 December 2003 
 9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 G/SCM/N/123/EEC/Add.11 
Page 74  
 
 4.33.4  Assistance to the storage of maize for feeding purposes harvested in 2002 in public 
warehouses 
 
1.  Title of the subsidy programme  
 Additional assistance to the storage of maize for feeding purposes harvested in 2002 in public 
warehouses  
 
2.   Period covered by the notification 
  
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
To provide assistance to the storage of ma ize harvested in 2002 in public warehouses. 
 
4.  Background and authority for the subsidy 
 
Decree 95/2002 (X. 11.) FVM  of the Minister  of Agriculture and Regional Development 
 
5.   Form of the subsidy 
 
 Interest subsidy 
 Grant  
6.   To whom and how the subsidy is provided 
 
 Producers 
 
7.   Subsidy per unit or the total amount 
 
Interest subsidy: 100 per cent of the basic in terest rate of the National Bank of Hungary  
Storage support: HUF 15 per ton per week 
 Payments under this programme amounted to  HUF 1,176 million during the period covered 
by the notification.  
8.   Duration of the subsidy  
 From 7 October 2002 to 17 December 2003 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
4.34 Wheat exchange transaction 
 
Phased out 
 
4.35  Assistance to the purchase of wheat seed for the 1998 autumn sowing 
 
Phased out    G/SCM/N/123/EEC/Add.11 
 Page 75 
 
 
  
4.36 Interest subsidy to loans received for the pu rchase of apple in bulk harvested in 1997 for 
processing purposes 
 
Phased out 
 
4.37 Interest subsidy on loans received for the purchase of apple in bulk harvested in 1998 
 
Phased out 
 
4.38 Intervention assistance to th e selling of wheat for feeding purposes 
 
Phased out  
4.39 Market intervention related to duck production  
 
4.40  Quality-linked support to the production of sugar beet  
 
1. Title of the subsidy programme  
 Quality-linked support to the production of sugar beet  
 
2.  Period covered by the notification 
  
 2003 
 
3.   Policy objective and/or purpose of the subsidy  
 To encourage quality production  
 
4.  Background and authority for the subsidy 
 
102/2001. (XII.16.) FVM of the Minister fo r Agriculture and Regional Development  
 
7.   Subsidy per unit or the total amount 
 
HUF 25 000 per ha 
 
Payment under this programme amounted to HUF  350 million  during the period covered by 
the notification.  
8.  Duration of the subsidy 
 
 From 1 January 2002 to 24 January 2003 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
  
 N.A. 
 G/SCM/N/123/EEC/Add.11 
Page 76  
 
 4.41 Emergency income support to certain producers of cereals  
 
Phased out  
4.42 Assistance to reduce certain sanitary- and phytosanitary costs  
 
1.  Title of the subsidy programme 
 
Assistance to reduce the sanita ry- and phytosanitary costs.  
 
2.  Period covered by the notification   
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
 To reduce the sanitary and phytosanitary costs 
 
4.   Background and authority for the subsidy 
 
Decree 109/1997.(XI.30.)FVM §213,FVM of  the Minister for Agriculture and Regional 
Development 
 
Decree 6/2000. (II.26.) FVM, §190; FVM of th e Minister for Agriculture and Regional 
Development  
Decree 102/2001 (XII. 16.) §196, §199, §200, §203, §209, §210-213, 
§215,§217,§219,§220,§222,§232,§414,FVM of the Minister for  Agriculture and Regional Development  
Decree 3/2003.(I.24) §203, §204, §205, §208, §209, §214-219, §221, §222, §223, §225, §227, 
§229, §230, §232, §233, §236, FVM of the Minister for Agriculture and Regional Development 
 
5.   Form of the subsidy 
 
Grant 
 6.   To whom and how the subsidy is provided  
Producers 
 
7.   Subsidy per unit or the total amount 
 
Sanitary cost compensation: 
 
medical costs of bee colonies   Maximum HUF 500 per colony         
vaccination for pig for slaughter   HUF 1300-1500 per animal pig for slaughter    HUF 100-227 per animal  
cattle for slaughter   HUF 350-500 per animal  
poultry for slaughter    HUF 1.6  per kg rabbit for slaughter     HUF 12 per animal (veterinary control)   G/SCM/N/123/EEC/Add.11 
 Page 77 
 
 
 game      HUF 30-70 per kg  
     HUF 4.90-1150 per animal duck     HUF 20 per animal goose     HUF 33 per animal 
pig     HUF 100  per animal 
cattle     HUF 26 per kg 
poultry     HUF 26 per kg rabbit     HUF 26 per kg  medical control for sheep and 
goat for slaughter   HUF 40 per animal 
  Phytosanitary cost compensation 
 
seed production    50 per cent of the phytosanitary costs 
 arable and  horticultural areas  
and nurseries    50 per cent of the phytosanitary costs propagating material of  forestry tree species   50 per cent of the phytosanitary costs  laying hen    HUF 25 per animal  
waste management HUF 20-26 per kg (pig ,cattle, pourtry, rabbit, 
game, sheep, goat,)  
 
Payments under this programme amounted to  HUF 9,666 million during the period covered 
by the notification.  
8.   Duration of the subsidy  
 From 1 January 1998 to 30 December 2003 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
4.43 Assistance to the production of sowing seed  
 
1.  Title of the subsidy programme 
 
Assistance to the production of sowing seed  
 
2.   Period covered by the notification 
  
 2003 
 
3.  Policy objective and/or purpose of the subsidy 
 
 To reduce the cost of the sowing seed production 
 
4.   Background and authority for the subsidy  
 Decree 102/2001 (XII. 16.)  FM of the Minister of Agriculture 
 G/SCM/N/123/EEC/Add.11 
Page 78  
 
 5. Form of the subsidy 
 
Grant  
6.   To whom and how the subsidy is provided 
 
 Producers 
 
7.   Subsidy per unit or the total amount 
 
50 per cent of the cost of qualification 
 
Payments under this programme amounted to HUF 90.5 million during the period covered by 
the notification. 
 
8.   Duration of the subsidy  
 From 16 December 2001 to 23 January 2003 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
4.44  Assistance to the purchase of the required amount of cereals for feeding and of wheat 
for milling purposes   
 
Phased out 
 
4.45.1 Assistance to the storage in public warehouse of wheat harvested in 1998  
 
Phased out   
 4.45.2  Assistance to the storage in public warehouse of wheat harvested in 2001 
 1.  Title of the subsidy programme 
 
Assistance to the storage in public warehouse of wheat harvested in 2001 
 
2.   Period covered by the notification 
  
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
To provide assistance to the storage of wh eat harvested in 2001 in public warehouses. 
 
4.   Background and authority for the subsidy  
Decree 46/2001 (VI.25.) FVM  of the Minister  of Agriculture and Regional Development 
  G/SCM/N/123/EEC/Add.11 
 Page 79 
 
 
 5.   Form of the subsidy 
 
 Grant 
Interest subsidy  
6.   To whom and how the subsidy is provided  
 Producers 
 
7.   Subsidy per unit or the total amount 
 
 Interest subsidy: 100 per cent  
  
 Storage support: HUF 10-20 per ton per week  
Payments under this programme amounted to HUF  33 million during the period covered by 
the notification.  
8. Duration of the subsidy 
 
 From 25 June 2001 to 17 December 2003 
 
9.   Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 
4.45.3  Assistance to the storage in public warehouse of wheat harvested in 2002 
1.  Title of the subsidy programme 
 
Assistance to the storage in public warehouse of wheat harvested in 2002 
 
2.   Period covered by the notification 
  
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
To provide assistance to the storage of wheat  harvested in 2002  in public warehouses. 
 
4.   Background and authority for the subsidy 
 
Decree 56/2002 (VII. 17.) FVM  of the Minister of Agriculture and Regional Development 
 
5.   Form of the subsidy  
Grant 
 
Interest subsidy 
 G/SCM/N/123/EEC/Add.11 
Page 80  
 
 6.   To whom and how the subsidy is provided 
 
  Producers 
 
7. Subsidy per unit or the total amount 
 
Interest subsidy:  100  per cent on the loan 
 Storage support: HUF 15 per ton per week 
 
Payments under this programme amounted to HUF  1,796 million during the period covered by the 
notification. 
 
8.  Duration of the subsidy 
 
 From 17 June 2002 to 17 December 2003 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 4.46 Assistance to introduce the HACCP system of quality management  
 
1.  Title of the subsidy programme  
Assistance to introduce the HACCP system of quality management and  food safety 
 
2.   Period covered by the notification 
  
2003 
 
4.   Background and authority for the subsidy 
 
Decree 15/2001 §177 FVM Minister of Ag riculture and Regional Development 
 Decree 102/2001.(XII.16.) §187,§188,§190, FVM Mi nister of Agriculture and Regional 
Development 
Decree 3/2003.(I.24.) FVM Minister of Ag riculture and Regional  Development 
 
6.   To whom and how the subsidy is provided 
 
Companies dealing with retail or wholesale business 
 
7.   Subsidy per unit or the total amount 
 
Maximum 50 per cent of the costs.  
  Payments under this programme amounted to HUF 150 million during the period covered by 
the notification. 
  
8.   Duration of the subsidy  
 
From 3 March 2001 to 30 December 2003  G/SCM/N/123/EEC/Add.11 
 Page 81 
 
 
  
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
N.A. 
 4.47  Intervention support to maintain the EU approved level of hygiene of pig and cattle 
slaughterhouses  
 
 Phased out  4.48  Assistance to organisations pr oducing and selling fruit and vegetables 
 
 Phased out 
 
4.49  Assistance to research and development of co-operatives 
  Phased out 
 
4.50 Assistance to programmes of agricultural structure and rural development  
 
 Phased out 
 
4.51 Assistance to technical development 
 
Phased out in 2000 
 4.52 Assistance to genetic development 
  
Phased out  
 
4.53  Assistance to plant protection against the damage caused by non-indigenous disease 
 
1.  Title of the subsidy programme 
 
Assistance to plant protection against non-indigenous  disease 
 
2.   Period covered by the notification 
  
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
Assistance to the additional plant protection costs caused by non-indigenous  disease 
 
4.   Background and authority for the subsidy 
 
 Decree 3/2003 (I. 24.) FVM of the Minister of Agriculture and Regional Development, 377.-
381. § 
 G/SCM/N/123/EEC/Add.11 
Page 82  
 
 5.   Form of the subsidy 
 
 Grant 
 
6.   To whom and how the subsidy is provided 
 
Organisations, producers 
 
7.  Subsidy per unit or the total amount 
 
 100 per cent of the costs of chemicals used for plant protection against non-indigenous 
disease   Payments under this programme amounted to HUF 152 million during the period covered by 
the notification. 
 
8.   Duration of the subsidy 
 
 From 1 January to 31 December 2003 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
  N.A. 
 
4.54  Assistance to regional development 
 
4.54.1  Assistance to territorial development 
 
Phased out 
 
4.54.2  Assistance to rural development 
 
Phased out 
 
4.54.3  Assistance to the development of rural areas 
 
1.  Title of the subsidy programme 
 
 Assistance to the development of small regions , marketing of traditional and special regional 
products, agri-environmental protection projects and the basic service for the rural habitants 
 
2.  Period covered by the notification 
 
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
 Assistance to rural development, especially th e development of small regions, marketing of 
traditional and special regional products, agro-envi ronmental protection projects and the basic service 
for the rural habitants   G/SCM/N/123/EEC/Add.11 
 Page 83 
 
 
 4.   Background and authority for the subsidy 
 
 Decree 3/2003 (I. 24.) FVM of the Minister of Agriculture and Regional Development, 93.-
100   
5.   Form of the subsidy  
 Grant 
  Interest subsidy 
 
6.   To whom and how the subsidy is provided 
 
Inhabitants, organisations, producers, local governments 
 
7.   Subsidy per unit or the total amount  
For the planning and realisation of innovative small region development projects:  
 
90 per cent of the cost of planning of the project, maximum HUF 4,5 million. 
50 to 90 per cent of the cost of realisation, maximum HUF 30 million. 
 
For marketing of traditional an d special regional products: 
50 per cent of the cost, maximum amount is HUF 2 to 15 million. 
 
For development of agri-environmental protection projects: 
50 per cent of the cost, maximum amount is HUF 10 million. 
 
 Payments under this programme amounted to  HUF 4,156 million during the period covered 
by the notification.  
8.   Duration of the subsidy 
 
 From 18 June to 31 December 2003 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
4.54.4  Assistance to the promotion of rural areas 
 
1.  Title of the subsidy programme  
Assistance to rural development 
 
2.   Period covered by the notification 
 
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
 Assistance to rural development, especially establishment of pilot farms, agri-environment 
protection projects, “forest schools” G/SCM/N/123/EEC/Add.11 
Page 84  
 
  
4.   Background and authority for the subsidy 
 
 Decree 3/2003 (I. 24.) FVM of the Minister of Agriculture and Regional Development, 101.-
103. § 
 
5.  Form of the subsidy 
 
Grant 
 
6.  To whom and how the subsidy is provided  
Producers, organisations  
 
7.   Subsidy per unit or the total amount 
 
 80 per cent of the certificated cost, plus  10 per cent for the general cost, maximum 
HUF 500,000. 
 
 Payments under this programme amounted to HUF 950 million during the period covered by 
the notification. 
 
8.   Duration of the subsidy 
 
 From 29 June to 31 December 2003 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
      N.A. 
 
4.55 Payments for relief from da mage caused by wild animals  
  
1.  Title of the subsidy programme 
Payments for relief from damage caused by wild animals 
 
2.   Period covered by the notification 
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
Assistance to reduce the damage  caused by wild animals 
 
4.   Background and authority for the subsidy 
Decree 30/1997 (IV. 30.) FVM of the Minister  of Agriculture and Regional Development 
 
5.   Form of the subsidy 
 Grant 
  G/SCM/N/123/EEC/Add.11 
 Page 85 
 
 
 6.   To whom and how the subsidy is provided 
Producers 
 
7.   Subsidy per unit or the total amount 
 
No payments occurred  under this programme during the period covered by the notification. 
 
8.  Duration of the subsidy 
 
 From 1 January to 31 December 2003  
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 4.56 Assistance to the market for  pig for slaughter  
 
Phased out 
 
4.57  Assistance to the storage in public wareh ouse of barley, rye and triticale harvested in 
1998  
 
Phased out 
4.58  Area-based payment for crop production 
 
1.  Title of the subsidy programme 
 
Area based payment for crop production 
 
2.   Period covered by the notification 
  
2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
 To assist the crop production, to increase the income potential of small farms, to moderate the 
disadvantage of small-scale farming 
  
4.   Background and authority for the subsidy 
 
 Decree 3/2003 (I.24.) FVM of the Minister of Agriculture and Regional Development, 252.-
258. § 
 
5.   Form of the subsidy  
Grant, interest subsidy 
 
6.   To whom and how the subsidy is provided 
 
Producers and research, education organisations, cultivating more than 1.01 hectare 
 G/SCM/N/123/EEC/Add.11 
Page 86  
 
 7.   Subsidy per unit or the total amount 
  
 Grant:
 
  cereals (wheat, durum wheat, rye,  
 triticale, oat, maize, broomcorn,  
 buckwheat, millet, meslin) HUF 7,000 per hectare  protein crops (dry pea, chick-pea,   bean, white lupine, lentil),: HUF 7,000 per hectare  oilseeds (sunflower, rape,  
 soy bean, flax)  HUF 7,000 per hectare 
 fibre crops (hemp and flax): HUF 7,000 per hectare  rice: HUF 35,000 per hectare   For family farm concerning the above-mentioned production: HUF 9,000 per hectare 
 
 For producers cultivating 1.01-3.0 hectares,   with less than HUF 400,000 yearly returns:  HUF 10,000 per hectare   (for arable land, vineyards, orchards and fish ponds)  
 HUF 10,000 per animal (for heavy livestock, pig, sheep and goat) 
  Interest subsidy
: 
  For producer organisations for the purposes of buying fertiliser: 
 interest subsidy for loan granted for maximum one year, maximum HUF 15,000 per hectare 
  For fertiliser producers: 50 per cent of interest subsidy   Payments under this programme amounted to  HUF 24,943 million during the period covered 
by the notification. 
 
8.   Duration of the subsidy 
 
 From 1 January to 31 December 2003 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A.  
 
4.59  Assistance to the quality control of certain foods 
 
1.  Title of the subsidy programme 
 
Assistance to quality control of certain foods 
  
2.   Period covered by the notification 
 
2003 
  G/SCM/N/123/EEC/Add.11 
 Page 87 
 
 
 3.   Policy objective and/or purpose of the subsidy 
 
To provide assistance to the quality control of certain foods 
 
4.   Background and authority for the subsidy 
 
 Decree 3/2003 (I.24.) §237,238,139,242, FVM Minister of Agriculture and Regional 
Development 
 
 Decree 102/2001 (XII.16.) §223, §224,§228, FVM Minister of Agriculture and Regional 
Development 
 
5.   Form of the subsidy 
 
 Grant 
 
6.   To whom and how the subsidy is provided 
 
Producers 
 
7.   Subsidy per unit or the total amount 
 50 per cent of the costs of the quality control 
 
 Payments under this programme amounted to HUF 77 million during the period covered by 
the notification.  
 
8.  Duration of the subsidy 
 
From 16 December 2001 to 30 December 2003 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
      N.A.  4.60 Assistance to the testing of agricultural machines and technology 
 
1.  Title of the subsidy programme 
 
Assistance to testing of agricultura l machines and technological equipment 
 
2.   Period covered by the notification 
  
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
Assistance to testing of agricultura l machines and technological equipment 
 
4.   Background and authority for the subsidy 
 
 Decree 3/2003 (I.24.) FVM. of the Minister of  Agriculture and Regional Development, 16. § G/SCM/N/123/EEC/Add.11 
Page 88  
 
  
5.   Form of the subsidy 
 
 Grant 
 
6.   To whom and how the subsidy is provided  
Organisations in the filed of testing of ag ricultural machines and technological equipment 
 
7. Subsidy per unit or the total amount 
 
90 per cent of the cost  
  Payments under this programme amounted to HUF 133 million during the period covered by 
the notification. 
 
8. Duration of the subsidy 
 
 From 1 January to 31 December 2003 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
   N.A. 
 
4.61 Assistance to the trade of products origin ating from the ecological fishing of silver carp 
in Lake Balaton  
 
1.  Title of the subsidy programme 
 
 Assistance to the trade of products originati ng from the ecological fishing of carp and silver 
carp in Lake Balaton   
2.  Period covered by the notification   
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
To support the ecological fishing of silver carp  
 
4.   Background and authority for the subsidy 
 
 102/2001 (XII.16.) §231 FVM of the Minister  for Agriculture and Regional Development  
 3/2003.(I.24.) § 256, 247 FVM of the Minist er for Agriculture and Regional Development 
 
5.   Form of the subsidy 
 
Grant 
 
6.   To whom and how the subsidy is provided 
 
     Producers   G/SCM/N/123/EEC/Add.11 
 Page 89 
 
 
  
7.   Subsidy per unit or the total amount 
 
HUF 15-35 per kg for the purchased carp and silver carp  
HUF 250 per kg for the product made from the silver carp  
 
 Payments under this programme amounted to HUF  52 million  during the period covered by 
the notification.  
8.   Duration of the subsidy 
 
 From 1 January 2002 to 30 December 2003   
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
4.62  Quality-linked support to the production of game meat  
 
1.  Title of the subsidy programme  
 Quality-linked support to th e production of game meat  
 
2.   Period covered by the notification 
  
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
 To encourage quality production  
 
4.   Background and authority for the subsidy 
 
102/2001 (XII.26.) §246 FVM of the Minister for Agriculture and Regional Development  
 
5.  Form of the subsidy 
 
Grant 
 
6.   To whom and how the subsidy is provided 
 
Producers  
 
7.   Subsidy per unit or the total amount 
 
 HUF 90 per kg 
 
 Payments under this programme amounted to HUF 86 million during the period covered by 
the notification. 
 
8. Duration of the subsidy 
 
 From 1 January 2002 to 23 January 2003 G/SCM/N/123/EEC/Add.11 
Page 90  
 
  
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 4.63  Assistance to on-farm education  
 
1.  Title of the subsidy programme 
 
Assistance to the investments of on-farm educa tion, pilot projects, extension service centres 
 
2.   Period covered by the notification 
  
     2003 
 
3. Policy objective and/or purpose of the subsidy  
Assistance to the investments of on-farm education, pilot projects 
 
4.  Background and authority for the subsidy 
 
 Decree 102/2001 (XI.16.) FVM. of the Minister of Agriculture and Regional Development, 
266.-267. §  
5.  Form of the subsidy 
 
Grant 
 
6.   To whom and how the subsidy is provided 
 
Farms of educational organisations 
Producers entitled to operate pilot project 
 
7.   Subsidy per unit or the total amount 
 
Maximum amount of the grant is  
For on-farm education  
of universities     HUF 30 to 60 million 
For pilot projects    HUF 5 million For on-farm education of  secondary schools  founded by the Ministry of Agriculture  and Regional Development   HUF 30 million 
 
The maximum amount of the grant is: 90 per cent of the operation cost of secondary schools not founded by the Ministry Agriculture and Regional Development 50 per cent of the operation cost of pilot projects 
 
 Payments under this programme amounted to HUF 182 million during the period covered by 
the notification.   G/SCM/N/123/EEC/Add.11 
 Page 91 
 
 
 8  Duration of the subsidy 
 
 From 1 January to 31 December 2003 
 
9.  Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
4.64.1  Assistance to the storage in public warehouse of wheat harvested in 1999 
 
Phased out  
  
4.65 Assistance to agricultural research instit utes with research and development activities 
 
 Phased out 
 
4.66 Assistance to establish facilities of inland waterways 
 
1.  Title of the subsidy programme  
Assistance to establish of facilities of inland waterways on arable land 
 
2.   Period covered by the notification 
  
 2003 
 
3.   Policy objective and/or purpose of the subsidy  
Assistance to modernisation, operation of facilities of inland waterways on arable land 
 
4.   Background and authority for the subsidy 
 
 Decree 3/2003 (I.24.) FVM. of the Minister of Agriculture and Regional Development, 347.-
355 § 
 
5.  Form of the subsidy 
 
 Grant 
 
6.   To whom and how the subsidy is provided 
 
Local governments, water associations 
 
7.   Subsidy per unit or the total amount  
75 per cent of the cost of investment for associations 
100 per cent of the cost of investment for local governments  
Grant for operation costs. 
 
 Payments under this programme amounted to  HUF 2,664 million during the period covered 
by the notification.  G/SCM/N/123/EEC/Add.11 
Page 92  
 
 8.  Duration of the subsidy 
 
 From 1 January to 31 December 2003 
 
9.   Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 
4.67  Quality-linked support for maize for human consumption  
 
1.  Title of the subsidy programme 
 
      Quality-linked support for maize for human consumption  
 
2.  Period covered by the notification 
  
       2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
To provide assistance to the quality production of maize 
 
4.   Background and authority for the subsidy 
 
102/2001 (XII. 16.) §234 FVM of the Minister  for Agriculture and Regional Development 
 
5.   Form of the subsidy  
       Grant 
 
6.   To whom and how the subsidy is provided 
 
       Producers    
 
7.   Subsidy per unit or the total amount 
 
HUF 5 per kg . The maximum eligible quantity is 400 000 tons 
 
 Payment under this programme amounted to HUF 402 million  during the period covered by 
the notification.  
8.  Duration of the subsidy 
 
      From 1 January to 23 January 2003 
 
9.   Statistical data permitting an assessment of the trade effects of the  subsidy 
 
 N.A. 
  G/SCM/N/123/EEC/Add.11 
 Page 93 
 
 
 4.68  Assistance to maintain the quality of processed pork and beef  
 
1. Title of the subsidy programme  
 Assistance to maintain the quality of processed pork and beef  
 
2.  Period covered by the notification 
 
 2003 
 
3.   Policy objective and/or purpose of the subsidy  
Assistance to compensate the cost of pack aging, hygienic control and refrigeration 
 
4.   Background and authority for the subsidy 
 
 80/2002 (VIII.30.) FVM of the Minister for Agriculture and Regional Development  
51/2003 (V.15.) FVM of the Minister for Agriculture and Regional Development 
 
5.  Form of the subsidy  
Grant 
 
6.   To whom and how the subsidy is provided 
 
Producers   
7.   Subsidy per unit or the total amount 
 
  Payments under this programme amounted  to HUF 3,606 million during the period 
covered by the notification. 
 
8..   Duration of the subsidy  
 From 30 August 2002 to 14 May 2003 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
  N.A. 
 
4.69 Assistance to the production of apple in  bulk delivered for processing to food industry in 
2002 
 
1.  Title of the subsidy programme 
 
Assistance to the production of apple in bulk de livered for processing to food industr y in 2002 
 
2.   Period covered by the notification 
 
 2003 
 G/SCM/N/123/EEC/Add.11 
Page 94  
 
 3.   Policy objective and/or purpose of the subsidy 
 
To stabilise and support the agricultural income and prices 
 
4.   Background and authority for the subsidy 
 
Decree 94/2002 (X.7.) FVM of the Minister for Agriculture and Regional Development  
 
5.   Form of the subsidy 
 
Grant 
 
6.   To whom and how the subsidy is provided 
 
 Producers 
 
7.   Subsidy per unit or the total amount 
 
HUF 5/per kg 
 
 Payments under this programme amounted to HUF 979 million during the period covered by 
the notification. 
 
8.   Duration of the subsidy 
 
 From 12 October 2002 
 
 Duration of the subsidy has not been specified.   
9.  Statistical data permitting an assessment of th e trade effects of the subsidy 
 
 N.A. 
 
4.70 Assistance to the implementation of the National Agricultural Environment Protection 
Programme 
 
1.  Title of the subsidy programme 
 
 Assistance to the implementation of the National Agricultural Environment Protection 
Programme 
 
2.  Period covered by the notification 
 
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
Assistance to the environmen t protection in agriculture 
  G/SCM/N/123/EEC/Add.11 
 Page 95 
 
 
 4.   Background and authority for the subsidy 
 
 Decree 3/2003 (I. 24.) FVM of the Minister of Agriculture and Regional Development, 67.-
76.  
 
5.  Form of the subsidy  
Grant 
 
6.  To whom and how the subsidy is provided 
 
 Producers, organisations engaged to fulfil the requirements of the Program for at least five 
years  
7.   Subsidy per unit or the total amount 
 
For Agricultural Environment Protection Basic Programme   
(soil protecting cultivation )    HUF 19,000 per hectare 
experimental alternative crop  production programmes):    HUF 14,000 to 35,000 per hectare 
 
For integrated crop production: 
For arable land:      HUF 27,000 per hectare 
For field vegetables:     HUF 30,000 per hectare For pomaceous fruits:     HUF 50,000 per hectare For drupe and berry fruits:    HUF 40,000 per hectare 
For grape (vineyard):     HUF 40,000 per hectare 
 
For organic production: 
For the transition period: 
For field crops:      HUF 25,000 per hectare For vegetable:      HUF 30,000 per hectare 
For orchard:      HUF 40,000 per hectare 
For vineyard:      HUF 40,000 per hectare For grassland:      HUF 10,000 per hectare  
For transited area: 
For field crops:      HUF 20,000 per hectare 
For vegetable:      HUF 21,000 per hectare For orchard:      HUF 21,000 per hectare For vineyard:      HUF 21,000 per hectare For grassland:      HUF 10,000 per hectare For seed production:     HUF 30,000 to 50,000 per hectare 
 
For grassland program:     HUF 10,000 per hectare 
 For wetland program:     HUF 8,000 per hectare 
 For zonal agricultural environment  
protection programmes:     HUF 10,000 to 50,000 per hectare 
 
For experimental zonal agr icultural environment  
protection programmes:     HUF 16,000 to 48,000 per hectare G/SCM/N/123/EEC/Add.11 
Page 96  
 
  
For organic production: 
For cattle:      HUF 6,000 to 10,000 per animal 
For sheep:      HUF 1,200 to 2,500 per animal For pig:       HUF 1,200 to 2,500 per animal 
For goat:      HUF 1,200 to 2,500 per animal 
For horse:      HUF 3,000 per animal For poultry:      HUF 40 to 300 per animal For bee:       HUF 500 to 700 per family 
 
For extensive animal breeding: 
For cattle:      HUF 4,000 per animal 
For sheep:      HUF 1,000 per animal For goat:      HUF 1,000 per animal For horse:      HUF 2,500 per animal 
For deer:      HUF 2,500 per animal 
 
For realisation of complex agricultural en vironment protective production projects: 
75 per cent of the cost, maximum HUF 15 million 
 
For planning, research and development projects: 
75 per cent of the cost, maximum HUF 12 million 
 
For training programmes connected to agricultural environment protection: 
90 per cent of the cost, maximum HUF 9 million  
 
For pilot projects connected to ag ricultural environment protection: 
75 per cent of the cost, maximum HUF 9 million 
  Payments under this programme amounted to  HUF 3,705 million during the period covered 
by the notification.  
8.  Duration of the subsidy  
 From 1 January to 31 December 2003 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
  N.A. 
 
4.71 Additional assistance for family farms 
 
 Phased out 
 
4.72 Quality-linked support of tomato for industrial purposes 
1.  Title of the subsidy programme 
 Quality-linked support for tomato for industrial purposes 
2.  Period covered by the notification 
 2003  G/SCM/N/123/EEC/Add.11 
 Page 97 
 
 
 3.   Policy objective and/or purpose of the subsidy$ 
 
 To provide assistance to the quality production of tomato 
 
4. Background and authority for the subsidy 
  102/2001 (XII. 16.) §234 FVM of the Minister  for Agriculture and Regional Development  
 
5.   Form of the subsidy 
 
 Grant 
 
6.   To whom and how the subsidy is provided  
Producers   
7. Subsidy per unit or the total amount 
 
HUF 8 per kg   
 Payments under this programme amounted to HUF 122 million during the period covered by 
the notification. 
 
8.   Duration of the subsidy 
 
 From 1 January 2002 to 23 January 2003  
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
4.73  Quality-linked support for red pepper  
1. Phased out 
4.74 Quality-linked support for onion  
 1.  Title of the subsidy programme  
 Quality-linked support for onion 
 
2.   Period covered by the notification 
 
 2003 
 3.   Policy objective and/or purpose of the subsidy  
To provide assistance to the quality production of onion 
 
4.  Background and authority for the subsidy 
 
102/2001 (XII.16.) §234 FVM of the Minister  for Agriculture and Regional Development G/SCM/N/123/EEC/Add.11 
Page 98  
 
 5.  Form of the subsidy 
Grant 
6.   To whom and how the subsidy is provided 
Producers   
7.   Subsidy per unit or the total amount 
 
  HUF 7-7.7per kg  
The maximum eligible qu antity is 40 000 tons 
  Payments under this programme amounted to HUF  5 million during the period covered by the 
notification. 
 
8.   Duration of the subsidy 
 
 From 1 January 2002 to 23 January 2003  
9.   Statistical data permitting an assessmen t of the trade effects of the  subsidy 
 N.A. 
 
4.75 Quality-linked support for pea 
Phased out 
4.76  Quality-linked support for cucumber 
 
1.  Title of the subsidy programme  
 Quality-linked support for cucumber  
 
2.  Period covered by the notification 
 
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
To provide assistance to the quality production of cucumber 
 
4.   Background and authority for the subsidy 
 
102/2001 (XII. 16) §234 FVM of the Minister  for Agriculture and Regional Development 
 
5.   Form of the subsidy 
 
Grant 
  G/SCM/N/123/EEC/Add.11 
 Page 99 
 
 
 6.   To whom and how the subsidy is provided 
 
Producers  
 
7.   Subsidy per unit or the total amount 
 
HUF 25-27.5 per kg  
The maximum eligible qu antity is 50 000 tons 
 
 Payment under this programme amounted to HUF  3 million  during the period covered by the 
notification. 
 
8.   Duration of the subsidy 
 
 From 1 January 2002  to 23 January  2003 
 
9.   Statistical data permitting an assessmen t of the trade effects of the  subsidy 
 
N.A.     
 
4.77  Quality linked support for fruits 
4.77.1  Quality-linked support for cherry and sour cherry 
1.  Title of the subsidy programme 
 
 Quality-linked support for cherry and sour cherry  
 
2.   Period covered by the notification   
 2003 
 
3.  Policy objective and/or purpose of the subsidy 
 
To provide assistance to the quality produ ction of cherry and sour cherry 
 
4.   Background and authority for the subsidy 
 
102/2001 (XII. 16) §234 FVM of the Minister  for Agriculture and Regional Development 
 
5.  Form of the subsidy 
 
Grant 
 
6.  To whom and how the subsidy is provided 
 
Producers    
 
7.   Subsidy per unit or the total amount 
 
HUF 10-11 per kg. The maximum eligible quantity is 20 000 tons 
  Payment under this programme amounted to HUF 0.5 million during the period covered by 
the notification. G/SCM/N/123/EEC/Add.11 
Page 100  
 
  
8.  Duration of the subsidy 
 
     From 1 January 2002  to 23 January  2003 
 
9.   Statistical data permitting an assessmen t of the trade effects of the  subsidy 
 
 N.A.    
 
4.77.2 Quality-linked support for raspberry 
1.  Title of the subsidy programme 
 
 Quality-linked support for raspberry 
  
2.  Period covered by the notification 
  
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
To provide assistance to the quality production of raspberry 
 
4.  Background and authority for the subsidy 
 
102/2001 (XII. 16) §234 FVM of the Minister  for Agriculture and Regional Development 
 
5. Form of the subsidy  
Grant 
 
6.   To whom and how the subsidy is provided 
 
Producers 
    
7.   Subsidy per unit or the total amount 
 
HUF 35-38.5 per kg . The maximum eligible quantity is 6 000 tons  
 Payment under this programme amounted to HUF 2 million during the period covered by the 
notification.  
8. Duration of the subsidy 
 
 From 1 January 2002  to 23 January  2003 
 
9.   Statistical data permitting an assessment of the trade effects of the subsidy 
N.A.     
     G/SCM/N/123/EEC/Add.11 
 Page 101 
 
 
 4.78 Interest rate subsidy for bank loans recei ved for storage in public warehouse of canned 
and frozen products  
 
1. Title of the subsidy programme  
 Interest rate subsidy for bank loans receive d for storage in public warehouse of canned and 
frozen products   
2.   Period covered by the notification 
  
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
To provide assistance to the storage of canned and frozen products   
4.   Background and authority for the subsidy 
 
Decree 49/2003. (V.9.) FVM of the Minister  of Agriculture and Regional Development 
 
5.   Form of the subsidy 
 
 Grant 
 
6.   To whom and how the subsidy is provided 
 
Processors 
 
7.   Subsidy per unit or the total amount 
 
 Interest subsidy of 70 per cent of the basic in terest rate of the National Bank of Hungary for 
loans which have the stored commodity as collateral 
 
 Payments under this programme amounted to HUF  5 million during the period covered by the 
notification. 
 
8.   Duration of the subsidy 
  
 From 1 January to 31 December 2002 
 
9,   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
4.79  Assistance to the self restriction of cow milk production 
 
1.  Title of the subsidy programme  
    Assistance to the self restri ction of cow milk production 
 
2.   Period covered by the notification 
  
 2003 G/SCM/N/123/EEC/Add.11 
Page 102  
 
  
3.   Policy objective and/or purpose of the subsidy 
 
To provide assistance for pr oduction decrease of cow milk 
 
4.   Background and authority for the subsidy  
Decree 25/2003 (III. 11.) FVM of the Minister  of Agriculture and Regional Development 
 
5.   Form of the subsidy 
 
  Grant 
 
6.   To whom and how the subsidy is provided 
 
Producers 
 
7.   Subsidy per unit or the total amount 
 
10 HUF  per litre according to the undertaken quota reduction 
 
 Payments under this programme amounted to HUF 134 million during the period covered by 
the notification.  
8.   Duration of the subsidy 
 
 From 11 May to 30 December 2003 
 
9.   Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 4.80  Assistance to private forestry  
1.  Title of the subsidy programme  
Assistance to private forestry  
2.   Period covered by the notification 
  
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
Assistance to the private forest management 
 
4.   Background and authority for the subsidy 
 
 Decree 3/2003 (I. 24.) FVM of the Minister of Agriculture and Regional Development, 125.-
134. § 
  G/SCM/N/123/EEC/Add.11 
 Page 103 
 
 
 5.   Form of the subsidy 
 
 Grant 
 
6.  To whom and how the subsidy is provided 
 
Private sylviculturists  and co-operatives, organisations in the field of forestry  
 
7.   Subsidy per unit or the total amount 
 
 For the cost of management: 
 
For sylviculturists with forest less than  2,000 hectares: 50 per cent of the cost. 
  For forestry integrators with 200 to 4,000 h ectare forest, with returns up to HUF 500 million 
per year: HUF 1,000 to 2,000 per hectare. 
 
For the cost of establishment of co-op erative organisations and operative costs: 
 
80 per cent of the cost of establishment, maximum HUF 400,000. 
HUF 5,000 per hectare for operation costs, maximum HUF 5 to 10 million.   
 
 Payments under this programme amounted to HUF 48 million during the period covered by 
the notification. 
 
8.   Duration of the subsidy 
 
 From 1 January to 31 December 2003 
 
9.   Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 
4.81  Assistance to the utilisation of bio fuel 
 
1.  Title of the subsidy programme  
Assistance to the utilisation of bio fuel 
 
2.   Period covered by the notification 
  
 2003 
 
3.   Policy objective and/or purpose of the subsidy  
Assistance to the utilisation of bio fuels 
 
4.   Background and authority for the subsidy 
 
Decree 3/2003 (I. 24.) FVM of the Minister of  Agriculture and Regional Development, 362. § 
 G/SCM/N/123/EEC/Add.11 
Page 104  
 
 5.  Form of the subsidy 
 
 Grant 
 
6.   To whom and how the subsidy is provided 
 
Producers 
 
7.   Subsidy per unit or the total amount 
 
  HUF 30 per litre. 
  Payments under this programme amounted to HUF 29 million during the period covered by 
the notification. 
 
8.   Duration of the subsidy  
 From 1 January to 20 November 2003 
 
9.   Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 
4.82  Special support for the quality production of beef for slaughter 
 
1.  Title of the subsidy programme 
 
Special support for the quality production of beef for slaughter 
 
2.,  Period covered by the notification 
 
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
 To ensure the equilibrium between domestic  supply and demand, to support agricultural 
income and encourage quality production.  
 
4.  Background and authority for the subsidy 
 
Decree 35/2003.(III.31.) FVM of the Minister for Agriculture and Regional Development     
 
5.   Form of the subsidy 
 
 Grant 
 
6.   To whom and how the subsidy is provided 
 
Producer 
 
7.  Subsidy per unit or the total amount 
 
  HUF 12 000 – 15 000 per animal   G/SCM/N/123/EEC/Add.11 
 Page 105 
 
 
  
 Payments under this programme amounted to HUF  2 million during the period covered by the 
notification. 
 
8.  Duration of the subsidy 
 
From 31 March to 30 December 2003 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
4.83 Additional assistance to enhance the husbandry conditions  
 4.83.1  Assistance to poultry for slaughter 
 
1.  Title of the subsidy programme  
Assistance related to the husbandry conditions of poultry for slaughter 
 
2.   Period covered by the notification 
  
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
To enhance the husbandry conditions  
 
4.   Background and authority for the subsidy 
 
Decree 9/2003. (II.7) FVM of the Minister for Agriculture and Regional Development 
Decree 53/2003.(V.19.) FVM of the Minister for Agriculture and Regional Development 
 
5.   Form of the subsidy 
  
 Grant 
 
6.   To whom and how the subsidy is provided  
 Producers, processors 
 
7.   Subsidy per unit or the total amount 
 
HUF 8.20- 8.70 per kg 
 
 Payments under this programme amounted to  HUF 2,800 million during the period covered 
by the notification.  
8.   Duration of the subsidy  
 From 7 February 2003 
Duration has not been specified. 
          G/SCM/N/123/EEC/Add.11 
Page 106  
 
 9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
4.83.2   Assistance to pig for slaughter 
 
1.  Title of the subsidy programme  
Assistance to the implementation of the husbandry rules of pig for slaughter 
 
2.   Period covered by the notification 
  
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
To assist the implementation of the husbandry rules of pig for slaughter 
  
4.   Background and authority for the subsidy 
 
Decree 12/2003 (II.7.) FVM of the Minister for Agriculture and Regional Development Decree 52/2003 (V.15.) FVM of the Minister for Agriculture and Regional Development 
 
5.   Form of the subsidy 
  
 Grant 
 
6.   To whom and how the subsidy is provided 
 
 Producers 
 
7.   Subsidy per unit or the total amount 
 
Class:  S,E,U HUF 3000 per animal 
Class:  R,O,P and M1, M2, V HUF 200 per animal  
 Payments under this programme amounted to  HUF 3,865 million during the period covered 
by the notification. 
 
8.   Duration of the subsidy 
 
 From 7 February to 30 December 2003 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 
4.84 The flat rate cost refund related to the in tervention stocks of maize harvested in 2002  
 
1.  Title of the subsidy programme  
The flat rate cost refund related to the intervention stocks of maize harvested in 2002 
  G/SCM/N/123/EEC/Add.11 
 Page 107 
 
 
 2.   Period covered by the notification 
  
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
To reduce the intervention stocks. 
 
4.   Background and authority for the subsidy 
 
Decree 45/2003 (IV.29.) FVM of the Minister for Agriculture and Regional Development 
 
5.   Form of the subsidy 
  
 Grant 
 
6.   To whom and how the subsidy is provided 
 
 Producers 
 
7.   Subsidy per unit or the total amount 
 
HUF 2000 Ft/t  
  Payments under this programme amounted to  HUF 424.66 million during the period covered 
by the notification. 
 
8. Duration of the subsidy 
 
 From 2 May to 17 December 2003 
          
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 
 
5. CORPORATE TAX CONCESSIONS TO ASSIST STRUCTURAL ADJUSTMENT 
AND ECONOMIC DEVELOPMENT (2003) 
 
5.1 Tax Concession for Companies with Foreign Participation  
 
1. Title of the subsidy programme 
  Corporate tax concession for compan ies with foreign participation. 
 
2. Period covered by the notification 
 
 2003 
 
3. Policy objective and/or purpose of the subsidy 
 
 The purpose of this tax concession is to stimulate foreign investments in domestic corporations. G/SCM/N/123/EEC/Add.11 
Page 108  
 
  
4. Background and authority for the subsidy 
 
 This tax concession is provided for by Section 12, paragraph (1) of Act  LXXXVI of 1991 on  
the Corporate Tax and Section 29, paragraph (5 ), subparagraph a) of Act LXXXI of 1996 on the 
Corporate Tax and Dividend Tax. 
 
5. Form of the subsidy 
 
 The subsidy is in the form of deduction from the corporate tax. 
 
6. To whom and how the subsidy is provided 
 
 Eligibility criteria are the following: (1) the company's equity at foundation exceeds 
50 million forints of which (2) the foreign participati on is at least 30 per cent and (3) more than half 
of the company's annual sales revenue originates (a) from manufacturing of goods or (b) from 
"activities of particular importance".  The activiti es are listed in Annex 4 to Act LXXXVI of 1991 on 
the Corporate Tax.  
7. Subsidy per unit or the total amount 
  The tax reduction is 60 per cent in the first five years and 40 per cent for an additional five 
years period in the case of “manufacturing of g oods”.  In the case of “activities of particular 
importance” the reduction rates are 100 per cent  and 60 per cent, respectively.  
 
 The support, including that granted under 5.2, amounted to 8,1 billion HUF. 
 
8. Duration of the subsidy 
 
  The last year to obtain eligibility for this tax concession was 1993. No tax concession 
can be applied for after 2003.  9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A.  
5.2 Tax Concession for Dividend Invested in Hungary by Foreign Shareholders 
 
1. Title of the subsidy programme 
 
 Tax concession for dividend invested in  Hungary by foreign shareholders. 
 
2. Period covered by the notification 
 
 2003  
3. Policy objective and/or purpose of the subsidy 
 The scheme is intended to encourage foreign shareholders to invest their dividends in 
Hungary. 
  G/SCM/N/123/EEC/Add.11 
 Page 109 
 
 
 4. Background and authority for the subsidy 
  This tax relief is provided for by Sectio n 12, paragraph (5) of Act LXXXI of 1991 on 
the Corporate Tax and Section 29, paragraph (5 ), subparagraph a) of Act LXXXI of 1996 on the 
Corporate Tax and Dividend Tax.  5. Form of the subsidy  
 The subsidy is in the form of deduction from the corporate tax. 
 
6. To whom and how the subsidy is provided 
  If the foreign shareholder of an economic association invests the whole or a part of the 
dividends due to him (i) to increase the founders' asse ts or (ii) in other economic associations already 
functioning or being founded in Hungary, then the economic association is entitled to tax benefit 
identical with the tax payable for this sum. 
 
7. Subsidy per unit or the total amount 
 
 See under 5.1.  
8.       Duration of the subsidy 
  No explicit time limit is attached to this programme.. 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
  N.A. 
 
5.3 Tax Concession for Investme nts Exceeding 3 Billion HUF 
 
1. Title of the subsidy programme 
  Tax concession for investments exceeding 3 billion HUF. 
 
2. Period covered by the notification 
 
 2003 
 
3. Policy objective and/or purpose of the subsidy 
 The purpose of this tax concession is to stim ulate investments in underdeveloped regions 
from a social-economic point of view and/or in c ounties having unemployment rate higher than 15 per 
cent.  4. Background and authority for the subsidy 
 This tax benefit is provided for by Secti on 21 of the Act LXXXI of 1996 on the Corporate 
Tax and Dividend Tax as amended by the Act CV I of 1997 on the Corporate Tax and Dividend Tax 
and Section 48 of Act CXIII of 2000 on the Am endment of Certain Acts Concerning Taxes.  
 5. Form of the subsidy 
 The subsidy is in the form of deduction from the corporate tax. 
 G/SCM/N/123/EEC/Add.11 
Page 110  
 
 6. To whom and how the subsidy is provided 
 
 Companies with head office or premises registered in a socially-economically 
underdeveloped region and/or in a county where th e unemployment rate exceeds 15 per cent that after 
31 December 1996 began an investment of at least  3 billion HUF for the production of goods may 
receive a 100 per cent tax concession  in those taxa tion years of a ten year period following the 
project’s start up when 
 
 -  their sale proceeds increase by at least 5 per cent of the  investment value, or   
 -  the level of sale proceeds in a given year corresponds to the value calculated on the 
basis of successive yearly sale proceeds increase of 5 per cent. 
  The above tax benefit can only be applied fo r from the second taxation year and thereafter if 
the annual average number of the staff employed exceeds by at least 100 persons the average number 
of the staff employed in the year preceding the start up.  
 
7. Subsidy per unit or the total amount 
 
 13,5 billion HUF in 2003.  8. Duration of the subsidy 
  
 This tax concession may not be applied after the year 2011.  
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A.  
5.4 Tax Concession for Investments Exceeding 10 Billion HUF 
 
1. Title of the subsidy programme 
 
 Tax concession for investments exceeding 10 billion HUF.  
2. Period covered by the notification 
  2003 
 
3 Policy objective and/or purpose of the subsidy 
The purpose of this tax benefit is  to promote large investments. 
 
4 Background and authority for the subsidy 
 This tax benefit is provided for by Secti on 21 of Act LXXXI of 1996 on the Corporate Tax 
and Dividend Tax as modified by the Act CVI of 1997 on the Corporate Tax and Dividend Tax. 
  
5. Form of the subsidy 
 The subsidy is in the form of deduction from the corporate tax. 
  G/SCM/N/123/EEC/Add.11 
 Page 111 
 
 
 6. To whom and how the subsidy is provided 
 Companies that began after 31 December 1996 an investment of at least 10 billion HUF 
destined for the production of goods may receive a 100 per cent tax concession in those taxation years 
of a ten year period following the project’s start up when  
- their sale proceeds increase by at least 5 per cen t of the investment value compared to the 
previous year, or 
 
- the level of sale proceeds in a given year co rresponds to the value calculated on the basis of 
successive yearly sale proceeds increase of 5 per cent. 
 
 The above tax benefit can only be applied fo r from the second taxation year and thereafter if 
the annual average number of the staff employed exceeds by at least 500 persons the average number 
of the staff employed in the year preceding the start up.  7. Subsidy per unit or the total amount 
 
 84,3 billion HUF in 2003.  
8.  Duration of the subsidy 
 
 This tax concession may not be applied after the year 2011. 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 
5.5 Tax Concession to Promote Structural Adjustment 
 
1. Title of the subsidy programme 
 
 Tax concession to promote structural adjustment. 
 
2. Period covered by the notification 
 
 2003  4. Background and authority for the subsidy  
 This tax benefit is provided for by Section 13 , paragraph (1) subparagraph a) of Act LXXXVI 
of 1991 on the Corporate Tax and Section 29, paragr aph (5), subparagraph c) of Act LXXXI of 1996 
on the Corporate Tax and Dividend Tax.  5. Form of the subsidy 
 
The subsidy is in the form of deduction from the corporate tax.  
 
6. To whom and how the subsidy is provided 
 
 Companies are awarded this kind of subsidy by an interdepartmental committee through tendering procedures.    G/SCM/N/123/EEC/Add.11 
Page 112  
 
 7. Subsidy per unit or the total amount 
 
 The tax concession can be made use of in the form of withholding the tax out of the tax 
calculated, according to the following ratio of th e interests on the loans and credits linked to the 
approved project: 30 per cent of the capitalised inte rest or 18 per cent of the interest accounted as 
costs. 
 The tax concession, including those grante d under 5.6 , amounted to 30,7 million HUF. 
 
8. Duration of the subsidy 
 
 The tax benefit may be requested on the basis of credit contracts concluded not later than 
31 December 1996.  
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A.  
5.6 Tax Concession for Bank Credits Financing Other Investments 
 
1. Title of the subsidy programme 
 
 Tax concession for bank credits financing other investments. 
 
2. Period covered by the notification 
  2003 
 
3.   Policy objective and/or purpose of the subsidy 
 The tax concession was constructed to reduce th e interest burden on credits financing projects 
serving production, environmental protecti on, tourism, and distribution purposes. 
 
4. Background and authority for the subsidy 
 
 This tax benefit is provided for by Section 13 , paragraph (1) subparagraph e) of Act LXXXVI 
of 1991 on the Corporate Tax and Section 29, paragr aph (5), subparagraph c) of Act LXXXI of 1996 
on the Corporate Tax and Dividend Tax. 
 
5.   Form of the subsidy 
 The subsidy is in the form of deduction from the corporate tax. 
 
6.   To whom and how the subsidy is provided 
 Companies investing from bank credits in projects of production, environment protection, 
tourism and distribution services.  
 
7. Subsidy per unit or the total amount 
 
 The tax concession can be made use of in the form of withholding the tax out of the tax 
calculated, according to the following ratio of the interests on bank credits: 19 per cent of the 
capitalised interest or 12 per cent of  the interest accounted as costs. 
  G/SCM/N/123/EEC/Add.11 
 Page 113 
 
 
  As to the amount of support see programme 5.5  
 
8.   Duration of the subsidy  
 The tax benefit may be requested on the basis of credit contracts concluded not later than 
31 December 1996. 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A.  5.7 Tax Rate Relief for Foreign Investors 
 
1. Title of the subsidy programme 
 
 Tax rate relief for foreign investors. 
 
2. Period covered by the notification 
 
 2003  
3. Policy objective and/or purpose of the subsidy 
 
 The programme is intended to create conditions  conducive to the establishment and operation 
of foreign investors that do not engage  in economic activities in Hungary.  
 
4. Background and authority for the subsidy 
 
 This tax benefit is provided for by Section 19, paragraph (2) of Act LXXXI of 1996 on the 
Corporate Tax and Dividend Tax. 
 
5. Form of the subsidy 
 
The subsidy is in the form of reduced corporate tax rate.  
 
6. To whom and how the subsidy is provided 
 
 The preferential tax rate is available for a ny limited liability company or joint-stock company 
incorporated and having its head office in Hungary that is fully foreign owned without discontinuation 
and which   (a)  has obtained authorisation from the Minist er of Finance granting it Customs Free Zone 
benefits or, having regard to the fulfilment of the conditions in b) through e), was registered 
by the Minister of Finance, and 
 
(b)  performs trading activities exclusively be tween third countries, or provides services 
exclusively to other countries, and 
 (c)   in its domestic administrative and court proceedings employs only domestic lawyers and 
whose senior officers, supervisory board memb ers and employees, taken separately, are in 
majority domestic natural persons and, furthe rmore, meets its audit obligations through an 
auditor registered in Hungary, and 
 G/SCM/N/123/EEC/Add.11 
Page 114  
 
 (d)   whose bank account necessary for its operation is kept in Hungary, and 
 (e)   neither itself, nor its owners have any in terests in domestic companies or co-operatives, nor 
do they maintain any representative office in Hungary, nor there are domestic persons among 
its direct or indirect owners.     
 
7. Subsidy per unit or the total amount 
 
The foreign investor may take advantag e of a preferential 3 per cent tax rate. 
 
8. Duration of the subsidy 
 
 From 1 January 2001 no new rights can be ac quired and benefits under this scheme will cease 
to exist after 31 December 2005.  9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A.  
5.8 Tax Concession Related to Investments 
 
1. Title of the subsidy programme 
 
 Tax concession related to investments.  
2. Period covered by the notification 
 
 2003  
3. Policy objective and/or purpose of the subsidy 
 
 The objective of this scheme is to promote deve lopment activities by corporations of a certain 
importance whose investment projects result in the manufacturing of up-to-date and environment 
friendly products and thereby increasing their sales and or creating new jobs.  
4.   Background and authority for the subsidy 
 This tax concession has been provided for by Section 14/A, paragraph (2) of Act LXXXVI of 
1991 on the Corporate Tax as modified by Act CVI of 1997 on the Corporate Tax and Dividend Tax, 
and Decree 90/1994. (VI.8.) of the Government on Certain Corporate Tax Benefits as modified by Decree 190/1994. (XII.31.) of the Government on Ce rtain Corporate Tax benefits, and Section 29, 
paragraph (5), subparagraph d) of Act LXXXI of 1996 on the Corporate Tax and Dividend Tax. 
 
5.  Form of the subsidy 
  The subsidy is in the form of deduction from the corporate tax. 
 
6.  To whom and how the subsidy is provided 
 
 Application for the concession could be ma de by a company (a) whose founders' equity 
exceeded HUF 500 million  and (b) projected to make investment for at least HUF 200 million that (c) resulted in yearly sales revenue half of which w as realized from the manufacturing of environment 
friendly products and/or from the sales of products  that have been produced by using modern  G/SCM/N/123/EEC/Add.11 
 Page 115 
 
 
 technologies and/or employing the results of scientific  research and (d) project ed an increase in its 
turnover or (e) the creation of new jobs. Unde r Section 14/A. of the Corporate Tax Act the 
Government was granted discretionary power to gran t individual tax concessions to applicants that 
met the criteria referred to above.  7. Subsidy per unit or the total amount 
 
 The maximum extent of the subsidy is 100 per cent of the corporate tax due for the first 5 
years and 60 per cent for the second period of 5 years.  
 
 The tax concession can be made use of in the form of withholding the tax out of the tax 
calculated.   The tax benefit accounted for 3,2 billion HUF.  8.   Duration of the subsidy 
 The provisions of the Corporate Tax Act in troducing this scheme came into effect on 
1 January 1994 and lost effect on 1 January 1995. The possibility of obtaining tax concession under 
this scheme was abolished by Section 13, paragrap h (5), subparagraph a) of Act LXXXIII of 1994 
with effect as of 1 January 1995. However, par ticular concessions granted before that date will 
continue to be applied until their expiry date a pproved by the Government and provided that the 
criteria continue to be met. 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 
5.9 Tax Relief for Projects of Micro and Small Enterprises 
 
1. Title of the subsidy programme 
 
 Tax relief for projects of micro and small enterprises. 
 
2. Period covered by the notification 
 
 2003  3  Policy objective and/or purpose of the subsidy 
 The objective of this scheme is to promot e investment activities of micro- and small-
enterprises. 
 
4   Background and authority for the subsidy 
 The tax  relief is provided for by Section 7, paragraph (1), subparagraph (zs) of Act LXXXI 
of 1996 on the Corporate Tax and Dividend Tax and Section 36 Paragraph (9) of Act XCIII of 2000 
on the Amendment of Certain Acts Concerning Taxes.   
5   Form of the subsidy 
 This subsidy is in the form of deduction from the corporate tax base. 
 G/SCM/N/123/EEC/Add.11 
Page 116  
 
 6. To whom and how the subsidy is provided 
 
 Investing micro and small enterprises, provided all of their members were private natural persons in the tax year. 
 
7. Subsidy per unit or the total amount 
 
 The tax relief is equal to the total amount of th e project costs, but may not be higher than the 
pretax profit or 30 million HUF. 
 
8   Duration of the subsidy 
 This tax relief was introduced in 2001. No exp licit time limit is attached to this subsidy. 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
  N.A. 
 
5.10 Tax Concession for Small and Medium Sized Enterprises 
 
1. Title of the subsidy programme 
  Tax concession for small and medium sized enterprises. 
 
2. Period covered by the notification 
 
 2003 
 
3  Policy objective and/or purpose of the subsidy 
 The purpose of this tax concession is to stimulate investment activities of small and medium-
sized enterprises.  
4  Background and authority for the subsidy 
 The tax concession is provided for by Secti on 22/A of Act LXXXI of 1996 on  Corporate Tax 
and Dividend Tax and Section 49 of Act 2000 on th e Amendment of Certain Acts Concerning Taxes. 
 
5  Form of the subsidy 
 The subsidy is in the form of deduction from the corporate tax. 
 
6  To whom and how the subsidy is provided 
 Small and medium-sized enterprises financing th eir investments by bank loans are eligible for 
tax concession.  
7. Subsidy per unit or the total amount 
 
 The tax concession is equal to 40 per cent of the interest paid on bank loans during the tax year. The concession may not be in excess of 5 million HUF per year.   
The concession amounted to 2,6 billion HUF. 
  G/SCM/N/123/EEC/Add.11 
 Page 117 
 
 
 8  Duration of the subsidy 
 This tax concession was introduced in 2001. No expl icit time limit is attached to this subsidy. 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
  N.A. 
 
5.11 Tax Relief for Development Reserve  
 
1. Title of the subsidy programme 
 
 Tax relief for development reserve.  
2. Period covered by the notification 
  2003 
 
3. Policy objective and/or purpose of the subsidy 
 
 The objective of this scheme is to promote investment activities.  4. Background and authority for the subsidy 
 
 This tax relief has been provided for by Sec tion 7, paragraph (1), subparagraph f) of Act 
LXXXI of 1996 on the Corporate Tax and Dividend Tax.   5. Form of the subsidy 
 
 This subsidy is in the form of deduction from the corporate tax base. 
 
6. To whom and how the subsidy is provided 
  Profitable taxpayers making reserve for futu re investments can apply this tax relief. 
 
7. Subsidy per unit or the total amount 
 
 The tax relief is equal to the development reser ve made in the tax year, but may not be higher 
than 25 per cent of the pretax profit earned in th e tax year or 500 million HUF. Later, depreciation 
may not be applied on investments made from development reserve. 
 The subsidy amounted to 25,3 billion HUF in 2003.  
 
8. Duration of the subsidy 
 
This tax relief was introduced in 2002. No explic it time limit is attached to this subsidy. 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
  N.A. 
 G/SCM/N/123/EEC/Add.11 
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 5.12 Tax Concession Related to Development Projects  
 
1. Title of the subsidy programme 
 
 Tax concession related to development projects. 
 
2. Period covered by the notification 
 
 2003  3. Policy objective and/or purpose of the subsidy 
 
 The objective of this scheme is to  stimulate investment activities. 
 
4. Background and authority for the subsidy 
 
 This tax concession has been provided for by  Section 22/B. of Act LXXXI of 1996 on the 
Corporate Tax and Dividend Tax.  
5. Form of the subsidy 
  The subsidy is in the form of deduction from the corporate tax. 
 
6. To whom and how the subsidy is provided 
 
 The Government grants tax concession to a ta xpayer whose development project entails an 
investment of at least 10 billion HUF or 3 billion HUF if the project is started and operated in 
preferable regions and during the four years follo wing the first year in which the tax concession is 
used if  (a)  the average work force em ployed exceeds the average number of persons employed during 
the year prior to the commencement of the proj ect by at least 500 workers - or 300 workers if 
the project is started and opera ted in preferable regions, or 
 (b)  if the taxpayer's annualized wage costs are at least 1500 times greater than the amount of the 
minimum wage effective on the first day of the tax year as calculated for the tax year - or at least nine hundred times greater if the project is  launched and operated in preferable regions - 
as compared to the annualized wage costs of th e year preceding the year in which the project 
commenced, or 
 (c)  from the trade debts of the taxpayer the direct  cost of the taxpayer's liabilities payable to small 
and medium sized enterprises exceeds 50 per cent. 
 
 The Government grants tax concession for deve lopment projects with a value of at least 100 
million HUF, if it constitutes the launch and operation of an independent environmental protection or 
rehabilitation project or a wideband Internet service.   From the value of the project entitling tax concession, 
 
(a)  the value of previously unused assets must be at least 50 per cent;  (b)  the value of improvements by renovation, refurbishing etc. must not exceed 20 per cent, 
unless the project is launched and operated in preferable regions.  G/SCM/N/123/EEC/Add.11 
 Page 119 
 
 
  
7. Subsidy per unit or the total amount 
 
 The support granted to a specific developmen t project may not be higher than the amount 
computed by the ratio stipulated in the legislation from the total cost of the project.  The tax 
concession may be claimed up to 100 per cent of the corporate income tax otherwise payable. 
  The tax concession amounted to 88 million HUF.  
8. Duration of the subsidy 
 
 The taxpayer can take advantage of tax concession in five tax years on a development program begun after 31 December 2002.  
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A.  
5.13 Tax Relief for Royalties  
 
1. Title of the subsidy programme 
 
 Tax relief for royalties.  
2. Period covered by the notification 
  2003 
 
3. Policy objective and/or purpose of the subsidy 
 
 The objective of this scheme is to help gr ow the  Hungarian  intellectual property and 
strengthen  the R and D activity. 
 
4. Background and authority for the subsidy 
 
 This tax relief has been provided for by Sec tion 7, paragraph (1), subparagraph s) of Act 
LXXXI of 1996 on the Corporate Tax and Dividend Tax. 
 
5. Form of the subsidy 
 
 This subsidy is in the form of deduction from the corporate tax base. 
 
6. To whom and how the subsidy is provided 
 
 Profitable taxpayers receiving royalties in the tax year can apply this tax relief. 
 
7. Subsidy per unit or the total amount 
  The tax relief is equal to 50 per cent of the am ount of royalties received in the tax year.  The 
amount of this tax relief may not exceed 50 per cent of the pretax profit.  
The subsidy amounted to 1,1 billion HUF.  
 G/SCM/N/123/EEC/Add.11 
Page 120  
 
 8. Duration of the subsidy 
 
 This tax relief was introduced in 2003. No exp licit time limit is attached to this subsidy. 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A.  
5.14 Tax Relief for Interest Incomes  
 
1. Title of the subsidy programme 
 
 Tax relief for interest incomes.  
2. Period covered by the notification 
 
 2003  
3. Policy objective and/or purpose of the subsidy 
 
 The objective of this scheme is to reduce the tax avoidance within multinational groups. 
 
4. Background and authority for the subsidy 
 
 This tax relief has been provided for by S ection 7, paragraph (1), subparagraph k) and 
Section 8, paragraph (1), subparagraph k) of Ac t LXXXI of 1996 on the Corporate Tax and Dividend 
Tax. 
 
5. Form of the subsidy 
 
 This subsidy is in the form of deduction from the corporate tax base. 
 6. To whom and how the subsidy is provided 
 
 Profitable business associations, cooperatives and non-resident entrepreneurs (except 
insurance companies, financial institutions, inv estment enterprises, venture capital companies and 
small enterprises) can apply this tax relief. 
 
7. Subsidy per unit or the total amount 
 
 The tax relief is equal to 50 per cent of the positive difference of the interest received from 
affiliated companies and interest paid to affiliate d companies. The amount of this tax relief may not 
exceed 50 per cent of the pretax profit. 
 
 At the same time, 50 per cent of the negative difference (loss) of the interest received from affiliated companies and interest paid to affiliated companies must be added to the corporate income 
tax base. 
 
The support accounted for 1,6 billion HUF. 
 
8. Duration of the subsidy 
 
This tax relief was introduced in 2003. No explic it time limit is attached to this subsidy.  G/SCM/N/123/EEC/Add.11 
 Page 121 
 
 
  
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A.  5.15 Tax Relief for Capital Market Profit  
 
1. Title of the subsidy programme 
 
 Tax relief for capital market profit. 
 
2. Period covered by the notification 
 
 2003  3. Policy objective and/or purpose of the subsidy 
 
The objective of this scheme is to promote capital market transactions. 
 
4. Background and authority for the subsidy 
  This tax relief has been provided for by Sec tion 7, paragraph (1), subparagraph e) of Act 
LXXXI of 1996 on the Corporate Tax and Dividend Tax.  
5. Form of the subsidy 
  This subsidy is in the form of deduction from the corporate tax base. 
 
6. To whom and how the subsidy is provided 
 
 Profitable business associations and cooperativ es (except insurance co mpanies, financial 
institutions, investment enterprises and venture capital companies) can apply this tax relief. 
 
7. Subsidy per unit or the total amount 
 
 The tax relief is equal to 50 per cent of the income from transactions made on a recognized 
capital market.  The amount of this tax relief may not exceed 50 per cent of the pretax profit. 
 
The subsidy amounted to 0,3 billion HUF.  
 
8. Duration of the subsidy 
 
 This tax relief was introduced in 2003. No exp licit time limit is attached to this subsidy. 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A.  
 G/SCM/N/123/EEC/Add.11 
Page 122  
 
 6. TECHNICAL DEVELOPMENT FUND 
 
1. Title of the subsidy programme 
 Technical development fund 
2. Period covered by the notification 
 2003 
3. Policy objective and/or purpose of the subsidy 
The policy objective of the central fund for technical development is to promote i.a. 
 - technology development and innovation for th e development of the Hungarian society and 
economy; 
- Hungary's Euro-Atlantic integration; 
- the implementation of technical innovations serving public interest; 
- the implementation of innovations improvi ng competitiveness of the Hungarian economy; 
- public understanding and information diffusion on new R&D results, acceleration of their  
spreading and utilisation; 
- development of R&D infrastructure. 
 
4. Background and authority for the subsidy 
 The act on state budget and the government d ecree 98/1996 (VII.10.) Korm. as amended by 
62/1998(IX.30.) Korm. and 227/1999(XII.30.) Korm.  
5. Form of the subsidy 
 Grant and interest rate support.  
6. To whom and how the subsidy is provided 
 The support is awarded through tender procedur es. Bids may be submitted for precompetitive 
development activity by legal entities, uninc orporated economic associations and private 
entrepreneurs based in Hungary, as well as by natu ral persons who are Hungarian citizens and reside 
in Hungary.  
 
7. Subsidy per unit or the total amount 
 
The total amount of the subsidy was 10,51 billion HUF  
8. Duration of the subsidy 
No explicit time limit is attached to this programme.  
9. Statistical data permitting an assessment of the trade effects of the subsidy 
N.A. 
  G/SCM/N/123/EEC/Add.11 
 Page 123 
 
 
  
7. BUDGETARY SCHEME EARMARKED FOR ECONOMIC DEVELOPMENT 
1. Title of the subsidy programme 
 Budgetary scheme earmarke d for economic development 
2. Period covered by the notification 
 2003 
3. Policy objective and/or purpose of the subsidy 
 The scheme is designed to assist the realisation of national economic and trade policy 
objectives in compliance with Hungary's obligations  under EU law and international agreements by 
promoting i.a. 
 
- restructuring of the Hungarian economy; 
- foreign direct investment in Hungary; - realisation of industrial parks and innovation centres; - job creation; - establishment of quality assurance and certification systems necessary for the introduction of 
products into foreign markets; 
- regional development; 
- missions of business people to Hungary and abroad; - organisation of international exhibitions, fairs and experts’ meetings in Hungary and abroad; 
- participation in international aid programmes; - information and PR activities bringing about trade development; 
- development of subcontractors’ network, in particular SMEs; 
- financement of  measures to protect consumers. - development of human resources. 
4. Background and authority for the subsidy 
 Act on state budget, Decree 1/2001 (I. 5.) of th e Minister of Economic Affaires, Decree 
7/2001. (IV.5.) of the Minister of Foreign Affaires.  
5. Form of the subsidy 
 The subsidy can be provided for in the form of  grant, reimbursable grant and interest rate 
support.  
6. To whom and how the subsidy is provided 
 Domestic legal persons, economic corpora tions without legal personality, self-employed 
persons, cooperatives, professional as sociations, Chamber of Trade a nd Industry, natural persons of 
Hungarian citizenship, public benefit companies, local governments.  
  All kinds of subsidy are awarded through tender procedures.   
 The upper limit of support is specified in the call for tender.  At least 25 per cent of the project cost should be financed from own source.  G/SCM/N/123/EEC/Add.11 
Page 124  
 
 7. Subsidy per unit or the total amount 
The total amount accounted for 23,- billion HUF.   
8. Duration of the subsidy 
 Indefinite.  
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 N.A. 
 
 
8. MINING CONVERSION PROGRAMME 
1. Title of the subsidy programme 
 Mining conversion programme 
2. Period covered by the notification 
 2003 
3. Policy objective and/or purpose of the subsidy 
 The assistance is intended to address major social problems stemming from structural 
adjustment in the sector and the need of ensuring progressive and orderly reduction of mining. Aid is 
granted by the government to specific mining companies on the basis of either the Act on State Budget or within its own discretionary power.  
4. Background and authority for the subsidy 
Annual state budget, Decree 310/2002 (XII.28.) Korm. of the Government.  
5. Form of the subsidy 
Grant.  
6. To whom and how the subsidy is provided 
 Coal mining companies. 
7. Subsidy per unit or the total amount 
The support accounted for 2,5 billion HUF. 
8. Duration of the subsidy 
 No explicit time limit is attached to this programme.  
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 N.A.  G/SCM/N/123/EEC/Add.11 
 Page 125 
 
 
  
 
9. CENTRAL ENVIRONMENT PROTECTION FUND  
 1. Title of the subsidy programme 
 
 Central environment protection fund  
 
2.  Period covered by the notification  
2003 
 
3.  Policy objective and / or purpose of the subsidy  
 
 The central environment protection fund is d esigned to help achieve an environment-friendly 
economic structure, prevent environmental nui sances, reduce and alleviate damages to the 
environment. 
 Developments directly related to the pr otection of the environment include i.a.: 
  
- protection of air purity; 
- protection of waters; 
- limitation of harmful effects of waste, waste management; 
- noise and vibration abatement; 
- protection and utilisation of natural reserves; 
- preservation of bio-diversity; 
- preservation of ancient Hungarian species of  animals such as “szürke marha” (grey 
cattle), “mangalica” (mangalica pig), “pu li”, “komondor,” “kuvasz”, “magyar agár” 
dogs, etc.  
- landscape management; 
- establishment of monitoring networks and information systems, etc.  
 
4.  Background and authority for the subsidy
 
 
 Act LXXXIII of 1992 on the Segregated State Funds, Decree 3/2003 (III.7. ) KvVM on the 
Rules Managing the Central Environment Protection Fund.  
 
5. Form of the subsidy  
 Support may be provided in the form of   
- grant,  
- repayable contribution free of interest or at preferential rates,  
- credit guarantee.  
 6. To whom and how the subsidy is provided 
 
 Domestic legal persons, domestic organisa tions without legal personality, self-employed 
persons, natural persons of  Hungarian citizenship.  
 
 The subsidies are awarded through tender pr ocedures. They are one-time, non-recurrent 
subsidies and may not be gran ted for operational purposes.  G/SCM/N/123/EEC/Add.11 
Page 126  
 
  
7.  Subsidy per unit or the total amount  
 
The total amount accounted for 27,1 billion HUF.  
 8. Duration of the subsidy 
 
No explicit time limit is attached to the programme. 
 
9.  Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
N.A. 
 
 10. BUDGETARY SCHEME EARMARKED FOR THE DEVELOPMENT OF SMALL 
AND MEDIUM SIZED ENTERPRISES 
 1. Title of the subsidy programme  
 
Budgetary scheme earmarked for the developmen t of small and medium sized enterprises. 
 
2.  Period covered by the notification 
 
 2003 
 3.  Policy objective and / or purpose of the subsidy   
The scheme is designed to help SMEs overco me disadvantages inherent in their size. 
 
4. Background and authority for the subsidy 
  The subsidy is provided for by the Act XCV of 1999 on the Small and Medium Sized 
Enterprises and on the Support of their Developmen t, the acts on annual state budgets and the Decree 
1/2001. (I.5.) of the Minister for Economic Affairs.  
 
5. Form of the subsidy 
 
 The support can be provided for in the form of  grant, interest rate support, preferential 
guarantee fee, interest free loan, loan with preferen tial interest rate, participation in venture capital 
funds. 
 
6. To whom and how the subsidy is provided 
 
All kinds of subsidy are awarded through tender procedures.  
 
Support may be granted for programmes whose purpose is i.a.  
 
- to establish conditions for start up,  
- to attain entrepreneurial know ledge, to get acquainted with  the law of the European 
Union, to develop entrepreneurial culture and managerial qualities,  
- to improve competitiveness through technological development,   G/SCM/N/123/EEC/Add.11 
 Page 127 
 
 
 - to enlarge subcontractors network,  
- to explore market possibilities,  
- to promote cooperation among SMEs in  production, selling and purchase,  
- to participate in EU programmes,  
 
 The subsidy may not be in excess of 50 per cent of the programme's total costs except for 
depressed counties where the ceiling is 65 per cent.  
 
 In the case of so called incubator houses th e upper limit is 75 per cent except for depressed 
counties where the ceiling may be increased by 10 per cent.  
 7. Subsidy per unit or the total amount 
 
 16,3 billion HUF. 
 
8. Duration of the subsidy   
No explicit time limit is attached to this programme.  
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N.A. 
 G/SCM/N/123/EEC/Add.11 
Page 128  
 
 HUNGARY 2004 
 
1. EXPORT ENHANCEMENT PROGRAMMES ...........................................................135 
1.1 Export enhancement programme  for agricultural products................................................135 
1.2 Export enhancement programme for apple harvested in1996............................................135 
1.2.1. Export enhancement programme for apple to be sold on the Russian market ...................135 
1.3 Export enhancement programme for live pig ....................................................................136 
1.4 Export enhancement programme for pot atoes for human consumption .......…………….137 
1.5  Intervention assistance of financ ing surplus stocks of dried onion....................................137 
1.6. Assistance to the export of seasonal milk surplus..............................................................137 
1.7. Assistance to the export of pork and processed pork-products..........................................137 
1.8. Export enhancement programme  for rabbit for slaughter..................................................137 
1.9. Export enhancement programme for 500.00 0 tons of wheat for feeding purposes ...........137 
1.10. Export enhancement programme for wheat ......................................................................137 1.10.1. Export enhancement programme  for wheat harvested in 1998..........................................137 
1.10.2. Export enhancement programme  for wheat harvested in 2002..........................................137 
1.10.3. Export enhancement programme  for wheat harvested in 2003...........................................137 
1.11. Export enhancement programme  for milling or EURO wheat ..........................................137 
1.12 Export enhancement programme for tabl e, regional and quality white wine in 
 barrels....................................................................................................................... ..........137 
1.13 Export enhancement pr ogramme for mushroom ...............................................................137 
1.14 Export enhancement programme for cer tain canned meat  and meat products .................137 
1.15 Additional export assistan ce for certain duck meat ...........................................................138 
1.16 Export enhancement programme for certain pork and processed pork products 
 of Szabolcs-Szatmár-Bereg, Borsod-Abaúj-Zemplén, Hajdú-Bihar, Jász-Nagykun  -Szolnok, Békés, Csongrád and Bács-Kiskun county........................................................138 1.17 Export enhancement programme for surplus stocks of sugar ............................................138 
1.18 Export enhancement programme for maize.......................................................................138 
1.19 Export enhancement programme for wine.........................................................................138 
1.20 Export enhancement progr amme for chicken meat ...........................................................139 
1.21  Export enhancement pr ogramme for pig meat...................................................................140 
 
2. PRICE-RELATED SUPPORT PROGRAMMES FOR CERTAIN  
 AGRICULTURAL PRODUCTS....................................................................................140 2.1 Support programmes for beef for slaughter .......................................................................140 
2.1.1 State purchase of beef for sl aughter at guaranteed price....................................................140 
2.1.2 Intervention support for the quality production of beef for slaughter................................141 2.2. Support programmes for pig for slaughter.........................................................................141 
2.2.1  State purchase of pig for slaughter at guaranteed price .....................................................141 
2.2.2  Intervention support for the quality production of pig for slaughter .................................141 2.2.3 Intervention support for pig for slaughter  of large weight originating from family 
 farms and private producers...............................................................................................142 2.2.4 Assistance to the purchase of pig for slaughter of large weight ........................................142 2.3 Support programme for maize for feeding purposes .........................................................142 
2.3.1 State purchase of maize for feeding pur poses at guaranteed price harvested in 1998.......142 
2.3.2 State purchase of maize for feeding pur poses at guaranteed price harvested in 1999.......142 
2.3.3 State purchase of maize for feeding pur poses at guaranteed price harvested in 2000.......142 
2.3.4 State purchase of maize for feeding pur poses at guaranteed price harvested in 2001.......142 
2.3.5 State purchase of maize for feeding pur poses at guaranteed price harvested in 2002.......143 
2.3.6 Intervention purchase and related assistance to storage of maize for  
 feeding purposes harvested in 2002...................................................................................143 2.4 Support programmes for wheat for human consumption...................................................144  G/SCM/N/123/EEC/Add.11 
 Page 129 
 
 
 2.4.1 State purchase of wheat for human consumption harvested in 1998 at guaranteed price..144 
2.4.2 State purchase of wheat for human consumption harvested in 1998 at guaranteed price..144 2.4.3 Income support for certain producers thr ough intervention purchase of their wheat  
 harvested in 1998 ............................................................................................................. ..144 
2.4.4. State purchase of wheat for human consumption harvested in 2000 at guaranteed price..144 
2.4.5 State purchase of wheat for human consumption harvested in 2001 at guaranteed price..144 
2.4.6 State purchase of wheat for human consumption harvested in 2002 at guaranteed price..144  2.4.7 Intervention purchase and related assi stance to storage of wheat for human  
 consumption harvested in 2002 .........................................................................................144 2.5 Support programmes for milk............................................................................................144 
2.5.1. Regulation of the market for cow milk ..............................................................................144 
2.5.2. Quality-linked support for cow milk..................................................................................144  
2.5.3. Assistance to the purch ase of qualified sheep milk ...........................................................145 
2.5.4.1 Assistance to the purchase of qualified goat milk in 2000.................................................146 2.5.4.2 Assistance to the purchase of qualified goat milk in 2002.................................................146 
2.5.4.3 Assistance to the purchase of qualified goat milk in 2003.................................................146 
2.5.5 Guidance price for  cow milk and inte rvention price for butter and skimmed milk  
 powder ........................................................................................................................ .......147 
2.5.6 Assistance to the purchase of cow milk.............................................................................148 
2.6 Support programmes for apple...........................................................................................149 2.6.1 Intervention assistance to the processi ng of apple in bulk harvested in 1996....................149 
2.6.2 Intervention assistance to the processi ng of apple in bulk harvested in 1997....................149 
2.6.3  Intervention assistance to the purchase of  apple in bulk harvested in 1998 .....................149 
2.6.4 Interest subsidy on loans received fo r the purchase and storage of the extra and 
 1st class fresh apple harvested in 1998 ..............................................................................149 2.6.5 Intervention assistance to the purchase of apple in bulk produced in 1999.......................149 
2.6.6  Support for cold storage of apple harvested in 2002 .........................................................149 
2.7 Support programmes for wine ..........................................................................................150 2.7.1 Intervention assistance for the distillatio n of wine produced in 1997 in order to  
 reduce stocks................................................................................................................. .....150 
2.7.2 Intervention assistance for the distillation of vintage wine of  1998 in order to   reduce stocks................................................................................................................. .....150 
2.7.3 Interest subsidy for the purchase of white  grapes produced in 1998 in certain regions ....150 
2.7.4 Intervention assistance for the distillation of vintage wine of 1999 in order to   reduce stocks................................................................................................................. .....150 
2.7.5 Intervention assistance for the distillation of   vintage wine with lees of 2001 in order  
 to reduce stocks.............................................................................................................. ....150 
2.7.6 Intervention assistance for the aid for the production of  must concentrate  
 used for the enrichment of wine of 2001 in order to reduce stocks ...................................151 
2.8 Support programme for barley, rye, triticale harvested in 1998 ........................................151 2.8.1 Income support for certain producers th rough intervention purchase of their  
 barley, rye, triticale harvested in 1998...............................................................................151 2.9 Support programme for poultry .........................................................................................151 
2.9.1 Assistance to the production of  quality poultry for slaughter............................................151 
2.10 Support programme for vegetables....................................................................................152 2.10.1 Quality-linked support of tomato for industrial purposes..................................................152 2.10.2 Quality-linked supp ort for red pepper................................................................................152  
2.10.3 Quality-linked support for onion .......................................................................................1 52 
2.10.4.1Guidance price and intervention pr ice of sugar and sugarbeet in 2001 .............................152 
2.10.4.2 Guidance and intervention price of sugar in 2003 and minimum price of sugarbeet .......152  
3-4 OTHER SUPPORT PROGRAMMES...........................................................................152 
3.1 Assistance to stock-breeding .............................................................................................1 52 G/SCM/N/123/EEC/Add.11 
Page 130  
 
 3.2 Assistance to fi shery activities........................................................................................... 153 
3.3 Assistance to agriculture and forestry................................................................................154 3.3.1 Assistance to the preservation or de velopment of biological bases and the  
 modernisation of related system of qualification...............................................................154 
3.3.1.1 Assistance to genetic development ....................................................................................15 4 
3.3.1.2 Assistance to the purchase and cha nges of breeding animals and to the  
 expansion of their stocks....................................................................................................1 55 
3.3.2 Assistance to the utilisa tion of arable lands in disadvantaged producing areas.................156 
3.3.3 Assistance to investment in, and develo pment of agricultural production and food  
 processing .................................................................................................................... ......156 
3.3.4 Assistance to mending, cultivating and preserving the qualit y and the quantity  
 of forests .................................................................................................................... ........156 
3.4. Assistance to game husbandry ...........................................................................................157  
3.5. Assistance to the protection of arable land ........................................................................158 3.6. Assistance to the constructi on and the renovation of buildings.........................................159 
3.6.1 Assistance to the construction of buildings of "new type" co-operations, 
 fishery an d for estry .......................................................................................................... ..159 
3.6.2 Assistance to technology investments in the food industry ...............................................159 3.6.3 Assistance to the modernisation and construction of buildings of forestry,   game husbandry, fishery and agriculture, assist ance to the investments of horticulture ...160 
3.7.1 Assistance to the establishment of vineyards and orchards (2003)....................................161 
3.7.2 Assistance to the establishment of orchards  and other plantations (ornamental plants)  
 (2004)........................................................................................................................ .........162 
3.8 Regional assistan ce programmes .......................................................................................163 
3.8.1 Assistance to the development of disadvantaged regions .................................................163 3.8.2  Assistance to the inhabitants of se ttlements with less than 3 000 inhabitants  
 living in disadvantaged regions .........................................................................................164 
3.8.3 Additional assistance to certain counties in disadvantaged areas ......................................164 3.8.4 Assistance to the development of agro-tourism.................................................................165 3.9  Assistance to foster co-operative integration.....................................................................165 3.9.1 Assistance to encourage th e establishment of co-operatives in the field of production,  
 purchase and marketing ....................................................................................................165  
3.9.2 Assistance to the functioning of co-operatives ..................................................................165 
3.10 Assistance to the purchase of individual shares of the members of co-operatives ............167 3.11.   Assistance to the realisation of certain goals of the agricultural policy.............................167 
3.11.1  Assistance to the realisation of cer tain goals of the agricultural policy.............................167 
3.11.2 Assistance to agricultural information network .................................................................167 
3.11.3  Assistance to  foreign training programmes ......................................................................167 
3.11.4 Assistance to agricultural research a nd development of non-profit organisations.............168 
3.11.5 Assistance to purchasing state-of-the-a rt technical equipment for institutions  
 engaged in agricultural r esearch and development ............................................................169 
3.12 Assistance to common marketing in agriculture................................................................169 3.13 Agricultural research programmes.....................................................................................169 
3.14  Assistance to the joint establishment of wholesale markets by producers and to  
 investments of joint sales organisations of producers........................................................170 4.1 Finance subsidies .......................................................................................................... .....170 
4.1.1 Assistance given to further agricultural activities..............................................................170 4.1.2 Governme nt guarantee..................................................................................................... ..170 
4.1.3 Assistance to the purchase of agricultural machinery........................................................170 
4.1.4   Assistance to the leasi ng of agricultural machinery...........................................................171 
4.1.5 Assistance to members of co-operatives in acquiring loans ..............................................171 4.1.6. Interest subsidy for bank loans for maximum one year, and for more than   one year, government guarantee ........................................................................................171  G/SCM/N/123/EEC/Add.11 
 Page 131 
 
 
  
4.1.7 Interest subsidy for purchasing grai n seed with quality assurance necessary for  
 the 1999 sowing ............................................................................................................... ..172 
4.1.8 Government guarantee for a HUF 16 billion loan given to small companies in the   canning sector ................................................................................................................ ....172 
4.1.9 Assistance to the renewal of agricultural machinery .........................................................172 
4.1.10 Loan programme for agricultural development .................................................................172 4.1.11 Loan programmes authorised with govern ment guarantee in 2001 and assistance to  
 investment in agricultural logistics in 2001-2002 .............................................................174 4.1.12  Assistance to the settlement the loans granted for less than one year................................175 
4.1.13  Interest rate subsidy for the farm development of individual  
 farms ........................................................................................................................ .........175 
4.2 Assistance to the production of  certain agricultural products............................................175 
4.3 Assistance to the restructur ing of the agricultural sector...................................................175 
4.4 Assistance to soil melioration and to irrigation investment...............................................175 
4.5  Assistance for planting and restructuring forests and afforestation ...................................176 
4.6. Payments for relief from environmental degradation of forests  ......................................177 4.7 Refund of the consumption tax on diesel fuel....................................................................178 4.8 Assistance to the participation in insurance schemes ........................................................179 4.9 Payments for relief from natural disasters .........................................................................179 
4.9.1  Payments for relief from natural disast ers affecting plant cultivation in 1995 ..................179 
4.9.2  Payments for relie f from fireblight disease........................................................................179 
4.9.3  Payments for relief from natural disast ers affecting plant cultivation in 1997 ..................179 
4.9.4 Payments from relief from natural disast ers not covered by insurance policies................180 
4.9.5 Assistance to provide relief from the dama ge caused by the extraordinary weather  
 conditions in June  and July 1999 .......................................................................................180 
4.9.6  Assistance to provide relief from the damage caused by flood and internal water  
 occurred in 1999 .............................................................................................................. ..180 
4.9.7. Assistance to the intervention of unharvested sugar beet .....................................................180 4.9.8 Assistance to moderate the damage caused  by flood  and internal water in 2000 .............180 
4.9.9 Assistance to land cultivation provided  for the producers who incurred damage  
 due to the drought in 2000 .................................................................................................180  
4.9.10 Assistance to provide relief from the damage  caused by flood and internal water in  
 Szabolcs-Szatmár-Bereg count y and Bereg region in 2001...............................................180 
4.9.11 Assistance to provide relief from the da mage caused by frost to vineyards and  
 orchards that occurred in winter of 2001 and in Spring of 2002 .......................................180 
4.9.12  Assistance to provide relief from the damage caused by the storm occurred in  
 9 August 2002................................................................................................................. ...180 
4.9.13 Assistance to provide re lief from the damage caused by frost and drought in 2003 .........180 
4.10 Assistance to the organisati on of wine-growing communities ..........................................181 
4.11 Assistance to the utilisation of advisory and extension services........................................181 4.12 Assistance to the "Borsod-Abaúj-Zemplén" region...........................................................182 4.13  Assistance to the maintenance of recreational and park woods.........................................182 
4.14  Assistance to tobacco ................................................................................................... .....183 
4.15 Assistance to potatoes ................................................................................................... ....183 
4.16 Assistance to stab ilise the egg market................................................................................183 
4.17 Intervention support for quality  production of game birds ................................................184 
4.18 Assistance to beekeepers.................................................................................................. ..184 
4.19 Assistance to the establishment of e nvironmentally friendly crop structure .....................184 
4.20 Assistance to the transition to organic production (and establishment of   agro-environmental regions)..............................................................................................184 4.21. Assistance to stabilisation of the cereal market .................................................................184 4.22 Intervention assistance to producers of wheat for feeding purposes for selling G/SCM/N/123/EEC/Add.11 
Page 132  
 
  their crop.................................................................................................................... ........185 
4.23 Assistance to the maintenance and deve lopment of the statistical data-bases of  
 producers’ councils ........................................................................................................... .185 
4.24 Assistance to the impr ovement of competitiveness ...........................................................185 
4.25 Assistance to the reduction of costs rela ting to the rental of agricultural land ..................185 
4.26 Assistance to socially disadva ntaged agricultural communities ........................................186 
4.27 Assistance to the construction a nd modernisation of rural roads.......................................186 
4.28 Assistance to the ser vice of field wardens .........................................................................187 
4.29 Assistance to young farmers (and to the em ployment of young agricultural experts).......187 
4.30 Assistance to agricultural employment..............................................................................189 
4.31 Assistance to the school milk programme .........................................................................189 
4.32 Assistance to the purchasing of the requi red amount of maize for feeding purposes........189 
4.33.1 Additional assistance to the storage of maize harvested in 1998 for feeding purposes  
 in public warehouses.......................................................................................................... 189 
4.33.2 Assistance to the storage of mai ze for feeding purposes harvested in 1999  
 in public warehouses.......................................................................................................... 189 
4.33.3 Assistance to the storage of maize fo r feeding purposes harvested in 2001 in public 
 warehouses.................................................................................................................... .....189 
4.33.4 Assistance to the storage of mai ze for feeding purposes harvested in 2002  
 in public warehouses.......................................................................................................... 189 
4.34. Wheat exchange transaction ..............................................................................................1 90 
4.35 Assistance to the purchase of wheat seed for the 1998 autumn sowing ............................190 
4.36  Interest subsidy to loans received fo r the purchase of apple in bulk harvested  
 in 1997 for processing purposes ........................................................................................190 4.37  Interest subsidy on loans received for the purchase of apple in bulk harvested in 1998 ...190 4.38 Intervention assistance to the selling of wheat for feeding purposes.................................190 
4.39 Market intervention re lated to duck production ................................................................190 
4.40  Quality-linked support to the production of sugar beet .....................................................190 
4.41 Emergency income support to certain producers of cereals...............................................190 
4.42 Assistance to reduce certain san itary and phytosanitary costs...........................................191 
4.43 Assistance to the production of sowing seed .....................................................................192 4.44 Assistance to the purchase of the required amount of cereals for feeding and of  
 wheat for milling purposes.................................................................................................192  
4.45.1 Assistance to the storage in public  warehouse of wheat harvested in 1998.......................192 
4.45.2   Assistance to the storage in pub lic warehouse of wheat harvested in 2001.......................192 
4.45.3 Assistance to the storage in public  warchouse of wheat harvested in 2002.......................192 
4.46 Assistance to introduce the HACCP system of quality management ................................193 
4.47 Intervention support to maintain the EU approved level of hygiene of pig and cattle 
 slaughterhouses............................................................................................................... ...194 
4.48 Assistance to organisations produc ing and selling fruit and vegetables ............................194 
4.49 Assistance to research and to  development of co-operatives ............................................194 
4.50 Assistance to programmes of agricultu ral structure and rural development .....................194 
4.51 Assistance to technical development .................................................................................194 
4.52 Assistance to genetic development ....................................................................................194 
4.53 Assistance to plant protection against the damage caused by non-indigenous disease .....194 
4.54 Assistance to regional development...................................................................................195 4.54.1 Assistance to territorial development.................................................................................19 5 
4.54.2 Assistance to ru ral development ........................................................................................1 95 
4.54.3 Assistance to the deve lopment of rural areas.....................................................................195 
4.54.4 Assistance to the promotion of rural areas.........................................................................195 4.55 Payments for relief from dama ge caused by wild animals ...............................................196 
4.56 Assistance to the mark et of pig for slaughter.....................................................................196 
4.57 Assistance to the storage in public ware house of barley, rye and triticale harvested  G/SCM/N/123/EEC/Add.11 
 Page 133 
 
 
  in 1998 ....................................................................................................................... ........196 
4.58  Area-based payment for crop production...........................................................................196 4.59 Assistance to the quality control of certain foods..............................................................198 4.60 Assistance to the testing of ag ricultural machines and technology....................................199 
4.61 Assistance to the trade of products or iginating from the ecological fishing of  
 silver carp in Lake Balaton ................................................................................................199  
4.62 Quality-linked support to the production of game meat ....................................................200 
4.63 Assistance to on-farm education........................................................................................200  
4.64.1 Assistance to the storage in public  warehouse of wheat harvested in 1999.......................200 
4.65 Assistance to agricultural research institutes with research and development activities ...200 
4.66 Assistance to establish faci lities of inland waterways .......................................................200 
4.67 Quality-linked support for maize for human consumption................................................201 
4.68 Assistance to maintain the qua lity of processed pork and beef .........................................202 
4.69 Assistance to the production of apple in bulk delivered for processing to food  
 industry in 2002 .............................................................................................................. ...202 
4.70 Assistance to the implementation of the National Agricultural Environment  
 Protection Programme .......................................................................................................203  
4.71 Additional assistance for family farms ..............................................................................205 
4.72 Quality-linked support of to mato for industrial purposes..................................................205 
4.73 Quality-linked supp ort for red pepper................................................................................205 
4.74 Quality-linked support for onion .......................................................................................205  
4.75 Quality-linked support for pea...........................................................................................2 05 
4.76 Quality-linked support for cucumber.................................................................................205 4.77 Quality-linked support for fruits ........................................................................................2 05 
4.77.1 Quality-linked support fo r cherry and sour cherry.............................................................205 
4.77.2 Quality-linked support for raspberry .................................................................................205  
4.78 Interest rate subsidy for bank loans received for storage in public warehouse of  
 canned and frozen products ...............................................................................................205 4.79 Assistance to the self restriction of cow milk production..................................................206 4.80 Assistance to private forestry............................................................................................ .206 
4.81 Assistance to the u tilisation of bio fuel..............................................................................207  
4.82 Special support for the quality production of beef for slaughter .......................................207 
4.83 Additional assistance to enhance the husbandry conditions ..............................................208 
4.83.1 Assistance to poultry for slaughter ....................................................................................2 08 
4.83.2 Assistance to pig for slaughter......................................................................................... ..209 
4.84 The flat rate cost refund related to the intervention stocks of maize harvested   in 2002 ....................................................................................................................... ........210 
4.85 Additional assistance to cow milk .....................................................................................210 
4.86 Assistance to protection against hail..................................................................................211  
4.87 Assistance to rural development services ..........................................................................212 
4.88 Assistance to the crop production and animal breeding of agricultural producers ............212 4.89 Assistance to the prefinance of crop pro duction and animal breeding of agricultural  
 producers..................................................................................................................... .......213 
4.90 National supplementary (“top up“) payment connected to the SAPS (Single Area  
 Payment System) int he year 2004.....................................................................................214 4.91 SAPARD Programme ........................................................................................................21 5 
4.91.1 SAPARD Programme: Assistance to invest ments of agricultural entrepreneurships........215 
4.91.2 SAPARD Programme: Development of processing and marketing of agricultural  
 and fishery products.......................................................................................................... .216 
4.91.3 SAPARD Programme: Developm ent of rural infrastructure .............................................217 
4.91.4 SAPARD Programme: Technical assistance .....................................................................218 
4.92 Co-financed  assistance to  the school milk programme.....................................................219 
 G/SCM/N/123/EEC/Add.11 
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5 CORPORATE TAX CONCESSIONS TO ASSIST STRUCTURAL   ADJUSTMENT AND ECONOMIC DEVELOPMENT ..............................................220 
5.1 Tax Concession for Investments Exceeding 3 Billion HUF ..............................................220 
5.2 Tax Concession for Investme nts Exceeding 10 Billion HUF ............................................221 
5.3 Tax Concession to Promote Structural Adjustment ..........................................................222 
5.4 Tax Concession for Bank Credits Financing Other Investments.......................................223 5.5 Tax Rate Relief for Foreign Investors................................................................................224  
5.6 Tax Concession Relate d to Investments ...........................................................................225 
5.7 Tax Relief for Projects of Micro and Small Enterprises....................................................226 
5.8 Tax Concession for Small and Medium Sized Enterprises................................................227 
5.9 Tax Relief for Development Reserve.................................................................................228 5.10 Tax Concession Related to  Development Projects ............................................................229 
5.11 Tax Relief for Royalties.................................................................................................. ...230 
5.12 Tax Relief for Interest Incomes .........................................................................................23 1 
5.13 Tax Relief for Cap ital Market Profit..................................................................................232 
5.14 Tax Relief for Local Business Tax ....................................................................................233  
6. RESEARCH AND TECHNICA L INNOVATION  FUND ..........................................234 
 
7. BUDGETARY SCHEME EARMARKED FOR ECONOMIC DEVELOPMENT...235 
 
8.  MINING CONVER SION PROGRAMME ..................................................................236 
 
9. CENTRAL ENVIRONMENT PROTECTION FUND ................................................237 
 
10. BUDGETARY SCHEME EARMARKED FOR THE DEVELOPMENT  
 OF SMALL AND MEDIUM SIZED ENTERPRISES.................................................238   G/SCM/N/123/EEC/Add.11 
 Page 135 
 
 
 1 EXPORT ENHANCEMENT PROGRAMMES  
  1.1 Export enhancement progra mme for agricultural products  
 
Phased out 
  
1.2 Export enhancement programme for apple harvested in 1996  
  
 Phased out  1.2.1 Export enhancement programme for appl e to be sold on the Russian market  
 
1. Title of the subsidy programme 
 
 Export enhancement programme for apple to be sold on the Russian market 
 
2. Period covered by the notification 
 
 2004 
 
3. Policy objective and/or purpose of the subsidy 
  To help to maintain the equilibrium between  domestic supply and demand and to improve the 
competitiveness of the products in export markets.  
4. Background and authority for the subsidy 
 
Decree 22/2003. (III. 4.) FVM of the Minister for Agriculture and Regional Development  
Decree 100/2003. (VIII. 22.) FVM of the Minister  for Agriculture and Regional Development  
 
5. Form of the subsidy 
 
 Grant 
 
6. To whom and how the subsidy is provided 
 
 Exporters 
 
7. Subsidy per unit or the total amount 
 
HUF 24 per kg 
 Maximum amount HUF 120 million 
Maximum volume 5000 tons 
 
 Payments under this programme amounted to HUF 2.7 million during the period covered by 
the notification.  
8. Duration of the subsidy 
  From 7 March to 14 June 2004 
 G/SCM/N/123/EEC/Add.11 
Page 136  
 
 9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
1.3 Export enhancement programme for live pig 
 
1.  Title of the subsidy programme 
 
 Export enhancement programme for live pig 
 
2. Period covered by the notification 
 
 2004 
 
3. Policy objective and/or purpose of the subsidy 
  To help to maintain the equilibrium between  domestic supply and demand and to improve the 
competitiveness of the products in export markets.  
4. Background and authority for the subsidy 
 
 Decree 3/2003 (I.24.) FVM-PM-KüM of the Minister for Agriculture and Regional 
Development, the Minister for Finance and the Minister for Foreign Affairs 
 Decree 33/2003 (III.31.) FVM-PM-KüM of the Minister for Agriculture and Regional Development, the Minister for Finance and the Minister for Foreign Affairs 
 Decree 11/2004 (I.24.) FVM-PM-KüM of the Mi nister for Agriculture and Regional 
Development, the Minister for Finance and the Minister for  Foreign Affairs 
 
5. Form of the subsidy  
 Grant  
 
6. To whom and how the subsidy is provided 
 
 Exporters  
 
7. Subsidy per unit or the total amount 
  HUF 27- 90 per kg  
 
 Payments under this programme amounted to HUF 145 million during the period covered by 
the notification. 
 
8. Duration of the subsidy 
 
 From 24 January 2003 to 30 April 2004 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
  N.A. 
  G/SCM/N/123/EEC/Add.11 
 Page 137 
 
 
 1.4 Export enhancement programme for potatoes for human consumption 
  
 Phased out  
1.5 Intervention assistance of financing surplus stocks of dried onion 
 
 Phased out  
1.6  Assistance to the export of seasonal milk surplus 
  Phased out   
 
1.7  Assistance to the export of  pork and processed pork-products 
 
 Phased out 
 
1.8 Export enhancement progra mme for rabbit for slaughter 
 
 Phased out  
1.9 Export enhancement programme for 500. 000 tons of wheat for feeding purposes   
 
 Phased out  
1.10  Export enhancement programme for wheat 
 
1.10.1  Export enhancement programme for wheat harvested in 1998 
 
 Phased out   
1.10.2  Export enhancement programme for wheat harvested in 2002 
  Phased out 
 
1.10.3 Export enhancement programme for wheat harvested in 2003 
 
 Phased out  1.11 Export enhancement progra mme for milling or EURO wheat 
 
 Phased out 
 
1.12 Export enhancement programme for table,  regional and quality white wine in barrels 
   
Phased out 
 
1.13 Export enhancement programme for mushroom   
 
 Phased out 
 
1.14 Export enhancement programme for certain canned meat  and meat products   
 
 Phased out G/SCM/N/123/EEC/Add.11 
Page 138  
 
  
1. 15 Additional export assistance for certain duck meat  
 
 Phased out  1.16 Export enhancement programme for cert ain pork and processed pork products of 
Szabolcs-Szatmár-Bereg, Borsod-Abaúj-Zemplé n, Hajdú-Bihar, Jász-Nagykun-Szolnok, 
Békés, Csongrád and Bács-Kiskun county 
 
 Phased out 
 
1.17 Export enhancement programme for surplus stocks of sugar  
  
 Phased out  1.18 Export enhancemen t programme for maize  
 
 Phased out  
1.19 Export enhancement programme for wine 
 
1.  Title of the subsidy programme 
 
Additional export assistance for wine  
 
2.   Period covered by the notification 
 
 2004 
 
3.   Policy objective and/or purpose of the subsidy 
 
To improve the competitiveness of the products in export markets. 
 
4.   Background and authority for the subsidy  
Decree 84/2002 (IX.13) FVM-PM-KüM  
 
5.   Form of the subsidy 
 
 Grant 
 
6. To whom and how the subsidy is provided 
 
 Exporters  
 
7. Subsidy per unit or the total amount 
 
 HUF 28 per liter  
   
 Payments under this programme amounted to HUF 0,7 million during the period covered by 
the notification.   G/SCM/N/123/EEC/Add.11 
 Page 139 
 
 
 8. Duration of the subsidy 
 
 From 13 September 2002 
The duration of the subsidy has not been specified 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 
1.20  Export enhancement programme for chicken meat 
  
1. Title of the subsidy programme 
 
Additional export assistance for chicken meat  
 2. Period covered by the notification  
 2004 
 
3. Policy objective and/or purpose of the subsidy 
 
 To help to maintain the equilibrium between  domestic supply and demand and to improve the 
competitiveness of the products in export markets.  
4. Background and authority for the subsidy 
 
 Decree 93/2003 (VIII.14.) FVM of the Minister  For Agriculture and Regional Development 
Decree 8/2004 (VIII.14.) FVM of the Minister For Agriculture and Regional Development 
 
5. Form of the subsidy 
 
 Grant 
 
6. To whom and how the subsidy is provided 
 
Exporters 
   7. Subsidy per unit or the total amount  
HUF 50-120 per kg 
   Payments under this programme amounted to HUF 220 million during the period covered by 
the notification. 
 
8. Duration of the subsidy 
 
 From 14 August 2003 to 30 April 2004 
 9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 G/SCM/N/123/EEC/Add.11 
Page 140  
 
 1.21  Export enhancement programme for pig meat  
 
1., Title of the subsidy programme 
 
Export enhancement programme for pig meat  
 
2. Period covered by the notification 
 
 2004 
 3. Policy objective and/or purpose of the subsidy  
 To help to maintain the equilibrium between  domestic supply and demand and to improve the 
competitiveness of the products in export markets.  4. Background and authority for the subsidy  
 Decree 38/2003 (IV.11.) FVM-PM-KüM of the Minister For Agriculture and Regional 
Development  Decree 9/2004 (IV.11.) FVM-PM-KüM of the Minister for Agriculture and Regional 
Development 
 
5. Form of the subsidy 
 
 Grant 
 6. To whom and how the subsidy is provided  
Exporters 
 
7. Subsidy per unit or the total amount 
 
HUF 150 per kg  
  Payments under this programme amounted to  HUF 414 million during the period covered by 
the notification.  8. Duration of the subsidy  
 From 11 April 2003 to 30 April 2004 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 
2.  PRICE-RELATED SUPPORT PROGRAMMES FOR CERTAIN AGRICULTURAL 
PRODUCTS  
 
2.1 Support programmes for beef for slaughter 
2.1.1  State purchase of beef for slaughter at guaranteed price   
Phased out  G/SCM/N/123/EEC/Add.11 
 Page 141 
 
 
 2.1.2  Intervention support for the quality production of beef for slaughter 
Phased out 
 
2.2 Support programmes for pig for slaughter 
 
2.2.1 State purchase of pig for slaughter at guaranteed price  
 
 Phased out 
2.2.2 Intervention support for the quality production of pig for slaughter 
 
1.  Title of the subsidy programme  
Intervention support for the quality production of pig for slaughter   
 
2.   Period covered by the notification 
 
 2004 
 
3.  Policy objective and/or purpose of the subsidy 
 
 To ensure the equilibrium between domestic  supply and demand, to support agricultural 
income and encourage quality production. 
 
4.  Background and authority for the subsidy   
 
112/2001. (XII.27.) FVM of the Minister fo r Agriculture and Regional Development  
47/2002. (V.17.) FVM of the Minister for Agriculture and Regional Development;  
105/2003.(XII.12.)  FVM of the Minister for Agriculture and Regional Development     
 
5.   Form of the subsidy 
 
 Grant 
 
6.   To whom and how the subsidy is provided 
 
 Producers, processors  
 
7.  Subsidy per unit or the total amount  
Producers: 
  
Class Purchase price Available support  
E and S 0-378 HUF 0-10 
U 0-361 HUF 0-7 
 
Processors: 
 
Class Purchase price Available support  
E and S 400- HUF 0-10 
U 380- HUF 0-7 
 
 G/SCM/N/123/EEC/Add.11 
Page 142  
 
  The guidance price (i.e. the price which – indicates the expected central point of the 
fluctuation in prices) evolve d during the years as follows: 
 
Class Guidance price, HUF per kg 
E and S  284-381 
U 263-367 
 
 An intervention price was established based on the guidance price.  When it is reached or 
exceeded by the market price, the instruments of  the agricultural market regime (selling of 
intervention stocks or other measures) are applied.   The maximum of the intervention price was HUF 
381 (E and S quality group) and HUF 367 (U quality group). 
 
 Payments under this programme amoun ted t o HUF 630 million during the period 
covered by the notification. 
 
8.   Duration of the subsidy 
 
 From 27 December 2001 to 30 September 2003 
 
9.   Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 2.2.3  Intervention support for pig for slaughter of large weight originating from family farms 
and private producers 
 
Phased out  
2.2.4 Assistance to the purchase of pig for slaughter of large weight 
 
 Phased out 
 
2.3 Support programme for maize for feeding purposes 
 
2.3.1 State purchase of maize for feeding purpo ses at guaranteed price harvested  in 199 8 
   Phased out   
2.3.2 State purchase of maize for feeding purposes at guaranteed price harvested in 1999 
 
 Phased out   
2.3.3 State purchase of maize for feeding purpo ses at guaranteed price harvested in 2000. 
  Phased out 
 
2.3.4 State purchase of maize for feeding purpo ses at guaranteed price harvested in 2001. 
 
 Phased out   G/SCM/N/123/EEC/Add.11 
 Page 143 
 
 
 2.3.5 State purchase of maize for feeding purposes at guaranteed price  harvested in 2002 
 
 Phased out  
2.3.6 Intervention purchase and related assist ance to storage of maize for feeding purposes 
harvested in 2002 
 
1. Title of the subsidy programme 
 
 Intervention purchase and related assistance to  storage of maize for feeding purposes 
harvested in 2002 
 
2. Period covered by the notification 
 
 2003 
 
3. Policy objective and/or purpose of the subsidy 
 
To stabilise and support agricultural income and prices.  
 
4. Background and authority for the subsidy 
 
 Decree 217/2002 (X.24) of the Government  
Decree 62/2003 (VI.12.) FVM of the Minister for Agriculture and Regional Development  
 
5. Form of the subsidy 
 
 Buying-in of maize for feeding purposes, support fo r interest of credit, arrangement of storage 
 
6. To whom and how the subsidy is provided 
 
 Producers 
 
7. Subsidy per unit or the total amount 
 
 Intervention price: HUF 21,000/t  Interest subsidy: 100 per cent  
 arrangement of storage : HUF 20/t/week -HUF 100/t/week  
  Payments under this programme amounted to HUF 11 million during the period  covered by 
the notification. 
 
8. Duration of the subsidy 
 
 From 27 October 2002 to 21 January 2004  
9. Statistical data permitting an assessment of the trade effects of the subsidy 
  N.A. 
 G/SCM/N/123/EEC/Add.11 
Page 144  
 
 2.4 Support programmes for wheat for human consumption 
 2.41 State purchase of wheat for human consumption harvested in 1998 at guaranteed price  
 
Phased out 
 
2.4.2 State purchase of wheat for human consum ption harvested in 1998 at guaranteed price  
Phased out. 
2.4.3. Income support for certain producers th rough intervention purchase of their wheat 
harvested in 1998  
 Phased out 
 
2.4.4 State purchase of wheat for human consum ption harvested in 2000 at guaranteed price  
 
Phased out 
  
2.4.5  State purchase of wheat for human consum ption harvested in 2001 at guaranteed price  
 
Phased out 
  
2.4.6 State purchase of wheat for human consum ption harvested in 2002 at guaranteed price  
 
Phased out 
2.4.7  Intervention purchase and related assistance to storage of  wheat for human 
consumption harvested in 2002  
Phased out 
 
2.5    Support programmes for milk 
 2.5.1 Regulation of the market for cow milk   
 Phased out 
2.5.2 Quality-linked support for cow milk 
 
1.  Title of the subsidy programme 
 
 Quality-linked support for cow milk 
 
2.   Period covered by the notification 
 
 2004 
 
3.  Policy objective and/or purpose of the subsidy 
 
 To stabilise and support agricultural income.  
  G/SCM/N/123/EEC/Add.11 
 Page 145 
 
 
 4. Background and authority for the subsidy 
 
Decree 12/2002. (I.28.) FVM of the Minister for Agriculture and Regional Development Decree 22/2002. (III.30.) FVM of the Minister  for Agriculture and Regional Development 
Decree 26/2003.(III.11.)FVM of Minister fo r Agriculture and Regional Development 
Decree 61/2003.(VI.7.) § 3, FVM of the Minist er for Agricilture and Regional Development 
Decree 89/2003.(VII.24.) FVM of the Minister for Agriculture and Regional Development 
 
5.   Form of the subsidy 
 
Grant 
 
6.   To whom and how the subsidy is provided 
 
Producers, processors  
 
7.   Subsidy per unit or the total amount 
 
 HUF 4.5.-6 per l for extra high quality milk , if the purchase price is at least 130-145 HUF 
per l.   
 Payments under this programme amounted to  HUF 5,902 million during the period covered 
by the notification. 
 
8.  Duration of the subsidy 
 
 From 28 January  2002 to 30 December 2003 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 
2.5.3 Assistance to the purchase of qualified sheep milk 
 
1.  Title of the subsidy programme 
 
 Assistance to the purchase of qualified sheep milk  
 
2.   Period covered by the notification 
 
 2004 
 
3.   Policy objective and/or purpose of the subsidy 
 
To stabilise and support agricultural inco me and to encourage quality production. 
 
4.   Background and authority for the subsidy 
 
Decree  6/2003. (II.1.) FVM of the Minister for Agriculture and Regional Development 
 G/SCM/N/123/EEC/Add.11 
Page 146  
 
 5.   Form of the subsidy 
 
 Grant 
 
6.   To whom and how the subsidy is provided 
 
Processors 
 
7.  Subsidy per unit or the total amount 
 
 HUF 30 per l for first class quality milk if the purchase price is at least 150 HUF per l The 
maximum eligible quantity for support is 1.5 million l. 
 
 Payments under this programme amounted to HUF  8 million during the period covered by the 
notification. 
 
8. Duration of the subsidy 
 
 From 2 February to 30 December 2003 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
  N.A. 
 
2.5.4.1 Assistance to the purchase of qualified goat milk in 2000 
 
Phased out 
 
2.5.4.2 Assistance to the purchase of qualified goat milk in 2002 
 
Phased out 
 2.5.4.3  Assistance to the purchase of qualified goat milk in 2003 
 
1.  Title of the subsidy programme 
 
Assistance to the purchase of qualified goat milk in 2003 
 
2.   Period covered by the notification 
  
 2003 
 
3.   Policy objective and/or purpose of the subsidy 
 
To stabilise and support agricultural inco me and to encourage quality production 
.   
4.   Background and authority for the subsidy 
 
Decree 5/2003. (II.1.)  FVM of the Minister for Agriculture and Regional Development 
 
5.   Form of the subsidy 
 
 Grant   G/SCM/N/123/EEC/Add.11 
 Page 147 
 
 
  
6.   To whom and how the subsidy is provided 
 
Processors 
 
7.   Subsidy per unit or the total amount  
HUF 20 per l for first class quality milk if the purchase prise is at least HUF 90-95 per l. 
 
The maximum eligible quantity for support is 2.25 million l. 
 
 Payments under this programme amounted to HUF 12 million during the  period covered by 
the notification. 
 
8. Duration of the subsidy 
 
 From 1 February to 30 December 2003 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N.A. 
 
2.5.5 Guidance price for cow milk and and int ervention price  for butter and skimmed milk 
powder 
 
1. Title of the subsidy programme 
 
 Guidance price for cow milk and and intervention price for butter and skimmed milk powder 
 
2.   Period covered by the notification 
 2004 
3.  Policy objective and/or purpose of the subsidy 
 To stabilise and support agricultural income.  
4.   Background and authority for the subsidy 
Decree 27/2003. (I. 28.) FVM of the Minister for Agriculture and Regional Development 
Decree 42/2004. (IV.9.) FVM of the Minister  for Agriculture and Regional Development 
 
5.  Form of the subsidy 
Grant 
6.   To whom and how the subsidy is provided 
Producers, processors  G/SCM/N/123/EEC/Add.11 
Page 148  
 
 7.   Subsidy per unit or the total amount 
 The guidance price of milk which indicates the e xpected central point of fluctuation in prices 
was HUF 72 per l. 
 
Producer: 
Additional support HUF 5-10 per liter up to the extent that the purchase price reaches HUF 72 per litre  The intervention prices for butter were as follows: 
  
minimum intervention price: HUF 294 per kg maximum intervention price: HUF 401 per kg  The intervention prices for skimme d milk powder were as follows: 
 
minimum intervention price: HUF 345 per kg maximum intervention price: HUF 470 per kg      
 Payments under this programme amounted to  HUF 8,012 million during the period covered 
by the notification. 
 
8. Duration of the subsidy 
 
 From 11 March 2003 to 30 April 2004  
 2.5.6 Assistance to the purchase of cow milk  
 
1.  Title of the subsidy programme 
 
Assistance to the purchase of cow milk 
 
2.   Period covered by the notification   
 2004 
 
3.   Policy objective and/or purpose of the subsidy 
  To stabilise and support agricultural income  
 
4. Background and authority for the subsidy  
Decree 31/2004 (III.19.) FVM of the Minister for Agriculture and Regional Development 
 
5.   Form of the subsidy 
  
 Grant 
 
6.   To whom and how the subsidy is provided  
 P rocessor 
  G/SCM/N/123/EEC/Add.11 
 Page 149 
 
 
 7.  Subsidy per unit or the total amount 
 
HUF 30-40 per litre if the purchase price is at least HUF 68 per litre. 
 
 Payments under this programme amounted to  HUF 2,535 million during the period covered 
by the notification. 
 
8. Duration of the subsidy 
 
 From 19 March  to 30 April 2004 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 2.6 Support programmes for apple 
 
2.6.1 Intervention assistance to the pro cessing of apple in bulk harvested in 1996 
 Phased out 
 
2.6.2   Intervention assistance to the pr ocessing of apple in bulk harvested in 1997 
Phased out 
 
2.6.3   Intervention assistance to the pu rchase of  apple in bulk harvested in 1998 
Phased out 
 
2.6.4 Interest subsidy on loans received for the purchase and storage of extra and 1  st class 
fresh apple harvested in 1998  
Phased out 
 
2.6.5 Intervention assistance to the pu rchase of apple in bulk harvested in 1999 
Phased out 
 
2.6.6  Support for cold storage of apple harvested in 2002 
 
1.  Title of the subsidy programme 
 
Support for cold storage of apple harvested in 2002  
 
2.   Period covered by the notification 
 
 2004 
 
3.   Policy objective and/or purpose of the subsidy  
To ensure the equilibrium betw een domestic supply and demand  
 G/SCM/N/123/EEC/Add.11 
Page 150  
 
 4.   Background and authority for the subsidy 
 
Decree 91/2002 (X.4.) FVM of the Minister for Agriculture and Regional Development 
 
5.   Form of the subsidy 
 
 Grant  
 
6.   To whom and how the subsidy is provided 
 
 P roducer   
 
7. Subsidy per unit or the total amount 
 
 Support for storage: HUF 1,82 per kg per month 
Support for purchased apple after storage : HUF 5.46-14.56 per kg 
 
Payments amounted to HUF 2 million during the period covered by the notification.  
8. Duration of the subsidy 
 
 From 4 October 2002 to 30 September 2003 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 
2.7 Support programmes for wine  
2.7.1  Intervention assistance for the distillation  of wine produced in 1997 in order to reduce 
stocks 
Phased out 
2.7.2 Intervention assistance for the distillation  of vintage wine of 1998 in order to reduce 
stocks 
Phased out 
 
2.7.3 Interest subsidy for the purchase of wh ite grapes produced in 1998 in certain regions 
 
Phased out 
 
2.7.4  Intervention assistance for the distillation  of vintage wine of 1999 in order to reduce 
stocks  
Phased out 
 
2.7.5 Intervention assistance for the distillation of vintage wine with lees of 2001 in order to 
reduce stocks 
Phased out 
  G/SCM/N/123/EEC/Add.11 
 Page 151 
 
 
 2.7.6 Intervention assistance for the aid for the production of must concentrate used for  the 
enrichment of wine of 2001  in order to reduce stocks 
 Phased out 
 
2.8 Support programme for barley, ry e, triticale harvested in 1998 
 
2.8.1 Income support for certain producers thro ugh intervention purchase of their barley, 
rye, triticale harvested in 1998  
Phased out 
 2.9  Support programme for poultry 
2.9.1 Assistance to the production of quality poultry for slaughter  
 
1.  Title of the subsidy programme 
 
Assistance to the production of quality poultry for slaughter  
 
2.   Period covered by the notification 
 
 2004 
 
3. Policy objective and/or purpose of the subsidy  
 To ensure the equilibrium between domestic  supply and demand, to support agricultural 
income and encourage quality production. 
 
4. Background and authority for the subsidy 
 
Decree 55/2002 (VI.28.) FVM of the Minister for Agriculture and Regional Development 
Decree 89/2002 (X.1.) FVM of the Minister for Agriculture and Regional Development 
 
5. Form of the subsidy 
 
Grant 
 
6. To whom and how the subsidy is provided 
 
 Producers, processors 
 
7.   Subsidy per unit or the total amount 
 
 The amount of subsidy is HUF 8.2 per kg for the first class poultry for slaughter, HUF 15.8 
per kg for chicken for slaughter) 
 
Processors: The amount of subsidy is:  HUF 8 per kg for fi rst class poultry, if the purchase price is least 
HUF 175-250. 
 
 Payments under this programme amounted to HUF  5 million during the period covered by the 
notification. G/SCM/N/123/EEC/Add.11 
Page 152  
 
  
8.  Duration of the subsidy 
 
 From 28 June 2002 to 30 December 2003 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
2.10  Support programme for vegetables 
 
2.10.1. Quality-linked support of  tomato for industrial purposes 
 
 The description of the subsidy figures under point  4.72, as the attribution of the grant is no 
longer related to the price of the product. 
 
2.10.2 Quality-linked support for red pepper  
 
 The description of the subsidy figures under point  4.73, as the attribution of the grant is no 
longer related to the price of the product.  2.10. 3 Quality-linked support for onion  
 
 The description of the subsidy figures under point  4.74, as the attribution of the grant is no 
longer related to the price of the product.  2.10.4.1 Guidance price and intervention price of sugar and sugarbeet in 2001 
 
Phased out  
2.10.4.2 Guidance and intervention price of sugar in 2003 and minimum price of sugarbeet 
 
Phased out 
 
3-4  OTHER SUPPORT PROGRAMMES 
 3.1 Assistance to stock-breeding  
 
1.  Title of the subsidy programme  
Assistance to stock-breeding 
 
2. Period covered by the notification 
   2004 
 
3. Policy objective and/or purpose of the subsidy 
 
 To support the operation and development of identification, registration and inspection and 
information system of breeding animals. 
  To support the purchasing of the equipment necessa ry for identification, analysis of genetic 
performance and estimation of genetic value.  G/SCM/N/123/EEC/Add.11 
 Page 153 
 
 
  To support special stock-breeding projects a nd preparation of research works and reports. 
 
4. Background and authority for the subsidy 
 
Decree 25/2004 (III.3.) FVM of the Minister of Ag riculture and Regional Development, 43-53. § 
 
5.   Form of the subsidy 
 
Grant 
 
6.   To whom and how the subsidy is provided 
 
Stock breeders, animal breeder and inspection organisations 
 
7.   Subsidy per unit or the total amount 
 
 Payments under this programme amounted to  HUF 1,024 million during the period covered 
by the notification. 
 
8.  Duration of the subsidy 
 
From 1 January to 31 December 2004 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A.  
3.2 Assistance to fishery activities 
 
1.  Title of the subsidy programme 
 
 Assistance to fishery activities  
2.   Period covered by the notification 
  
2004  
3.   Policy objective and/or purpose of the subsidy  
 To facilitate the protection and preservation and re placement of fish stocks in natural waters, 
to enhance the values of the fish stocks, to pr event the perishing of fish and eliminate the 
consequences thereof, and to pr omote the execution of tasks conn ected with water utilisation for 
fishing and angling purposes, to support the participat ion in international fishing organisations and to 
support the cost of management of fishing. 
 
4. Background and authority for the subsidy 
 
 Decree 25/2004 (III.3.) FVM of the Minister of Agriculture and Regional Development, 54-
60. §. 
 
5. Form of the subsidy  
Grant G/SCM/N/123/EEC/Add.11 
Page 154  
 
  
6.   To whom and how the subsidy is provided 
 
Stock breeders, research and education organi sations operating in the field of fishing. 
 
7.   Subsidy per unit or the total amount 
 
50 per cent of the costs 
75 per cent of the costs for research and edu cation activities in the field of fishery. 
 
 Payments under this programme amounted HUF  206 million during the period covered by the 
notification. 
 
8. Duration of the subsidy 
 
From 1 January to 31 December 2004 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
  
N.A. 
 3.3 Assistance to agriculture and forestry  3.3.1 Assistance to the preservation or develo pment of biological bases and the modernisation 
of related system of qualification 
3.3.1.1  Assistance to genetic development 
 
1.  Title of the subsidy programme  
 Assistance to genetic development 
 
2.  Period covered by the notification 
 
 2004 
 
3.   Policy objective and/or purpose of the subsidy 
 
 To assist the preservation or development of bi ological bases, the estab lishment of plantations 
for gene- preservation, the modernisation of relate d systems of qualification, the establishment and 
maintaining of farms in order to education and promotion purposes and participating of Hungary in 
international scientific organisations. 
 
4. Background and authority for the subsidy 
 
 Decree 25/2004 (III. 3.) FVM of the Minister of Agriculture and Regional Development, 196.-208. § 
 
5. Form of the subsidy 
 Grant 
  G/SCM/N/123/EEC/Add.11 
 Page 155 
 
 
 6.   To whom and how the subsidy is provided 
 
Producers 
7.   Subsidy per unit or the total amount 
   The amount of subsidy is 30-100% of the costs.  
 
 Payments under this programme amounted to HUF 854 million during the period covered by 
the notification. 
 
8. Duration of the subsidy  
 From 1 January to 31 December 2004 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
  N.A. 
 
3.3.1.2 Assistance to the purchase and changes of breeding animals and to the expansion of 
their stocks 
 
1.  Title of the subsidy programme 
 
Assistance to the purchase and changes of breeding animals and to the expansion of their stocks. 
 
2.   Period covered by the notification 
 
 2004 
 
3.   Policy objective and/or purpose of the subsidy 
 
To facilitate the acquisition of high-quality  breeding animals and propagating materials. 
 
4.  Background and authority for the subsidy 
 
 Decree 25/2004 (III. 3.) FVM of the Minister of Agriculture and Regional Development, 
155.-195. § 
 
5.   Form of the subsidy 
 
 Grant 
 
6.   To whom and how the subsidy is provided 
 
 Stock breeders 
 
7.   Subsidy per unit or the total amount 
 
 For bees: 
 HUF 800 per family 
 HUF 800 per queen-bee  G/SCM/N/123/EEC/Add.11 
Page 156  
 
  For male animals: 
For bull for service:       HUF 50,000 per male. 
For ram for service and he-goat for service:   HUF 10,000 to 20,000 
 
For purchasing stallion for breeding: maximum 60 animals, maximum amount: HUF 50 million. 
 
For seemen of cattle:      HUF 200 
 
For artificial insemination of mare:  
HUF 30,000 per female 
 Assistance for the special and identification (E NAR) system of calves, pigs, goats, sheep and 
horses:  HUF 800 and 1,000 per head. 
 
Use of breeding fish     HUF 80 per kilogram Rabbit breeding      HUF 1,000 per animal 
  Payments under this programme amounted to  HUF 1,847 million during the period covered 
by the notification. 
 
8. Duration of the subsidy 
 
 From 1 January to 31 December 2004 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
3.3.2 Assistance to the utilisation of arab le lands in disadvantaged producing areas 
  Phased out 
 
3.3.3  Assistance to investment in, and deve lopment of agricultural production and food 
processing 
  Phased out 
 
3.3.4  Assistance to mending, cultivating and preserving the quality and the quantity of forests  
 
1. Title of the subsidy programme 
 Assistance to mending, cultivating and preser ving the quality and the quantity of forests 
 
2. Period covered by the notification 
 
 2004  
3.   Policy objective and/or purpose of the subsidy 
 
 To facilitate afforestation, treatment and cultivation of young forests; 
 To support the natural and ar tificial renewal of forests,  G/SCM/N/123/EEC/Add.11 
 Page 157 
 
 
  To reduce costs arising from provisional utilisa tion of forests, from afforestation resulted 
from the change in use of land;  To re-establish the wrong structure of forest s caused by the long compensation procedure; 
 To contribute to the costs of plans of forest ma nagement, the cost of forest treatment of public 
interest; 
 To contribute to the cost of operation of fo rest protection measuring and monitoring systems 
arising from international obligations;  To support the participation in international forest organisations; 
 To preserve the ecosystem, the ecological bala nce and physical condition of the forests; 
 To contribute to the cost of propagation of  forest culture, research and education activity. 
 
4.  Background and authority for the subsidy 
 
Decree 25/2004 (III. 3.) FVM of the Minister of Ag riculture and Regional Development, 4.-17. § 
 
5.  Form of the subsidy  
 Grant 
 
6.   To whom and how the subsidy is provided 
 
 Sylviculturists  
 
7.   Subsidy per unit or the total amount 
 
 Payments under this programme amounted to  HUF 4, 910 million during the period covered 
by the notification. 
 
8.   Duration of the subsidy 
 
From 1 January to 31 December 2004 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
3.4 Assistance to game husbandry 
 
1.  Title of the subsidy programme 
 
 Assistance to game husbandry 
 
2.   Period covered by the notification 
 
 2004 3.  Policy objective and/or purpose of the subsidy  
To protect and preserve natural stocks of game species and their habitats; 
 To protect and preserve natural stocks of special areas, 
Research activity connected with preser vation of game species and hunting, 
To propagate hunting, To finance the state management connected w ith preservation of game species and hunting 
To finance the monitoring activity the game species.  G/SCM/N/123/EEC/Add.11 
Page 158  
 
  
4. Background and authority for the subsidy 
 
 Decree 25/2004 (III. 3.) FVM of the Minister of  Agriculture and Regional Development, 61.-
92. § 
 
5. Form of the subsidy 
 
 Grant 
 
6.   To whom and how the subsidy is provided  
Hunters, institutions, companies opera ting in the field of game husbandry 
 
7. Subsidy per unit or the total amount 
 
 The maximum amount of support eligible per a pplicant is HUF 5 million, but not more than 
the 50 per cent of the cost of preserva tion and protection of natural stocks. 
 
 75 per cent of the cost of research connected w ith preservation of game species and hunting.  
 
50 per cent of the cost of propagating of hunting. 
 
100 per cent of the cost of monitoring activity of game species.  
 
 Payments under this programme amounted to HUF 805 million during the period covered by 
the notification. 
 
8. Duration of the subsidy 
 
From 1 January to 31 December 2004 
 
9.  Statistical data permitting an assessment of the trade effects of the subsidy  
 N.A. 
 
3.5 Assistance to the protection of arable land 
 
1.  Title of the subsidy programme 
 
 Assistance to the protection of arable land 
 
2.   Period covered by the notification 
 
 2004 
 
3.   Policy objective and/or purpose of the subsidy 
 
 To provide supplement for cultivable land to lo wer the unjustified decrease of land capable of 
cultivation and to enhance different types of utilisa tion of land capable of cu ltivation as a sector with 
constant changes.    G/SCM/N/123/EEC/Add.11 
 Page 159 
 
 
  To facilitate utilisation of land capable of cu ltivation by re-utilisation grassland, to facilitate 
land concentration, elimination of orchards and vineyards,  
 
Assistance to built connecting roads and canal system against inland waters. 
 
Assistance to purchasing land in order to increase land concentration.  
 
4. Background and authority for the subsidy 
 
 Decree 25/2004 (III.3.) FVM of the Minister of  Agriculture and Regional Development, 34.-
42. § 
 
5.  Form of the subsidy 
 
 Grant 
 
6.   To whom and how the subsidy is provided 
 
Producers, land owners, users 
 
7. Subsidy per unit or the total amount 
 
40 per cent of the costs of helping utilisation of grassland, 
 20 per cent of the cost of purchasing of land, maximum HUF 3 million.   Payments under this programme amounted to  HUF 1, 696 million during the period covered 
by the notification. 
 
8.   Duration of the subsidy 
 
From 1 January to 31 December 2004 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 
3.6  Assistance to the construction and renovation of buildings 
  Phased out 
 
3.6.1 Assistance to the construction of buildings of “new type” co-operations, fishery and 
forestry 
 
 Phased out 
 
3.6.2  Assistance to technology investments in the food industry 
 
1.  Title of the subsidy programme 
 
Assistance to specific food industrial technology investments  
 G/SCM/N/123/EEC/Add.11 
Page 160  
 
 2.   Period covered by the notification 
 
 2004 
 
3.   Policy objective and/or purpose of the subsidy 
 
To assist the development of technology used in the food industrial, especially: 
 
 Quality improvement, production, developing of new products and environmentally-friendly 
packaging, 
 
Fulfilment of good hygiene requirements,  Reducing energy use and environmental damage.  
4. Background and authority for the subsidy  
Decree 3/2003 (I. 24.) FVM of the Minister of  Agriculture and Regional Development, 21. § 
 
5.   Form of the subsidy 
 
 Grant and interest subsidy 
 
6.   To whom and how the subsidy is provided 
 
Processors   
7. Subsidy per unit or the total amount 
 
 Grant: 
 
25 per cent of the cost of investment, maximum HUF 60 million 
 
 Payments under this programme amounted to HUF  9 million during the period covered by the 
notification.  
8.   Duration of the subsidy 
 
 From 1 January to 31 December 2004 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A.  
3.6.3 Assistance to the modernisation and co nstruction of buildings of forestry, game 
husbandry, fishery and agriculture, assist ance to the investments of horticulture 
 
1.  Title of the subsidy programme 
 
 Assistance to the modernisation and constructi on of buildings of forestry, game husbandry, 
fishery and agriculture, assistance to  the investments of horticulture  G/SCM/N/123/EEC/Add.11 
 Page 161 
 
 
  
2. Period covered by the notification 
 
 2004 
 
3.  Policy objective and/or purpose of the subsidy  
To assist the modernisation and constr uction of buildings and infrastructure 
 
4.   Background and authority for the subsidy 
 
Decree 3/2003 (I. 24.) FVM of the Minister of Agriculture and Regional Development, 7.-8. § 
 
5.  Form of the subsidy 
  Grant and interest subsidy 
 
6.   To whom and how the subsidy is provided 
 
 Agricultural producers, sylv iculturists, fish and horticulture producers, co-operatives, 
vegetable- and fruit processors, r esearch and education institutes 
 
7.  Subsidy per unit or the total amount 
 
 Grant:
 
25 per cent of the cost of construction, plus interest subsidy. 
 
 In the case of sales co-operatives and purchasing, processing, sales co-operatives 50 per cent of the cost of construction, plus interest subsidy. 
 
 Plus 5 per cent extra subsidy for moderni sation and for sales co-operatives and purchasing, 
processing, sales co-operatives. 
 
Maximum amount of the grant is HUF 60 million. 
  Payments under the programme 3.6.3 and 3.7.1.    together amounted to HUF 15,901 million 
during the period covered by the notification. 
 
8. Duration of the subsidy 
 
 From 1 January to 31 December 2004 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
3.7.1  Assistance to the establishmen t of vineyards and orchards (2003) 
 
1.  Title of the subsidy programme 
 
Assistance to the establishment of vineyards and orchards 
 G/SCM/N/123/EEC/Add.11 
Page 162  
 
 2.   Period covered by the notification 
 
 2004 
 
3.  Policy objective and/or purpose of the subsidy 
 
To establish new plantations (vineyards and orchards)   
4.   Background and authority for the subsidy 
 
Decree 3/2003 (I.24.) FVM of the Minister of Ag riculture and Regional Development, 18-19. §  
 
5.   Form of the subsidy 
 
 Grant 
Interest subsidy  
6.  To whom and how the subsidy is provided 
 
 Owners and tenants of vineyards or orchards 
 
7.   Subsidy per unit or the total amount 
 
 Grants:
 
50 per cent of the cost, maximum HUF 60 to 70 million for establishment of productive 
plantations  60 per cent of the cost, maximum HUF 60 million for establishment of stock plantation 40 per cent of the cost, maximum HUF 3 million for plantation of decoration plants 
 
 Interest subsidy:
 
For loans above the grant maximum HUF 6 million. 
 
 Payments under the programme 3.6.3 and 3.7. 1. together amounted to HUF 15,901 million 
during the period covered by the notification. 
 
8.  Duration of the subsidy 
 
 From 1 January to 31 December 2004 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
3.7.2 Assistance to the establishment of orchards and other plantations (ornamental 
plants)(2004) 
 
1. Title of the subsidy programme 
Assistance to the establishment of orchards and other plantations  G/SCM/N/123/EEC/Add.11 
 Page 163 
 
 
 2.  Period covered by the notification 
 
 2004 
 
3.   Policy objective and/or purpose of the subsidy 
 
To establish new plantations  
 
4.  Background and authority for the subsidy 
 
 Decree 25/2004 (III.3.) FVM of the Minister of Agriculture and Regional Development, 93-
101. §   
5.   Form of the subsidy 
 
 Grant 
Interest subsidy  
6.  To whom and how the subsidy is provided 
 
 Owners and tenants of orchards and other plantations  
7.  Subsidy per unit or the total amount 
 
 Grants:
 
35 per cent of the cost, maximum HUF 3 to 60 million for establishment of productive 
plantations  
40 per cent of the cost, maximum HUF 60 million for establishment of stock plantation 30 per cent of the cost, maximum HUF 3 million for plantation of ornamental plants 
 
 Interest subsidy:
 
For loans maximum HUF 6 to 150 million, for maximum ten years: 
40 per cent of interest for loan s granted in foreign currency 
50 per cent of interest for loans granted in HUF. 
 
 Payments under this programme amounted to HUF 173 million during the period covered by 
the notification. 
 
8.   Duration of the subsidy 
 
 From 1 January to 31 December 2004 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
3.8 Regional assistance programmes 
 
3.8.1 Assistance to the development of disadvantaged regions 
 
 Phased out 
 G/SCM/N/123/EEC/Add.11 
Page 164  
 
 3.8.2 Assistance to the inhabitants of settlements with less than 3 000 inhabitants living in 
disadvantaged regions 
 
 Phased out 
 3.8.3 Additional assistance to cert ain counties in disadvantaged areas 
 
1.  Title of the subsidy programme 
 
Additional assistance to certain counties in disadvantaged areas  
2. Period covered by the notification 
 
 2004 
 
3.   Policy objective and/or purpose of the subsidy  
 To compensate for regional disadvantages.  
 
4.  Background and authority for the subsidy 
 
 Decree 44/2001 (VI.18.) as amended by 58/2001 (IX. 21) FVM of the Minister of Agriculture 
and Regional Development  
5. Form of the subsidy 
 
 Grant 
 
6.   To whom and how the subsidy is provided 
 
 Producers located in Nógrád, Szabolcs- Szat már- Bereg, Borsod-Abaúj-Zemplén, Somogy 
and Békés counties 
 
7.   Subsidy per unit or the total amount 
 
Supplementary grant
 provided under the  
 "3.7 Assistance to the establishment of vineya rds and orchards"-programme, (plus 20 per cent 
or 25 to 40 per cent of the  cost of the investment ) 
 "3.6.3 Assistance to food industrial technology investments” programme, (plus 10 per cent or 40 per cent of the cost of investment)  "4.1.3-4.1.4. Assistance to the purchase and leasing of agricultural machinery" programme 
(plus 20 per cent of the price of new machinery or leasing fee )  “3.6.2 Assistance to the modernisation and construction of buildings of forestry ,game 
husbandry, fishery and horticulture” programme, (plus 10 per cent or 40 per cent of the cost of 
investment)  "4.4. Assistance to soil melioration and to irrigation investment" programme, (plus 20 per cent or 40 per cent of the cost of investment)  “4.5.Assistance for planting and restructur ing forests and afforestation” programme. 
 
 The amount of the supplementary grant can not exceed HUF 20 million, the amount of grant is maximum HUF 40 million.   G/SCM/N/123/EEC/Add.11 
 Page 165 
 
 
  Payments under this programme amounted to  HUF 1, 468 million during the period covered 
by the notification.  
8.   Duration of the subsidy 
 
From 1 January to 31 December 2004 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A.  
3.8.4 Assistance to the development of agro-tourism 
 
 Phased out  3.9  Assistance to foster co-operativ integration  3.9.1 Assistance to encourage the establishment of co-operatives in the field of production, 
purchase and marketing 
  
Phased out 
 
3.9.2  Assistance to the functioning of co-operatives 
 
1. Title of the subsidy programme 
 
 Assistance to purchase, sales and service co-operations with minimum 300 million yearly 
return  Assistance to foster producing and sales co-ope rations in the field of fruit and vegetable 
producing (POs) 
Assistance to foster producing organisations 
 
2.   Period covered by the notification  
 2004 
 
3.  Policy objective and/or purpose of the subsidy 
 
To encourage co-operative integration in the field of purchase, sales and service. 
 
4. Background and authority for the subsidy 
 
 Decree 25/2004 (III.3.) FVM of the Minister of  Agriculture and Regional Development, 270-
283.§ 
 
5.  Form of the subsidy 
 
 Grant, interest subsidy 
 G/SCM/N/123/EEC/Add.11 
Page 166  
 
 6.   To whom and how the subsidy is provided 
 
 Agricultural purchase, sales and service co-opera tives, organisations with minimum HUF 300 
million yearly return  Producing and sales co-operatives in the field of fruit and vegetable producing 
 Agricultural co-operatives 
 
7. Subsidy per unit or the total amount 
 
For purchase, sales and service co-operatives: 
 2 per cent of the return from sales, if the return from sales does not exceed HUF 300 million 
 3 per cent of the return from sales if the year ly return from sales is between HUF 300 and 500 
million, 
 5 per cent of the return from sales if the yearly return exceeds HUF 500 million, but 
maximum HUF 50 million. 
 
 The maximum amount of support is 200 per cent of the subscribed capital.   Organisations getting subsidy in the year 2003 are entitled to get only half of the above 
mentioned subsidy.   
 For milk co-operations: 
 Maximum HUF 600,000 for the start up cost.   HUF 10,000 per cow, maximum HUF 10 million.   HUF 100 000 per member, maximum HUF 5 m illion for machinery service to agriculture. 
 
For vegetable and fruit producing and sales co-operatives (POs) : 
For preliminary accredited co-operatives: Until HUF 150 million yearly returns: 20 per cent of the returns,  
HUF 150 to 300 million yearly returns: HUF 30 milli on plus 3 per cent of the returns above HUF 
150 million, 
HUF 300 to 400 million yearly returns: HUF 34,5 million plus 6 per cent of the returns above 
HUF 300 million, 
Above HUF 400 million yearly returns: HUF 40,5 m illion plus 12 per cent of the returns above 
HUF 400 million. 
 
For accredited co-operatives: 
12 per cent of the returns. 
 
For producing co-operatives: 
For preliminary accredited producing organisations: 
5 per cent of the yearly returns, but maximum HUF 20 million 
5 per cent of the yearly returns, but maximum HUF 25 million in case of organisations in the 
field of grape and wine production 
10 per cent of the yearly returns, but maximum HUF 25 million in the case of organisations in 
the field of rabbit, honey, medical herb, sheep, goat production 
 
 Payments under this programme amounted to  HUF 4,917 million during the period covered 
by the notification.   G/SCM/N/123/EEC/Add.11 
 Page 167 
 
 
 8. Duration of the subsidy 
 
From 1 January to 31 December 2004 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
3.10 Assistance to the purchase of individu al shares of the members of co-operatives 
 
Phased out 
 
3.11  Assistance to the realisation of certain goals of the agricultural policy  
 
3.11.1 Assistance to the realisation of certain goals of the agricultural policy  
 
Phased out  
 
3.11. 2 Assistance to agricultural information network 
 
Phased out  
 
3.11.3 Assistance to foreign training programmes 
 
1.  Title of the subsidy programme 
 Assistance to the foreign training programmes 
 
2.   Period covered by the notification 
 
2004 
 
3.   Policy objective and/or purpose of the subsidy 
  
To assist the development of foreign training programs 
 
4.   Background and authority for the subsidy 
 
 Decree 25/2004 (III.3.) FVM of the Minister of  Agriculture and Regional Development, 238-
244. § 
5.   Form of the subsidy 
Grant 
6.   To whom and how the subsidy is provided 
 Young agricultural experts and students 
 
7.   Subsidy per unit or the total amount 
For foreign training programmes: 
 
30-50 per cent of the cost of training programmes for programmes G/SCM/N/123/EEC/Add.11 
Page 168  
 
 100 per cent of the cost of travel, visa. 
50 per cent of the cost accommodation for foreign experts participating in  Hungarian training 
programmes. 
 
 Payments under this programme amounted to HUF 478 million during the period covered by 
the notification. 
 
8. Duration of the subsidy 
From 1 January to 31 December 2004 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 N.A. 
 
3.11.4 Assistance to agricultural research and development of non-profit organisations 
 
1.  Title of the subsidy programme 
 
Assistance to agricultural research and development of non-profit organisations. 
 
2.   Period covered by the notification 
 
2004  
3. Policy objective and/or purpose of the subsidy 
 
Assistance to non-profit organisations relate d to agricultural research and development 
 
4. Background and authority for the subsidy  
 Decree 25/2004 (III.3.) FVM of the Minister of  Agriculture and Regional Development, 245-
254. §  
5.   Form of the subsidy 
 
Grant 
 
6. To whom and how the subsidy is provided 
 
Non-profit organisations with r esearch and development activities 
 
7.  Subsidy per unit or the total amount 
 
80 per cent of the costs. 
 
 Payments under this programme amounted to HUF 360 million during the period covered by 
the notification.   
8.   Duration of the subsidy 
 
From 1 January to 31 December 2004 
  G/SCM/N/123/EEC/Add.11 
 Page 169 
 
 
 9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 
3.11.5 Assistance to purchasing state-of-the-art technical equipment for institutions engaged in 
agricultural research and development 
 
Phased out 
 
3.12 Assistance to common marketing in agriculture 
 
1.  Title of the subsidy programme 
 
Assistance to common marketing in agriculture 
 
2. Period covered by the notification  
2004 
 
3. Policy objective and/or purpose of the subsidy 
 
To co-finance the participation in international fairs. 
Promotion of Hungarian agricultural products. Assistance to market research  with advanced methods. 
 
4.  Background and authority for the subsidy 
 
 Decree 3/2003. (I.24.) §187, §188 , §188, §190 FVM of the Minister for Agriculture and 
Regional Development  Decree 25/2004. (III.3.) §115-117 FVM of the Minister for Agriculture and Regional 
Development 
 
7. Subsidy per unit or the total amount  
50 per cent of the costs 
  Payments under this programme amounted to  HUF 1,848 million during the period covered 
by the notification. 
 
8. Duration of the subsidy 
 
From 24 January 2003 
 
Duration has not been specified. 
 
9.  Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
N.A. 
 
3.13 Agricultural research programmes 
 
Phased out 
 G/SCM/N/123/EEC/Add.11 
Page 170  
 
 3.14 Assistance to the joint establishment of wholesale markets by producers and to 
investment of joint sales organisations and producers 
 
Phased out 
 4.1 Finance subsidies  4.1.1 Assistance given to further agricultural activities  
 Phased out  
4.1.2 Government guarantee 
 
 Phased out 
 4.1.3 Assistance to the purchase of agricultural machinery 
 
1.  Title of the subsidy programme 
 
 Assistance to the purchase of agricultural machinery 
 
2.   Period covered by the notification  
 2004 
 
3.   Policy objective and/or purpose of the subsidy 
 
To assist the producers in financing thei r purchase of new agricultural machinery. 
 
4. Background and authority for the subsidy 
 
Decree 3/2003 ( I.24.)  FVM of the Minister of Agriculture and Regional Development, 9.-13. § 
 
5. Form of the subsidy 
 
 Grant and interest subsidy  
 
6.   To whom and how the subsidy is provided  
 Producers and entrepreneurs performing hired labour service with agricultural machinery, 
education organisations  
7.  Subsidy per unit or the total amount 
 
25 per cent of the list price of agricultural machinery, 
maximum amount of grant: HUF 60 million  
 In the case of accredited producing and sales co-opera tions 50 per cent of the cost and interest 
subsidy 
 
 In the case of producers in the field of m ilk production 50 per cent of the cost, maximum 
HUF 5 million plus 50 per cent of the interest on loan up to HUF 5 million.  G/SCM/N/123/EEC/Add.11 
 Page 171 
 
 
  
 In the case of co-operatives in the field of milk production 50 per cent of the cost, maximum HUF 5 million plus 50 per cent of the interest on loan up to HUF 10 million.   Payments under this programme amounted to  HUF 6, 778 million during the period covered 
by the notification. 
 
8.   Duration of the subsidy 
 
From 1 January to 31 December 2004   
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 4.1.4 Assistance to the leasing of agricultural machinery  
Phased out 
 
4.1.5 Assistance to members of co-operatives in acquiring loans 
 
 Phased out 
 
4.1.6 Interest subsidy for bank loans for maximum one year, and for more than one year, 
government guarantee 
 
1. Title of the subsidy programme 
Interest subsidy for loans of current assets and state credit guarantee programs 
 
2.  Period covered by the notification 
 
 2004  
3.   Policy objective and/or purpose of the subsidy 
 
To assist producers in financing their costs of input materials. 
 
4.   Background and authority for the subsidy  
 Decree 25/2004 (III.3.) FVM of the Minister for Agriculture and Regional Development, 
255.-269. § 
 
5. Form of the subsidy 
 
 Interest subsidy 
Government guarantee  
6.   To whom and how the subsidy is provided 
 
 Producers, integrators, processors 
 G/SCM/N/123/EEC/Add.11 
Page 172  
 
 7.   Subsidy per unit or the total amount 
 
Interest rate subsidy of the bank loans for more than one year: 
The interest rate subsidy is 40 per cent. Th e maximum amount of the loan is HUF 350 million 
in the case of individual producers, HUF 750 million in the case of integrators. 
 
 Government guarantee: 
 80 per cent for loans up to HUF 10 million. 
 70 per cent for loans over HUF 10 million  
 Grant for the guarantee fee: 50 per cent of the guarantee fee. 
 
The guarantee fee is 1 per cent per year up to HUF 10 million. 
 Over HUF 10 million:  Up to 50 per cent of guarantee rate: 1 per cent of the fee 
 51 to 60 per cent of guarantee rate: 1.2 per cent of th fee 
 61 to 80 per cent of guarantee rate: 1.5 per cent of the fee   
 Interest rate subsidy connected to procurement, storing: 
 Interest rate subsidy: 50 per cent, the maxi mum amount of the loan is HUF 500 million. 
 
 Payments under this programme amounted to  HUF 19,093 million during the period covered 
by the notification.  
8.   Duration of the subsidy 
 
From 1 January to 31 December 2004 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 4.1.7 Interest subsidy for purchasing grain seed  with quality assurance necessary for the 1999 
sowing 
 
Phased out  
4.1.8 Government guarantee for HUF 16 billion lo an given to small companies in the canning 
sector 
 
Phased out 
 
4.1.9 Assistance to the renewal of agricultural machinery 
 
 Phased out  
4.1.10 Loan programme for agricultural development 
 
1.  Title of the subsidy programme  
Loan programme for agricultural development 
  G/SCM/N/123/EEC/Add.11 
 Page 173 
 
 
 2. Period covered by the notification 
 
 2004 
 
3.   Policy objective and/or purpose of the subsidy 
 
To finance loans of agricultural production 
 
4. Background and authority for the subsidy$ 
 
 Decree 30/2000 (III. 10.) Korm. of the Governme nt as amended by 85/2001 (V.30.) Korm. of 
Government and 82/2002 (III.10. ) Korm. of the Government 
 
5.  Form of the subsidy 
 
Government guarantee 
Interest subsidy Grant  
6. To whom and how the subsidy is provided 
 
In development loan programme: Agricultural producers 
 
In farmer credit programme: 
Producers cultivating maximum 300 hectares, with income up to HUF 50 million, employing maximum 10 persons, 
Fruit and vegetable producer, wholesale, pro cessing and marketing co-operatives which did 
not receive state support 
 
In programme for improv ing quality production: 
Seed producers and traders Producers of fertiliser 
Producers cultivating 1 to 300 hectares Wholesale, processing and marketing co-operatives 
 
7.   Subsidy per unit or the total amount 
 
In development loan programme: 
50 per cent of the interest on loan, granted for three years, government guarantee for 80 per cent 
of the loan 
 
In farmer credit programme:: 
Government guarantee for 80 per cent on loan, granted for maximum ten years 
The interest rate subsidy is 100 per cent on the loan.  
In programme for improv ing quality production: 
Government guarantee for 80 per cent on loan, granted for maximum one year The interest rate subsidy is 100 per cent on the loan. 
 
 The interest rate subsidy is 100 per cent on loan for seed and fertiliser (PK) purchase, 
maximum HUF 10,000 per hectare for fertili ser, HUF 10,000 per hectare for seed.  
 G/SCM/N/123/EEC/Add.11 
Page 174  
 
  Payments under this programme amounted to  HUF 6, 192 million during the period covered 
by the notification.  
8.   Duration of the subsidy 
 
From 1 January to 31 December 2004 
 
9.   Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 
4.1.11  Loan programmes authorised with government guarantee in 2001 and assistance to 
investment in agricultural logistics in 2001-2002 
 
1. Title of the subsidy programme  
  Loan programmes authorised with government guarantee in 2001 and assistance to 
investment  in agricultural logistics in 2001-2002 
 
2.  Period covered by the notification 
 2004 
 
3.  Policy objective and/or purpose of the subsidy 
 
 Assistance to development of agricultural technologies; purchasing new equipment, state 
guarantee and credit support for lo ng-term liabilities when invested in purchasing of food-processing 
plant under reorganisation schemes; investments of food processing and to agricultural logistic 
programmes  
 
4. Background and authority for the subsidy 
 
Decree 57/2001 (IX. 21.)  FVM of the Minister  for Agriculture and Regional Development 
 
5.   Form of the subsidy 
 
For agricultural development programmes: 
Government guarantee Interest subsidy 
 
For agricultural logistic programmes: 
Grant, 
Interest subsidy Government guarantee 
 
6. To whom and how the subsidy is provided 
 
 Producers cultivating maximum 300 hectares, with income up to HUF 50 million, employing 
maximum 10 persons, 
 Fruit and vegetable producer, wholesale,  processing and marketing co-operations, 
 Food processor companies, with turnover up to HUF 4 billion per year, employing maximum 250 persons,  working in the field of meat, poultry, fish, potato, fruit and vegetable, milk, flour-mill 
products, feeding-stuffs, spices, honey, wine processing.  G/SCM/N/123/EEC/Add.11 
 Page 175 
 
 
  
7. Subsidy per unit or the total amount 
 
For agricultural development programmes: 
Government guarantee for 80 per cent on the loan  
The interest rate subsidy is 60 per cent on the loan. 
 
For agricultural logistic programmes: 
30 per cent of the cost of the investment 
60 per cent of the interest on loan up to HUF 1 b illion, granted for more than five but less than 
ten years, government guarantee for 50 per cent of the loan 
 
 Payments under this programme amounted to HUF 27 million during the period covered by 
the notification.  
8.   Duration of the subsidy  
From 1 January to 31 December 2004 
 
9.  Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
4.1.12 Assistance to the settlement the loans granted for less than one year 
 
 Phased out 
 
4.1.13 Interest rate subsidy for the farm development of individual farms 
 
 Phased out  
 
4.2 Assistance to the production of certain agricultural products 
 
Phased out 
 
4.3 Assistance to the restructuring of the agricultural sector 
 
Phased out 
 
4.4 Assistance to soil melioration and to irrigation investment 
 
1.  Title of the subsidy programme 
 
Assistance to soil melioration and to irrigation investment 
 
2.   Period covered by the notification 
 
2004  
3. Policy objective and/or purpose of the subsidy 
 
 To help maintain and improve fertility of arab le lands and facilitate th e security of production 
by establishment of irrigation equipment. G/SCM/N/123/EEC/Add.11 
Page 176  
 
  
 
4. Background and authority for the subsidy 
 
Decree 3/2003 (I. 24.) FVM of the Minister of Agriculture and Regional Development, 50.-62. § 
 
5.   Form of the subsidy 
 
 Grants  
 Interest subsidy  
 
6.  To whom and how the subsidy is provided 
 
 Producers 
 
7.   Subsidy per unit or the total amount  
40 per cent of the cost of investment, maximum HUF 50 million. 
40 per cent of the interest on loan granted for more than one year requirement: minimum 25 per cent of own capital of the investment cost  
 Payments under this programme amounted to  HUF 1, 175 million during the period covered 
by the notification. 
 
8. Duration of the subsidy 
 
From 1 January to 31 December 2004 
 
9.  Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 4.5  Assistance for planting and restructuring forests and afforestation 
   
1.  Title of the subsidy programme 
 
 Assistance for planting and restructuring forests and afforestation  
2.   Period covered by the notification  
 
 2004 
 
3.   Policy objective and/or purpose of the subsidy 
  To provide assistance to planting and restructuring forests and afforestation. 
 
4.   Background and authority for the subsidy 
 
 Decree 25/2004 (III. 3.) FVM of the Minister of Agriculture and Regional Development, 
102.-107. §   G/SCM/N/123/EEC/Add.11 
 Page 177 
 
 
 5.   Form of the subsidy 
 
 Grant 
 
6.   To whom and how the subsidy is provided 
  Sylviculturists 
 
7.,  Subsidy per unit or the total amount 
 
 Payments under this programme amounted to  HUF 2,511 million during the period covered 
by the notification.  
8.   Duration of the subsidy 
 
 From 1 January to 31 December 2004 
 
9.   Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 4.6  Payments for relief from environmental degradation of forests   
   
1. Title of the subsidy programme 
 
Payments for relief from environmental degradation of forests    
2. Period covered by the notification 
 
 2004 
 
3.   Policy objective and/or purpose of the subsidy 
 
To compensate for income losses due to th e environmental degradation of forests. 
 
4. Background and authority for the subsidy 
 
Decree 25/2004 (III. 3.) FVM of the Minister of Agriculture and Regiona l Development, 33. § 
 
5. Form of the subsidy 
 
 Grant 
 
6.   To whom and how the subsidy is provided  
 Owners and tenants of forests  
 
7.   Subsidy per unit or the total amount 
 
 HUF 800 per gross cubic metre of timber  
    Payments under this programme amounted to HUF 104 million during the period covered by 
the notification. G/SCM/N/123/EEC/Add.11 
Page 178  
 
 8. Duration of the subsidy 
 
From 1 January to 31 December 2004 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
  N.A. 
 
4.7  Refund of the consumption tax on diesel fuel 
 
1. Title of the subsidy programme  
 Consumption tax refund on diesel fuel  
 
2.  Period covered by the notification 
 
 2004 
 
3.  Policy objective and/or purpose of the subsidy 
 
 To reduce the tax burden of producers.   
4.   Background and authority for the subsidy 
 
 Decree 216/1997 (XII. 1) Korm of the Government 
 
5.   Form of the subsidy  
 Tax refund 
 
6.   To whom and how the subsidy is provided 
 
Producers 
 
7. Subsidy per unit or the total amount 
 
Refund of 70 per cent of the consumption tax on diesel fuel.  
 
 Payments under this programme amounted to  HUF 18, 968 million during the period covered 
by the notification.  
 
8. Duration of the subsidy 
 
 Starting date: 1 January 1998 
Duration has not been specified.  
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
  G/SCM/N/123/EEC/Add.11 
 Page 179 
 
 
 4.8 Assistance to the partic ipation in insurance schemes  
 
1. Title of the subsidy programme 
 
 Assistance to the particip ation in insurance schemes 
 
2.   Period covered by the notification 
 
 2004 
 
3.   Policy objective and/or purpose of the subsidy  
To promote the enrolment of pr oducers in insurance schemes. 
 
4. Background and authority for the subsidy 
 
 Decree 3/2003 (I. 24.) FVM of the Minister of Agriculture and Regional Development, 357.-
361. §  
5.   Form of the subsidy 
 
 Grant 
 
6.   To whom and how the subsidy is provided 
 
Producers   
7. Subsidy per unit or the total amount 
 
 30 per cent of the insurance premium. 
  Payments under this programme amounted to  HUF 2,558 million during the period covered 
by the notification. 
 
8.   Duration of the subsidy 
 
 From 1 January to 31 December 2004  
9.  Statistical data permitting an assessment of the trade effects of the  subsidy 
 
 N.A. 
 
4.9  Payments for relief from natural disasters 
4.9.1 Payments for relief from natural di sasters affecting plant cultivation in 1995 
 Phased out 
4.9.2 Payments for relief from fireblight disease 
 Phased out 
4.9.3 Payments for relief from natural di sasters affecting plant cultivation in 1997 
 Phased out G/SCM/N/123/EEC/Add.11 
Page 180  
 
  
4.9.4 Payments for relief from natural di sasters not covered by insurance policies  
 Phased out 
4.9.5 Assistance to provide relief from the damage caused by the extraordinary weather 
conditions in June and July 1999 
Phased out 
4.9.6 Assistance to provide relief from the damage caused by flood and internal water 
occurred in 1999 
 Phased out 
4.9.7 Assistance to the intervention of unharvested sugar beet 
 Phased out 
4.9.8 Assistance to moderate the damage caused by flood and internal water in 2000 
Phased out 
4.9.9 Assistance to land cultivation provided for the producers who incurred damage due to 
the drought in 2000 
 Phased out 
4.9.10 Assistance to provide relief from the da mage caused by flood and internal water in 
Szabolcs-Szatmár-Bereg county and Bereg region in 2001 
Phased out  
 
4.9.11 Assistance to provide relief from the dam age caused by frost to vineyards and orchards 
that occurred  in winter 2001 and in spring 2002  
 
Phased out 
 
4.9.12  Assistance to provide relief from th e damage caused by the storm occurred  in 
9 August 2002 
 
Phased out 
 
4.9.13  Assistance to provide relief from th e damage caused by frost and drought in 2003 
 
1.  Title of the subsidy programme 
 
Assistance to provide relief from the damage  caused by frost and drought in 2003 
 
2. Period covered by the notification 
 
 2004 
 
3.   Policy objective and/or purpose of the subsidy 
 
 To moderate the damage caused by frost and drought 
  G/SCM/N/123/EEC/Add.11 
 Page 181 
 
 
 4.   Background and authority for the subsidy 
 
Decree 84/2003 (VII. 22.) FVM of the Minister of Agriculture and Regional Development 
 
5. Form of the subsidy 
 
 Grant, interest subsidy, government guarantee 
 
6.   To whom and how the subsidy is provided 
 
Producers 
 
7. Subsidy per unit or the total amount 
 
Grant: If the rate of the losses is over 30 per cent: 30 per cent of the damage. 
 
Interest subsidy and government guarantee: If the rate of the losses is over 20 per cent 
  Payments under this programme amounted to HUF 207 million during the period covered by 
the notification. 
 
8.   Duration of the subsidy 
 
 From 1 January to 31 December 2004  
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
4.10 Assistance to the organisation of wine-growing communities 
  Phased out 
 
4.11 Assistance to the utilisation of advisory and extension services 
 
1.  Title of the subsidy programme  
Assistance to the utilisation of advisory and extension services, training programs 
 
2. Period covered by the notification 
 
 2004 
 
3.   Policy objective and/or purpose of the subsidy 
 
To promote the use of advisory and extension services, training programmes 
 
4. Background and authority for the subsidy 
 
 Decree 25/2004 (III. 3.) FVM of the Minister of Agriculture and Regional Development, 
230.-237. § G/SCM/N/123/EEC/Add.11 
Page 182  
 
 5. Form of the subsidy 
 
 Grant 
 
6.   To whom and how the subsidy is provided 
 
Producers, sylviculturists 
 
7. Subsidy per unit or the total amount 
 
 75 per cent of advisory fee, maximum HUF 100,000 for producers with yearly returns 
between HUF 3 and 10 million.   50 per cent of advisory fee, maximum HUF 150,000 for producers with yearly returns between HUF 10 and 135 million. 
 
 35 per cent of advisory fee, maximum HUF 200,000 for producers with yearly returns between HUF 35 and 50 million.  
Plus 10 per cent for young farmers (age under 40) with return over HUF 10 million. 
 
 Maximum 50 per cent of the costs of training, expert meetings, publishing, maximum HUF 3 
million, 
 
 The costs of the education of advisory expe rts and development of advisory information 
technology.  
 
 Payments under this programme amounted to HUF 941 million during the period covered by 
the notification.  
8.   Duration of the subsidy 
 
 From 1 January to 31 December 2004 
 
9.  Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A.  
4.12 Assistance to the “Borsod-Abaúj-Zemplén” region 
 
 Phased out 
 
4.13 Assistance to the maintenance of recreational and park woods 
 
1. Title of the subsidy programme  
Assistance to the main tenance of recreational and park woods 
 
2.  Period covered by the notification  
 2004 
  G/SCM/N/123/EEC/Add.11 
 Page 183 
 
 
 3.   Policy objective and/or purpose of the subsidy 
 
 To co-finance the costs of maintaining forest facilities such as botanical gardens, parking lots, 
green corridors and hiking paths.  
4.   Background and authority for the subsidy  
 Decree 25/2004 (III. 3.) FVM of the Minister of Agriculture and Regional Development, 
108.-112. §  
5.   Form of the subsidy  
 Grant 
 
6.   To whom and how the subsidy is provided 
 
Operator of forest facilities 
 
7. Subsidy per unit or the total amount 
 
No payments occurred under this programme during the period covered by the notification. 
 
8. Duration of the subsidy 
 
From 1 January to 31 December 2004 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 
4.14 Assistance to tobacco  
  Phased out 
 
4.15 Assistance to potatoes  
Phased out 
 4.16 Assistance to stabilise the egg market 
 
1. Title of the subsidy programme 
 
Assistance to stabilise the egg market 
 
2.  Period covered by the notification  
 2004 
 
3.   Policy objective and/or purpose of the subsidy 
 
To re-establish the equilibrium be tween domestic supply and demand  G/SCM/N/123/EEC/Add.11 
Page 184  
 
  
4.   Background and authority for the subsidy 
  
3/2003 (I.24.)  §244 FVM of the Minister for Agriculture and Regional Development 
 
5.   Form of the subsidy 
 
Grant 
 
6. To whom and how the subsidy is provided 
 
Producers   
7. Subsidy per unit or the total amount 
 
HUF 20 per kg hen (live weight) 
From 9 October 2002 extra HUF 4 per egg. 
 
 Payments under this programme amounted to  HUF 9  million during the period covered by 
the notification.  
8. Duration of the subsidy  
 From 24 January to 30 December 2003 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
   N.A. 
 
4.17 Intervention support for quality production of game birds 
 
 Phased out  
4.18  Assistance to beekeepers 
 
 The description of the measure can be found under 4.42. 
 4.19  Assistance to the establishment of environmentally friendly crop structure  
 Phased out 
 
4.20 Assistance to the transition to organic production (and establishment of                     
agro-environmental regions) 
 
Phased out  
 
4.21 Assistance to stabilisation of the cereal market 
  
Phased out 
      G/SCM/N/123/EEC/Add.11 
 Page 185 
 
 
 4.22 Intervention assistance to producers of wheat for feeding purposes for selling their crop 
 
 Phased out 
 
4.23 Assistance to the maintenance and de velopment of the statistical data-bases of 
producers’ councils 
  
1. Title of the subsidy programme 
 
 Assistance to the maintenance and developmen t of the statistical data-bases of producers’ 
councils 
 
2. Period covered by the notification 
  
 2004 
 
3.   Policy objective and/or purpose of the subsidy 
 
 Statistical monitoring of the agricultural sector.  
 
4.   Background and authority for the subsidy 
 
 Decree 3/2003.(I.24.) 193.§ FVM of the Minist er of Agriculture and Regional Development 
 
5.  Form of the subsidy 
 
 Grant 
 
6.   To whom and how the subsidy is provided 
 
 Producers’ councils 
 
7.   Subsidy per unit or the total amount  
 Payments under this programme amounted to HUF 27 million during the period covered by 
the notification.  
8.  Duration of the subsidy  
 From 24 January to 30 December 2003 
 
9.   Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 
4.24 Assistance to the improvement of competitiveness 
  
Phased out. 
4.25  Assistance to the reduction of costs relating to the rental of agricultural land 
 Phased out G/SCM/N/123/EEC/Add.11 
Page 186  
 
 4.26. Assistance to socially disadvantaged agricultural communities 
 
1.  Title of the subsidy programme 
 
Assistance to socially disadva ntaged agricultural communities 
 
2.  Period covered by the notification 
 
 2004 
 
3.   Policy objective and/or purpose of the subsidy  
 To provide assistance to socially disadvant aged agricultural commun ities for local family 
farming.    
 
4. Background and authority for the subsidy 
 
 Decree 3/2003 (I. 24.) FVM of the Minister of Agriculture and Regional Development, 374.-
376. § 
 
5.  Form of the subsidy 
 
Grant 
 
6.   To whom and how the subsidy is provided 
 
 Local governments   
 
7.   Subsidy per unit or the total amount  
 50 per cent of the cost of purchasing seed, breeding animals, propagating material and agricultural services. 
  Payments under this programme amounted to HUF  88 million during the period covered by the 
notification. 
 
8. Duration of the subsidy  
 From 1 January to 31 December 2004 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
4.27 Assistance to the construction and modernisation of rural roads 
 
 Phased out   G/SCM/N/123/EEC/Add.11 
 Page 187 
 
 
 4.28 Assistance to the service of field wardens 
 
1. Title of the subsidy programme 
Assistance to the establishment of field warden services 
 
2.   Period covered by the notification 
 2004 
 
3.   Policy objective and/or purpose of the subsidy 
 
To ensure the establishment and efficient operation of field wardens.  
 
4.   Background and authority for the subsidy 
 
 Decree 26/2004 (III. 3.) FVM and PM of th e Minister of Agriculture and Regional 
Development and Minister of Finance 
 
5.  Form of the subsidy 
Grant 
 
6.   To whom and how the subsidy is provided 
 
 Local governments 
 
7.   Subsidy per unit or the total amount 
 
Grant for establishment: 50 per cent of the cost of establishment, maximum HUF 300,000. 
 
 50 per cent of the cost of operation of field warden service, maximum HUF 50,000 per capita per quarter year.   Payments under this programme amounted to HUF  502 million during the period covered by the 
notification. 
 
8. Duration of the subsidy 
 
 From 11 March to 31 December 2004 
 9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
4.29 Assistance to young farmers (and empl oyment of young agricultural experts) 
 
1. Title of the subsidy programme 
 
Assistance to young farmers and employing of young agricultural experts 
 
2.   Period covered by the notification  
 2004 G/SCM/N/123/EEC/Add.11 
Page 188  
 
  
3.   Policy objective and/or purpose of the subsidy 
 
 To encourage the agricultural activities of young farmers and employment of young 
agricultural experts 
 
4.  Background and authority for the subsidy 
 
Decree 3/2003 (I. 24.) FVM of the Minister of Agriculture and Regional Development, 22-37. § 
 
5. Form of the subsidy  
Grant  
Interest subsidy  
6.   To whom and how the subsidy is provided  
Producers under the age of 40 cultivating maximum 300 hectares, 
 
 Agricultural firms with returns over HUF 30 million per year, purchasing and sales co-operatives with more than 20 members,  producin g and sales co-operatives, non-profit organisations 
providing machinery service to agriculture with more than 50 members, employing young agricultural 
experts 
 
7. Subsidy per unit or the total amount 
 
Assistance to young farmers:
 
Grant : 30 per cent of the purchase price or investme nt cost of buying land, on-farm facilities, 
animals, feed stuffs, fertilisers. 
The maximum amount of grant per farmer is HUF 30 million.   Interest subsidy: 80 per cent of the basic in terest rate of the National Bank of Hungary on 
loans up to HUF 45 million, maximum 45 per cent of the cost of the investment granted for 
the above-mentioned purposes for maximum ten years 
 
For employing young agricultural experts: 
 Grant, 60 per cent of the wage for 36 months 
One organisation can apply only for employment of one expert 
  Payments under this programme amounted to HUF 483 million during the period covered by 
the notification. 
 
8. Duration of the subsidy  
 From 1 January to 31 December 2004 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
  G/SCM/N/123/EEC/Add.11 
 Page 189 
 
 
 4.30 Assistance to agricultural employment 
 Phased out 
 
4.31  Assistance to the school milk programme 
 Phased out 
 
4.32 Assistance to the purchasing of the required amount of maize for feeding purposes 
Phased out 
  
4.33.1 Additional assistance to the storage of maize harvested in 1998 for feeding purposes in 
public warehouses 
 
Phased out 
 
4.33.2 Assistance to the storage of maize for feeding purposes harvested in 1999 in public 
warehouses  
 
Phased out   
   
4.33.3 Assistance to the storage of maize for feeding purposes harvested in 2001 in public 
warehouses 
 
Phased out 
 
4.33.4 Assistance to the storage of maize for feeding purposes harvested in 2002 in public 
warehouses 
 
1.  Title of the subsidy programme 
 
 Additional assistance to the storage of maize for feeding purposes harvested in 2002 in public 
warehouses  
 
2. Period covered by the notification   
 2004 
 
3.   Policy objective and/or purpose of the subsidy 
 
To provide assistance to the storage of ma ize harvested in 2002 in public warehouses. 
 
4.   Background and authority for the subsidy 
 
Decree 95/2002 (X. 11.) FVM  of the Minister  of Agriculture and Regional Development 
 
5.   Form of the subsidy 
 
 Interest subsidy 
 Grant 
 G/SCM/N/123/EEC/Add.11 
Page 190  
 
 6.   To whom and how the subsidy is provided 
 
 Producers 
 
7,   Subsidy per unit or the total amount 
 
Interest subsidy: 100 per cent of the basic in terest rate of the National Bank of Hungary  
Storage support: HUF 15 per ton per week  
 Payments under this programme amounted to HUF 113 million during the period covered by 
the notification. 
 
8. Duration of the subsidy 
 
 From 7 October 2002 to 17 December 2003 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
4.34 Wheat exchange transaction 
 
Phased out 
 
4.35  Assistance to the purchase of wheat seed for the 1998 autumn sowing 
 
Phased out  
 
4.36 Interest subsidy to loans received for the pu rchase of apple in bulk harvested in 1997 for 
processing purposes 
 
Phased out 
 
4.37  Interest subsidy on loans received for the purchase of apple in bulk harvested in 1998 
 
Phased out 
 
4.38 Intervention assistance to th e selling of wheat for feeding purposes 
 
Phased out 
 
4.39 Market intervention related to the duck production  
 
4.40 Quality-linked support to the production of sugar beet  
Phased out 
4.41 Emergency income support to certain producers of cereals  
 
 Phased out 
  G/SCM/N/123/EEC/Add.11 
 Page 191 
 
 
 4.42  Assistance to reduce certain sanitary- and phytosanitary costs  
 
1. Title of the subsidy programme 
 
Assistance to reduce the sanita ry- and phytosanitary costs.  
 
2.  Period covered by the notification 
  
 2004 
 
3. Policy objective and/or purpose of the subsidy  
 To reduce the sanitary and phytosanitary costs 
 
4.   Background and authority for the subsidy 
 
Decree 102/2001 (XII. 16.) §196, §199, §200, §203, §209, §210-213, §215, §217, §219, §220, 
§222, §232, §414, FVM of the Minister for  Agriculture and Regional Development  Decree 3/2003.(I.24) §203, §204, §205, §208, §209,§214-219, §221, §222, §223, §225, §227, §229, §230, §232, §233, §236, FVM of the Minister for Agriculture and Regional 
Development 
 Decree 45/2004 (IV.13.)FVM  the Minister for Agriculture and Regional Development  
5.   Form of the subsidy 
 
Grant 
 
6. To whom and how the subsidy is provided 
 
Producers 
 
7. Subsidy per unit or the total amount 
 
Sanitary cost compensation: 
 
medical costs of bee colonies  Maximum HUF 500 per colony 
vaccination for pig for slaughter   HUF 1300-1500 per animal pig for slaughter    HUF 100-227 per animal  cattle for slaughter   HUF 350-500 per animal  poultry for slaughter    HUF 1.6  per kg rabbit for slaughter      HUF 12 per animal (veterinary control)  
game      HUF 30-70 per kg  
     HUF 4.90-1150 per animal duck     HUF 20 per animal goose     HUF 33 per animal 
pig     HUF 100  per animal 
cattle     HUF 26 per kg 
poultry     HUF 26 per kg rabbit     HUF 26 per kg  G/SCM/N/123/EEC/Add.11 
Page 192  
 
 medical control for sheep and 
goat for slaughter   HUF 40 per animal   
Phytosanitary cost compensation 
 
seed production    50 per cent of the phytosanitary costs 
 arable and  horticultural areas  
and nurseries    50 per cent of the phytosanitary costs propagating material of  forestry tree species   50 per cent of the phytosanitary costs     
laying hen    HUF 25 per animal  
waste management HUF 20-26 per kg (p ig ,cattle, pourtry, rabbit, game, 
sheep, goat,)  
 
 Payments under this programme amounted to  HUF 6, 176 million during the period covered 
by the notification. 
 
8. Duration of the subsidy 
 
 From 16 December 2001  
 Duration has not been specified 
  
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 4.43 Assistance to the production of sowing seed  
 Phased out 
  
4.44  Assistance to the purchase of the required amount of cereals for feeding and of wheat 
for milling purposes  
 Phased out 
 
4.45.1 Assistance to the storage in public warehouse of wheat harvested in 1998  
Phased out   
 4.45.3  Assistance to the storage in public warehouse of wheat harvested in 2001 
Phased out 
4.45.3 Assistance to the storage in public warehouse of wheat harvested in 2002 
1.  Title of the subsidy programme 
 
Assistance to the storage in public warehouse of wheat harvested in 2002 
 
2. Period covered by the notification 
  
 2004 
  G/SCM/N/123/EEC/Add.11 
 Page 193 
 
 
 3.   Policy objective and/or purpose of the subsidy 
 
 To ensure an adequate level of supply. 
 
4.   Background and authority for the subsidy 
 
Decree 56/2002 (VII. 17.) FVM  of the Minister of Agriculture and Regional Development 
 
5.   Form of the subsidy 
 
Grant 
 
Interest subsidy 
 
6.   To whom and how the subsidy is provided 
 
     Producers 
 
7. Subsidy per unit or the total amount 
 
Interest subsidy:  100  per cent on the loan  
Storage support: HUF 15 per ton per week 
 
 Payments under this programme amounted to HUF 48 million during the period covered by 
the notification. 
 
8. Duration of the subsidy 
 
 From 17 June 2002 to 17 December 2003 
 
9.  Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
4.46 Assistance to introduce the HACCP system of quality management  
 
1.  Title of the subsidy programme  
Assistance to introduce the HACCP system of quality management and food safety 
 
2.   Period covered by the notification 
  
2004 
 
4.   Background and authority for the subsidy 
 
Decree 3/2003.(I.24.) FVM Minister of Agriculture and Regional Development 
 
6.   To whom and how the subsidy is provided 
 
Companies dealing with retail or wholesale business G/SCM/N/123/EEC/Add.11 
Page 194  
 
  
7.   Subsidy per unit or the total amount 
 
Maximum 50 per cent of the costs.  
 
 Payments under this programme amounted to HUF 27 million during the period covered by 
the notification. 
  
8. Duration of the subsidy  
 
From 24 January to 30 December 2003 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
N.A. 
 
4.47  Intervention support to maintain the EU approved level of hygiene of pig and cattle 
slaughterhouses  
  
 Phased out  4.48  Assistance to organisations pr oducing and selling fruit and vegetables 
 
 Phased out  
4.49  Assistance to research and development of co-operatives 
 
 Phased out 
 
4.50  Assistance to programmes of agricultural structure and rural development  
 
 Phased out 
 
4.51 Assistance to technical development 
  
Phased out  
 4.52 Assistance to genetic development  
Phased out  
 
4.53 Assistance to plant protection against the damage caused by non-indigenous disease 
 
1.  Title of the subsidy programme  
Assistance to plant protection against non-indigenous disease 
 
2.  Period covered by the notification 
 
 2004 
  G/SCM/N/123/EEC/Add.11 
 Page 195 
 
 
 3.   Policy objective and/or purpose of the subsidy 
 
Assistance to the additional plant protect ion costs caused by non-indigenous disease 
 
4.   Background and authority for the subsidy 
 
 Decree 25/2004 (III. 3.) FVM of the Minister of Agriculture and Regional Development, 
145.-146. § 
 
5.  Form of the subsidy 
 
 Grant 
 
6.   To whom and how the subsidy is provided 
 
Organisations, producers 
 
7.   Subsidy per unit or the total amount 
 
 100 per cent of the costs of chemicals used for plant protection against non-indigenous 
disease, maximum HUF 7,000 per hectare. 
 
 Payments under this programme amounted to HUF 271 million during the period covered by 
the notification. 
 
8.  Duration of the subsidy 
 
 From 1 January to 31 December 2004 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A.  
4.54  Assistance to regional development 
 4.54.1  Assistance to territorial development 
 
Phased out  
 
4.54.2  Assistance to rural development 
 
 Phased out  
 4.54.3  Assistance to the development of rural areas 
 
 Phased out  
4.54.4  Assistance to the promotion of rural areas 
 
 Phased out  G/SCM/N/123/EEC/Add.11 
Page 196  
 
 4.55 Payments for relief from da mage caused by wild animals  
 
1.  Title of the subsidy programme 
 
Payments for relief from damage caused by wild animals  
2.   Period covered by the notification 
 
 2004 
 
3. Policy objective and/or purpose of the subsidy  
Assistance to reduce the damage  caused by wild animals 
 
4.   Background and authority for the subsidy 
 
Decree 30/1997 (IV. 30.) FVM of the Minister  of Agriculture and Regional Development 
 
5.   Form of the subsidy 
 
 Grant  
6.   To whom and how the subsidy is provided 
 
Producers 
 
7.   Subsidy per unit or the total amount  
 Payments under this programme amounted to  HUF 1, 902 million during the period covered 
by the notification. 
 
8.  Duration of the subsidy 
 
 From 1 January to 31 December 2004 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
4.56  Assistance to the market of pig for slaughter  
 
Phased out 
 4.57  Assistance to the storage in public wareh ouse of barley, rye and triticale harvested in 
1998  
 
Phased out 
 
4.58  Area-based payment for crop production  
1.  Title of the subsidy programme  
Area based payment for crop production  G/SCM/N/123/EEC/Add.11 
 Page 197 
 
 
  
2.   Period covered by the notification 
  
2004 
 
3.   Policy objective and/or purpose of the subsidy  
 To assist the crop production, to increase the income potential of small farms, to moderate the 
disadvantage of small-scale farming 
  
4.   Background and authority for the subsidy  
 Decree 3/2003 (I.24.) FVM of the Minister of Agriculture and Regional Development, 252.-
258. § 
 
5.   Form of the subsidy  
Grant, interest subsidy 
 
6.   To whom and how the subsidy is provided 
 
Producers and research, education organisations 
 
7.   Subsidy per unit or the total amount 
  
 Grant:
 
 
 cereals (wheat, durum wheat, rye,   triticale, oat, maize, broomcorn,   buckwheat, millet, meslin)     HUF 7,000 per hectare  protein crops (dry pea, chick-pea,   bean, white lupine, lentil),:     HUF 7,000 per hectare 
 oilseeds (sunflower, rape,  
 soy bean, flax)        HUF 7,000 per hectare  fibre crops (hemp and flax):     HUF 7,000 per hectare  rice:        HUF 35,000 per hectare  
 For family farm concerning the above-mentioned production: HUF 9,000 per hectare 
  For producers cultivating 1.01-3.0 hectares,  
 with less than HUF 400,000 yearly returns:   HUF 10,000 per hectare 
  (for arable land, vineyards, orchards and fish ponds) 
 
 HUF 10,000 per animal (for heavy livestock, pig, sheep and goat)   Interest subsidy:
 
 
 For producer organisations for the purposes of buying fertiliser: 
 interest subsidy for loan granted for maximum one year,   maximum        HUF 15,000 per hectare   G/SCM/N/123/EEC/Add.11 
Page 198  
 
  For fertiliser producers: 50 per cent of interest subsidy 
  Payments under this programme amounted to HUF 356 million during the period covered by 
the notification. 
 
8. Duration of the subsidy  
 From 1 January to 31 December 2004 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
  N.A.  
 
4.59 Assistance to the quality control of certain foods 
 
1.  Title of the subsidy programme  
Assistance to quality control of certain foods 
  
2.   Period covered by the notification 
 
2004 
 
3.  Policy objective and/or purpose of the subsidy 
 
To provide assistance to the quality control of certain foods 
 
4.   Background and authority for the subsidy 
 
 Decree 3/2003 (I.24.) § 195-197, 237,238,139,242, FVM Minister of Agriculture and 
Regional Development 
 
5. Form of the subsidy  
 Grant 
 
6.   To whom and how the subsidy is provided 
 
Producers 
 
7.   Subsidy per unit or the total amount 
 
50 per cent of the costs of the quality control 
 
 Payments under this programme amounted to HUF 103 million during the period covered by 
the notification.  
 
8.  Duration of the subsidy 
 
From 24 January 30 December 2003 
  G/SCM/N/123/EEC/Add.11 
 Page 199 
 
 
 9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
4.60  Assistance to the testing of agricultural machines and technology 
 
Phased out 
 
4.61 Assistance to the trade of products origin ating from the ecological fishing of silver carp 
in Lake Balaton  
 
1. Title of the subsidy programme 
 
 Assistance to the trade of products originati ng from the ecological fishing of carp and silver 
carp in Lake Balaton 
 
2.  Period covered by the notification 
  
 2004 
 
3.   Policy objective and/or purpose of the subsidy 
 
To support the ecological fishing of silver carp  
 
4.   Background and authority for the subsidy 
 
3/2003.(I.24.) § 256, 247 FVM of the Minist er for Agriculture and Regional Development 
 
5.   Form of the subsidy 
 
Grant 
 
6.   To whom and how the subsidy is provided  
     Producers  
 
7.  Subsidy per unit or the total amount 
 
HUF 15-35 per kg for the purchased carp and silver carp  
HUF 250 per kg for the product made from the silver carp  
 
 Payments under this programme amounted to HUF 15 million during the period covered by 
the notification. 
 
8. Duration of the subsidy 
 
 From 24 January to 30 December 2003   
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 G/SCM/N/123/EEC/Add.11 
Page 200  
 
 4.62  Quality-linked support to the production of game meat  
 
Phased out 
 
4.63 Assistance to on-farm education  
 
Phased out  
4.64.1 Assistance to the storage in public warehouse of wheat harvested in 1999 
 
Phased out  
  
4.65 Assistance to agricultural research instit utes with research and development activities 
 
 Phased out 
 
4.66 Assistance to establish facilities of inland waterways 
 
1. Title of the subsidy programme 
 
Assistance to establish of facilities of inland waterways on arable land  
2.  Period covered by the notification 
 
 2004 
 
3.   Policy objective and/or purpose of the subsidy  
Assistance to modernisation, operation of facilities of inland waterways on arable land 
 
4.   Background and authority for the subsidy 
 
 Decree 25/2004 (III.3.) FVM. of the Minister of Agriculture and Regional Development, 
209.-226 § 
 
5. Form of the subsidy 
 
 Grant 
 
6.  To whom and how the subsidy is provided 
 
Local governments, water associations 
 
7.   Subsidy per unit or the total amount  
75 per cent of the cost of investment for associations 
100 per cent of the cost of investment for local governments Grant for operation costs. 
 
 Payments under this programme amounted to  HUF 3, 580 million during the period covered 
by the notification. 
  G/SCM/N/123/EEC/Add.11 
 Page 201 
 
 
 8. Duration of the subsidy 
 
 From 1 January to 31 December 2004 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
4.67  Quality-linked support for maize for human consumption  
 
1.  Title of the subsidy programme 
 
 Quality-linked support for ma ize for human consumption  
 
2.   Period covered by the notification 
 
 2004 
 
3.   Policy objective and/or purpose of the subsidy 
 
To provide assistance to the quality production of maize 
 
4.   Background and authority for the subsidy 
 
102/2001 (XII. 16.) §234 FVM of the Minister  for Agriculture and Regional Development 
 
5.   Form of the subsidy  
 Grant 
 
6.   To whom and how the subsidy is provided 
 
 Producers  
 
7.   Subsidy per unit or the total amount 
 
HUF 5 per kg .  The maximum eligible quantity is 400 000 tons 
 
 Payment under this programme amounted to HUF 5 million during the period covered by the 
notification.  
8. Duration of the subsidy 
 
   From 1 January to 23 January 2003 
 
9.  Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A.  
 G/SCM/N/123/EEC/Add.11 
Page 202  
 
 4.68  Assistance to maintain the quality of processed pork and beef  
 
1.  Title of the subsidy programme 
 
  Assistance to maintain the quality of processed pork and beef  
 
2.   Period covered by the notification 
 
 2004 
 
3.  Policy objective and/or purpose of the subsidy  
Assistance to compensate the cost of pack aging, hygienic control and refrigeration 
 
4.   Background and authority for the subsidy 
 
51/2003.(V.15.) FVM of the Minister for Agriculture and Regional Development 
 
5.   Form of the subsidy  
Grant  
6.   To whom and how the subsidy is provided 
 
Producers  
 
7.   Subsidy per unit or the total amount  
 Payments under this programme amounted to HUF 133 million during the period covered by 
the notification. 
 
8.  Duration of the subsidy 
 
 From 15 May to 30 December 2003 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
4.69 Assistance to the production of apple in  bulk delivered for processing to food industry in 
2002 
 
Phased out 
  G/SCM/N/123/EEC/Add.11 
 Page 203 
 
 
 4.70 Assistance to the implementation of the National Agricultural Environment Protection 
Programme 
 1. Title of the subsidy programme 
 Assistance to National Agricultural Environment Protection 
 
2. Period covered by the notification 
 
 2004  
3.   Policy objective and/or purpose of the subsidy 
 
Assistance to the environmen t protection in agriculture 
 
4.  Background and authority for the subsidy  
 Decree 3/2003 (I. 24.) FVM of the Minister of Agriculture and Regional Development, 67.-
76. § 
 
5. Form of the subsidy 
 
 Grant 
 
6.  To whom and how the subsidy is provided 
 
 Producers, organisations undertaking to fulfil the requirements of the Program for at least five 
years 
 
7. Subsidy per unit or the total amount 
 
For Agricultural Environment Protection Basic Programme   
(soil protecting cultivation )    HUF 19,000 per hectare 
experimental alternative crop  production programmes):   HUF 14,000 to 35,000 per hectare  
For integrated crop production: 
For arable land:      HUF 27,000 per hectare 
For field vegetables:     HUF 30,000 per hectare For pomaceous fruits:     HUF 50,000 per hectare For drupe and berry fruits:    HUF 40,000 per hectare For grape (vineyard):     HUF 40,000 per hectare  For organic production: 
For the transition period: 
For field crops:      HUF 25,000 per hectare For vegetable:      HUF 30,000 per hectare For orchard:      HUF 40,000 per hectare 
For vineyard:      HUF 40,000 per hectare 
For grassland:      HUF 10,000 per hectare  For transited area: For field crops:      HUF 20,000 per hectare G/SCM/N/123/EEC/Add.11 
Page 204  
 
 For vegetable:      HUF 21,000 per hectare 
For orchard:      HUF 21,000 per hectare For vineyard:      HUF 21,000 per hectare For grassland:      HUF 10,000 per hectare For seed production:   HUF 30,000 to 50,000 per hectare 
 
For grassland programme:     HUF 10,000 per hectare 
 For wetland programme:     HUF 8,000 per hectare 
 
For zonal agricultural environment  
protection programmes:   HUF 10,000 to 50,000 per hectare 
 
For experimental zonal agr icultural environment  
protection programmes:    HUF 16,000 to 48,000 per hectare 
 
For organic production: 
 
For cattle:   HUF 6,000 to 10,000 per animal 
For sheep:   HUF 1,200 to 2,500 per animal For pig:   HUF 1,200 to 2,500 per animal 
For goat:   HUF 1,200 to 2,500 per animal 
For horse:   HUF 3,000 per animal For poultry:   HUF 40 to 300 per animal For bee:   HUF 500 to 700 per family  For extensive animal breeding: 
 
For cattle:   HUF 4,000 per animal For sheep:   HUF 1,000 per animal For goat:   HUF 1,000 per animal For horse:   HUF 2,500 per animal 
For deer:   HUF 2,500 per animal 
 
For realisation of complex agricultural en vironment protective production projects: 
 
75 per cent of the cost, maximum HUF 15 million  
For planning, research and development projects: 
 
75 per cent of the cost, maximum HUF 12 million 
 
For training programmes connected to agricultural environment protection: 
 
90 per cent of the cost, maximum HUF 9 million   
For pilot projects connected to ag ricultural environment protection: 
 75 per cent of the cost, maximum HUF 9 million 
 
 Payments under this programme amounted to  HUF 1, 594 million during the period covered 
by the notification.   G/SCM/N/123/EEC/Add.11 
 Page 205 
 
 
 8.   Duration of the subsidy 
 
 From 1 January to 31 December 2004 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
4.71  Additional assistance for family farms 
 
Phased out 
 
4.72 Quality-linked support of tomato for industrial purposes 
 
Phased out  
4.73  Quality-linked support for red pepper  
 
 Phased out 
 
4.74  Quality-linked support for onion  
  Phased out  
 
4.75  Quality-linked support for pea 
 
Phased out 
 
4.76 Quality-linked support for cucumber 
 
Phased out   
 
4.77  Quality linked support for fruits  4.77.1  Quality-linked support for cherry and sour cherry  
Phased out  
4.77.2 Quality-linked support for raspberry 
 
Phased out   
 
4.78 Interest rate subsidy for bank loans recei ved for storage in public warehouse of canned 
and frozen products  
 
1. Title of the subsidy programme  
 Interest rate subsidy for bank loans receive d for storage in public warehouse of canned and 
frozen products  
 
2. Period covered by the notification 
 
 2004 G/SCM/N/123/EEC/Add.11 
Page 206  
 
  
3.  Policy objective and/or purpose of the subsidy 
 
To provide assistance to the storage of canned and frozen products  
 
4. Background and authority for the subsidy  
Decree 49/2003. (V.9.) FVM of the Minister  of Agriculture and Regional Development 
 
5.   Form of the subsidy 
 
 Grant 
 
6.   To whom and how the subsidy is provided 
 
Processors 
 
7.   Subsidy per unit or the total amount 
 
 Interest subsidy of 70 per cent of the basic in terest rate of the National Bank of Hungary for 
loans which have the stored commodity as collateral 
 
 Payments under this programme amounted to HUF 27 million during the period covered by 
the notification. 
 
8. Duration of the subsidy 
  
 From 14 May to 31 December 2003 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 
4.79  Assistance to the self restriction of cow milk production 
 
Phased out 
 4.80  Assistance to private forestry  
1.  Title of the subsidy programme  
Assistance to private forestry 
 
2.   Period covered by the notification  
 2004 
 
3.   Policy objective and/or purpose of the subsidy 
 
Assistance to the private forest management 
  G/SCM/N/123/EEC/Add.11 
 Page 207 
 
 
 4.   Background and authority for the subsidy 
 
 Decree 25/2004 (III. 3.) FVM of the Minister of  Agriculture and Regional Development, 18.-
26. § 
 
5.   Form of the subsidy  
 Grant 
 
6.   To whom and how the subsidy is provided 
 
Private sylviculturists and co-operations, organisations in the field of forestry  
 
7.   Subsidy per unit or the total amount 
For the cost of management: 
For sylviculturists with forest  less than 2,000 hectares: 
50 per cent of the cost. 
 
For forestry integrators with 200 to 4,000 h ectare forest, with returns up to HUF 500 million 
per year: HUF 1,000 to 2,000 per hectare. 
 
For the cost of establishment of co-op erative organisations and operative costs: 
80 per cent of the cost of establishment, maximum HUF 400,000. 
 
HUF 5,000 per hectare for operation costs, maximum HUF 5 to 10 million.   
 
No payments occurred under this programme during the period covered by the notification. 
 
8. Duration of the subsidy 
 
 From 1 January to 31 December 2004 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
4.81  Assistance to the utilisation of bio fuel 
 
Phased out 
 
4.82  Special support for the quality production of beef for slaughter 
 
1.  Title of the subsidy programme 
 
Special support for the quality production of beef for slaughter 
 
2.   Period covered by the notification 
 
 2004 
 G/SCM/N/123/EEC/Add.11 
Page 208  
 
 3.   Policy objective and/or purpose of the subsidy 
 
 To ensure the equilibrium between domestic  supply and demand, to support agricultural 
income and encourage quality production.  
 
4. Background and authority for the subsidy  
Decree 35/2003.(III.31.) FVM of the Minister for Agriculture and Regional Development     
 
5. Form of the subsidy 
 
 Grant 
 
6.   To whom and how the subsidy is provided 
 
Producer 
 
7.  Subsidy per unit or the total amount 
 
  HUF 12 000 – 15 000 per animal  
 
 Payments under this programme amounted to HUF 23 million during the period covered by 
the notification. 
 
8. Duration of the subsidy 
 
From 31 March to 30 December 2003 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 4.83 Additional assistance to enhance the husbandry conditions  4.83.1  Assistance to poultry for slaughter 
 
1.  Title of the subsidy programme 
 
Assistance related to the husbandry conditions of poultry for slaughter 
 
2.   Period covered by the notification   
 2004 
 
3.   Policy objective and/or purpose of the subsidy  
To enhance the husbandry conditions  
 
4.   Background and authority for the subsidy 
 
Decree 9/2003. (II.7) FVM of the Minister for Agriculture and Regional Development 
Decree 53/2003.(V.19.) FVM of the Minister for Agriculture and Regional Development 
 Decree 25/2004 (III.3.) §147-149 FVM of the Minister for Agriculture and Regional Development  G/SCM/N/123/EEC/Add.11 
 Page 209 
 
 
  
5.   Form of the subsidy 
  
 Grant 
 
6.   To whom and how the subsidy is provided  
 Producers, processors 
 
7.  Subsidy per unit or the total amount 
 
HUF 8.20- 9.50 per kg 
  Payments under this programme amounted to  HUF 3,724 million during the period covered 
by the notification. 
 
8.  Duration of the subsidy 
 
 From 3 March 2004 
Duration has not been specified. 
  
9   Statistical data permitting an assessment of the trade effects of the subsidy  
 N.A. 
 
4.83.2 Assistance to pig for slaughter 
 
1.  Title of the subsidy programme  
Assistance to the implementation of the husbandry rules of pig for slaughter 
 
2.   Period covered by the notification 
  
 2004 
 
3.   Policy objective and/or purpose of the subsidy 
 
To assist the implementation of the husbandry rules of pig for slaughter 
  
4.   Background and authority for the subsidy 
 
Decree 12/2003 (II.7.) FVM of the Minister for Agriculture and Regional Development 
Decree 52/2003 (V.15.) FVM of the Minister for Agriculture and Regional Development 
 Decree 25/2004 (III.3.) §147-150 FVM of the Minister for Agriculture and Regional 
Development 
 
5.   Form of the subsidy 
  
 Grant 
 
6.   To whom and how the subsidy is provided 
 
 Producers G/SCM/N/123/EEC/Add.11 
Page 210  
 
  
7.  Subsidy per unit or the total amount 
 
Decree 12/2003 (II.7.) FVM and D ecree 52/2003 (V.15.) FVM : 
Class:  S,E,U HUF 3000 per animal 
Class:  R,O,P and M1, M2, V HUF 200 per animal 
 
Decree 25/2004 (III.3.) FVM : HUF 2000 per animal 
 
 Payments under this programme amounted to  HUF 8,717 million during the period covered 
by the notification. 
 
8. Duration of the subsidy 
 
 From 3 February 2003 
Duration has not been specified. 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 
4.84 The flat rate cost refund related to the in tervention stocks of maize harvested in 2002  
 
Phased out  
4.85  Additional assistance to cow milk 
 
1. Title of the subsidy programme 
 
Additional assistance to cow milk 
 
2.   Period covered by the notification 
  
 2004 
 
3.   Policy objective and/or purpose of the subsidy 
 
To support the agricultural income and encourage quality production  
 
4.   Background and authority for the subsidy 
 
Decree 16/2004 (II.13.) FVM of the Minister for Agriculture and Regional Development 
Decree 32/2004 (III.19.) FVM of the Minister for Agriculture and Regional Development 
 
5.   Form of the subsidy 
  
 Grant 
 
6.   To whom and how the subsidy is provided 
 
 Producers 
  G/SCM/N/123/EEC/Add.11 
 Page 211 
 
 
 7.  Subsidy per unit or the total amount 
 
HUF 4-8 per liter 
  Payments under this programme amounted to  HUF 2,655 million during the period covered 
by the notification. 
 
8. Duration of the subsidy 
 
 From 13 February  to 30 April 2004 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 4.86 Assistance to protection against hail 
 
1. Title of the subsidy programme 
 
Assistance to the protection against hail 
 
2. Period covered by the notification  
 2004 
 
3.   Policy objective and/or purpose of the subsidy 
 
Assistance to the protection against hail 
 
4.   Background and authority for the subsidy 
 
 Decree 25/2004 (III. 3.) FVM of the Minister of  Agriculture and Regional Development, 284-
285. § 
 
5.   Form of the subsidy 
 
 Grant  
6.   To whom and how the subsidy is provided 
 
Producers 
 
7.  Subsidy per unit or the total amount 
 
 Payments under this programme amounted to HUF 30 million the period covered by the 
notification.  
8.   Duration of the subsidy 
 
 From 1 January to 20 November 2004 
 G/SCM/N/123/EEC/Add.11 
Page 212  
 
 9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
4.87 Assistance to rural development services 
 
1. Title of the subsidy programme  
Assistance to rural development services 
 
2. Period covered by the notification 
 
 2004 
 
3.   Policy objective and/or purpose of the subsidy 
 
Assistance to promotion the rural developm ent programmes financed by EU sources  
 
4. Background and authority for the subsidy 
 
Decree 25/2004 (III. 3.) FVM of the Minister of Agriculture and Regional Development, 286. § 
 
5.   Form of the subsidy 
 
 Grant 
 
6.   To whom and how the subsidy is provided  
Organisations in rural areas 
 
7.   Subsidy per unit or the total amount 
 
 Payments under this programme amounted to  HUF 252 million the period covered by the 
notification. 
 
8. Duration of the subsidy 
 
 From 1 January to 20 November 2004 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 4.88  Assistance to the crop production and animal breeding of agricultural producers 
 
1 Title of the subsidy programme 
 
Assistance to the crop production and an imal breeding of agricultural producers 
 
2. Period covered by the notification 
 
 2004 
  G/SCM/N/123/EEC/Add.11 
 Page 213 
 
 
 3.   Policy objective and/or purpose of the subsidy 
 
Assistance to the crop production and an imal breeding of agricultural producers 
 
4.   Background and authority for the subsidy 
 
Decree 41/2004 (IV. 7.) FVM of the Minister of Agriculture and Regional Development 
 
5.   Form of the subsidy 
 
 Grant 
 
6.   To whom and how the subsidy is provided 
 
Producers  
7.   Subsidy per unit or the total amount 
 
Crop production:      HUF 8,000 per hectare  
Minimal area is 1.00 hectare in the case of arable land and grassland, 0.3 hectare in the case 
of vineyards and orchards.) 
 
Animal breeding: 
 
For cow:      HUF 40,000 per animal For female sheep and goat:    HUF 1,600 per animal 
For cow milk (within the quota):    HUF 2 per kilogramm 
(Only for producers with maximum 120 tonnes milk quota.)  
 No payments occurred under this programme during the period covered by the notification. 
 
8.  Duration of the subsidy 
 
 From 7 April to 31 December 2004 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
4.89 Assistance to the prefinance of crop pr oduction and animal breeding of agricultural 
producers 
 
1. Title of the subsidy programme 
 
Assistance to the prefinance of crop production and animal breeding of agricultural producers 
 
2. Period covered by the notification 
 
 2004 
 G/SCM/N/123/EEC/Add.11 
Page 214  
 
 3.   Policy objective and/or purpose of the subsidy 
 
Assistance to the prefinance of crop production and animal breeding of agricultural producers 
 
4.   Background and authority for the subsidy 
 
Decree 91/2004 (V. 20.) FVM of the Minister  of Agriculture and Regional Development 
 
5.   Form of the subsidy 
 
 Interest subsidy 
 
6.   To whom and how the subsidy is provided 
 
Producers  
7.  Subsidy per unit or the total amount 
 
 In the case of claiming the prefinance of crop production and animal breeding payments 
financed by private banks, the agricultural produ cers are entitled to get interest subsidy from the 
Government as follows: 
 
- 15 June 2004:      5 % 16 June 2004 – 30 June 2004:    4,5 % 1 July 2004 – 15 July 2004:    4 % 16 July 2004 – 31 July 2004:    1,5 % 
1 August 2004 – 15 August 2004:   1 % 
16 August 2004-31 August 2004:   0,5 %  
No payments occurred under this programme during the period covered by the notification. 
 
8.  Duration of the subsidy 
 
 From 20 May to 31 December 2004 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
4.90 National supplementary (“top up”) paymen t connected to the SAPS (Single Area Payment 
System) in the year 2004 
 
1. Title of the subsidy programme 
 
National supplementary payment connected to the SAPS 
 
2.  Period covered by the notification 
 
 2004 
  G/SCM/N/123/EEC/Add.11 
 Page 215 
 
 
 3.   Policy objective and/or purpose of the subsidy 
 
National supplement of the SAPS payments  
 
4.   Background and authority for the subsidy 
 
Decree 87/2004 (V. 15.) FVM of the Minister  of Agriculture and Regional Development 
 
5.   Form of the subsidy 
 
 Grant 
 
6.   To whom and how the subsidy is provided 
 
Producers  
7. Subsidy per unit or the total amount 
 
For bulls:      HUF 34,700 per animal 
(Maximum number of granted animals is 94,620 heads.)  
For rice:      HUF 59,000 per hectare 
(Maximum area of rice is 3,222 hectares.)  For tobacco: 
Burley type:      HUF 580,000 per hectare 
Virginia type:      HUF 740,000 per hectare 
(Maximum area of Burley tobacco is 2,000 hect ares, of Virginia tobacco is 3,483 hectares.) 
 For certain arable crops:     HUF 11,000 per herctare (Maximum arable land size is 3,520,790 hectares.)  
 No payments occurred under this programme during the period covered by the notification. 
 
8. Duration of the subsidy 
 
 From 15. May to 31 December 2004  
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
4.91  SAPARD Programme 
 
4.91.1  SAPARD Programme: Assistance to investments of agricultural entrepreneurships 
 
1.  Title of the subsidy programme 
 
Assistance to investments of agricultural entrepreneurships 
 
2. Period covered by the notification 
 
 2004 G/SCM/N/123/EEC/Add.11 
Page 216  
 
 3.   Policy objective and/or purpose of the subsidy 
 
 Assistance to agricultural investments (purch asing agricultural machines, development of 
buildings)   
4.   Background and authority for the subsidy  
Decree 53/2001 (VIII. 17.) FVM of the Minister of Agriculture and Regional Development 
 
5. Form of the subsidy 
 
 Grant 
 
6.   To whom and how the subsidy is provided 
 
Producers 
 
7. Subsidy per unit or the total amount 
 
 For purchasing agricultural machines: 
  
Grant: 
30 % of the cost (from EU sources: 22,5 %, from national sources: 7,5 %)  
For development of buildings: 
Grant: 40 % of the cost (from EU sources: 30 %, from national sources: 10 %). 
 Maximum amount of the grant is HUF 40 million. 
  Payments under this programme amounted to HUF 6,878 million the period covered by the 
notification (HUF 5,159 from Community suppor t+HUF 1,719 million national co-financing). 
 
8. Duration of the subsidy 
 
 From 1 January to 31 December 2004 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N. A. 
 
4.91.2  SAPARD Programme: Deve lopment of processing and marketing of agricultural and 
fishery products 
 
1. Title of the subsidy programme 
 
Assistance to development of processing and mark eting of agricultural and fishery products 
 
2. Period covered by the notification  
 2004 
  G/SCM/N/123/EEC/Add.11 
 Page 217 
 
 
 3.   Policy objective and/or purpose of the subsidy 
 
 Assistance to development of processing and mark eting of agricultural and fishery products 
(especially in the field of food safety, food hy giene, environment protection, animal welfare, 
technology modernisation, quality improvement)  
 
4.   Background and authority for the subsidy 
 
Decree 53/2001 (VIII. 17.) FVM of the Minister of Agriculture and Regional Development 
 
5. Form of the subsidy  
 Grant 
 
6.   To whom and how the subsidy is provided 
 
Processors of meat, milk, egg, wine, fruit- and vegetable, fishery products$ 
 
7.  Subsidy per unit or the total amount 
 
Grant:  
40 % of the cost (from EU sources: 30 %, from national sources: 10 %). Maximum amount of the grant is HUF 80 million. 
  Payments under this programme amounted to HUF 4, 917 million the period covered by the 
notification (HUF 3,688 from European Community support+HUF 1,229 million national co-
financing).  
8.   Duration of the subsidy 
 
 From 1 January to 31 December 2004  
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 4.91.3  SAPARD Programme: Developm ent of rural infrastructure 
 
1.  Title of the subsidy programme  
Assistance to development of rural infrastructure 
 
2. Period covered by the notification  
 2004 
 
3.   Policy objective and/or purpose of the subsidy 
 
 Assistance to development of rural infrastructur e (development of rural roads, development of 
energy services, establishment of sewage disposal , development and establishment of local consumer 
and wholesale markets, development of IT service sin rural areas)  G/SCM/N/123/EEC/Add.11 
Page 218  
 
 4.   Background and authority for the subsidy 
 
Decree 53/2001 (VIII. 17.) FVM of the Minister of Agriculture and Regional Development 
 
5.   Form of the subsidy 
 
 Grant 
 
6.   To whom and how the subsidy is provided 
 
Producers, integrators, civil organisations, local governments 
 
7.  Subsidy per unit or the total amount 
 
Grant: 75 % of the cost  of investment(from EU sources: 56,25 %, from national sources: 18,75 %) 
 
For establisghment of local consumer and wholesale markets:: 
Grant: 
50 % of the cost (from EU sources: 37,5 %, from national sources: 12,5 %).  
 Payments under this programme amounted to HUF 4,035 million the period covered by the 
notification (HUF 3,026 from Community suppor t+HUF 1,009 million national co-financing). 
 
8. Duration of the subsidy 
 
 From 1 January to 31 December 2004 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 4.91.4  SAPARD Programme: Technical assistance  
1.  Title of the subsidy programme  
Technical assistance  
2. Period covered by the notification 
 
 2004 
 
3.   Policy objective and/or purpose of the subsidy 
 
Technical assistance (preliminary researches, reports, giving information, monitoring). 
 
4. Background and authority for the subsidy 
 
Decree 53/2001 (VIII. 17.) FVM of the Minister of Agriculture and Regional Development 
 
5.   Form of the subsidy 
 
 Grant  G/SCM/N/123/EEC/Add.11 
 Page 219 
 
 
  
6.   To whom and how the subsidy is provided 
 
 Organisations 
 7.   Subsidy per unit or the total amount  
 Payments under this programme amounted to HUF 54 million the period covered by the 
notification (HUF 43 million from European Community support+HUF 11 million national co-
financing). 
 
8. Duration of the subsidy 
 
 From 1 January to 31 December 2004 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A.  
 
4.92  Co-financed assistance to the school milk programme  
1.  Title of the subsidy programme 
 
Co-financed assistance to the school milk programme 
 
2. Period covered by the notification 
  2004 
 
3.   Policy objective and/or purpose of the subsidy 
 
To encourage milk consumption in order to improve the nutritional intake of students 
 
4.   Background and authority for the subsidy 
 
Decree 51/2004 (IV.24.) FVM of the Minister of Agriculture and Regional Development 
 
5.   Form of the subsidy  
 Grant 
 
6.   To whom and how the subsidy is provided 
 
 Local government (as owners of primary schools)  
Accredited milk processors 
 
7.  Subsidy per unit or the total amount  
HUF 30 per 0.2 liter milk/per student/per education day 
 
 Payments under this programme amounted to  HUF 183 million the period covered by the 
notification (HUF 85 million from European Community support+HUF 98 million national co-
financing). G/SCM/N/123/EEC/Add.11 
Page 220  
 
  
8. Duration of the subsidy 
 
 From 24 April to 31 December 2004 
 
9.   Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N.A. 
 
5. CORPORATE TAX CONCESSIONS TO ASSIST STRUCTURAL ADJUSTMENT 
AND ECONOMIC DEVELOPMENT (2004) 
 
5.1 Tax Concession for Investme nts Exceeding 3 Billion HUF 
 
1. Title of the subsidy programme 
 
 Tax concession for investments exceeding 3 billion HUF.  
2. Period covered by the notification 
 
 2004 
 
3. Policy objective and/or purpose of the subsidy 
 
 The purpose of this tax concession is to stim ulate investments in underdeveloped regions 
from a social-economic point of view and/or in c ounties having unemployment rate higher than 15 per 
cent. 
 
4. Background and authority for the subsidy 
 
 This tax benefit is provided for by Secti on 21 of the Act LXXXI of 1996 on the Corporate 
Tax and Dividend Tax as amended by the Act CV I of 1997 on the Corporate Tax and Dividend Tax 
and Section 48 of Act CXIII of 2000 on the Am endment of Certain Acts Concerning Taxes.  
 
5. Form of the subsidy 
 
 The subsidy is in the form of deduction from the corporate tax.  
6. To whom and how the subsidy is provided 
 
 Companies with head office or premises registered in a socially-economically 
underdeveloped region and/or in a county where th e unemployment rate exceeds 15 per cent that after 
31 December 1996 began an investment of at least  3 billion HUF for the production of goods may 
receive a 100 per cent tax concession  in those taxa tion years of a ten year period following the 
project’s start up when 
 
 -  their sale proceeds increase by at least 5 per cent of the  investment value, or   
 -  the level of sale proceeds in a given year corresponds to the value calculated on the 
basis of successive yearly sale proceeds increase of 5 per cent. 
  G/SCM/N/123/EEC/Add.11 
 Page 221 
 
 
  The above tax benefit can only be applied fo r from the second taxation year and thereafter if 
the annual average number of the staff employed exceeds by at least 100 persons the average number 
of the staff employed in the year preceding the start up.   
7. Subsidy per unit or the total amount 
 
 For the time being not available.  
8. Duration of the subsidy 
   This tax concession may not be applied after the year 2011. 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 
5.2 Tax Concession for Investments Exceeding 10 Billion HUF 
 
1. Title of the subsidy programme 
 
 Tax concession for investments exceeding 10 billion HUF. 
 
2. Period covered by the notification 
 
 2004  3. Policy objective and/or purpose of the subsidy  
The purpose of this tax benefit is  to promote large investments. 
 
4. Background and authority for the subsidy 
 
 This tax benefit is provided for by Secti on 21 of Act LXXXI of 1996 on the Corporate Tax 
and Dividend Tax as modified by the Act CVI of 1997 on the Corporate Tax and Dividend Tax. 
  
5. Form of the subsidy 
 
 The subsidy is in the form of deduction from the corporate tax. 
 
6. To whom and how the subsidy is provided 
 
 Companies that began after 31 December 1996 an investment of at least 10 billion HUF 
destined for the production of goods may receive a 100 per cent tax concession in those taxation years 
of a ten year period following the project’s start up when 
 
- their sale proceeds increase by at least 5 per cen t of the investment value compared to the 
previous year, or 
 
- the level of sale proceeds in a given year co rresponds to the value calculated on the basis of 
successive yearly sale proceeds increase of 5 per cent.  G/SCM/N/123/EEC/Add.11 
Page 222  
 
  The above tax benefit can only be applied fo r from the second taxation year and thereafter if 
the annual average number of the staff employed exceeds by at least 500 persons the average number 
of the staff employed in the year preceding the start up.  
7. Subsidy per unit or the total amount 
 
 For the time being not available.  
8.  Duration of the subsidy 
  
 This tax concession may not be applied after the year 2011. 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 
5.3 Tax Concession to Promote Structural Adjustment 
 
1. Title of the subsidy programme 
 
 Tax concession to promote structural adjustment. 
 
2. Period covered by the notification 
 
 2004  4. Background and authority for the subsidy 
 
 This tax benefit is provided for by Section 13 , paragraph (1) subparagraph a) of Act LXXXVI 
of 1991 on the Corporate Tax and Section 29, paragr aph (5), subparagraph c) of Act LXXXI of 1996 
on the Corporate Tax and Dividend Tax.  5. Form of the subsidy 
 
The subsidy is in the form of deduction from the corporate tax.  
 
6. To whom and how the subsidy is provided 
 
 Companies are awarded this kind of subsidy by an interdepartmental committee through tendering procedures.    
7. Subsidy per unit or the total amount 
  The tax concession can be made use of in the form of withholding the tax out of the tax 
calculated, according to the following ratio of th e interests on the loans and credits linked to the 
approved project: 30 per cent of the capitalised inte rest or 18 per cent of the interest accounted as 
costs. 
 
The amount of  tax concession  not yet available. 
  G/SCM/N/123/EEC/Add.11 
 Page 223 
 
 
 8. Duration of the subsidy 
 
 The tax benefit may be requested on the basis of credit contracts concluded not later than 
31 December 1996.  9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A.  
5.4 Tax Concession for Bank Credits Financing Other Investments 
 
1. Title of the subsidy programme 
 
 Tax concession for bank credits financing other investments. 
 2. Period covered by the notification 
 
 2004  
3. Policy objective and/or purpose of the subsidy 
 
 The tax concession was constructed to reduce th e interest burden on credits financing projects 
serving production, environmental protecti on, tourism and distribution purposes. 
 
4. Background and authority for the subsidy 
 
 This tax benefit is provided for by Section 13 , paragraph (1) subparagraph a) of Act LXXXVI 
of 1991 on the Corporate Tax and Section 29, paragr aph (5), subparagraph c) of Act LXXXI of 1996 
on the Corporate Tax and Dividend Tax.  
5. Form of the subsidy 
 
 The subsidy is in the form of deduction from the corporate tax. 
 
6. To whom and how the subsidy is provided 
 
 Companies investing from bank credits in projects of production, environment protection, tourism and distribution services.  
 
7. Subsidy per unit or the total amount 
 
 The tax concession can be made use of in the form of withholding the tax out of the tax 
calculated, according to the following ratio of the interests on bank credits: 19 per cent of the 
capitalised interest or 12 per cent of  the interest accounted as costs. 
  The amount of support not yet available.  
 
8. Duration of the subsidy  
  The tax benefit may be requested on the basis of credit contracts concluded not later than 
31 December 1996. 
 G/SCM/N/123/EEC/Add.11 
Page 224  
 
 9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A.  
5.5 Tax Rate Relief for Foreign Investors 
 
1. Title of the subsidy programme 
 
 Tax rate relief for foreign investors.  2. Period covered by the notification 
 
 2004  
3. Policy objective and/or purpose of the subsidy 
 
 The programme is intended to create conditions  conducive to the establishment and operation 
of foreign investors that do not engage  in economic activities in Hungary.  
 
4. Background and authority for the subsidy 
  This tax benefit is provided for by Section 19, paragraph (2) of Act LXXXI of 1996 on the 
Corporate Tax and Dividend Tax. 
 
5. Form of the subsidy 
 
The subsidy is in the form of reduced corporate tax rate.  
 
6. To whom and how the subsidy is provided 
 
 The preferential tax rate is available for a ny limited liability company or joint-stock company 
incorporated and having its head office in Hungary that is fully foreign owned without discontinuation 
and which  
 (a)  has obtained authorisation from the Minist er of Finance granting it Customs Free Zone 
benefits or, having regard to the fulfilment of the conditions in b) through e), was registered 
by the Minister of Finance, and 
 
(b)  performs trading activities exclusively be tween third countries, or provides services 
exclusively to other countries, and 
 c)  in its domestic administrative and court pr oceedings employs only domestic lawyers and whose 
senior officers, supervisory board members and empl oyees, taken separately, are in majority domestic 
natural persons and, furthermore, meets its audit obl igations through an auditor registered in Hungary, 
and  (d)   whose bank account necessary for its operation is kept in Hungary, and  
(e)   neither itself, nor its owners have any in terests in domestic companies or co-operatives, nor 
do they maintain any representative office in Hungary, nor there are domestic persons among 
its direct or indirect owners.     
  G/SCM/N/123/EEC/Add.11 
 Page 225 
 
 
 7. Subsidy per unit or the total amount 
 
The foreign investor may take advantag e of a preferential 3 per cent tax rate. 
 
8. Duration of the subsidy 
 
 From 1 January 2001 no new rights can be ac quired and benefits under this scheme will cease 
to exist after 31 December 2005.  
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A.  
5.6 Tax Concession Related to Investments 
 
1. Title of the subsidy programme 
 
 Tax concession related to investments.  
2. Period covered by the notification 
  2004 
 
3. Policy objective and/or purpose of the subsidy 
 
 The objective of this scheme is to promote deve lopment activities by corporations of a certain 
importance whose investment projects result in the manufacturing of up-to-date and environment 
friendly products and thereby increasing their sales and / or creating new jobs.  
4.  Background and authority for the subsidy 
 
 This tax concession has been provided for by Section 14/A, paragraph (2) of Act LXXXVI of 
1991 on the Corporate Tax as modified by Act CVI of 1997 on the Corporate Tax and Dividend Tax, 
and Decree 90/1994. (VI.8.) of the Government on Certain Corporate Tax Benefits as modified by Decree 190/1994. (XII.31.) of the Government on Ce rtain Corporate Tax benefits, and Section 29, 
paragraph (5), subparagraph d) of Act LXXXI of 1996 on the Corporate Tax and Dividend Tax. 
 5.  Form of the subsidy  
 The subsidy is in the form of deduction from the corporate tax. 
 
6.  To whom and how the subsidy is provided 
 
 Application for the concession could be ma de by a company (a) whose founders' equity 
exceeded HUF 500 million  and (b) projected to make investment for at least HUF 200 million that (c) resulted in yearly sales revenue half of which w as realized from the manufacturing of environment 
friendly products and/or from the sales of products  that have been produced by using modern 
technologies and/or employing the results of scientific  research and (d) project ed an increase in its 
turnover or (e) the creation of new jobs. Unde r Section 14/A. of the Corporate Tax Act the 
Government was granted discretionary power to gran t individual tax concessions to applicants that 
met the criteria referred to above.  G/SCM/N/123/EEC/Add.11 
Page 226  
 
 7. Subsidy per unit or the total amount 
 
 The maximum extent of the subsidy is 100 per cent of the corporate tax due for the first 5 
years and 60 per cent for the second period of 5 years.  
 
 The tax concession can be made use of in the form of withholding the tax out of the tax 
calculated.  
 The amount of tax benefit not yet  available. 
 8. Duration of the subsidy  
 The provisions of the Corporate Tax Act in troducing this scheme came into effect on 
1 January 1994 and lost effect on 1 January 1995. The possibility of obtaining tax concession under 
this scheme was abolished by Section 13, paragrap h (5), subparagraph a) of Act LXXXIII of 1994 
with effect as of 1 January 1995. However, par ticular concessions granted before that date will 
continue to be applied until their expiry date a pproved by the Government and provided that the 
criteria continue to be met.  
9. Statistical data permitting an assessment of the trade effects of the subsidy 
  N.A. 
 
5.7 Tax Relief for Projects of Micro and Small Enterprises 
 
1. Title of the subsidy programme 
 
 Tax relief for projects of micro and small enterprises.  
2. Period covered by the notification 
 
 2004 
 
3  Policy objective and/or purpose of the subsidy 
 
 The objective of this scheme is to promot e investment activities of micro- and small-
enterprises. 
 
4  Background and authority for the subsidy 
 
 The tax  relief is provided for by Section 7, paragraph (1), subparagraph (zs) of Act LXXXI 
of 1996 on the Corporate Tax and Dividend Tax and Section 36 Paragraph (9) of Act XCIII of 2000 
on the Amendment of Certain Acts Concerning Taxes.  
 
5  Form of the subsidy 
 
 This subsidy is in the form of deduction from the corporate tax base. 
 6. To whom and how the subsidy is provided 
 
 Investing micro and small enterprises, provided all of their members were private natural persons in the tax year. 
  G/SCM/N/123/EEC/Add.11 
 Page 227 
 
 
  
7. Subsidy per unit or the total amount 
 
 The tax relief is equal to the total amount of th e project costs, but may not be higher than the 
pretax profit or 30 million HUF. 
 
The amount of Support  not yet available.  
8   Duration of the subsidy 
 
 This tax relief was introduced in 2001. No exp licit time limit is attached to this subsidy. 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 
5.8 Tax Concession for Small and Medium Sized Enterprises 
 
1. Title of the subsidy programme 
 
 Tax concession for small and medium sized enterprises. 
 
2. Period covered by the notification 
 
 2004  3.  Policy objective and/or purpose of the subsidy  
 The purpose of this tax concession is to stimulate investment activities of small and medium-
sized enterprises.  
4.  Background and authority for the subsidy 
  The tax concession is provided for by Secti on 22/A of Act LXXXI of 1996 on  Corporate Tax 
and Dividend Tax and Section 49 of Act 2000 on th e Amendment of Certain Acts Concerning Taxes. 
 
5. Form of the subsidy 
  The subsidy is in the form of deduction from the corporate tax. 
 
6.  To whom and how the subsidy is provided 
 
Small and medium-sized enterprises fina ncing their investments by bank loans. 
 
7. Subsidy per unit or the total amount 
 
 The tax concession is equal to 40 per cent of the interest paid on bank loans during the tax year.  The concession may not be in excess of 5 million HUF per year.  
 
The amount of support  not yet available.  
 G/SCM/N/123/EEC/Add.11 
Page 228  
 
 8  Duration of the subsidy 
 
 This tax concession was introduced in 2001. No expl icit time limit is attached to this subsidy. 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A.  
5.9 Tax Relief for Development Reserve 
 
1. Title of the subsidy programme 
 
 Tax relief for development reserve.  
2. Period covered by the notification 
 
 2004  
3. Policy objective and/or purpose of the subsidy 
 
 The objective of this scheme is to promote investment activities. 
 
4. Background and authority for the subsidy 
 
 This tax relief has been provided for by Sec tion 7, paragraph (1), subparagraph f) of Act 
LXXXI of 1996 on the Corporate Tax and Dividend Tax. 
  
5. Form of the subsidy 
 
 This subsidy is in the form of deduction from the corporate tax base. 
 
6. To whom and how the subsidy is provided 
 
Profitable taxpayers making reserve for futu re investments can apply this tax relief. 
 
7. Subsidy per unit or the total amount 
  The tax relief is equal to the development reser ve made in the tax year, but may not be higher 
than 25 per cent of the pretax profit earned in th e tax year or 500 million HUF. Later, depreciation 
may not be applied on investments made from development reserve. 
 The amount of support  not yet available.  
 8. Duration of the subsidy 
 
 This tax relief was introduced in 2002. No exp licit time limit is attached to this subsidy. 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A.   G/SCM/N/123/EEC/Add.11 
 Page 229 
 
 
 5.10 Tax Concession Related to Development Projects 
 
1. Title of the subsidy programme 
 
 Tax concession related to development projects. 
 
2. Period covered by the notification 
 
 2004  3. Policy objective and/or purpose of the subsidy 
 
 The objective of this scheme is to  stimulate investment activities. 
 
4. Background and authority for the subsidy 
 
 This tax concession has been provided for by  Section 22/B. of Act LXXXI of 1996 on the 
Corporate Tax and Dividend Tax.  
5. Form of the subsidy 
  The subsidy is in the form of deduction from the corporate tax. 
 
6. To whom and how the subsidy is provided 
 
 The government grants tax concession to a ta xpayer whose development project entails an 
investment of at least 3 billion HUF or 1 billion HU F if the project (i) is started and operated in 
preferable regions, or (ii) is concerning basi c research, applied research and experimental 
development performed on premises managed by a r esearch institution founded by an institution of 
higher education or the Hungarian Academy of Sc iences. The tax concession can be applied in the 
four years following the first year in which the tax concession is used if  
(a)  the average work force em ployed exceeds the average number of persons employed during 
the year prior to the commencement of the pr oject by at least 100 workers - or 50 workers if 
the project is started and opera ted in preferable regions, or 
 (b)  if the taxpayer's annualized wage costs are at least 600 times greater than the amount of the 
minimum wage effective on the first day of the tax year as calculated for the tax year - or at 
least 300  times  greater if the project is launc hed and operated in preferable regions - as 
compared to the annualized wage costs of the year preceding the year in which the project 
commenced, or 
 (c)  from the trade debts of the taxpayer the direct  cost of the taxpayer's liabilities payable to small 
and medium sized enterprises exceeds 30 per cent. 
  The Ministry of Finance grants tax concession for  (a)  development projects with a value of at least 100 million HUF, if it constitutes the launch and 
operation of an independent envi ronmental protection or rehab ilitation project or a wideband 
Internet service or a food facility project or a motion picture and video production project, the 
value of previously unused assets must be at least 50 per cent; 
 (b)   projects serving to create new jobs.  G/SCM/N/123/EEC/Add.11 
Page 230  
 
  
 Tax concession for projects serving to create new jobs is granted if during the four years subsequent to the third tax year following the first year in which the tax allowance is used 
 (a)  at least 20 per cent of the total workfo rce hired for the new jobs created under the 
development programme are new entrants in the labour market, and  
 (b)   the average work force employed exceeds the average number of persons employed during 
the year prior to the commencement of the project  by at least 300 workers – or 150 workers if 
the project is started and opera ted in preferable regions.  
 
 From the value of the project entitling tax concession,   (a)  the value of previously unused assets must be at least 30 per cent;   
(b)  the value of improvements by renovation, refurbishing etc. must not exceed 20 per cent, 
unless the project is launched and operated in preferable regions. 
 
7. Subsidy per unit or the total amount 
 
 The support granted to a specific developmen t project may not be higher than the amount 
computed by the ratio stipulated in the legislati on from the total cost of the project.  In the case of 
applications for tax concession submitted before  31 December 2003, the tax concession may be 
claimed up to 100 per cent of the corporate income tax otherwise payable.  
 
 In the case of applications for tax con cession submitted after 31 December 2003, the tax 
concession may be claimed up to 80 per cent of th e corporate income tax otherwise payable.  
 The value of support  not yet available. 
 
 8. Duration of the subsidy 
  The taxpayer can take advantage of tax c oncession on a development programme begun after 
31 December 2002 and in five tax years.  
 
 In the case of applications for tax con cession submitted after 31 December 2003, the tax 
concession may be applied for ten years.  
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A.  
5.11 Tax Relief for Royalties 
 
1. Title of the subsidy programme 
 
 Tax relief for royalties.  2. Period covered by the notification 
 
 2004   G/SCM/N/123/EEC/Add.11 
 Page 231 
 
 
 3. Policy objective and/or purpose of the subsidy 
 
 The objective of this scheme is to help grow the Hungarian intellectual property and  
strengthen the R and D activity.  4. Background and authority for the subsidy 
 
 This tax relief has been provided for by Sec tion 7, paragraph (1), subparagraph s) of Act 
LXXXI of 1996 on the Corporate Tax and Dividend Tax.  5. Form of the subsidy 
 
 This subsidy is in the form of deduction from the corporate tax base. 
 
6. To whom and how the subsidy is provided 
 
 Profitable taxpayers receiving royalties in the tax year can apply this tax relief. 
 
7. Subsidy per unit or the total amount 
 
 The tax relief is equal to 50 per cent of the amount of royalties received in the tax year.  The 
amount of this tax relief may not exceed 50 per cent of the pretax profit. 
 The amount  not yet available.   
 
8. Duration of the subsidy 
 
 This tax relief was introduced in 2003. No exp licit time limit is attached to this subsidy. 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 
5.12 Tax Relief for Interest Incomes 
 
1. Title of the subsidy programme 
  Tax relief for interest incomes. 
 
2. Period covered by the notification  
 
 2004  3. Policy objective and/or purpose of the subsidy 
 
 The objective of this scheme is to reduce the tax avoidance within multinational groups. 
 
4. Background and authority for the subsidy 
 
 This tax relief has been provided for by S ection 7, paragraph (1), subparagraph k) and 
Section 8, paragraph (1), subparagraph k) of Ac t LXXXI of 1996 on the Corporate Tax and Dividend 
Tax.  G/SCM/N/123/EEC/Add.11 
Page 232  
 
 5. Form of the subsidy 
 
 This subsidy is in the form of deduction from the corporate tax base. 
 
6. To whom and how the subsidy is provided 
 
 Profitable business associations, cooperatives and non-resident entrepreneurs (except 
insurance companies, financial institutions, inv estment enterprises, venture capital companies and 
small enterprises) can apply this tax relief.  7. Subsidy per unit or the total amount 
 
 The tax relief is equal to 50 per cent of the positive difference of the interest received from 
affiliated companies and interest paid to affiliated companies.  The amount of this tax relief may not 
exceed 50 per cent of the pretax profit. 
 
 At the same time, 50 per cent of the negative difference (loss) of the interest received from affiliated companies and interest paid to affiliated companies must be added to the corporate income 
tax base. 
 The amount of aid  not yet available. 
 
8. Duration of the subsidy 
 
 This tax relief was introduced in 2003. No exp licit time limit is attached to this subsidy. 
 9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A.  
5.13 Tax Relief for Capital Market Profit 
 
1. Title of the subsidy programme 
 
 Tax relief for capital market profit.  
2. Period covered by the notification 
 
 2004  
3. Policy objective and/or purpose of the subsidy 
 
The objective of this scheme is to promote capital market transactions. 
 
4. Background and authority for the subsidy 
 
 This tax relief has been provided for by Sec tion 7, paragraph (1), subparagraph e) of Act 
LXXXI of 1996 on the Corporate Tax and Dividend Tax. 
 
5. Form of the subsidy 
 
 This subsidy is in the form of deduction from the corporate tax base. 
  G/SCM/N/123/EEC/Add.11 
 Page 233 
 
 
 6. To whom and how the subsidy is provided 
 
 Profitable business associations, cooperatives and non-resident entrepreneurs (except 
insurance companies, financial in stitutions, investment enterprises a nd venture capital companies) can 
apply this tax relief. 
 
7. Subsidy per unit or the total amount 
 
 The tax relief is equal to 50 per cent of the income from transactions made on a recognized 
capital market. The amount of this tax relief may not exceed 50 per cent of the pretax profit. 
 
The value of subsidy  not yet available.    
8. Duration of the subsidy 
  This tax relief was introduced in 2003. No exp licit time limit is attached to this subsidy. 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A.  5.14 Tax Relief for Local Business Tax  
 
1. Title of the subsidy programme 
 
 Tax relief for local business tax. 
 
2. Period covered by the notification  
 2004 
 
3. Policy objective and/or purpose of the subsidy 
 
 The objective of this scheme is to reduce local business tax burden.   4. Background and authority for the subsidy 
 
 This tax relief has been provided for by Sec tion 7, paragraph (1), subparagraph x)of Act 
LXXXI of 1996 on the Corporate Tax and Dividend Tax.   5. Form of the subsidy 
 
 This subsidy is in the form of deduction from the corporate tax base.  
 
6. To whom and how the subsidy is provided 
 
Profitable taxpayers paying local business tax a nd having no public debts of any kind.  
 
7. Subsidy per unit or the total amount 
 
 The tax relief is equal to 25 per cent of th e local business tax paid in the tax year.  The 
amount of this tax relief may not exceed the pre-tax profit.  
  G/SCM/N/123/EEC/Add.11 
Page 234  
 
 8. Duration of the subsidy 
 
 This tax relief was introduced in 2004. No explic it time limit is attached to this subsidy.   
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A.  
6. RESEARCH AND TECHNICAL INNOVATION FUND 
 
1. Title of the subsidy programme 
(a) Research and Technical Innovation Fund 
 
2. Period covered by the notification 
 2004 
 
3. Policy objective and/or purpose of the subsidy 
 
 The fund is intended to improve the comp etitiveness and innovation performance of the 
Hungarian economy by means of i. a.  
 
 -  setting up Regional University Knowledge-Centres;  -  supporting Hungarian participation in EU R&D programmes;  - strengthening the cooperation between pub lic research institutions, universities and the 
business sector (Cooperative Research Centres) ; 
 -  promoting agricultural R&D activity; 
 -  supporting the innovative techniques in the secondary and higher education, establishing 
a monitoring system following the scientific career of talented people; 
 -  developing the regional innovation system (25% of the resources of the fund should be 
spent for regional innovation purposes).  
 -  improving human resources for research and technological innovation, creating research 
and development jobs, promoting the trai ning of young researchers, encouraging the 
exchange of experiences with foreign institutions and professionals, etc. 
 
4. Background and authority for the subsidy 
Act XC of 2003 on Research and Technical Innovation Fund and Act CXXXIV of 2004 on 
Research, Development and Technical Innovation.  
5. Form of the subsidy 
 Grant   
6. To whom and how the subsidy is provided 
 Public and private research entities, enterp rises, non-profit organizations and common projects 
conducted by companies and public / university laboratories.  
  The support is awarded through tender procedures.  
 
7. Subsidy per unit or the total amount 
  
Payments under this programme amounted to 21,8 billion HUF. 
  G/SCM/N/123/EEC/Add.11 
 Page 235 
 
 
 8. Duration of the subsidy 
 
No explicit time limit is attached to the programme.   
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N.A. 
 
7. BUDGETARY SCHEME EARMARKED FOR ECONOMIC DEVELOPMENT 
 
1. Title of the subsidy programme 
 
 Budgetary scheme earmarke d for economic development 
 
2. Period covered by the notification  
  2004 
 
3. Policy objective and/or purpose of the subsidy 
 
 The scheme is designed to assist the realisation of national economic and trade policy objectives in compliance with Hungary's obligations  under EU law and international agreements by 
promoting i.a. 
 
 -  restructuring of the Hungarian economy;  -  foreign direct investment in Hungary; 
 -  realisation of industrial parks and innovation centres; 
 -  job creation;  -  establishment of quality assurance and certification systems necessary for the 
introduction of products into foreign markets; 
 -  regional development;  -  missions of business people to Hungary and abroad; 
 -  organisation of internatio nal exhibitions, fairs and expert s’ meetings in Hungary and 
abroad; 
 -  participation in international aid programmes;  -  information and PR activities bringing about trade development;  -  development of subcontractors’  network, in particular SMEs; 
 -  financement of  measures to protect consumers. 
 -  development of human resources.  
4. Background and authority for the subsidy 
 
 Act on state budget, Decree 1/2001 (I. 5.) of th e Minister of Economic Affaires, Decree 
7/2001. (IV.5.) of the Minister of Foreign Affaires.  
 
5. Form of the subsidy 
 
 The subsidy can be provided for in the form of  grant, reimbursable grant and interest rate 
support.  
 G/SCM/N/123/EEC/Add.11 
Page 236  
 
 6. To whom and how the subsidy is provided 
 
 Domestic legal persons, economic corpora tions without legal personality, self-employed 
persons, cooperatives, professional as sociations, Chamber of Trade a nd Industry, natural persons of 
Hungarian citizenship, public benefit companies, local governments. 
  
All kinds of subsidy are awarded through tender procedures.   
 The upper limit of support is specified in the call for tender.  At least 25 per cent of the project cost should be financed from own source.  
 
7. Subsidy per unit or the total amount 
 
The total amount accounted for 15,3 billion HUF.   
 
8. Duration of the subsidy  
 Indefinite.  
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 
8. MINING CONVERSION PROGRAMME 
 1. Title of the subsidy programme 
  Mining conversion programme 
 
2. Period covered by the notification 
 
 2004  
3. Policy objective and/or purpose of the subsidy 
 
 The assistance is intended to address major social problems stemming from structural 
adjustment in the sector and the need of ensuri ng progressive and orderly reduction of mining.  
 
 Aid is granted by the government to specific mining companies on the basis of either the Act 
on State Budget or within its own discretionary power.   
4. Background and authority for the subsidy 
 
Annual state budget, Decree 251/2003 (XII.23.) Korm. of the Government.  
 
5. Form of the subsidy 
 
Grant.   
6. To whom and how the subsidy is provided 
 
 Coal mining companies. 
  G/SCM/N/123/EEC/Add.11 
 Page 237 
 
 
 7. Subsidy per unit or the total amount 
 
The support accounted for 2,1 billion HUF. 
 
8. Duration of the subsidy 
  No explicit time limit is attached to this programme.  
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 N.A. 
 
9. CENTRAL ENVIRONMENT PROTECTION FUND  
 
1. Title of the subsidy programme 
 
 Central environment protection fund  
 
2.  Period covered by the notification  
2004 
 3.  Policy objective and / or purpose of the subsidy  
 
 The central environment protection fund is d esigned to help achieve an environment-friendly 
economic structure, prevent environmental nui sances, reduce and alleviate damages to the 
environment. 
  Developments directly related to the pr otection of the environment include i.a.: 
  
- protection of air purity; 
- protection of waters; 
- limitation of harmful effects of waste, waste management; 
- noise and vibration abatement; 
- protection and utilisation of natural reserves; 
- preservation of bio-diversity; 
- preservation of ancient Hungarian species of  animals such as “szürke marha” (grey 
cattle), “mangalica” (mangalica pig), “pu li”, “komondor,” “kuvasz”, “magyar agár” 
dogs, etc.  
- landscape management; 
- establishment of monitoring networks and information systems, etc.  
 
4.  Background and authority for the subsidy 
  Act LXXXIII of 1992 on the Segregated St ate Funds, Decree 3/2004 (II.24. ) KvVM on the 
Rules Managing the Central Environment and Water Protection Fund.  
 
5. Form of the subsidy 
   Support may be provided in the form of  
 
- grant,  
- repayable contribution free of interest or at preferential rates,  G/SCM/N/123/EEC/Add.11 
Page 238  
 
 - credit guarantee.   
 
6. To whom and how the subsidy is provided  
 Domestic legal persons, domestic organisa tions without legal personality, self-employed 
persons, natural persons of  Hungarian citizenship.  
 
 The subsidies are awarded through tender pr ocedures.  They are one-time, non-recurrent 
subsidies and may not be gran ted for operational purposes.  
 
Subsidy per unit or the total amount 
 
 The total amount accounted for 35,7 billion HUF.   
Duration of the subsidy
 
 
No explicit time limit is attached to the programme.  
Statistical data permitting an assessment of the trade effects of the subsidy
 
 
N.A. 
 10. BUDGETARY SCHEME EARMARKED FOR THE DEVELOPMENT OF SMALL 
AND MEDIUM SIZED ENTERPRISES 
 
1. Title of the subsidy programme  
 
Budgetary scheme earmarked for the developmen t of small and medium sized enterprises. 
 
2.  Period covered by the notification  
 2004 
 3.  Policy objective and / or purpose of the subsidy   
The scheme is designed to help SMEs overco me disadvantages inherent in their size. 
 
4. Background and authority for the subsidy 
 
 The subsidy is provided for by  the Act XXXIV of 2004  on the Small and Medium Sized 
Enterprises and on the Support of their Developmen t, the acts on annual state budgets and the Decree 
1/2001. (I.5.) of the Minister for Economic Affairs.  
 
5. Form of the subsidy 
 
 The support can be provided for in the form of  grant, interest rate support, preferential 
guarantee fee, interest free loan, loan with preferen tial interest rate, participation in venture capital 
funds.   G/SCM/N/123/EEC/Add.11 
 Page 239 
 
 
 6. To whom and how the subsidy is provided 
 
 All kinds of subsidy are awarded through tender procedures.  
 Support may be granted for programmes whose purpose is i.a.  
 
- to establish conditions for start up,  
- to attain entrepreneurial know ledge, to get acquainted with  the law of the European 
Union, to develop entrepreneurial culture and managerial qualities,  
- to improve competitiveness through technological development,  
- to enlarge subcontractors network,  
- to explore market possibilities,  
- to promote cooperation among SMEs in  production, selling and purchase,  
- to participate in EU programmes,  
 
 The subsidy may not be in excess of 50 per cen t of the programme's total costs except for 
depressed counties where the ceiling is 65 per cent.    In the case of so called incubator houses th e upper limit is 75 per cent except for depressed 
counties where the ceiling may be increased by 10 per cent.  
 
7. Subsidy per unit or the total amount 
 
 4,3 billion HUF. 
 
8. Duration of the subsidy  
 
No explicit time limit is attached to this programme .  
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N.A. 
 
__________