This information material has been prepared in Hungarian and English, English translation is for information purposes only. In the event of discrepancies between English and Hungarian version, the Hungarian version shall prevail.

Hungarian Export-Import Bank Private Limited Company (“Eximbank”), based on the relevant Hungarian and international statutory regulations, provides medium and long-term credit with budgetary interest support (interest equalisation), while the Hungarian Export Credit Insurance Private Limited Company (“MEHIB”) provides export credit insurance, backed by a payment guarantee from the central budget, to cover non-marketable risks.

In accordance with the statutory regulations related to these two institutions (collectively known as “EXIM”) – specifically, Government Decree 85/1998 (V. 6.) (the “Eximbank decree”) and Government Decree 312/2001. (XII.28.) (the “MEHIB decree”) – a condition for use of the above-mentioned interest subsidy and the export credit insurance provided against the central budget is that the exported goods or service should have a certain degree of Hungarian content.

A. EXPORT OF GOODS

In the case of goods export, the regulations stipulate that at least a half of the content of the delivered goods should be of Hungarian origin.

The Exporter must obtain a certificate of origin proving the Hungarian content of the delivered goods from the competent territorial body of the chamber authorised to issue it (Hungarian Chamber of Commerce and Industry – MKIK, National Chamber of Agriculture – NAK) and submit it to Eximbank, and in the case of refinancing, to the financing financial institution, or in the case of insurance, to MEHIB (in the manner prescribed in the insurance contract).

If the business entity conducting foreign trade activity exports goods to the same customer under the foreign trade contract in respect of goods of the same name, customs tariff number and place of origin more than once, in order to prove the Hungarian origin of the goods it is sufficient to obtain a certificate of origin complete with a special clause issued by the competent chamber after the performance of the first export of the goods and send it to Eximbank, and in the case of refinancing, to the financing financial institution, or in the case of insurance, to MEHIB.

If a change occurs in the designation, customs tariff number or place of origin of the goods described in the certificate of origin complete with a clause or in the person of the buyer (customer), the business entity conducting foreign trade activity must obtain a new certificate of origin from the competent chamber for its first export after the change, and must submit it to Eximbank, and in the case of refinancing, to the financing financial institution, or in the case of insurance, to MEHIB

• Contact details of the Hungarian Chamber of Commerce and Industry (MKIK) by region
• Contact details of the Hungarian Chamber of Agriculture (NAK)

NAK is responsible for products subject to the European Union’s common agricultural policy (CAP), while MKIK is responsible for all other (non-CAP) products.

• List of products covered by the CAP (Annex 1 to the Treaty on the Functioning of the European Union)

The rules of origin applied by the chamber body authorised to issue the certificate of origin, available on the website of the authorised chamber body, and the provisions of the chamber procedure with respect to the issuing of the certificate of origin, must be applied to establish and certify the Hungarian origin of the goods.

• Information issued by MKIK on the authentication and completion of the certificate of origin
• Information issued by NAK on the authentication and completion of the certificate of origin

B. EXPORT OF SERVICES

Compliance with this condition must be substantiated by the Exporter with a certificate issued by the body responsible for registering the insured relationship. Accordingly, in the case of service exports, the verification of the conformity of Hungarian origin is carried out by EXIM on the basis of the EP certificate on the number of insured persons issued by the health insurance administrative body of the territorially competent government office, based on the examination of the insurance status of the staff employed.

In the case of service exports, more than half of the persons employed by the Exporter (or its domestic subcontractor involved in the provision of services) under the rules of the Act on Social Security Benefits and Private Pensions and the Coverage of these Services and on the Small Business Tax must be in a legal relationship with it that involves an insurance obligation.

The submission of the certificate of origin and the fulfilment of the required Hungarian share of origin is a precondition for the disbursement of the loan, the provision of the export credit guarantee and the discounting of receivables, and in the case of insurance, it is a condition of eligibility for such insurance. If an insurance event occurs in relation to which a claim for damages is filed, the insured party shall be obliged to make available to MEHIB an original copy of the certificate of origin. During the claims assessment process following the submission of the claim for damages, MEHIB verifies that the requirement regarding the Hungarian share of origin has been met.

• Application to be submitted to the government office for a Health Insurance Fund certificate
• Regional contact details of government offices

The certificate issued to the insured employees of the business entity providing the service can also be requested electronically through a customer gateway. The electronic form for the certificate is submitted to the National Health Insurance Fund Manager (NEAK, formerly: National Health Insurance Fund, OEP).

• Guide on the electronic application for a certificate issued in respect of the number of insured employees, to be submitted in the case of Eximbank products

C. CONSTRUCTION AND ASSEMBLY CONTRACTS

At least a quarter of the value of the foreign trade contract for construction, assembly, technology-installation and planning services, and for services directly related thereto, less any financing costs, must be classed as an export of Hungarian origin, and the certificate of Hungarian origin with regard to this is issued by the head office of the Hungarian Chamber of Commerce and Industry.

• MKIK’s guide on the procedure for the issuance of certificates on the Hungarian share of origin
• Declaration to be submitted to the MKIK on the Hungarian content of main contractor’s invoices
• Contact details of the MKIK’s head office

For the details, please consult the Guide for Customers on the procedure for certifying the Hungarian content of goods and services carefully, including Annex 1 of that guide that addresses the regulatory framework with regard to the share of foreign origin.