I. Foreign Trade
The Ministry of Foreign Affairs and Trade is responsible for foreign trade in Hungary. The trade policies, laws and regulations of Hungary are generally in line with that of the EU, and major trade-related laws and regulations include: Government Decree No.52/2012(III.28) on the Cross-tariff or Cross-border Trade in Goods, Services and Rights Representing Material Value, Act XCIII of 2001 on Foreign Exchange Liberalization and Related Amendments, Act XIII of 2016 on the Implementation of the Union Customs Code and Act XIX of 2004 on the Hungarian Customs and Finance Guard.
II. Customs Management
The National Tax and Customs Administration of Hungary is responsible for the country’s customs affairs. As a EU member, Hungary implements the Union Customs Code, including the Common Customs Tariff, customs statistical system, EU customs tariff rate, and customs duty relief scheme. Goods that have entered into any EU member state shall not be subject to Hungarian tariff.
III. Market Access for Foreign Investment
The Ministry of Foreign Affairs and Trade is in charge of Hungary’s foreign investment, under which the Hungarian Investment Promotion Agency is responsible for investment promotion and implementation of project preferential policies.
Act XXIV of 1988 on Foreign Investment provides legal protection of the rights and interests of domestic and foreign investors. Investment enterprises at home and abroad are subject to unified laws and regulations, and foreign enterprises and other economic organizations or individuals may engage in a majority of economic activities to the extent permitted by law.
Hungary has a sound legal system, in which major laws relating to investment and cooperation include: the Foreign Investment Act, the Business Associations Act, the Registration Act, the Capital Market Act, the Securities Trade Act, the Labor Code and the Anti-discrimination Law.
IV. International Project Contracting
Hungary has no separated laws and regulations on foreign companies contracting local projects, and foreign contractors are treated equally to Hungarian counterparts. Foreign enterprises that have registered local entities and meet the local requirements of project contracting may engage in engineering project bidding and contract projects. The designing, construction, utilization and environmental protection of engineering projects require permit issued by the local government.
Hungary has no special restrictions on the market entry of foreign architecture companies.
Projects of the Hungarian government are contracted through international competitive bidding, yet requirements on the qualification of bidders vary from project to project. Eligible foreign enterprises can participate in biddings. Private projects will be contracted through various processes such as international competitive bidding and negotiated bidding in Hungary.