Extending the range of products subject to EKAER registration obligation

On the basis of Government Decree 403/2021 (8 July 2021), the scope of risky products subject to registration in the EKAER system was extended from 9 July 2021. The newly registration-obliged products are mainly raw materials used in the construction industry (gravel, cement, wood products, iron or steel articles, wires, pipes)  

This means that it may also be necessary to request an EKAER number for companies that, due to their product range, were no longer required to register for EKAER from 1 January 2021!  

To establish the registration obligation, the limits for risky products should be examined, i.e. 500 kg and HUF 1 Million. If either of these limits is exceeded by the first domestic sale of goods or by the first intra-Community purchase, intra-Community sale or import, export for other purposes, an EKAER number must be requested.  

The list of construction raw materials and products that are subject to EKAER registration is given in the following table.  Products listed in the table are not subject to the requirement to provide risk guarantee! 

Rules on export of strategic raw materials and products

According to Government Decree 402/2021 (July 8, 2021), raw materials and products of strategic importance for the security of supply in the construction industry can only be sold or exported from Hungary to foreign countries after registration with the Minister of the Interior (Ministry of Innovation and Technology) and confirmation of the acknowledgement of the notification. Examples of such products are gravel, pebbles, crushed stone, typically used for road construction, as well as cement, cinder, flat-rolled and hot-rolled products of iron and non-alloy steel.  

The registration obligation applies to deliveries after the 5th working day following the Government Decree's entry into force, i.e. after 16 July.

The registration must be made by the seller or the party intending to export the construction material abroad before the export of the material abroad, using the form published on the Authority's website, also taking into account the Authority's procedural deadline of 10 working days. 

The notification shall be accompanied by a copy, in connection with the export of the construction material, of

(a) the contract or the accepted offer for the sale and - if available - the invoice or

(b) contract for delivery or other document proving delivery abroad.

It is sufficient to attach a copy of the documents to the registration, but in the case of documents issued in a language other than Hungarian, a certified Hungarian translation must also be attached.

The Minister shall confirm the acknowledgement of the registration in writing within 10 working days of receipt of the registration at the latest. Please note that delivery is only possible upon receipt of this confirmation.

However, if, after registration, the Minister responsible for the supervision of state property considers that the foreign sale of construction material significantly hinders or makes impossible the construction of critical infrastructure, endangers public supply or threatens the security of supply of the construction industry, the Hungarian State has pre-emption right in respect of construction materials intended to be sold abroad, and a right of purchase in respect of construction materials intended to be exported abroad, if they are to be delivered to the registrant's own premises abroad for its own use.

The minister's confirmation is checked at the border by police and customs authority. If the seller or deliverer of construction materials does not comply with the rules, the construction materials will be impounded and a fine equal to the invoiced value of the materials, but not exceeding HUF 5 million, will be imposed.

Special tax on mining companies

The Government Decree 404/2021 (8 July 2021) on the additional mining fee introduced to restart the economy was also recently published in the Hungarian Gazette, and has also been in force since 9 July.

The liability pay the additional mining fee is imposed on those who are liable to pay the mining fee pursuant to Article 20 (2) (a) and (b) of the Mining Act and whose main activity is:

• quarrying of stone, gypsum and chalk (TEÁOR 0811),  

• mining of gravel, sand and clay (TEÁOR 0812),  
• manufacture of cement (TEÁOR 2351), and  
• manufacture of lime and plaster (TEÁOR 2352 )

A further condition is that the company's net turnover in 2019 - not including affiliated companies under the Act on Corporate Tax and Dividend Tax - must have reached or exceeded HUF 3 billion.

Companies that meet all the above conditions must pay an additional mining fee of 90 % of the difference between the actual turnover and the turnover determined on the basis of the quantity sold and the price set by the Regulation, for sales of the following products, made in excess of the prices listed below, excluding VAT. The product groups and their prices above which the special tax applies:

The additional mining fee must be paid monthly in HUF, by the 15th day of the month following the month concerned, to the account number 10032000-01031513-00000000 "Payment of mining fee" maintained with the Hungarian State Treasury, indicating the title of the additional mining fee and the relevant period in the transfer notice.  

The additional mining fee paid may be accounted for as an expense.  

The form for the self-declaration of the additional mining fee is published on the website of the Hungarian Mining and Geological Survey

If the seller is not obliged to pay an additional mining fee, the seller should apply a fair profit margin, taking into account the HUF/tonne values above.

If the seller uses a pricing scheme aimed at obtaining an unfair profit, the tax authority may initiate tax proceedings against them.