CUSTOMER INFORMATION ON THE PROCEDURE OF CERTIFICATION OF HUNGARIAN
ORIGIN ANNEX 1
LEGISLATIVE FRAMEWORK APPLICABLE TO THE SHARE OF HUNGARIAN ORIGIN
AND SHARE OF FOREIGN ORIGIN
The Magyar Export-Import Bank Plc. (hereinafter: “Eximbank”), in accordance with the Hungarian and
international statutory regulations (in particular the OECD Arrangement on Officially Supported Export
Credits (TAD/PG(2011)4; hereinafter: “OECD Arrangement”), provides medium and long-term loans
with budgetary interest support (interest equalisation), while the Hungarian Export Credit Insurance Plc.
(hereinafter “MEHIB”) provides export credit insurance, with a budgetary payment guarantee, to cover
non-marketable risks.
1.
Legislative background to the regulation of the share of Hungarian origin and foreign
content
Eximbank and MEHIB regard the following regulations as pertaining to the foreign and Hungarian
content of export transactions:
 the OECD arrangement,
 Government Decree 85/1998. (V.6.) on the interest equalisation system of the Hungarian ExportImport Bank and Government Decree 435/2012. (XII. 29.) on the guarantees assumed by the
Hungarian Export-Import Bank Plc., with a state payment guarantee and on the conditions and
detailed regulations of the replacement and interest costs of foreign currency and interest swap
transactions (hereinafter together: “Exim Government Decree”),
 Government Decree 312/2001. (XII. 28.) on the terms of the insurance of non-marketable risks by
the Hungarian Export Credit Insurance Plc. with a government payment guarantee provided from
the central budget (hereinafter: “MEHIB Government Decree”).
2.
Main requirements relating to the Hungarian content
The requirements relating to the minimum proportion of the Hungarian content are regulated by the
Exim Government Decree and the MEHIB Government Decree, as follows:
a. Pursuant to the Exim Government Decree, any export of goods is eligible for financing by Eximbank
and pursuant to the MEHIB Government Decree a condition of any MEHIB exposure relating to the
export of goods is that at least half of the goods delivered in the framework of an export deal
performed by a domestic business association is of Hungarian origin. With respect to determining and
certifying the Hungarian origin of goods, the provisions of Commission Regulation (EEC)
No.2454/93/of 2 July 1993, laying down the provisions for the implementation of Council Regulation
(EEC) No. 2913/92 establishing the Community Customs Code, the provisions of Article 19 of Act
CXXVI of 2003 on the implementation of Community customs law, the provisions of the Ministerial
Decree on the detailed rules of implementation of the Community customs law must be applied with
the proviso that the business association engaged in foreign trade activity is required to obtain the
certificate of origin from the chamber office, authorised to issue it (Hungarian Chamber of Commerce
and Industry, and in relation to agricultural goods the National Chamber of Agriculture) and to submit
it to Eximbank, to the financing credit institution in the case of refinancing and to MEHIB in the case
of insurance.
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b. The Hungarian content of the service is determined by Eximbank and/or MEHIB pursuant to the
provisions of the effective decrees (Section 7 (2) of the MEHIB Government Decree, Section 6 (2) of
the Interest Equalisation Decree and Section 4 (2) of the Guarantee Decree. More than 50% of the
employees of the resident business association providing the service, or its subcontractor, classified as
a resident business association, involved in the provision of the exported service, must be individuals
who are in a relationship involving insurance obligations towards them pursuant to the Act on Social
Security Services, eligibility for private pension and the funding of those services and the Act on the
Detailed Tax of Small Taxpayer Enterprises and on Small Corporate Tax.
c. At least one quarter (25%) of the value of the Exporter’s contracts for construction, installation,
technological installation, design and related services, provided by the resident business association,
must qualify as export of Hungarian origin, in relation to which a certificate of origin is issued by the
Hungarian Chamber of Commerce and Industry in a procedure, approved by Eximbank and MEHIB.
d. In relation to supplier loans and the insurance of receivables arising from them, the supplier must
submit the certificate of origin, certifying the origin of the goods, obtained from the chamber office,
authorised to issue it, to Eximbank and MEHIB and must also attach a declaration of the exporter
stating that the exporter exports the goods delivered by the supplier or some other goods, produced by
using those goods. If there is no such exporter’s declaration, the supplier’s certificate may also be
accepted if it states that the goods supplied or the service provided by it is required for enabling the
Exporter to fulfil its obligations stated in a contract for the export of Hungarian goods or services,
produced by using such goods or services.
3.
Main requirements relating to foreign content
Pursuant to Section 2 (1) e) of the MEHIB Government Decree, the foreign content is defined as the products
or services supplied or provided by a supplier/subcontractor with the registered seat abroad for the
fulfilment of an export oriented foreign trade contract or general contractor’s agreement.
Accordingly, the foreign content includes the local costs, as well as the deliveries and subcontractor
performances.
a.
Rules pertaining to local costs
For the purpose of applying the conditions relating to local costs, as set forth in the OECD Arrangement,
local costs are defined as expenses, related to the purchase of goods and services, that
 arise in the buyer’s country and are related to the execution of the export transaction,
 are necessary for completing the project, of which the export transaction forms a part.
The local costs do not include the commission payable to the exporter’s agent in the buyer’s country
(agent commission).
In addition to local costs, the OECD arrangement also defines the concept of export contract value,
which is the total amount to be paid by the buyer to the exporter for goods and services constituting the
object of the foreign trade contract, not including the local costs.
Pursuant to Article 10 d) of the OECD Arrangement, supported export loan and export loan related to it
can be insured up to 30% of the export contract value in relation to local costs.
The cost of export financing and the export credit insurance may not be regarded as part of the Hungarian
origin.
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