The Hungarian Ministry of Finance has drafted a new customs duty law which, if passed by the Parliament, would become effective from 1 March 1996.
The current Hungarian customs duty regulations are based on a 1976 Law Decree which has been amended several times since its introduction.
The proposed law is in line with EU legislation and adopts GATT regulations concerning such items as customs valuation methodology.
One of the more important features of the proposed law is that it will terminate the current customs duty concession available to Hungarian companies in relation to:
a) Contributions-in-kind of plant and equipment to equity capital by the foreign shareholder(s); and
b) Imports by the Hungarian company from hard currency equity capital contributed by the foreign shareholder(s).
