Exporting from Hungary within the EU

Question posted by Adam Fletcher, on behalf of Dunster House Ltd. in MK41

We currently buy a number of products from a factory in Hungary for sale in the UK. But we would like to purchase certain products from the factory in Hungary and then sell them in Europe.

We would like to know what regulations we would need to adhere to and what documents we would need to export within the EU. At the moment we are looking in particular in moving goods from Hungary to Romania.

Would anyone be able to advise us or point us in the right direction for information about this?

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Toni Saraiva, on behalf of EISC Ltd in SO14.

Hi Adam

Well the great thing about the EU is that exports do not exists (you export when the goods go from the EU from outside of the EU).

When you move products inside Europe around Europe, then if you are able to sell them in one country in theory you should be able to sell them in any of the other EU Member states without any extra burden (free movement of goods idea).

That said there could be slight differences depending on the product you offer. What kind of product are you selling? If it is health related there might be local requirements.

Does the product carry a CE mark? If yes then, the various EU countries will accept it.

This is a very general answer and if you have some specifics you might be able to get a better answer from here.

I hope it helps

T

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Mike Hunter, on behalf of betterlanguages.com Ltd. in Nottingham.

Hi Adam, you don't say what products are involved, but you may well need labels and packaging, product manuals etc to be translated into Romanian. For example we work a lot with food packaging, and all countries within the UK will have legal information such as ingrediants lists, warnings etc to be in the language or languages of the country exported to. This is best practive anyway from a marketing point of view. Have you ever bought a product and found the instructions not to be in English, it's incredibly annoying to a customer. With regards to the specifics of export documentation, many chambers of commerce offer an export documentation service. This tends to be tailored to exports from the UK, but they may well be a good first source of information re exporting from Hungary to Romania. UKTI may also be able to help, as they have sector specialist trade officers in embassies and consulates around the world. Many are locally employed staff, so in Hungary, may well be able to signpost you on where to go for help.

Hope this is useful.

Kindest regards

Mike Hunter

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Toni Saraiva, on behalf of EISC Ltd in SO14.

Good point on labels especially for Food products

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Christopher Willers, on behalf of Access to Export Ltd in CB21.

Hello Adam

My name is Chris Willers and I run an export services company called Access to Export Ltd based near Cambridge.
In addition to the points mentioned by Toni and Mike another major consideration is the treatment of VAT. Without knowing the details of your products and whether you are selling direct to consumers or businesses it is difficult to give detailed advice. Assuming you are a VAT registered UK company you would be able to zero rate supplies to customers in other EU countries providing they are registered for VAT in their domestic country and they provide you with their VAT number which should be shown on your sales invoices. If you do not have the customer's VAT number you should charge UK VAT at the prevailing rate. You will need to account for sales to other EU countries on your VAT return and EC Sales List and you will need to file Intrastat returns once you reach the threshold in terms of value of sales.
Some other important factors to consider will be the cost of transportation to other EU destinations and the use of the correct terms of sale (Incoterms) to ensure responsibilities in each transaction are clearly defined and understood.
I hope this is of some help but if you can provide more details I am happy to help further. If you would like to contact me directly please feel free to do so either by phone 01223 890767 or e-mail chris@accesstoexport.com.

Kind regards
Chris

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Andrea Laszlo, on behalf of Yingke Law Firm in China.

When you export from Hungary you don’t usually need to complete a customs declaration for goods sold within the EU.
The EU principle of free circulation allows for goods produced in the EU to be moved around the EU without paying duty.
Dispatches within the EU between VAT-registered businesses are not subject to VAT. This also applies to goods imported into the EU that have been released for free circulation following payment of import duties. However, when you dispatch goods to someone in another EU country, who is not registered for VAT in that country, you should normally charge VAT.
Every business trading within the EU has to declare its sales goods on its VAT return. If your sales exceed the exemption threshold during a year you must also submit Intrastat (IS) returns each month. The declarations are known as Supplementary Declarations (SDs). IS thresholds are reviewed annually. The thresholds are £600,000 for Arrivals and £250,000 for Dispatches. The requirement to submit IS Declarations is only applicable to VAT-registered traders.
Customs declarations are not generally required for goods in free circulation within the EU, but traders must remember to raise VAT invoices showing the VAT Registration number of their customers and obtain evidence of shipment.
Every VAT-registered business trading goods with other EU member states is obliged to declare certain information. The amount of information required depends on the value of their purchases or imports or sales or exports.
Please note that the above answer should only be regarded as an informative material and no responsibility is taken with regard to its validity or applicability to your particular problem, as we are not aware of your situation in details.
Should you have further questions, please do not hesitate to contact me through andrea@yingkelawyer.com and I will connect you with my colleagues in our Budapest office.
Kind regards,
Andrea

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