Metal trading activities requiring permission
In Hungary metal trading authorization is required for cases when the acquisition, sale, storage, warehousing, delivery, transport and utilization happens exclusively on the territory of Hungary, including those activities performed by foreign companies with their seat being outside of Hungary.
Determination of substances subject to metal trade authorization
Hungarian metal trade law describes materials, waste or scrap alloy that are subject to authorization.
The law specified metals: aluminum, zinc, nickel, lead, tin, copper, iron, antimony, bismut, zirconium, cadmium, cobalt, chromium, magnesium, manganese, molybdenum, tantalum, titanium, vanadium, tungsten.
Metal trading activities free of authorization
- trading your own authorized metal substances;
- repossession or redemption in order to re-use, recover or perform environmentally sound disposal of other products or groups of products specified by law;
- purchase of authorized metal materials by the person carrying out the construction or demolition of buildings activities (can only happen in case of metal resale);
- activities under public service waste management utilities contracts;
- by metal dealer does not qualify a person
a) if the person is the owner;
b) if the material is acquired from metal dealer;
c) purchasing metal dealer does not qualify as a person, as defined in the Law on the utilization of waste according to by-product of metal material requiring commercial license, if the resulting material is not considered commercial metal substances subject to authorization.
Financial security deposit
The metal trading permit is a precondition for safeguarding the activity, which amounts to 5 million HUF per site (maximum 25 million HUF in multi-site cases). For the activities that do not involve sites, the activity can be conducted with the guarantee of 10 million HUF. The deposit shall be reduced int he future.
The financial security deposit can be in the form of cash, financial guarantees or insurance.
Registration and reporting obligations
1. NAV (National Tax and Customs Administration of Hungary)
Metal Trade Act imposes strict record keeping and reporting requirements on traders of metals and those metal traders who, in some cases, do not qualify for business.
The metal dealer should submit his data records electronically in daily and monthly reports.
In case of metal cross-border commercial activities trader registration and monthly reporting is not an obligation, but it is required to provide metal trading license with all the data on the sale of material the following business day after the sale / reception has taken place.
Foreign utilization: Unless otherwise provided, there are no registration or reporting obligations.
Computerized form of communication: via the Client Gate submission published by the authority on metals trading, filled out the forms of ÁNYK system.
2. Environment
Metal traders have more registration and information obligations on metal trade towards the environmental authority, which is due quarterly and/or annually and must comply with environmental rules.
Environmental permits for trade in scrap metal
The metal must have environmental permit for carrying out commercial activities (waste transport, waste collection, commercial waste pre-treatment), which is a prerequisite for obtaining a trading license applications of metal.
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