Implementation of international sanctions

The export of items subject to international trade restrictions (sanctions) requires export license under the terms of para. 26. of Government Decree No 13/2011 (II. 22.). The Department of Trade, Defence Industry, Export Control and Precious Metal Assay, Export Control Unit  of the Government Office of the Capital City Budapest is the competent authority for issuing authorisations. An Individual Export Licence is to issue for the export of items subject to international trade restrictions with expiry of 6 months. The e-application form (MKEH009), please find on our website „e-nyomtatványok”.

The Authority may refuse the application, if

1.  the export of the items is prohibited by international sanctions;

2.  az Exporer or the partners violates the legal rules concerning the foreign trade of dual-use items or hurts the international  non-proliferation obligations;

3.  the Exporter's activity violates the foreign and security policy interests of Hungary or threatens its national security interests;

4. the Exporter fails to meet any condition relating to the authorisation or provides false data

 The trade restrictions, measures adopted by the European Union are available on the EUR-lex web site.

You find all the sanctions lifted by EU on the following webside: www.sactionsmap.eu

Our clients may apply to the Authority for information/statement about the trade restrictions in force. In your inquiry please, submit the description of the item, the control list-number (ECCN) of the items (if applicable), the TARIC code, the quantity and the value of the items, the end-use, the name and address of the end-user and consignee, and other particulars and data which are relevant to the transaction and necessary for its licensing assessment. Please, send your inquiry to the exportcontrol--.at.--bfkh.gov.hu.

Please note, that the competent authority responsible for financial sanctions is the Hungarian Anti-money laundering and Financial Intelligence Unit, National Tax and Customs Administration (42. Huszti street. Budapest, HU-1033, fiu--.at.--nav.gov.hu; phone: +36 1 430-9466)

Iran

The measures against Iran lifted by the EU contain the Council Decision 2010/413/CFSP (military goods), the 267/2012/EU Council Reg. (non-proliferation) and the 359/2011/EU Council Reg. (human rights). The sanctions concern:

• military equipments and related technical assistance, brokering services and financial assistance; 

• nuclear and nuclear dual-use items (Annex I.) and related technical assistance, brokering services and financial assistance;

• certain dual-use items (Annex II.)  that could contribute to reprocessing- or enrichment- related or heavy water- related or other activities inconsistent with JCPOA and related technical assistance, brokering services and financing;

• dual-use items listed in Annex III. (prohibition), that could contribute to the development of nuclear weapon delivery system and related technical assistance, brokering service and financing assistance;

• enterprise resource planning software, designed specially for use in nuclear and military industries ( Annex VII.A) and related technical assistance, brokering services and financing.;

•  graphite and raw, fabricated semi-finished metals of Annex VII.B (corrosion resistant steel; aluminium and alloys, titanium and alloys, nickel and alloys) and relates technical assistance, brokering services, and financing;

• financial and other restrictions on persons and organizations listed in Annex VIII. and IX.;

• persons responsible for directing or implementing grave human rights violations (Annex I. of EU Council Reg.359/2011);

• equipment wich may be used for internal repression (Annex III. of EU Council Reg.359/2011) and related technical assistance, borkering service and financial assistance;

• equipments that may be used to monitor or intercept the internet and telephone communications (Annex IV.of EU Council Reg.359/2011) and related technical assistance, brokering services and financing.

Please, add End User Certificate defined in Annex IIA of  EU Council Reg. 267/2012 to your application.

European Union restrictive measures against Iran.

Iran/US

As the first batch of re-imposed US sanctions on Iran takes effect, the EU's updated Blocking Statute enters into force on 7 August 2018 to mitigate their impact on the interests of EU companies doing legitimate businessin Iran. The updated Blocking Statute (Council Reg. 2271/96/EC consolidated) is part of the European Union's support for the continued full and effective implementation of the Joint Comprehensive Plan of Action (JCPOA) – the Iran nuclear deal, including by sustaining trade and economic relations between the EU and Iran, which were normalised when nuclear-related sanctions were lifted as a result of the JCPOA. The Blocking Statute allows EU operators to recover damages arising from US extraterritorial sanctions from the persons causing them and nullifies the effect in the EU of any foreign court rulings based on them. It also forbids EU persons from complying with those sanctions, unless exceptionally authorised to do so by the Commission in case non-compliance seriously damages their interests or the interests of the Union. More…

Russia

Restrictive measures in view of Russia’s actions destabilising the situation in Ukraine are included in the EU Council Decision 2014/512/CFSP(military godds) and the EU Council Reg. 833/2014. The sanctional measures concern:

• military goods and technology, related technical assistance, brokering services and financing;

• dual-use items and related technical assistance, brokering service, and financial assistance in case of military end use.

• items of Annex II. related oil exploration and production and technical aaasitance, brokering services and financing thereof; prohibiton shall occur in case of the following categories of projects:(a) oil exploration and production in waters deeper than 150 metres;(b) oil exploration and production in the offshore area north of the Arctic Circle; or(c) projects that have the potential to produce oil from resources located in shale formations by way of hydraulic fracturing; it does not apply to exploration and production through shale formations to locate or extract oil from non-shale reservoirs

• prohibition to directly or indirectly purchase, sell, provide investment services for or assistance in the issuance of, or otherwise deal with transferable securities and money-market instruments issued by the persons listed in Annex III., V, and VI, furthermore prohibited to directly or indirectly make or be part of any arrangement to make new loans or credit to those listed persons.

Please, add this End User Certificate  (Russan sanction) to your export licence application form concerning items Annex II.

Ukraine/ Crimea and Sevastopol

The Council Regulations and Council Decisions of 23 February 2022

On the 23rd of June 2014, the EU Council has lifted restrictive measures in response to the illegal annexation of Crimea and Sevastopol. The Council Regulation (EU) 692/2014 prohibits:

• import of any goods originating from Crimea and Sevastopol and financing, financial assistance, as well as insurance reinsurance and related to import of the goods;

• acquire any new or extend any existing participation in ownership of real estate located in Crimea or Sevastopol;

• acquire any new or extend any existing participation in ownership or control of an entity in Crimea or Sevastopol, including the acquisition in full of such entity or the acquisition of shares, and other securities of a participating nature of such entity;

• grant or be part of any arrangement to grant any loan or credit or otherwise provide financing, including equity capital, to an entity in Crimea or Sevastopol, or for the documented purpose of financing such entity;

• create any joint venture in Crimea or Sevastopol or with an entity in Crimea or Sevastopol;

• provide investment services directly related to the abovementioned activities;

• sell, supply, transfer, or export goods and technology as listed in Annex II and related technical assistance, brokering servives, financing thereof. Annex II includes certain good and technologies suited for use in the following key sectors: a)transport;b)telecommunications; c)energy;d)the prospection, exploration and production of oil, gas and mineral resources;

• provide services directly related to tourism activities in Crimea or Sevastopol.

On 17 March 2014 the EU Council imposed an asset freeze and travel restrictions on those responsible for actions undermining or threatening the territorial integrity, sovereignity and independence of Ukraine. The list of targeted natural and legal persons is included in the Council Reg. (EU) 269/2014. Restrictive measures shall prohibit to make available economical recources (incl. tranfer of goods) for the benefit of the listed persons.

Council Implementing Regulation (EU) 2022/236 of 21 February 2022

Council Decision (CFSP) 2022/241 of 21 February 2022

Please find further restrictive measures on 

www.sactionsmap.eu

More information about sanctions...

Restrictive measures or 'sanctions' are an essential tool of the EU's Common Foreign and Security Policy (CFSP). They are used by the EU as part of an integrated and comprehensive policy approach, involving political dialogue, complementary efforts and the use of other instruments at its disposal.

Sanctions are preventive measures which allow the EU to respond swiftly to political challenges and developments that go against its objectives and values. For instance, sanctions can target:

• terrorism

• nuclear proliferation activities

• human rights violations

• annexation of foreign territory

• deliberate destabilisation of a sovereign country.

 Sanctions seek to bring about a change in the policy or conduct of those targeted, with a view to promoting the objectives of the CFSP. Sanctions in a narrow sens require a specific legal base in the EU Treaties, and include:

• arms embargoes

• restrictions on admission of listed persons (travel ban): targeted persons cannot enter the EU, or travel beyond their member state of nationality if they are an EU citizen

• freezing of assets belonging to listed persons or entities: all their assets in the EU are frozen and EU persons and entities cannot make any funds available to those listed

• economic sanctions or restrictions concerning specific sectors of economic activity, including import or export bans on certain goods, investment bans, prohibitions on supplying certain services etc.

More links...

www.un.org/sc/committees/

https://www.consilium.europa.eu/hu/policies/sanctions/

European Union Consolidated Financial Sanctions List

The EU agreed on some basic principles on the use of sanctions, their implementation, how to measure and control their impact. The guidelines concerning those principles, please find below:

Guidelines on the implementation and evaluation of restrictive measures (sanctions) - 4 May 2018

Best practices for the effective implementation of restrictive measures - 4 May 2018

Basic principles on the use of restrictive measures

 ___________________________________________________________________________________________________________________________________________

Columnist:

(Ms.) Eszter TÓTH

Phone: (36-1) 458-5583

Fax:     (36-1) 458-5869

E-mail: exportcontrol--.at.--bfkh.gov.hu