Negotiation Licences

According to Government Decree 16/2004. a contract for the export, import, inward shipment or outward shipment of military equipment or for the provision or acceptance of technical assistance can only be prepared if a negotiation licence is already held. A negotiation licence can be requested if a valid activity licence is already held.

Application forms for negotiation licences must be submitted in one copy to the HTLO on the standard form prescribed by the HTLO.

A negotiation licence authorises the applicant for 12 months to prepare a contract. The negotiation licence can be renewed once for a further period of 12 months.

Exemptions:

1. Publicly-funded institutions with activity licences making purchases for their own use, funded from their own budget and using their own procurement organisations are exempted from the obligation to apply for a negotiating licence.
2. A negotiation licence is not required for contracts signed on the basis of framework contracts with firms registered in European Union member states. But there is a need to have a general framework negotiation licence.

Simplified Procedures:

1. A general negotiation licence can also be granted in respect of the export, import, inward shipment or outward shipment of military equipment as well as for the provision or use of technical assistance in those cases when the business partners are established in one of the European Union or NATO member states. Such a licence can cover transactions spread over several years.
2. For firms in a long-term production or sales relationship, a general framework negotiation licence can be issued that is valid for the duration of the relationship.

Notes:

Negotiation Licence applications can be submitted via mail to the Department of Conventional Arms Trade Control, Authority of Defence Industry and Export Control, HTLO (1124 Budapest, Németvölgyi út 37-39. or 1534 Budapest, Pf. 919.) or personally at the Customer Service Office of the Hungarian Trade Licensing Office (1124 Budapest, Németvölgyi út 37-39. D, fsz 11-12.).

After the evaluation of the applications, the Licences can be handed over personally to the representative of the company (for proper identification please present an ID, or an authorisation letter) or posted to the Applicant.

Application fee:

Export: free of charge
Import, broker, reexport: 2 200 HUF