Dear Sirs,

In order to protect the economy of Hungary and that of the European Union, the Hungarian Customs and Finance Guard subjects the imports of excise goods from non-Community countries to enhanced controls.

Pursuant to excise art*,

• excise goods imported without declaration in excess of the duty-free quantity, and
• excise goods used, handled or possessed (given away as a gift or sold) in a way of different from the one allowed by the title justifying duty-free handling shall be considered excise goods not subjected to taxation.

Private individuals aged more than 17 may bring from personal use the following quantities of excise goods into the customs territory of Hungary free of duty:

Tobacco products:

• 200 pieces of cigarettes or
• 100 pieces of cigarillos (of the maximum weight of 3 grams per piece) or
• 50 pieces of cigars or
• 250 grams of cigarette or pipe tobacco or
• a proportionate mixture of the above products

Alcohol and alcoholic beverages:

• spirits and distillates containing more than 22% alcohol by volume; non-denaturated alcohol containing 80% or more alcohol by volume: 1 litre, or
• distillates and alcoholic beverages, wine or other alcohol-based aperitifs,tafia, sake or other similar drinks containing less than 22% alcohol by volume; sparkling wines, liqueur wines: one litre or a proportionate quantity in the case of several items and
• still wines: two litres.

In addition to the above, the fuel contained by the standard fuel tank of motor vehicles can be brought into the customs territory of Hungary free of duty.

During the controls, depending on the customs value, the Hungarian Customs and Finance Guard launches an offence procedure or a criminal procedure and an excise administrative procedure against the parties violating the above rules and

• seizes the excise goods not subjected the taxation,
• imposes an excise fine, which amounts to minimum HUF 20.000 subject to the quality of the excise goods and the applicable tax rate,
• seizes the vehicle (e.g. passenger car) used for the storage and transport of the excise goods not subjected to taxation.

The above do not affect the earlier measure, according to which the import of any cigarette quantity exceeding 40 pieces and the fuel not exceeding 10 litres contained by the motor vehicle’s gasoline can must be declared in writing.

In order to avoid any unpleasantness, we are asking you to fully comply with the relevant laws. We are also asking for your kind understanding and indulgence if the controls or the measures taken because of the offenders give rise to eventual congestions or queues.

One of the objectives of the above measure is to repress smuggling thus ensuring that legal passenger traffic may use undisturbed the border crossing points.

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* Act NoCXXVII of 2003 on the excise duty and the specific rules of distributing excise goods