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Hungary: First Experience with the Newly Implemented BIREG System

Hungary: First Experience with the Newly Implemented BIREG System

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Government Regulation 261/2011 brought with it considerable changes with effect from 1 January 2021, shifting control and reporting obligations for transport into and out of Hungary to consignors/consignees. The new law has caused uncertainties on the market. Based on initial experience with the new law and discussions with the responsible authority by the Noerr Commercial Trade and Digital Business team, some light can now be shed on the proper application of the new regulation.

As of 1 January 2021, the BIREG System imposes new obligations on consignors and consignees in order to effectively control transport events with third country relevance. Now, not only do operators have the obligation to register the transport in the system, but consignors and consignees also have secondary control and reporting obligations. Consignees and consignors must examine permissions (CEMT and bilateral), register the transport and report any errors to the authorities. These obligations must be fulfilled and the resulting records retained. 

It is important to note that the new rules do not apply to any transport events with a Community license. Therefore, consignors and consignees must check whether a third country (non-EU country) is involved in the transport event, either because the:

(a) place of discharge or place of loading is in a third country, or
(b) the transport is performed using a vehicle registered in the territory of a third country.

As bilateral permissions make the review more complicated, it is advisable to examine the permissions based on the information issued by the Hungarian authorities at Dokumentumtár - Közlekedési Hatóság (kormany.hu)

A transport event that involves failure to use BIREG is treated as an unauthorized transport and is therefore subject to the same penalty. 

By Eszter Sieber-Fazakas, Senior Associate, Noerr

Hungary Knowledge Partner

Nagy és Trócsányi was founded in 1991, turned into limited professional partnership (in Hungarian: ügyvédi iroda) in 1992, with the aim of offering sophisticated legal services. The firm continues to seek excellence in a comprehensive and modern practice, which spans international commercial and business law. 

The firm’s lawyers provide clients with advice and representation in an active, thoughtful and ethical manner, with a real understanding of clients‘ business needs and the markets in which they operate.

The firm is one of the largest home-grown independent law firms in Hungary. Currently Nagy és Trócsányi has 26 lawyers out of which there are 8 active partners. All partners are equity partners.

Nagy és Trócsányi is a legal entity and registered with the Budapest Bar Association. All lawyers of the Budapest office are either members of, or registered as clerks with, the Budapest Bar Association. Several of the firm’s lawyers are admitted attorneys or registered as legal consultants in New York.

The firm advises a broad range of clients, including numerous multinational corporations. 

Our activity focuses on the following practice areas: M&A, company law, litigation and dispute resolution, real estate law, banking and finance, project financing, insolvency and restructuring, venture capital investment, taxation, competition, utilities, energy, media and telecommunication.

Nagy és Trócsányi is the exclusive member firm in Hungary for Lex Mundi – the world’s leading network of independent law firms with in-depth experience in 100+countries worldwide.

The firm advises a broad range of clients, including numerous multinational corporations. Among our key clients are: OTP Bank, Sberbank, Erste Bank, Scania, KS ORKA, Mannvit, DAF Trucks, Booking.com, Museum of Fine Arts of Budapest, Hungarian Post Pte Ltd, Hiventures, Strabag, CPI Hungary, Givaudan, Marks & Spencer, CBA.

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