Frequently asked questions (FAQ)

What is EORI?

An EORI number is a number, unique throughout the European Community. An EORI, which is valid throughout the Community, is assigned by a customs authority in a Member State to economic operators (businesses) or individuals. This number is required during customs procedures for the identification of client.

How to apply for an EORI number?

With the entry into force of the respective legislation, in case the client is established in Hungary is/was involved in activities covered by customs legislation after 1^st May 2004, the VPID number used for national identification purposes can be also used as EORI number, meaning that client is not required to take any further measures.

If client established in Hungary does not have neither a VPID, nor EORI number, client has to apply for a VPID number first. Client shall make a declaration on the Datasheet required for the application, that it wishes to use the requested VPID number as EORI number, i.e. it wishes to initiate a procedure covered by customs legislation at the customs authority. An economic operator or individual, who is applying for a VPID number due to registration tax administration, shall not request the application of the VPID number as EORI number.

Where to apply for an EORI number?

All economic operators and individuals established in the European Community, who wish to obtain an EORI number, shall apply for the number in their own Member State at the respective authority. In Hungary the Hungarian Customs and Finance Guard is authorized for the issue of EORI numbers.

If a client not established in the customs territory of the Community does not have an EORI number his/her EORI registration shall be effected by the customs authorities or other authorities of the Member State where client first lodges a customs declaration for a customs procedure or an entry/exit summary declaration related to border crossing. Concerning the EORI registration of clients not established in Hungary (i.e. established in other Member States) the relevant Member State can provide information. In Hungary the Hungarian Customs and Finance Guard is the dedicated authority; in such case the registration takes place in accordance with the stipulations referring to the issue of the VPID number.

What does the validity of an EORI number mean?

EORI numbers issued in other Member States can be used in each Member State of the Community therefore also in Hungary to carry out activities covered by customs legislation. Accordingly EORI numbers issued in Hungary can be used also in each Member State of the Community. It is important to note, that economic operators established in Hungary holding a tax number in other Member States of the Community, shall request the Hungarian Customs and Finance Guard to register such tax number in the EORI documentation. 

How to check the validity of the EORI number?

Anyone can check whether an EORI number exists or not on the website of the European Commission.

What are the terms of delivery?

INCOTERMS (International Commercial terms) are a set of standard terms of delivery commonly used in foreign trade, clearly stating the relationship between seller and buyer, delivery and insurance costs and risks as follows:

•    dividing arising transaction costs, by the indication of the exact geographical location,

•    division of the risk of damage (risk), in a similar manner,

•    obligations referring to obtainment of the documentation and data provision requirements and their division.

The division of costs is covered by the terms of delivery.

The place where the risk of ownership is passed from seller to buyer is regulated by the term referring to passing of risks and costs relating to the goods.

Where these two points coincide are called single-point of terms of delivery, where they are different they are called two-point terms of delivery.  

1990 version contains 13 INCOTERMS, where each is indicated by a three-digit acronym using the abbreviation of the English name.

The following criteria shall be taken into consideration when choosing the required commercial terms:

•    Relation between the terms of delivery and sales price. The more costs and risks seller is willing to take (the further the terms of delivery are), the higher price seller can ask for the goods.

•    What discounts seller/buyer is getting, what relationship it has established with the certain shipping companies?

•    Shipping market outlook (what opportunities are available)

•    What are the market-related goals of seller (e.g. undertake many things in order to win a new customer).

It shall always be taken into consideration that - depending on the terms of delivery- on the top of the amounts invoiced by seller for the transaction, the costs paid by buyer abroad shall constitute basis of the customs value.

What is the content- and format related requirements of a foreign trade invoice?

A foreign trade invoice, which is submitted to the customs authority during customs procedure, shall embody a foreign trade transaction, which seller and buyer agreed in the form of the contract. Most important format related requirement is the presentation of a legible invoice. The invoice shall contain all products, which are part of the delivery. All items shall have a description, price and quantity.

If the foreign trade transaction deviates from the purchase and sale transaction, this shall be indicated on the invoice accompanying the delivery (e.g. guarantee repair, samples, temporary export/import, etc.)

If the transaction is not subject to payment, the following comment shall be indicated: ’Value for customs purposes only’ (in Hungarian and/or foreign language).

Most important content-related criteria are listed below:

Invoice number

Invoice date

Seller’s details:

•    Name

•    Full address: Country, city, street name and number, ZIP code

•    Tax number

•    Banking details: Bank name, account number, IBAN code, SWIFT code

•    Name of the contact person and phone number

Customer’s details:

•    Same as above

Delivery address: (if different from the details of Customer):

•    Same as above

Goods related details

•    Commercial description of the product

•    Type, individual identifier, size, material content, etc. all details, which are significant during the tariff classification of the product

•    Quantity unit of the goods

•    Quantity of the goods

•    Per unit price

•    Total price

•    Number of packages, packing mode

•    Weight related information: gross/net weight

•    Maybe customs tariff number

Terms of delivery

Terms of payment

Origin

Foreign trade transaction identifier (order number)

What is a VPID number?

It is an individual identifier serving for the national identification of the clients of the customs authority, e.g. domestic and international economic operators and individuals.

How to apply for a VPID number?

From 1^st May 2004 with the entry into force of the economic operator registration system elaborated in virtue of the EU customs regulations the Hungarian customs authority registers and administers the economic operators based on the customs identification number (VPID number).

The VPID registration, which is performed by the customs authority issues a 12-digit customs identification number to client, which is used as a primary identifier on all future customs documents. Clients, except for individuals, shall report any changes to their personal details in writing 15 days within the date of change. Failure to do so may cause difficulties later on during the customs procedures.

Registration is available at the main customs authority competent based on the registered seat/place of residence, and/or at the customs service location selected during the first customs procedure for the proceedings.  

For the VPID number application it is required to fill out an ’Application form’, which shall also bear the authorized signature of the economic operator. The following documents need to be attached as annex to the application:

•    Economic operator applicants

Certificate of incorporation or company excerpt with historical data issued within no later than 30 days,

Bank account contract (only for those, where the certificate of incorporation fails to contain the bank account details), a document certifying an owner and client registration number, a document certifying the IBAN number.

•    Private entrepreneur

Certified copy of the entrepreneur document,

Bank account contract, a document certifying an owner and client registration number.

•    individuals shall attach copies of their ID card, address card, tax number, a document certifying an owner and client registration number, in the case of foreign citizens copy of the passport.

It is important to note that during the VPID number application process, client is required to make a declaration, if it wishes to use the VPID number also as an EORI number!