BIREG system besides EKAER from 1 January?

Yet another reporting obligation for hauliers and new administrative burdens on consignors and consignees

The amendment to Government Decree 261/2011 (XII.7) entered into force on 1 January 2021, signalling the launch of the BIREG system in Hungary. The government decree concerns road freight for a fee, own-account freight, as well as passenger transport by bus for a fee and own-account passenger transport, as well as the amendments to associated laws, and it prescribes use of the BIREG system. Thus while the obligations related to the EKAER system are being scaled back, hauliers are facing further administrative burdens.

What does BIREG mean exactly? 

The Provisional Electronic Permit Registration or BIREG system (bilateral registration system) is the new electronic system operated by the authorities from 1 January 2021. It was created by the Ministry of Innovation and Technology to check and track the lawful use of bilateral and multilateral as well as CEMT permits required for international road freight.

Who is affected by the BIREG registration requirement? 

Use of the BIREG system and registering in the system can affect all companies that conduct passenger and freight transportation activities by road. This does not include EU companies which handle freight exclusively with a Community permit. 

Which freight services must be registered? 

Registration in the BIREG system is required for lorries with a mass over 3.5 tonnes handling international road freight for a fee on Hungarian territory, lorries with a maximum authorised mass of over 3.5 tonnes handling international road freight on own account, and lorries handling cabotage transportation on the territory of Hungary.

When do you have to register? 

The registration is related to entering and leaving Hungary as well as to loading and unloading.

How does the BIREG system work, how do you register? 

Registering in the BIREG system is a two-stage process. Firstly, the given company has to register in the system. You have to enter the company name, registered office, contact details, Community permit or international road freight permit number, as well as define a unique company ID that is used to identify the company within the BIREG system. Then the freights are registered, indicating the places for loading and unloading, the vehicle number plate and its environmental classification. The system decides on this basis whether or not the freight requires a permit. Events must be assigned to these freight transactions. Such events are entering the territory of Hungary, unloading then loading in Hungary, and leaving Hungary. In the case of cabotage transportation, the recorded events are the freight to Hungary before the cabotage, and the international freight after leaving Hungary.

What do consignors and consignees have to do? 

From 1 January 2021, consignors and consignees have to register in the BIREG system and check the validity of their international freight permits, as well as record the freight data on the freight log or permit. The plan is to supplement these tasks from 1 July 2021 with registering the freight data in the BIREG system and uploading the waybills. If problems are detected they must be notified to the transportation authority, the customs authority or the police by the consignee or the consignor.

What are the consequences for failing to fulfil the BIREG requirements? 

From 1 February 2021, failure to use the BIREG system is the same as handling freight without a permit. The haulier, the consignor and the consignee can all be penalised. Hauliers can be fined HUF 800,000 (roughly EUR 2,200) for failing to use the BIREG system, i.e. failing to register, while the consignor and/or the consignee can expect a fine of HUF 300,000 (roughly EUR 817) for failing to meet their notification and permit administration obligations.

We recommend consulting with logistics specialists at your company about the need to register for the BIREG system, and if you use external logistics providers you should check your partner is aware of the changes and handles your consignments accordingly. If you have any questions about the system requirements, please get in touch with the tax specialists of WTS Klient Hungary.

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