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Mandatory Deposit Refund System starts in Hungary in 2024

Mandatory Deposit Refund System starts in Hungary in 2024

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Mandatory Deposit Refund System (DSR) comes into effect as of 1 January 2024 in Hungary. The newly introduced legislation clarifies the key points of the system and the specific obligation of the parties concerned.

As a general rule, from a consumer’s perspective, deposit refund schemes charge users an extra fee when they buy a product, which is refunded if the product packaging is returned for recycling or reuse. Similar, but not unified schemes have already been implemented throughout the EU with Hungary joining in as of 1 January 2024.

The Mandatory Deposit Refund System will apply generally to the non-reusable or reusable packaging of ready-to-drink or concentrated beverage products, in the form of bottles or cans, plastic, metal or glass material, with a capacity of 0.1 to 3 litres (but excluding milk and milk-based beverage products). Small producers under 5000 covered products a year are exempted from the DSR obligation. Producers are also free and encouraged to extend the DRS voluntarily to additional items not covered by the mandatory DRS.

DRS will be operated and monitored by MOHU, a subsidiary of MOL Nyrt. as concessionaire.

Producers are required to register their products 45 days prior to placing those on the market and to pay connection fee and service fee for reusable products subject to a mandatory return fee, and a connection, service and return fee for non-reusable products to MOHU. With the introduction of DSR, EPR (extended producers’ responsibility) legislation has been also amended so that the EPR fee does not apply, where a DSR fee is due.

Distributors are required to accept and refund the products under DSR. In practice, for stores selling food with a sales area of more than 400 sqm, the return and refund should be made available via automatic reverse vending machine. Such machines, based on the request of the distributor, are to be provided by MOHU. The mandatory deposit of HUF 50 per non-reusable product will be charged and invoiced to and paid by the consumers and will be refunded upon return (deposit for reusable products will be set by the manufacturers).

The registration of producers and application for reverse vending machines was due earlier this year, but the registration for products is still open by 15 November 2013 and for voluntary DRS continuously going forward. 

By Bálint Zsoldos, Head of Tax, KCG Partners Law Firm

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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